Africa’s economies to grow 3.7% in ’24, 4.3% in ’25 – AfDB chair

Africa’s economic growth is poised to accelerate to 3.7 per cent this year and 4.3 per cent next, up from 3.1 per cent in 2023, Reuters reported on Wednesday citing African Development Bank (AfDB) President Akinwumi Adesina.

Adesina expressed optimism that the bank could enhance infrastructure investment with assistance from the International Monetary Fund (IMF).

“African economies are experiencing great resilience despite the challenges posed by climate change, geopolitical tensions, global inflation, rising debt, among others,” Adesina stated at the AfDB’s annual meeting.

Over the past nine years, the bank has invested over $50 billion in infrastructure projects across the continent, he noted.

Adesina recently announced that the IMF had approved multilateral banks like the AfDB to lend against the Fund’s Special Drawing Rights (SDRs) monetary reserves. SDRs are interest-bearing international reserve assets allocated to IMF member countries based on their shareholding.

“If the approved limit of $20 billion of the SDRs is channelled to multilateral development banks like us, we, the AfDB can leverage this to deliver at least $80 billion of new financial support,” Adesina emphasised.

Additionally, the bank is assisting in raising $3.2 billion for the East Africa standard gauge railway project linking Tanzania, Democratic Republic of Congo, and Burundi. It is also allocating $500 million towards the development of the Lobito Corridor, aimed at connecting Zambia, Angola, and the Democratic Republic of Congo.