Abuja: The African Development Bank (AfDB) is considering an emergency support package to help African countries mitigate the economic impact of rising global uncertainties, including the ongoing Middle East crisis. Prof. Kevin Urama, the bank’s Chief Economist/Vice President for the Economic Governance and Knowledge Management, disclosed this in an interview with the News Agency of Nigeria (NAN).
According to News Agency of Nigeria, the proposed package would provide budget support and trade financing to countries facing fiscal pressures arising from higher food, fuel, and fertiliser prices triggered by global tensions. The bank is studying measures similar to those deployed during the COVID-19 pandemic to help governments manage short and medium-term economic shocks.
Prof. Urama stated that the AfDB is preparing a crisis response programme that requires consideration by the bank’s board and president. The programme includes emergency crisis-response budget support and trade financing to assist countries experiencing difficulties with importing essential goods.
Despite global disruptions, Africa’s economy is projected to remain resilient, with growth expected to reach 4.2 per cent in 2026 if current tensions subside within three months, and 4.0 per cent if they persist for six months. Growth is anticipated to rebound to 4.4 per cent in 2027, staying above the global average.
The AfDB is also promoting the New African Financial Architecture for Development (NAFAD), which aims to enhance cooperation among African financial institutions and mobilise capital for development. This initiative seeks to address issues such as fragmentation and weak coordination among development finance institutions, enabling them to better respond to Africa’s growing financing needs.