AFRICAN DEVELOPMENT BANK (AfDB) GROUP
The African Development Bank (AfDB) Group is a multilateral development finance institution. Its overall objective is to support African countries’ economic development and social progress by promoting investment of public and private capital in projects and programmes designed to reduce poverty and improve living conditions.
The AfDB is required to give special attention to national and multinational projects and programmes that promote regional integration. It also plays a leading role in the New Partnership for Africa’s Development (NEPAD) initiative, which aims to reduce the gaps that exist between Africa and the developed world, and to achieve the Millennium Development Goals.
The AfDB Group comprises the following three distinct entities under one management.
African Development Bank (AfDB)
The AfDB is the parent institution. It was established in 1963 by the then 23 newly independent African states. The agreement establishing the AfDB was drawn up under the auspices of the Economic Commission for Africa and entered into force in 1964. The Bank began operations in 1966. The AfDB provides non-concessional loans to regional Member States as well as policy advice and technical assistance to support development efforts.
African Development Fund (ADF)
The ADF was established in 1972 and became operational in 1974. It makes concessional loans and grants to regional Member States, with a primary focus on poverty reduction.
Nigeria Trust Fund (NTF)
The Government of Nigeria set up the NTF in 1976. It makes concessional loans to regional member countries.
Membership and governance
With the exception of Sahrawi Republic, all AU Member States are shareholders of the AfDB. Morocco and 25 non-African states (listed as follows) are also shareholders. Article 3 of the AfDB Agreement, which provides for any independent African state to become a member, also makes provision for membership from outside the continent and islands of Africa.
The Board of Governors is the Bank’s supreme organ and mostly comprises Member State Governments’ Ministers of Finance and Economy. It issues general directives concerning the Bank’s operational policies.
The Board of Directors comprises 20 members holding the title of executive director. The Board of Governors elects the Directors for three-year terms, renewable once. Regional members have 13 directors while states outside the region have seven.
The Board of Governors elects the President, on the Board of Directors’ recommendation, for a five-year term, renewable once. The President acts as the Bank’s Chief Executive and conducts its business, as well as being its legal representative.