With the independence of a significant number of African countries by the early sixties and an identified need for unity amongst countries within the continent, two draft charters were proposed. The first was the establishment of the Organization of African Unity (OAU) which later became the African Union (AU) and the second was for a regional development bank which laid the foundation for the establishment of the African Development Bank (AfDB) in 1964.
On the 10th of September, the African Development Bank (AfDB) reached a major milestone, celebrating 60 years of service to the African continent. Since its inception, the bank has been pivotal in promoting economic development, social progress, and regional integration. In fulfilling its mandate, the AfDB has focused on supporting infrastructure development, economic integration and trade, private sector development, agriculture and food security, human capital development, and climate change and sustainable development.
In the area of Infrastructure Development, the AfDB recognizing its critical role in unlocking economic growth invested heavily to support several infrastructure projects across the continent which include:
– Financing over 450 transportation projects, spanning 50,000 kilometres of roads, 30 airports, and 10 seaports.
– Supporting the development of 20,000 megawatts of power generation capacity, benefiting 300 million people.
– Providing access to clean water and sanitation for 100 million people through 300 water and sanitation projects.
To support Economic Integration and Trade, the AfDB championed initiatives that fostered economic cooperation among African nations. Some of which are as follows:
– Supporting the establishment of the African Continental Free Trade Area (AfCFTA), aimed at creating a single market for 1.3 billion people.
– Supporting the creation of six regional economic communities, promoting economic cooperation and integration.
– Financing trade facilitation programs, reducing transaction costs and increasing intra-African trade.
In the area of Private Sector Development, the AfDB recognizing its potential for job creation and economic diversification gave considerable support to the private sector across the continent. Some of which, include:
– Providing $10 billion in financing to 1,000 private sector projects, creating 2 million jobs.
– Establishing the Africa Investment Forum, attracting $78 billion in investment commitments.
– Supporting the development of 100 business incubators and accelerators.
To support agriculture and ensure food security while recognizing the sector’s potential for economic growth and poverty reduction, the AfDB has given considerable support to several agricultural projects across Africa. Some of these include:
– Financing 500 agricultural projects, benefiting 10 million farmers and increasing food production by 30%.
– Supporting the development of 20 agricultural value chains, creating 500,000 jobs.
– Launching the Feed Africa Strategy to end hunger and malnutrition by 2030.
In supporting human capital development, the AfDB also invested in education, health, and skills development projects. Notable achievements include:
– Financing 1,000 education projects, benefiting 10 million students.
– Supporting the development of 50 health projects, improving access to healthcare for 50 million people.
– Launching the Jobs for Youth in Africa Initiative, aimed at creating 25 million jobs.
Considerable support was also given to climate change and sustainable development projects some of which are listed below:
– Financing 100 climate-resilient infrastructure projects, benefiting 50 million people.
– Supporting the development of 20 renewable energy projects, generating 2,000 megawatts of clean energy.
– Launching the African Climate Change Fund, mobilizing $1 billion for climate action.
While the achievements of the AfDB in the last six decades speak for itself, the development bank has its eyes firmly set on the future. Under the leadership of its current president Dr. Akinwunmi Adesina, the bank recently increased its authorized capital by 125% from $93 billion to $208 billion while the subscribed capital increased by 100% from $33 billion to $66 billion.
With the enhanced capital base, the bank is now better equipped to support its vision for the future which are namely the five key areas enumerated below:
- Light Up and Power Africa: Ensure that all Africans have access to reliable, affordable, and clean energy.
- Feed Africa: End hunger and malnutrition by transforming agriculture into a viable business.
- Industrialize Africa: Foster industrialization and economic diversification to create jobs and prosperity.
- Integrate Africa: Promote regional integration and connectivity to facilitate trade, investment, and economic growth.
- Improve the Quality of Life for the People of Africa: Ensure that all Africans have access to basic services like water, sanitation, healthcare, and education.
The AfDB’s vision for the future aligns with the United Nations’ Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063. By focusing on these key areas, the AfDB aims to transform Africa’s economic and social landscape, ensuring a prosperous and sustainable future for all Africans.
The African Development Bank’s 60-year journey has been marked by significant achievements, transforming the lives of millions of Africans. As the bank looks to the future, it remains committed to addressing the continent’s emerging challenges and opportunities. The AfDB’s Diamond Jubilee celebrates not only its past achievements but also its continued dedication to a more prosperous, integrated, sustainable, and transformed Africa.
Oshobi, a development economist, management consultant, and author writes from Lagos, Nigeria