According to the African Development Bank's (AfDB) African Economic Outlook 2023, Africa is poised to experience the second fastest growing economy in the world, after Asia. The report highlights that this projected growth is underpinned by favourable global conditions and the continent's ability to strengthen its economic resilience.

The hashtag of the 2023 © Annual Meetings African Development Bank

Released at the Bank's Annual Meetings in Sharm El-Sheikh, Egypt, the report forecasts Africa's GDP growth of 4.3 percent in 2024, up from 3.8 percent in 2022, and highlights that 22 countries are expected to record growth rates above 5 percent.

The AfDB's Annual Meetings, which concluded on Friday evening, provided an opportunity for the Bank's Board of Governors, African leaders and development partners to explore practical ways to "mobilize private sector financing for climate and green growth in Africa", which is this year's theme.

The Board also approved management's request to leverage the equity of the African Development Fund to mobilize more resources in capital markets. Once fully implemented, the Bank Group could provide up to $27 billion to help low-income and fragile states through the African Development Fund.

To attract private investors and encourage them to participate in green projects, the AfDB has put in place innovative financing mechanisms. One such initiative is the Sustainable Energy Fund for Africa (SEFA), which provides grants and technical assistance to support the development of renewable energy projects.

AfDB President Dr. Akinwumi Adesina said: "African economies are moving in the right direction," noting that five of the six best performing economies before the pandemic are poised to join the world's 10 fastest-growing economies in 2023-2024.

Akinwumi Ayodeji Adesina, President of the AfDB, at the opening remarks of the 2023 © AfDB Annual Meetings African Development Bank

The success story of the Benban solar park

The Benban Solar Park in Egypt is an outstanding example of mobilizing the private sector for renewable energy development. Located near the city of Aswan, the Benban Solar Park covers an area of 37km² and is one of the largest solar energy installations in the world.

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The first time I came here, there was only sand. Benban is now one of the largest solar parks in the world, with millions of photovoltaic panels, providing electricity to more than one million homes," said Mostafa Adelfatah, the project manager.

This project is part of the strategy developed by the Egyptian New and Renewable Energy Authority, and the AfDB has supported the project by engaging investors, such as Africa50. This investment platform acted as a bridge between government and the private sector, and helped raise approximately $450 million for the solar park.

Illustration of the BenBan photovoltaic power plant project in Egypt © African Development Bank

The Bank has pledged to mobilize $25 billion by 2025 and aims to pave the way for a greener and more prosperous Africa. But it also aims further: reducing the level of policy instruments and fostering inclusiveness and better coordination among multilateral development banks is the challenge of the coming years.

On Africa's independence, the governor of the Central Bank of Egypt, former president, said: "We must work together to have our own funds, to ensure that the perception of our economies is closer to reality, rather than being shaped by failures that are not of our making."

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