Unite for Africa: Leaders Seek $120B G20 Investment

Leaders Unite for Africa's $120B Investment Push

The Economic Development Assembly in Abidjan highlighted the importance of collaboration between the private, public and civil society sectors to discuss...

Global leaders unite to boost Africa's development. Over 100 CEOs, artists, and public figures sign Abidjan Accord, urging G20 nations to invest $120 billion. Côte d'Ivoire pays $9.9 million to Gavi, while Zipline expands drone delivery partnership by $500,00

Over 100 CEOs from Africa and worldwide, along with global leaders and artists, have backed the Abidjan Accord, which presses G20 governments to secure $120 billion for vital investments in Africa. This endorsement seeks to address the pressing issue of poverty in 77 developing countries, many located in Sub-Saharan Africa

The Economic Development Assembly, held in Abidjan, Ivory Coast, emphasized the need for G20 nations to increase their contributions to the World Bank's International Development Association (IDA) fund. This fund plays a critical role in supporting the development of impoverished nations, and the additional financing would provide essential resources for initiatives targeting poverty alleviation, healthcare, education, and infrastructure development.

Aspects of the Abidjan Accord:

Addressing Poverty: Lift 77 developing countries out of poverty, with a focus on Sub-Saharan Africa

G20 Contributions: Boost funding to the World Bank's International Development Association (IDA)

Investment Goals: Allocate $120 billion for critical investments in Africa

Global Support: Endorsed by over 100 CEOs, global leaders, and artists

The $120 billion sought by the Abidjan Accord will replenish the International Development Association's (IDA) 21st funding round. As the World Bank's primary fund for low-income countries, IDA plays a vital role in supporting development initiatives worldwide.

Denmark recently set a compelling example by announcing an early and substantial commitment to the IDA, marking a 40% increase from the previous replenishment cycle. This significant contribution demonstrates Denmark's dedication to supporting economic growth and poverty reduction in developing nations.

Facts:

IDA's Purpose: World Bank's fund for low-income countries

21st Replenishment Round: Seeking $120 billion

Denmark's Commitment: 40% increase from previous cycle

Global Impact: Supporting development initiatives in 77 countries, primarily in Sub-Saharan Africa

By securing this funding, the IDA can continue to drive meaningful change, promoting economic resilience, healthcare, education, and infrastructure development in vulnerable communities worldwide.

The Economic Development Assembly: Advancing Africa's Future, held in Abidjan, Côte d'Ivoire, brought together a diverse group of influential figures to sign the Abidjan Accord. This accord aims to mobilize significant financial investments from G20 countries to support the World Bank's IDA21 replenishment. Among the signatories were representatives from major companies like Intel and Cisco, demonstrating the private sector's commitment to Africa's development.

Key Signatories:

Public Sector Figures:

• Former Austrian President Heinz Fischer
• Former US Treasury Secretary Lawrence Summers
• Former Irish Prime Minister Leo Varadkar
• Former Irish President Mary Robinson
• Former Swedish Prime Minister Stefan Löfven

Artists and Influencers:

•   Ariel Wayz
•   Berla Mundi
•  Davy-Carmel Ingabire
•  Falz
•  Femi Kuti
•  Gyakie
•  Jeune Lio
•  Made Kuti
•  Nomzamo Mbatha
•  Sophy Aiida
•   Stonebwoy

These individuals have come together to advocate for critical investments in Africa, addressing poverty and promoting economic growth across the continent.

Prominent philanthropic leaders have joined forces to make a difference, including Dr. Phumzile Mlambo-Ngcuka, the former Executive Director of UN Women and Deputy President of South Africa. Representatives from 'The ONE' Campaign are also on board, bringing their expertise and passion to the table. This powerful coalition is dedicated to driving positive change and creating a brighter future for all.

Some notable philanthropic efforts in Africa include:

Collaborative Philanthropy: Bringing together local and international donors to tackle pressing issues 

The END Fund: A private-philanthropic initiative focused on ending neglected tropical diseases 

African Philanthropy Network: Estimating the potential giving pool of wealthy individuals at $2.8 billion per year

These initiatives demonstrate the potential for philanthropy to make a meaningful impact in Africa, and with leaders like Dr. Mlambo-Ngcuka and 'The ONE' Campaign on board, we can expect even more exciting developments in the future.

Commenting on the assembly's outcomes, Nir Bar Dea, Chief Executive Officer (CEO) of Bridgewater, said, “The Economic Development Assembly in Abidjan highlighted the importance of collaboration between the private, public and civil society sectors to discuss some of the most difficult challenges and opportunities that Africa faces and the impact they will have on the global economy.

“As our research and collaboration with the World Bank, global policymakers and thought leaders have highlighted, an increase in IDA funding will play an outsized role in advancing global growth by supporting important development goals like furthering healthcare, core infrastructure and energy access.”

Hugh Evans, CEO of Global Citizen, highlighted that excessive debt servicing costs, resulting from high-interest loans, are crippling developing economies. This unsustainable debt burden diverts vital funds away from critical public services, including:

• Healthcare
• Education
• Nutrition
• Infrastructure development

“Fully funded, IDA has the potential to improve living conditions for almost two billion people.

“It's one of the most strategic investments G20 governments can make in the global economy of the future,” he noted.

Tshepo Mahloele, Harith General Partners' founder and Chairman, stressed that investing in Africa encompasses more than just financial investment; it requires acknowledging the continent's:

• Vast natural resources
• Abundant talent pool
• Untapped opportunities

“The future of Côte d'Ivoire and Africa at large is bright and those who invest today are planting the seeds for tomorrow's prosperity," he said.

Dr. Phumzile Mlambo-Ngcuka, the Deputy President of South Africa and former Executive Director of UN Women, has joined forces with 70 other leaders, organizations, and individuals to sign the Abidjan Accord. As she stated, “Today I join with 70 other leaders, organisations and individuals by adding my name to the Abidjan Accord, which is an urgent call to leaders of the G20 nations to urgently step up and invest to advance Africa's future." This accord is a rallying cry for the G20 nations to prioritize investments in Africa's development.

The assembly where the Abidjan Accord was signed also saw the introduction of several initiatives aimed at promoting development across Africa. One of the key announcements was the support for Gavi, the Vaccine Alliance. This partnership has already yielded significant results, with African nations surpassing the $100 million mark in co-financing contributions to Gavi for the second consecutive year. This milestone demonstrates the commitment of African nations to improving healthcare and vaccine access for their citizens.

Côte d'Ivoire, the host country for the Economic Development Assembly (EDA), has made significant strides in supporting vaccine initiatives. The country has fully paid $9.9 million in co-financing to Gavi, the Vaccine Alliance, for 2024. This commitment demonstrates Côte d'Ivoire's dedication to improving healthcare and vaccine access for its citizens.

To further enhance vaccine delivery in rural areas, Zipline, a drone delivery service, is expanding its partnership with Gavi by $500,000. This innovative collaboration will help bridge the gap in vaccine accessibility, ensuring that remote communities receive essential healthcare services.

Highlights:

Côte d'Ivoire's Co-Financing Commitment: $9.9 million paid to Gavi for 2024 

Zipline's Expanded Partnership: $500,000 investment to enhance rural vaccine delivery 

Africa's Vaccine Efforts: African nations surpassed the $100 million mark in co-financing contributions to Gavi for the second consecutive year.