Afdb Group Annual Report 2011
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2011 ANNUAL REPORT AFRICAN DEVELOPMENT BANK · AFRICAN DEVELOPMENT FUND REGIONAL AND NON-REGIONAL MEMBER COUNTRIES ALGERIA ARgentina ANGOLA AUstRia BENIN BELgiUM BOTSWANA BRaziL BURKINA FASO Canada BURUNDI China CAMEROON DenmaRK CAPE VERDE FinLand CENTRAL AFRICAN REPUBLIC FRance CHAD GERmany COMOROS India CONGO ItaLY CONGO, DEMOCRATIC REPUPLIC OF Japan COTE D’IVOIRE KUwait DJIBOUTI NetheRLands EGYPT NORway EQUATORIAL GUINEA PORTUgaL ERITREA SAUDI ARabia ETHIOPIA SOUth KoRea GABON Spain GAMBIA Sweden GHANA SwitzeRLand GUINEA UNITED ARAB EMIRATES (member of the adF only) GUINEA BISSAU United Kingdom KENYA United States OF AmeRica LESOTHO LIBERIA LIBYA MADAGASCAR MALAWI MALI MAURITANIA MAURITIUS MOROCCO MOZAMBIQUE NAMIBIA NIGER NIGERIA RWANDA SAO TOME & PRINCIPE SENEGAL SEYCHELLES SIERRA LEONE SOMALIA SOUTH AFRICA SUDAN SWAZILAND TANZANIA TOGO TUNISIA UGANDA ZAMBIA ZIMBABWE AFRICAN DEVELOPMENT BANK AFRICAN DEVELOPMENT FUND BOARDS OF GOVERNORS ADB ADF Forty-Seventh Thirty-Eighth Annual Meeting Annual Meeting Arusha, Tanzania May 31 – June 1, 2012 REPORT by the Boards of Directors of the African Development Bank and the African Development Fund Covering the period January 1 to December 31, 2011 ADB-ADF/BG/AR/2011 Acknowledgments This Annual Report was prepared by the Statistics Department of the Chief Economist Complex, under the overall guidance of the Boards of Directors, and the direct supervision of the Board Committee, comprising: P.M.F. Tombwele (Chairman), M. Dhoorundhur, M.S. Khan, C. Kohlmeyer, and V. Zezza. Annual Report Working Team: M. Ncube, Chief Economist and Vice President; C. Lufumpa, Director, Statistics Department; B. Kokil, Manager, Economic and Social Statistics Division; F. Lawson; P. Lartey; N. Letsara; and L. Kouakou, Statistics Department; R. Ubogu (Lead Consultant); P. Quarcoo (Consultant); M. Msuya (Consultant); and A. Portella (Consultant). French Translation and Editing Team: J. Edjangue, Manager, French Translation Division; M. Ndagijimana and B. Mbessa Engoudou, Language Services Department (CLSD). Finance Team: A. Odukomaiya, Director, Financial Control Department; N. Ngwenya, Manager, Accounts and Special Funds Division; M. Derbel and S. Oppong, Financial Control Department; M. Ouattara, M. Damak, and E. Wiss, Financial Management Department. Senior Management Coordinating Committee: The Annual Report Team acknowledges the contribution and regular support from the Senior Management Coordinating Committee (SMCC) for their oversight and guidance at various stages during preparation of the Report. All Departments and Organizational Units: The Annual Report Team acknowledges the contributions and comments received from all Departments and Organizational Units in the various Complexes during the preparation of the Report. Photographs: External Relations and Communications Unit. Designations in this publication neither suggest nor imply any opinion on the part of the African Development Bank Group concerning the legal status of any country or territory, or the delimitation of its frontiers. Statistics Department African Development Bank Temporary Relocation Agency (TRA) BP 323, 1002 Tunis Belvédère Tunis, TUNISIA Tel: (216) 71 10 21 75 Fax: (216) 71 83 24 09 Cover illustration: Vocational training at Arusha Technical College in Tanzania. Design/layout by Phoenix Design Aid AS/Denmark. ISO 14001/ISO 900 Certified and approved CO2 Company. The Annual Report is printed on environmentally-friendly recycled paper with vegetable inks. The printed matter is further recyclable. ISO 14001 certified and EMAS-approved. ISSN – 1737-8990 ii Annual Report 2011 Contents List of iv Tables, Figures, and Boxes Fast Facts Box vi The African vii Development Bank Group Letter of ix Transmittal Composition of xi the Boards of Directors Message from the President of the African Development Bank Group xii Executive Summary xiii Bank Group xvii Sector Definitions Part 1 Africa’s Performance and Bank Group Activities 1 Chapter 1 Africa’s Performance and Mid-term Prospects 3 1.0 Introduction 4 1.1 Macroeconomic Performance in 2011 and Prospects for 2012 4 1.2 Exogenous Risks 6 1.3 Remaining Challenges 6 Chapter 2 Bank Group Response to Development Challenges 13 2.0 Introduction 14 2.1 Overall Approvals 14 2.2 Engagement in Subregions 14 2.3 Engagement in Various Economic Sectors 14 2.4 Selectivity and Focus on the Core Strategic Areas 15 2.5 Enhancing Relevance for all Regional Member Countries 25 Chapter 3 Key Institutional Reforms and Corporate Management 27 3.0 Introduction 28 3.1 Key Institutional Reforms 28 3.2 Human Resources Management 30 Chapter 4 Governance Oversight and Activities of the Boards 33 4.0 Introduction 34 4.1 Boards of Governors 34 4.2 Boards of Directors 36 Part 2 Financial Management and Financial Statements 39 Chapter 5 ADB, ADF, and NTF Financial Management and Financial Statements 41 African Development Bank 45 African Development Fund 141 Nigeria Trust Fund 169 Appendices 197 Abbreviations 210 Index 212 Annual Report 2011 iii List of Tables, Figures, and Boxes Tables 0.1 Summary of Bank Group operations, resources, and finance, 2002–2011 xviii 0.2 Summary of Bank Group approvals, 2011 xix 2.1 Bank Group approvals by sector, 2011 15 3.1 Key Performance Indicators (KPIs) for institutional effectiveness in 2011 29 3.2 Bank staffing ratio by country at December 31, 2011 31 5.1 Bank’s authorized and subscribed capital, 2010 and 2011 45 5.2 Socially responsible Uridashi bonds 46 5.3 ADB lending status, 2007–2011 47 5.4 ADB’s disbursements by country, 2011 48 5.5 Key Performance Indicators: financial, 2010 and 2011 52 5.6 ADF lending status, 2007–2011 142 5.7 NTF lending status, 2007–2011 169 Figures 0.1 Africa’s growth: the big picture xiii 0.2 Bank Group loan and grant approvals by sector, 2010–2011 xiv 0.3 Bank Group loan and grant approvals and disbursements, 2002–2011 xx 0.4 Cumulative Bank Group loan and grant approvals by institution, 1967–2011 xx 0.5 Cumulative Bank Group loan and grant approvals by sector, 1967–2011 xx 0.6 ADB net income, 2002–2011 xx 1.1 Africa’s growth: the big picture 4 1.2 Africa’s growth rates in 2010 and 2011: Côte d’Ivoire and Libya effects 4 1.3 Trends in commodity prices (Base = January 2000) 5 1.4 Median Inflation in Africa 5 1.5 Trend and forecast of food price index 5 1.6 Oil-importing countries: Twin deficits 6 1.7 Oil-exporting countries: Surplus current accounts and small budget deficits 6 1.8 Foreign direct investment inflows to African countries 6 1.9 Africa’s infrastructure coverage 7 1.10 (a) Share of intraregional trade by region; (b) Africa’s intraregional trade 8 1.11 Ranking of major business constraints for private sector development 9 2.1 Bank Group total approvals, 2007–2011 14 2.2 Bank Group loan and grant approvals by subregion, 2011 14 2.3 Bank Group loan and grant approvals by sector, 2011 14 2.4 Bank Group subsectoral distribution for infrastructure, 2011 17 2.5 Private sector operations by country classification, 2011 19 2.6 Private sector operations by sector, 2011 19 2.7 Sectoral composition of multinational loan and grant approvals, 2011 22 2.8 Sectoral distribution of Bank Group lending to MICs, 2011 26 2.9 Geographical distribution of Bank Group lending to MICs, 2011 26 2.10 Bank Group lending to MICs by financing instrument, 2011 26 iv Annual Report 2011 5.1 ADB outstanding loan portfolio by product type at December 31, 2011 47 5.2 ADB loan disbursements and repayments, 2007–2011 48 5.3 ADB income before distribution vs. investment income, 2007–2011 51 5.4 ADB interest income and investment income, 2007–2011 51 5.5 ADF loan disbursements and repayments, 2007–2011 142 5.6 ADF surplus deficit compared with investment income, 2007–2011 143 5.7 ADF loan income, investment income, and discount on encashment, 2007–2011143 5.8 NTF disbursements and loan repayments, 2007–2011 170 5.9 NTF income before distribution vs. investment income, 2007–2011 170 Boxes 0.1 Roadmap on Development Effectiveness xv 2.1 Morocco: Office Chérifien des Phosphates (OCP), S.A. 16 2.2 Tunisia: Gabés–Médenine–Ras Jedir Highway Construction Project 16 2.3 Zambia–Botswana Kazungula Bridge Project 16 2.4 Cameroon: Kribi Power Project 19 2.5 Governance Action Plan (GAP): Focal Areas 20 2.6 Côte d’Ivoire: Emergency Program to Restore Basic Social and Administrative20 Services (PURSSAB) 2.7 Mali: Bamako Digital Complex Support Project 21 2.8 Tunisia: Social Inclusion and Transition Support Program (SITSP) 21 2.9 Uganda: Improvement of Health Services Delivery at Mulago Hospital and 22in the City of Kampala 2.10 The Horn of Africa Drought and Famine Crisis 23 Annual Report 2011 v Fast Facts African Development Bank Group Constituent Institutions The African Development Bank (ADB) The African Development Fund (ADF) The Nigeria Trust Fund (NTF) Shareholders 53 African countries (regional member countries) 25 non-African countries (non-regional member countries) Mission To contribute to the sustainable economic development and social progress of African countries. Authorized Capital UA 66.05 billion at December 31, 2011 Subscribed Capital UA 37.32 billion at December 31, 2011 Paid-up Capital UA 3.29 billion at December 31, 2011 Approved Operations, 2011 184 operations totaling UA 5.72 billion, financed as follows: ADB: UA 3.69 billion ADF: UA 1.83 billion NTF: UA 10.9 million Special Funds*: UA 188.1 million Of which: Loans UA 3.55 billion (60 operations) Grants UA 578.7 million (75 operations) HIPC UA 1.35 billion (7 transactions) Equity Participations UA 53.4 million (7 investments)