View
249
Download
0
Category
Preview:
Citation preview
8/14/2019 AfDB in brief.pdf
1/70
f Df r i c a n D e v e l o p m e n t B a n k G r o u p
r i e f
fDBin Brief
African Development Bank
8/14/2019 AfDB in brief.pdf
2/70
1
Table of Content
1. Presentation of the Bank Group (AfDB) Group
2. Bank Group historical overview, objectives,
membership and resources
3. Bank Group institutional & management structures
4. Bank Group operations, policies, terms, initiatives
and achievements
Annexes
2
3
9
19
51
8/14/2019 AfDB in brief.pdf
3/70
AfDB in Brief
Introduction
The African Development Bank (AfDB) Group is a regional
multilateral development finance institution, comprising three
distinct entities under one management: the African
Development Bank (AfDB), the parent institution, and two affi-
liates, the African Development Fund (ADF) and the Nigerian
Trust Fund, (NTF). The AfDB Group is Africas premier deve-
lopment finance institution. It is one of the five major global
multilateral development banks (MDBs). It is difficult to cover
all the activities and operations of an institution like the AfDB
in a single document. AfDB in Brief only presents the salient
points of the Bank Groups activities under three different sub-
headings and annexes:
8/14/2019 AfDB in brief.pdf
4/70
I. Bank Group historical overview, objectives,
membership and resources
A. Historical overview
AfDB: The African Development Bank was created on 4 August
1963 in Khartoum, Sudan, where 23 newly independent African
countries signed the Agreement establishing the institution. On
10 September 1964, the Agreement came into force when 20
member countries subscribed to 65% of the Banks capital
stock which then stood at US$ 250 million. The inaugural mee-
ting of the Board of Governors (mostly finance ministers) was
held from 4-7 November 1964 in Lagos, Nigeria. The Banks
headquarters was opened in Abidjan, Cte DIvoire, in March
1965. It commenced operations in July 1966 with ten staff
members. When the Bank was established, only independent
African countries were eligible to be shareholders. Thus, for 19
years up to 30 December 1982, the institution depended on
African countries for its capital resources.
ADF: The Agreement establishing the African Development
Fund was signed on 29 November 1972, by the African
Development Bank and 13 non-regional countries, referred to asState Participants. The Fund emerged as the solution to two
major constraints which became apparent after the Bank com-
menced operation: limited resources which the Bank could pro-
vide and the nature as well as terms of loans to the poorest of
the countries, especially for projects with long-term maturities or
non-financial returns such as roads, education and health.
NTF:The Nigeria Trust Fund was set up in 1976 by agreement
signed between the Government of the Federal Republic of
Nigeria and the Bank Group. The NTF became operational in
April 1976 following approval of the agreement establishing it by
the Board of Governors.
3
8/14/2019 AfDB in brief.pdf
5/70
B. Objectives
The overall objective of the AfDB Group is to support the eco-
nomic development and social progress of African countries
individually and collectively, by promoting investment of public
and private capital in projects and programs designed to redu-
ce poverty and improve living conditions. Combating poverty is
at the heart of the Banks efforts to assist the continent to attain
sustainable economic growth. The Bank Group therefore strives
to mobilize internal and external resources to promote invest-
ment and provide technical assistance to the Regional Member
Countries (RMCs). Additional resources are usually mobilized
through co-financing with bilateral and other multilateral deve-
lopment agencies as well as from the financial markets. The
Group also promotes international dialogue on development
issues concerning Africa. It supports policy reforms, capacity
building, knowledge sharing, studies and preparation of deve-
lopment projects.
Since 2006, the Bank Group places greater emphasis on the fol-
lowing strategic areas: Investing in infrastructure; deepening pri-
vate sector investment, supporting economic and governance
reforms; promoting higher education, technology and vocationaltraining; promoting regional integration. Through these core
investment areas the Bank Group provides support to fragile
states, low income countries, middle-income countries, agricul-
ture and rural development, social and human development,
environment and climate change, and gender issues.
C. Membership
At the end of December 2011, the Bank had 77 member coun-
tries, comprising 53 African or regional member countries
(RMCs) and 24 non-African or non-regional member countries
(NRMCs).
Initially, only independent African countries could become mem-
bers of the Bank. Due to growing demand for investments from
African countries and the Banks limited financial resources,
4
8/14/2019 AfDB in brief.pdf
6/70
membership was later opened to non-regional countries. The
admission of non-regional members in December 1982, provi-
ded the AfDB additional resources that enabled it to contribute
to the economic and social development of its RMCs through
low-interest loans. With a larger membership, the institution was
endowed with greater expertise, the credibility of its partners and
access to markets in its non-regional member countries. The
AfDB enjoys AAA ratings from the main international rating agen-
cies. The Bank however maintains its African character by virtue
of its geographical location and ownership structure. It is head-
quartered in Africa, its investment operations are exclusively in
Africa and its President is always an African.
African/Regional member countries
Algeria, Angola, Benin, Botswana, Burkina-Faso, Burundi,
Cameroon, Cape-Verde, Central African Republic, Chad,
Comoros, Congo, Democratic Republic of Congo, Cte dIvoire,
Djibouti, Egypt, Eritrea, Equatorial Guinea, Ethiopia, Gabon, The
Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho,
Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Mauritius,
Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao
Tome and Principe, Senegal, Seychelles, Sierra Leone, Somalia,South Africa, Sudan, Swaziland, Tanzania, Togo, Tunisia,
Uganda, Zambia and Zimbabwe.
Non-African/Non-regional member countries
Argentina, Austria, Belgium, Brazil, Canada, China, Denmark,Finland, France, Germany, India, Italy, Japan, Korea, Kuwait,
Netherlands, Norway, Portugal, Saudi Arabia, Spain, Sweden,
Switzerland, United Kingdom and United States of America.
To become an AfDB member, non-regional States must first
accede to ADF membership. Only one ADF member state, the
United Arab Emirates, is yet to accede to AfDB membership. At
the end of December 2011, the ADF comprised the AfDB and
all the 24 non-regional member of the AfDB plus the United Arab
Emirates, bringing the number to 25. South Africa is also a State
5
8/14/2019 AfDB in brief.pdf
7/70
Participant in ADF. Turkey whose membership was approved by
the Board of Governors in Maputo, Mozambique, in May 2008
is in the process of completing the requirements of state partici-
pation in the ADF.
AfDB non-regional members, or ADF State Participants, include
not only most of the developed industrial economies, notably 17
OECD countries, but also a number of OPEC countries as well
as some middle income South American and Asian countries
on the whole 14 countries from Europe, 4 from North and South
America, 4 from Asia and 3 from the Middle East. .
D. Resources
The sources of Bank Group resources vary according to the
three institutions as the conditions and uses of the funds also
vary. AfDB resources are made up of ordinary and special funds.
The ordinary resources include:
i. Capital subscriptions by member countries,
ii. Incomes generated from loan repayments
iii. Funds raised through borrowings in the international finan-
cial markets,iv. Other incomes received by the Bank e.g. through bilateral
and multilateral donors or incomes from investment
The AfDB is also authorized to establish or be entrusted with
Special funds, under Article 8 of the Agreement Establishing the
Bank. In conformity with these provisions the ADF and NTF wereestablished as the foremost special funds in 1972 and 1976.
Since then the Bank has established and manages several spe-
cial funds which are consistent with its purposes and functions.
The decision to open the Banks capital to non-African partici-
pation proved very positive, in terms of membership and capital
structure. As a result of the admission of non-regional members,
AfDBs authorized capital increased from about US$ 2.9 billion in
1982 to US$ 6.3 billion in 1983, and to US$ 22. 3 billion, follo-
wing a 200% Fourth General Capital Increase (GCI-IV) conclu-
ded in Cairo Egypt, in June 1987. A further 200 percent Sixth
6
8/14/2019 AfDB in brief.pdf
8/70
General Capital Increase (GCI-VI) concluded during the Annual
Board of Governors Meeting in Abidjan in May 2010 tripled the
Banks capital resources.
Consequently, at the end of December 2011, the AfDBs autho-
rized capital stood at UA 66.05 billion (USD 101.4 billion) while
the subscribed capital stood at UA 31.32 billion (USD 57.3 bil-
lion), of which the paid-up portion is UA 3.29 billion (USD 5.1 bil-
lion). Sixty per cent (60%) of the capital is subscribed by regio-
nal member countries and forty per cent (40%) by non-regional
member countries. The year-to-year dollar equivalent of the
authorized capital which is denominated in the Banks Unit of
Account (UA) depends on the annual rate of the UA, which in
December 2011 averaged USD 1.53527. The institution has
never recorded a loss and has consistently boosted its reserves.
Gross borrowings of the Bank as at the end of December 2011
amounted to UA 10.7 billion or USD 16.5 billion, while gross
reserves amounted to UA 2.6 billion or USD 3.4 billion
ADF Resources consist of: (i) subscription by State Participants
usually on a 3-year basis (ii) subscription by the Bank; (iii) funds
derived from operations accruing to the Fund (iv) other resources
received by the Fund. The bulk of the subscriptions successive3-yearly replenishments of the Fund were as follows:
7
Replenishments Years Amount Appx. (USD billion)
ADF-I 1976-1978 0.327
ADF-II 1979-1981 0.712
ADF-III 1982-1984 1.00ADF-IV 1985-1987 1.50
ADF-V 1988-1990 2.80
ADF-VI 1991-1993 3.42
ADF-VII 1996-1998 3.20
ADF-VIII 1999-2001 3.38
ADF-IX 2002-2004 3.50ADF-X 2005-2007 5.40
ADF XI 2008-2010 8.90
ADF XII 2011-2013 9.50
8/14/2019 AfDB in brief.pdf
9/70
8
ADF-XI (2008-2010), achieved a record replenishment of UA
5.8 billion, a 52 percent increase over ADF-X replenishment.
In 2010, the Fund secured UA 6.10 billion or a 10.6 percent
increase in State Participants contributions for the ADF-XII
replenishment. As at the end of December 2011, cumulative
ADF subscriptions and other resources amounted to UA 17.9
billion or USD 27.5 billion
NTF resources are wholly contributed by the Government of
Nigeria. The initial capital of USD 80.0 million was replenished
in 1981 with USD 71.0 million. By December 2001, NTF
resources had risen to about UA 425.4 million or USD 655.2
million. The Funds resources however stood at UA 156.7 mil-
lion or USD 241.3 million at the end of December 2011.
Originally established to come to an end after 30 years on 25
April 2006, the NTF was extended for a two-year period. The
AfDB Board approved a further 10 year extension of the NTF
on 15 May 2008.
8/14/2019 AfDB in brief.pdf
10/70
9
II. Bank Group institutional and management
structure
A. Institutional structure
i. Board of Governors
Each member country is represented on the Board by a
Governor and an Alternate whose tenure is determined by the
country he/she represents. It is the supreme organ of the
Bank. The position of Governor is usually held by Ministers of
Finance and/or Economy of member states. The Board of
Governors issues general directives concerning the operatio-
nal policies of the Bank. For ADF Board of Governors, each
State Participant is represented by one Governor while
Governors of the African Development Bank are ex-officio
Governors of the Fund.
ii. Board of Directors
The Board is made up of 20 Executive Directors, elected by
the Board of Governors for a period of 3 years renewable
once. Regional members have 13 Directors while the remai-ning seven come from non-regional states. The Boards
(AfDB/ADF) exercise all the powers of the Bank except those
expressly reserved for the Board of Governors by the
Agreement establishing the Bank. The Boards are responsible
for the conduct of the general operations of the Bank. With
regard to the ADF Board comprising 14 Directors, seven areappointed by the State Participants, while the other seven are
designated by the African Development Bank from among the
regional Executive directors of the Bank.
Under the Banks organization chart the following three (3)
Departments--Operations Evaluations, Compliance Review &
Mediation Unit, Administrative Tribunal--come under the direct
control of the Board of Directors while the President exercises
oversight functions.
8/14/2019 AfDB in brief.pdf
11/70
10
iii. President
Elected by the Board of Governors, on the recommendation
of the Board of Directors, the President is the Chief Executive
and conducts the business of the Bank. The President is also
the legal representative of the Bank. He is elected for a term
of five years, renewable once. Since its inception the Bank
Group has had the following six (6) Presidents and one (1)
caretaker President:
Mamoun Beheiry (Sudan) 1964-1970
Abdelwahab Labidi (Tunisia) 1970-1976
Kwame Donkor Fordwor (Ghana) 1976-1979
Godwin Gondwe ( Malawi) Caretaker capacity - 1979-
1980
Babacar Ndiaye (Senegal) - 1985-1995
Omar Kabbaj (Morocco) 1995-2005
Donald Kaberuka (Rwanda) - 2005 -
The AfDB President is also the President of the Fund as well
as the Chairman of the Board of Directors. He determines the
organizational structure, functions and responsibilities as well
as the regional and country representation offices. He pro-poses to the Board of Directors the appointment of the Vice-
Presidents who assist him in the day-to-day management of
the Bank Group. Under a new structure effective from July 1,
2006 replacing the structure in place since January 1, 2002,
the AfDB has, besides the Presidency, 8 Vice-Presidencies
including the Offices of the Chief Operating Officer, the ChiefEconomist and the Secretary General, 43 Departments, 83
divisions and 13 Units.
B. Organizational and management structure
Office of the President
In the day-to-day assignments of the Presidency the following
offices, departments and units report to it directly or through
the Office of the Chief Operating Officer:
8/14/2019 AfDB in brief.pdf
12/70
Vice President/ Chief Operating Officer (VP/COO)
o Director in charge, Office of the Chief Operating
Officer (COO)
o Results and Quality Assurance (ORQR)
Results (ORQR.1)
Quality Assurance (ORQR.2)
Compliance and Safeguards (ORQR.3)
Gender and Social Development Monitoring
(ORQR.4)
o Operations Committee Secretariat (OPSC)
o Performance Monitoring Group (COPM)
o Programming and Budget Unit (COBS)
o Ethics Office (COEO)
Directly under the presidency
o Office of the President (SAPR)
o Operations Evaluation Department (OPEV)
Project and Programme Evaluation (OPEV.1)
Higher Level Evaluation ( OPEV.2)
o Compliance Review & Meditation Unit (CRMU)
o Security (SECU)o Administrative Tribunal(TRIB)
o Ombudsman (OMBU)
o External Relations & Communication Unit (ERCU)
By virtue of their work the following five horizontal
Departments also report directly to the President:
o Office of the Auditor General Department (OAGL)
Internal Audit Division (OAGL.1)
o General Counsel & Legal Services Department (GECL)
Public Sector Operations, Policy and Governance
Division(GECL.1)
Private Sector Division(GECL.2)
Finance Division (GECL.3)
Administrative & Financial Affairs Division (GECL.4)
11
8/14/2019 AfDB in brief.pdf
13/70
o Integrity and Anti-corruption Office (IACD)
o Strategy Office (STRG)
The Auditor Generals Department assists at all levels of the
Banks management including the Board of Directors by pro-
viding periodic, independent audits of financial, operational
and administrative activities. The General Counsel is respon-
sible for advising and assisting the Board of Governors, the
Board of Directors and the President of the Bank on all legal
matters and the implications of official actions taken and poli-
cies adopted. The Legal Services Department further advises
all organizational Departments and Units on the legal aspects
of financial, operational and administrative matters and pro-
poses suitable legal solutions. It participates in loan negotia-
tions and preparation of all agreements and contracts.
Office of the Vice-president and Secretary General (SEGL)
Since 27 March 2012, the Office of the Secretary General has
been upgraded to the rank of vice presidency, comprising the
following two divisions. (March 2012)
Board Proceedings & Documents Division (SEGL.1) Protocol & Elected Officers Services Division (SEGL.2)
The Office of the Secretary General is the Secretariat of the
Boards of Directors and Governors. It prepares records and
monitors their meetings, including the Annual General
Meetings (AGM) and the ADF replenishment meetings. TheOffice also manages protocol services and relations with the
host country. It coordinates the Banks information disclosure
policy.
Office of the Chief Economist (ECON)
The Office of the Chief Economist, (ECON) comprises
Development Research, the Statistics Departments and the
African Development Institute:
12
8/14/2019 AfDB in brief.pdf
14/70
o Development Research Department (EDRE)
Research Division (EDRE.1)
Networking & Research Partnerships Division
(EDRE.2)
o Statistics Department (ESTA)
Economic & Social Statistics Division (ESTA.1)
Statistical Capacity Building Division (ESTA.2)
o African Development Institute (EADI)
Program Design and Development (EADI.1)
Development Management and Policy Dialogue
(EADI.2)
The Knowledge and Information Services (EADI.3)
ECON is ranked as a vice-presidency. It has the responsibility
of: (i) conducting quality research to generate a deeper unders-
tanding of the development challenges facing Africa; (ii)develo-
ping an efficient mechanism for sharing and using knowledge
to enhance the Banks operations and programs; (iii) generating
and maintaining relevant databases to monitor and evaluate the
Banks development effectiveness;(iv) creating and leveraging
resources to support the generation, dissemination, and use of
knowledge in Bank policies and programs and RMCs. (v) orga-
nizing development capacity building through training. Throughthe knowledge operations of ECON, the Bank aspires to beco-
me a strong voice for Africa on development challenges.
Vice Presidency Finance (FNVP)
FNVP comprises of the following 3 Departments and Units:o Financial Management Department ( FFMA)
Asset & Liability Management Division (FFMA.1)
Credit Risk Management Division (FFMA.2)
Treasury Risk Management Division (FFMA.3)
o Treasury Department (FRTY)
Capital Markets & Financial Operations Division
(FTRY.1)
Cash & Current Accounts Division (FTRY.2)
Investments and Trading Room Division (FTRY.3)
Financial Technical Services Division (FTRY.4)
13
8/14/2019 AfDB in brief.pdf
15/70
o Financial Control Department (FFCO)
Internal Control Unit (ICU)
Accounts & Special Funds Division (FFCO.1)
Administrative Expenses Division (FFCO.2)
Loan Disbursements Division (FFCO.3)
Loan Accounting Division (FFCO.4)
o Staff Retirement Plan (SRPU)
FNVP is responsible for managing the financial resources of
the Bank Group through sound practices in borrowings,
investments and payments. It is also responsible for develo-
ping medium and long-term policies, guidelines and plans
including the staff retirement plan.
Vice Presidency Corporate Services (CSVP)
o Human Resources Department (CHRM)
Staff Planning & Recruitment Division (CHRM.1)
Compensation, Benefits & Compliance Division
(CHRM.2)
Staff Training & Development Division (CHRM.3)
Employee Health & Welfare Division (CHRM.4)
o General Services Department (CGSP) Operations & Maintenance Division (CGSP.1)
Corporate Procurement Division (CGSP.2)
Support Services Division (CGSP.3)
o Information Management Department (CIMM)
Applications Development & Enhancement Division
CIMM.1) Infrastructure & Telecommunications
Division(CIMM.2)
Client Technology Services Division (CIMM.3)
o Language Services Department (CLSD)
English Translation Division (CLSD.1)
French Translation Division (CLSD.2)
Interpretation Division (CLSD.3)
o Official Representation of Abidjan Head Office (ROSA)
14
8/14/2019 AfDB in brief.pdf
16/70
CSVP formulates and implements personnel and human
resources policies, promoting good management and staff
relations. It provides health services and manages Bank pro-
perty, procurements, supplies and travels etc. It manages
the Banks IT programmes. It is responsible for translating
Bank documents into English or French, providing interpre-
tation. It provides representation service links between the
Statutory Headquarters, Abidjan and the Temporary
Relocation Agency, Tunis.
Vice-Presidencies in-charge of operations
Three (3) vice-presidencies are in charge of Bank Group pro-
ject and programme operations as follows :
Operations I - Country & regional programmes & policy
(ORVP)
Operations II - Sector operations (OSVP)
Operations III - Infrastructure, private sector & regional
integration (OIVP)
i) Vice-Presidency, Operations I: Country & Regional
Programs & Policy (ORVP)
Comprises 9 Country, Regional and Policy Departments, as
well as 29 Regional and Country Offices including Abidjan as
at the end of March 2012.
o Country/regional department - West 1 (ORWA) ORWA countries : Benin, Burkina Faso, Cte
dIvoire, Ghana, Niger, and Nigeria
ORWA Field Offices: Ghana, Nigeria, Burkina Faso
o Country/regional department- West 2 (ORWB)
ORWB countries: Cape Verde, Gambia, Guinea,
Guinea-Bissau, Liberia, Mali, Sao Tome & Principe,
Senegal, and Sierra Leone.
ORWB field offices: Guinea-Bissau, Liberia,
Sierra Leone, Sao Tome & Principe, Senegal, Mali
15
8/14/2019 AfDB in brief.pdf
17/70
16
o Country/regional department - East 1 (OREA)
OREA countries: Burundi, Kenya, Rwanda,
Seychelles, Tanzania and Uganda
OREA field offices: Burundi, Kenya*, Rwanda,
Tanzania, Uganda
*Regional Resource Center
o Country/regional department- East 2 (OREB)
OREB countries covered : Djibouti, Comoros,
Eritrea, Ethiopia, Somalia , South Sudan, Sudan
OREB field offices: Sudan , Ethiopia
o Country/regional department- South 1 (ORSA)
ORSA countries : Lesotho, Namibia, South Africa,
Swaziland and Zimbabwe
ORSA field offices: South Africa*, Zimbabwe
*Regional Resource Center
o Country/regional departments - South 2 (ORSB)
ORSB countries: Angola, Madagascar, Malawi,
Mauritius, Mozambique and Zambia
ORSB field offices: Angola, Madagascar, Malawi,
Mozambique, Zambia
o Country/regional department- Center (ORCE)
ORCE countries: Cameroon, Central African
Republic, Chad, Congo Democratic Republic,
Republic of Congo, Equatorial Guinea, and Gabon.
ORCE field offices: Cameroon, Chad, DR Congo,Gabon,
o Country/regional department - North 1 (ORNA)
ORNA countries : Egypt, Libya, and Tunisia
ORNA field office(s): Egypt
o Country/regional department - North 2 (ORNB)
ORNA countries: Algeria, Mauritania and Morocco.
ORNB field office(s): Algeria and Morocco
8/14/2019 AfDB in brief.pdf
18/70
o Partnership & cooperation unit (ORRU)
o Resource mobilization unit (ORMU)
ii) Vice-Presidency, Operations II: Sector Operations
(OSVP)
o Agriculture & agro-industry department (OSAN)
Agriculture 1 division (OSAN.1)
Agriculture 2 division (OSAN.2)
Agriculture 3 division (OSAN.3)
Natural resources & environmental management
division(OSAN.4)
o Human development department (OSHD)
Poverty reduction and social protection division
(OSHD.1)
Education, science & technology division(OSHD2)
Health division (OSHD.3)
o Governance, economic& financial management
dept.(OSGE)
Governance division (OSGE.1)
Economic & financial management division(OSGE.2)
o Fragile states unit (OSFU)
iii) Vice-Presidency, Operations III: Infrastructure,
Private Sector & Regional Integration (OIVP)
This Vice-Presidency covers a number of core sector opera-
tional initiatives of the Bank Group:
o Energy, environment and climate change department
(ONEC)
Energy division 1 ( ONEC.1)
Energy division (ONEC.2)
Environment & climate change division (ONEC.3)
17
8/14/2019 AfDB in brief.pdf
19/70
o Transport and ICT department (OITC)
Transport division 1(OITC.1)
Transport division 2 (OITC.2)
ICT4D (Vacant)
o Private sector department (OPSM)
Operations support division (OPSM.1)
Industries &services division (OPSM.2)
Infrastructure finance division (OPSM.3)
Financial institutions division (OPSM.4)
Portfolio management division(OPSM.5)
o Water & sanitation department (OWAS)
Water & sanitation division 1 (OWAS.1)
Water & sanitation division 2 (OWAS.2)
African water facility unit ( AWTF)
o NEPAD, regional integration & trade department (ONRI)
NEPAD division (ONRI.1)
Regional integration & trade division (ONRI.2)
Infrastructure consortium of Africa (ICA)
C. Staff strength
The Bank Group's total regular staff as at 31st December
2011 was 1,902: comprising 1,213 Professionals (PL) and
689 regular General Services staff (GS). In terms of gender,
28% of PL staff and 55% of GS staff are female. In 2011 the
Bank recruited 29 local staff for the field offices bringing theirtotal number to 315.
18
8/14/2019 AfDB in brief.pdf
20/70
III. Bank Group operations, policies, initiatives &
achievements
A. Lending instruments
In the 1960s and 1970s, Bank Group operations were orien-
ted almost exclusively to project lending, which involves
investment in identifiable sector activities. Since 1980, in
response to changing economic circumstances of regional
member countries, the Bank Group has greatly diversified its
lending, making use of several different lending instruments.
The instruments are as follows:
i) Project loans: Investments aimed at creating specific
productive assets or increasing identifiable outputs;
ii) Lines of credit: Funds channeled through national or
sub-regional development finance institutions aimed at
financing a number of specific projects, most frequently
from small and medium-scale enterprises;
iii) Sector investment and rehabilitation loans investments
aimed at strengthening or rehabilitating sector specific
planning, production or marketing capabilities; often
used to finance imports of equipment or inputs for asector;
iv) Sector adjustment loans: Credits aimed at supporting
policy changes or institutional reforms in a specific sector;
v) Structural adjustment loans: Credits aimed at fostering
specific macro-economic policy reform;
vi) Technical assistance operations: Loans or grants thatprovide expertise aimed at increasing capabilities of
regional or national institutions that finance studies nee-
ded for project preparation.
The first three lending instruments are referred to, collective-
ly, as project or programme lending. The designation poli-
cy based lending (PBL) applies to the fourth and fifth cate-
gories of sectoral and structural adjustment lending.
Technical assistance operations are financed only by the
ADF through the Technical Assistance Fund (TAF).
19
8/14/2019 AfDB in brief.pdf
21/70
v) Budget support and country system instruments
Over the past few years the Bank has increased its use of a
new lending framework for the projects it finances. Budget
support is a framework where the Bank generally provides
funds to the countrys ministry of finance (or equivalent) and
for general public finance budget spending covering the pro-
ject. In doing so the Bank implements the project through
the country systems approach which would rely solely on
a borrower governments systems (e.g. a countrys relevant
national, sub-national, or sectoral implementing institutions
and applicable laws, regulations, rules, procedures, and
track records) rather than the Banks own safeguard imple-
mentation policies and procedures for project implementa-
tion. Such a framework has produced positive results in
terms of quick disbursements under certain conditions
clearly reviewed during appraisal and approved by the
Board even though the country systems approach often
raises several significant good governance concerns that
the Bank has to monitor.
B. Project cycle
The various stages from country programming to project
completion and post evaluation are known collectively as
AfDB Group's project cycle.
20
Country
Partnership
Strategy
Preparation
Appraisal/Approval
Implementation
Evaluation
ABDs
project
Cycle
8/14/2019 AfDB in brief.pdf
22/70
8/14/2019 AfDB in brief.pdf
23/70
22
iv. Loan negotiation
During negotiations, agreement should be reached on the fol-
lowing: a) Objectives and description of the project, studies or
programmes; b) loan amount in foreign and local costs of the
project and the financing plan; c) a tentative list of goods and
services to be procured; d)the schedule of execution and
expenditure; e) the disbursement methods selected by the
borrower; f) the tentative schedule of disbursements including
precise information on account numbers and corresponden-
ce banks; g) the procurement methods and dates of bidding
announcements; h) precise information on the executing
agency and the project implementation unit; i) proposed rea-
listic date for loan signature and deadlines for first and last dis-
bursements; j) for co-financed projects, respective financing
plans, cross-effectiveness and other miscellaneous informa-
tion.
v. Board approval
After negotiations with the government, the loan proposal is
submitted to AfDB Board of Directors for approval.
vi. Loan agreements
The loan takes effect once certain agreed conditions are met.
The following are some of the standard conditions that prece-
de disbursements: a) designate authorized signatories for the
loan resources; b) present a legal opinion; c) submit theinvestment schedule; d) present a list of goods and services
to be procured; e) open and maintain a special project
account; f) establish a project implementation unit; g) any
other condition approved during negotiations.
vii. Loan effectiveness
The loan takes effect once certain conditions agreed to pre-
cedent to first disbursement are met. This is also known as
loan effectiveness. In addition to other conditions which may
8/14/2019 AfDB in brief.pdf
24/70
23
be fulfilled later, the following are some of the standard condi-
tions: a) designate authorized signatories for the loan
resources; b) present a legal opinion; c) submit the investment
schedule; d) present a list of goods and services to be procu-
red; e) open and maintain a special project account; f) esta-
blish a project implementation unit; g) any other condition
agreed during negotiations.
viii. Implementation
Project implementation starts from the moment the project is
declared effective. AfDB Group projects are implemented by
the executing agency according to the agreed schedule and
procedures. The supervision of implementation, however,
enables the Bank Group to make sure the physical realization
of the project is progressing smoothly and in accordance with
the implementation schedule and details. Borrowing countries
are generally advised and encouraged to complete these acti-
vities prior to loan negotiation and loan signature to minimize
delays in project implementation.
ix. Post evaluation
Generally, the Banks Evaluation Department (OPEV) is res-
ponsible for determining whether the objectives of Banks pro-
jects and programs are being met. The key performance indi-
cators used in evaluating the success of projects and pro-
grams are developed around the following: i) the relevance
and achievement of objectives at project appraisal; ii) the bor-rowers implementation performance; iii) adherence to project
cycle timeframe, the performance and role of the Bank; iv) ins-
titutional development performance of the project; and v) the
sustainability of project or program results.
8/14/2019 AfDB in brief.pdf
25/70
24
C. Bank Group procurement, disbursements
and fiduciary services
A major aspect of Bank Group operations involves effective
procurement of goods and services as well as timely disbur-
sement through efficient guidelines and procedures develo-
ped and implemented by the Banks Procurement and
Fiduciary Services Department.
This Department has two Divisions, one in charge of
Procurements and the other in charge of Fiduciary services.
The Department determines, among other things, the eligibili-
ty and origin of goods and services, supervises the packaging
of contracts, monitors the process and mode of bidding and
advises on refinancing processes.
Bank Group disbursements are generally made according to
one or more of the following methods agreed upon during
negotiations:
i. Reimbursement method under which the Bank reim-
burses payments made by the borrower for certain goods
and services.ii. Revolving Fund method under which the Bank may make
renewable advance payments from which the borrower
may make payments for certain items on the approved list
of categories of expenditure.
iii. Guarantee of Letters of Credit method. The Bank does
not itself issue Letters of Credit. It, however, issues gua-rantees to reimburse amounts due under letters of credit
opened in favour of suppliers at the request of a borrower.
iv. Direct payment to suppliers or contractors involved in a
project.
With regard to procurements, it is the policy of the Bank
Group that in all cases of procurement, a system of competi-
tive bidding be used. Procurement of goods and services
under the Bank Groups loans is generally made through inter-
national competitive bidding, which requires advertisement to
8/14/2019 AfDB in brief.pdf
26/70
25
be made within and outside the borrower country as well as
notification to the international community. Subject to the
Banks prior approval other forms of procurement would be
used whenever it can be established that this is done with due
regard for economy and efficiency in the execution of the pro-
ject.
The Procurement and Fiduciary Services Department is
consequently at the epicenter of the Banks benchmark image
in matters of financial good governance and operational
accountability. In all cases, Bank Group operations follow pro-
ject cycle activities outlined earlier from project initiations,
through preparation, appraisal and approval to implementa-
tion where departments like Procurement and Fiduciary
Services are required to ensure that the projects are executed
with due regard for economy, efficiency and good financial
management procedures.
D. AfDBs promotion of due process, integrity
and anti-corruption measures in Africa
Accountability, responsibility, system control, respect of due
processes and anti-corruption procedures have made AfDB acredible and well managed financial institution in Africa. These
are watch words in the Banks efforts to ensure good gover-
nance in its operations within the Bank and in its Regional
Member Countries. As the Bank fine-tuned its organizational
structure in April 2010, it separated the Banks investigative
capacity from its audit function, thus upgrading the Integrityand Anti-Corruption Division established in November 2005,
to an independent department reporting directly to the Banks
President and the Board of Directors. This has strengthened
the integrity function in the context of its fast-growing soverei-
gn and non-sovereign operations. This has also helped to
promote tighter adherence to the highest standards of corpo-
rate governance and integrity both within the Bank itself and
in the execution of Bank projects.
8/14/2019 AfDB in brief.pdf
27/70
26
The Integrity and Anti-Corruption Department (IACD) has thus
become the centre piece of the Banks effort to improve the
continent's investment climate and reduce the risk of prohibi-
ted practices such as fraud and corruption in the Bank and
Bank-financed projects. The IACD investigates allegations of
prohibited practices such as fraud and corruption in Bank
Group activities and related staff misconduct. It also assists
regional member countries to detect and deter fraud and cor-
ruption in Bank Group activities. Through internal seminars,
workshops and capacity building programmes IACD has
created anti-corruption and fraud awareness and security
measures among Bank staff.
E. Terms of AfDB Group loans
AfDB
Interest.
Commitment charge
on disbursement
balance
Repayment period
Provides non-concessionary loans that
carry financial charges that reflect the
direct market cost of funds. Variable andreviewed every six months by the Board
(Private Sector loans may carry other spe-
cific conditions)
1%
20 years including a grace period of 5
years maximum
ADF
Interest
Service charge
Commitment fee
Repayment period
TA loans
Group's main concessionary window
No interest rate
0.75% per annum on outstanding balance
0.50% per annum on undisbursed amount
50 years including a 10 years grace period
50 years including a 10-year grace period
which can be 45 years if study does not
lead to a bankable project;
NTF
Interest
Commitment charge
Repayment period
Terms and conditions are mid-way bet-
ween those of the AfDB and ADF
4%
0.75%
15-25 years maximum including a 5- year
period
8/14/2019 AfDB in brief.pdf
28/70
F. Bank Group resource allocation by country categories
Allocations of Bank Group resources for country operations
consider the following conditions:
The volume of resources at the disposal of each of the
three affiliate institutions.
An interplay of priorities outlined in the countrys develop-
ment plan, Bank s Country Strategy Paper and the coun-
trys absorptive capacity.
The countrys special geographic and political situation
e.g. for land-locked countries, fragile states , post-conflict
states, emergency situations
Level of indebtedness e.g. HIPC countries.
Country category based on GNP per capita income and
debt servicing capacity.
The AfDB is the Banks non-concessionary lending win-
dow which supports development activities mainly in 13
middle income countries with GNP per capita above
US$990 classified under Category C countries as well as
2 blend countries, classified under category B countries,
which also have access to ADF resources for project and
program financing.
Category C - Fifteen (15) countries eligible for AfDB
resources only:
Algeria, Angola, Botswana, Cape verde, Egypt, Equatorial
Guinea, Gabon, Libya*, Mauritius, Morocco, Namibia,Seychelles, South Africa, Swaziland, Tunisia.
Category B - One country eligible for a blend of AfDB and
ADF resources:
Nigeria.
The ADFs main objective is to reduce poverty by providing
low-income RMCs with concessionary loans and grants for
projects and programs, and with technical assistance for stu-
27
8/14/2019 AfDB in brief.pdf
29/70
28
dies and capacity-building activities. The resources of the
Fund are largely devoted to the 38 low-income member coun-
tries or Category A countries which have GNP per capita
below US$ 785 and generally, do not qualify for the AfDB's
non-concessionary resources. A big part of ADF operations
consists of grants provided by the Technical Assistance Fund
to finance feasibility Studies and institutional capacity building.
Category A - Thirty seven (37) countries eligible for ADF
resources only:
Benin, Burkina Faso, Burundi, Cameroon, Central Africa
Republic, Chad, Comoros, Congo, Congo Democratic
Republic, Cte dIvoire, Djibouti, Eritrea, Ethiopia, Gambia,
Ghana, Guinea, Guinea Bissau, Kenya, Lesotho, Liberia,
Madagascar, Malawi , Mali, Mauritania, Mozambique, Niger,
Rwanda, Senegal, Sierra Leone, Somalia, Sudan, Tanzania,
Togo, Uganda, Zambia, Zimbabwe.
F. Bank Group cumulative loan and grant approvals by
institutional window
Between 1967 and 2011, the Bank Group approved 3,639loans and grants, worth UA 60.1 billion or USD 92.4 billion. Of
the cumulative approvals, the AfDB window accounted for UA
35.4 billion (USD 54.1 billion) or 58.9 percent, the concessio-
nary ADF window for about UA 24.4 billion (USD 37.5 billion)
or 40.6 percent, and the NTF resources for about UA 0.3 bil-
lion (USD 0. 5 billion) or 0.5 percent respectively.
8/14/2019 AfDB in brief.pdf
30/70
29
G. Bank Group cumulative lending by sector as at the end
of December 2011
The Bank Groups prioritization of infrastructure projects conti-
nued in 2011. From 1967-2011, the main sectors of cumula-
tive Bank Group approvals were as follows:
58.9%
40.6%
0.5%Percentage
AfDB
ADF
NTF
Figure 1 Cumulative Bank Group Loan and Grant
Approvals by Institution, 1967-2011
Sector ComponentsIn BillionUA
In USDBillion
Percentage
Infrastructure(transportation, energy,water, sanitation andcommunications)
25.5 39.3 42.4
Multisector
(public sector manage-
ment, , structural adjust-ment , debt relief ,privatesector development,governance, anticorrup-tion, import facilitation,export promotion and ins-titutional support)
10.2 15.6 16.9
Finance
Development banking,commercial banking, non-
banking intermediation,microfinance
7.9 12.1 13.1
Agriculture &agro-industry
Food crosp, cash crops,fisheries, agro-industry,forestry, irrigation anddrainage
7.6 11.7 12.7
SocialEducation, health, popu-lation, gender equity,poverty reduction project
5.6 8.9 9.6
Industry
Manufacturing, tourism
mining, quarrying, SMEs 2.9 4.4 4.8
OthersMinor sectors urban plan-ning, emergency assis-tance etc
0.4 0.4 0.5
Total 60.1 92.4 100
Below is the figure of the above table of Bank Group cumulative loan and grant
approval by sector:
8/14/2019 AfDB in brief.pdf
31/70
30
H. Distribution of cumulative Bank Group approvals by
sub region
Distribution of cumulative Bank Group lending from 1967 to
2011 to all sub regions of Africa was as follows:
North Africa: UA 17. 5 billion (USD 26.9 billion)
or 28.5 percent,
West Africa: UA 13.3 billion (USD 20.4 billion)
or 21.6 percent,
Southern Africa: UA 11.5 billion (USD 17.7 billion)
or 18.7 percent,East Africa: UA 9. 2 billion (USD 14. 1 billion)
or 15.0 percent
Central Africa: UA 5.3 billion (USD 8.1 billion)
or 8.6 percent, and
Multiregional: UA 4. 7 billion (USD 7.2 billion)
or 7. 6 percent.
Source - Derived from 2010/11 AfDB Annual Report, 28 March 2011
I. Trend of Bank Group operations
North Africa accounts for nearly 50 percent of AfDB non
concessionary lending mainly for infrastructure and almost a
third of the Bank Group cumulative approvals. North Africa
and Southern Africa account for nearly 70 per cent of Bank
Group lending. On the other hand, West and East Africa sub-
42.4%
16.9%
13.1%
12.7%
9.6%
4.8% 0.5%
Percentage
Infrastructure
Multi-sector
Finance
Agric & agro-industry
Social
Industry
Others
Figure 2 Cumulative Bank Group Loan and Grant
Approvals by Sector, 1967-2011
8/14/2019 AfDB in brief.pdf
32/70
31
regions account for over 60 percent of ADF concessionary
resource lending. The Nigeria Trust Fund has committed
resources even in countries that traditionally do not depend
on non-concessionary resources except in Central Africa
region. Another trend in 2011 is the rapid rise of Bank Group
commitments to Southern Africa region, the increase of com-
mitments to multinational projects.
J. Bank Group financial sector products
The Bank offers the following range of financial products desi-
gned to meet the needs of various clients:
Loan products through an increased menu of currencies
including the US Dollar, Euro, Yen, Pound Sterling and the
Rand.
Choice of interest rates including fixed, floating and
variable interest rates.
Risk management products including currency swaps,
caps and collars on interest rate swaps as well as com-
modity hedges.
Guarantees including full guarantees, partial credit and
partial risk guarantees. Equity participation through ordinary stocks, redeemable
preferred stocks or debentures.
Other financial services including loan syndication and
advisory services.
K. Financial management achievements
i. Asset and liability management
Balance sheet transformation initiated in 1997 as part of
Bank-wide financial reforms continues to be implemented.
The objective is to further reduce the sensitivity of the Banks
key financial performance indicators to adverse fluctuations in
market interest rates and currency exchange rates.
ii. Credit risk management
8/14/2019 AfDB in brief.pdf
33/70
32
Country credit risk remains the largest single source of risk for
the Bank which continues to improve its country rating sys-
tem serving as a key input into the determination of the Banks
capital adequacy indicators, country exposure limits, and the
appropriate level of the general provisions. The Bank has
equally strengthened its in-house capacity to assess and
manage commercial risks linked to private sector lending acti-
vities and micro isolated (enclave) projects.
iii. Capital market operations
The Bank aims to access a wider range of markets and cur-
rencies and has for the first time tapped into both the Hong
Kong and the Singapore Dollar market. It has also used its
Euro Commercial Paper programme to enhance the manage-
ment of its liquidity portfolio. The Bank has furthermore esta-
blished a global debt issuance facility, which is a universal
debt documentation platform, designed to replace the Euro
Medium-Term Notes (EMTN) programme. This platform will
maximize the Banks financing flexibility and allow ready
access to both the Euromarkets and new domestic markets.
L. Selected Bank-led Initiatives
NEPAD Lead Agency
Infrastructure Project Preparation Facility
Infrastructure Consortium for Africa
Debt Relief under HIPC, MDRI, PCCF
Rural Water Supply & Sanitation Initiative African Water Facility
Multi-donor Water Partnership Programme
Connect African Initiative to bridge gaps in ICT
infrastructure
Making Finance Work in Africa
Fragile States Facility
The Eminent Speakers Programme
Annual Economic Conference
8/14/2019 AfDB in brief.pdf
34/70
8/14/2019 AfDB in brief.pdf
35/70
The African Water Facility (AWF)
AWF was established through the initiative of African
Ministers Council on Water (AMCOW) to mobilize and distri-
bute resources at the national and trans-boundary levels. The
Facilitys 3-year Operational Program has been updated for
2009-2011 and requires UA 125.6 million to implement. At
end-December 2010 a total of UA 102 million had been pled-
ged to AWF of which UA 10 million had been secured. AWF
has to date leveraged UA 215 million to finance water opera-
tions
The Multi-Donor Water Partnership Program (MDWPP)
was established by the Bank jointly with Netherlands, Danish,
and Canadian governments to operationalize the 2000
Integrated Water Resources Management (IWRM) policy.
N. Highlights of AfDB Fragile States Initiatives
In assisting African fragile states and states recovering from
social and political crisis, the Bank established a Fragile
States Facility (FSF) which provides support in the following
three (3) areas:
Supplemental investment for rehabilitation in the Banks
priority areas,
Arrears clearance. Generally, the Bank has continued to
participate in the mobilization of resources under enhan-
ced heavily indebted poor countries (HIPC) Initiative forover 33 eligible Regional Member Countries.
Targeted support for capacity building and technical
assistance.
FSF has enhanced ADF allocations to fragile states over and
above the country allocation provided under the performance-
based (PBA) mechanism. FSF is a rapid response instrument
which complements normal Bank Group assistance to the
fragile states. In fact in 2008, the Bank approved its first bud-
get support for Liberia under the newly established Fragile
34
8/14/2019 AfDB in brief.pdf
36/70
8/14/2019 AfDB in brief.pdf
37/70
P. AfDB championing Africas green growth and climate
change operations
The Bank established the Energy, Environment and Climate
Change Department in 2010 to align its core operations in
energy and climate change as a response to RMCs evolving
needs. Environment and Climate Change is one of the 3
Divisions in the Department. The Bank also established
Quality Assurance and Results Department (ORQR) to guide
all Bank operations departments through polices, seminars
and capacity building programmes, to ensure that Bank-
financed projects and programmes comply with globally
approved environmental and social safeguards. ORQR assists
the Banks Task Managers in mainstreaming climate change
through project cycle operations and dialogue in RMCs, while
undertaking advocacy assignment for resource mobilization.
In conducting environmental and social assessment, ORQR
assists the Banks operations departments to apply due dili-
gence and appropriate supervision to ensure compliance with
environmental and social safeguards with screening manuals,
and tools. It has developed appropriate regional training pro-
grammes to enable Bank staff and RMC officials to apply cli-
mate change safeguards, policies and guidelines.
AfDB is championing Africas position on climate change and
green growth within the international community. These inclu-
de all the MDB meetings including Cop 15 in Copenhagen
and Cop 16 in Cancun in 2010, Cop 17 in Durban, the Busan
high-level forum on global aid effectiveness in early 2012, andthe forthcoming Cop18 in Rio. The Bank is also championing
the establishment of an African Green Fund platform. Over the
past few years AfDB has projected climate change as a cor-
porate priority for Africas development. The Banks resolve to
mobilize and host climate change funds is to ensure effective
alignment of climate change investments to Africas own rea-
lities and provide African governments, de facto ownership of
climate change investment decisions. The Bank has consi-
derable on-the-ground comparative advantages and expe-
rience to host the African Green Fund. Some of these advan-
36
8/14/2019 AfDB in brief.pdf
38/70
tages include AfDBs strong infrastructure portfolio, which
makes adaptation and climate resilience operations possible
through transport, energy and water operations. Africa
requires about 40 percent of the global funds for enhanced
actions on mitigation, adaptation, enhanced technology deve-
lopment transfer and capacity enhancement. AfDB President
Donald Kaberuka has systematically called on the internatio-
nal community to support the establishment of an Africa
Green Fund, considering the Banks comparative advantages
to host the fund.
Crucial roles AfDB can play in the area of climate change and
green growth include:
Assisting RMCs in low-carbon growth initiatives including;
combating deforestation; the reduction of green gas emis-
sions such as methane released from landfills, and moderni-
zing of public transport systems e.g. using the guided bus
system. The Bank should also realize the climate-proofing of
all its projects. The Bank can assist in building greener cities.
Due to the environmental and health problems resulting
from rapid urbanization, the Bank should assist RMCs and
local councils through improving systems for the manage-ment of solid waste, reducing urban waste and the preserva-
tion of wetlands. The Bank should coordinate the sharing of
knowledge on green technologies that mitigate the risk of cli-
mate change. AfDB President was appointed by the UN
Secretary-General as member of the High-level Advisory
Group on Climate Change, thus positioning the AfDB as alead institution in Africa in the subject.
Q. Existing and potential Multi-donor Trust Funds
For private sector
Fund for African Private Sector Assistance (FAPA)
Making Finance Work for Africa
Africa Financing Partnership
African Guarantee Facility
Microfinance Multi-donor Trust Fund
37
8/14/2019 AfDB in brief.pdf
39/70
Population
Fund on Migration and Development
Water and sanitation sector initiatives
African Water Facility (AWF)
Multi-donor Water Partnership Program (WPP)
Rural Water Supply and Sanitation Initiative (RWSSI)
Infrastructure initiatives
NEPAD Infrastructure Project Preparation Facility (NEPA
DIPPF)
ICT4D Trust Fund
Governance initiatives
Multi-donor Governance Trust Fund
Agriculture
Agriculture/Natural resources initiatives
Africa Fertilizer Financing Mechanism
Environment & Climate Change
Congo Basin Forest Fund
Climate Adaptation and Risk Management Trust Fund Clim-Dev Africa Special Fund
Education & Capacity building
Higher Education, Science and Technology Trust Fund*
Regional integration South-South and Regional Cooperation Trust Fund *
Fragile states initiatives
Fragile States Facility
38
8/14/2019 AfDB in brief.pdf
40/70
R. Bilateral Trust Funds Resources Available within the
Bank
AfDB is involved in active resource mobilization through trust
funds. Bilateral and multilateral partnerships thus constitute
the third window of Bank Group sources.
Partnership and Cooperation Unit of the Bank initiate partner-
ship framework agreements, mobilizes and administers bila-
teral and multilateral technical cooperation funds from over 25
countries for project activities including feasibility studies, trai-
ning, capacity building, seminars and other development pro-
grammes. Previously, the current reforms being implemented
by the Banks trust funds were generally tied to the donor
countries experts and specific sectors of donor interests as
follows:
Austria: Water and sanitation, environment, renewable ener-
gy and transport
Belgium: Human development (health & education), agricul-
ture, infrastructure, private sector development and gender-
related activities.
Belgium (Wallon Region) private sector development, agroindustries, transfer of technology, capacity building.
Canada: Human & social development, governance & policy,
water, private sector development, telecommunication, gen-
der, environment, capacity building, training, good governan-
ce, regional economic integration, private sector develop-
ment, environment, gender, policy articulation, studies, capa-city building
China: Activities covered are project identification, prepara-
tion, studies.
DenmarkAll sectors and activities
Finland: Environment, climate change, adaptation and miti-
gation, science and technology related to renewable and
clean energy, forestry management studies, technical assis-
tance France: Sectors of interest include remittances, invest-
ment climate, studies, and technical assistance.
39
8/14/2019 AfDB in brief.pdf
41/70
India:All sectors are included and activities covered are pro-
ject identification, preparation, supervision, studies.
Italy: Infrastructure - water and energy including renewable
energies Focal countries of interest include : Ethiopia,
Mozambique, Kenya, DRC, Sierra Leone, Liberia, Mali, Niger
and Mauritania and activities covered are project identifica-
tion, preparation, evaluation
Japan: Policy and Human Resources Development Grant
(PHRDG),poverty related strategy and capacity building activi-
ties in ADF only countries/HIPC eligible countriesand activities
covered are project identification, preparation, evaluation, stu-
dies, training, workshops resource persons, capacity building
Korea: Infrastructure and natural resources, information and
communication technology, knowledge sharing on Koreas
economic development experience, human resources deve-
lopment, and implementation of Korea-Africa Economic
Cooperation (KOAFEC) Action Plans
Nigeria: Capacity building & regional integration in the areas
of science & technology, human development (health & edu-
cation), agriculture, public administration, business & finance
pre-feasibility and feasibility studies.
The Netherlands: Infrastructure, private sector, regional inte-
gration activities, preparation and implementation of specificentrepreneurship development programmes, including fran-
chising, women entrepreneurship and/or specific pro-
grammes for growth oriented enterprises (debt/equity funds
with TA
Norway (NORAD): All sector studies and consultancy ser-
vices relating to the preparation, execution and supervision ofdevelopment projects and programs
Portugal: Studies, training, private sector development infra-
structure, renewable energy and energy efficiency, good
governance and capacity building, agriculture, water and pro-
motion of Portuguese language in the Bank's operations pro-
ject cycle activities human resource development, policy and
sector studies.
Spain:Transport, environment, social sector, industry, public
utilities and activities covered are project identification, prepa-
ration, evaluation, studies, and secondment of Experts
40
8/14/2019 AfDB in brief.pdf
42/70
Sweden: Urban development strategy, studies, training and
the activities covered are project identification, preparation,
evaluation, supervision, technical assistants
Switzerland: Secondment of Swiss expert in water sector
training, seminars/conferences (resource persons) .
United Kingdom (DFID): Infrastructure and water, governan-
ce, climate change and clean energy, institutional strengthe-
ning, enhanced collaboration initiatives, knowledge manage-
ment & statistics. Activities covered are consulting services
and technical assistance in support of project cycle activities,
policy and sector studies, training, capacity building and pro-
vision of institutional support.
S. Achievements and perspectives under Trust Fund
Reforms
By the end of 2011, the African Development Bank (AfDB) has
made substantial progress under its Trust Fund Reform policy
in moving away from tied bilateral funds to multi-donor Trust
Funds most of which are thematic in nature. As of the end of
2011, the Bank had 320 on-going trust fund projects for a
total of USD 421million, 40 percent of which were in know-
ledge-based activities. In 2011 alone, a total of USD 127 mil-lion of trust fund resources were mobilized, of which USD 112
million was under multi-donor thematic funds. As of the end
of December 2011, the Bank managed 10 thematic funds for
a total of about USD 185 million compared to USD 14.2 mil-
lion available for use under the existing ten bilateral funds. Two
new thematic trust funds were established in 2011 namely theSouth-South cooperation trust fund with Brazil (USD 6million)
approved by the Board in March 2011 and the Sustainable
energy fund for Africa with Denmark pledging USD 57 million.
It was a approved by the Board in July 2011.
The challenge facing the Bank still remained that of greater
and integrated utilization of trust funds, to ensure value for
trust fund money and more results. Under a broader scope
of trust fund and special funds review, the AfDB is equipping
itself to address demand driven funds for greater impact, and
41
8/14/2019 AfDB in brief.pdf
43/70
the constant competition for donor resources. The AfDBs
partner donor countries however, have sustained their sup-
port for the Bank despite difficult financial and budgetary
situations in their countries.
T. AfDB decentralization roadmap
AfDB decentralisation exercise revolves around three key
pillars: strengthening the Banks existing field offices, expan-
ding its presence in countries coming out of conflicts, conso-
lidating overall regional capacity, quality and efficiency of the
Banks on-the-ground operations in regional member coun-
tries, with the need to work as one Bank. The Board of
Directors of the African Development Bank (AfDB) on 8 April
2011 approved a five year 2011-2015 decentralization strate-
gy. A permanent committee on decentralization (PECOD) was
established in January this year, with the responsibility of
implementing a comprehensive and transparent action plan to
ensure reasonable performance on the decentralisation road-
map in the short run. Under the action plan, the Bank has
opened four field offices in Liberia, Togo, Central Africa
Republic, and in Burundi, all of which are classified under the
Banks post conflict countries. Resident representatives wereappointed for Togo and Central African Republic etc. In addi-
tion the Bank established two pilot Regional Resources
Centers in Nairobi, Kenya and Pretoria, South Africa and their
respective directors assumed duty in January 2012. The
Bank has further re-classified its regional offices in Gabon and
the Democratic Republic of Congo as country offices.U. AfDB operational risk management framework
On 7 March 2011, the Board approved a revised operational
risk management framework following increased spotlight on
the financial services industry after the global financial crisis.
The framework is, a high priority for the Bank as it had made
an in-depth assessment necessary to mitigate possible ope-
rational risks of the Bank. Included in the expected benefits
from the revised framework are: minimizing the risks associa-
ted with the Banks decentralization agenda, enabling a sys-
42
8/14/2019 AfDB in brief.pdf
44/70
tematic process of identification and assessment of operatio-
nal risk exposures of the Bank, while fostering well defined
accountability processes and responsibilities for managing
risks. The framework also provides for consistent and timely
risk reporting as well as efficient allocation of risk capital. Risk
management is a dynamic process and underscored the cru-
cial need for all staff to understand, and where possible, be
trained in risk management. The Bank acknowledges and
embraces a coordinated risk management approach so as to
ensure a Bank-wide ownership of risk management proce-
dures and guidelines.
V. AfDB Promotes Sustainable and inclusive economic
development for Africa
Inclusive development does not mean a one-size-fit all
approach to development but a way of deploying existing
capacities in various sectors in African countries to work toge-
ther for the good of the continent. Inclusive growth was the
main theme of the 2011 Annual Meetings in Lisbon, in the
wake the 2011 revolution in Tunisia and other parts of North
Africa. The AfDBs inclusive growth agenda aims at promoting
sustainable long-term development fostering job-creating andpro-poor economic growth.
Attainment of the inclusive growth agenda would entail: (i)
increased employment opportunities for all, to support pro-
ductivity gains and economic growth, and also to create a
sense of dignity and control over peoples own destiny; iiachieving value for money and accountability in service deli-
very fighting corruption and promoting voice in decision
making, making sure public money works to deliver services
to all including the poorest; (iii) inclusion and social cohesion,
including safety nets and other risk protection mechanisms;
(iv) targeted support towards rural development, the youth,
skills development, special categories such as the elderly, etc.
The Bank is partnering with Regional member countries and
other donors in ensuring sustainability of the development
gains to be made. This is to avoid possible risks of having an
43
8/14/2019 AfDB in brief.pdf
45/70
ever-expanding inclusive development agenda for the conti-
nent that leads to too many objectives, loss of sectoral exper-
tise and the need for strategic selectivity.
W. AfDB and the knowledge industry
The AfDB should be seen as a Bank that offers advice,gui-
dance, identification and dissemination of best practices. In
order for the Bank to become an honest and trusted know-
ledge broker and Africas leading voice in the global arena on
development issues, it must aspire to be the center of excel-
lence. In 2010, the Bank established the Office of Chief
Economist to spearhead knowledge based activities, imple-
ment four strategic knowledge management and develop-
ment (KMD) pillars which seek to establish and entrench a
knowledge culture within the Bank and in Africa. Below are
some knowledge-based activities of the Bank:
Research studies on relevant development issues in
Africa; Inequalities in Middle-Income Countries.
Production and disseminate of annual and biannual flag-
ship publications including: The African Economic
Outlook produced annually in collaboration with theOrganization for Economic Cooperation and
Development (OECD) and the Economic Commission for
Africa, the African Development Report which analyses
major development issues in Africa, The Africa
Competitiveness Report (ACR) a biennial publication pro-
duced jointly with the World Bank and the WorldEconomic Forum and the African Development Review
(ADRv)
Organisation of ad-hoc advocacies, colloquia, seminars
and studies on Africas emerging development issues
such as The food prices crisis in Africa: issues and the
AfDBs response, the African response to the Global
Financial Crisis.
Organization of Eminent Speakers Program with
renowned personalities invited to share their views and
44
8/14/2019 AfDB in brief.pdf
46/70
experience on challenging development issues facing
Africa. Speakers in the past included Professor Paul
Collier of Oxford University who gave a talk on post-
conflict recovery; Sir Nicholas Stern of the London School
of Economics who addressed the problem of climate
change, former Senegalese President Abdou Diouf, who
examined the role of regional integration, PlaNet Finance
President and micro-finance specialist, Jacques Attali,
who made a presentation on the Financial Crisis and the
Role of Microfinance, Nobel laureate , Wole Soyinka
who spoke the democracy and development, among
others.
Compiles and maintains a statistical data base to support
country operations and contributes to the effective
Development of Statistical Capacity and Systems in
Regional Member Countries. The Bank provides econo-
mic and social statistics support for the planning and pre-
paration of censuses and surveys in economic and social
sectors; households, prices and living conditions. This is
a very important means of harmonizing and validating sta-
tistical indicators continent wide.
Some notable statistical publications of the Bank include:
Selected Statistics on African Countries which presentsdata on major development indicators of African countries
and regions ; Gender, Poverty and Environmental
Indicators for African Countries that provide some infor-
mation on the broad development trends in the 53 African
countries; Compendium of Statistics on Bank Group
Operations; and, AfDB Statistics Pocketbook which pre-sents summary economic and social data on regional
member countries and on the operational activities of the
African Development Bank Group; The Wall Chart on
MDGs which provides summary data on the progress by
African countries towards attainment of the Millennium
Development Goals (MDGs); The African Statistical
Journal, produced bi-annually in collaboration with
UNECA, which provides research and policy analysis on
statistical issues in the African region; and Comparative
Output, Incomes and Price Levels in African Countries
45
8/14/2019 AfDB in brief.pdf
47/70
which provides highlights of the results of the 2005 ICP-
Africa round.
X. Establishment of institutions
At the continental level the African Development Bank has
also been instrumental in the establishment and promotion of
the following African institutions:
Africa Re-insurance Corporation;
Shelter Afrique;
Association of African Development Finance Institutions
(AADFI);
Federation of African Consultants (FECA);
Africa Project Development Facility (APDF);
International Finance Company for Investments in Africa
(SIFIDA);
African Management Services Company (AMSCO);
African Business Round Table (ABR);
African Export-Import Bank (AFREXIMBANK);
African Capacity Building Foundation;
Joint Africa Institute;
PTA Bank; Network for Environment and Sustainable Development in
Africa (NESDA);
Lead agency for NEPAD infrastructure development and
guide in the development of banking and financial stan-
dards as well as the strategic partner of the African Peer
Review Mechanism (APRM).
Y. AfDB information disclosure policy
AfDB Group Board of Directors approved the first policy for
public disclosure of information in 1997. The policy has been
revised three times in February 2004, October 2005 and
March 2012. Before 2012 the policy generally outlined a
positive list of types of information for disclosure as was pre-
valent in development partner institutions before 2010. On
the other hand the 2012 revised policy outlines a limited
46
8/14/2019 AfDB in brief.pdf
48/70
negative list, which presents a clearer presumption of dis-
closure by outlining the category of information or documents
the Bank Group will not disclose (i.e. negative list) so that
beyond this list, the general assumption is that all other docu-
ments will be disclosed.
The revised policy aims to maximize disclosure of infor-
mation on Bank activities with minimal limitations that
reflect the Bank Groups willingness to disclose informa-
tion; facilitate access and share information on the Bank
Groups operations with a broad range of stakeholders;
promote good governance, transparency, and accounta-
bility to provide leadership in these areas; improve on
implementation effectiveness and better co-ordinate the
information disclosure processes; give more visibility to
the Bank Groups mission, strategies and activities to its
stakeholders; support the Bank Groups consultative pro-
cess in its activities and stakeholder participation in the
implementation of the Bank Groups financed projects;
and ensure harmonization with other Development
Finance Institutions (DFIs) on disclosure of information.
List of restrictions on or exceptions to disclosure include:
Correspondence, uncompleted deliberative information,uncompleted reports , statistics and analysis for Bank
internal work and decision making processes and audit
reports; communication between Bank Groups
President and RMC , Governors and Executive Directors
without their prior authorization; legal, disciplinary or
investigative matters including bids and evaluation ofbids; financial information including borrowings, terms
and tranches of payment; Bank Group and individual
security and safety arrangements as well as personal
information including staff records, medical information
personal, e-mails that are not classified as public.
Responding to information requests: The Bank Group
undertakes to ensure access to information eligible for
disclosures through, among others, the Banks website,
the public information center (PIC), the regional resource
centers (RRCs), and the Field Offices. The Banks General
47
8/14/2019 AfDB in brief.pdf
49/70
Secretariat which acts as interface between Management
and the Boards of Directors and Governors, plays a key
role in the disclosure of Board documents, archiving all
Boards documents, including the responsibility for the
Banks electronic archiving, implementation of document
management policies etc. The Communications &
External Relations Unit also implements the Banks dis-
closure policy by using the website and intranet as infor-
mation dissemination platforms.
Z. AfDB long-term development strategy 2013-2022
Since 1977, decisions on the use of resources of the Bank
Group were made on the basis of successive operational pro-
grammes which indicate the priority sectors in line with the
Bank Group objectives to promote the economic develop-
ment and social progress of African countries. After two suc-
cessive medium term strategies 2002-2007 and 2008-2012,
a new operational programme is developed within the context
of a longer-term 10 year perspective based on the Banks
experience over the past four decades. The new strategy
envisaged wide regional consultations to synchronize the
Banks vision with that of Africa as a whole. Under the newlong term strategy, the AfDB will champion a vision that seeks
to position Africa realistically and boldly as a continent on the
rise, a continent that will strive to enjoy sustained, inclusive
growth as well as green growth. The Bank will seek to enhan-
ce private sector development with greater reliance on
domestic resources rather than external aid, supported byrobust public sector governance in capable states.
The consultation meeting in selected African capitals will
assist in identifying drivers of sustainable growth that will
constitute the pillars of inclusive growth in Africa. These pillars
will include cross-cutting factors such as gender equality,
higher education and scientific innovation, effective partner-
ships beyond the current ODA partners, information techno-
logy, new trade patterns that can improve global demand for
Africas natural resources and, above all, improved political
48
8/14/2019 AfDB in brief.pdf
50/70
and environmental governance etc. Other emerging strategic
pillars of the new strategy will also include climate change,
green growth, knowledge creation and sharing, regional infra-
structure and trade facilitation, private sector and human
capital development.
Annexes I
49
8/14/2019 AfDB in brief.pdf
51/70
Annexes
8/14/2019 AfDB in brief.pdf
52/70
Annex I
AfDB Group Annual Meetings and Major Events
1964 Lagos, Nigeria: Inaugural Board of GovernorsMeetings; Choice of Headquarters. Election ofMamoun Beheiry of Sudan as the Banks firstPresident.
1965 No Annual Board of Governors Meetings.
1966 Abidjan, Cte dIvoire: First meeting at the
Headquarters.
1967 Abidjan, Cte dIvoire: Review of initial operationsincluding equity participation in the NationalDevelopment Bank of Sierra Leone, and an interna-tional road project loan to Kenya.
1968 Nairobi, Kenya.
1969 Freetown, Sierra Leone: Re-election of the firstPresident of AfDB (Mr. Mamoun Beheiry).
1970 Fort Lamy (Ndjamena), Chad: Election of Mr.Abdelwahab Labidi as the second President of AfDB.
1971 Kampala, Uganda: Discussions on the establishmentof ADF.
1972 Algiers, Algeria: Approval of Draft Agreement estab-lishing ADF. Conference of 13 Plenipotentiaries ofState Participants to sign ADF Agreement in Abidjanin November 1972.
1973 Lusaka, Zambia: Decision to increase the AfDB capi-tal stock.
1974 Rabat, Morocco: Decision on the Second CapitalIncrease. ADF begins operations. Cumulative AfDBloan approvals stands at US$ 125 million.
1975 Dakar, Senegal: 2-3 May, Federation of African
Finance Institutions (AADFI) inaugural meeting.
1976 Kinshasa, Zaire: Election of Dr. Kwame D. Fordwor asthe third President of the Bank. Third increase of the
AfDBs capital stock.
51
8/14/2019 AfDB in brief.pdf
53/70
1977 Port Louis, Mauritius: Study on resource mobilization,including those of non-regional countries.
1978 Libreville, Gabon: Negotiations on the admission of
Non-Regional Countries.
1979 Abidjan, Cte dIvoire: Technical capital increaseahead of proposed equity participation of non-region-al countries. Opening of AfDB London Office.
1980 Abidjan, Cte dIvoire: Election of Mr. Wila D.Mung'omba as the fourth AfDB President.
1981 Lome, Togo: Board of Governors authorizes capitalincrease to US$ 2.5 billion.
1982 Lusaka, Zambia: Ratification of the opening of capitalto non-regionals completed. AfDB capital increasesto US$ 6.3 billion.
1983 Nairobi, Kenya: 17 non-regional members attendtheir first AfDB Group Annual Meetings as full mem-bers.
1984 Tunis, Tunisia: Establishment of Federation of AfricanConsultants (FECA). Deputies approve US$ 1.5 billionfor ADF-IV.
1985 Brazzaville, Congo: Election of Mr. Babacar Ndiaye asthe fifth President of the AfDB Group.
1986 Harare, Zimbabwe: 18-member Ad-hoc Committeeto study 200% capital increase (GCI-IV). Approval ofnon-project lending proposal.
1987 Cairo, Egypt: 200% AfDB capital increase .
1988 Abidjan, Cte d'Ivoire: Approval of US$ 13 billionlending programme.
1989 Abuja, Nigeria: 25th Anniversary celebrations.Committee of Ten Report on the AfDBs future.
1990 Abidjan, Cte dIvoire: President Babacar Ndiaye re-elected.
1991 Abidjan, Cte dIvoire: Review of the 1986-1991lending programme. Commencement of operationalconsolidation policy.
52
8/14/2019 AfDB in brief.pdf
54/70
1992 Dakar, Senegal: Appointment of Mrs. Abu-Affan asfirst woman Vice-President.
1993 Abidjan, Cte dIvoire: ADF-VII negotiations. Focus
on poverty alleviation, social dimension of structuraladjustment in Africa and appropriate country pro-gramming of lending.
1994 Nairobi, Kenya: 30th Anniversary celebrations. Themeetings were marked by the release of the KnoxReport on AfDBs future and a final decision on loanquality as well as re-organization of the Bank's struc-
ture.
1995 Abuja, Nigeria: Decision on limitation of the term ofoffice of Elected Officers and members of the Boardof Directors to two terms of three years, and that ofthe President to two terms of five years each.Presidential election deadlocked.
1995 Abidjan, Cte d'Ivoire: Extraordinary meeting of theBoard of Governors elected Mr. Omar Kabbaj as thesixth AfDB President on 26 August.
1996 Abidjan, Cte d'Ivoire: ADF-VII negotiations conclud-ed on USD 2.6 billion replenishment for 1996-1998period. A special fund of amounting to USD 420 mil-lion was established in Osaka by 16 StateParticipants as a supplement to the ADF-VII. Themeetings also registered the submission of Ad-hocCommittee report on institutional governance and theFifth General Capital Increase of the Bank.
1997 Abidjan, Cte d'Ivoire: Two African countries, SouthAfrica and Botswana, decided to contribute
resources to the ADF window..
1998 Abidjan, Cte d'Ivoire: Conclusion of meetings of theAd-hoc Committee on GCI-V and decision toincrease AfDB capital by 35%. Preliminary meetingon the replenishment of ADF-VIII held
1999 Cairo, Egypt: Launching of Bank Groups new Vision
Document identifying agriculture, private sector andhuman resources development as the main strategicareas for Bank lending activities. Annual MeetingsSymposium on Infrastructure for AfricasDevelopment. The Board of Governors approved the
53
8/14/2019 AfDB in brief.pdf
55/70
Joint Africa Institute of the AfDB, IMF, and WorldBank.
2000 Abidjan, Cte dIvoire: Extraordinary meeting of the
Board of Governors of the Bank Group. PresidentOmar. Kabbaj re-elected by acclamation for a secondfive-year term. The Bank announces the re-openingof five Regional and Country Offices.
2001 Valencia, Spain: First Annual Meetings outside Africa.Presidents John Kufuor of Ghana and JoaquimChissano of Mozambique attend as special guests.
Annual Meetings symposium on Partnership forAfricas Development. ADF-IX negotiations begin.
2002 Addis Ababa, Ethiopia: First Annual Meetings held inthe country, seat of the OAU/AU. Symposium on thetheme: Towards Realizing the Objectives of the NewPartnership for Africas Development (NEPAD).
2003 Addis Ababa: Annual meetings held back-to-backwith the UN Economic Commission for Africa FinanceMinisters meeting. Both sides held a joint symposiumon the theme: Poverty Reduction, SocialDevelopment, and the Millennium DevelopmentGoals in Africa: Are We Making Progress on theGround?
2004 Kampala: Uganda hosted the Annual meeting alsoheld back-to-back with the ECA conference of
African Finance Ministers meeting and a jointSymposium on the theme: Closing the Gender Gap:Promoting Gender Equality for Growth andDevelopment in Africa.
2005 Abuja: Inconclusive Presidential elections. Extra-Ordinary meeting scheduled for Tunis, 21-22 July2005. 1 July 2005, Mr. Donald Kaberuka beco
Recommended