The African Development Bank (AfDB) is a multinational bank founded on 4 August 1963 during the Khartoum Conference. The agreement entered into force on 10 September 1964 in Khartoum, Sudan. However, the Bank only began operations on 1 July 1966. Its main role is to contribute to the social progress and the economic development—whether individual or collective—of the region’s member countries. To this end, the AfDB Group mobilises resources to promote investment in the private sector, agriculture, health, education, infrastructure, and other priority areas.
It has 54 African regional member countries and 26 non-African non-regional member countries.
The AfDB Group also includes other institutions, namely:
- the African Development Fund (ADF), established in 1972, which is the concessional financing window of the AfDB Group. It supports economic and social development in Africa’s least developed countries by providing concessional financing for the implementation of projects and programmes, as well as technical assistance for studies and capacity-building activities. The Fund has 27 contributing countries supporting 40 countries in Africa;
- the Nigeria Trust Fund (NTF), created in 1976 through an agreement between the AfDB Group and the Nigerian Government. The purpose of this Fund is to support low-income regional member countries whose economic or social conditions require loans on concessional terms. Unlike the African Development Fund (ADF), NTF resources are allocated by project rather than by country.
The AfDB Group is a key player in the development of Africa’s financial markets. In this regard, the AfDB works through a number of initiatives and partnerships, including:
- the Making Finance Work for Africa (MFW4A) partnership, launched in 2007 by the G8 Group. Website: www.mfw4a.org
- the African Financial Markets Initiative (AFMI), created in 2008 to develop local currency bond markets in Africa. Website: www.africanbondmarkets.org
Well-established and liquid bond markets are essential to sustaining country-led development through efficient capital allocation driven by financial markets. However, bond markets in Africa remain largely underdeveloped, with corporate bond markets either non-existent or still at a very early stage.
