2014

The African Development Bank – Ready to Face the Challenges of the Future?

Christopher Humphrey

The EBA report “The African Development Bank – Ready to Face the Challenges of a Changing Africa? discusses the African Development Bank’s current challenges. It is written by Christopher Humphrey from Zurich University in Switzerland. A significant part of Swedish development assistance is channeled through multilateral development banks. One of these is the African Development Bank, AfDB. At the latest replenishment Swedenbecame the sixth largest donor to the AfDB by allocating SEK 2.4 billion. The Africa focus of Swedish development assistance makes the bankan important Swedish partner. The author notes that as the African economies grow the preconditions for the AfDB’s business model are changing. The Bank’s costs are covered by profits from loans to middle-income countries. But as this lending is decreasing, the possibilities for providing subsidised loans to poorer countries also decrease.