Ahead of its maiden African Investment Forum (AIF) in November, the African Development Bank (AfDB) has reported another year of sustained indicators for 2017, underlined by a Triple A rating by all three major agencies and sharply increased earnings.
The bank noted in a statement released on Tuesday that its performance and ratings are based on the support of its shareholders, including in the form of strong callable capital.
Net operational earnings for 2017 increased by 63% to $597-million, from $109-million in 2016, capping a five-year upward trend that started in 2013.
In terms of project performance, the bank disbursed a record $5.1-billion for projects and programmes across Africa in 2017, representing an increase of 14% over the previous all-time high of $4.5-billion, in 2016.
The bank’s financial performance and overall achievements across other key metrics – such as volume of new development assistance, disbursements and governance – were “excellent in spite of a well-recognised difficult operating environment”.
“Of all multilateral development banks, the AfDB operates in the most challenging ‘operating environment’ defined by rating agencies as a reflection of the risks associated with the countries of operation,” senior VP Charles Boamah noted.
AfDB’s core agenda targets lifting 38 African countries, which are considered as the continent’s most vulnerable and least developed, out of poverty.
According to Boamah, the bank’s challenging operating environment was offset by the institution’s intrinsic financial strength, which prompted shareholders at this year’s annual meetings, in May, to approve the formal start of discussions for a possible seventh general capital increase for the AfDB group.
Such an increase, he added, would further strengthen the financial base of the bank, thereby enabling it to further scale up its support to African countries, including those facing conditions of fragility.
The inaugural AIF will be held in Johannesburg from November 7 to 9 and offers a platform for sourcing funding for bankable African projects, brokering infrastructure deals and providing innovative financial solutions.