The African Development Bank is an institution whose mission is to promote sustainable economic growth and poverty reduction on the African continent. To that end, it finances development projects through loans to public and private entities.
In other words, the African Development Bank is an entity that promotes economic development in Africa. This, through the granting of credits.
The loans of this bank are characterized by the fact that their conditions (financing term, interest rate, etc.) are more favorable compared to those offered to middle-income countries.
The action of the African Development Bank, it should be noted, is not limited to loans, but to investments in capital, technical assistance and donations for humanitarian emergencies.
The funds of this bank come from quotas contributed by the members of the institution. Likewise, resources are obtained from the international capital markets, and another source of income is the income generated (by being creditors) from granted credits.
History of the African Development Bank
The African Development Bank was established on August 14, 1963 in Khartoum, Sudan, with 23 founding countries. Its creation became effective on September 10, 1964.
The African Development Bank Group (of which the African Development Bank is the parent) further comprises two franchisees: The African Development Fund and the Nigerian Special Fund.
The inaugural meeting of the bank’s Board of Governors took place between November 4 and 7, 1964 in Lagos, Nigeria. Likewise, its facilities were opened in Abidjan, Ivory Coast, in March 1965.
The bank’s operations began on July 1, 1966. Since February 2003, the bank has operated from Tunis (the capital of Tunisia), due to the political conflict situation in the Ivory Coast. But at the end of 2013 they began to return to Abidjan.
As of June 2015, around 1,500 members of the organization’s staff, out of the bank’s more than 1,900 employees, had returned to the facilities in Côte d’Ivoire. This, according to the official website of the institution.
At the time of writing the article, the African Development Bank Group is made up of 54 African and 27 non-African countries.
As we mentioned, the African Development Bank Group has two concessionaires:
- The African Development Fund: Administered by the African Development Bank, and created in 1972, it has 32 contributing countries and benefits 38 countries. Countries eligible for support are those that are on the way to becoming emerging markets, but also those that are in a fragile situation and require special assistance.
- The Nigeria Special Fund: It was founded in 1976 by an agreement between the African Development Bank Group and the Nigerian government. Its objective is to assist through financing the development efforts of low-income African countries.