@60 AfDB renews focus on boosting Africa’s investment environment

Onome Amuge

The African Development Bank (AfDB), Africa’s premier multilateral financial institution, has marked its diamond jubilee with a resounding commitment to leading the continent’s march towards a transformational and sustainable future. 

The occasion was solidified by the launch and pricing of a new $2 billion social benchmark transaction, with a maturity date of 18 September 2029, precisely coinciding with the 60th anniversary of AfDB’s founding.

The transaction, released in the format of a social bond under the bank’s sustainable bond framework, represents the bank’s second USD global benchmark issuance for the year 2024, closely following its 3-year $2 billion social benchmark transaction in January.

According to the bank’s analysis, the new transaction brings an on-the-run reference point in the 5-year part of the USD curve, extending AfDB’s outstanding curve, and demonstrating the issuer’s commitment to maintain liquid lines at key benchmark maturities. 

“With the final order book closing in excess of $3.7 billion (including USD 150 million of Joint Lead Managers (JLMs) interest), and 66 investors participating, the success of this 5-year transaction is considered a clear vote of confidence from investors in AfDB’s AAA credit. 

“The strong participation from ESG investors representing 25 percent of the final order book also highlights investors’ confidence in the bank’s sustainable bond framework and development mandate,” the bank stated.

AfDB’s 5-year $2 billion social benchmark issuance began with an undeniable surge in demand, reflected by the rapid accumulation of over $2.5 billion in Indications of Interest (IoIs) from the bank’s high-quality investor base within a single day, a clear reflection of the confidence in AfDB’s solid financial standing.

In another development, the launch of commemorative events to mark AfDB’s  60th anniversary in Abidjan, the economic capital of Cote d’Ivoire, brought the continent together in celebration of the bank’s unwavering commitment to shaping a brighter future for Africa. 

An in-depth examination of the bank’s transformative journey since its inception in September 1964, when representatives from 25 African countries came together in Khartoum, Sudan to envision a brighter future for the continent, reveals a narrative of unwavering resilience and passion that has carried AfDB through even the most challenging moments, leaving a legacy of positive change that will endure for generations to come.

Georges Rigobert Aithnard, an iconic figure in AfDB’s rich history, captivated audiences during the institution’s 60th anniversary commemoration event, regaling attendees with a mesmerising narrative of the challenges faced by the nascent bank during its early years. 

The 89-year-old, who served as the bank’s oldest retiree, provided invaluable insights into AfDB’s formative years, offering a unique window into the struggles and triumphs that have shaped the bank’s storied legacy.

Aithnard’s passion for the bank’s mission was evident in the vivid accounts he shared during the 60th anniversary commemoration event, drawing from his personal experiences that spanned 30 years, from his initial role as personal assistant to Mamoun Beheiry, the first President of AfDB in 1965 to his tenure as director of the African Development Institute, which ended in 1995.

Aithnard’s vivid recollection of a time when the first President of AfDB faced challenges in securing a meeting with the vice president of a sister multilateral development bank served as a stark contrast to the present day, where the African Development Bank has evolved into a formidable powerhouse within the multilateral development community.

Addressing an audience comprising AfDB’s past and present staff, partners, and senior government officials, Aithnard commended the bank’s remarkable rise, affirming that it has cemented its position as a leader among its peers, and an influential voice within the global development landscape.

“When I joined the African Development Bank in 1965, the bank was much more modest than it is today. There has been robust progress over the years.

“Despite the fears and challenges the bank faced then, it confronted problems head-on, secured global ratings, and continued to increase its capital. Today, we are delighted that the bank has overcome its fears to become a global development institution with influence beyond Africa,” he stated.

At the helm of the discussion, Victor Oladokun, the bank’s senior advisor on communication and stakeholder engagement, orchestrated a dynamic exchange of perspectives, drawing insights from staff members across different levels of the bank’s organisational structure.

Among the  panellists, Nnenna Nwabufo, director general of the bank’s East Africa regional development and business delivery office, delivered an endorsement of the institution’s vital role as a key player in Africa’s development, describing the institution as Africa’s partner of choice.

“The bank is at the centre of the conversation on Africa’s development. It has become Africa’s partner of choice. When African countries want to discuss development, they come to the African Development Bank because it has become a trusted partner,” Nwabufor said.

Joséphine Sallah Ayari, providing valuable insights from the general services staff’s perspective, and Hannatou Mamane, representing the bank’s short-term staff, offered compelling reflections on their personal experiences working at the African Development Bank.

Both panellists acknowledged the vital role of Akinwumi Adesina, the bank’s president, in ushering in a new era of progress and growth for staff members at all levels.

Akinwumi Adesina, president of the African Development Bank Group, led the institution’s 60th anniversary celebrations with a stirring expression of gratitude and optimism, christening the momentous occasion as a “day of joy”.

Adesina, in an outpouring of gratitude and pride, acknowledged the AfDB’s impressive strides, spanning from its humble beginnings in Abidjan, Côte d’Ivoire to its current reputation as Africa’s preeminent development partner. He also highlighted its support of over 6,575 projects and investments worth $77 billion across 3,000 projects in the past decade, a testament to the bank’s unwavering commitment to driving Africa’s socio economic development.

The AfDB leader, known for his signature bowtie, displayed his gratitude to President Ouattara for hosting the African Development Bank Group’s headquarters in Abidjan and for his continued support. 

He also shared a highlight of President Ouattara’s contribution in 2019, when he helped the bank secure a general capital increase of $115 billion, representing the largest such increase in the bank’s history.  The AfDB president noted that the transformational increase, coupled with the bank’s total capital reaching $318 billion in May earlier this year, served as an affirmation of shareholder confidence in the bank’s mission and vision.

Speaking further on landmark achievements spearheaded by his administration, Adesina stated: “Following my election as President in 2015, during my first term, I made a case for a stronger bank with financial resources to help implement and scale up our High 5s: To light up and power Africa; To feed Africa; To industrialise Africa; To integrate Africa; To improve the quality of life of the people of Africa,” Adesina said.

“In the past 9 years, we have provided over $55 billion in support of infrastructure, from energy to roads, corridors, seaports, airports, rail, digital infrastructure, water and sanitation. Today, the Bank is the largest multilateral financier of infrastructure in Africa.”

Adesina further illuminated the bank’s remarkable impact, sharing that over the past eight years, the bank’s efforts have positively touched the lives of about 400 million Africans.

He underscored significant milestones in the bank’s progress, noting that while in 2016 only 25 percent of Africans had access to electricity, this figure has now risen to 52 percent, with the bank’s $20 billion Desert-to-Power initiative in the Sahel set to bring 10,000 megawatts of power to 250 million people across 11 countries.

Adesina also announced that the AfDB has successfully mobilised $72 billion to boost Africa’s agricultural potential through the Feed Africa Summit in Dakar, Senegal, and additionally, has helped Africa address the challenges of climate change by raising $25 billion through its Africa Adaptation Acceleration Programme and $14 billion through its Climate Action window.