Africa: Statement Issued by the President of African Development Bank

19 April 2006
African Development Bank (Abidjan)
press release

Tunis — Today 19th April, the Boards of the African Development Bank Group approved debt cancellation for 33 regional member countries under the Multilateral Debt Relief Initiative (MDRI), equal to US$8.54 billion equivalent to UA5.84 billion. The immediate beneficiaries are the following 13 post-completion point countries:

--Benin

--Burkina Faso

--Ethiopia

--Ghana

--Madagascar

--Mali

--Mozambique

--Niger

--Rwanda

--Senegal

--Tanzania

--Uganda

--Zambia

This is a significant step forward in the implementation of the Initiative by donor countries, both G8 and non G8, on the issue of debt, which is to be highly applauded. It expands fiscal opportunities for countries to increase expenditure on reducing poverty and promoting economic growth.

Beneficiary countries of the debt cancellation are strongly urged to fulfill their commitments, to pursue economic reforms, prioritize expenditures and adopt forward looking debt management strategies that ensure non accumulation of unsustainable debt in the future.

It is of critical importance for beneficiary countries to sustain and further deepen their efforts at promoting good governance, accountable and transparent use of resources, in particular a clear political commitment to fight corruption and other forms of abuse of public office.

He urged the donor countries to further make progress in the fulfillment of other commitments made in 2005, in particular stepping up the volume of additional concessionary resources and improving the quality of those transfers in accordance with the harmonization agenda.

In the long-term, the shared goal is one of greater participation in the global economy. To that extent, collective efforts geared at further progress in the negotiations on the Doha Round and a comprehensive approach to the "aid for trade" agenda, to enable low income countries draw full benefits from the global economy, should be priority in the months ahead.

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