AfDB at the forefront of helping Africa overcome the global financial crisis

Before the financial and economic crisis, the African Development Bank had carefully crafted, a Medium Term Strategy 2008-2012 to chart the way ahead.

That strategy did not envisage a General Capital Increase (GCI) till 2013 at the earliest.

It was at the same time a strategy predicated on continued solid growth in most African Countries and the role of the Bank in supporting that growth through better infrastructure, stronger private sector, robust institutions and greater economic integration.

As the global economic turbulence reached our shores, we had to innovate to support our countries mitigate and minimise the impact.

The Bank has responded quickly and effectively to requests from our regional members, enabling them to maintain crucial investment, helping them mitigate the worst effects.

Demand surged

The G20 called on the MDBs to play a counter-cyclical role.

We have done so. But as demand surged in, our resources were utilised much more quickly than envisaged in the MTS.

It became clear that a GCI which was not expected till 2013 had to kick in earlier to avoid breaching our prudential ratios.

The alternative, without such a GCI would have been to scale back drastically operations, both to sovereign borrowers and the private sector, an undesirable path given Africa’s needs.

Much the same applies to the ADF: we front loaded commitments, restructured portfolios to release additional resources, and improved disbursement rates.

For the same reasons, we have already begun discussions on replenishment for ADF XII.

We understand fully the challenges of the times we live in.

Nearly all the Multilateral Banks are seeking additional capital and replenishments of their soft loan windows, so are the other international vertical funds.

We need a strong African voice out of these consultations spelling out clearly our case, our expectations.