Africa Retains ‘ Fastest Growing Region In The World’ Rating – Report
REPORT has shown that Africa is projected to remain the fastest growing region in the world, after Asia, exceeding the global average of 3 per cent in 2023.
This report emerged at the just concluded African Union Summit held in Addis Ababa where the African Development Bank launched its African Macroeconomic Performance and Outlook Report for 2024 ( https:// apo- opa. co/ 3Tkiacw).
The report reveals that Africa’s economies continue to grow faster than the global average of 3 per cent demonstrating resilience against several challenges including climate change, geopolitical tensions, rising inflation, food insecurity and rising debt, the continent has been projected to remain the fastest growing region in the world, after Asia, exceeding the global average of 3 per cent in 2023.
According to the President of the African Development Bank Group, Dr Akinwumi Adesina while addressing the Bank’s annual luncheon for ambassadors and heads of diplomatic missions as well as representatives of international organisations based in Abidjan, Cote d’ivoire recently, “it is forecasted that Africa will account for 11 out of the 20 fastest- growing economies in the world in 2024. 15 African countries have posted output expansions of more than 5 per cent.
“At the African development bank, all our work is to support the countries to build resilience, whether it be to external economic shocks, climate shocks, or changes in global interest rates that have continued to put pressure on debt service capacities and depreciation of currencies driving up inflation,” Adesina said.
The Bank resumed the diplomatic luncheons after nearly five years due to the
COVID- 19 pandemic. It was also the first diplomatic luncheon since 2019, months before the Bank’s shareholders collectively agreed to a significant increase of the capital of the African Development Bank by 150 per cent, moving it from $ 93 billion to $ 208 billion— the largest capital increase in the history of the Bank since 1964.
In addition, Adesina said, the 16th replenishment of the African Development Fund received a record $ 8.9 billion provided by donor countries, the largest ever replenishment in the history of the Fund since its establishment in 1973. The African Development Fund will be able to do even more, after the Bank Group governors authorised the fund to use its equity in the capital markets. “This landmark decision, taken by our governors during the 2023 Annual Meetings held in Sharm El Sheikh, Egypt, will allow the African Development Fund to raise an additional $ 27 billion to scale up support for the economic development of the 37 low- income countries,” he noted.
Adesina briefed the diplomats about the Bank Group’s financial innovations. “Just few weeks ago the Bank launched the firstever hybrid capital on the capital market, the first multilateral development bank to do so globally. The $ 750 million hybrid capital issuance, oversubscribed at $ 6 billion, is a landmark globally.”
Mauricio Rueda Beltz Apostolic Nuncio in Cote d’ivoire and the dean of the diplomatic corps said, “We encourage the African Development Bank to pursue its commitment and its reforms to better meet the expectations of populations for access to sustainable economic, social and environmental development. May God bless Africa, land of growth and prosperity.”