Dr. Akinwumi Adesina, President of the African Development Bank Group, expressed gratitude to President William Ruto for committing Kenya to a USD 100 million investment over the next three years in the continent’s multilateral financial institutions.
Adesina highlighted the significance of the commitment, stating, “This marks the largest contribution by an African country to the Fund. Thank you very much, my dear friend and brother, Mr. President!” he wrote on X, formerly Twitter.
The USD 100 million, equivalent to Ksh.13.2 billion, will be invested in the Africa Development Bank, Afreximbank, and the Trade Development Bank. This commitment underscores Kenya’s confidence in these institutions and its desire to increase its shareholding.
President Ruto’s announcement came during the official opening of the Africa Development Bank’s 59th summit, where other Heads of State expressed their frustrations with the current multilateral setup.
Additionally, President Ruto pledged USD 20 million (Ksh.2.6 billion) for the Africa Development Fund, the concessional wing of the Africa Development Bank. This contribution positions Kenya as the highest regional contributor, unlocking additional funding for high-priority development projects.
Building on the momentum from the IDA meetings earlier this month, President Ruto reiterated his call for a substantial replenishment of the African Development Fund by at least USD 25 billion (Ksh.3.3 trillion). This increase aims to enhance the Fund’s capacity to provide concessional financing to the least-developed African countries.
“I take this opportunity to reiterate my call at the recently concluded IDA21 Summit held here in Nairobi: That we appeal for a substantial 17th replenishment of the African Development Fund by at least USD 25B to increase its capacity to continue providing concessional financing to the least developed African countries,” said President Ruto.
He urged donor partners and development partners to scale up their investments in the continent by re-channeling Special Drawing Rights (SDRs) through the African Development Bank, the premier development financial institution.
Rwanda’s President Paul Kagame echoed Ruto’s sentiments, emphasizing the need for reforms in the global financial architecture. “We are here discussing the architecture, we must have the architect in mind…what was their plan, they must have looked for ways to benefit themselves,” said Kagame.
Ruto added, “We have been negatively profiled for far too long. If we can work for an Africa credit rating that will help put factual information into the financial architecture, this unnecessary risk profiling will be reduced.”
The collective push for reform and increased investment highlights the African leaders’ determination to reshape the continent’s financial landscape for more equitable and sustainable development.