The African Development Bank (AfDB) Group achieved excellent operational and financial results in 2006, with overall approvals by the Group increasing to US$3.9 billion from US$3.3 billion in 2005, an official said here Monday May 14th.
Aggregate approvals from the ADB lending window rose by 20.3% while the African Development Fund (ADF), the concessional window of the Group registered 8.6% increase in approvals in 2006, (excluding approvals for the Highly Indebted Poor Countries Initiative (HIPCS), Vice-President for Finance, Thierry De Longuemar, said while presenting the Bank Group’s operations ahead of its 16-17 May Annual Meetings in the Chinese commercial hub. During the period under review, policy-based lending from the AfDB window shot up by 178% while private sector operations rose by 55%.
In terms of the major sectors funded by the Bank, finance recorded an increase of 53.0% while infrastructure and multi-sector operations went up by 23.9% and 7.8% respectively, De Longuemar said. The ADF intervened in 80 operations in 32 countries and 20 multinational projects in 2006, where a total of 2.22 billion Units of Account (UA) were committed under the Fund’s 10th replenishment programme. (1UA=US$1.52).
Resources were diversified across regions and sectors, with the North Africa region receiving 32.5% of the allocations followed by West Africa, 23.4%. East Africa came third with 15.2%, Southern Africa followed with 13.1% against 11.8% for Central Africa and 4% for multi-regional projects.
On a sectoral basis, agriculture and rural development received the largest share with 17.6%, followed by the transport sector with 16.7% and multi-sector projects with 15.4%. The finance sector got 13.8% of the loans and grants while the social sector got 11.6%, with 9.3% going to power supply, 7.8% for the water sector, and 2.5% for other sectors. In addition, the Bank Group approved 34 other projects for UA11.7 billion during the period, through co-financing with partners.
“Development assistance from the Bank Group was leveraged more than 4.2 times through assistance from donors,” De Longuemar said, adding that enhanced emphasis on multi-sector operations indicated the importance of public sector management and institutional support. During the period in review, the Bank approved seven private sector operations and one loan guarantee for US$418.97 million, almost doubling the amount approved for the sector the previous year.
It also established the Enhanced Private Sector Assistance for Africa Initiative in collaboration with Japan based on the belief that the “private sector is the key to economic growth and poverty reduction in Africa.”
The Bank Group equally made a huge impact in debt reduction under the Multilateral Debt Relief Initiative (MDRI), by mobilising US$8.54 billion for debt relief over a 50-year period with effect from September 2006.
Seventeen of the 33 countries eligible for the HIPC Initiative reached completion point at the end of 2006. De Longuemar explained that the ongoing Bank-wide reforms would enable the institution to better deliver on its development mandate by channelling resources to operations, building capacity in line with greater decentralisation (21 offices established at the end of 2006), and by reinforcing tools for knowledge leadership.
The Bank Group is also focusing on infrastructure (water sector initiatives, Infrastructure Consortium for Africa and NEPAD), promoting regional integration and good governance, strengthening the private sector and development of competitiveness as well as increased selectivity, improved client-focus through decentralisation and the appointment of an independent High Level Panel to advise the Bank on its strategic vision.
The Bank has approved 3,102 projects for US$56 billion from 1967 when it began operations to the end of 2006.
