AfDB supports new financial architecture to address Africa’s funding gap
via NewsDay Zimbabwe6 min read
The African Development Bank AfDB is backing a new financial architecture, the New Architecture for Africa’s Development NAFAD, to help close the continent's financing gap and accelerate structural transformation. This initiative aims to leverage the balance sheets of African development finance institutions DFIs, along with pension funds, banks, and insurance companies, to pool resources and maximize capital impact. AfDB president Sidi Ould Tah champions this collaborative approach, which focuses on risk mitigation and sharing to optimize the value of invested funds. Kevin Urama, the bank’s chief economist and vice-president for Economic Governance and Knowledge Management, emphasized that collective action leads to greater long-term impact. African governments are also urged to play a critical role through stronger domestic resource mobilization, improved macroeconomic management, and governance reforms to attract additional investment. Africa requires significant funding, including US$1.3 trillion for Sustainable Development Goals, US$221 billion annually for infrastructure, and US$402.2 billion annually for structural transformation. Urama noted the paradox of vast financing needs coexisting with an estimated US$4 trillion in untapped domestic capital. The challenge is compounded by rising geopolitical fragmentation and declining official development assistance, as major economies redirect resources domestically.
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This summary was AI-generated from a story originally published by NewsDay Zimbabwe.
James Wade Oliver Jr., founder of ZimWorX, has created over 1,800 jobs across Africa and beyond using an "insourcing" model. Oliver, who began his entrepreneurial journey at age 12, was drawn to Zimbabwe in 2015 after learning about its educated but underemployed youth. He launched ZimWorX in 2017, confirming the country's talent base during his first visit in 2018. Oliver aims to create 20,000 jobs by 2032 by expanding campuses in Harare, Lusaka, and Costa Rica, and investing in skills development, including AI training. He believes Zimbabwe has the potential to become Africa's outsourcing capital, provided there is a shift in global perception from "cheap labor" to premium talent, supported by infrastructure and technology investment. Oliver operates on a "Win–Win–Win" philosophy, ensuring every interaction benefits the client, his team, and the broader social mission. His business integrates faith, with 51% of profits donated to social causes, supporting education and community projects. Oliver's book emphasizes that global talent should be viewed as a growth strategy, not merely a cost-cutting measure, transforming both businesses and communities.
Must ReadThe African Development Bank AfDB has approved a US$25 million grant to Zimbabwe. This funding is specifically allocated to support communities vulnerable to climate change. The initiative aims to bolster resilience and adaptation efforts in regions most affected by climate impacts. Communities in Matabeleland and Masvingo are among those expected to benefit from this climate fund.
Must ReadFuel service stations in Zimbabwe are refusing to accept the new Zimbabwe Gold ZiG currency, a calculated move by businesses that have experienced multiple currency transitions. Their resistance stems from the economic reality that fuel is imported and paid for in US dollars, creating a currency mismatch when they are required to sell in ZiG. Converting ZiG revenues to US dollars is not seamless, and the disparity between the official and parallel market exchange rates leads to losses for businesses operating on tight margins. This situation highlights a broader issue of confidence in the new currency. For ZiG to gain traction, the government must demonstrate unwavering commitment by pricing key public services, such as passports and licenses, in ZiG. Currently, citizens are required to pay for passports in US dollars, an inconsistency that sends conflicting messages to the market. The government needs to streamline foreign exchange access, ensure the official exchange rate reflects market realities, and address structural inefficiencies. Clear and consistent communication is also crucial to build trust. The success of ZiG depends on public belief, which will be shaped by the government's actions, starting with its own services.
The Ministry of Primary and Secondary Education MoPSE has launched a new WhatsApp-based learning platform, the Learner’s Hub Chatbot, aimed at improving access to academic support and learner welfare services, particularly for students in rural and underserved communities. Primary and Secondary Education minister Torerayi Moyo unveiled the chatbot at the Zimbabwe International Trade Fair in Bulawayo, highlighting its role in closing long-standing gaps in educational support. The platform offers real-time assistance, learning resources, and guidance, leveraging WhatsApp's widespread accessibility. This initiative is complemented by the government's distribution of over 8,000 Starlink connectivity kits to schools, enhancing internet access in rural areas. The chatbot also functions as a welfare tool, allowing students to report concerns and receive timely help, with automated responses and translation into indigenous languages to ensure inclusivity. Moyo emphasized that while technology strengthens and supports teachers, it does not replace them. The ministry plans to scale up the chatbot nationwide, focusing on affordability and accessibility for all learners.