AfDB Moving from Bilateral Funds Towards a Higher Multi-Donor Trust Fund Profile
The African Development Bank (AfDB) has made substantial progress under its Trust Fund Reform policy in moving away from tied bilateral funds to multi-donor Trust Funds most of which are thematic in nature.
As of the end of October 2011, the Bank managed 10 thematic funds for a total of about USD 185 million compared to USD 14.2 million available for use under the existing ten bilateral funds.
Mrs Kazumi Larhed, head of the AfDB’s Partnership and Cooperation Unit in a presentation to the Board of Directors on Tuesday 15 November on trust funds said: “AfDB is involved in active resource mobilisation through trust funds and it is important to note that as of the end of October this year, the Bank had 314 on-going trust fund projects for a total of USD 397.7 million, 40 percent of which were in knowledge-based activities.”
Mrs. Larhed’s presentation covered AfDB trust funds at a glance, ongoing trust funds operations, annual commitment rate of trust funds, newly mobilised trust fund resources in 2011, challenges posed by trust fund management and the way forward. In 2011 a total of USD 109.7 million of trust fund resources have been mobilized. Of that total, USD 95 million is under multi-donor thematic funds.
Responding to questions from Board members on the challenges of higher and integrated utilization of trust funds, Mrs. Kazumi Larhed emphasized that her unit is doing everything to ensure “value for trust fund money and more results.”
In his conclusion, Vice President Aloysius Ordu who chaired the session noted that under a broader scope of trust fund and special funds review the AfDB is equipping itself to address demand driven funds for greater impact. Referring to the constant competition for donor resources, he thanked the AfDB’s partner donor countries for their support for the AfDB despite the current difficult situation in their countries.