North Africa is linguistically, socially and economically the most homogeneous region of Bank Group operations. It has made significant progress towards the attainment of MDGs.

The region is made up of predominantly Middle Income & AfDB category C countries with average per capita GNP over US$ 2000 in 2007. The countries access mainly AfDB resources with only Mauritania undertaking studies to move smoothly into Middle Income Countries category.

Cumulative average country Bank Group loan/grant portfolio is about UA 2.2 billion, with most important beneficiaries of the Bank Group loans being Morocco, Tunisia and Egypt.

Multisector and power predominate Bank Group lending to the region.

Countries, total land mass and population

North Africa is made up of six countries: Algeria, Egypt, Libya, Mauritania, Morocco and Tunisia, with a total population of 160.1 million people or 17.3% of Africa's population and a total land mass of 7.04 million sq. km.

Per capita GDP/GNP and Bank Group country categories in the region

In 2006, the sub-region's average  per capita GNP was as high as US$2,455 which was nearly three times the continental average.  With the exception of Mauritania whose per capita GNP in 2006 was US$560, all the countries in the sub-region are classified as Middle Income Countries and are among 13  AfDB Category C countries that access only the Bank’s non-concessionary resources. Libya is, however, not a borrowing country, leaving Mauritania as the only ADF country in the region. As an ADF country, Mauritania only obtains concessionary resources.

Cumulative Bank Group lending in the region as at the end of 2007

Although the Bank only commenced its operations in North Africa in 1968, a year behind other sub-regions, the sub-region has obtained the largest amount of Bank Group cumulative loans and grants from 1967 to 2007, amounting to UA 12.91 billion (US$ 20.40 billion), or about 31% of the total amount. Of this amount, only UA 0.54 billion (US$853 million) or 4.2% is from ADF concessionary resources, the bulk being from ADB non-concessionary sources. The bulk of ADF resources to North Africa is allocated to Mauritania.  North Africa is to ADB what East and West Africa are to the ADF, the concessary window of the AfDB Group.

Summary of country share of  Bank Group lending to the sub-region

Morocco and Tunisia have, at all times, been the major beneficiaries of Bank Group commitments with about 33% and 27. 8% respectively of cumulative lending to the region from 1967-2007, followed by Egypt with 21.2%, Algeria 15.0 % and Mauritania about 3 % . As at the end of 2007, the region had  the 3 biggest beneficiaries of the Bank Group cumulative approvals, namely; Morocco (US$ 6.8 billion), Tunisia (US$ 4.8billion), and Egypt (US$ 4.3 billion) Algeria (US$ 3.0 billion), Mauritania (US$580 million).

The absorptive capacity of the four category C countries have contributed in sustaining the AfDB's loan portfolio and credibility, thereby indirectly assisting in the institution’s credit rating and overall resource mobilization, including non-concessionary resources for Bank Group operations in other regional member countries.

Sectoral distribution of Bank Group lending to the region

Over the 1967-2007 period, sectoral distribution of cumulative Bank Group loan approval to the sub-region showed that the finance sector received UA 3.1 billion (approximately US$ 5.0 billion) or 23.8%, multisector UA 2.21 billion or about US$ 3.5 billion or 17.1%, power UA 2.2 billion (US$ 3.4 billion) or 16.7%, transport UA 1.7 billion (approximately US$ 2. 7 billion) or 13.2%, agriculture UA 1.3 billion (US$ 2. 0 billion) or 10%, social UA 0.9 billion (US$ 1.4 billion) or 6.7% , water and sanitation UA 0.7 billion (US$ 1.1 billion) or 5.2% , industry UA 0.5 billion (US$ 0.82billion) or 4 % while communications received UA 0.4 billion (US$ 0. 6 billion).

It is highly informative to compare the sectoral distribution of Bank Group lending to North Africa with that of West Africa. There are regional development reasons which tend to explain why finance, multisector and power are the key sectors of Bank Group lending in the region above the social, water and sanitation sectors as in some regions.