As momentum builds for an internationally backed blueprint for recovery in Africa, African governments are viewing their own development bank as a conduit through which increased funds could be managed, the World Bank press review reports Monday.
The UK-sponsored Commission for Africa report recommended that rich countries ramp up aid to the continent initially by 25 billion US dollar a year, canceling all debts to poor countries that need relief and removing trade barriers on African goods.
Although he has failed to convince some donor countries, notably the US, Tony Blair, UK prime minister, will press the recommendations at the Group of Eight summit in Gleneagles, Scotland, in July.
The African Development Bank (ADB), which failed this week in the Nigerian capital Abuja to elect a new president, has received the UKs tacit backing to become a leading instrument in this program.
– In our plans to double aid to Africa, the ADB will have a key role in ensuring that the increase of resources is spent well, Hilary Benn, British international development secretary (udviklingsminister), told the banks annual meeting.
Divisions over African involvement in financing the commissions recommendations have also resulted in a stalemate in the selection of the ADBs new president. Olabisi Ogunjobi, a Nigerian vice-president of the bank is largely backed by African members, while Donald Kaberuka, Rwandas finance minister, is a favorite of the non-African members, notably the US.
The bank has turned around its reputation as a poorly staffed and inefficient lending institution and now boasts a AAA credit rating by Standard and Poors. In the last decade, the Bank has instituted better project appraisals, taken in more qualified economists and restructured its sagging portfolio.
Instead it only offers high risk countries soft loans for basic economic and human needs through the African Development Fund, an arm of the group largely funded through non-African Bank members.
In 2004 the Bank approved projects worth 4,3 billion US dollar and disbursed (udbetalte) 2 billion. Analysts say it now offers better value for money than the World Bank in some cases. – They have got a niche in infrastructure and they are getting their country allocations right, said Professor Paul Collier of Oxford University.
The Bank is now trying to diversify and bring itself closer to its projects in the continent. It hopes to establish country offices in a further 16 locations, over the coming years.
But skeptics say the ADB will continue to be overshadowed by the better endowed World Bank and its backers as long as there is resistance to the Commission for Africas proposals by donor countries, which are less optimistic about Africas ability to manage the proposed leaps in credit.
Kilde: www.worldbank.org
