President William Ruto has pledged a substantial investment of USD 100 million (Ksh.13.2 billion) over the next three years in Africa’s key multilateral financial institutions. This investment is aimed at increasing Kenya’s shareholding and demonstrating confidence in these institutions. The funds will be allocated to the Africa Development Bank, Afreximbank, and the Trade Development Bank.
President Ruto made this announcement during the official opening of the Africa Development Bank’s 59th summit, where other African Heads of State voiced their frustrations with the current multilateral financial system. Additionally, Ruto committed an extra USD 20 million (Ksh.2.6 billion) to the Africa Development Fund, the concessional arm of the Africa Development Bank. This move positions Kenya as the leading regional contributor, unlocking more funding for crucial development projects.
Following the recent IDA meetings in Nairobi, President Ruto reiterated his call for a significant replenishment of the African Development Fund, advocating for at least USD 25 billion (Ksh.3.3 trillion) to enhance its ability 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 25 billion to increase its capacity to continue providing concessional financing to the least developed African countries,” said President Ruto.
Ruto also urged donor and development partners to increase their investments in Africa by re-channeling Special Drawing Rights (SDRs) through the African Development Bank, emphasizing its role as the premier development financial institution on the continent. His sentiments were echoed by Rwanda’s President Paul Kagame, who stressed 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.”
