African Development Bank Group Report 2023: Africa Remains Resistant to New Shocks, but Progress and Financing Need to Accelerate | African Development Bank

In its latest annual report released on May 25, 2023, the African Development Bank Group highlights its crucial contributions to the development of the continent and the well-being of its people in 2022.

Tea Annual evaluation of development effectiveness published annually since 2011, assesses the Bank’s support for the sustainable development of African countries. It specifically oversees contributions to the bank’s High 5 strategic priority areas that drive Africa’s transformation: Enlightening and Empowering Africa, Feeding Africa, Industrializing Africa, Integrating Africa and Improving the Quality of Life for the People of Africa.

Against the backdrop of a continent still grappling with the residual impact of the COVID-19 pandemic, the 2023 edition of the Annual Development Effectiveness Review, titled ‘Increasing Africa’s resilience’reflects the impact of multiple shocks on the continent.

In 2022, the bank’s bold response to the challenging work environment saw it leverage its resources, technical expertise and role as a preferred partner among African countries to deliver tangible development results in the High 5s. The result: 12.3 million people gained access to new or improved water and sanitation services, while another 4 million benefited from the bank’s private sector activities. To support the continent’s economic development and connectivity, the Bank also facilitated the construction or rehabilitation of 833 kilometers of roads.

Another milestone in the report shows that investments will reach $8.2 billion by 2022, signaling a return to pre-pandemic levels.

Slow economic growth, a global food crisis and climate-induced extreme weather threaten to slow the continent’s recovery efforts from the COVID-19 pandemic, undermining or even reversing hard-won development gains. The Russian invasion of Ukraine has caused further hardship across the continent, disrupting food and energy supply chains, leading to sharp price increases. Their effect is to push another 15 million people into extreme poverty.

Amid a slow but steady recovery from the pandemic, Armand Nzeyimana, acting director of the Development Impacts and Outcomes Department, pointed to climate change as one of the continent’s remaining threats.

“With nine of the world’s ten most vulnerable countries on the continent, Africa is the least climate-resilient region in the world. The severe impact of climate change on Africa underscores the urgent need to prioritize efforts to combat its adverse effects,” he said.

According to the report, issues related to fragility and conflict, climate change and poverty will continue to pose serious challenges for the continent. African countries must therefore redouble their efforts to strengthen their capacities, resources and institutions to build greater resilience to future shocks.

The Bank’s efforts to improve transparency and accountability as one of its objectives to enhance the efficiency and effectiveness of its operations led to recognition. Publish what you fund ranked the bank’s sovereign portfolio at the top of 50 other bilateral and multilateral organizations in its 2022 Aid Transparency Index.

Leaving aside the immediate challenges and vulnerabilities, the bank will finalize its new ten-year strategy in 2023, which will guide its strategic direction and priorities. Building on a successful replenishment of the African Development Fund in 2022, the Bank remains committed to scaling up financing that will strengthen and support Africa’s achievement of its development priorities and the Sustainable Development Goals (SDGs).

As Africa strives to better rebuild in the wake of the COVID-19 pandemic and economic shocks, there is a need for a collective renewal of the Bank’s commitment to accelerate progress towards the SDGs.

In the foreword to the report, President Adesina stated: ‘We must raise our ambitions even further if Africa is to achieve its development goals. The bank’s new 10-year strategy will guide our efforts to foster and accelerate inclusive, climate-resilient growth and development as we continue to deliver on the High 5s and Sustainable Development Goals for Africa.”

Click here for the full report.