President William Ruto has pledged Kenya’s substantial investment of USD 100 million (Ksh. 13.2 billion) over the next three years into the continent’s multilateral financial institutions. This investment is aimed at increasing Kenya’s shareholding in these institutions, signifying a strong vote of confidence in their potential and impact. The funds will be directed towards the Africa Development Bank, Afreximbank, and the Trade Development Bank, marking a significant move to bolster these financial entities.
During the official opening of the Africa Development Bank’s 59th summit, President Ruto highlighted the importance of this commitment. He emphasized the need for substantial replenishment of the African Development Fund, advocating for an increase of at least USD 25 billion to enhance its capacity to provide concessional financing to the least-developed African countries. This follows the recent IDA meetings in Nairobi, where he initially raised this crucial call.
In addition to the USD 100 million commitment, President Ruto announced an additional USD 20 million (Ksh. 2.6 billion) investment specifically for the Africa Development Fund, the concessional wing of the Africa Development Bank. This makes Kenya the highest regional contributor, poised to unlock further funding for high-priority development projects across the continent.
President Ruto’s call for increased investments in Africa was echoed by Rwanda’s President Paul Kagame. Both leaders stressed the need for reforms in the global financial architecture, advocating for a fairer system that benefits African nations. President Ruto urged donor and development partners to scale up their investments by re-channeling Special Drawing Rights (SDRs) through the African Development Bank, Africa’s premier development financial institution.
“We have been negatively profiled for far too long,” stated President Ruto, emphasizing the importance of establishing an Africa credit rating to provide accurate financial information and reduce unnecessary risk profiling. This sentiment underscores the collective effort needed to transform Africa’s financial landscape and promote sustainable development.
Kenya’s significant investment and advocacy for financial reform demonstrate the country’s commitment to driving economic growth and development across Africa. As the continent continues to navigate its development challenges, such initiatives are crucial in fostering a robust and resilient economic future for all African nations.
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