The board of Governors at AfDB have approved a capital injection of $115 billion, the most substantial capital boost since the bank’s establishment in 1964.
The decision to increase capital comes after two years of negotiations to give the bank a greater means to meet Africa’s funding needs. The boost will help maintain the Bank’s AAA rating as well as improve its capacity to finance infrastructure projects throughout the continent.
The 124% increase in capital base represents improved confidence from the shareholders; 54 African states and 26 other non-African donors. “I applaud the shareholders for their strong confidence in the Bank and for boosting support for Africa’s development,” said AfDB President Akinwumi Adesina.
AfDB now has a record capital base of $208 billion, from the previous $93 billion. Going forward, the bank plans to improve access to electricity for 105 million people. Additionally, the bank will fund agricultural projects to benefit 244 million people.
AfDB aims to improve transport networks in Africa in preparation for the continental free trade agreement. The bank will improve access to transport, benefiting up to 252 million Africans.
African countries will also benefit from better sanitation and improved access to water. AfDB targets to use the capital to improve the lives of 128 million people through better access to water and sanitation.
This is in line with AfDB’s President Akinwumi Adesina High 5 development strategy. The strategy intends to transform African lives through electricity access, industrialization, integration, and a better quality of life.
“We have achieved a lot, yet there is still a long way to go. Our responsibility is to very quickly help improve the quality of life for the people of Africa. This general capital increase represents a firm commitment of all our shareholders to see better quality projects that will significantly have an impact on the lives of the people in Africa – in cities, in rural communities, and for millions of youth and women.”AfDB President Akinwumi