2014 Organisation and Management of Aid Analysis

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

Christopher Humphrey

A significant part of Swedish development assistance is channeled through multilateral development banks. One of these is the African Development Bank, AfDB. The Africa focus of Swedish development assistance makes the bank an important Swedish partner. At the latest replenishment Sweden became the sixth largest donor to the AfDB by allocating SEK 2.4 billion. The EBA report The African Development Bank – Ready to Face the Challenges of a Changing Africa? discusses the African Development Bank’s current challenges.

The report was presented at the seminar What Role for the African Development Bank in a New Africa?

Key findings

  • As the African economies grow the conditions for the AfDB’s business model are changing.
  • The Bank’s costs are covered by profits from loans to middle-income countries. As this lending is decreasing, the possibilities for providing subsidised loans to poorer countries also decrease.
  • The bank could have a great impact on Africa’s development but face significant restrictitions limting its operational ability.

Author
Christopher Humphrey, PhD, Researcher, Zürich University Switzerland