Executive directors from the African Development Bank Group (AfDB) and the World Bank have met in Abidjan to discuss a wide range of issues including the effectiveness of their work and ways of strengthening collaboration between the two institutions.
The Dean of the Executive Directors of the African Development Bank Group, Mmakgoshi Lekhethe, and eight other Executive Directors received their World Bank counterparts led by the Executive Director for Benin, Alphonse Kouagou. The seven-member World Bank delegation was on a field mission to Côte d’Ivoire and Niger.
The two groups exchanged views on broad strategic priorities and areas of common interest. This included board effectiveness; strategic partnership between the two institutions; and particularly among development partners against the backdrop of the COVID-19 pandemic.
The Dean of the Executive Directors of the African Development Bank Group disclosed that the two groups discussed the dual role that executive directors play in ensuring due diligence while advocating for more concessional resources for Africa within the multilateral finance system through the African Development Fund and the International Development Association- the soft lending arms of the African Development Bank Group and World Bank, respectively.
Striking a Balance Between the Financial Sustainability of Multilateral Development Banks
Mr Mmakgoshi Lekhethe again indicated they agreed that it was important to strike a balance between the financial sustainability of multilateral development banks vis-à-vis their role in contributing to the socio-economic development of their client countries. They also engaged on broad issues like food security, human capital, climate finance, energy including a just transition and fragility.
The Dena noted that AfDB has strived to adapt to its ever changing environment by targeting sectors where its expertise and investment can become more catalytic. “The institution is currently undergoing a series of internal changes and shifting its strategy. It is also in the process of seeking a seventh capital increase.”
Mr Mmakgoshi moreover stated that AfDB directors explained to the directors of World Bank how the AfDB is currently using its resources to help Africa tackle its developmental challenges; the comparative advantage the AfDB hold among development organizations in the region; and how it can leverage on the comparative advantage to help African nations respond to future challenges.
As the continent’s premier multilateral development institution, the AfDB has a multifaceted role. The AfDB operates in 55 countries and has 35 country offices in Africa working on topics such as: health, education, infrastructure, and natural resource governance. The AfDB provides loans and equity investments to its regional member countries based on various eligibility criteria. Beyond financial resources, the AfDB provides valuable assets, including data and knowledge, expert advice, and convening power.
In 2018, the AfDB approved a total of $7.1 billion in commitments, of which $2.3 billion (32 percent) was for non-sovereign operations.The AfDB also provides technical assistance to governments to facilitate the development of projects and programs. As a key development actor in the region, the AfDB promotes public and private capital investment for development.
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