The AfDB wants to boost the fund it uses to tackle poverty
by about $4 billion this year, but the euro crisis could make
that tough, its president Donald Kaberuka has said.
But plans by Africas premier development bank to
triple its capital to about $100 billion remain firmly on
track, Kaberuka told Emerging Markets.
A vote on the increase on Thursday or Friday by shareholders
at the banks annual meeting in Abidjan would be an
important formality after the council of governors had
already approved it by 80% majority, he added.
Shareholders are also expected to approve accession to the
board by representatives of South Africa and the UK.
The capital increase and the board changes should give
the AfDB even more clout to borrow in the capital market. Both
changes met broad approval among key shareholders who met on
the fringes of the IMF-World Bank spring meetings in
Washington, a senior official said. He added that the capital
increase is done. Well be celebrating on
The Abidjan meeting will also discuss replenishing the
African Development Fund (ADF), which provides concessionary
lending and is critical for the banks poorest
Kaberuka told Emerging Markets he had been
hopeful of winning up to $4 billion for the ADF this year,
until Greeces financial crisis triggered the eurozone
At the last replenishment we had a record 50%, which
brought the fund to nine billion dollars, Kaberuka said.
I was hoping that in [this years] replenishment I
could get the same level of increase.
This could have taken [the fund] to around $12.5-13
billion $4 billion per year for three years, he
said. But the issues with the euro may have their
He had no immediate revised outlook. A final decision on
replenishing the fund is not due until August.
The record fundraising for the ADF in 2008 and
approval for the huge capital increase are widely seen as the
hallmarks of Kaberukas five years at the helm. He
aggressively expanded the banks loan portfolio, taking
the cumulative loans and grants made since 1967 to $82
South Africas accession to the AfDB board was only a
matter of time, because of its weight as Africas biggest
economy. But it was a delicate issue: South Africa only joined
the bank after apartheid, in 1994, and had to take its place in
the pecking order of shareholders. Its holding is around 4.5%
compared with Nigerias 8.7%, the USs 6.5%
and the UKs 1.7% but is likely to grow.
A solution likely to be negotiated between shareholders is
for the two new board members eventually to pick up shares held
by poorer countries that are unable to pay up their allotted