Accelerating AfCFTA through boosting Africa’s competitiveness

African and Arab leaders recently gathered in Accra, Ghana, to commemorate the 50th Anniversary of the Arab Bank for Economic Development in Africa (BADEA). The event provided a platform for discussions on global trade and cooperation between the Arab world and Africa. CNBC Africa's David Alabi sat down with BADEA Secretary General, Fatima Elsheikh, for an exclusive interview reflecting on BADEA's journey in African development and its future prospects. Elsheikh highlighted BADEA's humble beginnings in 1973, driven by the commitment and aspirations of Arab leaders to foster cooperation and economic integration between Africa and the Arab world. Initially capitalized at 231 million, BADEA has now grown to a formidable 20 billion institution, ranking as the second highest rated bank in Africa. The bank has garnered strong support from its partners, beneficiary countries, and shareholders, positioning it as a key player in African development. Discussing BADEA's recent relocation back to Riyadh, Elsheikh emphasized the strategic implications for enhancing cooperation between Africa and the Arab world. She underscored BADEA's role in leveraging the 50 billion pledge made by the Arab Coordination Group to support development in Africa and achieve the Sustainable Development Goals (SDGs). This move aligns with BADEA's commitment to expedite funding and promote effective implementation across the continent. Looking ahead to BADEA's 2030 strategy and beyond, Elsheikh emphasized the bank's focus on aligning with the development aspirations of African countries. With an eye towards 2063 and beyond the SDGs, BADEA remains open to feedback from policymakers, partners, and beneficiary leaders to drive impactful projects and initiatives in Africa. One of the key outcomes of the anniversary celebrations was the launch of the Arab Africa Financial Institution Consortium, aimed at fostering collaboration between financial institutions from both regions. Elsheikh highlighted the consortium's potential to harmonize development finance efforts and promote regional economic integration, building upon the legacy of cooperation between Arab and African leaders. On the topic of co-financing projects, Elsheikh shared BADEA's commitment to mobilizing additional funding in collaboration with partners. For every dollar mobilized by BADEA, the bank aims to secure four dollars from other sources, catalyzing impactful development initiatives across the continent. Through the consortium, BADEA seeks to further expand its funding efforts and enhance synergy in financing development projects. In terms of priority sectors, Elsheikh reiterated BADEA's focus on human-centered infrastructure development, recognizing the critical role of infrastructure in driving overall development in Africa. Emphasizing the importance of empowering youth, women, and SMEs, BADEA remains committed to fostering a conducive environment for sustainable growth and addressing key challenges such as climate change and food security. With a recent foray into the debt market with a successful 500 million euro issuance, BADEA aims to become a regular issuer to provide diverse funding options for beneficiary countries. The move towards exploring the debt market reflects BADEA's commitment to ensuring access to various funding sources to meet the evolving needs of African economies. Highlighting the central role of women empowerment in BADEA's agenda, Elsheikh underscored the importance of gender equity in access to education, health, and financial opportunities. Digital financial inclusion emerges as a transformative tool in empowering women economically and driving inclusive growth across the continent. As the anniversary celebrations draw to a close, Elsheikh's message to African sovereigns, businesses, thought leaders, and investors is one of hope and ambition. Encouraging stakeholders to continue believing in Africa's potential, she urged them to aspire towards transformative change and work collaboratively to realize the continent's development goals. With a focus on fostering bankable projects and sustainable growth, BADEA remains dedicated to driving positive change and economic prosperity in Africa.