Ministerial Round Table

Executive Summary

The current economic and financial crisis affects all the drivers of African growth: prices anddemand for primary commodities, capital flows and foreign direct investment and regionalintegration, especially in low-income countries and fragile states. Many countries face the risk oftwin deficits (current account and fiscal deficits) and the crisis threatens the gains achieved in thelast decade in the fight against poverty.

The African Development Bank responded quickly to support the continent by stretching all resources already at its disposal, through front-loading, fast-tracked disbursements and portfolio restructuring; stepping in several projects to provide additional funding and mobilizing existing programmatic instruments to support all countries, especially fragile states. Beyond these mainstream measures using existing resources and instruments, the Bank has developed a new set of crisis instruments, including an emergency liquidity facility and a trade finance initiative, of USD 1.5 and 1 billion respectively. By working directly with Ministers of Finance and Central Bank Governors, collaborating with the AU and ECA, the Bank has also played a catalytic role in enhancing Africa’s voice and effective participation in international regulation and by articulating its interests in the G-20 and the other regulatory institutions. The Bank is therefore actively preparing to initiate an early General Capital Increase to boost the risk bearing capacity of the bank and to better position it to support member countries to face the negative effects of the crisis.