Meeting in Khartoum, Sudan, in September 1964, representatives of 25 African countries agreed on the vision of a Bank that could drive economic development across Africa by mobilising additional capital. This led to the creation of the African Development Bank (the Bank), with its leading objective clearly spelled out; ‘To Promote Sustainable Economic Growth and Reduce Poverty in Africa’. In pursuing this resolve, the Bank has focused on projects spanning reliable electric power, clean drinking water, healthcare, education, transport and other critical sectors.
The first decade: 1964–1974
Initially, the Bank was a modest operation employing a mere 10 people, working out of the Economic Commission for Africa offices in Addis Ababa, Ethiopia. A significant step was taken a year later with the establishment of new headquarters in Abidjan, Côte d’Ivoire, under the leadership of the first Bank President, Sudan’s Mamoun Beheiry (1967-1970). The new HQ catalysed the creation of a vehicle to fund new projects — the first two of which focused on a loan for new roads in Kenya and an equity stake in the National Development Bank of Sierra Leone.
The Bank was keen to ensure two additional sources of funding. The first was the African Development Fund (ADF) created in November 1972 and backed by 13 non-African nations, and the second was the Nigerian Special Fund, launched four years later in partnership with the Federal Government of Nigeria.
The second decade: 1974–1984
In 1974, a General Capital Increase of US $206 million was approved and the African Development Fund was formally launched. This was a challenging decade for the continent as oil importing countries sought to cope with two massive hikes in hydrocarbon prices that occurred in 1973 and 1979. In response, the Bank’s shareholders agreed to invite non-African countries to join as members. Negotiation on how this would be implemented lasted from 1977 to 1979. By successfully adopting this strategy, the Bank was able to enhance its credit rating and profile globally. In 1983, 17 non-regional members participated in the Bank’s annual meetings.
The third decade: 1984–1994
As the Bank entered its third decade, its portfolio of investments expanded significantly and by 1984, it had issued loans and grants worth US $880 million. This took place during a decade where the focus was on greater regional integration.
To fulfill this goal, the Bank built a strong team of experienced and skilled individuals and diversified its mission to focus on new challenges, notably its first project in microfinance. In 1987, the Bank’s fourth General Capital Increase raised US $22.3 billion, equivalent to a 200% increase, which enabled the Bank to agree on a lending programme amounting to US $13 billion in 1988. The Bank’s operations grew steadily as its remit expanded; by 1989, the total number of staff had reached 1,100. Babacar Ndiaye of Senegal was reelected for a second term in 1990, having taken over as the fifth president in 1985.
The fourth decade: 1994–2004
By 1994, the Bank’s total loans and grants amounted to US $1.4 billion. A year later, the Bank elected its sixth president, Omar Kabbaj, from Morocco. Under his leadership, the Bank initiated a strategy centred on the establishment of country teams to improve its investment and support, in tandem with the key development priorities identified by member countries across the continent.
The Bank also enhanced its ability to monitor and evaluate the projects it was funding. Three themes were actively pursued from 1997, namely investment in agriculture, encouragement of private sector development, and a special focus on human capital development, particularly with respect to women.
In 2000, Omar Kabbaj was reappointed for a second term, and in 2003, the Bank relocated temporarily to Tunisia due to political upheaval in Côte d’Ivoire.
The fifth decade: 2004–2014
Rwanda’s Donald Kaberuka was elected as the Bank’s seventh president in 2005. He immediately instigated an ambitious decentralisation programme emphasising product and service delivery.
This fifth decade was dominated by the 2008 financial crisis that gripped the world’s capital markets in the wake of the Wall Street collapse of American investment bank, Bear Stearns. In response, the African Development Bank was asked to set up a coordinated strategy to tackle the damaging credit, investment and economic development obstacles stemming from the global financial crisis.
The Bank’s response at this crucial time proved successful — a sixth Global Capital Increase raised US $64 billion in 2010, enabling the Bank to accelerate its lending and investment programme from US$11.8 billion recorded in 2009. In response to the North African-inspired Arab Spring, the Bank launched a range of measures to spur economic growth in the affected member countries. Kaberuka was re-elected for a second term in 2010.
The sixth decade: 2014–2024
The latest decade in the Bank’s history has been characterised by the quest for sustainable and continent-wide economic transformation, through innovation, partnerships and large-scale investments. Dr Akinwumi Adesina, former Minister for Agriculture of the Federal Republic of Nigeria, was elected as the Bank’s President in 2015. Upon assuming office, he outlined the Bank’s High-5 agenda — the five key objectives defining its lending strategy: Light Up and Power Africa; Feed Africa; Industrialise Africa; Integrate Africa; and Improve the Quality of Life for the People of Africa.
An independent report by the United Nations Development Programme points out that in achieving these High 5s, the continent would accomplish nearly 90 percent of the Sustainable Development Goals. In 2018, the Bank together with seven partners, launched the Africa Investment Forum as the continent’s premier investment marketplace. To date, the Africa Investment Forum has mobilised over US $180 billion in investment interest. A year later, the Desert to Power initiative, a US $20 billion renewable energy programme, was unveiled, to generate 10 GW of solar energy for 250 million people across 11 countries of the Sahel, creating the world’s largest solar energy zone.
In 2019, shareholders agreed to raise the Bank’s authorised capital from US $93 billion to US $208 billion — a 150 percent increase, the largest in its 60-year history. This strengthened capital base saw the Bank’s annual lending rise from US $5.5 billion in 2020, to US $6 billion (UA 4.51 billion) in 2021, and US $8.9 billion (or UA 6.16 billion) as at December 31, 2022 by which time the Bank had built up assets of about US $60 billion. In 2022, development partners of the Bank’s African Development Fund (ADF) agreed to commit a total of US $8.9 billion to the Fund’s 2023- 2025 financing cycle—again, the largest replenishment in the Fund’s history.
In 2024, the Bank redoubled its focus on innovative financing mechanisms. In January, it successfully issued its first ever US dollar-denominated sustainable hybrid capital notes (valued at US $750 million). The unprecedented fundraising is driven by the Bank’s objective to considerably scale up its investment and impact across the continent. The Bank’s leveraging power could quadruple after its successful campaign for the use of the International Monetary Fund’s Special Drawing Rights (SDRs) as hybrid capital.
In April 2024, the Board of Directors approved the Bank’s Ten-Year Strategy for the 2024-2033 period. The new Ten-Year Strategy prioritises the twin goals of inclusive growth and the transition to green growth, in response to the push for environmentally sustainable development of African countries.
And now, 60 years after its creation, the Bank can justifiably take pride in its achievements; Global Finance Bank rated it as the Best Multilateral Development Bank in the world, while Publish What You Fund, for the second time running, rated the Bank’s sovereign portfolio the most transparent out of 50 global development institutions.
These, and many other past recognitions, are confirmation that in pursuing its innovative strategies, the African Development Bank is playing a defining role in shaping and advancing the sustainable economic transformation of Africa.
