African Development Bank wants more funds for African recovery

The African Development Bank Group (www.afdb.org) is urging the G-20 Summit to increase its resources. The bank says Africa and low income countries should not be left behind if the world economy shows signs of recovery.

Meanwhile the IFR Markets news service, quoted on Reuters newsagency, says AfDB,  rated AAA by leading ratings agencies, plans a $1 billion 3-year global bond issue.

The “G-20” is a meeting of finance ministers and central bank governors from 19 developed countries, plus the European Union (EU), plus World Bank, International Monetary Fund and others. They are meeting in Pittsburgh, USA from 24-25 September. According to Wikipedia, they marshall 85% of the world economy, 80% of world trade, and 67% of the population.

AfDB President, Donald Kaberuka, said: “The economic crisis has been a major setback for Africa. The African Development Bank has played its role acting countercyclically. It has proved to be a reliable, responsive partner. Additional concrete steps for crisis mitigation and supporting recovery in low income countries are critical.”

He called for a general capital increase and replenishment of the soft loan African Development Fund (ADF). AfDB expects its investments in 2009 to double with commitments amounting to some US$11 bln, from US$5.8 bln in 2008, largely in response to the global financial crisis. Investments go to budget support, infrastructure, liquidity programs and trade finance.

AfDB announced its response to the crisis in March, including a US$1.5 bln emergency liquidity facility, a US$1 bln trade finance initiative, accelerated transfers of concessional resources to eligible countries, and more advisory support.

1 Response to “African Development Bank wants more funds for African recovery”


  1. FIFEN Issah

    Dear Director General,

    It is with pleasure that we write to you presenting our newly opened Islamic institution. The Islamic cooperative we have established assists some of the most impoverished people’s in Cameroon. It is with humility that we write to ask you for both your financial and technical assistance. Your generous acceptance will allow our institution to reach its full capacity and to ensure that communities at large may benefit from our institution.
    The Islamic Saving and Credit Cooperative of Cameroon (Cooperative d’Epargne et de Credit Islamique du Cameroun – CECIC) is a newly established institution of microfinance. CECIC has been created to assist the Islamic community, in particular those living in the Noun department. It is the first institution of its kind. By operating under Islamic law CECIC offers what other microfinance institutions operating here cannot. By collecting small sums of money each week CECIC provides that the poorest members of the community can also save their money in a secure place. The ultimate goal is to have each daily collect member open an account and with time to provide them with credit opportunities.
    CECIC is located in the village of Foumbot. Foumbot is located in the West Region of Cameroon. Foumbot and eight other surrounding districts form the department of the Noun. The department of the Noun is home to more than 1 million persons; of which more than 85% are Muslims. Brochures have been scanned and attached for your reading which will provide you with further information about the community.
    The Department of the Noun is home to several mosques and educational institutions however there is not exist a single microfinance institution which operates under Islamic law. As a direct result, thousands of Muslim men and women who remain faithful to the Islamic laws of banking are left without a savings institution and availability to credit. Muslim followers have been financially abandoned in this region of the country. Many have tried before but in not respecting the culture of the department they have all subsequently failed. For this reason CECIC has been structured to cater to the specific needs of this population. A microfinance institution that strictly follows Islamic law will permit thousands of individuals to successfully and securely save their money and receive credit. As you know poverty is a danger for the faith, the personal behavior of its followers, and the society as a whole. Without of system of savings and credit the cycle of poverty will certainly continue in this area.
    During the past year we have been working particularly with rural women’s groups. We have mobilized over 100 seven member groups. New groups are being created everyday and it is our team who helps bring them together. A number of men (50) have also been reached. The project has been entirely self-funded thus far and it is now that we reached a critical point in its development. While the potential of expansion is great it is inconceivable without outside assistance. For this, we ask for your financial assistance to reach these untouched individuals and your technical assistance to ensure the further expansion is successful.
    We sincerely thank you for your time and careful consideration. We await your response and are ready to provide you with further information.

    Sincerely,

    ________________________
    FIFEN Issah, Executive Board Director