AFDB President seeks end to natural resources-backed loans

By Bob MajiriOghene Etemiku, Abuja

President of the African Development Bank, (AfDB), Akinwumi Adesina, at the Global Financing Summit in France, has said that African leaders must resist the urge to accept loans backed by natural resources (oil, gas and minerals).

“Those loans are toxic, they are non-transparent, unfair, corruptible, complicate debt resolution, and mortgage the future of countries. Africa must end natural resources backed loans,” Mr Adesina said during a plenary at the Summit.

Meanwhile in May 2023, the AFDB provided a $2million partial credit guarantee, and a $28,000 grant to Tanzania to facilitate access to fertilizers for smallholder farmers.

According to the AFDB, the partial credit enables African fertilizer and Agro-industry partnership to provide fertilizers to 550,000 smallholder farmers in Tanzania through suppliers and major distributors.

In addition to Tanzania, the AFDB has approved another $49.92million to build a 30MW solar photovoltaic power plant in Dekembare in Eritrea.

The financial approval date, FAD, was on March 1, 2023, with a project name, Dekembare 30-MW photovoltaic solar power plant project in Eritrea. The Eritrea grant comprises $19.5million from the African Development Fund, ADF, and $30.42million from the transition support facility, TSF.

The AfDB said that part of the grant will be allocated to technical assistance and capacity building to improve operational performances of the grid.