Shareholders of the African Development Bank (AfDB) have approved the raising of the bank’s capital by additional $115 billion in a bid to stimulate growth and development on the continent. The approval was done at the lender’s shareholders’ meeting held in the Ivorian capital, Abidjan, last Thursday.
In a statement released after the meeting, it was disclosed that the capital increase was the largest in the history of the bank following its establishment in 1964.
“With the approved increase, the capital of the bank would more than double from 93 billion dollars to 208 billion dollars.
“This solidifies the bank’s leadership on development financing for the continent.
“The boost in capital ensures that the bank will continue to maintain a sterling AAA rating, all stable from the top rating agencies,” the statement read in parts.
Business Post understands that discussions on the request for a general capital increase started in 2017. According to shareholders, this would help fast-track the delivery of its High 5 development strategies, the sustainable development goals and the Africa Union’s Agenda 2063.
Dr Akinwumi Adesina, the president of the bank, said that its responsibility is to help improve the quality of life for the people of Africa and with the new development, this would go a long way.
“This general capital increase represents a very strong commitment of all our shareholders to see better quality projects that will significantly have an impact on the lives of the people in Africa.
“With the new general capital increase, the bank plans to do more with the following expected results, 105 million people will have access to new or improved electricity connections.
“About 244 million people will benefit from improvements in agriculture, 15 million people will benefit from investee projects and 252 million people to benefit from improved access to transport.
“Also, 128 million people are to benefit from improved access to water and sanitation,’ he said.
Mr Adesina added that AfDB would continue its leadership role on infrastructure development, strengthening regional integration and help to realise the ambitions of the African Continental Free Trade Area (AfCFTA).
He noted that it would support fragile states to build resilience, ensure sustainable debt management, address climate change and boost private sector investments.
On his part, the host president, Mr Alassane Quattara of Ivory Coast, said that the integration of the continent’s priorities into the High 5s indicated that AfDB was a strategic partner for African governments.
“In the past four years, the bank’s High 5 priorities have delivered impressive results on the ground.
“This includes helping to connect 16 million people to electricity, 70 million people provided with agricultural technologies to boost food security and nine million people given access to finance through private sector investee companies.
“Also, 55 million people were provided improved access to transport services and 31 million people with access to water and sanitation,” he noted.
Source: businesspost
