The President of the African Development Bank (AfDB), Dr Akinwumi Adesina, has criticised the deeply unequal distribution of Special Drawing Rights (SDRs) issued by the International Monetary Fund (IMF), noting that Africa received only $33 billion out of the $650 billion global allocation—a mere 4.5%.
Dr Adesina made the remarks in a statement released on Sunday in Abuja, describing the SDR distribution model as structurally flawed and ill-suited to addressing the needs of the world’s most financially vulnerable regions.
Africa sidelined during global crises
“Africa, the continent with the greatest need and least fiscal room to manoeuvre, was effectively left behind during one of the most challenging global crises in decades,” he said, referencing the economic devastation caused by the COVID-19 pandemic.
He stressed that while Africa was among the worst hit by the economic fallout, its allocation of SDRs failed to match its pressing financial requirements, severely limiting its ability to fund recovery and development programmes.
Rechanneling SDRs for greater impact
In response, the AfDB, in collaboration with the African Union, has led efforts to rechannel unused SDRs from wealthier nations to African countries. A new framework, co-developed with the Inter-American Development Bank (IDB), has now received approval from the IMF Board.
“This is a game-changer,” Adesina stated. “Each dollar of SDR rechanneled through multilateral development banks like the AfDB can be leveraged four to eight times. A $50 billion reallocation could unlock up to $200 billion in new development finance—without burdening taxpayers.”
The breakthrough represents a major policy shift, allowing SDRs to be used more flexibly and effectively by institutions working directly with developing nations.
Boosting concessional financing
Adesina also announced the African Development Fund (ADF)—the concessional arm of the AfDB—is in the process of raising an additional $27 billion from global capital markets. These funds aim to support 37 low-income African countries.
This effort comes as the ADF enters its 17th replenishment cycle, with Adesina urging international donors to demonstrate stronger commitment.
“Greater investment in health, innovation, and finance will allow Africa to protect its people and unlock its full potential,” he said.
What is the SDR?
The Special Drawing Right (SDR) is an international reserve asset created by the IMF to supplement the official reserves of member countries. Allocations are typically based on a country’s IMF quota share, favouring larger and wealthier economies.