9 January 2007
Observers anticipate an emphasis on large infrastructure
Having completed a mid-term review of its operations under the current round of funding, the African Development Fund - the concessional lending arm of the African Development Bank group - is gearing up to facilitate the 11th round of donor replenishment, ADF-XI. While participants in the replenishment process agreed to hold the first meeting in March, the negotiations are not expected to begin in earnest until May when the AfDB holds its annual meetings in Shanghai.
The African Development Bank, like other public lending institutions such as the World Bank, relies on periodic replenishments of its lending facilities by member countries. Donor countries contribute new funds to the ADF every three years. The Bank’s dependence on these funds gives donors considerable influence over the way the money is used, shaping the policies and strategic directions of the institution.
The current 10th round of the African Development Fund, which will run from 2005 through 2007, has focused on supporting cross-border, regional integration projects. The next round, which will cover 2008 through 2010, is expected to prioritize funding for fewer, larger investments, particularly within the infrastructure sector.
Meanwhile, Turkey has expressed interest in joining the African Development Bank next year, to reflect its increasing volume of trade with Africa. Roughly 40 percent of subscriptions to the African Development Bank come from non-regional members.
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