Open Letter to US Secretary of the Treasury: Continued Support for African Development Bank and President Adesina

Strategic Insights -

Ambassador Harold E. Doley, Jr., the first-ever U.S. Representative to the African Development Bank, has written an open letter to U.S. Secretary of the Treasury, Steven Mnuchin, advocating for continued support for the African Development Bank (AfDB) and its President, Akinwumi Adesina. The letter highlights the AfDB's crucial role in Africa's development, its commitment to private sector financing, and its efforts to combat the COVID-19 pandemic.

Key Takeaways:

  • The U.S. has played a leadership role as the AfDB's largest non-regional (non-African) shareholder, and the second-largest overall, since joining the Bank in 1983.
  • The AfDB's High5 strategy, launched under President Adesina's leadership, has directly impacted the lives of millions of Africans by investing in energy and electricity, agriculture technologies, access to private sector finance, transport infrastructure, and water and sanitation.
  • In 2019, the AfDB's shareholders approved a General Capital Increase of $115 billion, more than doubling the Bank's capital from $93 billion to $208 billion, with the U.S. contributing $499,695,200, representing 7.81% of total subscriptions.
  • The AfDB's concessional window, the African Development Fund (ADF), received a 35% replenishment with donor contributions in 2019, with the U.S. contributing $499,695,200.
  • President Adesina led an unprecedented effort to attract global investments into Africa through the inaugural Africa Investment Forum, which mobilized $78.8 billion in investment interests between 2018 and 2019.
  • The U.S. Treasury and State Department's support has certainly led to a greater understanding of Africa's dynamic investment landscape for American businesses.
  • The AfDB has launched several innovative initiatives, including a $10 billion COVID-19 Response Facility, a $3 billion Fight COVID19 social bond on the London Stock Exchange, and the Desert to Power initiative, which will develop 10,000 megawatts of solar power across 11 countries in the Sahel Region.
  • The AfDB's Affirmative Action for Women in Africa (AFAWA) initiative, launched at the 2019 G7 Summit and the Global Gender Summit in Rwanda, has received strong support from President Macron, the G7 leaders, and the Women Entrepreneurs Finance Initiative (WeFi), and aims to leverage $3 billion in women business financing.
  • American enterprise is poised to play a more influential economic role in Africa, with the Executive Committee of the Africa Union endorsing President Adesina for re-election to a second term.

Statistics:

  • $115 billion: General Capital Increase approved by the AfDB's shareholders in 2019.
  • $208 billion: AfDB's capital after the General Capital Increase.
  • $499,695,200: U.S. contribution to the AfDB's capital increase.
  • 7.81%: U.S. share of total subscriptions to the AfDB's capital increase.
  • $78.8 billion: Investment interests mobilized by the Africa Investment Forum between 2018 and 2019.
  • $5 billion: Facility agreement signed by the U.S. International Development Finance Corporation (DFC) with the AfDB in 2019.
  • $10 billion: COVID-19 Response Facility launched by the AfDB to cushion economic and social impacts of the pandemic on the continent.
  • $3 billion: Fight COVID19 social bond issued on the London Stock Exchange.
  • 10,000 megawatts: Solar power to be developed across 11 countries in the Sahel Region through the Desert to Power initiative.
  • $20 billion: Investment in the Desert to Power initiative.

Sources:

  • Letter from Ambassador Harold E. Doley, Jr. to US Secretary of the Treasury, Steven Mnuchin (https://bit.ly/2MinM94)
  • African Development Bank website (https://www.afdb.org/)
  • United States Department of the Treasury website (https://www.treasury.gov/)
  • African Development Fund website (https://www.afdb.org/en/topics-economic-outlook/african-development-fund/)
  • Africa Investment Forum website (https://AfricaInvestmentForum.com)
  • Desert to Power initiative (https://bit.ly/2yS1kAD)
  • Affirmative Action for Women in Africa (AFAWA) initiative (https://bit.ly/3eEAg7a)