Akinwumi Adesina: G7 members agreed to allocate $100bn drawing rights for African countries

Akinwumi Adesina, president of the African Development Bank (AfDB), says G7 countries have agreed to allocate $100 billion special drawing rights (SDRs) to Africa.

The International Monetary Fund (IMF) had proposed a $650 billion SDR to boost the international reserves of its member countries.

SDR is an international reserve asset created by the IMF from a pool of currencies for member states.

At the summit in Paris on Africa financing, President Emmanuel Macron of France agreed to convince developed nations to reallocate $100 billion in their IMF SDR to African states by October.

Speaking at a virtual meeting during the opening ceremony of the AfDB’s annual event on Wednesday, Adesina said the G7 countries have agreed to the call.

“We now have a real opportunity to tackle Africa’s challenges more decisively with the recent decision by the IMF to issue $650 billion special drawing rights (SDRs),” he said.

“As agreed by African heads of state and global leaders on the summit on African financing economies called by Emmanuel Macron of France, $100 billion should be provided to support Africa.

“I am delighted that the G7 heads of state and government agreed to this call at their recent summit.”

Adesina commended the debt service suspension initiative by the World Bank and the SDR by the IMF.

He said the measures would help boost economic recovery and tackle rising challenges in Africa.

“To use the special drawing rights, we need new lenses, we need new approaches for these are extraordinary times. These SDRs should also be used to direct financing to Africa through the African Development Bank,” he added.

“Let me be very clear, Africa is not looking for a free pass. Debt resolution must be reinforced by stronger economic governance, public financial management, better and transparent management of Africa’s natural resources and mobilisation of domestic resources.”