Maravi

AfDB will double investments this year, reveals Kaberuka

AfDB will double investments this year, reveals Kaberuka
Written by Kabanda Chulu
Tuesday, September 15, 2009 6:14:31 PM

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

Dr Kaberuka 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 was 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 would be better spent if targeted to poor countries through the ADF replenishment, as opposed to a capital increase. 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,” stated Dr Kaberuka.

“This would be crucial for the AfDB to sustain its current lending levels, as it has nearly exhausted its resources and would otherwise have little to lend in 2010. The financial crisis has had a greater impact on the continent than earlier feared. As a result, African countries and many projects which have had their original financiers pull out due to the crisis, are looking to the AfDB to get much needed financing and mitigate the effects of the crisis.”

Labels: AfDB, DONALD KABERUKA, INVESTMENT

posted by MrK @ 5:18 PM