Meeting yesterday in Washington DC, a committee of Governors representing the African Development Bank's shareholders endorsed a tripling of the Bank's capital resources to nearly USD 100 billion and recommended acceptance by the full membership. This substantial increase will allow the AfDB to sustain a higher level of lending, including to the private sector, in response to overwhelming demand in all countries.
In response to the financial crisis, the Bank had front loaded its commitments, put in place new instruments to facilitate trade, and restructured its portfolio. As a result the Bank had used its available resources more quickly than previously expected.
Governors said that the conclusions represented a vote of confidence in the Bank and recognition of the exceptional efforts undertaken in response to the financial and economic crisis. They commended the ongoing reform efforts which will ensure that the Bank is able to deliver effectively results on the ground.
Donald Kaberuka, President of the African Development Bank, welcomed the Governors' conclusions, saying: "I am delighted by this decision. This is an historic moment for us, and a signal of strong confidence in the Bank."
"We acted decisively to limit the impact of the financial crisis and recession on Africa, he added. Our response significantly helped Africa weather the storm of the crisis. But the massive increase in demand for financing has brought us close to our lending limits. With this capital increase we will be better able to meet the needs of African countries, including low-income countries, and help them return to the previous high rates of growth."
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Antoinette Batumubwira
