Donor countries to invest $9bn in AfDB

| Friday February 1, 2008 00:00

The commitment was given by the donor countries at a recent meeting of Africa's development partners in London to become yet another significant event in the history of aid relations between Africa and its partners.

At the talks, representatives of donor countries, meeting with officials from Africa and some international development institutions, agreed to a record level of support for the African Development Fund (ADF) - the investment arm of the African Development Bank Group. A statement issued on Monday by the African Development Bank noted that the resource package represented a new record in contributions to the fund. In 1975, when the first replenishment was approved, the fund's three-year allocation was under US$ 500 million.

It then took nearly a decade and a half for contributions to hit the US$ 3 billion mark and a similar period to reach US$ 5 billion during the 10th replenishment in December 2004.

The statement also indicated that it was a demonstration of the will of donor countries to make progress toward commitments made. 'During their recent summit in Heiligendamn, Germany, G8 leaders had reiterated their desire to meet the levels of aid laid out at Gleneagles improve both its quantity and quality.

The London agreement is now proof of this commitment', the statement added. According to the statement, 'the history of this partnership goes back to the 1970s and the promises made by member countries of the Organisation for Economic Cooperation and Development (OECD) to commit 0.7 percent of their gross national incomes (GNI) as development aid'.

The statement also observed that beyond the G8 commitment, the momentous increase in resources must be seen as a testimony to what has happened in Africa and the AfDB in the years since the last replenishment meeting.

'Perhaps for the first time,' said Britain's International Development Minister Shriti Vadera, as she opened the meeting in London, 'we have a sense of optimism in Africa with many, if not all, countries growing at better rates than ever before. An average growth rate of five percent is the highest since the 1970s.'

The donors were also appreciative of the giant strides of the bank, noting that the Bank has stayed in lock step with the new dynamic on the continent, initiating reforms that have enabled it to raise its institutional and knowledge capacities, sharpen its response to development priorities, and enhance a decentralization effort that brings it closer to the ground in regional member countries.
(Leadership)