African Development Bank to Elect New President Amidst Unprecedented Challenges
The African Development Bank (AfDB) is convening in Côte d'Ivoire to elect a new leader, as the continent's largest multilateral lender is faced with unprecedented challenges, including funding cuts decided by Washington. The new American administration aims to reduce funding for the AfDB and its African Development Fund (ADF) by $555 million, which provides low-cost financing to poor nations on the continent.
The annual gathering of heads of state and financial leaders, one of the largest financial meetings on the continent, is taking place this year in Abidjan. The majority of countries are heavily indebted and seeking new financing channels.
The AfDB, the largest development finance institution in Africa with a capital of $318 billion, is owned by 54 African states and G7 countries. Nigeria is its largest shareholder. The next cycle of resource replenishment for the ADF, which takes place every three years, is expected to take place in November 2025. The goal is to mobilize $25 billion, compared to $8.9 billion in the last cycle.
The new president will have to try to persuade the United States to reinstate financing, seek additional funding from non-member countries such as China, or Gulf countries like Saudi Arabia and the United Arab Emirates, in exchange for financing from the European Union.
Five candidates from South Africa, Senegal, Zambia, Chad, and Mauritania are vying to replace outgoing President Akinwumi Adesina, who will leave office in September after serving the maximum two five-year terms. The winner, who must obtain at least 50.01% of the votes from the 54 African member countries of the bank and, including non-African countries, will be announced on Thursday.
