On Tuesday, executive directors of the African Development Bank (AfDB) approved the financial institution’s 2016-2018 Work Programme and Budget, which anticipates a total lending objective of $33.55 billion in 620 projects.
In addition, the Board consented to a $492 million administrative budget for the AfDB, highlighting that this move would bolster and accelerate the implementation of the institution’s ten year strategy, with emphasis on five priority areas known as the High 5s:
- Light up and Power Africa
- Feed Africa
- Industrialise Africa
- Integrate Africa
- Improve the quality of life for Africans lighting up Africa pillar
The lighting up Africa pillar will be done by augmenting support for the energy sector, as part of the Bank’s priority to support infrastructure development on the continent.
What the budget means for the AfDB
According to the AfDB, the committed budget will help the finance facility fast-track its work programme and satisfy the needs of its clients in the context of the challenges articulated through the Sustainable Development Goals, COP21 and the Financing for Development conference.
The annual lending under this programme is expected to exceed the target of $4.04 billion – $5.21 billion per annum, while it will enable the Bank to build and strengthen existing and potential partnerships to help its regional member countries (RMCs) meet their development finance requirements.
The AfDB added that over this two-year period, an estimated $517.31 million will be made available as technical cooperation funds to cover costs related to technical assistance personnel, project execution, studies, training and other institutional capacity-building activities in RMCs.
“The Programme underscores also the Bank’s new business model, which would involve reinforcing the resource and human capacities of operation departments and support services that are critical in developing quality projects and programmes, accelerating project implementation and delivering expected development results.
“Streamlining business processes and enhancing institutional reforms to become more effective, efficient and responsive to clients’ changing needs; improving portfolio management and results reporting; implement innovative initiatives and strengthen co-development partnerships to create more lending headroom and leverage additional resources to support RMCs in achieving their development objectives; and seeking efficiency gains and trade-offs by enhancing a performance based culture,” the Bank said in statement.
The Bank’s President, Akinwumi Adesina, said the 2016-2018 programme and budget would enable the Bank to continue delivering strong development results while reinforcing its financial sustainability.
Adesina highlighted: “The Ten Year Strategy provides the roadmap and the architecture while the High 5s provide a measure of the sharp development outcomes of the TYS through which we can gauge our success.”