African Development Bank
From Wikipedia, the free encyclopedia
Categories: International organizations of Africa | African Development | Economy of Africa | Multilateral development banks | Supranational banks | United Nations General Assembly observers
|
The African Development Bank (ADB) is a development bank established in 1964 with the intention of promoting economic and social development in Africa. It is a conglomeration of the African Development Bank (ADB), the African Development Fund (ADF), and the Nigeria Trust Fund (NTF). Forty years to date, the ADB Group has financed 2,885 operations, for a total of $47.5 billion. It concluded 2003 with a AAA rating from major financial agencies and with a capital of $32.043 billion. Moreover, it has placed an emphasis over the years on the role of women, education and structural reforms, and lent its support to key initiatives such as debt alleviation for Heavily Indebted Poor Countries (HIPC's) and the New Partnership for Africa's Development (NEPAD). It currently has 77 members: 53 countries in Africa and 24 American, European, and Asian countries.
HistoryImage:AfricanDevelopmentBankMap.png
ADB members in green, AFD members in blue, non-African members in red
In 1961, the Monrovian Conference took place in Monrovia, Liberia. Two draft charters were at the centre of discussion: the OAU (now the African Union) and the African Development Bank. A committee chaired by A. Romeo Horton (at the time President of the Central Bank of Liberia) visited with many African presidents as well as with Western leaders to present the idea of the African Development Bank. Another key figure in this step in the development of the ADB was Mamoun Beheiry, at the time Governor of the Central Bank of Sudan and later the first President of the African Development Bank. Although established officially in 1964 under the auspices of the Economic Commission for Africa, the ADB began operation in 1966 with its headquarters in Abidjan, Côte d'Ivoire. With the statute of a regional multilateral development bank, the African Development Bank engaged in promoting the economic development and social progress of its Regional Member Countries (RMCs) in Africa. In 2005, the amount of approved loans by ADB totalled 2.29 billions of UA - note indeed that ADB financial statements are expressed in UA, or Units of Account, whose value is defined as about 0.8887 grams of fine gold. As of 2001, 1 UA equals approximately US$ 1.28. FunctionThe ADB has four principal functions. The first is to make loans and equity investments for the economic and social advancement of the RMCs. Second, it is to provide technical assistance for the preparation and execution of development projects and programs. Third, the ADB is to promote investment of public and private capital for development purposes. Lastly, the ADB is to assist in coordinating development policies and plans of RMCs. The ADB is also required to give special attention to national and multinational projects and programs which promote regional integration.[1] Group EntitiesThe African Development Bank Group has two other entities: the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Established in 1972, the African Development Fund started operations in 1974.[2] It provides development finance on concessional terms to low-income RMCs which are unable to borrow on the non-concessional terms of the ADB. In harmony with its lending strategy, poverty reduction is the main aim of ADF activities. Twenty-four non-African countries along with the ADB constitute its current membership. 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 ADB 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 a service charge of 0.75% per annum, a commitment fee of 0.5%, and a 50-year repayment period including a 10-year grace period. The Tenth United Kingdom replenishment of the ADF was in 2006.[3] Concerning the Nigeria Trust Fund, the NTF was established in 1976 by the Nigerian Government with an initial capital of $80 million. The NTF function is to assist in the development efforts of the poorest ADB 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.[4] ADB Beneficiary Countries: ADF Beneficiary Countries:
ADB and ADF Beneficiary Countries: N.B. All countries in the African Union including Mauritania but excluding the SADR are eligible for NTF benefits. Morocco is also eligible though not a part of the African Union. AIDSOne of the areas of concentration of the ADB’s support of RMCs is the fight against HIV/AIDS. The ADB has five policies towards securing Africa's future through health funding:
|
