African Development Bank facts for kids

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African Development Bank

AfDB headquarters building in Abidjan
Abbreviation	AfDB
Formation	September 10, 1964; 60 years ago (1964-09-10)
Type	International organization
Legal status	Treaty
Purpose	Regional development
Headquarters	Abidjan, Ivory Coast
Membership	81 countries
President	Akinwumi Adesina
Main organ	Board of Executive Directors
Staff	2,123 as of 31 December 2022

The African Development Bank Group (AfDB) is a big international bank that helps African countries. Its main office is in Abidjan, Ivory Coast. The AfDB gives money to African governments and private companies. This money helps them invest in projects that improve their countries.

The AfDB was started in 1964 by the Organisation of African Unity. This organization was the first version of today's African Union. The AfDB is made up of three parts: the African Development Bank, the African Development Fund, and the Nigeria Trust Fund.

What the AfDB Does

The AfDB's main goal is to fight poverty in Africa. It also works to make living conditions better for people. It does this by encouraging investments from both governments and private businesses. These investments go into projects and programs that help Africa grow economically and socially.

How the AfDB Helps Africa Grow

The AfDB helps by giving loans and investing in projects. It also offers advice and training for development programs. The bank encourages both public and private money to be invested in Africa. It also helps African countries plan their development policies.

The AfDB pays special attention to projects that connect different African countries. These projects help bring regions closer together.

History of the AfDB

After many African countries became independent, they wanted to work together more. This led to the idea of creating a bank just for Africa.

Starting the Bank

In 1963, 23 African governments signed an agreement to create the African Development Bank. This happened in Khartoum, Sudan. The agreement officially began on September 10, 1964.

The first meeting of the bank's leaders was in Lagos, Nigeria, in November 1964. The bank's main office opened in Abidjan, Ivory Coast, in March 1965. The bank started its work on July 1, 1966.

Growing Membership

At first, only African countries could join the bank. But in 1982, the AfDB started allowing non-African countries to join too. This helped bring in more money and banking knowledge. It also gave African countries access to markets outside of Africa.

Moving Headquarters

From 2003 to 2014, the bank had to move its main office. It went to Tunis, Tunisia, because of fighting in Ivory Coast. Once the fighting stopped, the bank moved back to Abidjan in late 2013. By June 2015, most of its staff had returned.

Financial Growth

Since it started, the AfDB has helped fund over 2,800 projects. This totals more than $47 billion. In 2019, the bank's total capital was reported to be $208 billion.

In 2022, Africa's economic growth slowed a bit. But the AfDB still approved many projects. It focused a lot on renewable energy, which got 100% of the funding for energy projects. Money for food security, industry, and infrastructure also increased. The bank kept its top credit rating, which means it's seen as very reliable.

Parts of the AfDB Group

The African Development Bank Group has two other important parts: the African Development Fund (ADF) and the Nigeria Trust Fund (NTF).

African Development Fund (ADF)

The African Development Fund was created in 1972 and started working in 1974. It gives loans and grants to poorer African countries. These countries might not be able to get loans from the main AfDB. The ADF's main goal is to help reduce poverty.

Twenty-four non-African countries and the AfDB are members of the ADF. The United Kingdom is the largest supporter, followed by the United States and Japan. The ADF usually gets new money every three years from its member countries.

The ADF offers loans with no interest. There's a small yearly fee and a long repayment period of 50 years. This includes a 10-year period where no payments are due.

Nigeria Trust Fund (NTF)

The Nigeria Trust Fund was set up in 1976 by the Nigerian government. It started with $80 million. The NTF helps the poorest AfDB members with their development efforts.

The NTF provides money for important projects that help the economy and society of low-income countries. In 1996, the NTF had $432 million. It offers loans with a 4% interest rate and a 25-year repayment period. This includes a five-year period where no payments are due.

How the AfDB is Managed

The AfDB is managed by a group called the Board of Executive Directors. These directors represent the member countries. The more money a country puts into the bank, the more voting power it has. African countries have about 60% of the voting power, and non-African countries have about 40%. Nigeria has the most voting power among African countries.

The President of the AfDB

Dr. Akinwumi Adesina is the current President of the African Development Bank Group. He started his first term on September 1, 2015. He also leads the Boards of both the African Development Bank and the African Development Fund. Before this, Dr. Adesina was Nigeria's Minister of Agriculture. He was re-elected for a second five-year term in August 2020.

Board of Governors

Each member country is officially represented by their Minister of Finance or Planning. These ministers form the AfDB Board of Governors. They meet once a year to make big decisions about the bank's leadership and plans. They also appoint representatives to the Board of Executive Directors.

Daily Decisions

The Board of Executive Directors makes daily decisions. This includes approving loans and grants and setting the bank's policies. Every member country has a representative on this Board. Their voting power depends on how much money their country contributes to the AfDB.

Recent Focus and Plans

The AfDB wants to be more "selective" and "country-focused" in its work. This means it will focus on specific needs of each country.

Infrastructure Projects

Building things like power plants, water systems, roads, and communication networks has always been a big part of the AfDB's work. This focus on infrastructure is still very important. In 2005, the AfDB approved 23 infrastructure projects. These projects received about $982 million.

The AfDB also helps with projects that connect different regions in Africa. This helps create bigger markets and makes Africa more competitive globally. The AfDB is a key organization for helping with regional projects. It also helps prepare projects to get money from other sources.

Health and HIV/AIDS

The AfDB also works to fight HIV/AIDS in Africa. It helps countries build stronger health systems and train people. It supports prevention programs and provides equipment and medicines. The bank also works with international groups to raise awareness and get more help for this fight. So far, the bank has contributed over $500 million to fight HIV/AIDS.

Energy and Environment

Energy projects are becoming more important for the AfDB. Many parts of Africa don't have enough access to energy. The bank is working on policies to support energy development. It also helps with clean energy projects.

In 2023, the AfDB started releasing economic reports for each country. These reports help African leaders plan for climate change and green growth.

Capacity Building

The African Development Institute helps train people and build skills. This makes the AfDB's projects more effective. The institute was started in 1973 and focuses on helping African countries improve their abilities.

Responding to Crises

During the coronavirus pandemic, the AfDB focused on selling "social bonds." These bonds helped raise money for poorer countries to deal with the pandemic.

Future Outlook

The AfDB's financial health has improved a lot since 1995. The bank's lending activities have grown significantly. For example, between 2005 and 2006, its lending increased by over 30%.

The AfDB has important roles in Africa, like leading efforts in infrastructure and regional integration. This has made the bank more visible. Many people in African countries prefer to get help from the AfDB. This shows that the bank is seen as a good partner for development.

Even though there has been progress in Africa, many people still live in poverty. The AfDB, along with other organizations, is working hard to help countries reach important development goals.

AfDB Conferences

The African Development Bank holds annual conferences. In May 2017, the 4th conference outside Africa was held in India. Previous conferences outside Africa took place in Spain, China, and Portugal.

Member Countries

Regional member countries Non-regional member countries Non-regional member countries - ADF only

Countries eligible for... ADF resources only a blend of ADB and ADF resources ADB resources only

The AfDB has 81 member countries. This includes 54 countries from Africa and 27 countries from other parts of the world.

African Member Countries

All countries in the African Union (except one) can get benefits from the Nigeria Trust Fund.

Countries that get ADF help

Countries that get ADB and ADF help

Countries that get ADB help

Non-African Member Countries

Countries with Most Voting Power

The table below shows the 20 countries with the most voting power at the African Development Bank as of September 2021. Voting power depends on how much a country contributes to the bank.

The 20 Largest Countries by Voting Powers at the African Development Bank
Rank	Country	Voting Powers (% of Total)
	World	100.000
1	Nigeria	10.077
2	United States	7.581
3	Japan	6.284
4	South Africa	5.863
5	Algeria	5.758
6	Germany	4.779
7	Canada	4.395
8	Morocco	4.386
9	France	4.299
10	Egypt	3.062
11	Italy	2.780
12	Libya	2.749
13	Ghana	2.552
14	United Kingdom	2.083
15	Cote d'Ivoire	1.988
16	Sweden	1.802
17	Switzerland	1.683
18	Kenya	1.660
19	China	1.389
20	Denmark	1.351