| African Development Bank |
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It has 77 member countries from around the world. EXTERNAL LINKS
HISTORY Established in 1964, the African Development Bank Group is a development bank which mission is to reduce poverty in Africa and promote sustainable economic growth. It groups together the African Development Bank (ADB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Forty years on, the ADB Group has financed 2885 operations, for a total of 47.5 billion dollars. It concluded 2003 with the best results in its history, with AAA rating from the major financial rating agencies and with a capital of 32.043 billion dollars in capital. Mission In 1964, in the city of Khartoum Sudan, a group of African men, all with the same hopes and vision came together representing 25 governments of Africa. They all had the same mission: to create the ADB, an African-run and owned institution that would contribute to the development and unity of Africa. During the 1st half of the 1960’s, many of Africa’s leaders decided it was time to take hold of the continent’s destiny into and place it in African hands. From this decision, grew many projects and future organizations such as the African Union. The project of the ADB was based upon specific fundamentals. First of all, it has to be 100% African despite all of the linguistic and ideological divisions of the time. With the growth of the African financial issues and the post-colonial atmosphere, grew the need for the establishment of a regional development bank to deal with those issues.African Development Bank Group, (1982),about us, history, Evolution of the group Retrieved on 2005 from http://www.afdb.org/portal/page_pageid=313,165716&_dad=portal&_schema=PORTAL Establishment The path of the establishment of what becomes the premier financial development in Africa is marked by numerous events, several initiatives and innumerable contributions. It is not possible to count them all, but amongst the founding events will be mentioned the Tubman-Krumah-Toure conference of 1958, the year of establishment of the Organization of the African Union. Also, the Doctor in economics Romeo Horton, future President of his country’s Central Bank, who in 1958 organized a pan-African conference of business-men, was to be one of those at the origin of the ADB. Foundations Three years later, in 1961, the Monrovian Conference took place in Liberia. It assembled a number of Heads of state and Governments and the Monrovia Group was born. Two draft charters – one for the OAU and one for the African Development bank – were at the centre of this assembly. Rapidly, a Committee of Nine was set up, a sort of think tank and an organizational core of this project. Chaired by Mr. Horton, this Committee of Nine visited practically all African Presidents as well as western leaders to present the idea of an African Development Bank. Also, Mr. Horton affirmed the primacy of its pan-African character, “to avoid importing the cold war” into this institution. What's more, we have to note the unfailing devotion of another key personality of the African Development Bank’s history, the recently deceased former Governor of the Central Bank of Sudan and first President of the African Development Bank, Mamoun Beheiry. Statute With the statute of a regional multilateral development bank, the African Development Bank (A.D.B.) is engaged in promoting the economic development and social progress of its Regional Member Countries (RMCs) in Africa. Although established in 1964 under the auspices of the Economic Commission for Africa, the ADB began operation in 1966 with its Headquarters in Abidjan, Cote D’Ivoire. Its shareholders include 53 countries in Africa and 24 American, European and Asian countries. Contact Contacts of ADB ADB Temporary Relocation Agency (Tunis) African Development Bank Angle des trois rues: Avenue du Ghana, Rue Pierre de Coubertin, Rue Hedi Nouira BP. 323 1002 Tunis Belvedère Tunisia Tel: (+216) 71 333 511 / 7110 3450 Fax: (+216) 71 351 933 Email : afdb@afdb.org Headquarters Rue Joseph Anoma 01 BP 1387 Abidjan 01 Cote d'Ivoire Tel: (+225) 20.20.44.44 Fax: (+225) 20.20.49.59 Email: afdb@afdb.org Field Offices Ethiopia Country Office (ETCO) Sevita Building, 7th Floor Africa Avenue (close to Addis Ababa International Airport) P.O. Box 25543 Code 100 Addis Ababa Egypt Country Office (EGCO) 1, al-gazayer square 1st Floor, New Maadi Cairo Tel: (+202) 5160906 Fax: (+202) 5160868 Function The ADB has four principal functions. The first is to make loans and equity investments for the economic and social advancement of the Regional Member Countries (RMCs). Its second function is to provide technical assistance for the preparation and execution of development projects and programs. The African Development Bank’s third function is to promote investment of pubic and private capital for development purposes. As its final function, the ADB has to respond to requests for assistance in coordinating development policies and plans of RMCs. However, in its operations, the Bank is also required to give special attention to national and multinational projects and programs which promote regional integration.Bank Information Centre, USA, (2005, July 27), African Development Bank Retrieved on 2005 from, July 27, from http://www.bicusa.org/bicusa/issues/african_development_bank/index.php Group Entities The African Development Bank Group has two entities in addition to the African Development Bank: the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Established in 1972, the African Development Fund started operations in 1974. It provides development finance on concessional terms to low-income RMCs which are unable to borrow on the non-concessional terms of the Bank. In harmony with its lending strategy, poverty reduction is the main aim of Fund development activities in borrowing countries. Twenty-four non-African State Participants and the African Development Bank are its current membership. The Fund’s Board of Governors meets annually, and the direction of general operations is conducted by a Board of Directors - six appointed by State Participants and six designated by the African Development Bank from among the regional Executive Directors of the Bank. The Fund’s sources are mainly contributions and periodic replacements by State Participants. The Fund is usually replenished every three years, unless State Participants decide otherwise. The total donations, at the end of 1996, amounted to US$12.58 billion. Also, the Fund finances projects and technical assistance as well as studies. Finally, it lends at no interest rate, with a service charge of 0.75 per cent per annum, a commitment fee of 0.50 per cent and a 50-year repayment period, including a 10-year grace period. Concerning the Nigeria Trust Fund (NTF), it was established in 1976 by the Nigerian Government with an initial capital of US$80 million. The NTF function is to assist in the development efforts of the poorer ADB members. Moreover, the NTF must use its resources to provide financing for projects of national or regional importance which further the economic and social development of the low-income RMCs whose economic and social conditions and prospects require financing on non-conventional terms. In 31 December 1996 the NTF had a total resource base of US$432 million. It lends at a 4 per cent interest rate with a twenty-five-year repayment period, including a five year grace period.African Development Bank Group,(2005), about us, Group entities Retrieved on 2005 from http://www.afdb.org/portal/page_pageid=313,165673&_dad=portal&_schema=PORTAL Report After forty years of hard work, the African Development Bank Group has financed 2885 operations for a total of 47.5 billion dollars. 2003 was the best results in its history, with an AAA rating from the major financial rating agencies and 32.043 billion dollars of Capital. One more point is that the ADB has conserved its fully African character, even after the entry of the non-regional countries in 1982. It has supported political democratisation and the economic liberalization of the 1990’s. Also, it participated in the efforts at resolving conflicts, restoring civil liberties and economic structures and professionalizing Africa’s financial and political institutions. It has further placed emphasis on the role of women, on education and structural reforms and lent its support to key initiatives: debt alleviation for highly indebted poor countries (HIPC), regional integration, right up to the New Partnership for Africa’s Development, NEPAD, of which the Group is one of the orchestrators. Challenges, Hopes Although there have been progress at all stages regarding democracy, growth and restoring the macro-economic balances in Africa since the sixties, the challenges are still here, half of sub-Saharan Africa lives on less than one $1.00 US a day and AIDS is menacing many African societies. The studies conducted by several organizations (including the ADB and the World Bank) demonstrate that the United Nations Millennium Development Goals – reducing by half the number of persons living in poverty and without access to potable water by 2015 – will in most cases not be respected except in north and south Africa. However, these same studies indicate that the majority of the African countries have the potential to make relevant progress. The restoration of peace in numerous regions as well as the improved economic results since the late 1990s does confirm this capacity. What is more, the number of countries that have acceded to the rank of petroleum exporting country in recent years, including some of the poorest, but also the progress achieved in key areas concerning regional infrastructure will generate many opportunities. INTERVIEW Mr. Mohamed H’midouche, Regional Resident Representative- Senegal, Mauritania, Cape Verde and the Gambia - of the African Development Bank Group Issam: What excites you the most about the African Development Bank? Mohamed H’MIDOUCHE (Regional Resident Representative): Well, First of all let me thank you for visiting me about the ABD (African Development Bank). I feel most privileged for joining the ABD. I also feel personally that I was lucky for having this opportunity. I was the youngest recruited, 28 years ago (in 1978). At that time, I had my MBA (Master in Business Administration) from a French university. The bank found out that despite my young age and my dynamism, I was the right man at the right place. I was thought to be exposed to a prosperous future, even if the competition was huge with many people from different regions of Africa and with 10 to 15 years of experiences. But, the majority of the staff was from Sub-Saharan countries while I am a Moroccan person (from North Africa). This geographical location made a big impact when I was chosen. One of the most important things when I entered the Bank is that I understood what poverty means. I examined deeply their basic required and this made me feel that we are in front of a big challenge: bringing down this phenomenon. I noticed that 70% of African people live in areas. Women don’t have access to credits; they’re only living in houses. But they’re marvellous, taking care of children and so on. They’re also doing great with 70 to 80% of food production. Finally, I had the chance to visit every single country of Africa. Another thing is that I didn’t stay at the same level of work in ADB. I learn a lot from my president Babacar Ndiaye when I was his assistant. Following my experience from Mr. Ndiaye, I was transferred to London in the European representation of the Bank. The Bank tries to promote an African development in Europe and started working with investigators from there. In 2000, I spent 4 years in ADB in Egypt. I tried to improve the private sector. After that, I went to Tunisia when they moved from Johannesburg to Mozambique. But, for personal reasons (they speak Portuguese in this country and also my children couldn’t go to school because there is not any French school there) I moved to Dakar 8 months before. The ABD has a team of 15 people in Dakar with 3 different objectives: a.Enhancing and Strengthening ADB countries: Mauritania, Senegal, Cape Verde and The Gambia and for this I have made some recommendations. b.The Bank is financing a lot of projects and programs. In the Bank they make sure that they are fulfill their objectives. c.Strengthening and enhancing aid coordination from Dakar to other countries. Issam: What are the ADB Group’s future plans? Mohamed H’MIDOUCHE: The ADB is a financial institution that helps its member countries to contribute to their social and economic development. They support projects in these countries. To fulfill these projects 5 areas are being implemented: Agriculture and rural development Private Sector and development Promotion of good governance Regional economic integration Capacity building Under the presidency of Babacar Ndiaye, they focus on the efficient management of their projects. The Bank’s stakeholders are working to strengthen the issues of projects which were raised by member countries. They also work to enhance them on harmonization, alignment and coordination between all developed partners. Issam: What aspect of the ADB do you think should be better known, do you think is most misunderstood? Mohamed H’MIDOUCHE: The Bank is very well-know, especially in Senegal, where the president comes from. People are not aware that ADB has AAA rating from the major financial rating agencies. Its capital is about 48 billions dollars. People are not aware of the length of their intervention in fighting against poverty. To improve this misinformation, they’re preparing a strategy inside and outside the bank, to inform people. First financial panel institution acting in Africa, the ADB invest 3 billion dollars each years and mobilize between 10 to 50 million dollars for Africa. To emphasize on its investments, a new initiative for water and rural life has been made as well as involvements in NEPAD. Its shareholders (77) are the 53 countries in African as well as 25 countries in the Americas, Europe, and Asia. There is not any discrimination inside the Bank. Indeed, we have 300 staffs, including 2 women vice-president out of 5, because the gender equalities are very important.CHLEUH I. with Mr H’midouche Dakar, Senegal CONCLUSION To put it in a nutshell, the African Development Bank Group is a very powerful African institution, well organized and well managed which fights against poverty in Africa but also promotes sustainable economic growth. Consequently, the African audience has to be aware of its role and importance. This development bank is showing African countries the path to follow in order to progress: determination, African identity, equality of the sexes, democracy... REFERENCES |
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