AfDB optimistic of sustained indicators as year closes

By Maxwell Awumah, GNA

Hohoe (V/R), Oct. 24, GNA – Ahead of its first
African Investment Forum next month, the African Development Bank Group (AfDB)
continues to see another year of sustained indicators, underlined by a stellar
Triple A rating by all three major agencies and sharply increased earnings.

The inaugural forum, which takes place 7-9
November 2018 in Johannesburg, South Africa, will offer a platform for sourcing
funding for bankable African projects, brokering infrastructure deals and
providing innovative financial solutions.

The event will attract key global companies,
financial players, and public officials who will address the continent’s
critical infrastructure investment gaps, according it release copied to the
Ghana News Agency.

It said the Bank’s performance and ratings are
based on the solid support from its shareholders, including in the form of
strong callable capital. Net operational earnings for 2017 showed a 63-percent
jump to US$597 million from US$109 million in 2016 – capping a five-year upward
trend from 2013.

It said in projects performance, the Bank
disbursed a record US$5.1 billion to projects and programmes across Africa in
2017, an increase of 14 percent over the previous all-time high of US$4.5
billion in 2016.

The Bank’s financial performance and overall
achievements across other key metrics like volume of new development
assistance, disbursements and governance, were excellent in spite of a
well-recognized difficult operating environment.

“Of all multilateral development banks, African
Development Bank operates in the most challenging ‘operating environment’
defined by rating agencies as a reflection of the risks associated with the
countries of operation,” Senior Vice President, Charles Boamah, said.

The Bank’s core agenda targets lifting out of
poverty 38 African countries considered as the continent’s most vulnerable and
least developed. Since its founding in 1974 the Bank has invested a total of
US$45 billion in operations across Africa with significant focus on the LDC
countries.

Mr Boamah said the Bank’s challenging
operating environment was offset by the institution’s intrinsic financial
strength, which prompted shareholders at this year’s Annual Meetings in May to
approve the formal commencement of discussions for a possible seventh General
Capital Increase for the Bank Group.

Such an increase “would further strengthen the
financial base of the Bank, thereby enabling it to further scale up its support
to African countries, including those facing conditions of fragility,” Boamah
added.

Since assuming office in September 2015,
President Akinwumi Adesina has overseen wide-ranging institutional reforms and
restructuring at the Bank, with significant positive impact on its development
programmes and cost savings.

The 2018 Aid Transparency Index Report issued
by Publish What You Fund ranked the African Development Bank 4th among 45
development institutions surveyed, lifting the Bank by six positions since
2016.

The Bank has the lowest ratio of
Administrative Expenses to Adjusted Equity at 2.2 percent, meaning that it
spends the least in administrative costs for every dollar entrusted to it by
shareholders.

GNA

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