Financial Presentation

The African Development Bank is pleased to present the Financial and Operational Analysis for the year 2008. The document highlights recent developments at the Bank Group and in Africa, the activities of the Bank Group and the financial performance of the Bank.

The year 2008 has been a watershed for the world economy with the impact of financial turmoil in developed world slowly but surely spreading to the developing world including Africa. It has undoubtedly highlighted the weaknesses of the global financial system and put into perspective the need for strengthening monitoring and response mechanisms, including the countercyclical role of multilateral development banks such as the African Development Bank. While Africa registered a growth rate of over 5% for a fifth consecutive year, it was becoming clear during the last quarter that continued progress in Africa for the achievement of Millennium Development Goals had become vulnerable to the financial shock waves.

As early as November 2008, the Bank Group, in collaboration with the African Union Commission and the United Nations Economic Commission for Africa, convened a Conference in Tunis of the African Ministers of Finance and Central Bank Governors. The conference set up a high level committee to monitor developments, provide regular follow up, advise and make proposals on how best to contribute to the international deliberations in relation to the economic impact of the financial crisis and mitigating measures.

In addition, an internal expert task force came up with concrete measures that the Bank is taking to combat the impact of the financial crisis on Africa.

In spite of the very volatile financial conditions, 2008 was another year of excellent operational and financial results reflecting the Bank’s prudent and proactive financial and risk management policies. The Bank’s AAA credit ratings were reaffirmed and access to capital markets for funding remained unhindered.

The presentation that follows reflects all the above developments. The first section of the booklet presents an overview of the recent operational developments at the Bank Group including the Bank’s response to the financial crisis. The second section of the booklet focuses on the Bank’s strong financial profile and the need for continued support from shareholders to enable the Bank to fulfil its countercyclical role and contribute to efforts of member countries for sustained growth and shared prosperity.

The third section of the booklet provides a snapshot of the Bank’s funding activities in the capital markets. The Appendices highlight the economic indicators for Africa and also present a summary of the Bank’s financial statements.

Africa’s recent economic gains are at risk and while the world economic outlook still remains uncertain, it is clear that a determined, coordinated and concerted response is the need of the hour. The Bank Group in partnership with all stakeholders will continue to exercise diligence and perseverance in its efforts for developing Africa.

Thierry de Longuemar
Vice-President, Finance
Pierre Van Peteghem
Treasurer