African Development Bank Group Sanctions $117 Billion Capital Increase

The callable capital increase is poised to enable the Bank to address the substantial development finance requirements of its member countries amidst escalating global challenges.

In a landmark decision, the Board of Governors of the African Development Bank Group has sanctioned a remarkable $117 billion (88.1 billion Units of Account) General Callable Capital Increase for the African Development Bank. This substantial increase is intended to fortify the Bank's lending capacity and meet the requisites of a credit agency. The approval elevates the Bank's authorized capital from $201 billion (UA152 billion) to an impressive $318 billion (UA240 billion).

Dr. Akinwumi Adesina, President of the African Development Bank, expressed gratitude for the approval, highlighting the importance of this additional capital in maintaining the Bank's prowess and leveraging its potential while preserving its credit rating. He underscored the confidence and trust demonstrated by the Bank's shareholders, reflecting a collective commitment to the institution's mission.

The Bank's Vice-President for Finance and CFO, Hassatou Diop N'Sele, emphasized the significance of the Bank's AAA Ratings, reaffirmed by four global rating agencies, as a testament to its robust financial position, prudent management, and unwavering shareholder support. She elucidated that a certain level of AAA callable capital is mandated by one of the credit rating agencies, necessitating the capital increase in light of recent downgrades of some AAA shareholders.

The decision received resounding support from the Bank's shareholders, who lauded the increase as essential for maintaining the Bank's AAA credit rating and its ability to meet Africa's developmental needs. Representatives from various countries, including Egypt, Germany, Kenya, South Africa, Spain, and the United States, expressed their commitment to supporting the Bank's mandate and welcomed the approval of the capital increase.

The callable capital increase is poised to enable the Bank to address the substantial development finance requirements of its member countries amidst escalating global challenges. Moreover, it signifies a robust response to the G20 reform and evolution agenda, reaffirming the Bank's pivotal role in promoting sustainable development across the African continent.