ANNUAL REPORT

2018
African
Development
Bank Group
African Development
Bank Group Message from the President............. ii
MEMBER COUNTRIES
The President and the
Executive Directors .......................... iii
Regional
Letter of Transmittal......................... iii
Algeria, Angola, Benin, Botswana, Burkina
Faso, Burundi, Cabo Verde, Cameroon,
Central African Republic, Chad, Comoros,
Congo, Côte d’Ivoire, Democratic Republic
of Congo, Djibouti, Egypt, Equatorial Guinea,
Eritrea, Eswatini, Ethiopia, Gabon, Gambia,
Ghana, Guinea, Guinea-Bissau, Kenya,

1
Lesotho, Liberia, Libya, Madagascar, Malawi,
The Drive
Mali, Mauritania, Mauritius, Morocco,
for Africa's
Mozambique, Namibia, Niger, Nigeria, Development
Rwanda, São Tomé & Príncipe, Senegal,
Page 1
Seychelles, Sierra Leone, Somalia, South
Africa, Sudan, South Sudan, Tanzania, Togo,
Tunisia, Uganda, Zambia, Zimbabwe.

Non-regional

Argentina, Austria, Belgium, Brazil,

Canada, China, Denmark, Finland, France,

2
Germany, India, Italy, Japan, Korea, Kuwait,
Luxembourg, Netherlands, Norway, Portugal, Bank Group
Operations
Saudi Arabia, Spain, Sweden, Switzerland,
through a
Turkey, United Arab Emirates (member of
High 5 Lens
the African Development Fund only), United
Page 5
Kingdom, United States of America.
3
BOXES
Strengthening Box 2.1 Quantum Power–Menengai 35 Megawatt
Geothermal Project in Kenya....................................................................... 9
Institutional
Management Box 2.2 Technologies for African Agricultural Transformation............................. 11

Box 2.3 Transformative Trade Finance to Support Liberian

Page 26
Small and Medium Enterprises.................................................................. 12

Box 2.4 Indorama Fertilizers Train 2 Project in Nigeria......................................... 13

Box 2.5 Bridge Linking Gambia and Senegal Ushers in a

New Era of Connectivity............................................................................. 16

Box 2.6 Innovative Financing for the Kampala–Jinja Expressway........................ 23

Box 2.7 Results-based Program for Improving Access to

Employment in Morocco............................................................................ 24

Box 2.8 De-risking Private Investments in the Nigeria

Rural Electrification Project........................................................................ 25

Box 3.1 The Africa Investment Forum..................................................................... 30

Box 5.1 Bank Capital Market Operations............................................................... 43

4
Boards’ FIGURES
Oversight Figure 2.1 Bank Group Approvals, 2016–18................................................................. 6

Page 34 Figure 2.2 Bank Group Approvals by High 5 Priority, 2016–18................................... 6

Figure 2.3 Bank Group Disbursements, 2013–18......................................................... 7

Figure 2.4 Bank Group Portfolio Distribution across Sectors in 2018........................ 8

Figure 2.5 Climate Finance, 2018................................................................................ 21

Figure 2.6 Bank Group Approvals by Region, 2018................................................... 22

Figure 3.1 Improvements in the Implementation Status

of Management Actions............................................................................. 28

Figure 4.1 Bank Group Governance Structure........................................................... 37

Figure 4.2 Independent Development Evaluation, 2018.......................................... 38

TABLES

5
Table 2.1 Bank Group Approvals by Financing Instrument, 2018............................ 7

Table 2.2 Results from Completed Projects.............................................................. 19

Financial Performance
and Abridged Financial Table 2.3 Bank Group Portfolio by Region, 2018..................................................... 22

Statements Table 3.1 Resources Mobilized through Trust Funds............................................... 29

Page 40 Table 3.2 Bank Group Staffing and Employment Status as of

31 December 2018...................................................................................... 31

Table 5.1 Abridged 2018 Financial Results of the Bank Group.............................. 41

Table 5.2 Selected Financial Metrics, 2014–18......................................................... 42

Table 5.3 Selected Financial Metrics of the Bank Group, 2014–18........................ 44

Appendices ............................................................................................... 45

2018 ANNUAL REPORT i

Message from the President

It is my pleasure to submit the million, freeing up even more lending room for the Bank.
Bank Group’s Annual Report Again, the Bank is the first multilateral development bank to
for 2018. The year has been launch such an initiative.
wonderful for the African conti- Africa will develop not through aid but through the discipline
nent. And let me say, the future is of investments. That’s why the African Development Bank,
getting brighter. The continent’s together with its partners, launched the Africa Investment
general economic performance Forum in 2018. The forum was an incredible success, with deals
continued to recover in 2018, for a record USD 38.7 billion in investment identified in less than
with real GDP growth estimated 72 hours. Indeed, the Bank is now the leader in mobilizing
at 3.5 percent. Growth’s pace is private sector financing for the continent.
expected to be maintained at 4
percent in 2019 and 4.1 percent The Bank posted impressive financial results, maintaining our
in 2020. This momentum is strong, up from a mere 2.1 percent triple-A rating with a stable outlook from all four global finan-
as recently as 2016. cial rating agencies. But we also want Africa to get a “triple-A
development impact rating.” We need universal access to
Looking back to 2018, approvals by the Bank Group reached electricity. We must help make Africa self-sufficient in food.
UA 7.28 billion, with disbursements reaching UA 4.37 billion. We must fully integrate the continent. We must industrialize
The Bank’s efforts contributed greatly to the Bank’s High 5 the continent. And we must improve the quality of life for the
priority areas. To Light Up and Power Africa, 2,430 km of new people of Africa.
or improved power distribution lines and 480 km of new or
improved power transmission lines were connected—and 447 Being that kind of Bank depends on the work environment we
MW in new total power capacity was installed, 197 MW of it create for our staff—to unleash their collective and individual
renewable. To Feed Africa, about 19 million people gained potentials and to attract and retain top-notch talent. We are
access to improved agricultural technologies. To Industrialize making great progress on this. The Bank was ranked the 4th
Africa, 1.2 million people are benefiting from private sector best company to work for in Africa in 2018, a big jump from
investment projects. To Integrate Africa, about 14 million people 82nd in 2015. So, our reforms are paying off nicely, as the Bank
gained access to better transport services. And to Improve the is now a very attractive place to work. Also in 2018, we recruited
Quality of Life, 8 million people now benefit from improved staff for 677 positions, about 300 internal, the highest ever for
access to water and sanitation. By any measure, these numbers the Bank. The gross vacancy rate of the Bank Group dropped
and impacts are impressive. from 24 percent in 2017 to 14 percent in 2018.

But the needs in Africa are enormous. That’s why the Bank We continue to implement the Development and Business
is engaged in discussions with its shareholders for a Delivery Model. Our results on the ground and our income
General Capital Increase to do much more for Africa—toward growth trajectories show that the model is working. We will
Agenda 2063. A stronger and substantially capitalized African not relent on our commitment to improve weak areas, even
Development Bank is good for the overall effectiveness of the as we continue strengthening strong areas. The Delegation of
multilateral development finance system. And it is good for Authority Matrix was revised and approved to devolve more
stronger convening powers and partnerships to deliver more authority for decision making to the Regional and Country
for Africa—together. The first Governors Consultative Committee Offices. The change enables the Bank Group to respond faster
meeting in Rome in November 2018 was a success. I look to its clients. With 41 country offices being staffed with the right
forward to more such meetings in 2019. The Medium-Term mix of skills, the Bank Group has a greater presence in Regional
Review of ADF-14 was very successful. The Deputies approved our Member Countries.
moving forward with the ADF market borrowing option and initiating A special word of thanks to the dedicated Boards of Directors,
the process for changing the ADF articles accordingly. I am Management, and Staff for steering the Bank in 2018. I am
hopeful for a higher ADF-15 replenishment. optimistic about Africa’s future. I am confident in our capacity as a
The Bank gained global acclaim with the launch of its USD Bank to make a greater impact on the lives of millions of people
1 billion synthetic securitization, which allows us to sell off across this beloved continent we have been called to serve!
some of our portfolio’s risk to the private sector and to free up
more than USD 700 million in lending room for private sector
financing. As the first of such achievement by any multilateral
development bank, we are spearheading innovation globally. Akinwumi Ayodeji Adesina
President of the African Development Bank Group
We also launched our Portfolio Credit Insurance with USD 500
Chairperson of the Boards of Directors

ii 2018 ANNUAL REPORT

The President and the Executive Directors

Seated, from left to right: Mmakgoshi E.P. Lekhethe, Bright Standing, from left to right: Secretary General Vincent O.
Erakpoweri Okogu, Soraya Mellali, Federica Diamanti, Nmehielle, René Obam Nlong, Steven Dowd, Moussa Dosso,
Abdelmajid Mellouki, President Akinwumi A. Adesina, Kwabena Boadu Oku-Afari, David Stevenson,Takuji Yano,
Martine Mabiala, Catherine Cudre-Mauroux, Karin E. Isaksson, Heinrich Mihe Gaomab II, Tariq Al-Tushani, Nyamajeje Calleb
Dominique Lebastard, Ahmed Zayed. Weggoro, Patrick Francis Zimpita.

Letter of Transmittal
In conformity with Article 32 of the Agreement Establishing for the financial year ended 31 December 2018. This Annual
the African Development Bank, and Articles 8, 11, and 12 of Report includes a review of developments in the operational
the General Regulations adopted thereunder, and pursuant activities of the Bank Group during 2018. The Financial Report
to Article 26 of the Agreement Establishing the African contains the full set of audited financial statements of the Bank
Development Fund and Articles 8, 11, and 12 of the General and the special purpose financial statements of the Fund,
Regulations adopted thereunder, the Boards of Directors together with the approved administrative budget for 2019.
of the Bank and of the Fund hereby submit to the Boards of Electronic versions of the two Reports are available on the Bank
Governors the Annual Report and the Financial Report of the Group’s website at www.afdb.org/annualreport.
African Development Bank and the African Development Fund

2018 ANNUAL REPORT iii

Approvals

Approvals by High 5
Integrate
Africa Approvals by region
Improve the
Quality of Life
for the People Multiregional North
11% of Africa
33%
7% 16%
West
22%

34% 21% East

15% 19%

Light Up and
Industrialize Power Africa 10% 12%
Africa
Feed Africa

Central Southern

Approvals by sector
2.0% Environment
3.5% Industry, mining,
and quarrying Agriculture

10.4% 2.4% Social

Multisector

14.6%

17.3%
Finance 49.7% Infrastructure

iv 2018 ANNUAL REPORT

 The Bank maintained a triple-A
rating with a stable outlook from
Financial highlights all four global rating agencies.

Bank Group revenue 2017–18 Bank Group approvals and

(UA millions) disbursements 2017–18
(UA millions)
854.5 7,279
7,000
800 6,196
2017
6,000 5,426
2018
2017 5,000
671.7 4,365
2018
4,000
600
3,000

2,000

1,000

400 0
Approvals Disbursements

200 183.3
147.6

Africa
2.8 3.5
Investment
0
ADB ADF NTF
Forum
400 investors
Co-financing resource mobilization from 53 countries
by the Bank 2017–18 (UA billions)

5
5.0
Investment interest
2017
4 3.4 2018
secured across
2.8
3
2
2.4
49 deals worth
1 USD 38.7 billion
0
Public Private

Capital as of 31 December 2018

Authorized Subscribed Callable Paid-up capital Total reserves

UA 66.98 UA 65.11 UA 60.15

billion billion billion

UA 4.96 billion UA 2.81 billion

2018 ANNUAL REPORT v

Highlights based on completed Bank Group projects

The High 5s

Improve the
Light Up and Feed Quality of Life
Power Africa Africa for the People
of Africa
447 MW of new power capacity 19 million people provided
installed with improved agricultural 8.2 million people provided
technologies with access to improved water
480 km of new or improved and sanitation
power transmission lines added 1,700 tons of agricultural
inputs (fertilizers, seeds, and 1.2 million direct jobs created
the like) provided

Industrialize Integrate
Africa Africa
154,000 owner-operators and 390 km of cross-border roads
micro, small, and medium built or rehabilitated
enterprises provided with
access to financial services 14 million people gained access
to better transport services
USD 354 million of additional
government revenue generated

Cross-cutting areas

UA
UA
UA

The Transition The Bank rolled out its Program-based Share of climate
Support Fund Gender Marker System operations finance increased to
approved to track gender (UA 1.13 billion) 32 percent of all
UA 225 million to mainstreaming in its supported reforms approvals on track to
finance interventions operations and policies meet the 2020 target
in countries in strengthening of 40 percent
fragile situations Gender specialists governance
are now part of project
teams, and more Bank
operations include
gender analysis and
action plans

vi 2018 ANNUAL REPORT

 1
THE DRIVE FOR AFRICA'S DEVELOPMENT | 1

CHAPTER
The Drive
for Africa’s
Development

Container Terminal, South Africa

2018 ANNUAL REPORT 1

1 | THE DRIVE FOR AFRICA'S DEVELOPMENT

Global growth has stabilized, In 2018, Africa’s Gross Domestic Product (GDP)
growth reached an estimated 3.5 percent, roughly
with world output estimated
the same as in 2017 and up by 1.4 percentage point
to have grown by 3.7 percent from 2.1 percent in 2016. In the short term, growth
is projected to accelerate to 4 percent in 2019 and
in 2018 and projected to grow
4.1 percent in 2020. These projections are higher
by the same magnitude in than those of other emerging and developing
regions. However, domestic risks, in addition to
2019. With the volatility of
external constraints, could limit the continent’s
commodity prices and the rise growth. These include climate change, security
of trade tensions between the and migration concerns, increasing vulnerability to
debt distress in some countries, and uncertainties
United States and its main associated with elections and political transitions.
trading partners, the external In 2018, while East Africa remained the
fastest growing region (at 5.7 percent),
environment has created
North Africa contributed the most to
increasingly adverse conditions overall African GDP growth, accounting
for Africa’s growth. Higher for 37 percent. The general drivers of Africa’s
economic growth have been gradually rebalancing,
interest rates in the United moving from consumption to investment and
States and the strengthening of exports. The recent commodity price rebound and
particularly the increase in oil prices, supported
the US dollar have put pressure the recovery of commodity exporters. Overall, 17
on the currencies of developing African countries achieved real GDP growth higher
than 5 percent in 2018, and 21 between 3 and 5
countries and increased the costs percent. Only five African countries recorded a
of borrowing. While the increase recession in 2018, down from eight in the two
previous years. Six of the world’s ten-fastest
in energy prices gave relief for oil growing economies (Burkina Faso, Côte d’Ivoire,
producers, it also worsened the Ethiopia, Libya, Rwanda, and Senegal) are African
countries. Some non-resource-rich countries had
terms of trade for oil importers. high growth rates in 2018, including Côte d’Ivoire
(7.4 percent), Rwanda (7.2 percent), and Senegal
(7 percent), supported by agricultural production,
consumer demand, and public investment.

2 2018 ANNUAL REPORT

 THE DRIVE FOR AFRICA'S DEVELOPMENT | 1

Economic fundamentals in most African countries To ensure a high social return on debt-financed
continued to improve, thanks to fiscal consolidation public investment, it is important to strengthen
along with massive investments in infrastructure, the debt–investment link. In this regard, the Bank’s
major inroads in financial innovation, increased multidimensional approach to mitigating the
domestic demand, and substantial improvements risk of debt distress in Africa will include tapping
in the investment climate (more than a third of new sources of funding to lower the cost of debt;
global reforms). On average, Africa’s fiscal deficit engaging in policy dialogue to raise awareness of
declined from 5.8 percent in 2017 to an estimated debt sustainability at the highest political level;
4.5 percent in 2018, while inflation fell from laying the foundation for efficient use of existing
12.6 percent in 2017 to 10.9 percent in 2018. resources to limit recourse to additional debt;
However, growth rates remain insufficient strengthening country capability to manage debt;
to address the persistent challenges of high supporting efficient and productive use of debt;
unemployment, low agricultural productivity, and building fiscal capacity for increased domestic
inadequate infrastructure, and fiscal and current resource mobilization.
deficits as well as debt vulnerabilities. Although tax
revenues and spending efficiency have improved,
domestic resource mobilization has generally
remained well short of potential. For instance,
16 African countries were classified as being in
On average,
debt distress or at high risk of debt distress at the
end of 2018. Africa’s fiscal deficit declined
Debt in Africa has risen steadily in recent years
from 5.8 percent in 2017 to an
after having declined and stabilized under the
Heavily Indebted Poor Countries Initiative, and the estimated 4.5 percent in 2018,
Multilateral Debt Relief Initiative. Africa’s public
debt represented 58 percent of GDP in 2017, up
while inflation fell from
from 36 percent in 2008. The drivers of the rise 12.6 percent in 2017
in debt include low commodity prices, higher
infrastructure spending, depreciating exchange to 10.9 percent in 2018.
rates, rising costs of foreign currency borrowing,
and greater defense and security spending.
There is, however, significant heterogeneity
across countries and regions. At the end of 2017,
the government debt-to-GDP ratio was below
40 percent for 16 of 52 countries with data and
above 100 percent for six.

2018 ANNUAL REPORT 3

1 | THE DRIVE FOR AFRICA'S DEVELOPMENT

Africa has the world’s fastest growing

population. The continent’s young labor force is
projected to grow at an average rate of 2.75 percent
a year between 2016 and 2030, so an inclusive and
pro-employment growth path is crucial to creating
enough jobs. In addition, the adverse impacts of
climate change, now pronounced, are projected to
become even starker by 2050, undermining Africa’s
agricultural performance and water and energy
security.
These challenges call for significant investment
and external funding, involving the private sector,
particularly in regional infrastructure development
A view of Kigali in Rwanda
and financing. The continent faces a large annual
gap of between USD 68 billion and 108 billion
in meeting its infrastructure investment needs, In line with its High 5 priorities, the African
estimated at USD 130 to 170 billion a year. African Development Bank is ideally placed to enhance
countries must therefore fast-track economic social and economic inclusiveness in Regional
transformation and structural reforms and continue Member Countries (RMCs) through infrastructure
to tap into identified opportunities. development, agro-industrialization, improved
Fostering regional integration would increase access to finance, and support for regional
trade and economic cooperation, and enhance integration. As a knowledge institution with an
the delivery of regional public goods, but also overview of Africa, the Bank helps to produce
enable countries to move up the ladder through and manage knowledge, build capacity and
specialization and reverse external imbalances. provide sound policy advice to RMCs’ decision-
The African Continental Free Trade Agreement makers. It also aims at boosting blended finance
(AfCFTA), upon entry into force, will contribute to for attracting private investment at scale. In this
the creation of the world’s biggest free trade area context, the results of the first Africa Investment
in terms of the number countries involved, and Forum, organized by the Bank in Johannesburg in
will be an important driver of sustained economic November 2018, exceeded expectations, resulting
growth. in 49 deals totaling USD 38.7 billion.

4 2018 ANNUAL REPORT

 2
THE DRIVE FOR AFRICA'S DEVELOPMENT | 1

C HAPTER
Bank Group
Operations
through a
High 5 Lens

Tea Farm, Ethiopia

2018 ANNUAL REPORT 5

2 | BANK GROUP OPERATIONS THROUGH A HIGH 5 LENS

Approvals
Figure 2.1: Bank Group Approvals, 2016–18
The Bank performed well in 2018, despite challenges such as
high indebtedness by RMCs and other operational constraints. (UA millions)
Bank Group approvals for 2018 picked up, amounting to
UA 7.28 billion (Figure 2.1). This includes UA 6.21 billion in Bank Group
approvals across the Bank Group’s two entities—the African African Development Bank
Development Bank and the African Development Fund—as African Development Fund

well as UA 1.07 billion in approvals under the Nigeria Trust

Fund, the Private Sector Credit Enhancement Facility, the 8,035
8,000
Transition Support Facility, and the Special Funds. 7,279
Approvals through the African Development Bank totaled 7,000
6,335 6,196
UA 5.13 billion, up 14 percent from 2017 (Table 2.1). In
6,000
2018, the share of non-sovereign operations in the African
5,125
Development Bank was 32 percent, compared with
5,000
37 percent in 2017, largely attributable to a sharp drop in 4,502

lines of credit to financial institutions, which represented 4,000

19 percent of non-sovereign operations, compared with 35
percent in 2017. African Development Fund approvals in 3,000
2018 totaled UA 1.09 billion. Approvals under the Nigeria
2000
Trust Fund amounted to UA 13.3 million—up from zero in
1,268
2017. The agreement between the Bank and the Federal 959 1,088
1,000
Republic of Nigeria, establishing the NTF, expired on 25 April
2018. The Agreement was extended for an additional period 0
of five years starting from 25 April 2018 until 25 April 2023. 2016 2017 2018
The combined approvals for the Nigeria Trust Fund, Private
Sector Credit Enhancement Facility (PSF), the Transition
Support Facility (TSF), and Special Funds increased by
45 percent from the level in 2017. Loans and grants represented
the largest share (81 percent) of African Development Bank

Figure 2.2: Bank Group Approvals by High 5 Priority, 2016–18

(UA millions)
3,317

3,000
2016
2017
2,500 2,376
2018
2,172

2,000

1,553 1,607
1,387 1,445 1,398
1,500
1,126 1,126

1,000 906
815 806 783
695

500

0
Light Up and Feed Africa Industrialize Africa Integrate Africa Improve the Quality of Life
Power Africa for the People of Africa

6 2018 ANNUAL REPORT

 BANK GROUP OPERATIONS THROUGH A HIGH 5 LENS | 2

Table 2.1: Bank Group Approvals by Financing Instrument, 2018

(UA millions)

ORDINARY RESOURCES SPECIAL RESOURCES

Private
African African Nigeria Sector Credit Transition
Financing Develop- Develop- Trust Enhancement Support Special Bank
instrument ment Bank* ment Fund* Subtotal Fund Facility Facility Funds Subtotal Group
Total loans
4,153.71 1,088.20 5,241.91 13.30 — 224.51 — 237.81 5,479.72
and grants

Other
971.43 — 971.43 — 119.45 — 708.21 827.66 1,799.09
approvals

Of which

Equity
211.83 — 211.83 — — — — 211.83
participation

Guarantee 759.61 — 759.61 — 119.45 — 119.45 879.06

Other — — — — — 708.21 708.21 708.21

Total
5,125.14 1,088.20 6,213.34 13.30 119.45 224.51 708.21 1,065.47 7,278.81
approvals

*Excluding special resources.

approvals. There was a substantial increase in guarantees,

which climbed to 15 percent of 2018 African Development Figure 2.3: Bank Group Disbursements,
Bank approvals, from 4 percent in 2017 (Table 2.1).
2013–18
The Improve the Quality of Life for the People of Africa
(UA millions) 5,426
priority continued to receive the largest share of approvals
at UA 2.38 billion (33 percent of the total). Approvals for 5,000
4,721
the Industrialize Africa priority accounted for UA 1.61 billion
4,365
(22 percent). The Light Up and Power Africa priority accounted
for UA 1.39 billion (19 percent), followed by Feed Africa 4,000
with UA 1.13 billion (15 percent), and Integrate Africa with
UA 783 million (11 percent) (Figure 2.2). 3,193 3,202
3,084
Total approvals were 18 percent higher than in 2017, confirming 3,000

the steady growth of the last five years, except for the larger
2016 approvals to support recovery from the commodity
2,000
price collapse. The High 5 priorities continued to support the
achievement of the Sustainable Development Goals and to
drive the composition of new approvals.
1,000

Disbursements
0
In 2018, total disbursements reached UA 4.37 billion, 2013 2014 2015 2016 2017 2018
88 percent of the UA 4.96 billion target (Figure 2.3). Delays
in sovereign loan effectiveness and procurement processes
arising from weak implementation capacity in some of
the beneficiary RMCs, reversed the record increases in
disbursements of project loans and grants experienced in
2017. Disbursements for non-sovereign operations reached
a ratio of 75 percent, well ahead of the target of 50 percent.
2018 ANNUAL REPORT 7
2 | BANK GROUP OPERATIONS THROUGH A HIGH 5 LENS

Co-Financing Innovative Financing

The Bank continued its resource mobilization through In 2018, the Bank secured seven mandated lead-arranger
co-financing, with the objective of crowding in additional roles to support private sector projects, including Air Côte
financing for implementing the High 5s. The Bank’s approved d’Ivoire and Ghana Cocoa Board. The Bank will use USD 540
operations generated a combined UA 7.4 billion in additional million from its own resources to leverage USD 1.9 billion
co-financing investments from partners such as Agence from commercial banks through private sector syndication,
Française de Développement, the European Union, the for a leverage ratio of 1:3.5.
European Investment Bank, and the World Bank. The volume For public sector co-financing, the Bank mobilized USD 160
of co-financing resources leveraged on Bank-financed public million through the Accelerated Co-financing Facility for
sector projects stood at UA 5.0 billion. Africa, EUR 531 million through the Africa Investment Platform
under the European Union, and USD 295 million through the
Bank Group Portfolio Africa Growing Together Fund. Together, they contributed
to the Bank’s efforts to scale up its investment in agriculture,
The health of the portfolio improved during 2018, as the
energy, transport, and water and sanitation, reflecting an
overall proportion of flagged operations fell in every region,
estimated 33 percent increase over amounts mobilized in
and fell overall from 36 percent at the end of 2017 to
2017 from these three co-financing facilities.
23 percent at the end of 2018. Delays in project
implementation continue to be the dominant flag. With its Among other initiatives, the Bank approved a EUR 470 million
enhanced proximity to RMCs, the Bank is addressing this partial credit guarantee to cover the obligations of Senegal
issue by accelerating the signing of loan protocols with under currency-risk hedging arrangements with commercial
governments, closer follow-up to satisfy the conditions of first banks, to hedge its USD 1.4 billion exposure on its two
disbursement, and training the staff of executing agencies. Eurobonds maturing in 2021 and 2033.

As of 31 December 2018, the Bank Group’s active portfolio The European Fund for Sustainable Development approved
was led by transport (25 percent), power (22 percent), finance EUR 12.5 million in a guarantee and EUR 1 million in technical
(19 percent), agriculture (10 percent), and water and sanitation assistance in 2018 to enhance the Bank’s local currency loans,
(9 percent). The financial sector loans benefited many different and provide a blended pricing mechanism. The Bank also
sectors (Figure 2.4). co-guaranteed a EUR 24 million project, financed in CFA
francs, to back a receivables-based financing structure to
scale up pay-as-you-go off-grid home solar power systems in
Côte d’Ivoire.
Figure 2.4: Bank Group Portfolio
Distribution Across Sectors in 2018
Highlights of the Bank Group’s
Operations by High 5 Priority
8.6% Water and sanitation 9.6% Agriculture

Light Up and Power Africa

25.1% Transport 1% Communication
With strong and mutually supportive lending and knowledge
services, approvals for Light Up and Power Africa amounted
to UA 1.39 billion, 23 percent more than in 2017. Close
0.3% Environment
to 90 percent of Bank lending focused on infrastructure
4.4% Social
18.9% Finance investments, similar to the 91 percent of 2017. UA 220 million
were mobilized from various co-financing facilities, including
the Green Climate Fund, Climate Investment Funds, Global
2% Industry, mining,
Environmental Facility, China’s Africa Growing Together
and quarrying Fund, the European Union External Investment Plan, UK’s
21.8% Power Department for International Development, and the Bank’s
8.3% Multisector Sustainable Energy Fund for Africa. The Bank’s operations
made it possible to leverage an additional UA 1.2 billion in
indirect co-financing, and private sector lending increased

8 2018 ANNUAL REPORT

 BANK GROUP OPERATIONS THROUGH A HIGH 5 LENS | 2
Box 2.1: Quantum Power–
Menengai 35 Megawatt
Geothermal Project in Kenya
to UA 290 million, up 18 percent over 2017. Sixty percent
of the power capacity to be installed under the operations
approved in 2018 will draw on renewable sources, including
geothermal energy (Box 2.1).
The project involves the design, construction, The year 2018 was one of several innovative “firsts”:
and operation of a 35
megawatt • The Bank’s first stand-alone private sector off-grid
geothermal power plant with investment, the Zola Energy Pay-as-you-go Solar Home
Systems Project in Côte d’Ivoire, will facilitate deployment
an annual output of around 291 gigawatt of 100,000 solar home systems.
hours. The project company signed a 25-
• The Bank’s first results-based financing, the Scaling-up
year take-or-pay power purchase agreement Electricity Access Project in Rwanda, will provide 285,000
with the national power utility, the Kenya additional connections.
Power and Lighting Company, and a • The Bank’s first large-scale green mini-grid development
project implementation and steam supply project, the Nigeria Rural Electrification Project, will crowd
agreement with the state-owned Geothermal in USD 250 million in private sector financing and provide
125,000 decentralized solar powered connections in
Development Company.
remote areas (Box 2.8).
The plant will increase Kenya’s installed • The Bank’s first project under the desert-to-power
baseload capacity while addressing growing initiative, the off-grid component of the Yeleen Solar
demand for reliable and affordable electricity. Program in Burkina Faso, will provide decentralized
energy solutions to 150,000 households in rural areas.
Geothermal is one of the cheapest sources
of energy in Kenya. It will diversify the • The Bank’s first project to support an independent
power producer using concentrated solar power
country’s energy mix, reduce its depend-
technology combined with molten salt energy storage,
ence on fossil fuels, and lower end-user the 100-megawatt Redstone plant in South Africa, will
electricity tariffs. Total greenhouse gas provide baseload power equal to the annual electricity
savings are estimated at about 95,000 consumption of around 210,000 households.

tons of carbon dioxide equivalent

per year. The
project
will create roughly
300 jobs during
construction and 30
UA 1.39
during operation, billion
30 percent of them invested to Light Up
and Power Africa
for women.
$$

UA A
U
UA 1.2
billion
UA leveraged in
co-financing

Credit: Geothermal Development Company (CDG)

2018 ANNUAL REPORT 9

2 | BANK GROUP OPERATIONS THROUGH A HIGH 5 LENS

Working with RMCs, the Bank has maintained strong leadership

and partnerships in support of continental and global efforts
on food and nutritional security. For example, the Program for
Integrated Development and Adaptation to Climate Change
in the Niger Basin covers Benin, Burkina Faso, Cameroon,
Chad, Côte d’Ivoire, Guinea, Mali, Niger, and Nigeria. The
Bank’s investment in the Basin strengthens the resilience of the
Niger River’s ecosystems and population through sustainable
natural resource management. Sixteen agricultural value
chain operations were approved in 2018 to improve the
competitiveness of key commodities.
Non-sovereign operations fostered much-needed dynamism
in the agribusiness sector, which tends to be relatively
underserved. The Bank’s investments in agro-allied corporates
such as DAL Group in Sudan and Flour Mills in Nigeria will
generate large employment impacts, promote backward
Wind farms, Cabo Verde integration with outgrowers, and support processing to feed
Africa’s growing internal and export market.
As part of its knowledge work, the Bank launched the Electricity • The Bank’s investment in DAL Group is the first Non-
Regulatory Index to benchmark regulatory performance and Sovereign Transaction in Sudan.
identify areas for improvement. The Africa Energy Portal is a • The Bank’s investment in Ghana’s Cocoa Board will
one-stop shop for energy data, information, and knowledge. enhance productivity and transform the cocoa value
The African Financial Alliance for Climate Change encourages chain sector in Ghana. The Bank continued mobilizing
financial providers to shift their portfolios toward climate- additional financing mainly from commercial lenders and
resilient and low-carbon investments. The Bank also rolled development finance institutions.
out the Africa Energy Market Place, a collaborative platform
for public–private dialogue that endorsed Joint Energy • Bank guarantees under the Ghana Incentive-Based Risk
Action Plans for Côte d’Ivoire, Ethiopia, Nigeria, and Zambia. Sharing for Agriculture Lending will leverage commercial
bank lending to agriculture and agribusinesses.

Feed Africa
The Bank’s Feed Africa operations seek to transform
African agriculture into a globally competitive, inclusive,
and business-oriented sector—creating wealth, generating

UA 1.13
gainful employment, and improving the quality of life.
Total approvals in 2018 amounted to UA 1.13 billion. The
projects approved included two investments to support
fertilizer production and distribution in Morocco and Nigeria,
billion
devoted to Feed
some Program-based Operations that address policy Africa in 2018
constraints in the sector, direct investments to increase
agricultural productivity and production and to support
agribusiness, and development of agricultural value chains.
This reflects the true nature of the Bank-wide Feed Africa
program with investments that cut across many sectors in
the Bank. The Bank also leveraged additional investments Staple crop
through various financial instruments such as equity, quasi- processing zones
equity, and debt to catalyze investment at scale from the initiative
private sector and with co-financing of about UA 950 million. rolled out

10 2018 ANNUAL REPORT

 BANK GROUP OPERATIONS THROUGH A HIGH 5 LENS | 2
Box 2.2: Technologies for African
Agricultural Transformation
• With project preparation support and financing from
the Bank, the Staple Crop Processing Zones Initiative is
being rolled out to turn the African rural landscape into
A grant was approved to implement Phase I economic zones of prosperity and lay the foundation for
of the Technologies for African Agricultural Africa’s agro-industrialization to lift millions of Africans
Transformation (TAAT) to rapidly scale up out of poverty. Botswana, Côte D’Ivoire, Egypt, Ethiopia,
agricultural technologies to reach millions Guinea, Kenya, Morocco, Senegal, South Africa, Tanzania,
and Togo have expressed interest in the initiative. In Togo,
of African farmers and primary processors.
the Bank’s funding leveraged co-financing resources from
The initiative brings together Consultative the West African Development Bank (BOAD) and the
Group on International Agricultural Research Saemaul Globalisation Foundation (Korea). In Ethiopia, it
(CGIAR) centers in Africa as partners to scale up leveraged additional resources from the Korea Exim Bank,
the European Union, and Big Win Philanthropy (UK).
agricultural technologies and build agricultural
value chains along agro-ecological zones.
In the first phase of TAAT, nine priority
commodities were strategically identified for
initial investment, and an emergency consortium
was set up to deal with the fall army-worm
crisis. The implementation structure is now fully
operational, consisting of 11 CGIAR centers,
national agricultural research and extension
system centers, private agribusinesses,
and other partners.

In its first year of operations, TAAT made

impressive progress. For example, the
Shuaibu Yusuf owns
maize compact has worked with 30 seed
companies to produce 27,000 metric tons of a few properties
drought-tolerant maize seed varieties for use by where he grows vegetables using
2.6 million maize farmers. By the end of 2018, high-quality fertilizer, produced by
more than 1.6 million farmers had received and Indorama Eleme Fertilizers in Nigeria.
planted these seeds. To respond to the army- “The benefits that I get from farming are food,
worm crisis, TAAT
facilitated the education for my children, and the ability
deployment over 6,000 tons of to pay medical bills,” he says. Shuaibu
drought-tolerant maize varieties and his family work together on the farms,
treated with Fortenza Duo, to more than 1.5 and the increased yields have improved
million farmers in Southern Africa. the family’s health and income.

Shuaibu Yusuf, farmer, Nigeria

Indorama Eleme Fertilizers

2018 ANNUAL REPORT 11

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Box 2.3: Transformative Trade Finance
to Support Liberian Small and Medium
Enterprises
Industrialize Africa
Approvals for Industrialize Africa reached UA 1.61 billion in
2018, up 15 percent from the level in 2017. Approvals for the
A USD 12 million funded line of credit to financial sector amounted to UA 1.17 billion, with UA 756
million for non-sovereign operations, and disbursements
local banks will provide liquidity to small
of UA 626 million. These loans supported activities across
and medium enterprises, and a USD 8 million a wide range of manufacturing and services in the private
risk participation agreement will allow local sector. The Bank also mobilized concessional and non-
banks to confirm letters of credit issued by concessional resources to support the financial sector. The
businesses. A technical assistance program European Commission provided EUR 65 million for first-loss
guarantees and EUR 10.7 million as grants to support
supporting the financial institutions will
financial sector development. In addition, the Bank mobilized
ensure that the facility is used appropriately. EUR 117 million from other development finance institutions
The expected impact of this and private sector entities. Additionally, it approved a USD 20
million trade finance package to support Liberian small and
financing includes: medium enterprises (SMEs) (Box 2.3).
• Enhanced access to lines of credit and The Bank is partnering with the European Commission (EC)
confirmation lines, improving foreign in arrangements that will widen the mix of products the Bank
offers, increase the Bank’s investments in SMEs, and support
exchange liquidity in Liberia.
UA African SME access to capital markets:
A
• Improved risk assessment and monitoring
U
$$
• SME Program. The EC approved a blended finance
as well as compliance with regulatory proposal for the Africa SME program, with the Bank
requirements. UA to receive partial first-loss guarantees up to EUR 20
• Greater use of innovative trade finance million. The first-loss guarantee is expected to reduce
the risk profile of the Bank’s investments in Tier 2 and
products by Liberian banks.
Tier 3 financial intermediaries, which should lower the
• Improved credit underwriting skills.
price of funds and make them more affordable for
• Reduced nonperforming loans thanks to
better loan management.

UA 1.61
billion
to Industrialize Africa

UA 1.17
billion
UA

of financial sector
$

approvals support private

sector activities in a wide
range of manufacturing
and services sectors

12
 Box 2.4: Indorama Fertilizers Train 2
Project in Nigeria
SMEs’ end borrowers, particularly for local currency
financing. The EC also approved a grant of EUR 3.7
million to support capacity development in financial
institutions and client SMEs.
The Bank provided UA 69.5 million to
• Social Impact Fund. The EC approved the Bank’s application
support the expansion of a fertilizer complex
to support the SME active social entrepreneurial space
in rural zones, through Social Impact Funds. EC  Support in Port Harcourt, Nigeria, increasing
consists in EUR 25 million first-loss guarantees to support
investments, and a EUR 2 million grant to support capacity
capacity from 1.4 to 2.4
building of fund managers and social entrepreneurs. The million tons a year by adding a
program will complement the Boost Africa Fund by targeting new and identical train to the existing plant.
non–venture capital funds.
This project increased the availability of urea
• One Platform for Africa. The EC also approved a
fertilizer to address Africa’s food security
proposal to promote access to capital markets by African
SMEs through the Archipelagos–One Platform for Africa concerns while creating direct and indirect
(ONE4A) Initiative, which is jointly led and coordinated jobs during construction and operation. It also
by the Bank and Cassa Depositi e Prestiti (CDP). ONE4A generated tax revenues for the Government
is structured in 2 pillars: (i) a technical assistance pillar
of Nigeria and improved the country’s
to build capacity for selected SMEs to access capital
markets and to boost capital markets ecosystem readiness
foreign exchange reserves through savings
for SME financing; and (ii) a guarantee pillar to crowd in local from reduced imports and foreign exchange
and private sector investors. The EC supports both pillars inflows from fertilizer exports.
of ONE4A with EUR 5 million in grant funding and a EUR
30 million first-loss guarantee from the European Fund for
Sustainable Development (EFSD).
The Industrialize Africa priority was also supported by other
operations in industrial and trade development including
a North Africa multinational operation, Maghreb Invest IV,
and a West Africa multinational project, the Verod Capital
Management Fund. On the sovereign front, the Rwanda
Innovation Fund will support SMEs in the innovation and
information and communication technology sectors.
The Bank’s Board approved the Non-Sovereign Operations
(NSO) Policy in September 2018. The NSO policy provides
the framework for the Bank, through its private sector lending
window, to provide financing or investments without sovereign
guarantees to private and public entities that meet specific
eligibility requirements on non-concessional terms. The
objective is to help accelerate the continent’s transformation
by offering various financial support mechanisms and products,
including loans, lines of credit, guarantees, blended finance,
equity investments, and trade finance. The Bank’s engagement
in selected NSOs will help scale up financing for the Bank’s High
5 priorities, with the aim of maximizing the catalytic impact of
its limited resources, while seeking to promote inclusive growth
and the gradual transition to “green growth” in its RMCs.

13
2 | BANK GROUP OPERATIONS THROUGH A HIGH 5 LENS

Marrakesh-Menara airport, Morocco

Integrate Africa
Approvals for Integrate Africa totaled UA 783 million in 2018,
an increase of 11 percent over 2017. To accelerate trade
facilitation, the Bank has invested more than USD 20 million
over the past five years in trade agreement support and in
cross-border transport, and energy soft infrastructure. In 2018,
the Bank provided robust support to the progress of the
African Continental Free Trade Agreement (AfCFTA), which
has the potential to create new markets for African companies
(particularly SMEs), boost efficiency and sales, increase foreign
direct investment, reduce input costs, and spur economic
growth. The Bank is also committing itself to build the
institutional and human capacities of the AfCFTA Secretariat.
“I’ve been in this profession for 20 years. In collaboration with the African Union Commission, the Bank
You have to prove your ability, developed the Africa Visa Openness Index, which measures
how open African countries are to travel by citizens from other
having a retentive memory, ability to
African countries. The index tracks changes in country scores
absorb pressure, stress. And then do over time and is intended to encourage countries to facilitate
multitasking. I have two children and the free movement of people across Africa. Some progress
has been made on visa openness in the last few years, with
I’m a single parent. They get excited
travel on the continent becoming easier and Africans needing
because they get to tell their friends visas to travel to fewer countries.
In March 2018, the Boards of Directors approved the
‘Oh, my mommy is going to Regional Integration Strategic Framework covering 2018–25.
control your flight.' The Framework is anchored on three pillars: infrastructure
connectivity, trade and investment, and financial integration.
So, they do understand my job.”
In its knowledge work, the Bank released key publications,
including the annual Africa Visa Openness Index and
Ivy Ampah, Air Traffic Controller,
Africa to Africa Investment: A First Look. It also supported
Kotoka International Airport, Ghana
industrial policy initiatives and studies with a focus on
regional integration, such as a study on the Fourth Industrial
Revolution, and a feasibility study for the Central Africa
Backbone ICT connectivity project.

14 2018 ANNUAL REPORT

 BANK GROUP OPERATIONS THROUGH A HIGH 5 LENS | 2

Multinational Transport The Kazungula Bridge project will replace the ferry and
Multinational transport projects amounted to UA 619 border facilities between Zambia and Botswana. The project
million and represented 79 percent of 2018 Integrate Africa includes trade facilitation instruments and improvements in
approvals. The African Infrastructure Investment Fund, a border-related procedures and policies—in addition to the
multinational, multisector investment fund (UA 28.9 million), 932-meter road and rail bridge over the Zambezi River and
will invest in core and core-plus infrastructure opportunities— 10 kilometers of approach and access roads. Other projects
notably in transport, logistics, and power—and pursue equity with multinational impacts are the Mauritania–Senegal Rosso
and equity-like investments along the project lifecycle. The bridge and the Trans-Gambia Bridge (Box 2.5).
Fund will focus on acquiring a significant position in roads, As part of its knowledge work, the Bank produced the Traffic
airports, rail links, bridges, ports, logistics, power generation, Impact Assessment guidelines for African cities, to meet safe
utility distribution, and telecommunication. The project has a and inclusive urban mobility needs. And it carried out a study
13+2-year term and is expected to make 10–14 investments of the socioeconomic benefits of side-constructions of major
during its 5+2-year investment period, following a road projects—for medical centers, boreholes, swing bridges,
geographical and sectoral diversification strategy. The and equipment for women and children—and an impact
expected social and environmental impacts will be achieved evaluation of swing-bridges in Burundi.
by supporting energy and transport access, while reducing
carbon dioxide emissions and supporting job creation,
capacity building, and skill transfers.
Among the multinational transport projects, it is worth noting
the Kampala–Jinja Expressway Phase I project lies on a section
of the Northern Corridor in Uganda. Given its location, this
road section is a key driver of not only national development
but also regional integration, providing core transport
linkages to landlocked neighbors Burundi, Democratic
Republic of Congo, Rwanda, and South Sudan and access to
the sea through the port of Mombasa in Kenya.

“I was born in Meru, and

I came here in 2006 because of business.
UA When I started my business,
A vegetables were expensive
Uthe $$
UA 783 UA because the road was bad.
million We would throw out all the rotten stuff.
to Integrate Africa
Today, they get here fast,
and they sell out quickly.
I have educated my children
79% all by myself through
of 2018 approvals for this business.”
Integrate Africa were for
multinational transport Teresiah Kanina, Vegetable Seller
projects Kenya–Ethiopia Highway

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2 | BANK GROUP OPERATIONS THROUGH A HIGH 5 LENS
Box 2.5: Bridge Linking Gambia and Senegal
Ushers in a New Era of Connectivity

The 1.9 km Trans-Gambia Bridge,

which took seven years to build, 50% 5%
is safer and quicker than the risky Expected Expected increase
ferry crossing or the long detour reduction in in annual average
time spent daily traffic
between the northern and southern
in customs
parts of both nations.

925,000 1,000 jobs

Percent
that are
women
Population within the Number of temporary jobs
Project Influence Zone 52% created during construction

45 minutes 95% The bridge will also facilitate sub-

regional trade and open rural areas,
Expected decrease Expected while increasing the level and quality
in wait times decrease in of service on the Nouakchott–
transit times Dakar–Lagos road corridors.

16
 BANK GROUP OPERATIONS THROUGH A HIGH 5 LENS | 2

Improve the Quality of Life for Urban Development

the People of Africa Urban transport represented 22 percent of all transport

approvals in 2018, including the Abidjan Urban Transport
Approvals to Improve the Quality of Life for the People of
Project in Côte d’Ivoire, which will build the fourth
Africa totaled UA 2.38 billion, up 9 percent from 2017’s UA 2.17
bridge over the Ebrié lagoon, 89 intersections, and 88
billion, with its share of the total approvals reaching 33 percent.
kilometers of expressways. The project directly links the
Water and sanitation received the largest share of lending (30
business and administrative centers to the country’s most
percent), more than twice its share in 2017, based on a scale-up
densely populated suburb. It is expected that 2 million
of lending in Gabon, Kenya, Morocco, Rwanda, and Tunisia.
commuters will benefit yearly from the improved infrastructure.
Budget support received the second largest share of approvals
(18 percent), less than half its 2017 share, because of the sharper Information and Communication Technology
focus on water and sanitation. The Bank Group strengthened
its collaboration with water sector partners, and it launched the In 2018, the Bank continued to refine its approach toward
Africa Urban Sanitation Investment Fund with the Bill & Melinda ICT operations with greater emphasis on lending support
Gates Foundation and other development banks to fund urban for e-government and innovation to build African content
sanitation projects in 19 countries over the next four years. and services. Moving forward, the Bank expects to support
targeted interventions in broadband deployment and data
Water and Sanitation infrastructure through its non-sovereign operations. Technical
assistance to governments will prioritize digital identification
In 2018, the Bank Group approved 17 water and sanitation
and regional policy frameworks for data privacy and security.
projects in 13 countries for UA 691.8 million, more than twice
the approvals in 2017 (UA 337 million). In 2018, the Bank extended a loan of USD 30 million to the
Government of Rwanda for the creation of the Rwanda
The projects aim at impactful, inclusive development—promoting
Innovation Fund. The fund will invest in growth technology-
access to underserved and marginalized communities in support
enabled ventures across Africa, and the Government will
of the SDGs and the United Nations–designated human right to
invest a further USD 8 million in a technical assistance pool
water and sanitation. The Semi-Urban and Rural Drinking Water
to develop new businesses. In addition, the Bank concluded
Supply and Sanitation Program in 11 areas in Chad is expected
funding arrangements totaling EUR 30 million with the
to substantially reduce the prevalence of waterborne diseases,
European Union to support connectivity projects in Chad
particularly among children under five, and to greatly improve
and Niger.
access to water and sanitation services.
Technical assistance funding was provided for the preparation
of feasibility studies for e-government infrastructure projects
in Gabon and Lesotho, for a technology park in Ethiopia,
and for agriculture hackathons in Côte d’Ivoire and Rwanda.
The Bank also convened an Economic Community of West
UA
UA 2.38 UA
African States regulatory workshop in Abidjan and provided
$$

billion
e-procurement training in collaboration with the Korean

to Improve the
UA Public Procurement Service.
The Bank launched a study on the Fourth Industrial Revolution
Quality of Life for (4IR) in Africa funded by Korea–Africa Economic Cooperation
the People of Africa
resources. The study will identify bankable business cases
for the use of 4IR technologies, such as blockchain, artificial
intelligence, and big data analytics.

17Water and Human Capital, Youth, and Skill Development

The Bank Group continued to implement the Jobs for Youth in

Sanitation Projects in
Africa Strategy (2016–25) and to emphasize skills development
13 countries and jobs—especially for Africa’s youth. The new Rockefeller
Trust Fund (USD 2 million) started a Bank partnership with
Microsoft philanthropy and Facebook to provide technical
collaboration for the Bank’s new Coding for Employment

2018 ANNUAL REPORT 17

2 | BANK GROUP OPERATIONS THROUGH A HIGH 5 LENS

flagship. The target is to create 130 coding centers in Africa and Africa’s Sustainable Industrialization with support from
by 2023 to benefit more than 243,000 youth by 2025. the Japan Trust Fund, a document examining the relationship
The Bank is strengthening efforts to integrate and mainstream between education and skill development of entrepreneurs.
the Jobs Strategy through all the other High 5s. In 2018, the
Health, Nutrition, and Social Protection
Bank approved 112 projects (63 percent of total projects)
amounting to investments of approximately UA 5 billion, with The Bank Group approved four projects in health, nutrition,
components that will directly support the creation of more and social protection for a total of UA 116 million in 2018. An
than 1.5 million jobs over the next five years. Fragile and lower African Development Fund grant of UA 88.7 million provided
income countries will generate 72 percent of the total direct supplementary financing to the Basic Services Transformation
jobs expected. Most of these results will be from agriculture Program in Ethiopia. Over its 10 years, the program has
(33 percent), multisectoral (32 percent), and transport increased net school enrollments from 77.5 percent to
(18 percent) projects. The projects will also support more 99 percent, reduced child mortality from 72 per 1,000 to 20,
than 237,000 SMEs and develop the skills of more than and improved rural water supply coverage from 46 percent
655,000 youth. to 74 percent. The supplementary financing will allow the
Government to expand basic services, mainly in pastoral and
To promote human development outcomes, the Bank
underserved regions.
approved 14 standalone operations amounting to
UA 288.6 million in 2018. The UA 70 million Morocco As part of its knowledge brokering, the Bank hosted the
Results-Based Program will provide market-based skills for African Leaders for Nutrition Initiative to engage decision
495,000 vocational school students, link 180,000 job seekers makers in the fight to end malnutrition in Africa, which the
to placement interviews, facilitate workplace internships for African Union endorsed. Supporting the African Union’s
165,000 trainees, and improve the insertion rate of vocational commitment to end hunger in Africa by 2025, the initiative
training graduates into the job market within six months aims to stimulate accountability and financial commitments
of graduation from 63 percent in 2018 to 68 percent by for nutrition. The Bank also launched the Multi-Sectoral
2021. The UA 49.8 million Senegal Emergency Community Nutrition Action Plan, which acts as a “how-to guide” for
Development Program Support Project will improve access implementing the nutrition aspects of the Bank’s Feed Africa
to health infrastructure for 300,000 vulnerable people and Human Capital Strategies. The plan will contribute to
(51 percent of them women), and create 30,000 direct jobs by building a continent-wide grey matter infrastructure through
2025. The project will also reduce chronic malnutrition rates its contribution to a 40 percent reduction in stunting on the
from 21 percent to 8 percent over the next decade. continent by 2025.

The Bank increased its efforts in convening partnerships

to strengthen entrepreneurship ecosystems in Africa. The Results by High 5 Priority
Youth Entrepreneurship and Innovation Multi-Donor Trust
The High 5s remain highly relevant to Africa’s development
Fund increased from USD 4.4 million in 2017 to almost USD
agenda and the progress of the SDGs. A United Nations
40 million in commitments in 2018. By providing technical
Development Programme (UNDP) analysis concluded that
assistance through enterprise support organizations and
there is close to a 90 percent overlap in the coverage of
financial institutions in Africa, the fund is expected to reach
Agenda 2063, the SDGs, and the High 5s. Table 2.2 presents
more than 480 youth-led startups in Ghana, Mali, Nigeria,
the outputs achieved from Bank-supported projects in each
Togo, and Zimbabwe. The Fund for African Private Sector
High 5 priority. They draw on the development objectives,
Assistance (the Government of Japan, the Government of
outcomes, and outputs captured in Project Completion
Austria, and the Development Bank of Austria) has initiated
Reports for public sector operations and Extended
support to develop an innovation lab e-platform as a one-stop
Supervision Reports for private sector operations. The
continent-wide marketplace for entrepreneurs, incubators,
results shown are the average of the data aggregated from
accelerators, business mentors, and investors across Africa.
the Project Completion Reports and Extended Supervision
The Bank conducted a study on the status of science, Reports completed in 2016–18.
technology, and innovation in Africa to help policy formulation
in RMCs. Additionally, it published Youth Entrepreneurship

18 2018 ANNUAL REPORT

 BANK GROUP OPERATIONS THROUGH A HIGH 5 LENS | 2

Schools to enhance learning and create more jobs, Malawi

Table 2.2: Results from Completed Projects

High 5 Priority Results

• 570,000 people with new electricity connections, of whom 261,000 are women
• 2,430 km of new or improved power distribution lines
Light Up and
• 480 km of new or improved power transmission lines
Power Africa
• 447 MW new total power capacity installed, 197 MW of it renewable
• 719,000 tons of carbon dioxide emissions reduced

• 19 million people benefited from improvements in agriculture, of whom 9.3 million are women
• 3,400 km of feeder roads built or rehabilitated
Feed Africa
• 1,700 tons of agricultural inputs provided
• 100,000 people used improved farming technologies

• 1,021 km of roads constructed, rehabilitated, or maintained, 695 km of which is in low-income countries

Industrialize Africa • 1.2 million people benefited from investee projects, 600,000 of them women
• 154,000 owner-operators and micro, small, and medium enterprises provided with access to financial services

• 390 km of cross-border roads constructed or rehabilitated

Integrate Africa
• 14 million people gained access to better transport services

• 270,000 people benefited from better access to education, 120,000 of them women
Improve the Quality • 178,000 people trained, 89,000 of them women
of Life for the
• 1.2 million direct jobs created, half of them for women
People of Africa
• 8.2 million people with new or improved access to water and sanitation, half of them women

Note: Because the Bank’s interventions are increasingly co-financed with other development partners, the outputs are prorated according to the proportion of total project
costs financed by the Bank.

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Cross-Cutting Areas

Countries in Situations of Fragility

The Bank fulfills its mandate in fragile situations by increasing Above: Information and computer technology class. Rwanda
Below: Kindergarden class, Morocco
the resources devoted to responding to the growing
challenges of fragility in Africa and assisting countries in
transition to build peaceful, resilient economies and to lay
the foundations for inclusive growth. In 2018, the Transition
Support Facility, the main vehicle for financing interventions
in countries in fragile situations, approved UA 215.7 million
from Pillar I (supplemental resources for national, regional,
and private sector operations to support countries in their
state-building efforts) for 22 operations. The Bank also
approved UA 8.8 million from Pillar III (support to critical
capacity-building interventions and technical assistance that
cannot be adequately addressed through traditional projects
and instruments) for eight operations. More than half the In 2018, the Bank developed a pan-African gender data
approvals supported agriculture (27.8 percent) and transport aggregator website as a prototype that will be launched in
operations (25.6 percent). 2019. The Bank also developed an Africa Gender Index in
partnership with the United Nations Economic Commission
The Bank financed a project to build a pipeline of bankable for Africa. The gender index measures parity between women
projects in transition states.  The project’s final aim was to and men across three dimensions—economic, social, and
attract and facilitate Korean foreign direct investment into representation—to inform Bank policy dialogue at the national
countries in transition by identifying investment opportunities, level. Each dimension includes multiple indicators.
providing investment advisory services to selected project
sponsors, and providing them with a platform to secure The Bank joined the Global Partnership for Gender Equality in
financing from Korean, African, and international investors. the Digital Age to help increase access to science and digital
To this end, five projects were featured during the Africa technology for women and girls. To further promote innovations
Investment Forum in Johannesburg in November, and initial in agricultural technology that help close the gender gap, it
expressions of interest were secured for two of them. also partnered with African Women in Agricultural Research
and Development to launch a new program, Gender in
The Country Resilience and Fragility Assessment, piloted in Agribusiness Investments for Africa. 
2017, became fully operational in 2018. It allows the Bank to
use several indicators to systematically and objectively assess To support the High 5s and the objectives of the Ten-Year
fragility risks and resilience sources for all RMCs. The assessment Strategy, the Affirmative Finance Action for Women in Africa
is a high-quality benchmark, that informs the Bank’s country (AFAWA) will extend financing through commercial banks
strategy papers, policy papers, and project and program and financial intermediaries, provide technical assistance to
development to ensure maximum effectiveness in fighting women and banks, and engage policy and regulatory bodies
fragility and building resilience. Five fragility assessments were to enhance the enabling environment. In a second phase,
conducted in 2018. the Bank will publish ratings of banks, based on the quality
of lending to women, to incentivize good lending practices.

Promoting Gender Equality and The Bank organized a series of internal awareness consultations
Civil Society Engagement on civil society and community engagement to raise awareness
among, and obtain feedback from Bank staff. The Civil Society
In 2018, the Bank rolled out its Gender Marker System to Forum 2018 on engaging civil society in accelerating Africa’s
systematize, monitor, and promote gender mainstreaming in industrialization, brought together more than 350 participants
its operations, with gender specialists as part of project teams from civil society, international organizations, the private sector,
and more Bank operations, including gender analysis and and social entrepreneurs. The forum provided an opportunity
action plans. By the end of 2018, 40 percent of public sector for enhanced multistakeholder dialogue as well as the
Bank operations had been organized under the Gender strengthening of engagement with civil society in the Bank’s
Marker System, a major shift in the Bank’s way of doing policies and operations.
business and commitment to gender mainstreaming.

20 2018 ANNUAL REPORT

 BANK GROUP OPERATIONS THROUGH A HIGH 5 LENS | 2

Supporting Governance and Accountability In 2018, the Bank approved a UA 2 million grant to support
the African Peer Review Mechanism from the Regional
Program-based operations are the Bank’s main instrument
Public Goods Window. The project will enable the review
to support reforms and policies strengthening economic
mechanism’s Secretariat to support Regional Member
and financial governance. During 2018, the Bank approved
Countries implementing its recommendations while
16 such operations for total approvals of UA 1.13 billion.
maximizing opportunities for sharing experiences and best
It also supported strengthening institutional capacity for
enhanced governance and accountability through nine new practice. The two phases of a PBO approved for Niger in
institutional support projects for a total of UA 113 million, 2018 exemplify Bank support for good governance. Phase II,
bringing total approvals for governance (multisectoral) with a UA 20 million approval, aims to support accelerated
operations to UA 1.25 billion. economic growth, with a focus on building the country’s
resilienwce to climate shocks. The program’s contribution
The Bank’s governance work focused on strengthening
includes greater tax revenue mobilization and improved
macroeconomic management and public financial management
transparency and efficiency in the procurement system.
at the country level. It gave particular priority to domestic
revenue mobilization, especially in African Development Fund
countries, such as the Democratic Republic of Congo, where Climate Change
the Bank approved a project to strengthen tax administration The Bank Group enhanced its capacity to mainstream climate
and enhance the national audit office’s capacity. The project is change into its operations, mobilize climate finance at scale,
expected to enhance capacity of revenue collection authorities, and increase its support to African countries on implementing
with the aim of tripling the volume of taxes collected. their climate commitments. In 2018, it significantly increased
For Egypt, the Bank approved the third and final phase of the its share of climate finance to 32 percent of approvals, from
Economic Governance and Energy Support Program-Based 28 percent in 2017 (Figure 2.5). It is on track to meet its 2020
Operation (PBO), to support fiscal consolidation, reduction of target of 40 percent, the most ambitious of any multilateral
energy subsidies, containment of the public wage bill, budget development bank, in line with the Climate Change Action
transparency, and energy sector governance. For Namibia, the Plan II. The Bank mobilized USD 337 million from global
Bank approved the second and final phase of the Economic climate finance facilities—USD 55 million from the Global
Governance and Competitiveness Support Program, which Environment Facility, USD 169 million from the Green Climate
aims to support Namibia’s business environment efforts. Fund, and USD 113 million from the Climate Investment Funds—
to co-finance projects in energy, agriculture, and forestry.

Figure 2.5: Climate Finance, 2018

UA 2.4
billion in
climate The Bank mobilized USD 337 million Over half of approvals
from global climate finance facilities addressed climate mitigation
finance
CIFs: USD 113 million GEF: USD 55 million 51% Mitigation finance

32%
of all
approvals

40%
of approvals
per year
by 2020 GCF: USD 169 million 49% Adaptation

2018 ANNUAL REPORT 21

2 | BANK GROUP OPERATIONS THROUGH A HIGH 5 LENS

Other achievements include the Bank’s investment in 14

Table 2.3: Bank Group Portfolio by national climate centers to generate and use high-quality
Region, 2018 climate data for severe weather forecasts and disaster risk
management. The investments provide early warning systems
to cover weather-related disasters and benefit at least 300
Amount million people living in vulnerable areas. The Bank also
Region (UA billions) Percentage
supported the establishment of a Regional Climate Centre
Central Africa 3.85 10.1 for the Economic Community of Central African States in
East Africa 8.39 22 Cameroon. The Africa Nationally Determined Contributions
Hub, launched by the Bank in 2017, provides technical
North Africa 7.26 19.1 assistance to RMCs. To encourage African financial institutions
Southern Africa 8.64 22.7 to shift their portfolios toward climate-resilient and low-carbon
investments, the Bank launched the African Financial Alliance
West Africa 9.71 25.5
for Climate. At the Conference of the Parties (COP) 24 Climate
Multiregional 0.22 0.6 Change Conference in Katowice, Poland, the Bank deepened
Total 38.07 100 its engagement with partners and positioned itself to attract
more resources for RMCs.

Regional Portfolio and Approvals

The Bank Group’s active portfolio as of 31 December 2018
Figure 2.6: Bank Group Approvals by stood at UA 38.07 billion (Table 2.3). The Bank Group’s
Region, 2018 approvals for 2018 amounted to UA 7.28 billion. Figure 2.6
shows the share of approvals by region.

Central Africa
North Bank Group approvals for Central Africa in 2018 totaled UA
UA 1,166 M 688 million, confirming steady growth of 57 percent since
16.0%
2013 (with an exceptional spike in 2017 for large multinational
projects and budget support for Gabon). Cameroon’s
debt ceiling constrained lending in 2018 and hindered
East multinational projects between Cameroon and Chad.
West UA 1,560 M Even so, projects in Cameroon and Gabon accounted for
UA 2,489 M
21.4%
34.2% Central 69 percent of 2018 approvals. Economic and financial reforms
UA 688 M
9.4%

Multi-
regional Southern
UA 522 M UA 856 M Multiregional
7.2% 11.8% UA 885.2 M
14.3%

Cement plant, Congo, DRC

22 2018 ANNUAL REPORT

 Box 2.6 : Innovative Financing for the
Kampala-Jinja Expressway
accounted for 40 percent of approvals. Transport and water
supply accounted for another 34 percent.
The Bank’s knowledge activities for Central Africa include
a regional study of six Congo Basin countries to articulate
strategic priorities for industrializing the timber industry. The Kampala–Jinja Expressway
forms part of the northern trade
East Africa
corridor from Mombasa in Kenya
Bank approvals for East Africa in 2018 totaled UA 1.56 billion,
41 percent higher than in 2017. Kenya, Rwanda, Tanzania, and to Kigali in Rwanda. This strategic
Uganda together accounted for 67 percent of total approvals, corridor links the landlocked countries of
and multinational operations accounted for another
Democratic Republic of Congo, Rwanda,
17 percent. The largest share of approvals was for transport
operations (25.4 percent) followed by power (25.1 percent).
and Uganda to sea trade. The expressway is
one of five identified as critical for economic
The Bank approved UA 164 million for the Kampala–Jinja
Expressway as part of a public–private partnership and is development in Uganda’s Vision 2040 and
considering a range of financing instruments in support of the National Development Plan II.
operation (Box 2.6).
KAMPALA JINJA

The project is structured as an availability-based

design, build, finance, operate, maintain, and
transfer operation with an 80:20 debt-to-equity
ratio. The innovative financing structure is
composed of viability gap funding, project finance
(private sector) for phase 1, and capital market
finance (bonds) for phase 2. In addition to the
viability gap funding, the Bank is considering
providing a suite of instruments such as a
partial risk guarantee to backstop government’s
availability payments, non-sovereign operations
Kenyan school children in a classroom
financing under the development finance
institution tranche of the project finance in
North Africa phase 1 and a partial credit guarantee under a
Bank approvals for North Africa totaled UA 1.17 billion, co-guarantee arrangement with the Multilateral
26 percent more than in 2017. Close to one-third of approvals
Investment Guarantee Agency and GuarantCo to
supported economic and financial reforms.
backstop issuance of a local currency bond.
Some 58 percent of approvals for North Africa supported
10 operations in Morocco. The Bank provided UA 168 million
for the Inclusive and Sustainable Development Support
Program for Agricultural Sectors to enhance competitiveness
by promoting value chains, improving the business climate,
and undertaking sustainable natural resource management.
In addition, results-based financing of UA 70 million was
approved in support of social sectors (Box 2.7)

23
Box 2.7: Results-based Program for
Improving Access to Employment
in Morocco

The UA 70 million program

improves social conditions in
Morocco through youth training,
professional integration, and
meeting business needs for skilled
workers. It will support creation of Enterprises in the carpentry and wood sector, Egypt
productive employment, an increased number
of beneficiaries of skills training, and youth The largest North Africa operation approved in 2018 was the
integration into the workforce through improved Egypt Economic Governance and Energy Support Program III
for UA 352 million, coordinated with the International
labor market intermediation.
Monetary Fund and the World Bank, to lay the foundation for
The Bank’s first Results-based Financing inclusive and self-sustaining economic growth.
(RBF) will bolster efficient public spending on
employment promotion and skills development Southern Africa
by developing performance- and disbursement- Bank approvals for Southern Africa amounted to UA 856
linked indicators, with a commitment to tangible million in 2018, 6 percent less than in 2017. Power operations
results. Using an independent verification represented 36 percent of approvals, transport 23 percent,
and economic and financial reforms 20 percent.
protocol, the operation will test RBF in a middle-
Even though processing delays affected a few operations,
income country with a level of assurance that
South Africa still had three times its 2017 approvals at UA 383
the funds will be properly used. The operation million—or 45 percent of Southern Africa approvals. The
was prepared in response to a request from the three projects are the Redstone 100 megawatt Concentrated
Moroccan government, which has already used Solar Power Project (UA 147 million), the Eskom Transmission
RBF with other development partners. Improvement Project (UA 158 million) for Light Up and Power
Africa, and the Commuter Transit Asset-Backed Structured
Finance Project (UA 78 million) for Industrialize Africa.
Increased approvals for Madagascar, Malawi, and Mozambique
offset reduced approvals for Namibia and Zambia.

Students learn how to safely mine raw materials, Zambia

24
 Box 2.8: De-risking Private
Investments in the Nigeria
Rural Electrification Project
Much of the Bank’s knowledge work for Southern Africa
assessed the contribution of various economic subsectors
to growth in specific countries, such as a study on trade
facilitation and export competitiveness in Angola and a
study on state-owned enterprise contributions to economic The Nigeria Rural Electrification
transformation and inclusive growth in South Africa. Project promotes technologies
West Africa
and business models emerging
Approvals for West Africa of UA 2.5 billion in 2018 were in Nigeria.
the highest of any region, representing 34 percent of total The private sector leads some components. The
approvals. Senegal’s classification as an African Development project will provide electricity to households,
Bank and African Development Fund blend country, Benin
small and medium enterprises, and public
and Côte d’Ivoire's access to African Development Bank
borrowing, and substantial private sector financing explain institutions in a least-cost and timely manner
the doubling of approvals over 2017. Approvals went up for through off-grid and mini-grid solutions. It will
all 15 RMCs but one (Guinea). The largest shares of approvals contribute to:
were for transport operations (34 percent) and finance (23  • Providing more than 500,000 people with
percent). Approvals in support of economic and financial
access to electricity.
reforms accounted for only 8 percent, the lowest in any region.
• Increasing installed power generation
capacity by 76.5 megawatts (68 megawatts
from solar generation).
• Providing eight universities and teaching
hospitals with reliable energy.
• Supporting 20,000 micro, small, and medium
enterprises in using production equipment.
• Avoiding 1.69 million tons of carbon dioxide
emissions.
The Bank is establishing financing instruments
and facilities to de-risk private investments in
mini-grids and stand-alone and decentralized
Road infrastructure, Ghana
solar power systems. It will mobilize private
sector investment by providing viability
The Bank Group approved UA 144.7 million (UA 108.5 million
from the African Development Bank and UA 36.2 million from gap funding (to offset developers’ capital
AGTF) to support the Nigeria Rural Electrification Project expenditure costs) and offering targeted results/
(Box 2.8), co-financed by the World Bank. performance-based grants for mini-grid and
The Bank’s knowledge work for West Africa included a energy access companies.
gender study in Niger, which is part of implementing the
2014–2018 Bank Group Gender Strategy. The ongoing
study will facilitate mainstreaming gender in the 2018–2022
Country Strategy Paper and promote women’s employment
in income-generating sectors.

25
 3
3 | STRENGTHENING INSTITUTIONAL MANAGEMENT

CHAPTER
Strengthening
Institutional
Management

AfDB Headquarters, Abidjan, Côte d’Ivoire

26 2018 ANNUAL REPORT

 STRENGTHENING INSTITUTIONAL MANAGEMENT | 3

The Management continued to implement the Development to respond to challenges in Regional and Country Offices,
and Business Delivery Model (DBDM) and associated some identified through evaluations, and office and portfolio
improvements in business processes, organization, and audits. The program will support exchanges of experiences
institutional capacity. As part of the adoption of the DBDM, the on challenges faced and communications on past solutions.
Bank has renewed efforts toward seamless delivery of operations, The various reforms and improvements presented above will
based on improved collaboration among sector complexes, strengthen the Bank’s fitness for purpose.
between complexes and regions, and between public The implementation of the Bank Group’s Digital Strategy
sector and non-sovereign operations—across Headquarters, continued in 2018 to build an information technology
Regional, and Country Offices. The first African Investment infrastructure that supports the DBDM, the realization of the
Forum was a good demonstration of the “One Bank” model High 5s, and the digitization of the Bank:
in the way that it brought together many parts of the Bank—
both operational and corporate services—thus contributing • Digital networks were implemented at Headquarters,
to its great success. in the regions, and in 32 country offices in readiness for
digitizing the Bank and improving Bank network routing,
availability, and reliability.
Business Process Reforms • An information technology operations center has been
The Delivery, Accountability and Process Efficiency Committee set up to increase active monitoring of all information
completed its work proposing process and systemic reforms technology infrastructure in the Bank’s offices and improve
to Management to improve the Bank’s effectiveness and its availability and performance.
efficiency. The budget process was improved, the Delegation
• A secondary satellite hub set up in South Africa is
of Authority Matrix was aligned with the objectives of the
expected to improve the connectivity resilience of the
DBDM, and the Bank continued to implement its Digital
Bank's network infrastructure.
Strategy for 2017–20.
• The Bank’s applications platform and systems are being
Several initiatives were implemented in 2018 to improve resource
upgraded. The Bank Group is in the process of upgrading
planning and allocation. These support the Bank’s commitment
SAP, its backbone Information Technology system, to
to accountable and efficient resource planning, allocation,
a more powerful and user-friendly version called the
and utilization to achieve effective delivery and results. The
SAP4/Hana, as part of a Bank-wide business process
Bank revamped its work program planning and budgeting
re-engineering and improvement project code-named
tool (Strategic Resources Assessment Software—SRAS) with a
Project WAKANDA.
user-friendly web-based interface. Its integration with the Bank-
wide Program Processing Schedule (BPPS) system facilitates
continuous planning by the Bank’s organizational units.
In addition, to serve as the basis for the 2019 budget planning
exercise, budget coefficients (unit costs for each deliverable)
are being computed from the cost accounting system. The
revised Delegation of Authority Matrix, which increases With 41 country offices, the Bank
accountability, has also improved flexibility during budget
implementation. To further enhance data quality and improve Group now has a greater presence
decision making, the Bank continued to emphasize adequate
control, monitoring, and reporting. The Bank benchmarked in Regional Member Countries.
these initiatives against development partner practices.
Bank-wide dissemination and capacity building initiatives Country Offices are being staffed
supported these changes.
In line with implementing the DBDM, the Delegation of with the right mix of skill sets.
Authority Matrix was revised and approved to devolve greater
decision making to the Regional and Country Offices. The
change enables the Bank Group to respond faster to its clients.
With 41 country offices, the Bank Group now has a greater
presence in Regional Member Countries (RMCs). Management
developed the Country Manager Exchange Training Program

2018 ANNUAL REPORT 27

3 | STRENGTHENING INSTITUTIONAL MANAGEMENT

• Improved decision-making tools and dashboards, “on web platform designed to support the Bank’s development
demand” websites and cross-functional applications, and an effectiveness, and enhance transparency.
improved environment for collaboration (including external In 2018, the Bank launched MapAfrica 3.0, an interactive
users) support the Corporate, Finance, and Operations platform that maps the Bank’s investments in Africa (https://
Complexes. mapafrica.afdb.org/). It enables users to navigate through
• Mobile applications now support events, such as the Bank-funded projects by country, sector, and approval year
Annual Meetings, Conference of Parties (COP 24) climate or simply to zoom in on a specific region or country. More
conference participation, and the Africa Investment Forum. than 160 project results briefs are also available, providing a
These strategic changes allow the Bank to improve snapshot of development results for specific interventions.
communications and outreach, and present its financial and Management and the Bank’s Independent Evaluation
knowledge services through an enhanced digital service on the Department are implementing a management action record
web. They leverage the capacity of the staff of the Corporate, system that tracks management actions to implement
Finance, and Operations Complexes towards the vision of a recommendations made in independent evaluations.
smart, efficient, and digital Bank. Since introducing the system in 2017, the Bank has steadily
increased its rate of actions completed in response to
recommendations from 32 percent to 58 percent (Figure
Sharpening the Focus 3.1). In doing so, Management pays particular attention to
on Development Impact the stock of actions that are delayed and conducts proactive

The Bank’s Results Measurement Framework (RMF) underpins

its principles and approach to development as both an
accountability tool—with metrics aligned to the High 5s and
the DBDM—and a blueprint for strengthening impact. The Figure 3.1: Improvements in
2018 Annual Development Effectiveness Review, focused the Implementation Status
on Industrialize Africa, showed the Bank delivering on its of Management Actions
commitment to help Africa develop and progress toward
Completed
its development and operational targets. The Framework
Ongoing
continues to reinforce the Bank’s organizational effectiveness No Progress
as it scales up its operations.
100
The Bank delivered Country Results Briefs on Egypt and 10% 6%
Mozambique in 2018, grounded on the RMF. The briefs analyzed 23%
the development impact of Bank-supported interventions. The
development impact approach traces how Bank investments 80
36%
flow through an economy and measures the corresponding
development impacts, particularly on job creation. Scaling up 39%
an East African pilot, the Bank is developing an approach with
improved methods and rigor for reporting on jobs, which will 60
45%
include all RMCs, and be applied to studies for priority sectors.
Another innovative approach piloted for infrastructure operations
relies on high-resolution mapping to assess the changes in
people’s lives before and after project implementation. 40

The Bank continued to enhance transparency and disclosure. 58%

51%
The 2018 Aid Transparency Index Report ranked the Bank
4th of 45 development organizations. The ranking, up from
20
10th in 2016, reflects the Bank’s operational capabilities 32%
and the efficacy of its systems and processes, including a
strict adherence to best-in-class reporting and disclosure
of its programs, projects, aid, and financial interventions. 0
Building on its work with the International Aid Transparency September 2017 March 2018 December 2018
Initiative, the Bank launched the data projects portal, a new (N=671) (N=692) (N=776)

28 2018 ANNUAL REPORT

 STRENGTHENING INSTITUTIONAL MANAGEMENT | 3

In 2018, the Bank performed environmental and social due

diligence for 168 projects approved in 2018 and 80 projects in
its ongoing portfolio. Environmental and social assessment
The 2018 Aid Transparency procedures are being updated to align with the DBDM and
assure consistency between new and streamlined business
Index Report ranked processes and accountability mechanisms.

the Bank 4th of 45 Replenishment and Partnerships

The informal ADF-15 Working Group met twice in 2018 on
development organizations. the 15th replenishment of the African Development Fund
and presented its conclusions in October 2018. In line with
the billions-to-trillions agenda, the group studied options
to leverage African Development Fund equity. Participants
emphasized the importance of maintaining the African
dialogue with departments with a view to complete or retire Development Fund’s core mandate as a concessional fund
them in case of changes in priority. focused on the poorest countries, and countries in situations
To optimize the impact of the Ten-Year Strategy 2013–2022 of fragility while preserving recipients’ debt sustainability and
on Africa’s transition toward sustainable development, protecting the fund’s long-term financial sustainability.
the Bank’s integrated safeguards system mainstreams Representatives from the African Development Fund and
sustainability considerations into its operations. The system donor countries met in October with Management in Kigali,
supports RMC progress toward environmentally sustainable Rwanda, for the Mid-Term Review of the 14th replenishment
and socially inclusive economic growth. of the fund (ADF-14). President Adesina thanked donors

Table 3.1: Resources Mobilized through Trust Funds

Development Amount
Partner (millions) Purpose

European EUR 47 Somalia Infrastructure Trust Fund and Africa Legal Support Facility
Commission

Transition Support Facility for rehabilitation and extension of the Bo-Kenema

United Kingdom GBP 43.5 Electricity Distribution System Project and additional contribution to the Sustainable
Energy Fund for Africa 2.0

Gates Foundation USD 35

France (AFD) EUR 1 Africa Digital Financial Inclusion Fund

Luxembourg EUR 1

Korea USD 18 Korea–Africa Economic Cooperation Trust Fund

Netherlands USD 17 Youth Entrepreneurship and Initiative Trust Fund

Support to initiatives to: address fragility through TSF; contribute to the Youth Entrepre-
Italy EUR 13.7 neurship and Innovation Multi-Donor Trust Fund; Somalia Infrastructure Fund and replen-
ishment of Bilateral Trust Fund

Denmark DKK 30 Trust Fund for Countries in Transition

Sweden SEK 20 Additional contribution to the Clim-dev Africa Fund

2018 ANNUAL REPORT 29

 3 | STRENGTHENING INSTITUTIONAL MANAGEMENT

Box 3.1: The Africa Investment Forum

3.1 Box 3.1: The Africa Investment Forum for their continued support and confirmed that ADF-14
commitments are on track, with the agreed strategic and
In 2018, the Bank in close collaboration with key operational objectives being met. The discussions emphasized
partners held the inaugural edition of the Africa the African Development Fund’s continuing relevance in support
of low-income African countries, especially those in situations of
Investment Forum, demonstrating the Bank’s
fragility.
leadership and vision. The Forum is dedicated
The Bank continues to intensify its efforts to diversify and expand
to advancing projects to bankable stage, raising
its partnerships and to mobilize additional resources. In 2018, it
capital and accelerating the financial closure of deepened its engagement with partners on the management
deals. As an innovative multistakeholder regional of the trust fund portfolio and enhanced reporting on the use of
investment platform, the Forum aligns with the partner resources, with specific attention to impact and results.
Within the Bank, awareness campaigns for user departments
Bank Group’s High 5s to accelerate achievement of
addressed leveraging trust funds for higher impact in RMCs
the Africa Union's Agenda 2063 and the Sustainable and actively managing the portfolio. The Bank moved to
Development Goals by mobilizing resources to close finalize the accreditation policy to train trust fund managers.
Africa’s infrastructure investment gap, estimated In 2018, the Bank mobilized UA 168.6 million through bilateral,
at USD 68–108 billion annually. thematic, and multi-donor trust funds (Table 3.1).
Under the Africa Growing Together Fund, USD 293 million
was approved in 2018 to enable the Bank Group to scale up

1,943 its operations in energy, transport, and water and sanitation

in Benin, Cameroon, Gabon, Kenya, and Morocco, bringing
participants
400
total financing from the fund to USD 685 million.

investors Africa Investment Forum

from
63 deals
53
The Bank also championed the inaugural Africa Investment
discussed in Forum, a collaborative platform for the economic and social
countries boardrooms development of the continent (Box 3.1). The forum is a
transactional marketplace for advancing projects to bankable
stages, raising capital, and accelerating the financial closure of
Investment interest deals. The first forum was a success: 49 deals secured USD 38.7
secured across billion of investor interest (compared with total foreign direct
49
deals worth
investment in Africa of USD 42 billion in 2017).
UA
USD 38.7
UA
$$

External Representation
UA Representation Office for Asia initiated a pilot
billion The External
project on the use of drones in agricultural development
The Forum generated USD 38.7 billion worth of projects in Tunisia, with funding from Korea–Africa Economic
investment interest across 49 projects. Some of Cooperation. The project will focus on agricultural operations
the signature deals include the USD 2.6 billion in Sidi Bouzid in central Tunisia, and use drones to collect data
and monitor agricultural production, along with biodiversity,
agreement between consortiums in Ghana and
the effects of climate change, and the management of natural
South Africa to develop and finance the Accra Ai resources.
Skytrain, and the USD 800 million agreement among
the Bank, Africa50, and the governments of the Human Resources
Democratic Republic of Congo and the Republic
The Bank group was ranked as the 4th best company to work
of Congo to develop and finance the first road-rail for in Africa out of 100 corporate and multilateral organizations
bridge linking Kinshasa to Brazzaville. in the 2018 Careers in Africa Employer of Choice Survey. This

30
 STRENGTHENING INSTITUTIONAL MANAGEMENT | 3

was a considerable improvement from 82nd in 2015, and a were delivered across all Complexes. The Bank implemented
notch higher than 5th place in 2017. automated processes for education grants, leave
The Bank’s ambitious agenda requires attracting and retaining management, and staff advancement to improve efficiency.
a strong workforce with the right skills mix and a new way of The roadmap for an integrated human resources system is
working. To this end, 329 staff were added through external currently being implemented.
recruitment, reducing the executive and professional level Other measures included the 2018 performance-based merit
vacancy rate from 27 percent to 15 percent and the overall increase for all staff and the market adjustment for locally
gross vacancy rate from 24 percent to 14 percent over 2018 recruited staff. The Board approved these measures, which
(Table 3.2). The number of consultants in December 2018 was were designed to differentiate and reward top performance,
683. A cohort of 30 young professionals were onboarded in while keeping Bank compensation competitive in attracting
2018 to start a three-year program at the Bank. and retaining the best talent.
To implement the DBDM and decentralization plans, the
Bank continues its efforts to grow regional and country office The Bank as a Knowledge Broker
capacity. Staff in the field increased from 657 in 2015 to 754 in
In 2018, the Bank strengthened its knowledge activities
2018, and country-based staff now account for 39 percent of
and services by generating analytical and policy-relevant
the total Bank staff.
research; gathering statistics and building statistical capacity;
Diversity through gender, language, and regional representation and developing policy dialogue and capacity. Knowledge
continued as important considerations in recruitment. Some 38 work, disseminated through publications, workshops, and
percent of new hires were women. The proportion of women capacity-building activities, supports effective policy making
in management roles stood at 26 percent, against a target of in RMCs.
28 percent. The proportion of women in professional roles
reached the target of 30 percent in 2018. To improve further,
Research Activities
management will increase efforts to attract female candidates.
As part of its recruitment drive, the Bank conducted 12 career Research activities in 2018 supported the Bank’s operations
fairs in RMCs and in Non-Regional Countries. with analytical input and fulfilled a broader role of knowledge
and advisory services for RMCs, policy makers, and the
Bank-wide workshops familiarized managers and staff with
knowledge community. The African Economic Outlook
the refreshed high-performance management system and
2018, the Bank’s flagship knowledge product, focused on
process, and reinforced the Bank’s delivery culture. Several
macroeconomic developments and tools for infrastructure
corporate training programs, including in-house programs,
financing. Available in English, French, and Portuguese, the
report was supplemented by five regional outlooks, with

Table 3.2: Bank Group’s Staffing and Employment Status as of 31 December 2018

Headquarters Regional/Country Offices

Regional
Vice Directors Other General directors Other General
presidents and professional services and professional services Grand
and EL3(a) managers level staff Total managers level staff Total total
Total Staff 9 126 701 361 1,197 58 487 209 754 1,951

Male 7 88 459 138 692 46 369 104 519 1,211

Female 2 38 242 223 505 12 118 105 235 740

% female 22.2 30.2 34.5 61.8 42.2 20.7 24.2 50.2 31.2 37.9

(a) Including eight Vice Presidents and one employee with grade EL3.

2018 ANNUAL REPORT 31

3 | STRENGTHENING INSTITUTIONAL MANAGEMENT

highlights available in three of the most widely read and

Overall, the Bank’s knowledge
spoken languages in Africa—Arabic, Hausa, and Swahili. The
African Economic Outlook was launched in January 2018 at products had a major impact.
the Bank’s Headquarters and was among the first to provide RePEc (Research Papers in
headline numbers on Africa’s macroeconomic performance Economics), a reputable
and outlook. global depository of economic
The Bank supported RMCs with macroeconomic models to knowledge ranked AfDB
provide the analytical groundwork for programs. In collaboration 7th among almost 300
with International Monetary Fund counterparts, the Bank is Africa-based economic
building a dynamic stochastic general equilibrium model, and development research
customized for African economies to account for the structural institutions in 2018, far better
peculiarities affecting the region’s economies. It continued than 28th, four years earlier.
implementing the project on the structural transformation of
African agriculture and rural spaces. Additionally, the Bank’s
economic reports on Sudan and Zimbabwe provided analysis
to support post-sanctions policy frameworks.
or rank of a journal based on the times its articles are cited)
Cutting-edge research outputs included such reports as of the African Development Review—the Bank’s academic
Unleashing the Potential of Institutional Investors in Africa, journal—improved from 1.0 in 2017 to 1.6 in 2018.
and Strategic Approach for Climate Finance by Strengthening
Sustainable Financial Systems in Africa. Statistical Knowledge Products and Activities
Overall, the Bank’s knowledge products have had a major The Bank remained committed to improving statistics and
impact. RePEc (Research Papers in Economics), a reputable statistical capacity in RMCs in 2018, focusing especially
global depository of economic knowledge, ranked the Bank 7th
among almost 300 Africa-based economic and development
research institutions in 2018, far better than 28th in 2014. In the
same regard, the impact factor (a measure of the importance

ABOVE:Carnegie Mellon University project, Rwanda

Shopping mall, South Africa
TOP RIGHT:
BOTTOM RIGHT: Solar panels power water pumps, Ethiopia

32 2018 ANNUAL REPORT

 STRENGTHENING INSTITUTIONAL MANAGEMENT | 3

on progress on the High 5s. Through the Action Plan for Capacity Development
Improving Agricultural and Rural Statistics, the Bank helped 50
In 2018, the Bank’s African Development Institute, a key
RMCs compile the minimum core agricultural data needed to
knowledge broker for policy dialogue with RMCs, gathered
inform agricultural policies. In addition, the Africa Infrastructure
an impressive audience of academics, development
Knowledge Program projected energy investment
practitioners, diplomats, and other stakeholders for its Kofi
requirements for RMCs to achieve universal access by 2025.
Annan Eminent Speaker Lecture Series. His Royal Highness
Similar projections for the other infrastructure sectors—
Muhammadu Sanusi II, the Emir of Kano, Nigeria; Nobel
transport, information and communications technology,
Laureates Ouided Bouchamaoui and Leymah Roberta
and water and sanitation—show that Africa needs about
Gbowee, and Her Excellency Graça Machel delivered the
USD 130–170 billion a year in investments for infrastructure
year’s speeches. Landmark lectures on development thinking
development. As part of Africa Information Highway (AIH)
in Africa by leading speakers addressed such topics as girl
activities, the Statistics Department undertook technical
child education, the empowerment of women, and regional
assistance missions to Angola, Burkina Faso, Cabo Verde,
integration. More generally, the institute addressed the topics
Egypt, Gambia, Kenya, Lesotho, Togo, Rwanda, and Zambia
of mobilizing financial resources, enhancing the effectiveness
and organized similar training for Bank staff.
of a medium-term expenditure framework, and designing an
Complementary activities on national accounts and statistical integrated financial information system for managing public
business registers in Botswana, Eswatini, Malawi, Namibia, revenue and expenditure.
and Zambia were crucial to improving the measurement of
economic activities. Moreover, the Strategy for Harmonization Natural Resources Management
of Statistics in Africa (SHaSA.2) developed under the Bank’s
leadership is now the official pan-African strategy for statistical The African Natural Resources Center, established to catalyze
development. growth and development in RMCs through effectively
managing natural resources, has cemented its position
as a center of excellence supporting African countries. In
2018, it provided technical support for implementing the
Mozambique Natural Capital Program, identifying key
ecological infrastructure and establishing an inter-agency
natural capital working group.
The center also mobilized USD 1.95 million in 2018,
including a USD 1.4 million multi-year grant from the African
Development Fund for strengthening domestic resource
mobilization in resource-rich fragile states through financial
modeling for the extractive sector.

TOP LEFT:Power transmission control room, Zambia

BOTTOM LEFT: New irrigation systems, Eswatini
BELOW: Electronic component manufacturing, Tunisia

2018 ANNUAL REPORT 33

 4
4 | BOARDS’ OVERSIGHT

CHAPTER
Boards’
Oversight

AfDB Reports and Publications

34 2018 ANNUAL REPORT

 BOARDS’ OVERSIGHT | 4

Boards of Governors Following the request of the Boards of Governors, the Bank
in late 2018 launched an independent evaluation of the
The Boards of Governors are the highest decision-
implementation of the DBDM in order to evaluate the model’s
making organs of the African Development Bank and African
contributions to the Bank’s efficiency and effectiveness.
Development Fund, with representation from each of the
80 member countries. The Boards of Governors elect the 20
members of the Board of Directors and the President of the Governors’ Dialogue: Forward Look
Bank Group to oversee the management of the institution. for the Bank Group
Governors execute their mandate with the support of five The Governors’ Dialogue at the Annual Meetings gave the
subsidiary organs: The Bureau, the Joint Steering Committee, President an opportunity to discuss the Bank Group’s future role
the Steering Committee on the Election of the President in the global development agenda, the Bank’s performance,
of the Bank, the Standing Committee on the Conditions of and approaches to ensure improvements. The Governors
Service of Elected Officers, and the Governors’ Consultative reiterated their commitment to the economic development
Committee (GCC). and social transformation of the African continent and, in that
The activities of the Boards of Governors in 2018 included connection, underscored the need for:
Annual Meetings of the Bank Group, the Consultative • An adequately capitalized, effective, and efficient African
Meetings of Governors of each of the five regions of the Bank, Development Bank.
and the 16th meeting of the GCC.
• An independent review of the recent institutional reforms
and the results achieved—to inform the GCC discussions
Highlights of the 2018 Annual Meetings
on a possible GCI-VII.
The 53rd Annual Meeting of the Board of Governors of the
• Accelerated implementation of the ongoing institutional
African Development Bank and the 44th Annual Meetings of
reforms. The Governors urged Management to build a
the Board of Governors of the African Development Fund were
stronger performance culture, enhance accountability
held jointly on 21–25 May 2018 in Busan, Korea. The theme of
and efficiency, strengthen risk management, fill vacancies
the meetings was “Accelerating Africa’s Industrialization.”
in priority positions, consolidate the Bank’s capacity to
In exercising their statutory duties, the Boards of Governors develop a robust projects pipeline, deliver high quality
adopted the Annual Report and audited financial statements operations that have an impact on the ground, and
for the financial year ended 31 December 2017. In addition, provide value for money in the Bank’s work.
they adopted resolutions on:
• Continued use of renewable energy for achieving inclusive
• The by-election of the Executive Directors of the African economic growth and transformative industrialization.
Development Bank.
• Sustained focus on the climate agenda and a stronger
• The selection of the Executive Directors of the African commitment to gender equality.
Development Fund.
• Sustained support to the private sector in RMCs, primarily
• Allocation and distribution of the allocable income of the through lending and support for policy and regulatory
African Development Bank for the financial year ended reforms that foster a business-friendly environment.
31 December 2017.
• Greater support to RMCs to improve domestic resource
• Distribution of part of the income of the Nigeria Trust mobilization and public financial management and stem
Fund for the financial year ended 31 December 2017. the tide of illicit financial flows.
• Designation of three members of the Standing Committee • Speedy implementation of the Bank Group’s Jobs for
of the Board of Governors on the Conditions of Service of Youth initiative to help stem migration from the continent.
Elected Officers to serve from the end of the 2018 Annual
Meetings to the end of the 2021 Annual Meetings.
• Commencement of discussions on the Bank’s Seventh
General Capital Increase (GCI-VII).
• Establishment of the Africa Digital Financial Inclusion
Facility Special Fund.

2018 ANNUAL REPORT 35

4 | BOARDS’ OVERSIGHT

Possible Capital Increase for the African human resource capacity, improving efficiency, and enhancing
Development Bank development effectiveness. The Boards approved strategies,
policies, loans, grants, equity investments, guarantees, the
The GCC convened for its 16th meeting on 5 December 2018 2019 work program and administrative budget, and the
in Rome, where it began discussions on a possible GCI-VII for 2019 lending program. The Boards approved 179 projects,
the African Development Bank. It noted the Bank’s successful totaling UA 7,255.6 million. In addition, Senior Management
implementation of all 36 reform commitments made to approved technical assistance and other activities amounting to
shareholders in 2010 in the context of the Sixth General Capital UA 23.2 million.
Increase (GCI-VI). It also noted the Bank’s role in mobilizing
development assistance, through financial and non-financial Of the projects, 51 percent (16 percent by amount) were
interventions, to support RMCs in building and enhancing approved through the lapse-of-time procedure, and the
infrastructure, strengthening the private sector, diversifying remainder in plenary sessions.
economies, and enabling economic growth. To ensure the effectiveness of their operations, the Boards work
The GCC acknowledged that the Bank was approaching the through seven standing committees to which they delegate
limits of its current resources and needed strengthening to certain responsibilities (Figure 4.1 and Appendix 9). The Boards
fulfill its mandate in partnership with other public and private approved the Strategic Framework for Regional Integration
institutions. The GCC agreed to hold further discussions on revised to support the African Union’s Vision 2063 through the
the margins of the World Bank–IMF spring meetings in April Bank’s High 5s, strengthen infrastructure connectivity, increase
2019 in Washington, DC. linkages and market connectivity, and support financial
integration and inclusion.

Shareholder Support for a Capital Increase The Boards, through the Committee on Operations and
for the African Development Bank Development Effectiveness, oversaw two independent
evaluations of program-based operations and of quality
In the first half of 2018, the President and Senior Management assurance, which provided a basis for the ADF-14 mid-term
of the Bank Group held five separate consultative meetings review meeting in Kigali, Rwanda, on 24–26 October 2018.
with Governors from the five African regions—Central, East, ADF deputies welcomed the evaluation findings and noted
North, Southern, and West. The Governors of the Bank’s their critical importance for effectively using ADF resources.
African Member Countries agreed on the need for a positive They also welcomed the frank and open discussions on
response to the call for a GCI-VII. The President held similar achievements, challenges, and proposals to better define and
bilateral meetings with Governors of the Bank’s Non-Regional implement ADF strategic priorities. The Deputies agreed that
Countries. consultations on the 15th ADF replenishment (ADF-15) could
commence in March 2019.
Boards of Directors Executive Directors undertook consultative missions to
The resident Boards of Directors of the African Development Chad, Morocco, Sudan, and Tunisia to engage governments,
Bank and African Development Fund provide oversight to development partners, the business community, and civil
Management and are responsible for the general operations society on the quality and relevance of the Bank’s country
of the Bank Group, including preparing the work of the strategies; the socioeconomic and political challenges facing
Boards of Governors and acting on functions delegated by the countries, as well as the efforts made by the respective
the Governors. In addition to their primary oversight function, Governments to tackle them; the condition and status of
members of the Boards of Directors perform critical advocacy Bank Group’s operations; and the Bank Group’s contribution
and representation roles for the Bank Group. The Bank Board to donor coordination and implementation of the Paris
comprises 20 members, 13 representing the 54 RMCs and Declaration on Aid Effectiveness. Similarly, the Senior
seven, the 26 Non–Regional Member Countries. The Fund Advisers and Advisers to Executive Directors undertook
Board comprises 14 members, with the Bank and the state study tours to Angola, Congo, Gambia, and Mauritania to
participants of the Fund each designating seven members. assess the progress of Bank Group–financed projects.

In 2018, the Boards continued to build on 2017’s achievements

by providing strategic and institutional direction to ensure
delivery of the High 5s and effective implementation of
ongoing reforms. These included strengthening the Bank’s

36 2018 ANNUAL REPORT

 BOARDS’ OVERSIGHT | 4

Figure 4.1:
Figure 4.1: Bank
Bank Group
GroupGovernance
GovernanceStructure
Structure

BOARD OF GOVERNORS
BGOV

SECRETARIAT TO THE SANCTIONS

APPEALS BOARD COMPLIANCE REVIEW AND MEDIATION
BSAB BCRM
BOARD OF DIRECTORS
BDIR
ADMINISTRATIVE TRIBUNAL INDEPENDENT DEVELOPMENT
CHAIR: PRESIDENT EVALUATION
BATR
BDEV

OFFICE OF THE AUDITOR GENERAL OFFICE OF INTEGRITY AND

PAGL ANTI-CORRUPTION
PIAC

AUFI CAHR
AUDIT AND COMMITTEE ON
FINANCE ADMINISTRATIVE
COMMITTEE AFFAIRS AND
HUMAN
RESOURCES
ECAM POLICY ISSUES
COMMUNICATIONS CWHOLE
AND THE COMMITTEE
PREPARATION OF FOR THE WHOLE AMBD
CODE THE BANK GROUP ON THE BUDGET
COMMITTEE ON COMMITTEE ON
ANNUAL MEETING ADMINISTRATIVE
OPERATIONS AND ECBD
DEVELOPMENT ETHICS MATTERS
EFFECTIVENESS COMMITTEE: CONCERNING
COMMITTEE FOR THE THE BOARD OF
ENFORCEMENT OF THE DIRECTORS
CODE OF CONDUCT
FOR EXECUTIVE
DIRECTORS

Independent Development
Group operations, and Quality Assurance Across the Project
Evaluation at the Bank Group
Cycle of the African Development Bank Group; three country
The Independent Development Evaluation Department strategy and program evaluations on Cabo Verde, Malawi,
(BDEV) at the African Development Bank is an independent and Mauritius; one mid-term evaluation of the Guinea-Bissau
entity that enhances the Bank’s development effectiveness. By Country Strategy and Program; two thematic evaluations on
conducting evaluations and proactively sharing best practices the Bank’s Program Based Operations and the Congo Basin
(Figure 4.2), and by sharing knowledge through partnerships Forest Fund (CBFF); one evaluation synthesis on lines of credit;
across Africa, BDEV ensures that the Bank and its stakehold- and one comparative study of sanctions practices across
ers learn from experience to plan and deliver development multilateral development banks.
activities to the highest possible standards. BDEV increased its efforts to ensure that evaluative
In 2018, BDEV completed 15 evaluations, of which 10 were knowledge was shared, discussed, and taken on board by
also presented to the Boards: four project cluster evaluations the Bank’s Management and operational staff. In addition to
on Program Based Operations in energy and private sector disseminating briefs and highlights on its evaluations, BDEV
environment and the Bank’s work on urban and rural water held the first capitalization workshops, where Bank staff and
supply and sanitation; three corporate evaluations on quality evaluators discussed evaluations to learn what worked, what
at entry of African Development Bank Group operations, did not work, and why. The AfDB Development Evaluation
quality of supervision and exit of African Development Bank Week 2018 attracted more than 450 participants.

2018 ANNUAL REPORT 37

4 | BOARDS’ OVERSIGHT

As part of its mandate to build an evaluation culture,

BDEV supported and hosted the Secretariat of the African
Parliamentarians’ Network on Development Evaluation, which
includes more than 60 parliamentarians from 29 countries;
implemented the Strengthening National Evaluation Systems
(SNES) initiative in Ethiopia and Tanzania; and contributed to
Figure 4.2: Independent Development
the Twende Mbele South-South peer learning partnership on
Evaluation, 2018 Monitoring and Evaluation systems that improve government
performance.

15 Evaluations done by AfDB

Compliance, Accountability, and
One
comparative Intermediate Recourse Mechanisms
study
One
evaluation Compliance
synthesis
Three
corporate Compliance Review and Mediation
evaluations
The Compliance Review and Mediation Unit (BCRM)
Two thematic
evaluations administers the Bank Group’s Independent Review Mechanism
One
mid-term
(IRM). The BCRM handled 12 complaints, submitted by
evaluation of Three country Non-Governmental Organizations and affected persons and
the Guinea-Bissau strategy
and program related to different Bank-financed public and private sector
Country Strategy
2015—2019 evaluations operations. Three of these complaints were closed to the
satisfaction of the requestors. To enhance institutional learning,
Four
the BCRM facilitated the IRM spot check advisory reviews that
project cluster
evaluations investigated two high-risk private sector operations investing in
the forestry and gas industries. The IRM recommendations led
Management to adopt and implement rigorous action plans to
remedy harm inflicted on people, and to address problematic
systemic issues to avoid recurrence of non-compliance by
Evaluation Knowledge Events similar operations in future.

Ethics
Participants Capitalization In 2018, the Ethics Office undertook a Bank-wide sensitization
450+ attended
Evaluation 2
workshops
organized for Bank
on the Code of Ethics, promulgated in April 2018, through
regular induction and outreach programs. The awareness on
Week 2018 operations staff
expected ethical conduct targets officials and staff working
in the Bank and those involved in implementing its projects
in RMCs. In promoting a speak-up culture, the Office
encourages the reporting of incidents of unethical behavior.
Ethics advice was provided for 151 ethical dilemma cases
handled in 2018. In addition, the Office, in coordination with
Regional and Country Offices sensitized the Bank’s project
management teams in 27 RMCs, to highlight their role in
uplifting the name, image, and reputation of the Bank. The
Office also developed Ethics Guidelines for Regional and
Country Offices and produced a booklet providing examples
of ethics dilemmas.

38 2018 ANNUAL REPORT

 BOARDS’ OVERSIGHT | 4

Staff Appeals Committee

Accountability and Control
The Staff Appeals Committee is part of the Bank’s internal
Audit
recourse mechanism to resolve employment disputes
In 2018, the Office of the Auditor General’s work program between staff and the Bank. The Committee comprises 12
covered 22 activities in the Operations Complexes comprising members, including a Chairperson, an Alternate Chairperson,
14 Country and Regional Offices' audits, and eight project- five members nominated by the President, and five members
related activities. It also carried out 20 assignments in the nominated by the Staff Representative Council. The Committee
Board, Presidency, Finance, and Corporate Complexes—and received 22 appeals in 2018. The Committee heard nine
provided client assistance (such as advisory assignments), appeals and dismissed one as incompetent. Three appeals
followed up on the implementation of past recommendations, were negotiated and withdrawn, and one was abandoned. The
and pursued other program management activities. remaining eight active appeals will be heard in 2019.

Integrity and Anti-Corruption Sanctions Commissioner’s Office

In 2018, investigations by the Integrity and Anti-Corruption In 2018, the Sanctions Commissioner’s Office examined 11
(PIAC) Department in 44 cases were completed and closed, sanctions cases, four were carried over from the previous
compared with the target of 30 cases. The department year. Eight of these cases involved allegations of fraudulent
participated in 23 training and outreach activities in 13 practices in connection with the procurement of works and
countries involving 684 staff focused on the prevention of services for Bank Group–financed operations in RMCs. Two
fraud and corruption in Bank-financed activities. To enhance concerned allegations of collusion in connection with a bid,
integrity matters within the Bank, PIAC will continue to and one involved an obstruction to the exercise of the Bank’s
engage in outreach and awareness creation with staff. inspection and audit right. Six cases were concluded, of which
three resulted in sanctions decisions.
Recourse Mechanisms
Sanctions Appeals Board
Office of the Ombudsman
The Sanctions Appeals Board ensures that the funds in projects
In 2018, 110 cases were brought to the attention of the Office financed by the Bank are used for their intended purposes
of the Ombudsman. Of those, 20 percent originated from and that businesses or individuals who practice corruption,
Headquarters, while the rest were from Regional and Country fraud, collusion, coercion, or obstruction are punished. The
Offices. All matters were closed within four weeks in line with Board rules on appeals against sanctions decisions issued
the agreed key performance indicators. by the Sanctions Commissioner and reviews all appeals from
the beginning—and its decisions are final and binding. In
Administrative Tribunal June 2018, Sanctions Appeals Board members organized
The Administrative Tribunal held one plenary session and two two sessions for the adoption of rules and procedures for the
judicial sessions. During the two judicial sessions, 11 applications Board’s internal work.
were determined and 13 judgments delivered.

2018 ANNUAL REPORT 39

 5
5 | FINANCIAL PERFORMANCE AND ABRIDGED FINANCIAL STATEMENTS

CHAPTER

Financial
Performance
and
Abridged
Financial
Statements

African currency and trading operations

 FINANCIAL PERFORMANCE AND ABRIDGED FINANCIAL STATEMENTS | 5

The overall financial performance of the Bank Group in 2018 make distributions out of its net income and surplus account
remained strong. The Bank maintained its triple-A rating with to support development financing in low-income countries.
a stable outlook from all four global rating agencies. The Detailed information and analysis on the audited financial
deficit for the African Development Fund (ADF), which had results of each of the Bank Group entities are presented in a
widened in the previous year, came down sharply in 2018. separate companion Financial Report 2018.
Income revenues for the Group’s three lending windows were
higher than in 2017. These were, however, hit by the first-time
application of new impairment requirements and the effects
African Development Bank
of volatile fair valuations. ADB revenue increased to UA 854.47 million in 2018 from UA
671.66 million in 2017. However, this was adversely impacted
by the higher impairment provisions following the adoption
Financial Results of the new International Financial Reporting Standard
While the African Development Bank (ADB) realized lower (IFRS 9) and the effect of unfavorable market valuations on
income before distributions in 2018 compared with 2017, the borrowings and derivatives. The net effect of these charges
performance of NTF and the ADF continued to improve with on revenue was a UA 133.75 million reduction in the income
the deficit for the latter decreasing further during 2018 (Table before distributions approved by the Board of Governors,
5.1). Apart from transfers to reserves, the Bank continued to which stood at UA 124.68 million at year end.

Table 5.1: Abridged 2018 Financial Results of the Bank Group (UA millions)
ADB ADF NTF

2018 2017 2018 2017 2018 2017

Income from loans, investments, and other income 854.47 671.66 183.25 147.59 3.52 2.75

Borrowing expenses and derivatives (468.21) (226.77) (0.34) - - -

Impairment charge on loans and investments (76.53) (16.99) - - (0.06) -

Translation gains/(losses) and other income 6.41 (1.45) (0.65) (8.96) - -

Net operational income 316.53 426.46 182.26 138.63 3.46 2.75

Other expenses (191.85) (168.03) (256.33) (257.41) (0.80) (0.56)

Income before distributions approved by the ADB

124.68 258.43 (74.07) (118.78) 2.66 2.18
Board of Governors

Distributions approved by the ADB Board

(83.00) (82.00) - - (0.22) (0.19)
of Governors

Net Income/(Loss) for the Year 41.68 176.43 (74.07) (118.78) 2.44 1.99

2018 ANNUAL REPORT 41

5 | FINANCIAL PERFORMANCE AND ABRIDGED FINANCIAL STATEMENTS

Table 5.2: Selected Financial Metrics, 2014–18 (UA millions)

2018 2017 2016 2015 2014

Net operational income 316.53 426.46 261.49 229.65 282.20

Income before distribution approved by Board of Governors 124.68 258.43 120.07 93.16 151.69

Net income/(loss) for the year 41.68 176.43 25.07 (30.83) 31.70

A summary of selected financial metrics for the Bank for the Risk Management Policies and Processes
five years ended 31 December 2018 is shown in Table 5.2.
The Bank has strengthened the monitoring of its current loan
Interest income from loans increased by 29.96 percent due portfolio and continues to undertake the necessary portfolio
to higher levels of lending activity. The treasury portfolio restructuring measures to free up capital for new lending.
continued to perform above its benchmarks. Overall, net
As part of its Balance Sheet Optimization (BSO) strategy, the
interest income increased by 2.26 percent, driven mainly by
Bank undertakes risk transfer transactions to manage risks
the higher returns realized on liquid funds and the US dollars
in its loan portfolio, reduce sovereign and non-sovereign
treasury investment portfolio.
concentration risk, and increase lending headroom in order
Bank Group administrative expenses increased by 6.73 percent to optimize its balance sheet. In this regard, the Bank entered
from UA 377 million in 2017 to UA 402 million in 2018 primarily into Exposure Exchange Agreements (EEAs) with other
due to higher consultancy and Bank business meetings related multilateral development banks in 2015. The EEAs involve a
expenses. The Bank’s share of administrative expenses, simultaneous exchange of equivalent credit risk on defined
inclusive of charges for depreciation and sundry expenses in portfolios of sovereign exposures. On 31 December 2018,
2018 increased from UA 168 million in 2017 to UA 192 million, the total outstanding notional credit protection purchased or
due to higher operational expenses. sold on the relevant underlying single reference entities, which
The Bank’s reserves, plus accumulated loan loss provisions on remained unchanged from the previous year, was USD 4.47
outstanding loan principal and charges, increased to UA 3.49 billion (UA 3.21 billion).
billion at the end of 2018, up from UA 3.42 billion at the end In 2018, the Bank completed two new commercial credit risk
of 2017, an increase of 2.05 percent. transfer mechanisms as part of its “Room to Run” balance
sheet optimization in line with G20 calls to multilateral
Distributions Approved by the development banks to optimize their balance sheets while
ADB Board of Governors mobilizing additional financial resources. The transactions
involved synthetic securitization and credit insurance on its non-
In 2018, the Board of Governors approved distributions of UA 83
sovereign portfolio in Africa aimed at reducing concentration
million from 2017 income and surplus to various development
risk and creating additional lending headroom. The two
initiatives, compared with UA 82 million distributed in 2017.
transactions with a total notional value of USD 1.5 billion freed
The beneficiaries of these distributions are listed in note M
up more than USD 1 billion in headroom. Like the EEAs, these
to the financial statements in the Financial Report 2018. The
transactions are accounted for as financial guarantees.
ADB Board of Directors agreed to recommend to the Board
of Governors, at its forthcoming Annual Meeting in June 2019, No default events have occurred on any of the exposures
distributions of UA 74 million from 2018 net income and surplus covered under the above BSO transactions and the Bank
account to various development initiatives. continues to expect its sovereign, sovereign-guaranteed and

42 2018 ANNUAL REPORT

 FINANCIAL PERFORMANCE AND ABRIDGED FINANCIAL STATEMENTS | 5

non-sovereign exposures to be serviced in accordance with African Development Fund

loan agreements.
The overarching financial objective of the Fund is to protect its
The risks to the Bank’s balance sheet are actively monitored commitment capacity which drives its development financing
on a risk dashboard that is regularly updated to reflect the interventions.
evolving risk profile of the Bank’s operations. The policies and
The Fund’s revenue increased by 24 percent from UA 147.59
practices deployed by the Bank to manage these risks are
million in 2017, to UA 183.25 million, driven largely by higher
described in more detail in note D to the financial statements
investment and loan income, contributing to a significantly
in the Financial Report 2018.
improved deficit of UA 74.07 million—a 38 percent reduction
over the previous year. The Fund’s share of the total administrative
Bank Rating expenses of the Bank Group fell marginally to 58.38 percent in
The four leading international rating agencies—Standard & 2018, from 60.95 percent in 2017.
Poor’s, Fitch, Moody’s, and Japan Credit Rating Agency— It is noteworthy that the persistent deficits experienced by the
reaffirmed their ratings of the Bank’s senior debt (AAA/Aaa) Fund in recent years are due primarily to structural changes,
and subordinated debt (AA+/Aa1) with a stable outlook. including the cancellation of loans to certain beneficiaries under
The high credit ratings attained underline the Bank’s strong the Multilateral Debt Relief Initiative (MDRI), the increased grant
financial position (as reflected in its capital and liquidity) and component included in the recent ADF resource allocations,
business profile. and the impact of low interest rates on subscriptions encashed
early, leaving the Fund with a negative income gap. Although
Accessing Capital Markets these structural changes affect the reported income of the Fund,
The Bank leveraged its balance sheet to raise UA 5.6 billion their impact does not adversely affect the commitment capacity
(equal to 99.2 percent of the approved borrowing program) or the financial sustainability of the Fund because the Fund is
from the international capital markets in 2018. This included expected to be ultimately compensated through additional
two benchmark issues in US dollars and a EUR 1.25 billion donor subscriptions payable over the life of the cancelled loans.
ten-year benchmark transaction, marking the Bank’s largest The impact of the MDRI initiative is included in note F to the
social bond and its largest ever euro transaction (Box 5.1). special purpose financial statements in the Financial Report
2018. No new country reached the completion point in 2018.

Box 5.1: Bank Capital Market Operations

The Bank leveraged its balance sheet with bond issues to raise

UA 5.6 billion which included:

USD 2 billion USD 2 billion EUR 1.25 billion

three-year global five-year global ten-year global
benchmark benchmark benchmark

At the Global Capital SRI Awards, the Bank was recognized as the
second “Most Impressive Social or Sustainability Bond Issuer.”

2018 ANNUAL REPORT 43

5 | FINANCIAL PERFORMANCE AND ABRIDGED FINANCIAL STATEMENTS

Nigeria Trust Fund in 2017 to UA 0.70 million in 2018. The NTF’s reserves, net
of cumulative currency translation adjustments, increased by
The NTF’s income before distributions approved by the
13.76 percent from UA 40.47 million at the end of 2017 to
ADB Board of Governors increased by UA 0.48 million from
UA 46.04 million on 31 December 2018.
UA 2.18 million in 2017 to UA 2.66 million in 2018, mainly
due to an increase in investment income, which drove the
NTF’s revenue up from UA 2.75 million in 2017 to UA 3.52 Selected Financial Metrics
million in 2018.
A summary of selected financial metrics of the Bank Group
The NTF’s share of administrative expenses incurred by the entities for the past five years ended 31 December 2018 is
Bank Group increased by UA 0.15 million from UA 0.55 million shown in Table 5.3.

Table 5.3: Selected Financial Metrics of the Bank Group, 2014–18 (UA millions)

2018 2017 2016 2015 2014

African Development Bank

Assets 33,770.59 32,575.74 29,727.08 25,346.74 22,950.83

Net income/(loss) 41,68 176.43 25.07 (30.84) 31.69

Comprehensive income/(loss) (3.43) 235.22 (174.41) 105.93 (41.56)

Cash and cash equivalents 2,179.64 1,719.78 2,035.87 2,403.88 650.64

African Development Fund

Net development resources 4,953.58 5,219.81 5,457.84 5,931.89 6,151.41

Deficit (74.07) (118.78) (67.26) (83.25) (125.35)

Cash and cash equivalents 1,373.14 564.19 874.80 475.59 636.82

Nigeria Trust Fund

Assets 176.21 169.36 192.43 170.52 169.60

Net income 2.44 1.99 1.76 1.24 1.33

Cash and cash equivalents 10.07 12.20 21.57 22.54 13.63

Note: The full audited financial statements, together with the related audit opinions, are available separately in the Financial Report 2018.

44 2018 ANNUAL REPORT

 APPENDICES

Appendices

Rhodesfield Train Station, South Africa

2018 ANNUAL REPORT 45

APPENDICES

Appendix 1:
Abbreviations and Acronyms

4IR
Fourth Industrial Revolution GDP Gross domestic product
ADB African Development Bank ICT Information and Communications
ADF African Development Fund Technology
IMF International Monetary Fund
AEO Africa Economic Outlook
Km
Kilometer
AFAWA Affirmative Finance Action for
Women in Africa MDRI Multilateral Debt Relief Initiative
AfCFTA African Continental Free Trade Agreement MT
Metric tons
AGTF Africa Growing Together Fund MW Megawatt
AIH Africa Information Highway NSO Non-sovereign operation
BDEV Independent Development Evaluation NTF Nigeria Trust Fund
Department ONE4A One Platform for Africa
BOAD West African Development Bank PIAC Integrity and Anti-Corruption department
BPPS Bank-wide program processing schedule PBO Program-Based Operation
BSO Balance sheet optimization PSF Private Sector Credit Enhancement Facility
CFA African Financial Community RBF Resource-based Financing
CGIAR Consultative Group on International RMC Regional Member Country
Agricultural Research
RMF Results Measurement Framework
COP Conference of the Parties
SDG Sustainable Development Goals
DBDM Development and Business
Delivery Model SEK Swedish krona

DKK Danish krone SFM Supplementary Financing Mechanism

EC
European Commission SMEs Small and medium enterprises

EFSD European Fund for Sustainable SRAS Strategic Resources Assessment Software
Development TAAT Technologies for African Agricultural
EU
European Union Transformation

EUR Euro TSF Transition Support Facility

GCC Governors’ Consultative Committee UA Unit of Account

GCI General Capital Increase USD United States dollar

46 2018 ANNUAL REPORT

 APPENDICES

Appendix 2:
Summary of Bank Group Operations, Resources, and Finance, 2009–18
(UA millions)

                      Cumulative
  2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Totala
Operations 
Bank Group Approvalsb  
Number 181 139 184 199 317 232 241 305 249 341 5,869
Amount 8,064.49 4,099.75 5,720.29 4,253.75 4,385.78 5,049.92 6,334.69 8,035.34 6,195.95 7,278.81 109,483.25
of which HIPC 372.56 202.95 1,350.85 248.00 22.32 - 46.96 - - - 6,158
Disbursementsc 4,083.59 2,510.70 3,174.11 3,379.53 3,193.00 3,202.31 3,084.00 4,720.92 5,425.83 4,365.26 66,115.47
African Development Bank Approvalsb 
Number 84 59 59 48 65 79 99 114 87 103 1,913
Amount 5,604.07 2,581.13 3,689.43 2,080.46 1,831.70 3,201.30 4,518.23 6,335.32 4,502.18 5,125.14 67,291.82
of which HIPC 112.77 144.14 1,178.04 134.58 9.64 - - - - - 3,158.22
Disbursementsc 2,352.29 1,339.85 1,868.79 2,208.17 1,489.83 1,983.89 1,678.17 3,262.52 3,715.42 2,995.98 39,744.34
African Development Fund Approvalsb 
Number 65 58 56 65 121 77 70 94 76 87 3,011
Amount 2,062.14 1,345.99 1,647.67 1,773.08 2,064.87 1,338.23 1,307.36 1,267.91 959.48 1,088.20 36,643.87
of which HIPC 259.09 29.99 171.93 112.21 12.68 - 46.96 - - - 2,936.91
Disbursements 1,726.43 1,165.84 1,296.65 1,169.60 1,702.21 1,215.30 1,398.36 1,447.41 1,703.00 1,358.32 26,092.71
Nigeria Trust Fund Approvals 
Number 3 2 3 3 5 2 2 3 - 3 103
Amount 5.70 29.53 10.88 14.10 31.17 11.49 12.50 18.46 - 13.30 483.23
of which HIPC 0.70 28.83 0.88 1.20 - - - - - - 63
Disbursements 4.87 5.02 8.67 1.76 0.96 3.13 7.47 10.98 7.41 10.96 278.41
PSF Approvals 
Number - - - - - - - 8 10 9 27
Amount - - - - - - - 90.78 150.70 119.45 360.93
TSF Approvals 
Number 12 7 31 33 35 35 28 31 35 33 283
Amount 364.83 110.73 184.19 117.09 204.68 254.68 207.75 162.55 302.78 224.51 2,169.36
Special Funds Approvalsd
Number 17 13 35 50 91 39 42 55 41 106 532
Amount 27.76 32.38 188.12 269.03 253.36 244.22 288.85 160.32 280.81 708.21 2,534.04
Resources and Finance (at year’s end)
African Development Bank
Authorized Capital 22,120.00 67,687.46 66,054.50 66,975.05 66,975.05 66,975.05 66,975.05 66,975.05 66,975.05 66,975.05  
Subscribed Capitale 21,817.58 23,924.62 37,322.00 65,215.04 65,210.13 65,133.22 65,482.51 65,486.17 65,497.96 65,107.91  
Paid-up Portione 2,359.32 2,375.63 3,289.06 4,962.68 4,962.34 4,864.52 4,884.41 4,897.39 4,980.43 4,956.92  
Callable Portion 19,458.25 21,548.99 34,032.95 60,252.36 60,247.80 60,268.70 60,598.10 60,588.78 60,517.53 60,150.99  
Outstanding Debt 10,580.64 11,980.57 12,902.96 13,278.80 12,947.44 14,375.95 16,449.27 20,644.15 23,175.69 23,989.86  
Cumulative Exchange
Adjustment on
Subscriptions (162) (163) (161) (167) (173) (174) (169) (161) (158) (156)
Reserves 2,552.96 2,627.28 2,536.18 2,667.44 2,856.88 2,815.32 2,921.25 2,746.84 2,982.05 2,806.65  
Gross Incomef 518.88 519.32 489.18 553.64 479.64 484.73 455.77 536.02 665.76 847.57  
Net Incomeg 231.16 213.66 164.51 198.62 180.33 151.69 93.16 120.07 258.43 124.68  
African Development Fund
Subscriptions 17,854.02 19,030.32 20,428.32 21,622.28 23,084.05 24,921.04 26,122.31 27,226.94 28,601.22 29,785.35  
Other Resources 305.27 355.27 390.27 425.27 509.96 551.96 602.96 645.96 680.96 715.96  
Nigeria Trust Fund 
Resources (gross) 156.73 160.86 162.74 164.62 165.77 168.28 169.88 176.79 169.05 174.63  

Note: Percentages in the charts and tables of the Report may not add up to 100 due to rounding. f. Since 2013, dividends from equity participations have been reclassified and included in gross income. Starting from
a. The cumulative figures go back to the initial operations of the three institutions (1967 for the African Development 2015, the gross income is net of interest on loan swaps.
Bank, 1974 for the African Development Fund, and 1976 for the Nigeria Trust Fund). g. Net income is before distributions approved by the Board of Governors.
b. Approvals include loans and grants, private and public equity investments, emergency operations, HIPC debt relief, The conversion rates are those for 31 December of each year.
loan reallocations, guarantee and the Post Conflict Country Facility and exclude PSF and TSF. The conversion rates of the African Development Bank, African Development Fund, and Nigeria Trust Fund Unit of
c. From 2013, disbursements include Equity Participation. Account (UA) to the US Dollar for various years are as follows:
d. These are approvals on the operations of the African Water Fund and Rural Water Supply and Sanitation Initiative, Glob- 2009 1 UA = 1.56769 US dollars 2014 1 UA = 1.44881 US dollars
al Environment Facility, the Global Agriculture and Food Security Program, the Climate Investment Fund, the Congo 2010 1 UA = 1.54003 US dollars 2015 1 UA = 1.38573 US dollars
Basin Forest Fund, the Fund for African Private Sector Assistance, the Zimbabwe Multi-Donor trust Fund, Migration and 2011 1 UA = 1.53527 US dollars 2016 1 UA = 1.34433 US dollars
Development Trust Fund, Sustainable Energy Fund for Africa, Africa Climate Change Fund, Migration & Development 2012 1 UA = 1.53692 US dollars 2017 1 UA = 1.42413 US dollars
Initiative Fund, Micro Finance Capacity Building Fund, Mena Trust Fund, Nigeria Technical Cooperation Fund, and OPEC. 2013 1 UA = 1.54000 US dollars 2018 1 UA = 1.39079 US dollars
e. Subscribed capital and paid up capital for 2005 were restated to exclude shares to be issued upon payment of future
installments.

2018 ANNUAL REPORT 47

APPENDICES

Appendix 3A:
Bank Group Approvals by High 5, 2018
(UA millions)

Ordinary Resources Special Resources

High 5 Bank
ADB ADF a NTF PSF TSF SF Group

Light up and Power Africa 1,000.60 112.50 - 42.93 43.37 187.41 1,386.81
Power Generation, Transmission,
361.40 34.13 - - 24.05 17.84 437.43
and Distribution, Conventional
Power Generation, Renewable 180.77 10.74 - 4.55 - 21.94 218.01
Off-grid Solutions 116.45 5.51 - - - 53.22 175.18
Energy Sector Strengthening and Reform 50.34 18.01 - - 2.70 4.47 75.53
Infrastructure for Energy Sector Development 103.49 15.86 - - 7.62 49.48 176.45
Multisector Operations (budget support) 146.57 28.25 - - 9.00 - 183.82
Othersb 41.57 - - 38.38 - 40.45 120.41
Feed Africa 766.47 219.38 10.50 27.11 62.21 39.90 1,125.57
National and Regional Operations in Production
17.65 37.80 - - 14.83 8.41 78.68
and Value Addition
Investment in Infrastructure 253.35 83.13 7.61 - 29.63 29.91 403.63
Agriculture Finance and Agribusiness Environment 242.70 33.33 1.40 27.11 3.65 - 308.19
Inclusivity and Sustainable Development 33.59 54.12 1.50 - 5.11 1.58 95.90
Multisector Operations (budget support) 219.17 11.00 - - 9.00 - 239.17
Industrialize Africa 1,498.81 53.79 - 42.72 5.00 6.90 1,607.22
Industrial Business Environment - 7.00 - - - 0.98 7.98
Financial Sector and Capital Markets Development 581.53 10.21 - 42.72 - - 634.46
Enterprise Development 425.81 - - - - 3.52 429.33
Infrastructure for Industry - - - - - - -
Multisector Operation (budget support) 223.29 36.58 - - 5.00 0.71 265.58
Regional Environment Improvement 268.18 - - - - 1.69 269.87
Integrate Africa 320.08 265.05 - - 27.02 170.91 783.06
Regional Infrastructure Connectivity 312.08 252.41 - - 26.24 168.00 758.72
Trade Facilitation and Investment 8.01 12.64 - - 0.78 2.91 24.34
Improve the Quality of Life for the People of Africa 1,539.17 437.48 2.80 6.69 86.91 303.10 2,376.15
Water Supply and Sanitation 525.27 82.02 - 6.69 2.50 75.35 691.83
Human and Social Development 90.67 148.99 2.80 - 2.62 9.51 254.60
Multisector Operations (budget support) 359.25 84.17 - - 16.66 - 460.07
Others c 563.98 122.30 - - 65.13 218.24 969.65
Total approvals 5,125.14 1,088.20 13.30 119.45 224.51 708.21 7,278.81

a Excludes PSF and TSF. c Others include the following subthemes: other social development, national
b Others include the following subthemes: Clean/efficient cooking, energy efficiency infrastructure, urban development, natural disaster management, environment and
demand-side management, oil and gas Utility Transformation Services, and Energy natural resources management, transboundary water resources management, regional
Finance. education, and health initiatives.

48 2018 ANNUAL REPORT

 APPENDICES

Appendix 3B:
Bank Group Approvals by Sector, 2018
(UA millions)

  Ordinary Resources   Special Resources

Sector ADB ADF a   NTF PSF TSF SF Bank Group
Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount

Agriculture and
12 470.40 20 179.68 2 10.50 1 27.11 7 53.21 4 19.37 46 760.28
Rural Development
Social 8 87.57 8 46.23 1 2.80 - - 4 26.05 6 13.67 27 176.32

Education 2 1.44 1 6.74 - - - - - - - - 3 8.18

Health 2 14.47 - - - - - - 1 20.05 - - 3 34.52
Other 4 71.66 7 39.49 1 2.80 - - 3 6.00 6 13.67 21 133.62
Infrastructure 36 2,346.16 28 517.92 - - 5 74.02 15 105.59 47 574.13 131 3,617.83
Water Supply
7 525.27 8 82.02 - - 1 6.69 1 2.50 9 74.92 26 691.40
and Sanitation
Energy Supply 15 867.80 7 99.25 - - 4 67.33 5 34.87 21 186.70 52 1,255.95
Communication 1 20.75 - - - - - - 1 3.00 1 14.32 3 38.07
Transport 13 932.34 13 336.65 - - - - 8 65.22 16 298.19 50 1,632.40
Finance 31 1,235.47 1 7.50 - - 3 18.32 - - 2 1.03 37 1,262.33
Multisector 11 743.28 18 274.87 - - - - 7 39.66 2 4.80 38 1,062.61
Industry, Mining,
4 241.52 1 7.00 - - - - - - 8 4.55 13 253.07
and Quarrying
Urban
- - - - - - - - - - - - - -
Development
Environment 1 0.72 11 55.00 - - - - - - 37 90.65 49 146.38

Total approvals 103 5,125.14 87 1,088.20 3 13.30 9 119.45 33 224.51 106 708.21 341 7,278.81
a Excludes PSF and TSF.

2018 ANNUAL REPORT 49

APPENDICES

Appendix 3C:
Bank Group Approvals by Financing Instrument, 2018
(UA millions)

Financing Instrument  Ordinary Resources Special Resources Bank Group

ADB ADFa NTF PSF TSF
  Number Amount Number Amount Number Amount Number Amount Number Amount Number Amount

Project Lending 58 3,197.06 36 484.89 3 13.30 - - 6 61.44 103 3,756.68

Public and Publicly Guaranteed 29 2,121.84 36 484.89 3 13.30 - - 6 61.44 74 2,681.47
Project Loans 29 2,121.84 36 484.89 3 13.30 - - 6 61.44 74 2,681.47
Sector Investment and Rehabilitation - - - - - - - - - - - -
Lines of Credit - - - - - - - - - - - -
Private Non-Publicly Guaranteed 29 1,075.22 - - - - - - - - 29 1,075.22
Project Loans 16 759.51 - - - - - - - - 16 759.51
Lines of Credit 13 315.71 - - - - - - - - 13 315.71
Soft Commodity Finance Facility - - - - - - - - - - - -
Policy-Based Lending 7 895.26 3 65.00 - - - - - - 10 960.26
Sector Adjustment - - - - - - - - - - - -
Structural Adjustment - - - - - - - - - - - -
Budget Support 7 895.26 3 65.00 - - - - - - 10 960.26
Grants 14 9.58 44 513.49 - - - - 27 163.07 85 686.14
Technical Assistance 5 3.16 6 36.97 - - - - - - 11 40.13
Project Cycle Activities - - 1 0.80 - - - - - - 1 0.80
Institutional Support - - 5 36.17 - - - - - - 5 36.17
of which Private Sector - - - - - - - - - - - -
Middle-Income Countries Grant 5 3.16 - - - - - - - - 5 3.16
Project Grants - - 32 339.86 - - - - 24 127.07 56 466.93
Structural Adjustment Grant - - - - - - - - - - - -
Budget Support Grant - - 6 136.66 - - - - 3 36.00 9 172.66
African Food Crisis Response Grant - - - - - - - - - - - -
Special Relief Fund 9 6.42 - - - - - - - - 9 6.42
Emergency Assistance 9 6.42 - - - - - - - - 9 6.42
Emergency Post-Conflict - - - - - - - - - - - -
Special Debt Relief Grant - - - - - - - - - - - -
Institutional Capacity Building Loans 1 51.81 4 24.83 - - - - - - 5 76.64
Project Preparation Facility - - - - - - - - - - - -
Debt and Debt Service Reduction - - - - - - - - - - - -
SFM Debt Alleviation - - - - - - - - - - - -
HIPC Debt Relief - - - - - - - - - - - -
Post-conflict Country Framework - - - - - - - - - - - -
Equity Participation 15 211.83 - - - - - - - - 15 211.83
Public Equity - - - - - - - - - - - -
Private Equity 15 211.83 - - - - - - - - 15 211.83
Guarantee 8 759.61 - - - - 9 119.45 - - 17 879.06
Public Guarantees 1 390.75 - - - - - - - - 1 390.75
Private Guarantees 7 368.85 - - - - 9 119.45 - - 16 488.31
Loan Reallocations - - - - - - - - - - -  
Special Funds - - - - - - - - - - 106 708.21 
Total Approvals 103 5,125.14 87 1,088.20 3 13.30 9 119.45 33 224.51 341 7,278.81
a Excludes PSF and TSF.

50 2018 ANNUAL REPORT

 APPENDICES

Appendix 3D:
Bank Group Approvals by Region, 2012–18
(UA millions)

Region/Country 2012 2013 2014 2015 2016 2017 2018

Central Africa
Cameroon 47.3 45.5 143.8 447.9 323.0 274.1 242.5
Central African Republic 38.1 - 15.6 27.6 3.9 26.2 39.0
Chad 24.0 6.4 14.9 60.9 32.1 47.4 29.9
Congo 10.6 3.2 7.5 15.1 41.9 - -
Democratic Republic of Congo 69.0 204.9 187.1 40.7 138.3 7.1 106.1
Equatorial Guinea - - - - - - -
Gabon 145.4 - 1.6 - 68.5 490.7 229.1
São Tomé & Príncipe 0.5 7.7 - 14.0 2.0 1.5 0.7
Multinational           277.6 40.5
Central Africa Approvals 335.0 267.7 371.3 606.2 609.7 1,124.6 687.8

East Africa
Burundi 17.8 17.6 41.8 - 0.5 25.8 1.0
Comoros 2.6 35.9 4.0 8.0 - 15.2 -
Djibouti 8.4 5.6 - 8.2 6.3 - 11.5
Eritrea - - - 13.5 5.5 5.3 -
Ethiopia 166.0 85.7 66.6 182.3 314.4 140.4 99.7
Kenya 28.8 275.5 208.4 201.3 612.4 253.0 349.3
Rwanda - 54.6 99.4 20.2 43.8 198.6 312.6
Seychelles - 14.3 2.2 23.8 - - -
Somalia - 3.5 2.9 1.9 22.7 6.2 0.7
South Sudan 4.8 27.4 0.7 2.0 5.0 35.4 -
Sudan 4.3 25.6 - 58.9 24.5 15.0 131.0
Tanzania 154.6 42.1 98.7 549.2 219.1 20.3 151.0
Uganda 67.6 73.8 127.5 89.4 138.0 152.4 231.5
Multinational           236.6 271.2
East Africa Approvals 454.9 661.7 652.1 1,158.7 1,392.0 1,104.3 1,559.5

North Africa
Algeria 0.8 - 0.8 2.9 717.5 - 1.1
Egypt - 3.7 4.6 512.8 370.7 144.9 355.2
Libya - 2.5 - - - - -
Mauritania 9.1 1.7 4.5 - 26.5 43.2 13.0
Morocco 901.2 206.1 313.5 267.7 426.6 372.8 631.6
Tunisia 354.6 28.6 67.8 337.9 509.5 362.9 69.1
Multinational           4.7 95.6
North Africa Approvals 1,265.7 242.6 391.4 1,121.2 2,050.8 928.5 1,165.6

2018 ANNUAL REPORT 51

APPENDICES

Appendix 3D:
Bank Group Approvals by Region, 2012–18 (continued)
(UA millions)

Region/Country 2012 2013 2014 2015 2016 2017 2018

Southern Africa
Angola - 22.9 662.1 385.7 - 71.4 69.3
Botswana - - - - 55.9 - 0.7
Eswatini 0.5 - 45.8 0.9 43.3 19.6 56.7
Lesotho - 20.1 - - 15.7 6.2 0.4
Madagascar 2.3 81.7 65.9 34.4 57.9 32.8 109.5
Malawi 52.6 59.0 23.1 35.1 38.4 1.5 42.0
Mauritius - 99.0 76.8 1.2 - 70.7 -
Mozambique 78.0 26.5 28.7 18.6 60.0 1.4 35.9
Namibia 0.5 199.4 - 263.1 0.4 372.8 155.8
South Africa 273.1 - 264.8 274.5 30.3 123.1 382.5
Zambia 62.5 158.0 53.5 264.5 170.6 25.4 1.1
Zimbabwe 16.1 44.1 - 40.4 34.7 14.3 1.7
Multinational           171.7 -
Southern Africa Approvals 485.6 710.7 1,220.7 1,318.3 507.3 910.7 855.6

West Africa
Benin 31.2 46.4 26.4 34.6 - 39.1 141.0
Burkina Faso - 86.9 32.2 41.0 58.9 4.6 54.2
Cabo Verde 1.2 67.1 12.7 13.2 3.2 17.4 31.3
Côte d’Ivoire 238.6 63.4 30.6 169.8 305.6 270.3 339.9
Gambia 6.9 18.3 6.3 2.0 6.7 4.8 17.2
Ghana 168.8 14.2 58.6 172.1 112.2 93.0 163.6
Guinea 113.6 22.4 13.1 - 16.5 73.1 8.9
Guinea-Bissau 0.7 - 0.6 24.0 0.7 5.5 20.7
Liberia 37.8 45.4 13.7 0.3 31.2 6.3 27.4
Mali 0.7 136.0 64.6 15.0 39.8 80.1 168.0
Niger 54.6 12.6 - 20.0 63.1 - 51.0
Nigeria 63.9 530.9 1,009.9 4.1 1,310.4 22.0 398.2
Senegal 4.8 111.1 52.7 145.8 99.1 237.8 637.6
Sierra Leone 23.5 28.6 7.0 29.5 11.2 5.2 35.7
Togo 2.9 2.3 8.6 15.1 18.1 10.2 21.0
Multinational           373.2 373.1
West Africa Approvals 749.2 1,185.6 1,337.0 686.6 2,076.8 1,242.7 2,488.6
Multinational 963.3 1,317.5 1,077.4 1,443.6 1,398.8
Multiregional 885.2 521.8
Total Approvals 4,253.8 4,385.8 5,049.9 6,334.7 8,035.3 6,195.9 7,278.81

52 2018 ANNUAL REPORT

 APPENDICES

Appendix 4A:
Board of Governors of African Development Bank and Voting Powers of Member Countries
(as of 31 December 2018)
  Country Governor Alternate Total votes Voting powers (%)
1 Algeria Abderrahmane Raouya Miloud Boutabba 276,940 4.250
2 Angola Augusto De Sousa Archer Mangueira Pedro Luis Da Fonseca 76,588 1.175
3 Benin Abdoulaye Bio Tchane Romuald Wadagni 13,157 0.202
4 Botswana Ontefetse Kenneth Matambo Taufila Nyamadzabo 70,603 1.083
5 Burkina Faso Hadizatou Rosine Coulibaly Sori Ambroise Kafando 26,552 0.407
6 Burundi Domitien Ndihokubwayo Côme Manirakiza 15,246 0.234
7 Cabo Verde Olavo Correia C/O 5,203 0.080
8 Cameroon Alamine Ousmane Mey Charles Assamba Ongodo 70,961 1.089
9 Central African Republic Felix Moloua Henri Marie Dondra 3,189 0.049
10 Chad Issa Doubragne Issa Mahamat Abdelmamout 4,686 0.072
11 Comoros Said Ali Said Chayhane Fouady Goulame 1,152 0.018
Ingrid Olga Ghislaine Ebouka
12 Congo Calixte Nganongo 28,498 0.437
Babackas
13 Côte d’Ivoire Niale Kaba Adama Kone 243,611 3.738
Democratic
14 Henri Yav Mulang Deogratias Mutombo M. Nyembo 84,632 1.299
Republic of Congo
15 Djibouti Ilyas Moussa Dawaleh Ahmed Osman Ali 1,838 0.028
16 Egypt Tarek Amer Sahar Nasr 366,857 5.629
17 Equatorial Guinea Lucas Abaga Nchama Montserrat Afang Ondo 10,161 0.156
18 Eritrea Berhane Habtemariam Martha Woldegiorghis 2,628 0.040
19 Eswatini Neal Rijkenberg Tambo Gina 8,013 0.123
20 Ethiopia Ahmed Shide Ato Admasu Nebebe 103,303 1.585
21 Gabon Jean Marie Ogandaga Jean Fidéle Otandault 65,634 1.007
22 Gambia Mambury Njie Mod K. Ceesay 9,971 0.153
23 Ghana Kenneth Ofori-Atta Ernest Kwamina Yedu Addison 139,748 2.144
24 Guinea Kanny Diallo C/O 26,808 0.411
25 Guinea-Bissau Aristides Gomes Gino Mendes 1,879 0.029
26 Kenya Henry Kiplagat Rotich Kamau Thugge 94,235 1.446
27 Lesotho Moeketsi Majoro Motena Tsolo 4,336 0.067
28 Liberia Samuel D. Tweah Jr Augustus J. Flomo 12,455 0.191
29 Libya Faraj A. Faraj Omar Ali Mohamed Salem 151,138 2.319
30 Madagascar Vonintsalama S. Andriambololona Herivelo Andriamanga 42,859 0.658
31 Malawi Goodall Edward Gondwe Ben Botolo 15,401 0.236
32 Mali Boubou Cisse Arouna Modibo Toure 28,775 0.442
33 Mauritania Mohamed Ould Kembou Cheikh El Kebir Ould Chbich 4,305 0.066
34 Mauritius Pravind Kumar Jugnauth Dharam Dev Manraj 42,941 0.659
35 Morocco Mohamed Benchaaboun Faouzia Zaaboul 235,561 3.615
36 Mozambique Adriano Afonso Maleiane Rogerio Lucas Zandamela 41,099 0.631
37 Namibia Carl Hermann Gustav Schlettwein Ericah B. Shafudah 23,084 0.354
38 Niger Kane Aichatou Boulama Ahmat Jidoud 15,106 0.232
39 Nigeria Zainab Shamsuna Ahmed Mahmoud Isa-Dutse 608,316 9.334
40 Rwanda Uzziel Ndagijimana Claudine Uwere 9,192 0.141
41 São Tomé & Príncipe Osvaldo Vaz Helio Silva Vaz De Almeida 5,020 0.077
42 Senegal Amadou Ba Papa Amadou Sarr 68,649 1.053
43 Seychelles Maurice Loustau Lalanne Caroline Abel 2,462 0.038
44 Sierra Leone Jacob Jusu Saffa Sahr Lahai Jusu 18,482 0.284
45 Somalia Adbirahman Beileh Bashir Isse 2,566 0.039
46 South Africa Tito Titus Mboweni Mondli Gungubele 329,751 5.060
47 South Sudan Salvatore Garang Mabiordit Othom Rago Ajak 24,698 0.379
48 Sudan Mutaz Musa Abdalla Salim Mosllem Ahmed Alamir 19,555 0.300
49 Tanzania Philip Isdor Mpango Doto M. James 50,187 0.770
50 Togo Sani Yaya Kossi Assimaidou 10,986 0.169
51 Tunisia Zied Ladhari Moufida Jaballah Srarfi 92,175 1.414
52 Uganda Matia Kasaija Keith Muhakanizi 28,866 0.443
53 Zambia Margaret Mwanakatwe Fredson Kango Yamba 77,125 1.183
54 Zimbabwe Professor Mthuli Ncube George Tongesayi Guvamatanga 120,754 1.853
Total Regional 3,837,937 58.891
2018 ANNUAL REPORT 53
APPENDICES

Appendix 4A:
Board of Governors of African Development Bank and Voting Powers of Member Countries
(as of 31 December 2018) (continued)
  Country Governor Alternate Total votes Voting powers (%)
1 Argentina Nicolas Dujovne Guido Sandleris 6,472 0.099
2 Austria Hartwig Löger Edith Frauwallner 29,833 0.458
3 Belgium Alexander De Croo Johan Van Oovertveldt 42,412 0.651
4 Brazil Esteves Pedro Colnago Junior Carlos Eduardo Lampert Costa 22,270 0.342
5 Canada Chrystia Freeland Rick Stewart 251,775 3.863
6 China Yi Gang C/O 77,649 1.191
7 Denmark Ulla Tørnæs Martin B. Hermann 77,247 1.185
8 Finland Elina Kalkku Satu Santala 32,601 0.500
9 France Odile Renaud-Basso Guillaume Chabert 246,297 3.779
10 Germany Maria Flachsbarth Marianne Kothé 271,266 4.162
11 India Arun Jaitley Subhash Chandra Garg 17,404 0.267
12 Italy Giovanni Tria Gelsomina Vigliott 159,379 2.446
13 Japan Taro Aso Haruhiko Kuroda 359,890 5.522
14 Korea Dong Yeon Kim Juyeol Lee 32,077 0.492
15 Kuwait Nayef Falah Al-Hajraf Marwan Al-Ghanem 29,833 0.458
16 Luxembourg Pierre Gramegna Georges Heinen 13,840 0.212
17 Netherlands Sigrid Kaag R.M. (Reina) Buijs 57,862 0.888
18 Norway Jens Frølich Holte Bjørn Brede Hansen 77,536 1.190
19 Portugal Mário Centeno Maria Teresa Ribeiro 16,282 0.250
20 Saudi Arabia Yousef Ibrahim Albassam Ahmed Mohammed Al-Ghannam 13,235 0.203
21 Spain Nadia Calvino Ana De La Cueva 69,932 1.073
22 Sweden C/O Magnus Lennartsson 103,391 1.586
23 Switzerland Raymund Furrer Chantal Nicod 96,555 1.482
24 Turkey Bülent Aksu Kemal Çağatay Imirgi 24,096 0.370
25 United Kingdom Penny Mordaunt Lord Michael Bates 117,999 1.811
26 United States of America Steven T. Mnuchin C/O 431,898 6.627
Total Non-Regional 2,679,031 41.109
Grand Total 6,516,968 100.000
Note: The subscription position including the distribution of voting rights reflects the differences in the timing of subscription payments by member countries. After all shares created by
the Bank have been fully subscribed and paid for, the regional and non-regional groups are expected to hold 60 percent and 40 percent voting rights, respectively.

54 2018 ANNUAL REPORT

 APPENDICES

Appendix 4B:
Board of Governors of African Development Fund: Voting Powers of State Participants
and the African Development Bank (as of 31 December 2018)

Voting
State Participants/Donors Governors Alternate Total votes powers (%)
African Development Bank     1,000.000 50.000
Angola Augusto De Sousa Archer Mangueira Pedro Luis Da Fonseca 0.508 0.025
Argentina Nicolas Dujovne Guido Sandleris 0.063 0.003
Austria Hartwig Löger Edith Frauwallner 19.380 0.969
Belgium Alexander De Croo Johan Van Overtveldt 19.616 0.981
Brazil Esteves Pedro Colnago Junior Carlos Eduardo Lampert Costa 4.821 0.241
Canada Chrystia Freeland Rick Stewart 68.565 3.428
China Yi Gang C/O 21.666 1.083
Denmark Ulla Tørnæs Martin B. Hermann 23.984 1.199
Finland Elina Kalkku Satu Santala 19.880 0.994
France Odile Renaud-Basso Guillaume Chabert 104.391 5.220
Germany Maria Flachsbarth Marianne Kothe 105.133 5.257
India Arun Jaitley Subhash Chandra Garg 3.540 0.177
Italy Giovanni Tria Gelsomina Vigliotti 56.279 2.814
Japan Taro Aso Haruhiko Kuroda 105.634 5.282
Korea Dong Yeon Kim Juyeol Lee 10.922 0.546
Kuwait Nayef Falah Al-Hajraf Marwan Al-Ghanem 6.875 0.344
Luxembourg Pierre Gramegna Georges Heinen 0.686 0.034
Netherlands Sigrid Kaag R.M. (Reina) Buijs 44.507 2.225
Norway Jens Frølich Holte Bjørn Brede Hansen 45.907 2.295
Portugal Mário Centeno Maria Teresa Ribeiro 6.441 0.322
Saudi Arabia Yousef Ibrahim Albassam Ahmed Mohammed Al-Ghannam 10.399 0.520
Spain Nadia Calvino Ana De La Cueva 22.011 1.101
Sweden C/O Magnus Lennartsson 51.343 2.567
Switzerland Raymund Furrer Chantal Nicod 37.597 1.880
Turkey Bülent Aksu Kemal Çağatay İmi̇rg 1.405 0.070
United Arab Emirates C/O C/O 0.283 0.014
United Kingdom Penny Mordaunt Michael Bates 103.343 5.167
United States of America Steven T. Mnuchin C/O 104.820 5.241
Total     2,000.000 100.000

2018 ANNUAL REPORT 55

APPENDICES

Appendix 5:
Executive Directors of the Bank and the Fund (as of 31 December 2018)
Board of Directors of the African Development Bank
Chairperson: Akinwumi Ayodeji ADESINA

Executive Directors Alternative Executive Directors

Names Country Names Country
Tariq Al-Tushani Libya Hussein Abdi Halane Libya
Catherine Cudre-Mauroux Switzerland (Vacant)  
Moussa Dosso Côte d’Ivoire Bernardo Abaga Ndong Mayie Equatorial Guinea
Steven Dowd United States of America (Vacant)  
Federica Diamanti Italy Pim De Keizer Netherlands
Heinrich Mihe Gaomab Namibia Judith Kateera Zimbabwe
Karin Isaksson Sweden (Vacant)  
Dominique Lebastard France Isabel Riano Spain
Mmakgoshi E.P. Lekhethe South Africa Khotso Moleleki Lesotho
Martine Mabiala Gabon Edith Belem Damiba Burkina Faso
Soraya Mellali Algeria Alfredo Paulo Mendes Guinea-Bissau
Abdelmajid Mellouki Morocco Yandja Yentchabre Togo
René Obam Nlong Cameroon Donatien Maleyombo Central African Republic
Bright Erakpoweri Okogu Nigeria Alvaro Joao Santiago São Tome and Principe
Kwabena Boadu Oku-Afari Ghana Patrick Saidu Conteh Sierra Leone
Takuji Yano Japan Felix Martin Soto Argentina
David Stevenson Canada Thamer M. Alfailakawi Kuwait
Nyamajeje Calleb Weggoro Tanzania Efrem Tesfai Biedemariam Eritrea
Ahmed Mahmoud Zayed Egypt Ali Mohamed Ali Djibouti
Patrick Francis Zimpita Malawi Boniface Godirafetse Mphetlhe Botswana

Board of Directors of the African Development Fund

Chairperson: Akinwumi Ayodeji ADESINA
Executive Directors Alternative Executive Directors
Names Country Names Country
Tariq Al-Tushani* Libya (Vacant)  
Catherine Cudre-Mauroux Switzerland (Vacant)  
Moussa Dosso * Côte d’Ivoire Bernado Abaga Ndong Mayie Equatorial Guinea
Steven Dowd United States of America Matthew Turner United States of America
Federica Diamanti Italy Pim De Keizer Netherlands
Heinrich Mihe Gaomab * Namibia Judith Kateera Zimbabwe
Karin Isaksson Sweden (Vacant)  
Dominique Lebastard France Isabel Riano Spain
Mmakgoshi E.P. Lekhethe* South Africa Khotso Moleleki Lesotho
Martine Mabiala* Gabon Edith Belem Damiba Burkina Faso
Soraya Mellali* Algeria Alfredo Paulo Mendes Guinea-Bissau
Takuji Yano Japan Felix Martin Soto Argentina
David Stevenson Canada Thamer M. Alfailakawi Kuwait
Nyamajeje Calleb Weggoro* Tanzania Efrem Tesfai Biedemariam Eritrea

* Representing African Development Bank

56 2018 ANNUAL REPORT

 APPENDICES

Appendix 6:
Principal Officers of the Bank Group (as of 31 December 2018)

  SURNAME OTHER NAME

Presidency, Units Reporting to the President, and the Boards
President Adesina Akinwumi Ayodeji
Director of Cabinet/Chief of Staff Naidoo Samantha
Secretary General Nmehielle Vincent Obisienunwo Orlu
Group Chief Risk Officer Turner Timothy
Acting General Counsel and Director Penn Godfred Awa Eddy
Auditor General Okonkwo Chukwuma
Acting Director, Integrity & Anti-Corruption Sankareh Bubacarr
Director, Compliance Review & Mediation Toure Sekou
Acting Evaluator General Rot-Munstermann Karen
Senior Vice Presidency
Senior Vice President Boamah Charles Owusu
Chief Economist and Vice President, Economic Governance and Knowledge Management
Chief Economist & Vice President, Economic Governance
Monga Célestin
and Knowledge Management
Corporate Services and Human Resources
Vice President Magala Mateus
Finance
Chief Financial Officer and Vice President Tshabalala Bajabulile Swazi
Regional Development, Integration, and Business Delivery
Vice President Sherif Khaled
Director General, Central Africa Dore Ousmane
Director General, East Africa Negatu Gabriel
Director General, North Africa El Azizi Mohamed
Director General, Southern Africa Kapoor Kapil
Director General, West Africa Akin-Olugbade Née Ndongo-Seh Marie-Laure
Power, Energy, Climate, and Green Growth
Vice President Hott Amadou
Agriculture, Human and Social Development
Vice President Blanke Jennifer Day Rosen
Private Sector, Infrastructure, and Industrialization
Vice President Guislain Pierre Albert L.

2018 ANNUAL REPORT 57

 INDEPENDENT DEVELOPMENT EVALUATION BOARD OF GOVENORS OFFICE OF THE AUDITOR GENERAL
BDEV BGOV PAGL
APPENDICES

ADMINISTRATIVE TRIBUNAL OFFICE OF INTEGRITY AND ANTI-CORRUPTION

BATR PIAC
BOARD OF DIRECTORS
BDIR
Appendix 7:

COMPLAINCE REVIEW AND MEDIATION CHIEF OF STAFF & DIRECTOR OF CABINET

BCRM PCSC

58 2018 ANNUAL REPORT

SECRETARIAT TO THE SANCTIONS
APPEALS BOARD PRESIDENT AFRICA INVESTMENT FORUM
BSAB AKINWUMI ADESINA PAIF
PRST
OFFICE OF THE SECRETARY-GENERAL &
COMMUNICATION & EXTERNAL RELATIONS
GENERAL SECRETARIAT
PCER
PSEG
SENIOR VICE PRESIDENT
OFFICE OF THE GENERAL COUNSEL C. BOAMAH
SNVP ETHICS OFFICE
AND LEGAL SERVICES
PETH
PGCL

GROUP RISK MANAGEMENT FUNCTION SECURITY

PGRF PSEC

VP REGIONAL VP POWER, VP AGRICULTURE, VP PRIVATE SECTOR, STRATEGY AND DIRECTOR, SNVP & CHIEF ECONOMIST/ VP FINANCE VP CORPORATE
DEVELOPMENT, ENERGY, CLIMATE, HUMAN INFRASTRUCTURE AND OPERATIONAL POLICIES SMCC SECRETARIAT VP FOR ECONOMIC FIVP SERVICES AND
INTEGRATION, AND AND GREEN AND SOCIAL INDUSTRIALIZATION SNSP SNDI GOVERANCE AND HUMAN RESOURCES
KNOWLEDGE CHVP
Organizational Structure of the Bank Group

BUSINESS DELIVERY GROWTH DEVELOPMENT PIVP

RDVP PEVP AHVP PROGRAMMING FIDUCIARY & MANAGEMENT
AND BUDGET INSPECTION ECVP
SNPB SNFI
DIRECTOR POWER SYSTEM AGRICULTURE & NSO AND PRIVATE MACROECONOMICS GENERAL SERVICES
GENERAL — CENTRAL DEVELOPMENT AGRO-INDUSTRY SECTOR SUPPORT POLICY, FORECASTING TREASURY
OPERATIONS COMMITTEE DELIVERY, PERFORMANCE FITR AND PROCUREMENT
RDGC PESD AHAI PINS AND RESEARCH CHGS
SECRETARY AND MANAGEMENT ECMR
QUALITY ASSURANCE AND RESULTS
DIRECTOR CLIMATE CHANGE & AGRICULTURE FINANCIAL SECTOR SNOQ SNDR HUMAN RESOURCES
GENERAL — EAST GREEN GROWTH FINANCE AND RURAL DEVELOPMENT COUNTRY ECONOMICS FINANCIAL CONTROL
FIFC MANAGEMENT
RDGE PECG DEVELOPMENT PIFD ASIA EXTERNAL DEPARTMENT CHHR
AHFR SPECIAL REPRESENTATION ECCE
DIRECTOR INFRASTRUCTURE & OPERATIONS UNIT SNAR RESOURCE CORPORATE IT
ENERGY, FINANCIAL
GENERAL — NORTH GENDER, WOMEN URBAN DEVELOPMENT SOU MODERNIZATION AND SERVICES
SOLUTIONS, POLICY STATISTICS
RDGN AND REGULATION & CIVIL SOCIETY PICU PARTNERSHIPS CHIS
ECST FIRM
PESR AHGC SAFEGUARDS AND
DIRECTOR INDUSTRIAL AND COMPLIANCE
DEPARTMENT AFRICAN LANGUAGE
GENERAL — SOUTH RENEWABLE ENERGY HUMAN CAPITALS, TRADE DEVELOPMENT FINANCIAL SERVICES
YOUTH AND SKILL SNCS DEVELOPMENT MANAGEMENT
RDGS AND ENERGY PITD CHLS
DEVELOPMENT INSTITUTE FIFM
EFFICIENCY
AHHD ECAD
DIRECTOR PERN MEDICAL AND
GENERAL — WEST SYNDICATIONS AND OCCUPATIONAL
RDGW ENERGY WATER AND AFRICAN NATIONAL CLIENT SOLUTIONS
SANITATION RESOURCES CENTER HEALTH SERVICES UNIT
PARTNERSHIPS FIST CHMH
PENP AHWS ECNR
NIGERIA COUNTRY
DEPARTMENT STAFF RETIREMENT
GOVERNANCE AND PLAN UNIT
RDNG PUBLIC FINANCIAL FISR
MANAGEMENT
TRANSITION STATES COORDINATION OFFICE
COORDINATION ECGF
OFFICES
RDTS

REGIONAL INTE-
GRATION COORDI-
NATION OFFICE
RDRI
 APPENDICES

Appendix 8:
Classification of Regional Member Countries

Category A — Countries Eligible for African Development Fund Resources Only

1 Benin 18 Madagascar
2 Burkina Faso 19 Malawi
3 Burundi 20 Mali
4 Central African Republic 21 Mauritania
5 Chad 22 Mozambique
6 Comoros 23 Niger
7 Côte d’Ivoire 24 Rwanda
8 Democratic Republic of Congo 25 São Tomé & Príncipe
9 Djibouti 26 Sierra Leone
10 Eritrea 27 Somalia
11 Ethiopia 28 South Sudan
12 Gambia 29 Sudan
13 Ghana 30 Tanzania
14 Guinea 31 Togo
15 Guinea-Bissau 32 Uganda
16 Lesotho 33 Zimbabwe
17 Liberia
Category B — Countries Eligible for a Blend of African Development Bank and African Development Fund Resources
1 Cameroon
2 Kenya
3 Senegal
4 Zambia
Category C — Countries Eligible for African Development Bank Resources Only
1 Algeria
2 Angola
3 Botswana
4 Cabo Verde
5 Congo
6 Egypt
7 Equatorial Guinea
8 Eswatini
9 Gabon
10 Libya
11 Mauritius
12 Morocco
13 Namibia
14 Nigeria
15 Seychelles
16 South Africa
17 Tunisia

2018 ANNUAL REPORT 59

APPENDICES

Appendix 9:
Standing Committees of the Boards

Board effectiveness and welfare: The Committee on Administrative Matters Concerning the Board (AMBD)
In 2018, the AMBD considered reports from consultation missions and study tours, with outcomes providing strategic input into
the development of the new Regional and Country Strategy Frameworks and an evaluation of the development impact of the
ongoing decentralization. In addition, the AMBD reviewed a number of instruments designed to enhance Board effectiveness,
including a Board handbook and manual. Under the guidance of the committee, the 2018 Board Retreat convened under two
themes: “Private Sector Engagement” and “The Positioning of the Bank Relative to Other Multilateral Development Banks.” The
retreat aimed to prioritize areas for greater private sector involvement in the Bank Group’s interventions and identify ways that
the multilateral development bank system can act as a catalyst for change.

Accountability and risk management: The Audit and Finance Committee (AUFI)
In 2018, AUFI provided oversight and monitoring of the implementation of audit recommendations, the administrative budget,
the 2018 Lending Program, Special Operations Unit Portfolio, Group Risk Management, Capital Adequacy and Exposure reports,
and market risks. AUFI also reviewed and cleared the work plans of independent accountability units reporting to it, including the
Office of the Auditor General and the Office of Integrity and Anti-Corruption.

Staff welfare and corporate efficiency: The Committee on Administrative and Human Resource Policy Issues (CAHR)
In 2018, CAHR provided strategic guidance on internal administration of justice to enhance the rule of law and accountability, and
advised the Boards on a long-term strategy for acquiring and managing real estate for Regional and Country Offices. CAHR also
oversaw a review of the Staff Pension Scheme in order to enhance its long-term sustainability. Further, it reviewed a new draft of
the Bank Group’s People Strategy and provided considerable input.

Focus on results and impact: The Committee on Operations and Development Effectiveness (CODE)
In 2018, CODE reviewed and provided input into draft Country Strategy Papers for Congo, Côte d’Ivoire, Equatorial Guinea,
Guinea, Liberia, Malawi, Mozambique, Niger, São Tomé and Príncipe, and South Africa, as well as an updated Country Strategy
Paper for Nigeria. CODE sought to align these instruments with each country’s socioeconomic development priorities, em-
phasized inclusion as well as selectivity, and addressed climate change, fragility, gender mainstreaming, regional integration,
economic diversification, and engagement with the private sector. In addition, it reviewed and cleared the work plans of indepen-
dent accountability units reporting to it, including independent development evaluation and compliance review and mediation.

Client orientation and stakeholder management: The Committee on External Communications and Preparation of
the Bank Group Annual Meetings (ECAM)
In 2018, ECAM provided strategic guidance that led to the successful convening of the Annual Meetings of the Bank Group in
Busan, Korea. Further, ECAM provided direction toward preparing the Bank Group Annual Report 2018 and the African Economic
Outlook 2018.

Fostering an ethical culture: The Committee for the Enforcement of the Code of Conduct for Executive Directors
(ECBD)
In 2018, ECBD successfully resolved one matter referred to it.

Cost effectiveness and efficiency: The Committee of the Whole on the Budget (CWHOLE)
In 2018, CWHOLE conducted mid-term and end-of-year reviews of the performance reports on implementing the budget and
the work program. It also reviewed and shaped the strategic orientations for the three-year budget framework paper and work
program for 2019–21, for consideration by the Boards.

60 2018 ANNUAL REPORT

African Development Bank Group
Avenue Joseph Anoma Telephone: +225 2026 3900
01 BP 1387 Abidjan 01 Email: [email protected]
Côte d’Ivoire Website: www.afdb.org

ISSN – 1737-8990