WASHINGTON D.C.: Finance Ministers from the Horn of Africa convened in Washington D.C. for the 22nd Horn of Africa Initiative (HoAI) Ministerial Meeting, held in conjunction with the Annual Meetings of the World Bank and International Monetary Fund. The gathering focused on innovative financing mechanisms to enhance resilience and sustainable development across the region.
According to Ethiopian News Agency, the meeting was co-chaired by Ahmed Shide, Ethiopia’s Finance Minister, and Victoria Kwakwa, World Bank Vice President for Eastern and Southern Africa. Key discussions centered on the urgent need for increased climate financing and innovative solutions to combat the escalating challenges of climate change in the Horn of Africa. New participants, including recently appointed Finance Ministers from Kenya and South Sudan and Ms. Nnenna Nwabufo of the African Development Bank, were welcomed by Minister Ahmed, who emphasized the significance of partnerships.
Minister Ahmed expressed appreciation for the cont
inuous support from development partners such as the World Bank, African Development Bank, European Union, IGAD, BMZ, UK, and the potential collaboration with BADEA. He underscored the necessity of expanded investments in climate adaptation and resilience, noting that current financial resources are inadequate. He advocated for a joint effort in macroeconomic management, with backing from the international community, to tackle these issues.
During the meeting, a presentation on innovative finance for development and climate investments was delivered, followed by discussions on possible support for the HoAI. Minister Ahmed urged attendees to consider operationalizing the opportunities presented without jeopardizing debt sustainability. He also highlighted the role of observing institutions, including the United States, Japan, European Investment Bank, Trade and Development Bank, and ZEP-RE, in encouraging private sector investments.
The meeting concluded with a resolution to develop concrete strategies to ex
pand innovative finance and boost climate financing in the region. While innovative and climate-focused funding is vital, maintaining traditional funding sources, particularly through IDA 21 and ADF-17 replenishments, remains crucial.
Marking the five-year anniversary of the HoAI, the meeting celebrated advancements in resilience, connectivity, trade facilitation, and human capital development. Minister Ahmed stressed the importance of regional integration in the Horn of Africa and announced a comprehensive review of the initiative’s achievements and future prospects at the next ministerial meeting, scheduled to be hosted by Ethiopia and co-hosted by development partners in February next year.
Launched in 2019, the HoAI serves as a regional integration platform with member states including Djibouti, Somalia, Kenya, Ethiopia, Eritrea, South Sudan, and Sudan. It aims to promote economic integration with a focus on infrastructure development, trade facilitation, investment, human development, and resilience. A
pproximately US$11.8 billion has been mobilized or programmed to support the HoAI’s strategic pillars.