By Abdulfatah Babatunde
President of the African Development Bank (AfDB) Dr Akinwumi Adesina has emphasized the critical need for significantly increased financing to meet the Sustainable Development Goals (SDGs).
TheNewsZenith reports that Adesina spoke at the Islamic Development Bank (IsDB)’s 50th-anniversary celebrations in Riyadh.
He highlighted a growing annual financial shortfall of $4 trillion. This, he said is a gap that threatens to derail efforts to achieve the SDGs by 2030.
Adesina addressed a distinguished audience including high-level officials, financial leaders and private sector representatives gathered to mark the occasion.
The session focused on assessing the financial strategies essential for advancing global development amidst a landscape marked by economic instability and escalating environmental challenges.
AfDB President said the current annual gap of $4 trillion, up from $2.5 trillion in 2015, has been propelled by recent global economic pressures and the lingering impacts of the Covid-19 pandemic.
He detailed the critical role of multilateral development banks in addressing these needs through increased collaboration and innovative financial solutions.
Strategic Response to Pressing Global Issues
Adesina also spotlighted the AfDB’s strategic High-Fives programme as a cornerstone for progress. This is underscored by an independent analysis by the United Nations Development Programme.
“The High-Fives are Light Up and Power Africa; Feed Africa, Industrialise Africa, Integrate Africa, and Improve the Quality of Life for the People of Africa.
“They are not just ambitious goals but a strategic blueprint for the continent. Achieving these High-Fives would mean accomplishing nearly 90% of the Sustainable Development Goals for Africa,” Adesina said.
In this regard, Adesina highlighted five core areas where immediate action and innovative funding are crucial: Climate change, food security, energy access, health security, and mobilising more resources for SDGs.
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Additionally, he underscored the pivotal role of the private sector in scaling up SDG investments from billions to trillions.
He advocated for harnessing the power of the $128 trillion in global institutional investor assets. This is through more extensive use of guarantees, development of investable projects, and addressing foreign exchange and currency risks.
In his introductory remarks, the President of IsDB, Dr Mohammed Al Jasser, said crises such as climate change, pandemic and ongoing conflicts continue to threaten hard-won gains achieved over decades.
In addition, Al Jasser said “the global financial system has not kept pace with the urgency required to realise SDGs.
“We must collectively work towards a global financial system that fosters a more inclusive, equitable and sustainable future”.
“It is within this context that Islamic finance adds value. This is prioritising not just financial returns, but the holistic well-being of individuals and our planet.
“Its principles of prosperity, risk-sharing and ethical investment present clear path toward bridging the SDGs financing gap,” Al Jasser said.
Engaging Global Leaders for Collective Action
In his call for action to achieve the ambitious goals set forth by the 2030 Agenda for Sustainable Development, Adesina sought support for the call by the UN Secretary-General “for a $500 billion per year SDG stimulus package should be fully supported”.
“The developed countries need to increase support by devoting at least 0.70% of their gross national income to official development assistance,” Adesina added, among other critical actions.
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