African Development Bank (AfDB): Multilateral Development Finance Institution
African Development Bank (AfDB) is a multilateral development finance institution established to contribute to the economic development and social progress of African countries was established in 1964.
It is of one of the supplementary and complimentary entities of African Development Bank Group just like: The African Development Fund and the Nigeria Trust Fund. It is similar to the World Bank in that it lends money and gives grants to African governments and invests in private companies operating in Africa.
Function of African Development Bank (AfDB)
- To making loans and equity investments for the socio-economic advancement of the RMC.
- To provides technical assistance for development projects and programs.
- To promotes investment of public and private capital for development.
- To assists in organizing the development policies of RMCs.
- It is also required to give special attention to national and multinational projects which are needed to promote regional integration.
- Mobilizing financial resources from the Government or the foreign financial institutions with a view to lending the money for development of specific sectors of the economy.
Governing structure of AfDB
Board of Executive Directors control and supervise the AfDB which is consists of representatives of its member countries. The voting power on the Board is split according to the size of each member's share, currently 60%-40% between "regional" countries (African) and “non-regional” member countries (“donors”). The largest African Development Bank shareholder is Nigeria with nearly 9 percent of the vote. All member countries of the AfDB are represented on the AfDB Board of Executive Directors.