Agreement Establishing The African Development Bank

The overall activity of the ADF is decided by a board of directors, six of which are appointed by non-African Member States and six appointed by the AfDB as regional executive directors of the Bank. The AfDB`s main mission is to provide loans and participations for the socio-economic development of the RMC. Second, the Bank provides technical assistance to development projects and programmes. Third, it encourages investment of public and private capital for development. Fourth, the Bank supports the development policy of the RMCs. The AfDB is also obliged to pay special attention to the national and multinational projects needed to promote regional integration. [20] The AfDB has been appointed head of the Agency for the Facilitation of “NEPAD Infrastructure Initiatives,” which are regional integration projects led by African Regional Economic Communities (RECs). In addition, the AfDB is home to the Africa Infrastructure Consortium (ICA). The ICA was created by the G8 countries to coordinate and promote infrastructure development in Africa, with a particular focus on regional infrastructure development. The AfDB helps prepare projects so they can obtain funding from other sources through an initiative called the Infrastructure Project Preparation Facility (IPPF). Therefore, even if the AfDB is not directly involved in funding a particular infrastructure project, it may have helped to make this possible.

After the end of the colonial period in Africa, the growing desire for greater unity within the continent led to the creation of two charter projects, one for the creation of the Organization of African Unity (founded in 1963 and replaced by the African Union) and a regional development bank. (i) the mobilization of financial resources by the government or foreign financial institutions with it; (ii) With regard to the provision of funds for the development of certain economic sectors, the AfDB supports the economic development and social progress of its MKE in Africa, and the Bank allocates about $3 billion a year to African countries. Its relatively limited lending and the tendency to follow in the footsteps of larger public institutions such as the World Bank imply that the African Development Bank has received little interest from both civil society organizations and the scientific community. To date, the Bank`s contribution to the fight against HIV/AIDS is estimated at more than 500 million U.S. The Bank is one of the initiating partners of AIDS in Africa – Scenarios for the Future, a project whose results will enable governments and development partners to make strategic decisions on current and future development trajectories and define their activities accordingly to address the challenges of HIV/AIDS. A draft agreement was presented to senior African officials at the finance ministers` conference on the creation of an African Development Bank. The conference was convened in Khartoum, Sudan, from 31 July to 4 August by the United Nations Economic Commission for Africa (UNECA). Here, the agreement creating the African Development Bank (AfDB) was co-signed by 23 African governments on 4 August 1963. [9] The agreement came into force on September 10, 1964. [10] The AfDB`s financial position was restored after the 1995 near-bankruptcy, but its operational credibility remains a work-in-progress.

A working group convened by the Center for Global Development, an independent Washington think tank, issued a report in September 2006 that made six recommendations to the Bank`s President and Board of Directors on the general principles governing the Bank`s renewal.

No Comments
Posted in: