AfDB Seeks Resources Increase from G20
Tunis, September 22, 2009 – The African Development Bank (AfDB) Group is urging on the G20 Summit to increase the institution’s resources in order to meet increasing demands for funding to the Bank from its regional member countries following the global economic crisis.
“Let the message go forth from Pittsburgh that as the world economy show signs of recovery, Africa and the low income countries are not left behind, but are [made] part of the recovery process,” the AfDB President, Donald Kaberuka, said in a video statement.
“Africa looks forward to the Pittsburgh G20 Summit. The economic crisis has been a major setback for Africa. The African Development Bank has played its role acting countercyclically. It has proved to be a reliable, responsive partner,” he emphasized.
In a statement ahead of the G20 Summit in Pittsburgh, Pennsylvania, Mr. Kaberuka said that “Additional concrete steps for crisis mitigation and supporting recovery in low income countries are critical,” noting that “a General Capital Increase” of the AfDB and “a generous replenishment of the soft loan” African Development Fund (ADF) were of critical importance to the Bank.
The Bank expects its investments in 2009 to double with commitments amounting to some USD 11 billion, from USD 5.8 billion the previous year, largely in response to the global financial crisis. These investments are channelled to budget support operations, infrastructure projects, liquidity programs and trade finance.
Following the conclusions of the African Finance Ministers Conference, the AfDB in March 2009, rolled out the "Bank’s Response to the Economic Impact of the Financial Crisis” which comprised a USD1.5 billion Emergency Liquidity Facility, a USD 1 billion Trade Finance Initiative, a Framework for accelerated resource transfer of concessional resources to eligible countries and enhanced Policy Advisory Support to mitigate the impact of the crisis.
At its Annual Meetings in Dakar, Senegal, in May 2009, the AfDB Board of Governors passed a resolution to initiate discussions on the Bank's general capital increase and the replenishment of its concessional window, the African Development Fund.