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The African Development Bank
Bank
Group (AfDB) or Banque Africaine de Développement (BAD) is a multilateral development finance institution. The AfDB was founded in 1964 and comprises three entities: The African Development Bank, the African Development Fund and the Nigeria
Nigeria
Trust Fund. The AfDB’s mission is to fight poverty and improve living conditions on the continent through promoting the investment of public and private capital in projects and programs that are likely to contribute to the economic and social development of the region.[1] The AfDB is a financial provider to African governments and private companies investing in the regional member countries (RMC). While it was originally headquartered in Abidjan, Côte d'Ivoire, the bank's headquarters moved to Tunis, Tunisia
Tunisia
in 2003, due to the Ivorian civil war; before returning in September 2014.[2]

Contents

1 History 2 Group entities

2.1 African Development Fund 2.2 Nigeria
Nigeria
Trust Fund

3 Management and control 4 Unit of Account 5 Functions 6 Status 7 Recent trends and directions 8 Prospects 9 African Development Bank
Bank
annual conferences 10 Membership 11 List of 20 Largest Countries by Voting Powers 12 United Nations
United Nations
Development Business 13 See also 14 References 15 External links

History[edit] Following the end of the colonial period in Africa, a growing desire for more unity within the continent led to the establishment of two draft charters, one for the establishment of the Organisation of African Unity (established in 1963, later replaced by the African Union), and for a regional development bank. A draft accord was submitted to top African officials, then to African Ministers, before being cosigned by twenty-three African governments on August 4th 1963, in the form of an agreement establishing the African Development Bank. The agreement came into force on 10 September 1964. Although established officially in under the auspices of the Economic Commission for Africa, the AfDB began operation in 1966. Although originally only African countries were able to join the bank, since 1982 it has allowed the entry of non-African countries as well. During its forty years of operations, AfDB has financed 2,885 operations, for a total of $47.5 billion. In 2003, it received an AAA rating from the major financial rating agencies and had a capital of $32.043 billion. Group entities[edit] The African Development Bank
Bank
Group has two other entities: the African Development Fund (ADF) and the Nigeria
Nigeria
Trust Fund (NTF). African Development Fund[edit] Established in 1972, the African Development Fund started operations in 1974."The African Development Fund" United Nations
United Nations
Convention to Combat Desertification (UNCCD) 2004], no longer available (2006) It provides development finance on concessional terms to low-income RMCs which are unable to borrow on the non-concessional terms of the AfDB. In harmony with its lending strategy, poverty reduction is the main aim of ADF activities. Twenty-four non-African countries along with the AfDB constitute its current membership. The largest ADF shareholder is the United Kingdom, with approximately 14% of the total working shares followed by United States
United States
with approximately 6.5 percent of the total voting shares, followed by Japan
Japan
with approximately 5.4 percent. The Federal Reserve Bank of New York
Federal Reserve Bank of New York
was designated as the depositor bank for the fund according to telegraphs sent from the U.S. Embassy in Abidjan
Abidjan
in 1976.[3] The ADF’s general operations are decided by a Board of Directors, six of which are appointed by the non-African member states and six designated by the AfDB from among the bank's regional Executive Directors. The ADF’s sources are mainly contributions and periodic replacements by non-African member states. The fund is usually replenished every three years, unless member states decide otherwise. The total donations, at the end of 1996, amounted to $12.58 billion. The ADF lends at no interest rate, with an annual service charge of 0.75%, a commitment fee of 0.5%, and a 50-year repayment period including a 10-year grace period. The tenth United Kingdom
United Kingdom
replenishment of the ADF was in 2006.[4] Nigeria
Nigeria
Trust Fund[edit] The Nigeria
Nigeria
Trust Fund (NTF) was established in 1976 by the Nigerian government with an initial capital of $80 million. The NTF is aimed at assisting in the development efforts of the poorest AfDB members. The NTF uses its resources to provide financing for projects of national or regional importance which further the economic and social development of the low-income RMCs whose economic and social conditions require financing on non-conventional terms. In 1996, the NTF had a total resource base of $432 million. It lends at a 4% interest rate with a 25-year repayment period, including a five-year grace period.[5] Management and control[edit] The AfDB is controlled by a Board of Executive Directors, made up of representatives of its member countries. The voting power on the Board is split according to the size of each member's share, currently 60%-40% between African (or "regional") countries and “non-regional” member countries (“donors”). The largest African Development Bank
Bank
shareholder is Nigeria
Nigeria
with nearly 9 percent of the vote. All member countries of the AfDB are represented on the AfDB Board of Executive Directors. Dr. Akinwumi Ayodeji Adesina is the 8th elected [1] President of the African Development Bank
Bank
Group, having taken the oath of office on September 1, 2015. He chairs the Boards of both the African Development Bank
Bank
and the African Development Fund. Dr. Adesina served as Nigeria’s Minister of Agriculture and Rural Development from 2011 to 2015. Member governments are officially represented at the AfDB by their Minister of Finance, Planning or Cooperation who sits on the AfDB Board of Governors. The AfDB Governors meet once a year (at the Annual Meetings of the AfDB each May) to take major decisions about the institution’s leadership, strategic directions and governing bodies. The Governors typically appoint a representative from their country to serve in the offices of the AfDB’s Board of Executive Directors. Day-to-day decisions about which loans and grants should be approved and what policies should guide the AfDB’s work are taken by the Board of Executive Directors. Each member country is represented on the Board, but their voting power and influence differs depending on the amount of money they contribute to the AfDB. Unit of Account[edit]

ADB Unit of Account

ISO 4217

Code XUA

Number 965

Demographics

User(s) African Development Bank
Bank
Group (African Development Bank, African Development Fund, Nigeria
Nigeria
Trust Fund)

The African Development Bank
Bank
is using a Unit of Account which is registered as XUA as ISO 4217
ISO 4217
standard currency code. It is not exchanged directly by individuals, it is used for accounting between state members.[6] Functions[edit] The primary function of AfDB is making loans and equity investments for the socio-economic advancement of the RMC. Second, the bank provides technical assistance for development projects and programs. Third, it promotes investment of public and private capital for development. Fourth, the bank assists in organizing the development policies of RMCs. The AfDB is also required to give special attention to national and multinational projects which are needed to promote regional integration.[7] (i) Mobilizing financial resources from the Government or the foreign financial institutions with; (ii) A view to lending the money for development of specific sectors of the economy Status[edit] The ADB promotes economic development and social progress of its RMCs in Africa and the bank commits approximately 3 billion dollars annually to African countries. Its relatively small lending and tendency to follow in the footsteps of more prominent public institutions like the World
World
Bank, implies that the African Development Bank
Bank
has been receiving little interest from civil society organizations as well as academia. AfDB emphasizes the role of women along with education reforms, and lent its support to key initiatives such as debt alleviation for Heavily Indebted Poor Countries
Heavily Indebted Poor Countries
and the New Partnership for Africa's Development (NEPAD). The Bank
Bank
is currently based in Abidjan, Côte d'Ivoire
Côte d'Ivoire
again. It employs approximately 1,865 employees as of 2016, and has 80 members: 54 countries in Africa and 26 American, European, and Asian countries. Recent trends and directions[edit] One of emerging views, repeatedly cited by the AfDB’s Board of Directors and management, is that the AfDB should be more “selective” and “country-focused” in its operations. Though this policy has still to be clearly defined, it appears to be driving certain lending priorities. The infrastructure sector, including power supply, water and sanitation, transport and communications, has traditionally received the largest share of AfDB lending. This focus was re-affirmed in the AfDB’s 2003-2007 Strategic Plan, which identified infrastructure as a priority area for AfDB lending. In 2005, the AfDB approved 23 infrastructure projects for approximately $982 million, which totaled 40 percent of AfDB approvals that year. Given the increased attention to infrastructure development in Africa from donors and borrowers, it is likely that AfDB’s infrastructure lending will increase significantly in the coming years. In 2007, infrastructure operations accounted for approximately 60 percent of the bank's portfolio. Regional integration
Regional integration
infrastructure projects will be a key part of the AfDB’s future business. According to the AfDB’s 2005 Annual Report, regional economic blocs will make Africa “more competitive in the global market”, while transport and power interconnections between smaller African economies will help create larger markets in the continent. The AfDB’s member countries claim that AfDB, as a multilateral institution, is particularly suited to support regional integration projects. The AfDB has been designated the lead agency to facilitate "NEPAD infrastructure initiatives", which are regional integration projects led by African Regional Economic Communities (RECs). Additionally, the AfDB hosts the Infrastructure Consortium for Africa (ICA). The ICA was established by G8 countries to coordinate and encourage infrastructure development in Africa, focusing on regional infrastructure development in particular. The AfDB helps to prepare projects so they may obtain financing from others sources through an initiative called the Infrastructure Project Preparation Facility (IPPF). So even if the AfDB is not directly involved in financing a particular infrastructure project, it may have helped to make it possible. Another key area of concentration of the AfDB’s support of RMCs is the fight against HIV/AIDS. The AfDB has five policies towards securing Africa's future through health funding:

Institutional capacity building through assistance of policy/strategy formulation and implementation Human capital development to create an environment for the operation of national AIDS
AIDS
strategies through training and technical assistance support HIV/ AIDS
AIDS
multi-sectoral responses with emphasis on prevention and control interventions that include IEC (Information, Education and Communication), STI (sexually transmitted infections) control, VCT (voluntary counselling and testing), infrastructure support for the establishment of laboratories and blood transfusion facilities, and provision of equipment and supplies, including antiretroviral drugs Advocacy through participation in international and regional forums to raise political commitment and leadership towards a collaborative effort in the fight against the pandemic among RMCs and development partners Partnership development with a view of forging new alliances and revitalizing existing collaboration to cover critical development concerns such as HIV/ AIDS
AIDS
and to bringing partnership activities within the framework of the bank's vision[8]

To date, the bank's contribution in the fight against HIV/ AIDS
AIDS
is estimated at over UA 500 million. The bank is among the initiating partners of " AIDS
AIDS
in Africa – Scenarios for the future," a project whose outcome will enable governments and development partners alike to make strategic choices of current and future development paths and define their activities accordingly in order to face the challenges posed by HIV/AIDS. Energy projects are likely to become a more important area of the AfDB’s infrastructure work, given the lack of access to energy services across Africa and continued high oil prices affecting oil-importing countries. It is not clear if the AfDB’s role in the energy sector will prioritize energy projects for domestic consumption or for export, although the AfDB has supported both in the past. The AfDB is currently drafting an energy policy and developing its contribution to the G8-mandated Clean Energy Investment Framework. Although there is no official statement or consensus to this effect, AfDB lending for agriculture, (non-infrastructure) rural development and social sectors, such as health and education, is reportedly likely to decrease over the coming years. Prospects[edit] The AfDB's financial standing has been restored from the near collapse of 1995, but its operational credibility remains a work-in-progress. A working group convened by the Center for Global Development, an independent Washington think tank, released a report in September 2006 that offered six recommendations for Bank's president and board of directors on broad principles to guide the Bank’s renewal. The report contains six recommendations for management and shareholders as they address the urgent task of reforming Africa’s development bank. Prominent among the recommendations is a strong focus on infrastructure. While the AfDB’s lending had not expanded significantly in recent years, 2006 figures indicate that things may be changing. Between 2005 and 2006, the AfDB’s lending activities increased by more than 30 percent to $3.4 billion. Over the same period, private sector operations doubled in value. The AfDB has specific mandates from the New Partnership for Africa’s Development (NEPAD) and other international organizations to take the lead amongst financial and development institutions in areas such as infrastructure, regional integration, and banking and financial standards in Africa. These mandates have also increased the AfDB’s profile in the media. The increased international emphasis on Africa’s development needs in recent years (for example, surrounding the 2005 Gleneagles G8 Summit), and on the importance of infrastructure investment in Africa, has highlighted the role of the AfDB. Some research has indicated that a high percentage of respondents in African countries has a marked preference for additional aid from the African Development Bank, despite the fact its relatively low rating against most of the aid effectiveness criteria found to be important by donor recipients.[9] This suggests that donor recipients in Africa views on the ‘multilateral donor of choice’ are informed by additional aid effectiveness criteria that are not commonly identified or reported against, though exactly what those criteria have not been discussed. In general, whereas there has been progress at all levels with regard to democracy, growth and restoring the macro-economic balances in Africa over the past fifteen years, half of sub-Saharan Africa lives on under one dollar a day, and AIDS
AIDS
is threatening the social fabric of the continent. The studies conducted by various organizations (including the African Development Bank
Bank
and the World
World
Bank) show that, with the exception of northern and southern Africa, the United Nations Millennium Development Goals
Millennium Development Goals
(reducing by half the number of persons living in poverty and without access to potable water by 2015) will in most cases not be attained. Nevertheless, these same studies indicate that the majority of the African countries can make notable progress to these ends. African Development Bank
Bank
annual conferences[edit] African Development Bank's(AfDB) 4th annual conference outside Africa held in India
India
(Gandhinagar, Gujarat) in May 22-26th 2017 at an event inaugurated by India's Prime Minister Narendra Modi. Previous conferences outside Africa were in Spain, China, Portugal. Membership[edit]

  AfDB Beneficiary Countries   ADF Beneficiary Countries   AfDB and ADF Beneficiary Countries   Non-African Member Countries

AfDB Beneficiary Countries:

 Algeria  Botswana  Egypt  Equatorial Guinea  Gabon  Mauritius

 Morocco  Namibia  Seychelles  South Africa  Swaziland  Tunisia

ADF Beneficiary Countries:

 Angola  Benin  Burkina Faso  Burundi  Cameroon  Cape Verde  Central African Republic  Chad  Comoros  Democratic Republic of the Congo  Congo  Ivory Coast  Djibouti  Eritrea  Ethiopia  Gambia  Ghana  Guinea  Guinea-Bissau

 Kenya  Lesotho  Liberia  Madagascar  Malawi  Mali  Mauritania  Mozambique  Niger  Rwanda  São Tomé and Príncipe  Senegal  Sierra Leone  Somalia  South Sudan  Sudan  Tanzania  Togo  Uganda  Zambia

AfDB and ADF Beneficiary Countries:

 Nigeria  Zimbabwe

Note: All countries in the African Union
African Union
including Mauritania
Mauritania
but excluding the SADR are eligible for NTF benefits. Non-African Member Countries:

 Argentina  Austria  Belgium  Brazil  Canada  China  Denmark  Finland  France  Germany  India  Italy  Japan  Kuwait

 Luxembourg  Netherlands  Norway  Portugal  Saudi Arabia  South Korea  Spain  Sweden   Switzerland  Turkey  United Kingdom  United States

List of 20 Largest Countries by Voting Powers[edit] The following table are amounts for 20 largest countries by voting powers at the African Development Bank
Bank
as of December 2014.[10]

The 20 Largest Countries by Voting Powers at the African Development Bank

Rank Country Voting Powers (% of Total)

World 100.000

1  Nigeria 9.281

2  United States 6.563

3  Japan 5.494

4  Egypt 5.379

5  South Africa 4.871

6  Algeria 4.209

7  Germany 4.127

8  Canada 3.802

9  France 3.760

10 Côte d’Ivoire 3.687

11  Libya 3.683

12  Morocco 3.498

13  Italy 2.428

14  Ghana 2.137

15  Zimbabwe 2.052

16  United Kingdom 1.689

17  Ethiopia 1.587

18  Sweden 1.553

19   Switzerland 1.474

20  Kenya 1.430

United Nations
United Nations
Development Business[edit] The United Nations
United Nations
launched Development Business in 1978 with the support of the World Bank
World Bank
and many other major development banks from around the world. Today, Development Business is the primary publication for all major multilateral development banks including the African Development Bank, United Nations
United Nations
agencies, and several national governments, many of whom have made the publication of their tenders and contracts in Development Business mandatory.[11] See also[edit]

African Economic Outlook is published annually by the OECD Development Centre and the African Development Bank. African, Caribbean and Pacific Group of States Asian Development Bank Asian Infrastructure Investment Bank European Investment Bank Caribbean Development Bank CAF – Development Bank
Bank
of Latin America Islamic Development Bank

Africa portal Sustainable development portal

References[edit]

^ Retrieved on 2012, November 15 from Archived January 21, 2013, at the Wayback Machine. ^ "Flag-raising ceremony marks AfDB's return to its official headquarters in Côte d'Ivoire". AfDB. 8 September 2014. Retrieved 18 March 2015.  ^ "Unclassified wire to U.S.- Abidjan
Abidjan
Embassy". US Department of State. Retrieved April 22, 2013.  ^ "The African Development Bank: Tenth Replenishment of the African Development Fund, Order 2006" Statutory Instrument 2006 No. 2327, Government of the United Kingdom
United Kingdom
Archived May 2, 2007, at the Wayback Machine. ISBN 0-11-075060-8 ^ African Development Bank
Bank
Group, (2005), about us, Group entities Retrieved on 2005 from http://www.afdb.org/portal/page_pageid=313,165673&_dad=portal&_schema=PORTAL[permanent dead link] ^ "Amendment of ISO 4217
ISO 4217
on 07 april 2011" (PDF). Retrieved 14 June 2014.  ^ Bank
Bank
Information Centre, USA, (2005, July 27), African Development Bank
Bank
Retrieved on 2005 from, July 27, from "Archived copy". Archived from the original on 2006-05-01. Retrieved 2006-04-28.  ^ African Development Bank
Bank
Group,(2006), Topics, HIV/ AIDS
AIDS
from http://www.afdb.org/portal/page?_pageid=473,970125&_dad=portal&_schema=PORTAL Archived 2007-02-10 at the Wayback Machine. ^ Cecilie Wathne and Edward Hedger 2010. What does an effective multilateral donor look like? London: Overseas Development Institute ^ http://www.afdb.org/fileadmin/uploads/afdb/Documents/Boards-Documents/statement_of_voting_power_as_at_31_december_2014.pdf DISTRIBUTION OF VOTING POWER BY EXECUTIVE DIRECTOR STATEMENT OF VOTING POWER AS AT 31 DECEMBER 2014 ^ "Development Business". www.devbusiness.com. Retrieved 18 March 2018. 

External links[edit]

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Bank
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Bank
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Bank
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Bank
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Nigeria
Trust Fund Regional Development Banks: Stepping Out of the Shadows - The African Development Bank Past Presidents of the African Development Bank Building Africa's Development Bank: Six Recommendations for the AfDB and its Shareholders

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