Africa receives only $33bn from $650bn IMF SDRs – AfDB president

Dr Adesina made this assertion in a statement released on Sunday in Abuja, highlighting the structural inequities in international financial mechanisms that continue to sideline Africa, particularly during times of crisis such as the COVID-19 pandemic, the News Agency of Nigeria (NAN) reports. 

“Out of the $650 billion in SDRs issued globally, Africa received only $33 billion, just 4.5 per cent. This is, despite being the continent most in need and with the least resources to manage the economic fallout,” Adesina said. 

The AfDB president stressed that the distribution model of the SDRs failed to reflect the urgent financial needs of Africa, which bore some of the deepest economic scars from the pandemic, with limited fiscal capacity to implement robust recovery plans. 

To address this imbalance, Adesina disclosed that the AfDB, in partnership with the African Union, spearheaded efforts to rechannel unused SDRs from wealthier nations to African economies. Leveraging the AfDB’s AAA credit rating, a new framework co-developed with the Inter-American Development Bank (IDB) has now been approved by the IMF Board. 

“This is a game-changer, as each dollar of SDR rechanneled can be leveraged four to eight times. That means a $50 billion reallocation could unlock up to $200 billion in new development financing—at no cost to taxpayers,” Adesina explained. 

He described the approval of the SDR rechanneling through multilateral development banks as a landmark step towards bridging Africa’s financing gap, especially in a global context of shrinking aid budgets and rising debt vulnerabilities. 

In a further move to strengthen the continent’s financial resilience, Adesina announced that the African Development Fund (ADF), the concessional lending window of the AfDB, is currently raising an additional $27 billion from global capital markets. These resources are expected to benefit 37 low-income countries across Africa. 

The announcement comes as the ADF embarks on its 17th replenishment cycle. Adesina appealed to international donors to demonstrate stronger support, emphasizing that expanded concessional resources are critical for combating poverty and stimulating inclusive growth across the continent. 

“With greater investment in health, innovation, and financing, Africa can protect its people, unlock its potential and chart its own path to prosperity,” he added. 

The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries.