AfDB Posts Robust 2007 Financial & Operations Results
59% Rise in Approvals led by Infrastructure, Private Sector
Maputo, Mozambique, 12 May 2008 – The African Development Bank (AfDB) Group realized US$ 592.75 million net income from its 2007 operations with a 59% increase in project and programme approvals along with considerable increase in disbursements during the year ended 31st December 2007.
"The Bank set new benchmarks in achieving record levels of approvals and disbursement," the Group’s Treasurer, Pierre Van Peteghem, told the Board of Governors of the institution’s 77 member-countries and hundreds of stakeholders during a financial presentation and operations analysis on Monday in Maputo, ahead of the 14-15 May Annual Meetings of the Group hosted by Mozambique.
Infrastructure and the private sector led growth in operations, with a quantum leap by the private sector to US$ 1.6 billion from US$ 440 million in 2006, Mr. Van Peteghem said.
Apart from the excellent operational and financial results, and a triple increase in private sector activities, the Bank Group negotiated a successful eleventh replenishment of the African Development Fund (ADF), the concessional window of the African Development Bank Group, in December 2007 in London, to the tune of US$ 8.9 billion, a 52% increase over the amount realized during ADF-X replenishment.
Other outstanding activities of the Group during the year in review include a report by the Independent High Level Panel on its strategic orientations, continued enhancement of development effectiveness resulting from ongoing institutional reforms as well as the good results obtained in local currency operations, including first supranational bond issues in the domestic South African markets.
Of the aggregate approvals for 2007, US$ 4 billion went to finance operations while US$ 815 million was allocated to debt relief, assistance to post-conflict countries, private sector equity participation, and special funds. The ADB, the non-concessionary window, accounted for US$ 2.64 billion (53.9 percent of total Bank Group approvals), while the ADF accounted for US$ 2.2 billion (44.6 percent of total approvals), and special funds accounted for US$ 72.4 million (1.5 percent of total approvals). There was no lending from the Nigeria Trust Fund in 2007 as the operations of the Fund, which is being renewed for a 10-year period, had reached the end of the previous agreement’s tenure.
The top four sectors that benefited from loan and grant approvals were: infrastructure, agriculture and rural development, industry, mining and quarrying, as well as the social sector. The total approvals for infrastructure projects more than doubled from US$ 1.4 billion in 2006 to US$ 3 billion in 2007.
The dominance of infrastructure operations reflects the Bank’s strategy of targeting sectors that have significant impact on economic and social development. Regional integration is another area of focus, as it serves to increase competitiveness and productivity, expand trade, and allow for economies of scale. Multinational operations in the year in review amounted to U$$ 306 million, compared to US$ 660.5 million in 2006, which represents a decline of 53.8 %.
In 2007, Bank Group loan and grant approvals to all 5 sub-regions (not including multiregional) amounted to US$ 3.8 billion. North Africa received US$ 935 million; East Africa, US$ 911 million; Southern Africa, US$ 853 million; Central Africa, US$ 679 million, and West Africa, US$ 398 million.
1 UA = 1.58025 as at 31/12/2007