AfDB Earned U.S.$ 73 Million Net Income, Approved U.S.$ 5.4 Billion for Operations in 2008

14 May 2009
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African Development Bank (Abidjan)
press release

Dakar — Income before distribution approved by the Board of Governors amounted to UA 304.661 million, while allocable income for 2008 amounted to UA 266.656 million compared to UA297.789 million in 2007.

The Board approved the retention of UA 80 million of the income in the Bank Group's reserves while allocating UA 23.90 million to its surplus account. It also approved the distribution of UA 90.68 million to past undertakings with UA 25 million going to the African Development Fund and 65.68 to the Democratic Republic of Congo (DRC).

The institution channel UA 10 million to the Middle Income Countries (MIC) Trust Fund, UA 2 million to the Fund for African Private Sector Assistance (FAPA) and UA 60 million to the Fragile States Facility (FSF).

During the year in review, the Bank Group approved UA 3.53 billion (US$ 5.4 billion) for loans, grants and other operational activities compared to UA 3.10 billion (US$ 4.9 billion) in 2007. The amount represents an increase of 13.9 percent over the 2007 approvals. A total of UA 3.17 billion were in the form of loans and grants, while UA 358.5 million went to debt relief, assistance to fragile states, private sector equity participation, private guarantees, and special funds.

The AfDB, the Bank's non-concessionary window, accounted for UA 1.81 billion (51.2 % of percent) of overall approvals. The African development Fund (ADF), the concessionary window, accounted for UA 1.67 billion (47.2 percent), and the Nigeria Trust Fund (NTF) accounted for UA 28.2 million (0.8 percent), comprising 2 approvals for HIPC debt relief. Special funds accounted for UA 28.2 million (0.8 percent) of total approvals.

AfDB funding in 2008 went to four key sectors: infrastructure, multi-sector, finance, and industry. Approvals for infrastructure projects and programs amounted to UA 1.41 billion (44.5 percent of total approvals). The transportation sub-sector, power, and water supply and sanitation were among the major infrastructure components.

Loan and grant approvals to the five African regions, including multinational projects and programmes amounted to UA 3.17 billion, with North Africa leading the group with UA 819.9 million (25.9 percent). West Africa accounted for UA 633.5 million (20.0 percent); East Africa, UA 569.9 million (18.0 percent); Southern Africa, UA 475.9 million (15.0 percent); and Central Africa with UA 74.0 million (2.3 percent).

Private Sector operations accounted for nearly half of the approvals during the year in review rising to UA 901.2 million or 49.9 percent of AfDB approvals and 25.5 percent of Bank Group total approvals. The sector is increasingly recognized as the engine of economic growth for the RMCs and the substantial amount approved demonstrates the Bank's continued focus on selectivity and areas of priority that would accelerate poverty reduction, in full alignment with the Bank Group Medium-Term Strategy 2008-2012.

In 2008, there were 32 private sector activities comprising 9 project loans, 9 lines of credit, 11 private equity participations, and 3 private guarantees.

1 UA = 1.54027 US$ as at 31-12-2008

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Felix Njoku

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