N’sele: SDRs channeling key to achieve Africa’s development goals

The Vice President for Finance and Chief Financial Officer at the African Development Bank, Hassatou Diop N’sele, emphasized the crucial role of Special Drawing Rights (SDRs) as a key channel to achieve Africa’s development goals. In a recent interview with CNBC Africa, N’sele discussed how SDRs are vital in unlocking new lending opportunities by Multilateral Development Banks to address the continent’s pressing development needs. N’sele highlighted that responses from discussions with countries like Japan have been positive and encouraging. She stressed the importance of partnerships and emphasized the need to mobilize the private sector to drive additional financing into the continent. SDRs are international reserve assets created by the International Monetary Fund (IMF) to supplement its member countries' official reserves. They serve as a supplement to the existing reserve assets of member countries and can be exchanged for freely usable currencies. The significance of SDRs lies in their ability to provide liquidity support to the global economic system during times of crisis. N’sele pointed out that leveraging SDRs can play a critical role in supporting African economies, especially in the wake of the challenges brought about by the COVID-19 pandemic. By channeling SDRs effectively, African countries can access much-needed financial resources to drive sustainable development and economic growth. One key aspect highlighted by N’sele is the need for strategic collaboration and cooperation among various stakeholders to maximize the impact of SDRs in Africa. She emphasized that partnerships between governments, financial institutions, and the private sector are essential in ensuring that SDRs are deployed efficiently to address key development priorities across the continent. The African Development Bank, under N’sele’s leadership, remains committed to exploring innovative financing mechanisms and sustainable solutions to support Africa’s development agenda. By leveraging instruments like SDRs and fostering strategic partnerships, the Bank aims to catalyze increased investment and drive socio-economic progress in the region. In conclusion, N’sele’s insights underscore the potential of SDRs as a transformative tool in advancing Africa’s development goals. By harnessing the power of SDRs and fostering collaboration, African countries can pave the way for a more prosperous and resilient future.