By Steve Ogidan
Having just returned from the African Development Bank’s Annual Meetings, where history was made, I witnessed firsthand the election of Sidi Ould Tah as the institution’s new President. His overwhelming victory—securing 76.18% of votes, including 72.37% support from regional member countries—signals Africa’s confidence in his vision for the continent’s financial future.
The Right Leader at the Right Time: Sidi Ould Tah’s election marks a watershed moment for the African Development Bank. At 60, this distinguished Mauritanian economist brings something unprecedented to the presidency: experience in leading and transforming a Development Finance Institution. His decade-long tenure as President of the Arab Bank for Economic Development in Africa (BADEA) saw him quadruple the institution’s balance sheet while securing a coveted AAA rating—a testament to his exceptional leadership and strategic acumen.
This unique credential sets him apart from all previous presidents of the AfDB. While his predecessors brought valuable experience from various sectors—Donald Kaberuka from Rwanda’s Ministry of Finance and Akinwumi Adesina from agricultural development—none had the hands-on experience of actually running and transforming a Development Finance Institution (DFI) before ascending to lead Africa’s premier development institution.
Building on Adesina’s Transformational Legacy: Dr. Akinwumi Adesina’s tenure (2015-2025) has been nothing short of revolutionary. His “High 5s” development priorities transformed the AfDB into a powerhouse of African development, achieving remarkable results in infrastructure development, agricultural transformation, energy access, regional integration, and improving the quality of life for Africans. Under his stewardship, the Bank became more relevant, more impactful, and more African-focused than ever before.
Tah inherits this transformed institution at a critical juncture. The foundation has been laid; now comes the task of scaling these achievements to meet Africa’s enormous development challenges in an increasingly complex global environment.
The Five-Pillar Strategic Agenda for President Tah
President Tah’s most critical priority must be the systematic strengthening of national and regional Development Finance Institutions across Africa. His proven track record at BADEA positions him uniquely to understand the intricacies of DFI operations, capital optimization, and institutional transformation.
The strategy should involve:
Capacity Building Programmes: Establishing comprehensive training and technical assistance programmes for DFI leadership across Africa through the Association of African Development Finance Institutions (AADFI)
Capital Mobilization Support: Creating innovative financing mechanisms to help national DFIs access long-term capital
Technology Transfer: Implementing standardized digital platforms and risk management systems across African DFIs
Regional Coordination: Fostering greater collaboration between regional DFIs to avoid duplication and maximize impact
Africa’s infrastructure deficit remains staggering, estimated at $130-170 billion annually. President Tah must leverage the expanded DFI network to create an infrastructure financing revolution:
Infrastructure Bond Markets: Developing local currency bond markets through DFI partnerships
Blended Finance Mechanisms: Creating innovative public-private partnerships that combine DFI resources with private capital
Cross-Border Projects: Facilitating regional infrastructure projects through coordinated DFI financing
Climate-Resilient Infrastructure: Ensuring all infrastructure investments meet climate adaptation and mitigation standards
With over 85% of Africa’s workforce operating in the informal sector, President Tah’s vision of formalization represents a massive opportunity for economic transformation:
Digital Financial Inclusion: Partnering with national DFIs to expand mobile banking and digital payment systems
MSME Financing: Creating specialized financing windows for micro, small, and medium enterprises
Skills Development: Investing in vocational training programmes linked to formal sector opportunities
Regulatory Reform: Supporting governments in creating enabling environments for business formalization
Africa’s demographic dividend—with 60% of the population under 25—represents both an opportunity and a challenge:
Youth Entrepreneurship Fund: Establishing dedicated financing facilities for young entrepreneurs across all sectors
Innovation Hubs: Supporting technology and innovation centers in partnership with national DFIs
Agricultural Modernization: Creating opportunities for youth in modern, technology-driven agriculture
Skills-Jobs Matching: Developing programs that align education and training with market demands
Climate change poses existential threats to African development. President Tah must position the AfDB as the continent’s climate finance leader:
Climate Adaptation Fund: Mobilizing $50 billion over five years for climate-resilient infrastructure
Green Bond Program: Expanding the Bank’s green bond issuances to fund renewable energy projects
Carbon Market Development: Helping African countries monetize their carbon assets
Climate-Smart Agriculture: Supporting smallholder farmers in adopting climate-resilient farming practices
Understanding the AfDB Group Architecture
Before examining the challenges ahead, it is crucial to understand that President Tah will lead the African Development Bank Group, which comprises three legally and financially independent entities working toward common development goals: the African Development Bank (AfDB), the African Development Fund (ADF), and the Nigeria Trust Fund (NTF). This tripartite structure presents both opportunities and complexities that the new president must navigate masterfully.
Navigating Global Economic Headwinds and Political Uncertainties
President Tah assumes office amid unprecedented challenges that will test his leadership mettle. The global economic environment presents a perfect storm of funding uncertainties, with President Trump’s administration requesting that Congress end US contributions to the African Development Bank Group’s concessional arm—the very mechanism that supports the continent’s poorest countries through the African Development Fund (ADF).
This potential loss of American funding comes at a critical time. However, there is a silver lining: Nigeria has just injected an additional $500 million into the Nigeria Trust Fund, demonstrating African commitment to self-reliance in development finance. This contrast between diminishing Western support and increased African investment underscores the urgency of President Tah’s mission. His agenda must include:
Strategic Response to Funding Challenges