African Development Bank shareholders approve unprecedented $115bn capital increase

 

On Thursday October 31st the The African Development Bank (AfDB) held its extraordinary shareholders’ meeting within the premices of the Bank in Abidjan, Cote d’Ivoire. This meeting resulted in a significant move for the bank as, after two years of negotiations, the Board of Governors approved an increase of the capital of the Bank to US$115 billion. This is an unprecedented move from $93 billion to $208 billion. According to Dr Adesina, President of the Bank, this is a huge achievement and first of its kind in the history of the bank since establishment in 1964. This boost in capital will ensure that the Bank will maintain a sterling AAA rating positioning it as one of the highest ranked development agency.

Obviously, the capital increase will contribute an important part to realize the Bank’s top five priorities also referred to as the ‘High Five’. Specifically, President Adesina stressed that this increase will help the Bank finance energy, climate, and agricultural projects, as well as support infrastructure needed for the success of a continental free-trade zone and fast track delivery of the Sustainable Development Goals and the African Union’s 2063 Agenda. It is expected that, with this increase, 105 million people will have access to new or improved electricity connections; 244 million people will benefit from improvements in agriculture; 15 million people will benefit from investee projects; 252 million people will benefit from improved access to transport; and 128 million people will benefit from improved access to water and sanitation. These are against 16 million people connected to electricity, 70 million people provided with agricultural technologies to boost food security; 9 million people given access to finance through private sector investee companies; 55 million people provided with improved access to transport services; and 31 million people with access to water and sanitation.

On a Press Conference, he qualified this as “a joyful day for Africa, a historic day, » and underlined that « this will give us greater stability for the future. » As at today, the AfDB’s shareholders are Africa’s 54 nations and 26 non-African donor countries.