BADEA at 50: Bridging Arab-African Development for Half a Century
- “From Millions to Billions: BADEA’s 50-Year Journey Reshaping African Development”
In the heart of Accra, Ghana, an assembly of African and Arab leaders, financial experts, and development practitioners gathered to commemorate a milestone that speaks volumes about the enduring partnership between two regions often seen as distinct, yet inextricably linked by geography, history, and shared aspirations. The Arab Bank for Economic Development in Africa (BADEA) celebrated its 50th anniversary, marking half a century of fostering economic cooperation and development between the Arab world and Africa.
The symposium, graced by dignitaries including H.E. Nana Addo Dankwa Akufo-Addo, President of Ghana and Chairman of the AU Financial Institutions, served as both a reflection on past achievements and a platform to articulate ambitious visions for the future.
From Modest Beginnings to AAA-Rated Powerhouse BADEA’s journey, as narrated by H.E. Dr. Fahad Aldossari, Chairman of the Board of Directors, is nothing short of remarkable. “The Bank’s capital increased significantly from US$90 million in 1973 to US$20 billion today,” Dr. Aldossari noted, tracing the institution’s evolution “from a modest financial institution with big ambitions” to its current status as a financial powerhouse.
This growth is not merely numerical. BADEA now boasts a AAA rating from major agencies, with Dr. Aldossari proudly stating, “The Bank is now a AAA rating agency, double A1, with stable output from Moody’s and AA with a positive outlook.” This stellar rating, he emphasized, was not pursued as an end in itself but as a means to “ensure that the continent has access to affordable development finance.”
Tangible Impact Across the Continent
BADEA’s influence extends far beyond balance sheets and credit ratings. Dr. Aldossari painted a vivid picture of the bank’s concrete contributions: “With more than 38 or 39 airports across the continent, I am confident we will be integrated and happy to account for them.” This focus on infrastructure dovetails with broader development goals. “The priority was to establish broad networks that help countries or connect countries and build free health, education, isolation and trade,” he added.
The bank’s commitment to holistic development is further evidenced by its support for healthcare and basic services across Africa. This multifaceted approach underscores BADEA’s understanding that true development encompasses not just economic growth, but improvements in quality of life across all sectors.
A Symbol of Arab-African Cooperation
The significance of BADEA extends beyond its project portfolio. As H.E. Nana Addo Dankwa Akufo-Addo eloquently put it, “The landmark occasion is not just a celebration of an institution but also an acknowledgment of the strong partnership of shared prosperity between Africa and the Arab World.”
This sentiment was echoed throughout the symposium, with speakers repeatedly emphasizing BADEA’s role as a bridge between two regions. President Akufo-Addo further elaborated, “Over the past five decades, BADEA has been a beacon of hope, a catalyst for development and a symbol of the enduring bond between our two regions.”
The unique position of BADEA in this landscape was highlighted by H.E. Dr. Sidi Ould Tah, President of BADEA, who noted, “This month is a special month because it [BADEA] is the only institution fully dedicated to the African continent.” This exclusivity, Dr. Tah argued, “shows the commitment of our shareholders to support Africa and to strengthen the historical, geographical and cultural ties between the two worlds.”
Adapting to Changing Times
BADEA’s longevity is not merely a result of consistent funding or political will, but also its ability to adapt to changing circumstances. Dr. Aldossari emphasized this point, stating that “BADEA has not only evolved to meet expectations of the continent and our shareholders, but also to demonstrate agility and responsiveness to meet development challenges from COVID-19 response to the common objectives of the Arab Coordination Group on Food Security, Climate Change, and Resilience.”
This adaptability is crucial in a world where development challenges are increasingly complex and interconnected. By pivoting to address emergent issues like climate change and pandemic response, BADEA demonstrates its commitment to remaining relevant and effective in a rapidly changing global landscape.
The Road Ahead: Ambitious Plans for the Future
While the symposium was an opportunity to reflect on past achievements, much of the discussion focused on BADEA’s future role in African development. Dr. Tah articulated this forward-looking stance, saying, “This is also a good opportunity for all of us to think about BADEA and to project BADEA in the next 50 years.”
One of the most significant announcements was the plan to establish a joint consortium between Arab and African financial institutions. Dr. Tah emphasized, “Today, we have the obligation and the duty to work on strengthening the economy and financial institutions. And we are working on the establishment of a joint consortium between the Arab world and the financial institutions of Africa.”
This consortium represents a new chapter in Arab-African financial cooperation, potentially amplifying the impact of individual institutions through coordinated action. Dr. Aldossari reinforced this commitment, stating, “I can confirm that BADEA will spare no effort in ensuring this consortium succeeds in realising the vision of the African nation, including collaboration and coordination for leverage and resources for the continent.”
The symposium also revealed plans to replicate successful Arab initiatives in Africa, including the establishment of Financial Inclusion Banks and an Arab Open University. These projects underscore BADEA’s holistic approach to development, addressing both financial and educational needs.
The Role of the Private Sector
A recurring theme throughout the symposium was the increasing importance of private sector involvement in development efforts. Dr. Aldossari noted, “The ambitious development agenda calls for a central role for the private sector,” adding that over the past 20 years, BADEA’s commitment to the private sector and trade has amounted to 5 billion US dollars.
This emphasis on private sector engagement represents a shift in development thinking, recognizing that sustainable economic growth requires more than just public sector investment. By fostering partnerships with private entities, BADEA aims to catalyze investment and spur innovation across the continent.
Challenges and Opportunities
Despite the celebratory tone of the symposium, speakers did not shy away from acknowledging the challenges that lie ahead. Dr. Aldossari candidly admitted, “As we stand today, BADEA’s total commitment has amounted to US$13 billion. But we realise that we need to do more.”
This recognition of the need for continued growth and increased impact reflects the scale of development challenges facing Africa. From infrastructure deficits to climate change adaptation, the continent’s needs are vast and growing. BADEA’s commitment to scaling up its efforts suggests an understanding of these challenges and a determination to meet them head-on.
Conclusion: A Legacy of Partnership, A Future of Promise
As the symposium concluded, the overarching message was clear: BADEA’s 50th anniversary is not just a celebration of past achievements, but a reaffirmation of commitment to future development. The institution stands as a testament to the power of sustained, focused cooperation between regions.
President Akufo-Addo perhaps best summarized BADEA’s legacy and future potential: “Since its inception in 1973, BADEA has been instrumental in fostering economic development between the Arab and African countries.”
As BADEA looks to the next 50 years, it does so with a track record of success, a clear vision for the future, and the continued support of both Arab and African nations. In an era where development challenges are increasingly global in nature, institutions like BADEA that bridge regional divides may well hold the key to sustainable, inclusive growth. The next half-century of Arab-African cooperation, if the symposium is any indication, promises to be even more impactful than the last.
