AfDB Commits to Supporting Lake Chad Communities with Innovative Financing
Underscoring the link between peace and development, AfDB Director Yaro Balde highlighted the African Union’s commitment to develop innovative financing mechanisms to address security issues.
The African Development Bank (AfDB) has re-established its commitment to improving development and stability in the Lake Chad region through innovative financing mechanisms, territorial action plans (TAPs) and cross-border projects.
Speaking at the 5th Lake Chad Governors’ Forum in Maiduguri, AfDB President Akinwumi Adesina, represented by Yaro Balde, Director of AfDB’s Transition States Coordination Office, stressed the bank’s dedication to aligning its interventions with the region’s evolving needs.
“In this crisis, we must ensure vulnerable groups are adequately represented in the TAPs,” Balde said on Thursday, Jan. 30. He called for a holistic approach to the region’s complex challenges. “Integration is key. Solutions must be holistic, addressing the complex and dynamic nature of the crisis,” he noted.
Balde highlighted AfDB’s commitment to incorporating these principles into its programs, including large infrastructure projects. He cited a road project in Cameroon, funded by the bank, that included socio-economic interventions like job creation and improved social services, demonstrating how TAPs drive investment.
Advocating a “paradigm shift” in development strategies, Balde urged a move beyond poverty reduction to wealth creation. “There’s significant capital in these communities that, if properly leveraged, can create the wealth needed for sustainable peace and security,” he said.
He also stressed the importance of cross-border collaboration for resource mobilisation, pointing to a recent AfDB-financed project as an example. Balde urged the TAPs’ strategy team to prioritise regional cooperation to maximise impact.
Discussing the bank’s efforts to secure funding for the TAPs, he explained that AfDB integrates these issues into its national programmes and employs dedicated financing instruments.
Underscoring the link between peace and development, Balde highlighted the African Union’s commitment to develop innovative financing mechanisms to address security issues. He detailed the plans for a security-indexed investment fund, designed to blend grant resources with long-term development finance. This fund, he explained, will focus on preventing crises, protecting strategic assets like Lake Chad, rebuilding post-conflict areas, and managing the consequences of crises.
“This fund is an innovative mechanism to address peace and security,” Balde added, noting that security is linked to development and is a global public good requiring collective contribution.
Earlier at the forum, Riadh Ben Messaoud, Lead Coordinator for West and Central Africa at the AfDB, outlined the bank’s multifaceted approach to regional development. He disclosed that AfDB has invested over $2 billion in the past 20 years to support communities affected by the ongoing crisis.
The African Development Bank (AfDB) is intensifying its efforts in the Lake Chad region with innovative financing and cross-border projects.
At the 5th Lake Chad Governors’ Forum, President Akinwumi Adesina, via Yaro Balde, emphasized the need to incorporate holistic and integrated solutions tailored to the region’s evolving challenges, especially addressing the needs of vulnerable groups.
Balde highlighted the importance of moving from mere poverty alleviation to wealth creation, advocating for cross-border collaboration to maximize resource mobilization. He discussed the role of security in development and the AfDB’s plans for a security-indexed fund aimed at crisis prevention, asset protection, and regional recovery.
AfDB has committed over $2 billion to regional development in the past two decades, blending socio-economic interventions with infrastructure projects, reflecting a comprehensive approach to enhancing the region's stability and growth.
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