The African Development Bank (AfDB) has announced the largest capital increase in its history, with 125 per cent increase from $93 billion to $208 billion.
AfDB President Akinwumi Adesina gave the information at a press conference on Thursday after the board of the lender approved it in at an extraordinary meeting, reports Reuters.
The decision caps two years of negotiations to give the Abidjan-based bank greater scope to meet the continent’s funding needs. The last increase was agreed in 2010.
Adesina said the extra capital would help the bank finance energy, climate, and agricultural projects, as well as support infrastructure needed for the success of a continental free-trade zone.
“This is a joyful day for Africa, a historic day. This will give us greater stability for the future,” he said.
The AfDB’s shareholders are Africa’s 54 nations and 26 non-African donor countries. Part of its lending to poorer countries is at concessionary rates, largely financed by Western donors.
Each member country appoints a governor to the board whose voting power is proportionate to the amount of capital contributed by the country.
