The African Union and the Arab Bank for Economic Development in Africa (BADEA) have signed their first-ever cooperation agreement to mobilise technical expertise and resources for Africa’s economic and social development.
The memorandum of understanding, signed on October 15 seeks to strengthen coordination between the two institutions and support African-led development priorities.
AU Commission Deputy Chairperson Selma Malika Haddadi and BADEA President Abdullah Al Musabeeh signed the cooperation agreement.
The agreement establishes a formal basis for closer institutional cooperation, with both sides committing to translate their partnership into practical programmes and development outcomes across the continent.
“The MoU recognises the complementary mandates, expertise and institutional capacities of our two institutions and provides a foundation for stronger coordination, the mobilisation of technical expertise and resources, and closer collaboration in advancing African-led development priorities and initiatives,” the AUC said in a statement.
The partnership comes as African countries seek to mobilise additional financing, technical expertise and investment to accelerate economic transformation, expand infrastructure and strengthen regional integration.
The partnership is aligned with the AU’s Constitutive Act and Agenda 2063, the continent’s long-term development blueprint, which seeks to build an integrated, prosperous and peaceful Africa.
The signing also reinforces the AU’s efforts to strengthen partnerships with development finance institutions to support continental priorities and improve the implementation of its programmes.
BADEA is a development finance institution established to strengthen economic, financial and technical cooperation between Arab countries and African states. It provides financing and technical assistance for development projects, including infrastructure, agriculture, rural development and social sectors.
The bank operates in 44 African countries that are not members of the Arab League and has financing instruments targeting both public and private sector development, including trade finance and support for businesses.
Its strategic priorities include infrastructure investment, agricultural value chains, trade and private sector development, and support for small and medium-sized enterprises.
These areas could provide avenues for cooperation with the AU, particularly in supporting continental integration, expanding productive capacity and mobilising investment for development priorities.
The AU said the objective was to turn the partnership into practical cooperation, resources and results that contribute to a more prosperous, integrated and sustainable continent.
The agreement marks a new formal chapter in cooperation between the continental body and the Arab-owned development bank, providing a platform for closer engagement in support of Africa’s economic and social transformation.
