Canada to support AfDB with $1.1b

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The African Development Bank (AfDB) is to receive 1.1 billion dollars from Canada as commitment in temporary callable capital to support the bank, an official of the bank says.

Ms Nafissatou Diouf, Communication and External Relations Department of the bank made this known in a statement in Abuja on Friday.

Diouf said the Canadian Minister of International Development, Women and Gender Equality, Maryam Monsef, made the announcement on

the sidelines of the World Bank-IMF Spring meetings at Washington D.C.

She quoted the minister as saying that the fund would be approved by the bank’s governors.

“I am happy to say that today, Canada is demonstrating its commitment to African countries and our confidence in the AfDB by announcing that we are going to subscribe up to 1.1 billion dollars in temporary callable capital, if required.

“The AfDB is a key partner for Canada and we are committed to supporting the bank’s African member countries.

“Canada and Canadians are proud of our long history of partnership and collaboration with Africa.

“Canada is determined to ensure that no less than 50 per cent of bilateral development assistance is dedicated to sub-Saharan Africa by 2021-2022” she said.

Diouf also quoted the AfDB’s President, Dr Akinwumi Adesina, as saying that Canada’s commitment and support was a huge boost to the bank.

According to Adesina, the support will allow the bank to strengthen its Triple A rating and increase lending to member countries.

“Discussions are ongoing among all shareholders for a general capital increase.

“Your announcement is a clear indication that Canada has strong confidence in the AfDB.

“While extending the bank’s appreciation to Prime Minister, Justin Trudeau for Canada’s unwavering support for the bank” Adesina said.

She disclosed that in all general capital increases of the bank, it provided temporary callable capital in 2010 while the GCI VI negotiations were ongoing.

She said the decision enabled the bank to continue to provide its support to regional member countries in the aftermath of the international financial crisis.

“As at 30 June 2018, Canada’s total capital subscribed amounted to 3.5 billion dollars of which 252 million dollars has been paid in and 3.22 billion dollars stands as callable capital.” And that makes Canada the fourth largest shareholder among the bank’s non-regional member countries,” she added.