Africa -China Review Africa -China Cooperation and Transformation
The African Development Bank (AfDB) just like a number of other African organisations was formed at the time when former African colonisers were leaving the continent and African governments were gaining independence and introducing “self-rule”. The bank was formed in 1964 and at the time was comprised of three entities namely: The African Development Bank, the African Development Fund and the Nigeria Trust Fund although these were eventually fully established at different times.
Although the three entities had complimentary objectives, it is the African Development Bank that is the sole focus of this article. Its formation was as a result of a draft accord that was co-signed by twenty-three African governments and submitted to top African officials then to the Conference of Finance Ministers.
Having most African countries obtaining independence around that time necessitated a funding mechanism that would help finance African countries in their endeavours to improve investment of public and private capital in projects and programs aimed at contributing to the economic and social development of the region. Since its founding, AfDB is said to have financed over 3000 operations, for a total of about $50 billion.
The AfDB in its 2013-2022 strategy identified what they termed as the High 5s being the high priorities that would drive the strategy of the Bank. These are:
1.To Light up and Power Africa;
2.Feed Africa;
3.Industrialize Africa;
4.Integrate Africa; and
5.Improve the Quality of Life for the People of Africa.
These focus areas are essential in transforming the lives of the African people and therefore consistent with the United Nations agenda on Sustainable Development Goals (SDGs).
In fulfilling its strategy, the bank identified the following main functions:
1.Availing loans and equity investments for the socio-economic advancement of the regional member countries;
2.To promote investment of public and private capital for development;
3.Providing technical assistance for development projects and programs; and
4.Assist in organizing the development policies of regional member countries.
Clearly the functions indicate the development agenda of the bank towards its member countries. To the surprise of many, the AfDB has expanded its reach to other countries that are not necessarily on the African continent. These include countries like Finland, France, Germany, Argentina and Netherlands to name just a few. There is roughly a total of 27 countries which are non-African. Having a developmental agenda toward African member countries does not preclude the bank form dealing with non-African states.
The role of AfDB therefore supports both the 2030 Agenda for Sustainable development, and the African Union Agenda 2063 both of which have the development of the continent at its core intentions.
The following statistics based on AfDB 2019 annual report clearly indicate how the AfDB is transforming the continent. These are only results based on completed projects in 2019. It should be understood that there are others projects that have been sponsored in the same year but are at different stages of completion and are not included in these figures.
•There were 468,000 with new electricity connections in 2019, of which 218,000 benefitted women. In the same year, there were 291MW capacity installed of which 174MW was renewable energy. In the same vein, 678,000 tons of carbon dioxide emission were reduced. This supports one of the high 5s on lighting up and powering Africa.
•Under the feed Africa theme, 20.3 million people benefited from improvements in Agriculture, out of these 9.6 million were women. 3,919 km of feeder roads were rehabilitated or built which assists in the ease of moving agricultural products.
•In order to industrialise Africa, 53,300 owner- operators, micro, small and medium enterprises were provided with access to financial services and 1 million people benefited from investee projects out of whom 500,000 were women.
•Under the integrating Africa theme, 436km of cross-border roads were constructed or rehabilitated and 17.7 million Africans gained access to better transport services.
•In improving the quality of life of people of Africa, 10.1 million people gained new and improved access to water and sanitation out of whom 4.9 million were women. 180,000 people gained better access to education and out of these 90,000 were women.
The above statistics are evidence of the important role that the AfDB has played and still plays in the development of the African continent. Africa does not have to still keep going to the former colonisers with bowl in hand begging for some “crumbs” that are normally given with strings attached or at best with near to impossible stringent conditions.
The AfDB addresses issues that are pertinent to Africa and is quick to respond to member country needs. The bank’s involvement is assisting African member states in fighting the current Corona Virus pandemic (COVID 19) indicates how willing the bank is to assist member states with issues that are pertinent at a point in time. An example is where South Africa is known to have been the worst hit country with COVID 19 on the African continent and the AfDB approved a loan of $ 288 million to fight the pandemic. Many other countries have also been assisted in this regard.
Mr. George Nsamba is a risk management practitioner
Based in Johannesburg South Africa
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