The President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, has expressed strong disapproval over the minimal share Africa received from the International Monetary Fund’s (IMF) Special Drawing Rights (SDRs), despite being one of the regions most in need of financial support.
Speaking from Abuja on Sunday, Dr. Adesina revealed that Africa was allocated only $33 billion from the IMF’s global SDR issuance of $650 billion—representing a mere 4.5% share. He described the allocation as a stark example of persistent inequality in the global financial system, particularly in times of crisis.
“Africa, which faces some of the harshest economic challenges and has limited fiscal buffers, received a disproportionately small share of the SDRs,” Adesina said.
The AfDB president highlighted the urgency of rethinking how global financial resources are distributed, especially during periods of global emergencies such as the COVID-19 pandemic, when African countries lacked the capacity to roll out robust recovery measures.
Innovative Rechanneling Strategy Approved
In a bid to address the funding gap, Dr. Adesina announced that the AfDB, in collaboration with the African Union and the Inter-American Development Bank, has secured IMF approval for a new strategy to rechannel unused SDRs from wealthier nations. This initiative allows the repurposed funds to be leveraged up to eight times through multilateral development banks like the AfDB.
According to Adesina, a reallocation of $50 billion in SDRs could potentially unlock up to $200 billion in new development financing. He emphasized that this model incurs no additional cost to taxpayers and offers a sustainable solution to long-standing funding shortfalls.
“This marks a significant shift in how development finance can be scaled, with real potential to close Africa’s financial gap,” he noted.
Boosting Low-Income Economies
To further bolster financial support for vulnerable African nations, the AfDB is mobilizing $27 billion through the African Development Fund (ADF), the bank’s concessional lending arm. The funds aim to assist 37 of the continent’s low-income countries as part of the ADF’s 17th replenishment cycle.
Dr. Adesina urged the global community to rally behind Africa with stronger donor commitments, arguing that expanded access to concessional financing is key to tackling poverty, building resilience, and unlocking long-term growth across the region.
“With the right investments in health, innovation, and financing, Africa can shape its own future and rise above structural limitations,” he concluded.
SDRs, created by the IMF, serve as international reserve assets designed to supplement member countries’ foreign exchange reserves and provide liquidity in times of need.
