AfDB seeks board approval to raise $33bn from capital market

The African Development Bank (AfDB) is seeking to increase resources for member countries for more productive projects on the African continent to improve livelihoods.

To this end, President of the AfDB Group, Dr. Akinwumi Adesina, is seeking approval from the board and partners of the bank to raise some $33 billion in order to support more initiatives of member countries.

Dr. Adesina was addressing Board members, Governors, and stakeholders at the opening ceremony of the bank’s General Meetings in Accra.

He called on the African Development Fund (ADF), donor countries to increase its support so that the group can take up more investment projects. The African Development Fund (ADF) is the concessional financing window of the Bank Group that provides low income Regional Member Countries (RMCs) with concessional loans and grants, guarantees as well as technical assistance for studies and capacity building in support of projects and programs that spur poverty

“I wish to express my great appreciation to each African Development Fund donor country. You have stayed with the Fund, you have supported the Fund, and your countries have been partners in the journey of hope of the countries that are supported by the African Development Fund,” Dr. Adesina said.

“To give greater hope, to cope with increasing challenges, the African Development Fund countries need greater resources”, he added.

He explained that one way to achieve this is to allow the African Development Fund to use its accumulated equity of $25 billion to leverage $33 billion from the capital market.

“The Fund will provide greater leverage for donor contributions: a great value for money for taxpayers from donor countries. The Fund will be more sustainable, as it will generate more income. The Fund will reduce debt of countries, as it will deliver much lower concessional lending rates compared to very high interest rates the countries get on the global capital markets. Then together, we will build more equitable growth and development from the middle-income countries to the low-income countries and fragile states”, he stressed.

Dr. Adesina assured that no country on the continent will be left out of the development agenda of the AfDB.

As part of the Annual Meetings of the bank, an Economic Outlook Report for African Countries is expected to be launched today, May 25th, 2022.

Source: Myjoyonline