Arab Bank for Economic Development in Africa

The Arab Bank for Economic Development in Africa (BADEA) (French: Banque Arabe pour le Développement Economique en Afrique) (Arab:المصرف العربي للتنمية الاقتصادية في أفريقيا) is a development bank owned by the Arab League to provide development financing to African countries.[1]

It was established pursuant to the resolution of the 6th Arab Summit Conference at Algiers on the 28 November 1973. The Bank was created for the purpose of strengthening economic, financial and technical cooperation between the Arab and African regions and for the embodiment of Arab-African solidarity.

The Bank is an international financial institution enjoying full international legal status and complete autonomy in administrative and financial matters. It is governed by the provisions of its establishing agreement and the principles of international law.

History

The Bank began operations in March 1975.[2] BADEA is a financial institution owned by eighteen Arab countries members of the League of Arab States (LAS) which signed its Establishing Agreement on 18 February 1974.

The Seventh Five-Year Plan (2015 – 2019)

Structure and Objectives

website	www.badea.org

Headquarters The Bank's Headquarters are located in Khartoum, the capital of the Republic of the Sudan.[3]

Objectives

The Bank was created for the purpose of strengthening economic, financial and technical cooperation between the Arab and African regions and for the embodiment of Arab-African solidarity on foundations of equality and friendship. To achieve this end, the Bank was given a mandate to:

Participate in financing economic development in African countries.
Stimulate the contribution of Arab capital to African development.
Help provide the technical assistance required for the development of Africa.

Lending Operations

BADEA interventions included various products that have been enhanced and diversified to meet the economic needs of beneficiary countries. They have been steadily promoted to fit the development mechanisms and their conducive atmosphere. These products could be categorized as follows : 1. Financing development projects: It is the most important product in term of volume. Loans to finance projects are extended in concessionary terms, that some projects are financed with a grant element exceeding 50%. 2. Financing technical assistance operations: They are extended as grants to finance feasibility studies for development projects and institutional support operations. 3. Financing Arab exports to African countries: A program launched in 1983. 4. Promote Arab investments in African countries: BADEA has adopted several methods in this regard. 5. Debt relief on Heavily Indebted Poor Countries (HIPC) : 28 countries have benefited from this initiative. 6. Financing Urgent Aid : A limited activity which was extended to Sahel ian countries that faced drought in 1987.

Poverty Reduction

The most fundamental goal of BADEA in its intervention in all sectors is poverty alleviation. To that end, priority is given to development projects with direct and indirect impact on poverty reduction. Since poverty touches rural population and those living in urban zones, at the margin of cities "urban poor", BADEA lending program focuses on infrastructure projects, which help in creating suitable environment for investment, increasing production in agriculture and rural development, enhancing urban and rural infrastructure which is considered as a major factor in investment promotion. In addition to this, reactivation of elements of production, creation of employment to enable the poor segments in the community to increase their income. BADEA has also provided financing to micro, small and medium enterprises through lines of credit.

Enhancing women role in development

BADEA recognizes that women play a key role in boasting social development and poverty reduction. Therefore, operations (Project, technical assistance) financed by BADEA focus on women involvement in these activities. The Bank under takes programs that enhance women participation in development, and certain operations are exclusively devoted to women, in rural area and modern sectors of production.

Poverty Reduction

Enhancing women role in development

Regional Operations

Regional transport is considered as a major pillar in the process of regional integration since it facilitates setting up binds amongst African countries and between Africa and the Arab World. Moreover, this connection has a positive impact on the African continent promotion, by contributing to the expansion of the circle of commercial exchange, facilitating easy circulation of products between African countries as well as transportation inside and outside countries. It will also contribute to the extension of markets, creating regional or continental markets for both goods and services, and therefore achieve development in Africa. In this regard, the total allocations for financing regional operations during the period 1975-2013 amounted to US$537.7 million, directed to finance 66 regional projects, and US$7.69 million to finance 25 technical and economic feasibility studies as grants, some of which produced projects financed by BADEA.

Coordination and Co-Financing

BADEA attaches great importance to enhancing coordination with development financial institutions particularly the Arab ones, due to the financial opportunities especially for financing major projects proposed for funding by beneficiary countries. The "Arab Coordination Group" also constitutes a platform for the exchange of expertise, coordination of policies and establishment of contact with international development institutions. BADEA contributes in all meetings that regroup regional and international institutions operating in the field of development support in Africa Sub-Saharan countries.

Having reviewed the experience of cooperation throughout the past four decades of BADEA's establishment, we judge useful to bring to light future plans and visions. Taking advantage of its extensive experience, BADEA will try, within the framework of its plans and visions, to strengthen its role in economic and social development through the improvement of its products and expansion of its operations.

formation	November 28, 1973 (Treaty signed) March 1975 (Treaty in force)
type	International Financial Institution
status	Treaty
headquarters	Khartoum, Sudan
language	English Arabic French
leader title	President
leader name	Abdullah Almusaibeeh
abbreviation	BADEA
membership

Arab Bank for Economic Development in Africa

History

The Seventh Five-Year Plan (2015 – 2019)

Structure and Objectives

Objectives

Lending Operations

Poverty Reduction

Enhancing women role in development

Poverty Reduction

Enhancing women role in development

Regional Operations

Coordination and Co-Financing

External links

References