The African Development Bank (AfDB) has committed itself to prioritise integrated regional projects and climate resilience in the Southern Africa region as it embarks on its new 10-Year Strategy.
Speaking at the celebration of the bank’s Diamond Jubilee on Friday, AfDB director-general Leila Farah Mokaddem said the bank has to date approved 970 operations valued at approximately $23 billion for the Southern African region alone.
Mokaddem said the 60th-anniversary celebrations were a testament to the bank’s resilience and the enduring support of its partners, saying it remained steadfast in its mission to transform lives and catalyse growth across the continent.
She said projects like the Lobito Rail Integrated Corridor, connecting Angola, DRC, and Zambia, promised to drive economic growth, agriculture value chains and renewable energy investments.
“Our current active portfolio includes 226 projects amounting to $11bn, a testament to our commitment to fostering growth and integration. Under our High 5s initiative, we have made significant strides,” Mokaddem said.
“For instance, as of July 2024, our total commitment to Southern Africa in energy projects reached around $2.5bn, accounting for 30% of our total commitment in this area.
“Our work is far from over. We invite all partners—governments, private sector actors, and international institutions—to join us in building a more inclusive and sustainable Africa. Together, we can address climate-related challenges and mobilise resources to ensure no one is left behind."
The AfDB has maintained its AAA rating and authorised capital of $318bn, with nearly 2 000 staff serving all 54 African countries.
The institution continues to champion its “High 5s” priorities: lighting up and powering Africa, feeding Africa, industrialising Africa, integrating Africa, and improving the quality of life for the people of Africa.
As of July 2024, the AfDB’s ongoing active portfolio for southern Africa are in various sectors such as electricity generation, finance, transport, and agriculture.
Last year, the AfDb made a $1bn sovereign-guaranteed corporate loan to Transnet in a bid aid South Africa’s freight transport recovery and growth.
The bank has also provided a $2.1bn initiative enhancing water transfer and hydroelectric Power for the Lesotho Highlands Water Project, which is essential for energy security.
At the Kazungula Bridge Project, the AfDB made an $81.6 million investment, strengthening connectivity between Zambia and Botswana along the North-South Corridor.
The SADC Sub-Regional Transport and Facilitation Project also received a $231.3m investment from the AfDB, connecting Malawi and Mozambique, fostering trade, and mitigating regional fragility.
Deputy Finance Minister David Masondo also called on the AfDB to intensify efforts towards economic integration across the continent, emphasising that the founding fathers of Africa envisioned a united continent capable of competing with global giants, drawing parallels with China’s economic coherence and success.
Masondo said South Africa was adopting a multi-faceted approach to improve its economic infrastructure, having liberalised numerous network industries including energy, freight logistics, and water.
He also outlined that private-sector participation would be pivotal in financing these undertakings through a new credit guarantee scheme aimed at de-risking investments into infrastructure.
“We are looking forward to working with you as a funding partner to support the continent, to support our own country, South Africa. There's a credit guarantee scheme that we are putting together, which is aimed at de-risking private sector capital investment in our economic infrastructure. We will start with the transmission infrastructure,” Masondo said.
“As we all know, investors are managing two things: reducing risks and enhancing returns for their own shareholders. And one of the ways through which we are investing into our infrastructure is through this credit guarantee vehicle that we are putting together in South Africa, and if it becomes successful in the energy sector, we intend to take it to other network industries, telecommunications, freight, logistics.”
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