50 years at the service of Africa 1964-2014 african growth and development Acknowledgements

This book was prepared by the Complex of the Chief Economist of the Dr. Elfatih Shaaeldin played an important role in the collection of African Development Bank to mark the 50th Anniversary of the historical and contemporary material for the book. He also prepared establishment of the Bank. its first draft.

The production of the book was made possible by the overall The Directors of several organizational units of the Bank supported the supervision and leadership of an Editorial Committee chaired by the idea of the book and encouraged their staff to contribute. In particular, Acting Vice President and Chief Economist, Steve Kayizzi-Mugerwa. the following played key roles: Victor Murinde, Bernadette Kamgnia, Egal N. Roble, Felix Njoku, This book was prepared by the Complex of the Chief Dr Elfatih Shaaeldin played a seminal role in the col- The membership of the Committee included Bank staff and consultants Louis Kouakou, Victoria Hughes, Adewale Shoboyejo, Charly Andral, Economist of the African Development Bank to com- lection of historical and contemporary material for the Henry Mansaray, Karim Haddad, Pauline Akolo, Clement Babalola, memorate the 50th Anniversary of the establishment of book. He also prepared its first draft. who provided intellectual input, content as well as editorial advice at the Bank. various stages during the preparation of the book. They are: Aymen Osman Ali, Pal Monojeet, Moez Chareddine, Cecil Nartey, Massamba Diene, Patience Kuruneri, Trevor De Kock, Pierre The Directors of several organizational units of the Bank The production of the book was made possible by the supported the idea of the book and encouraged their Joel Serunkuma Kibazo, Director of the Communication and Van Peteghem, Benedict Kanu, Charles Lufumpa, Ousmane Dore, overall supervision and leadership of the High-level Ed- staff to contribute. In particular, the following played External Relations Department Claude N’kodia, Veronica Giardina, Alex Mubiru, Anna Bossman, itorial Committee chaired by the Acting Vice President key roles: and Chief Economist, Dr. Steve Kayizzi-Mugerwa. Bakri Musa Abdul Karim, Division Manager, African Development Yousif Bashir Eltahir, and Elfateh Khalid. Institute Victor Murinde, Egal N. Roble, Felix Njoku, Louis The membership of the Committee included Bank staff Kouaku, Victoria Hughes, Adewale Shoewbi, Charly and consultants who provided intellectual input, con- Andral, Henry Koyie Henry Mansaray, Karim Haddad, John Phillips, Lead Strategic Communications Adviser, Thanks are also due to the family of the late first President of the African tent as well as editorial advice at various stages during Pauline Akolo, Clement Babalola, Aymen Osman Ali, Communication and External Relations Department Development Bank, Mr. Mamoun Beheiry, who contributed some rare the preparation of the book. They are: Monojeet Pal, Moez Chareddine, Cecil Nartey, Mas- samba Diene, Patience Kuruneri, Trevor De Kock, Pierre Jacqueline Odula, Program Coordinator, African Development photographs and valuable historical material. Van Peteghem, Benedict Kanu, Charles Lufumpa, Ous- Institute Joel Serunkuma Kibazo, Director of the Communication mane Dore, Claude N’kodia, Veronica Giardna, Anna and External Relations Department Bossman, Yousif Bashir Eltahir, and Elfateh Khalid. Ekwow Spio-Garbrah, Consultant, Communication and External May 2015 www.afdb.org Bakri Musa Abdul Karim, Division Manager, African De- Relations Department velopment Institute Thanks are also due to the family of the late first Pres- John Phillips, Lead Strategic Communications Adviser, ident of the African Development Bank, Mr. Mamoun Communication and External Relations Department Beheiry, who contributed some rare photographs and valuable historical Jacqueline Odula, Program Coordinator, African Devel- opment Institute

Ekwow Spio-Garbrah, Consultant, Communication and External Relations Department Photocredits

p2 Dreamstime.com; © Kierran Allen p18-19 Dreamstime.com; © Anna Omelchenko p72 AfDB ; Theriault p110 AfDB ; Onukogu p26 Dreamstime.com; © Ritu Jethani, © p73 AfDB p114 AfDB p8 Dreamstime.com; © Eduardo Lopez Coronado, Altaoosthuizen, AfDB ; Onukogu p74-75 AfDB ; Hoel p115 AfDB ; Potocki ; Hoel © Liana Petrenko, © Smandy, © Joshua Wanyama, p27 Dreamstime.com; © R S Vivek © Attila Jandi, © Joshua Resnick, © Hongqi Zhang p76-77 AfDB ; Potocki p116-117 Dreamstime.com; © Dmitry Pichugin p28-29 Dreamstime.com; © Kodym (aka Michael Zhang), © Hongqi Zhang (aka Michael p84 AfDB ; Potocki p126-27 AfDB Zhang), © Canonman29, © Hongqi Zhang (aka p31 AfDB ; Theriault , Hoel , Fernandez p85 AfDB ; Potocki p123 Dreamstime.com; © Redzaal Michael Zhang), © Surabky, © Anke Van Wyk, p32 Dreamstime.com; © Lcswart © Gabriel Robledo, © Savannah1969, © Szefei, 92 AfDB ; Potocki p125 Dreamstime.com; © David Snyder p37 AfDB © Malija, © Gillespaire, © Ferdinand Reus, p93 AfDB ; Onukogu p127 Dreamstime.com; © Ericsch p43 AfDB © Shuttlecock, © Mimagephotography, p96 AfDB ; Borgarello p128 AfDB ; Hoel ; Potocki p47 AfDB p9 Dreamstime.com; © Photographerlondon, p100 AfDB p128 129 AfDB © Mnsanthoshkumar, © A J Cotton, © David Snyder, p54 AfDB ; Potocki Designed and printed by Phoenix Design Aid A/S, a CO2 p101 AfDB ; Borgarello p130-31 AfDB © Paul Prescott, © Shannon Fagan, © Anke Van Wyk, neutral company accredited in the fields of quality (ISO p58 AfDB © Martin Applegate, © Nyul, © Monkey Business p104 AfDB 9001), environment (ISO 14001) and CSR (DS 49001) and p59 AfDB ; Fernandez Images, © Alextara, © Mark Sepple, © Katrina Brown, p105 AfDB approved provider of FSC™ certified products. Printed on © Tomi Tenetz, © Surabky, © Shuttlecock, © Giovanni p62-63 istockphoto.com; © Peeter Viisimaa environmentally friendly paper without chlorine and with p106 AfDB De Caro, © Smandy, © Vladgalenko, © Joshua p70-71 Dreamstime.com; © Daleen Loest vegetable-based inks. The printed matter is recyclable. p107 AfDB Wanyama Africa: Many faces One continent

6 7

1964 2014 8 9

1964 2014 The Bank’s Golden Jubilee is a momentous occasion for us all. 50 years is an important milestone for the African Development Bank, an institution that arose from the foresightedness of a handful of Africa’s leaders and civil servants in the early 1960s to become the great institution that we know today. I pay homage to Romeo Horton, the Committee of Nine, and all those moving spirits who founded this Bank. Without their dream of unity and cooperation, it would never have existed or prospered. I believe we have been faithful to their vision, as a dynamic institution, in a fast-moving continent, in a rapidly changing world.

From the beginning, the goal was to better the lives of the people of Africa. At no point have we ever lost sight of this endeavour. In fifty years of operations, our vocabulary has changed a great deal. It now includes words such as ‘fragile states’, ‘gender equality’, ‘private sector development’, ‘good governance’, ‘climate change’, and ‘inclusiveness.’ Yes, change has Donald Kaberuka been the only constant, and the Bank owes its longevity to its capacity to move with the times. President African Development Bank Group In 1964, the Bank had 10 staff, 26 member countries, and a capital base of some US$ 370 million. Three years later, in 1967, it had launched its first three projects.

50 years later in 2014, it had 1900 staff, 80 member countries, and a capital base of US$ 100 billion.

Foreword In the last few years, the Bank has focused on Africa’s economic transformation. It sees itself as being at the centre of the transformation of a continent whose time has come. It is fully conscious of the need to become a nimble and responsive institution in order to help unleash Africa’s potential. Much of that work implies mobilising others: increasing our role as a knowledge generator and a knowledge broker, and above all enhancing our capacity to leverage resources to the content.

Let me acknowledge and thank all the people and institutions with whom we have shared our journey. I thank our Member countries, in the form of our Boards of Governors and of Executive Directors. I thank our many development partners. Above all, I thank the management and staff of the Bank over the past five decades. I salute all those who have gone before, and all those who still carry the torch forward. We are thankful for your skills, your dedication, and your humanity.

11

2014

African Development Bank 1964-2014 10 Foreword 50 years at the service of Africa 16 Preface

The African Development 22 Bank Group in figures

The African Development 24 Bank Group presence in Africa

The African Development 34 Bank Group timeline

To the 1960s: High hopes, 38 great challenges

46 1964-1979: The formative years

58 1980-1995: Going global Contents 64 Offshoots and partners of the Bank 76 1995-2005: Revitalizing the Bank

2005 and beyond: An enhanced 84 franchise value

110 Bank projects

2014: the Bank returns home 114 to Abidjan

26 30 52 56 70 74 82 90 94 98 102 104 Water Water Health Energy Gender Transport Education Agriculture Agriculture Governance Green growth Green Private sector Inclusive growth Cross-border cooperation Cross-border This book has been written to mark the 50th Anniversary of the founding of the African Development Bank in 1964. It aims to highlight some of the important landmarks in the history of the institution, while also recognizing the efforts of the many people who contributed to its establishment and subsequent development. We have tried to present some of the dynamism and resilience that have characterised the institution over five decades, and that continue to push its work forward.

This Golden Jubilee is an important landmark for the African Development Bank and the rest of the continent. The Bank grew out of Africa’s quest for solidarity and cooperation during the 1960s, and has become the pre-eminent development finance institution on the continent. It has gone through various stages in its life cycle. Still, the Bank remained faithful to the objectives set by its founders – promoting economic integration, reducing poverty and raising Africa’s standing in the world.

The Bank has since increased its resources many times over, embarked on projects and programs of increasing complexity, and provided technical assistance and policy advice to many regional member countries. It has become the partner of choice in promoting Africa’s development, with a large portfolio distributed across Africa.

In 50 years, there has been an exponential growth in the demand for the Bank’s financial support in a range of areas, including roads, energy, water supply, schools, new health facilities, ICT and other communication infrastructure, and governance and accountability in the public sector. The creation of the African Development Fund in 1973 and the Nigeria Preface Trust Fund in 1976 expanded the institution’s resource base and led to the creation of the African Development Bank Group. Subsequently, the ownership of the Bank was extended to non-regional member countries, of which there are now 26.

The Bank, according to its clients and peers, has been innovative, flexible and able to evolve continuously to meet the changing needs of its regional membership. The past decade, in particular, saw the introduction of a Bank strategy that emphasized selectivity and focus, with emphasis on areas where the Bank has comparative advantage. The Bank has also sought to leverage its resources better to attract the private sector. Equally important has been the Bank’s emphasis on policy dialogue and sharing of knowledge with its clients, enabling countries to put their resources to the best possible use. From exclusive reliance on lending to finance projects in the past, the Bank Group now employs a wide variety of financing instruments that include loans, grants and partial risk guarantees.

With the launch of its Ten Year Strategy for 2013-2022, entitled “At the Centre of Africa’s Transformation”, the Bank has demonstrated its commitment to support the long-term growth of the continent. This will require further emphasis on regional economic integration, including support to power pools, regional transport and port services, as well as policy dialogue targeted at regulatory reforms and enhancing competitiveness. Above all, the Bank will seek to ensure that Africa’s growth is inclusive, while also increasingly paying due attention to the environment.

This book is a brief narration of the Bank’s fifty years at the service of Africa, focusing on key moments in the life of the institution. During this time, Africa has undergone many economic and political changes, while its demand for financial as well as advisory services has expanded. The Bank will continue to respond to Africa’s needs in the decades ahead, undertaking internal reforms to ensure that it remains agile and relevant. We also hope that the book reveals something of that indomitable spirit on the continent that has inspired our efforts, and that will carry us forward for the years ahead.

17

2014

The African Regional member countries

Algeria Angola Benin Botswana Burkina Faso Burundi Cameroon Cabo Verde Central African Republic Development September 1964 June 1980 September 1964 March 1972 September 1964 October 1968 September 1964 April 1976 August 1970 Chad Comoros Congo (DRC) Congo Côte d’Ivoire Djibouti Egypt Equatorial Guinea Eritrea Bank Group August 1968 May 1976 September 1964 September 1964 September 1964 May 1978 September 1964 June 1975 May 1994 Ethiopia Gabon Gambia Ghana Guinea-Bissau Guinea Kenya Lesotho Liberia September 1964 September 1972 July 1973 September 1964 May 1975 September 1964 September 1964 July 1973 September 1964

Libya Madagascar Malawi Mali Mauritania Mauritius Morocco Mozambique Namibia July 1972 May 1976 July 1966 September 1964 September 1964 January 1974 September 1964 June 1976 May 1991

Niger Nigeria Rwanda São Tomé and Príncipe Senegal Seychelles Sierra Leone Somalia South Africa September 1964 September 1964 January 1965 April 1977 September 1964 April 1977 September 1964 October 1964 December 1995

South Sudan Sudan Swaziland Tanzania Togo Tunisia Uganda Zambia Zimbabwe April 2015 September 1964 July 1971 September 1964 September 1964 October 1964 September 1964 September 1966 June 1980

Non-regional member countries

Argentina Austria Belgium Brazil Canada China Denmark Finland France July 1985 March 1983 March 1983 March 1983 December 1982 May 1985 December 1982 December 1982 December 1982

Germany India Italy Japan Kuwait Luxembourg Netherlands Norway Portugal March 1983 December 1983 December 1982 February 1983 December 1982 May 2014 January 1983 December 1982 December 1982

Regional member countries Saudi Arabia South Korea Spain Sweden Switzerland Turkey United Kingdom United States of America December 1982 Non-regional member countries December 1983 March 1984 December 1982 December 1982 October 2013 April 1983 March 1983

20 21

1964 2014 The African

Constituent Institutions The African Development Bank (ADB) The African Development Fund (ADF) Development The Nigeria Trust Fund (NTF) Shareholders 54 African countries 26 non-African countries

Mission To promote sustainable economic growth and Bank Group reduce poverty in Africa

Authorized Capital, December 2014 US$ 97 billion in figures Subscribed Capital, December 2014 US$ 94 billion Paid-up Capital, December 2014 US$ 7 billion

The African Development Bank Group is the Cumulative Bank Group operations Callable Capital, December 2014 US$ 87 billion continent’s largest development finance institution. It 1967-2014 (in milion USD)

is also known as a regional multilateral development 110 000 institution. 100 000 Total Reserves, December 2014 US$ 4 billion 90 000 Its prime objectives are to mobilize financial resources 80 000 70 000 Approved Operations, 2014, of which 232 Approved Operations to support sustainable economic and social 60 000 development in Africa, and to support economic 50 000 operations totalling US$ 7.3 billion (Bank Group) integration. To do this, the Bank raises funds 40 000 from inside and outside the continent to finance 30 000 << 20 000 Loans US$ 5.5 billion (84 operations) development projects such as roads, hospitals and 10 000 Grants US$ 1.1 billion (98 operations) schools, agricultural projects and electricity. 0

in total Group Bank Bank Development African Fund Development African Fund Trust Nigeria Equity Participation US$ 192 million (6 operations) The highest governing body of the Bank is the Board Special Funds US$ 354 million (39 operations) of Governors, whose members are 80 Ministers representing the Member Countries. It also has a Loan and Grant Approvals by Sector, 2014 Infrastructure: US$ 3.62 billion (54.4 percent) resident Board of 20 Executive Directors who are (Bank Group) Transport: US$ 1.33 billion (20.4 %) elected to represent all the Bank’s shareholders. Cumulative Bank Group Loan and Grant Approvals The Bank is headed by a President, who is the Chief by Sector,1967-2014 (%) Water & sanitation: US$ 375 million (5.7 %) Loan and Grant Approvals by Sector Executive Officer of the Bank as well as Chair of 30 Energy: US$ 1.91 billion (29.3 %) the Board. The President manages the day-to-day Agriculture & Rural development: business of the Bank and determines the functions, US$ 707.51 million (10.8 %) responsibilities and internal structure of its various 20 Education, Health & Social: organizational units. The President is elected for a US$ 540.53 million (8.3 %) term of five years by the Board of Governors and Finance: US$ 1.17 billion (17.9 %) serves for a maximum of 10 years. 10 Multisector: US$ 387.39 million (5.9 %) Other sectors: US$ 104 million (1.6 %) 0 Agriculture Transport Multisector Finance & Social Education, Health Energy Water & Sanitation Industry & Mining Communication Other Sectors Total Loan and Grants Approvals, 1967–2014 4185 loans and grants totalling US$ 103.11 billion

22 23

1964 2014 TUNISIA MOROCCO

ALGERIA LIBYA EGYPT

Western Sahara

MAURITANIA MALI

NIGER ERITREA CHAD SENEGAL SUDAN GAMBIA BURKINA GUINEA BISSAU FASO DJIBOUTI GUINEA BENIN ALGIERS TUNIS CAPE VERDEThe African NIGERIA ETHIOPIA SOMALIA SIERRA LEONE TOGO RABAT COTE GHANA CENTRAL AFRICAN SOUTH SUDAN D’IVOIRE REPUBLIC LIBERIA CAMEROON CAIRO DevelopmentEQUATORIAL UGANDA GUINEA

CONGO KENYA SAO TOME GABON AND PRINCIPE CONGO RWANDA

(DRC) BURUNDI Bank Group SEYCHELLES NOUAKCHOTT TANZANIA ZANZIBAR

DAKAR KHARTOUM

BAMAKO OUAGADOUGOU presence COMOROS BISSAU N’DJAMENA ANGOLA CONAKRY ZAMBIA ADDIS ABABA FREETOWN ABUJA MALAWI COTONOU MONROVIA LOMÉ MAURITIUS ABIDJAN ACCRA BANGUI JUBA MOZAMBIQUE YAOUNDE in Africa ZIMBABWE NAMIBIA MADAGASCAR SÃO TOMÉ KAMPALA LIBREVILLE KIGALI BOTSWANA NAIROBI HEADQUARTERS BUJUMBURA KINSHASA FIELD OFFICES SWAZILAND

DAR ES SALAAM LUANDA REGIONAL RESOURCE CENTERS LESOTHO SOUTH AFRICA CUSTOMIZED FIELD PRESENCE LILONGWE

LUSAKA

HARARE ANTANANARIVO PORT LOUIS

HEADQUARTERS

MAPUTO FIELD OFFICES PRETORIA

REGIONAL RESOURCE CENTERS

CUSTOMIZED FIELD PRESENCE

24 25

1964 2014 African Development Bank 1964-2014 50 years at the service of Africa Inclusive growth

26 27

1964 2014

African Development Bank 1964-2014 50 years at the service of Africa Green growth

30 31

1964 2014 Fighting poverty, spurring economic and social development, and promoting trade between African nations and with other regions of the world.

33

2014 1964 1966 1967 1969 1974 1976 1979

Bank loans/grants: US$ 7.9 million Bank staff: 10 2nd General Capital Increase Bank members: 26 (US$ 556 million) Bank loans/grants: ADF-I Replenishment of US$ 2.3 million US$ 327 million (to 1978)

Bank loans/grants: September 10: Birth of AfDB US$ 135.5 million November 4-7: Board of 1st General Capital Increase Bank loans/grants: US$ 519.9 million Governors inaugural meeting (US$ 206 million) ADF-II Replenishment of US$ 712 million in Lagos, Nigeria (to 1981) Mamoun Beheiry (Sudan) First Bank projects elected 1st AfDB President in Agriculture and in Water supply Kwamé Donkor Fordwor (Ghana) elected 3rd President

Board of Governors 1st meeting in Abidjan ADF began operations July: official start of Conference of Ministers operational activities established committee Abdelwahab Labidi Goodall Gondwe (Malawi) from 9 countries to (Tunisia) elected Acting President prepare for the creation 2nd President of AfDB

The African Development Bank Group timeline 1962 1963 1964 1965 1966 1967 1968 1969 1970 1972 1974 1975 1976 1977 1979

First Bank projects in Power supply & The Board of Governors March: Headquarters in Finance approved in principle the opened in Abidjan, admission of non-regional Côte d’Ivoire countries to the Bank’s membership Negotiation with non-regional countries began

3rd meeting of Board of African Development Fund Governors approved first (ADF) created two Bank operations (in Sierra Leone & Kenya)

The Board of Governors approved establishment In Khartoum, on 4 August, of the Nigeria Trust Fund 23 states signed the Agreement Establishing First Bank projects in the ADB Education and Health sectors

AFRICA 300 million people US$ 39 billion GDP Second oil price shock

34 1964 1979 1964 1981 1982 1984 1985 1987 1988 1989 1991 1994 1996 1998 1999 2002 2004 2005 2008 2009 2010 2012 2013 2014

Bank loans/grants: Bank members: 77 Bank loans/grants: Bank loans/grants: US$ 11.8 billion ADF-XII Replenishment of 3rd General Capital Increase Bank loans/grants: Bank staff: 1100 Bank loans/grants: US$ 1.6 billion US$ 2.7 billion US$ 9.5 billion (to 2013) (US$ 1.6 billion) US$ 879.3 million Number of operations US$ 1.4 billion ADF-IX Replenishment of Bank members: 80 ADF-VIII Replenishment ADF-XI Replenishment of (since 1967): 1291 US$ 3.5 billion (to 2004) Bank staff: 1900 of US$ 3.4 billion (to 2001) US$ 8.9 billion (to 2010) Bank loans/grants Number of operations ADF-III Replenishment of (1989): US$ 2.8 billion (since 1967): 4185 US$ 1 billion (to 1984) ADF-X Replenishment of Bank loans/grants 5th General Capital ADF-VII Replenishment of US$ 5.4 billion (to 2007) (2014) US$ 6.5 billion Increase of 6th General Capital Increase ADF-IV Replenishment of US$ 3.2 billion (to 1998) US$ 8.3 billion of US$ 64 billion US$ 1.5 billion (to 1987) ADF-VI Replenishment of Special fund of First Annual Meetings US$ 3.4 billion (to 1993) US$ 420 million established as outside Africa in Valencia, ADF-XIII Replenishment of supplement to ADF-VII Spain US$ 7.3 billion (to 2016) Willa Mung’Omba Approval of US$ 13 billion (Zambia), elected lending program 4th President ADF-V Replenishment of US$ 2.8 billion (to 1990) Appointment of Bank adopted new vision to Bodour Abu-Affan (Sudan) promote economic growth Donald Kaberuka (Rwanda) Bank approved Ten Year as first woman Vice President. with equity and poverty elected 7th Bank President. Strategy (2013-2022) with First Bank projects in reduction as central goals Kaberuka established High the objectives of inclusive growth and transition to 4th General Capital Increase Environment Sector Level Panel of 13 to prepare a green growth. of US$ 22.3 billion framework for AfDB Medium (200% increase) Term Strategy of 2008-2012

Babacar Ndiaye re-elected for a second term

1980 1981 1982 1983 1984 1985 1987 1988 1989 1990 1991 1992 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2008 2009 2010 2011 2012 2013 2014

25th anniversary celebrations – Committee of Ten Report on Omar Kabbaj re-elected AfDB celebrates its the AfDB’s future for a second term. return to Abidjan, Côte d’Ivoire, South Africa and Botswana First Bank projects in Donald Kaberuka after 11 years 17 Non-Regional Members first African countries to urban development re-elected for a attended their first AfDB contribute to ADF. second term Group Annual Meetings Agriculture, private sector as full Members development and human capital development identified as new strategic Establishment of Regional sectors for Bank lending Resource Centers in South Bank temporarily relocated to Africa & Kenya. Tunisia because of growing First Bank projects Bank wins two US Treasury political instability in Côte in Micro-Finance Development Impact Awards Babacar Ndiaye d’Ivoire (Senegal) elected (projects in Uganda & Côte 5th President Omar Kabbaj d’Ivoire) (Morocco) elected 6th President

Africa’s population AFRICA reaches 1 billion AFRICA 612 million people The United Nations adopt the Arab Spring 1,134 million people US$ 495 billion GDP Millennium Development Goals International Financial Crisis US$ 2,477 billion GDP

1989 2000 2008 2010 2011 2014 To the 1960s: High hopes, great challenges

The Bank began as an idea but has emerged as an important multilateral development organization.

39

2014 To the 1960s: High hopes, great challenges

The African Development Bank began as a hopeful idea, arising from the post-independence aspirations of African countries. Half a century later, it has emerged as Africa’s most successful 1964: the birth of Africa’s Bank expression of its goal of regional economic integration. The journey towards the establishment of the African Development Bank began as early Before the 1950s, African countries – with the exception of Liberia, Ethiopia and Egypt – were as 1958, at the four-day Tubman-Nkrumah-Touré Conference, named after the Presidents either European colonies or, as in Southern Africa, living under apartheid. Independence of Liberia, Ghana and Guinea, held in the village of Saniquelle in Liberia. In their final changed the mood entirely, and there were hopes for rapid development. However, the post- communiqué, the Presidents committed to do to everything in their power to speed up independence years were dominated by state-led economic models, one-party states, and Africa’s independence and to develop institutions on the basis of continental solidarity. increasingly by military dictatorships. The Cold War that pervaded these years also limited the policy choices available to African leaders. Institutional weaknesses, corruption and poverty Three other conferences – held in Accra in December 1958, Tunis in January 1960, and Cairo became entrenched. It seemed that less than a decade after independence, Africa’s socio- in March 1961 – solidified the idea of the African Development Bank. They explicitly called economic development was in reverse. for the setting up of institutions for economic cooperation. In Tunis, the economic and social resolution stated that: Besides, newly independent African countries faced numerous economic problems. They depended on a few primary commodities, mainly agriculture, and had weak export “Considering the under-developed state of the African countries, which was the result of capabilities. Infrastructure was largely under-developed, and there was a serious lack of the colonial system and foreign domination; considering the departmentalization and lack of technical skills. High population growth was an additional burden, while weak government harmony existing in the African economies and the inadequate technical cadres and finance; finances limited the ability to provide social services on a large scale. Rural-urban migration and considering that economic growth and development constitutes the surest guarantee emptied the countryside of able-bodied youth, while shanty towns with inadequate access to of the freedom of the African countries…”, the participants proposed, “the creation by all utilities, including water and sanitation services, became a common feature of Africa’s cities. African states, of a common organization for the conduct of finance and commerce, and centres of social and economic research.”

Following these meetings, the Liberian government proposed the setting up of an African Development Bank. Romeo Horton, a Liberian, was subsequently requested by his government to solicit support for the establishment of an African Development Bank. Following meetings with 16 African Heads of State, he reported that they were without hesitation committed to the creation of the Bank.

The proposal finally reached the UNECA Under-Secretary General, Mr. Mekki Abass, who submitted it to the Fourth Conference of the African Ministers of Finance, during their meeting in Addis Ababa in February 1961. The Conference adopted the proposal as Resolution 27 (III) on the need for an African development bank.

In March 1962, the Conference of Ministers established a committee from nine countries to undertake the preparatory work for the establishment of the Bank. The mandate of the Committee was to consult African and non-African governments, and to come up with recommendations on the financial and administrative structure of the proposed bank, including the amount of its authorized capital, and the means and terms of its financing from African or non-African sources.

40 41

1964 2014 To the 1960s: Minutes of the Committee of Nine High hopes, great challenges

1962: the Committee of Nine at work September 1964: the Agreement coming

The first meeting of the Committee of Nine was convened in June 1962 in Monrovia, Liberia, into force in appreciation of the Liberian government’s role in initiating the proposal. The Committee set up delegations to visit African and non-African countries. Mr. Horton headed the delegation In August 1963, the Committee submitted a comprehensive report to the Conference of the which visited Japan, the US and some eastern European countries. Mr. Mamoun Beheiry of Ministers of Finance at its plenary session held in Khartoum. The Conference approved the Sudan led the delegation to Europe, taking in the Netherlands, France, West Germany and Draft Agreement Establishing the ADB, and entrusted the Committee of Nine to carry out the the United Kingdom. preparatory work for the establishment of the Bank.

While African countries showed strong support for the proposal, non-African governments Twenty-three states signed the Agreement in Khartoum on 4 August 1963. Later on, eight and institutions were sceptical. They generally adopted an attitude of wait-and-see. But some more countries signed at the UN Headquarters in New York. The Agreement came into force countries and international financial executives were far from convinced. Others thought, not on 10 September 1964. surprisingly for the time, that an African bank would add no value. The Committee of Nine delegates assured the sceptics that an African bank would complement rather than compete The Agreement became the Charter of the Bank, which explained its purpose, functions, with existing international financial institutions, notably the World Bank. They argued that a governance and organization. The Preamble of the Agreement partly echoed the motivation viable African financial institution would enhance African unity and development by funding for the establishment of the Bank. It states that: multilateral and continental projects. “The Governments on whose behalf the Agreement was signed were determined to Despite the cautious reaction from Western quarters, two prominent European economists strengthen African solidarity by means of economic cooperation between African states, backed the idea of an African bank. Sir Hans Singer, a renowned development economist and therefore agreed to establish hereby the African Development Bank with the objective within the United Nations system, and Professor Jan Tinbergen, a Dutch economist of of contributing to the sustainable development and social progress of the African member note, were in full support of the project. Sir Hans suggested that Africa needed additional countries”. finances and additional technical power to cement its economic base. The existence of an African bank would add to the financial resources and technical support needed by African The Agreement restricted membership to independent African states. The initial authorized countries, but it would not replace the support being given by others. The continent’s needs capital stock of the Bank was some US$ 370 million. were extensive. Professor Tinbergen, co-Nobel Prize Laureate in Economics, argued that the benefits of economic cooperation among African countries would be furthered by the proposed African bank.

42

1964 To the 1960s: High hopes, great challenges

November 1964: the inaugural meeting of the Board of Governors

Following the entry into force of the Agreement Establishing the Bank, an inaugural meeting of the Board of Governors was held in Lagos on 4-7 November 1964. The main agenda items of the meeting were the choice of the headquarters, the election of the first president of the Bank, and the nomination of the members of the Board of Directors.

The meeting chose Abidjan, the capital of Côte d’Ivoire, to host the Bank’s headquarters. The decision was reached through consensus as an expression of geographical, linguistic and political balancing. Abidjan was also considered a suitable place for the new institution on several other grounds, including its status as a cosmopolitan city, its good infrastructure, and its accessibility to the rest of Africa and the world.

Mr. Mamoun Beheiry, a Sudanese national, was elected as the first President of the Bank for a five-year term from 1964 to 1969. An Oxford University graduate in Politics, Philosophy and Economics, he had had a distinguished career as a civil servant and governor of the Central Bank of Sudan, and been a member of the Committee of Nine.

44 1964 45 1964 2014 1964-1979: the formative years

Two years after the inaugural meeting in Lagos, the Bank was ready for business. In 1967, the Board of Directors approved the first two operations of the Bank.

47

2014 1964-1979: the formative years

Following his election as President, Mr. Mamoun Beheiry spent a short period in Addis The next challenge for the Bank’s senior management was to assemble an able cadre Ababa, benefiting from the human and physical infrastructure of the ECA and the OAU as of African professionals. The Bank needed skilled Africans, not only to perform its core he addressed the issues of establishing the Bank. The President subsequently moved to operational duties, but also to contribute to instituting the procedures and modalities of Abidjan in 1965 and officially inaugurated the Headquarters. Assisted by Vice Presidents, he work. There was a need for a wide range of expertise in a number of areas but particularly embarked immediately on recruiting staff and following up on the subscriptions of the Bank’s in project management, economics, finance, accounting, and human resources. However, capital. African countries at the time were short of such skills. The few trained and experienced individuals available were needed in their own countries to indigenize the civil service and the Two years after the inaugural meeting in Lagos, the Bank was ready for business. In 1967, professional positions, which had formerly been held by colonial personnel. By 1970, the the Board of Directors approved the first two operations of the Bank. The first was an equity total number of staff in the Bank was 130, including support staff. Since the Bank was not participation in the National Development Bank of Sierra Leone, and the second a loan to paying competitively compared to other international agencies, there was a high turnover finance the construction of a road in Kenya. among its employees, some of whom quickly returned to their government jobs, or joined other organizations. The pace of approving loans was slow at the beginning. In addition, when requests for finance accumulated, management faced the reality of the meagre resources at the Bank. At senior management level, the Board of Governors had selected four vice-presidents, all Between 1967 and 1973, the Bank only approved a handful of projects. This prompted its of whom had held high positions in their home governments. They included Mansour Moala, management to look for more resources on softer terms, and the efforts culminated in the an ex-Minister and the first Inspector of Finance in Tunisia; Ola Vincent, ex-Governor of the establishment of two other windows of the Bank Group: the African Development Fund (ADF) Central Bank of Nigeria; Louis Negre, ex-Governor of the Central Bank of Mali; and Aziz Al- and the Nigeria Trust Fund (NTF). Subsequently, the level of operations started to rise. Amoudi, a prominent Kenyan civil servant. A Pakistani economist, Mr. Latif Qureshi, was also recruited to assist in planning and resource mobilization.

The Board of Governors had already selected the members of the first Board of Directors of Mamoun Beheiry Abdelwahab Labidi Kwame D. Fordwor Installation at the new Headquarters the Bank, some of whom were members of the Committee of Nine. Sudan Tunisia Ghana The Bank offices were temporarily hosted by UNECA in Addis Ababa. One of the first tasks From the outset, the leaders of the Bank were conscious of the value of building partnerships President President President facing President Beheiry was the installation of the Bank in Côte d’Ivoire. President Félix with other African and UN organizations. There was also a strategic focus on strengthening November 1964 to August 1970 August 1970 to May 1976 May 1976 to July 1979 Houphouët-Boigny was grateful for the selection of his country as the seat of the Bank, and ties with the two most important existing pan-African institutions, the OAU and the ECA. was eager to help it settle in Abidjan. Beheiry wrote that “the tempo was slow, sometimes extremely slow, but patience and understanding helped and eventually matters moved”. In addition to several meetings with Robert Gardiner, head of the ECA, the President also After a short period of temporary accommodation at the building of the National Assembly held meetings with Diallo Telli, the first Secretary General of the OAU, and signed cooperative of Côte d’Ivoire, the Bank soon moved to rented offices in the Noor El Hayat Building in the agreements with FAO, UNESCO and UNDP. The UNDP approved a grant of $500,000 to central business district of Abidjan. The opening of the headquarters in Abidjan took place help with the challenge of housing Bank staff in Abidjan. The World Bank, which had set up in March 1965. an office in Abidjan, offered to accommodate the Bank in its early days. UNDP also provided the Bank with technical assistance through financing the establishment of a “Pre-investment In the early days, Mr. Beheiry felt the growing political pressures on the institution. However, Unit”. FAO and UNESCO seconded staff to the Bank. USAID, Canada, the Netherlands and determined to resist these pressures, he set out to lay the foundations for an efficient and Belgium provided technical assistance support in the area of project appraisal. well-governed bank. He wrote that the financial constraints “should not overrule idealism, dedication, honesty and clarity of purpose, and the potential of qualifying as part of the mainstream of international financial institutions”. The President of the Bank saw his generation – the first post-colonial educated Africans – as having “a sense of service, of the inviolability and sanctity of public funds, of objectivity and honesty, clarity of purpose, commitment and promptness.”

48 49

1964 2014 By the end of 1970, the Bank’s total commitments to development projects US$ amounted to about 24.4

million 51 2014 African Development Bank 1964-2014 Transport 50 years at the service of Africa From economic growth … to economic transformation

Building & rebuilding for today …. looking ahead to the needs of tomorrow 1964-1979: the formative years

In the early years, the Bank supported regional organizations such as the East African 1966: operations kick off Development Bank, the Mano River Union, CEAO and ECOWAS. It also assisted in the establishment of Africa Re-Insurance in 1976. In 1969, the Bank helped establish the Societé The official start of operational activities was July 1966, and the first approval of a project by Internationale Financière pour les Investissements et le Developpement en Afrique (SIFIDA). the Board of Directors was made in 1967. The Bank approved an equity participation in the It then also financed the construction of Régie du Chemin de Fer Abidjan-Niger in 1972, the National Development Bank of Sierra Leone and extended a loan of US$ 2.3 million to the Mano River Bridge in 1973, and the Societé des Ciments d’Afrique de l’Ouest in 1975. Government of Kenya to finance a road project. In 1968 and 1969, six more projects were approved, for a total of US$ 11.51 million. The countries that benefited from these projects were Burkina Faso (then Upper Volta), Kenya, Liberia, Malawi, Mali, Morocco, Tunisia, Sierra Leone, Uganda. There were also two equity participations in the East African Development 1973-1976: the Bank opens two Bank, and the National Development Bank of Sierra Leone. By the end of 1970, the Bank’s total commitments amounted to about US$ 24.4 million. new windows

Several factors contributed to the slow start of operations. First, the process of establishing The idea of creating special funds first surfaced in 1966, when the ADB forwarded a proposal the ADB was slow: it took two years. Second, in the first few years the Bank could not find to 27 countries outside Africa for a multi-national Special Fund. The Bank’s approach to the viable projects to finance. Since the establishment of the Bank was based on the need to fill non-African countries was endorsed by the Board of Governors at their third meeting, which Africa’s financial resource gap, the lack of good projects presented it with a real challenge. took place in August 1967. The role of an African development fund would be to establish a ‘soft’ window for lower income countries. In 1970, the Bank’s President was re-elected for a second term. However, he resigned two months into his second term of office, apparently because of a disagreement with the Board The African Development Fund was formally inaugurated at the ninth Annual Meetings of the on organizational issues. Vice President Abdelwahab Labidi, a Tunisian national, was tasked Bank in Lusaka in July 1973. The Fund began operations on August 1, 1973 and provided to act for a five-month period. In 1970, at the Bank’s Annual Meeting held in Fort-Lamy (now its first loan in January 1974. Initially, all African member countries were eligible to access N’Djamena) in Chad, Mr. Labidi was confirmed by election as the Second President of the ADF resources, with priority given to the poorest countries. Bank for a five-year term. In 1975, the Nigerian government expressed its interest in providing resources to the “less Early in his presidency, Mr. Labidi set a lending target of US$ 25 million per year over three favoured” African countries. Consequently, in April 1976 the Board of Governors adopted the years. The target was met. The Bank intensified its contacts and search for business and got Agreement Establishing the Nigeria Trust Fund (NTF). more project proposals. From 1971 to 1973, the ADB approved 16 new projects, amounting to a total commitment of about US$ 105 million. The plan was to continue extending loans, The purpose of the NTF is to assist the development efforts of the ADB members, particularly with special focus on the six Sahelian countries: Burkina Faso (formerly Upper Volta), Chad, low-income countries, by extending loans on softer terms than the conventional terms of the Mali, Mauritania, Niger, Senegal. The second priority level was a group of other poor countries ADB. In particular, the NTF Agreement maintains that the resources of the Fund should be including Benin (formerly Dahomey), Botswana, the Central African Republic, Lesotho, devoted primarily to long-term project financing in the fields of agriculture, including livestock, Malawi, Sierra Leone, Somalia, Sudan, Swaziland, and Tanzania. The Sahelian countries fishery, forestry, health, transport, water supply and other areas. It also emphasized projects were hit hard by drought and required both humanitarian assistance and long-term financing that benefit more than one country. to improve their food security. The whole continent was also subjected to strong external pressures because of the oil price shocks in 1973 and 1979. The establishment of the ADF and the NTF led to a significant increase in the Bank Group’s lending in the 1970s. Additionally, the Bank Group, the parent institution, was able to secure While Africa’s need for financial support increased, practically all the Bank’s resources had a US$ 65 million loan in 1975 and floated bonds in Kuwait and on the Eurobond market in been committed by the end of 1973. Furthermore, some member countries had not paid 1976. Cumulative lending between 1971 and 1980 was approximately US$ 2,510 million, their capital subscriptions. Faced with these difficulties, the Bank was obliged to solicit for with a yearly average of US$ 250 million. special funds from non-African countries. The Bank Agreement allows it to establish special funds if authorized by the Board of Governors. By the end of the 1970s, the three windows of the Bank Group – the ADB, the ADF and the NTF – were well established and functioning. The next chapter traces the opening up of the capital of the Bank to non-African countries.

54 197 9 55 1964 2014 African Development Bank 1964-2014 Energy 50 years at the service of Africa From economic growth … to economic transformation

Meeting today’s needs … re-imagining the energy supply of the future

56 57

1964 2014 1980-1995: Going global

The decision to open the Bank’s capital to non-regional states improved the Bank’s capital structure and the resources available for operations.

59

2014 1980-1995: Going global

60 61

1964 2014 1980-1995: Going global

During the 1980s, most of the African countries, which constituted ADB’s borrowing clients, faced serious economic difficulties. The two oil price shocks of 1973 and 1979 had great More members in the queue adverse impact on African economies, and these price shocks persisted up to the 1980s. The subsequent global recession adversely affected commodity prices for African producers. The establishment of the ADF opened the door for non-African countries to become partners The volatile exchange rates and high interest rates throughout the 1980s caused serious of the Bank Group. However, these countries were still not shareholders of the Bank. Since debt servicing difficulties, and led to defaults in repayments by developing countries, many its inception in 1964, there had been hot debate among African countries over the idea of of them in Africa. admitting non-regional countries to the membership of the Bank. At the time it seemed like a reversal of their newly-earned independence. Mr. Wila D. Mung’omba was elected fourth President in 1980, following a caretaker Presidency of six months by Mr. Goodall Gondwe of Malawi. During Mung’omba’s period in office, Africa’s It was also evident that, with its limited capital base, the Bank would not be able to borrow economic difficulties were exacerbated by prolonged periods of drought and slow growth. money from the international markets at favourable rates. The weak economic situation of These circumstances pushed African countries towards seeking external resources, and its African member states made it even more difficult for the Bank to have a strong financial eventually the Bank decided to open its capital to non-African members. Towards the mid- position in these markets. Eventually there was almost universal agreement that the Bank 1980s, many African countries started to make adjustments in their economies to meet the would not meet Africa’s financial needs unless more resources were mobilized. economic challenges. The Bank, too, had to respond to the emerging economic situations by amending its lending policies to provide financial assistance to help its Member Countries. In 1977, the Board of Governors approved in principle the admission of non-regional countries to the Bank’s membership. The management of the Bank – under the Presidency In 1985, Mr. Babacar N’diaye of Senegal was elected fifth President, and would subsequently of Dr. Kwame Fordwor of Ghana, who had been elected in 1976 – engaged in prolonged be re-elected for a second term in 1990. President N’diaye’s record included the expansion of negotiations over the admission of the non-regional countries. However, the Agreement the Bank’s lending capacity and the setting up of a unit for funding private sector operations. Establishing the Bank was only amended in 1982, to admit the non-regional members. He was also instrumental in the establishment of a number of initiatives including Shelter Wila D. Mung’omba Babacar N’diaye Afrique, AFREXIMBANK and the Africa Business Forum, and in increasing the Bank’s equity The admission of the non-regional countries helped to improve the financial position of the Bank, and consequently its rating by international financial markets. The ADB is rated by Zambia Senegal participation in general. President N’diaye also appointed Mrs. Badour Abu Affan as the first female vice president for operations, reflecting his commitment to bridging the gender gap. four major international rating agencies to determine its creditworthiness. The opening up President President of its capital also required the Bank to adhere to sound financial management principles and June 1980 to May 1985 May 1985 to August 1995 to commit to high quality operations, and to prove to the rating agencies - as well as to its members - that its resources will be put to good use.

Mrs. Badour Abu Affan Sudan First female vice-president of operations

62 1995 63 1964 2014 Offshoots They include: and partners

Africa50 African Capacity African Export-Import Africa Guarantee Fund Africa Reinsurance of the Bank Building Foundation Bank (Afreximbank) Corporation The African Development Bank has established, or invested in, Africa Trade Insurance Association of African Development African Water Facility African Legal Support Banque Ouest Africaine de a number of key organisations Agency (ATI) Finance Institution (AADFI) Facility (ALSF) Développement (BOAD) working in the service of African development

Network for Environment and Shelter Afrique Sustainable Development in Africa African Business Round Table African Management Services Banque de Developpement des Etats (NESDA) Company (AMSCO) de l’Afrique Centrale (BDEAC)

Federation of African Consultants (FECA) The Infrastructure Consortium K-REP Bank PTA Bank PTA Reinsurance Federation of African & Arab for Africa Company (ZEP RE) Consultants (FCAA)

64 65

1964 2014 With the entry of new shareholders and General Capital Increases the Bank’s authorized capital increased from US$ 1.6 billion in 1981 to US$ 6.3 in 1983. In 1987, the capital increased 200% to reach US$ 22.3

billion 67 2014

African Development Bank 1964-2014 Water 50 years at the service of Africa From economic growth … to economic transformation

Giving access to clean water for everyone … setting up long term water resources management

70 71

1964 2014 New picture

73

2014 African Development Bank 1964-2014 Governance 50 years at the service of Africa From economic growth … to economic transformation

Building government capacity … delivering quality services for citizens

74 75

1964 2014 1995-2005: revitalizing the Bank

Country programming was enhanced by selective and well-targeted macroeconomic and sector analyses, as well as policy and institutional assessments for individual countries.

77

2014 1995-2005: revitalizing the Bank

In 1995, Mr. Omar Kabbaj was elected sixth President of the Bank. President Kabbaj, a Among the important governance reforms during Kabbaj’s presidency was the restriction Moroccan national, served two terms between 1995 and 2005. He came to the presidency on the number of times the President and Members of the Board of Directors could be re- with years of experience as a Minister and as a staff member of the World Bank and the IMF. elected. Additionally, the President was empowered to reform procedures for the selection of staff and senior managers, including the Vice-Presidents. The Bank also undertook a major At the operational level, Mr. Kabbaj was confronted with two major challenges at the beginning organizational reform in 1996. This was subsequently expanded in 2002. The objective was of his term of office. First, a number of African economies were in difficulties, and this had to re-establish the credibility of the Bank and restore external confidence in it. led to an arrears problem at the Bank. Second, the performance of the Bank’s portfolio had worsened, partly as a result of financial difficulties suffered by some of the borrowing Other measures included strengthening the Bank’s sanctions policy on borrowers who fail to countries, and partly because of poor project design and implementation. The incoming pay their outstanding loans. In addition, enhancing the quality of operations required attention President also faced the challenge of restoring the Bank’s credibility and its standing on the at all phases of the project cycle. Other major issues that received attention included the international financial markets. He also had to adapt the Bank’s operations to the changing strengthening of the Bank’s country focus by establishing country teams, aligning the Bank’s needs of clients, as well as to respond to an evolving development agenda. interventions with the development priorities of the countries, improving the quality-at-entry of projects, as well as the monitoring and evaluation of projects. The early 1990s was a difficult period for the Bank. Africa’s growth performance was poor. African countries had serious debt servicing problems, with 29 of them considered as heavily Country programming improved through enhancing analytical work, especially by looking indebted. As a result, more countries were not able to repay the Bank for their outstanding more closely at the policy and institutional setting of the individual countries. The preparation of loans. The countries which were rated as high risk and severely indebted held US$ 7.5 country studies and reports, particularly the Country Strategy Papers, was greatly enhanced, billion of the Bank’s outstanding loans – or over 75% of its portfolio. The amount of non- emphasizing the use of country systems and harmonization with other donor agencies. performing loans rose from US$ 105 million in 1989 (3.1% of the total) to US$ 950 million in 1993 (11.4%). In 1999, the Bank adopted a new vision aimed at promoting economic growth, with equity and poverty reduction as central goals. To this end, Bank resources would target four Omar Kabbaj An important development in the membership structure during the Kabbaj presidency was operational areas: agricultural and rural development; human resources development; private Morocco that South Africa became a member of the Bank Group. sector development; and good governance. The Bank would put the vision into action by adopting the 2003-2007 Strategic Plan. President August 1995 to August 2005

78 79

1964 2014 1995-2005: In 1999, the Bank revitalizing the Bank adopted a new 2003: a strategic retreat

Because of the growing social and political instability which started in late 1999 in Côte vision aimed d’Ivoire, the Bank’s host country, it was forced to relocate to Tunisia. It was the first and only MDB which had to abandon its headquarters in this manner. When the risk of political instability was evident, the Bank adopted a plan to ensure business continuity. The core objective of the plan was to minimize disruption to Bank operations, while maintaining the safety of its staff. at promoting The Temporary Relocation Agency for the Bank in Tunis was well prepared to accommodate staff and management. Within three months, almost all staff had arrived and settled in Tunis. The successful relocation of the Bank was a unique experience, widely regarded as a testimony to the resilience and vigilance of staff, management and the Board. Ultimately, the business of the Bank was only minimally disrupted. Still, staff had to adopt to a new work economic growth, environment, at the time when the Bank was expanding its operations. with equity and poverty reduction as central goals.

80 2005 1964 African Development Bank 1964-2014 Education 50 years at the service of Africa From economic growth … to economic transformation

Ensuring access to education for all … creating jobs for all

82 83

1964 2014 2005 and beyond: an enhanced franchise value

The Bank’s effectiveness has been strengthened by greater country ownership and donor harmonization.

85

2014 2005 and beyond: an enhanced franchise value

Donald Kaberuka, a former Minister of Finance of Rwanda and Governor of the Bank, Selectivity and focus became the differentiating features of the reforms introduced by assumed office as seventh President in September 2005. He was re-elected for a second Kaberuka during his ten years at the helm of the Bank. Above all, his paradigm was: “the term in 2010. Bank cannot do everything”. He put emphasis on infrastructure, economic integration and the private sector (operations in the private sector multiplied ten times). He also pushed Kaberuka’s period at the Bank coincided with a fast changing situation in Africa. Most countries for far-reaching decentralization of Bank operations. The Bank also reinforced its internal had embarked on the agenda of economic growth, but strategic choices needed to be made accountability and transparency mechanisms to improve efficiency and boost professional in light of limited resources. His tenure witnessed the financial crisis which struck in 2008 and standards. peaked in the following two years, and the “Arab Spring” that started in 2010, and which seriously affected some of the Bank’s largest shareholders in North Africa – Tunisia, Libya With his experience from Rwanda, President Kaberuka championed the Bank’s own approach and Egypt. Thus, although Africa had witnessed good growth numbers from the early 2000s to addressing fragility in Africa. He is also recognised for giving real meaning to the concept – much above the average of the previous decades – the crises threatened to unwind the of the Knowledge Bank. Because of this commitment, the Bank has been able to brand itself progress made thus far. In both cases, the Bank unrolled a massive countercyclical response, not only as a financing institution but also as a knowledge broker. securing finances for countries and using approaches that it had never before deployed, such as liquidity support and trade finance. The Bank was able to mount its largest Kaberuka combined his work at headquarters with frequent trips to the field to visit Bank Donald Kaberuka ever General Capital Increase in 2010, raising its capitalization by 200 percent to projects, in over 50 countries. Kaberuka returned the Bank to its Headquarters after 11 years Rwanda US$ 100 billion. in Tunis. President September 2005 to present (2015)

86 87

1964 2014 From 2005 to 2014, Bank Group lending totaled some US$ 60

billion 89 2014 African Development Bank 1964-2014 Health 50 years at the service of Africa From economic growth … to economic transformation

Strengthening capacity to deliver health services … bringing a better life for all

90 91

1964 2014 2005 and beyond: an enhanced franchise value

Inclusive growth should also ensure access to social services, including health and education, At the national and regional levels, food security depends crucially on efficient pricing Raising the bar female empowerment and non-discrimination with respect to the opportunities, especially in mechanisms, functioning regional transportation networks and predictable government The infrastructure imperative schooling, available equally to boys and girls. It must also be borne in mind that regional policies for the agricultural sector. Besides these projects, the Bank has also provided policy During Kaberuka’s first tenure in office, the Bank’s work was guided by the Medium Term disparities, in many countries, including urban-rural disparities, are a threat to future growth advice and contributed to capacity building. The African Development Bank is sometimes called the “infrastructure bank”. This is an apt Strategy, 2008-2012. This was a compact that arose from a long process of internal and and prosperity which must be addressed. The Bank is therefore careful to ensure that its description given the emphasis that it has put on expanding Africa’s economic infrastructure external consultations led by a High-Level Panel of prominent personalities, which was set up programming documents, as well as its lending instruments, are taking the issue of inclusive in the last 50 years. Indeed, the Bank’s very first operation in 1967 was a road project in by the President. Its thrust and momentum was extended and modified to form the Bank’s growth into consideration. Kenya that cost US$ 2.3 million. Today, the Bank invests some US$ 5 billion in infrastructure Ten Year Strategy 2013-2022, which depicts the Bank as being ‘at the centre of Africa’s Investing in gender equality each year. transformation’. This new strategy, in many ways an enhancement but not a departure from the previous one, was a response to the broad need among Bank clients to ensure that The Bank has pursued a two-pronged approach to gender: ensuring that its own internal Power and transport have received the bulk of resources targeted at infrastructure in recent the growth that they were beginning to see on the continent would be inclusive as well as Fragility: a concern for us all structures and processes show demonstrable concern over gender equality; and ensuring years. Between 2011 and 2013, the Bank financed a number of projects for power generation, sustainable. Hence, also, the importance of transitioning to a greener economy. that its projects and programs are equally sensitive to gender issues. In 2010, the Bank transmission lines and national and regional grids. In just under three years, it supported In spite of Africa’s recent achievements, a quarter of its population of close to one billion created a Gender Division, as a first step in institutionalizing gender mainstreaming and the projects generating some 980 Mega Watts of electricity, benefitting an estimated 9 million The Bank’s approach is to preserve its focus on areas where it has comparative advantage resides in countries and situations characterized by varying forms of social and economic promotion of gender equality in the Bank, its projects and policies, and among regional people and connecting about 16,000 households. It has also helped to increase Africa’s and which remain relevant for its development agenda: infrastructure, regional integration, fragility. They are caused by a combination of poverty, conflict and adverse weather patterns. member countries. This had a positive impact on operations, with the percentage of newly rate of rural electrification from a coverage of 20% in the late 1990s to about 30% today. In governance and accountability, private sector development, and technology and skills Addressing fragility and building resilience is thus a major pre-occupation of the Bank and approved projects that were rated as having mainstreamed gender in a satisfactory manner transport, the Bank has been crucial to developing transport corridors in Southern Africa and development. Moreover, the Bank also identified areas deserving special emphasis, including has received further impetus during Kaberuka’s period in office. increasing from 38% to 67% in the following two years. boosting regional interconnection in West Africa. It is also supporting the reconstruction of food security, gender and the environment. the East African Railway, as well as regional ports and harbours, notably Namibia’s Walvis A key concern of the Bank’s approach is that programs to address fragility should not be In 2012, the Bank Group won the prestigious United States Treasury Award for development Bay. During Kaberuka’s term, the Bank’s witnessed a marked increase in its financial resources. designed in the same way as those for normal countries: they require speed of delivery, impact for a project in Côte d’Ivoire that was designed to address gender based violence Its capital saw a 200% increase during the Sixth General Capital Increase in 2010. This innovation in design and a multi-sector approach in delivery, often involving the private sector. in a post-conflict environment. In 2013, President Kaberuka appointed a Special Envoy on Perhaps less known is the effort that the Bank has put into connecting Africa via ICT and made it possible to scale up operations and to begin to finance the continent’s structural It is also important to understand the drivers of fragility, through commissioning studies that Gender as another important step in raising gender issues to the very top of the Bank’s related communication technologies in recent years. When the Bank was formed 50 years transformation, including by embarking on game changing mega-projects in middle and low- provide a good analysis of the political economy of the affected countries and regions. Above agenda. ago, the ICT sector did not exist. However, it was quick to identify the opportunities in the income countries. The increased resources boosted Bank lending. From 2005 to 2014, Bank all, the Bank has devised a policy framework for its work in conflict affected countries. It sector for growth and private sector development and, notably, how ICT could help alleviate Group lending totaled some US$ 60 billion, which was greater than the total loans and grants argues that fragility knows no borders and must be given adequate attention using a range The Bank’s Gender Strategy for the period 2014-2018 underlines gender equality and the connectivity constraints of the countries. from the first four decades of operations. of national and regional institutions and instruments. Central to addressing fragility is the mainstreaming as an important element of Africa’s transformation. The strategy has three systematic application of a ‘fragility lens’ to identify, respond to and prevent fragility and to areas of emphasis: enhancing the legal status and property rights of women; raising the Above all, infrastructure development has provided a good platform for broad collaboration The African Development Fund has also increased in importance as a source of financing build resilience. economic empowerment of women; and underlining the important roles of knowledge between the Bank and other development partners, the private sector and regional agencies. for Africa’s low income countries. Donor countries provided some US$ 7.3 billion in the management and capacity building in the process. The concept of public private partnerships has received prominence in recent years as a 13th replenishment of the Fund for the period 2014-2016. The Bank has also been able to good model for expanding infrastructure provision. The construction of the Bujagali and mobilize support from a host of other agencies and countries, in the form of trust funds or Food security Itezhi-Tezhi hydro power stations (in Uganda and Zambia respectively), demonstrate public direct participation in Bank projects and activities, to leverage its own resources, thereby private partnerships in action, including for the power transmission lines. A number of actors enabling a broader impact. Inadequate food security in many African countries has compounded their economic fragility, including governments, donors and equity funds teamed up to finance this much needed and also negatively affected the status of women, who are the main food producers in Africa’s infrastructure. It would have been much harder if governments had to do it alone. low-income countries. Ensuring adequate food production is therefore a strategic necessity Inclusive growth for countries, and an area on which the Bank has focused considerable effort in recent years There has also been similar collaboration with respect to water, sanitation, and hygiene. The through policy support and the provision of auxiliary infrastructure. Bank is the host of the African Water Facility, funded by donors, which has co-financed a range of water and sanitation projects in the past decade. Considering the role of women The Bank Group has sought to become a key instrument for assisting African countries and girl children in collecting water in low-income countries, improved water provision has on their march to structural transformation. It insists that in the course of becoming more In recent years, the Bank has financed several projects to improve food security in Africa, greatly improved their livelihoods in the countries where these projects have been completed. affluent societies, they should also become more caring. No one should be left behind. because it relates closely to the reduction of fragility by increasing rural household incomes Moreover, water projects play a critical role in health and social welfare achievements, food Exclusion serves to make some groups better off than others, but ultimately breeds broad and welfare, and thereby empowering women in the countryside. The projects have included security, and income generation. dissatisfaction, internal conflict and a reversal of any development gains achieved thus far. those in water management, tree planting, forestry and rehabilitating water facilities for people and for their livestock. Other projects have included building dams to support irrigation While there is no template for ensuring success in the pursuit of inclusive policies, the Bank’s development, and helping farmers reach markets through the construction and maintenance work and the experience of countries is beginning to highlight the main tenets. They include of rural roads. empowering people by improving their access to the factors of production, involving them in gainful employment, and creating economic opportunities through capacity enhancements that are relevant for the modern times, often influenced by technology and ICT revolutions.

92 93

1964 2014 African Development Bank 1964-2014 Private sector 50 years at the service of Africa From economic growth … to economic transformation

Raising skills & incomes for families & communities … boosting national economies

94 95

1964 2014 The private sector generates from US$ 250 million in 2/3 of Africa’s investment, 3/4 of its economic output, 2005 to US$ 2 billion in and 9/10 of its formal and informal employment. The Bank’s private investment operations have increased nearly tenfold since 2000, 2 012

97

2014 African Development Bank 1964-2014 Agriculture 50 years at the service of Africa From economic growth … to economic transformation

Meeting basic food needs … building agribusinesses that supply regions and beyond

98 99

1964 2014 2005 and beyond: an enhanced franchise value The smooth return of the Bank to its

The private sector as driver Knowledge is vital Headquarters in Abidjan

In the past, African governments had an antagonistic relationship with the private sector, The Bank is aware that lending on its own is not enough, and that regional member countries seeing it in some cases as an agent of exploitation. Much of this is now in the past, and also require analytical advice and capacity building. In the past few decades, the Bank has was testimony to the governments are actively cultivating, through incentives and other means, the participation put considerable investment in its capacity to generate knowledge and to conduct policy of the private sector in socio-economic development. Today, the importance of the sector is dialogue. Today ‘knowledge’ underpins the Bank’s ability to respond to new challenges and not in dispute. It generates two-thirds of Africa’s investment, three-quarters of its GDP, and provide intellectual leadership on African and global issues. creates the bulk of employment opportunities. resilience of its staff and In recent years, the Bank has produced a several flagship publications, as well as economic The goal of the Bank’s Private Sector Development Strategy, 2013-2017, is to create a and sector work, and a range of databases – many are the most important sources of sources competitive private sector across Africa. It will be key to sustainable growth, employment of information on African development today. The Bank has also benefitted from collaboration generation and poverty reduction, and hence to Africa’s economic transformation. The Bank with a number of African and international agencies. management, and the ef- has supported private sector operations from the end of the 1980s, but operations did not pick up significantly until the 2000s—rising tenfold from 2005 to about US$ 2 billion in 2013. The Bank’s own African Development Institute has been an important channel for capacity A number of instruments and approaches have been devised at the Bank to expand the role building, across a range of issues. It has helped enhance capacities in crucial analytical of the private sector—including through public private partnerships. areas within the Bank and among its clients. The Institute also regularly invites persons of fective support of the high standing to take part in its Eminent Speakers Program, which addresses economic and political challenges on the continent. One of the latest of these was Nobel Laureate Wole Energy and the environment Soyinka. Tunisian and Ivorian The Bank’s work in the energy sector dates back several decades and accounts for approximately 14% of the Bank’s cumulative commitments. The Bank has played a key 2014: the Bank returns home role in providing regional member countries with energy, and also with the climate change knowledge, technical leadership and advice needed to adopt clean technologies. It has When the Bank left Abidjan for Tunis in 2003, it was expected to be a brief stay. However, Governments. also been an advocate of policies and programs that take into account the power needs of it was away for 11 years. By December 2013, an advance team had been sent to Abidjan Africa’s low-income economies. The Bank has also committed to ensure that environmental to manage the return of the Bank. In August 2014 the President and Chair of the Board and social safeguards are mainstreamed into its projects. returned to Abidjan, marking the end of the Bank’s exile. The Ivorian Government had offered a 26-storey tower (the CCIA Building) in the centre of Abidjan to host the Bank, since repairs Many African countries are today confronted by the uncertainties of climate change, be they to its permanent headquarters were being completed. It is an imposing building across the long droughts or excessive flooding. The Bank has assisted regional member countries in the street from the High Court of Côte d’Ivoire and Saint Paul’s Cathedral. The number of Bank preparation of frameworks and strategies for climate-resilient and low-carbon development. staff had doubled during those eleven years: it now had over1900 staff, including 500 ‘in the For instance, it has assisted a number of countries to undertake climate-smart investments field’. through partnerships with global and regional funding institutions. Its advocacy role has been important as is bound to increase in the next decade. By December 2014, about 1000 Bank employees had already taken up duty in Abidjan. A flag raising ceremony was held on 8 September 2014 to mark the Bank’s official return to headquarters. The event was attended by the Prime Minister of Côte d’Ivoire, Bank management and staff, and other prominent guests. The Agreement establishing the African Development Bank had come into effect on 10 September 1964, so the 2014 flag raising ceremony came just two days short of the official “50th Anniversary”. Later that day, the first meeting of the Board of Directors after the Bank’s return was held in the CCIA Building.

100 2014 101 1964 2014 African Development Bank 1964-2014 Gender 50 years at the service of Africa From economic growth … to economic transformation

Promoting women’s role in society … making women a driving force for Africa African Development Bank 1964-2014 Cross-border cooperation 50 years at the service of Africa From economic growth … to economic transformation

Increasing the movement of people and goods … trading and speaking as one

104 105

1964 2014 From 2011 to 2012, the percentage of newly increased from approved projects that were rated as having mainstreamed gender in a satisfactory manner 38% to 67% 107

2014 108 109

1964 2014 African Development Bank 1964-2014 From 4000 Bank projects in 50 years 50 years at the service of Africa … 10 recent examples

TUNISIA “Now I just CHAD “To be trained to Rural water supply project need to turn Institutional support for bring life into the world. on the tap”. fragile states What a privilege!”. $133 m $10 m 6 Government ministries & 350,000 beneficiaries agencies as beneficiaries (here: Health).

ANGOLA, MALAWI, “A healthy cow BENIN “I passed my exams MOZAMBIQUE, means a healthy Electrification for 17 rural areas because I could revise by TANZANIA, ZAMBIA profit. I make the light of a light bulb!”. Trans-boundary animal disease 70% more control project these days”. $7 m

$20 m 50,000 beneficiaries 12.7 m beneficiaries in 5 countries

RWANDA “The program KENYA “The Thika road used Skills, employability and guaranteed 75% Nairobi-Thika Highway to be something to entrepreneurship program of my loan. It was avoid. Now everyone a real opportunity, uses it”. as we had no $38 m other means”. $186 m 5 m beneficiaries 80,000 vehicles a day

MOROCCO “More passengers, SIERRA LEONE “Just like the boys, Increasing capacity on the better connection, Rehabilitation of basic and now the girls go to Tanger-Marrakech railway line more trade, better links”. non-formal education school, and they too can now help their $390 m $21 m families”. 98 primary schools renovated, 10 m beneficiaries 4000 teachers trained

GHANA “A 150% return on UGANDA “Along with other my investment has farmers, we received Rural enterprise program allowed me to Rural income and employment enhancement project training and financial send two of my support to set up our grandchildren to own savings and credit $70 m one of Ghana’s best cooperative”. universities, but also $16 m 102,000 beneficiaries to take on four 1.4 m beneficiaries full time staff”.

110 111

1964 2014 112 113

1964 2014 2014: the Bank returns home to Abidjan

114

1964 Lessons for the next 50 years

The Bank will continue to pursue the goals of its founders: economic growth and development are the surest guarantee of Africa’s freedom.

117

2014 Looking to the future

In early 2014, the African Union Summit held in Addis Ababa adopted “Agenda 2063” as the continental vision for Africa’s growth and development in the next 50 years. Devised by the African Union Commission, with support from the African Development Bank and the Economic Commission for Africa, its aspiration is “an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena”.

Thus integration will continue to be the unalterable constant of Africa’s economic and political imagination in the next 50 years. The single African market must become a reality. Still, much more effort will be required to cement the new integration gains, including strengthening regional infrastructure, collaborating broadly on regional investment and industrial strategies, and opening up Africa’s skies to greater competition. The Bank’s role in Africa’s integration has received heightened impetus in recent decades through its support to regional projects, and participation in policy dialogue at the highest levels.

Africa is urbanizing at a very rapid pace and the bulk of the population will live in cities in a couple of decades. While enhancing the potential for the mobilization of its population for development, better provision of social services, and embarking on manufacturing, urbanization has its own unique challenges, especially the pressure it puts on utilities— from power to water and sanitation services. New ways of financing urban infrastructure will be required, possibly through the issue of municipal bonds. Here again the Bank has an important role to play both on the financing and policy sides.

Africa’s recent growth has shown that the continent has the potential to become a global growth pole in its own right, but that sustainability requires a good understanding of the challenges and how best to address them in a rapidly changing world economy. The private sector will be a key ally, and recent growth has been enabled largely by private sector investment, attracted by improving business climates in African countries. Partnerships between the public and the private sectors will become the preferred mode of financing of Africa’s development—public money on its own will not be enough.

It is well known that Africa is the world’s youngest continent and will continue to be so for many decades to come. How Africa harnesses its demographic dividend in the next decades will be a key factor. It will need to boost the quality of its youthful labour force through training and employment creation. This will determine whether the continent will be able to industrialize and emerge as a player in the global economy. Climate change will also be a key factor, with implications for how countries conduct their economic policies in the next several decades. Coordination regionally and globally will be of the essence but it will be important for Africa to strengthen its voice on these issues through broader collaboration within the continent itself. The Bank will be a key adviser on climate change related policies, and a financier of associated projects. It will need to develop in-house capacities to embark on these expanding tasks.

As the African Development Bank looks ahead, it can be satisfied in the knowledge that it has put itself at the service of Africa for the last 50 years, that it was able to weather the various economic and political storms of the last half-century, and that it has helped spur the continent’s economic development. The Bank has evolved as the needs of the continent have evolved, and yet throughout it has remained true to the goals of its founders. The goals will remain relevant for the next 50 years: economic growth and development are the surest guarantee of Africa’s freedom.

118 119

1964 2014 What future for Africa’s young and growing population?

120 121

1964 2014 The Bank is resolved to position itself, ‘at the centre of Africa’s transformation’. Its prime objective during the next ten years is to make Africa’s growth more inclusive and more sustainable.

122

1964 Going forward: Africa in the 21st Century

124 125

1964 2014 From economic growth … to true economic transformation which is unevenly shared where growth is strong, shared and sustainable

6 of the world’s Challenges Managing and 10 fastest growing & opportunities sharing natural economies are resources in Africa

African GDP has Entering into tripled in 10 years regional & global value chains

African FDI has Reaping the full tripled in 10 years benefits of Africa’s ‘demographic dividend’

Ensuring true Diversifying into gender equality industry & manufacturing

… yet pockets of Strengthening fragility and poverty governance remain …

126 127

1964 2014 african growth and development

128 129

1964 2014 50 years at the service of Africa 1964-2014 50 years at the service of Africa 1964-2014