The African Development Bank (AfDB) has on Monday kicked off its annual meeting that will see Africa’s multilateral lender pick a new president at a time when the continent’s biggest multilateral lender faces unprecedented challenges from funding cuts by the U.S. government.
Washington wants to cut $555 million in funding to the AfDB and its African Development Fund, which offers low-priced financing to the continent’s poor nations. The annual gathering of heads of state and finance officials, taking place this year in Abidjan, is one of the biggest finance meetings on the continent.
Five candidates – from South Africa, Senegal, Zambia, Chad and Mauritania – are vying to replace outgoing President Akinwumi Adesina, who will step down in September after serving the maximum two five-year terms.
The candidates, Ms. Bajabulile Swazi Tshabalala of South Africa, Mr. Amadou Hott of Senegal, Dr. Samuel Munzele Maimbo of Zambia, Mr. Sidi Ould Tah of Mauritania, and Mr. Abbas Mahamat Tolli of Chad, all bring rich professional pedigrees and ambitious visions for Africa’s future.
The annual meetings and change of baton is coming at a time heavily indebted governments in the region are searching for new sources of financing to bankroll their development projects. AfDB, which is Africa’s largest development finance institution with $318 billion capital, is owned by 54 African states and G7 nations such as the U.S. and Japan. Its biggest shareholder is Nigeria.
The next round of replenishment for the ADF, which is held on a three-year cycle, is scheduled to take place in November. It is targeting to raise $25 billion, up from $8.9 billion in the last round.
The new president will have to try to persuade the U.S. to reinstate the funding, seek additional funds from non-regional members of the bank like China, or Gulf countries like Saudi Arabia and the United Arab Emirates, in return for more say, or ask African states to contribute more, Ryder said.
AfDB will focus on boosting electricity connections, increasing food production, fostering industries, integrating economies on the continent and lifting people’s living standards over the next decade, Adesina told a media reception at the meeting on Monday.
The winner, who must secure at least 50.01 per cent of the votes from the 54 African member states of the bank, and in a second vote from all 81 members, including non-African ones, will be announced on Thursday.
