AfDB to double investments

AfDB to double investments
Written by Kabanda Chulu
Monday, September 21, 2009 4:45:03 PM

AFRICAN Development Bank (AfDB) president Donald Kaberuka has said in response to the global financial crisis, the bank will double its investments this year with commitments amounting to US $11 billion from the US $5.8 billion in 2008.

He stated that the investments in various member countries including Zambia would go towards budget support operations, infrastructure projects, liquidity programs and a US $1 billion trade finance facility.

"At its Annual Meetings this past May, AfDB Board of Governors passed a resolution to initiate plans to triple the Bank's general capital to nearly US $100 billion so that it will have sufficient resources to allow it to cope with the global financial crisis," Dr Kaberuka stated.

"The AfDB will convene a meeting of its shareholders at the end of next week to review the adequacy of its capital, which it uses to make loans through its non-concessional lending window for middle income African countries and the private sector."

He stated that the Bank was considering the possibility of an early replenishment to its concessional lending window, the African Development Fund (ADF), which is funded primarily by donor country contributions.

"Donor countries will meet in Helsinki, Finland in October to discuss options to increase resources for the ADF, which offers loans and grants to poor countries. Some advocates argue that resources will be better spent if targeted to poor countries through the ADF replenishment, as opposed to a capital increase," stated Dr Kaberuka.

"The proposed capital increase and ADF replenishment are expected to improve the Bank's lending and financing capability and allow it to play a more important role in helping regional member countries cope with the financial crisis."