AFRICAN DEVELOPMENT BANK GROUP
Building today, a better Africa tomorrow

INVESTOR PRESENTATION
October 2023

1

Overview of the Bank Group3

2

Financial Profile of the African Development Bank

26

3

Capital Market Activities

37

4

Appendix

47

Financial Statements

48

Sustainable Bond Framework

50

African Economic Outlook

62

Frequently Asked Questions

66

2

Overview of the
Bank Group3

AfDB Group: 3 legally and financially separate institutions, with a common goal…

African Development Bank (“AfDB”)• Established in 1964
• 81 member countries• Authorized capital: USD 243 billion• Resources raised from capital markets• 0% risk-weighting under Basel II• Level 1 under Basel III

African Development Fund (“ADF”)• Concessional financing, established in 1972
• Financed by 29 state participants (including
Angola) and 4 regional donors (Botswana,
Egypt, Morocco and South Africa)• Subscription: USD 47 billion• Focus on low-income countries• Replenished every 3 years

Nigeria Trust Fund (“NTF”)• Established in 1976 by Nigeria• Targeted at the Bank’s neediercountries• Maturing in 2028
• Total resources: USD 242 million

Governance and Oversight
Board of Governors

Board of Directors• Highest decision-making body
• Composed of Ministers of Financeand Ministers of Cooperation of themember countries• 20 Executive Directors elected by the
Board of Governors, resident in Abidjan• Oversees the general operations

Decisions by both Boards
require two-thirds majority or
70%, should any member
request so…of combating poverty, and improving lives on the continent(as of 30 June 2023)
4

EuropeAfricaNIGERIAEGYPTALGERIA
SOUTH AFRICA
MOROCCOCOTE D'IVOIRE
LIBYA
GHANA
DEM.REP.CONGOZIMBABWEETHIOPIATUNISIAKENYAZAMBIAANGOLACAMEROONSENEGALTANZANIABOTSWANAMADAGASCAR
MAURITIUS
MOZAMBIQUEGABONGUINEA
BURKINA FASOUGANDA
CONGO

8.544%
6.019%
4.933%
4.908%
4.395%
3.770%
2.453%
2.203%
1.754%
1.689%
1.573%
1.406%
1.368%
1.152%
1.122%
1.013%
1.005%
0.844%
0.750%
0.637%
0.628%
0.573%
0.518%
0.397%
0.395%
0.394%
0.376%(as of 30 June 2023)

NAMIBIA
SOUTH SUDAN
MALAWIBURUNDI
MALI
NIGER
BENIN
LIBERIATOGO
RWANDAGAMBIASIERRA LEONESUDAN
ESWATINILESOTHO
EQ.GUINEASAO TOME & P.
CABO VERDECHAD
MAURITANIA
CENT.AFR.REP
ERITREASOMALIASEYCHELLESDJIBOUTIGUINEA BISSAUCOMOROS

0.333%
0.330%
0.330%
0.228%
0.217%
0.204%
0.201%
0.193%
0.161%
0.133%
0.131%
0.128%
0.121%
0.110%
0.089%
0.076%
0.065%
0.059%
0.057%
0.053%
0.038%
0.030%
0.029%
0.012%
0.010%
0.008%
0.008%

African members
60%

GERMANYFRANCE
ITALY
U.K.
SWEDENSWITZERLANDNORWAY
DENMARKSPAIN
NETHERLANDSIRELANDBELGIUM
FINLAND
AUSTRIAPORTUGALLUXEMBOURG

Non-African members
40%

G-7 Shareholding
27%

125% capitalincrease

General Capital Increases

111,245(in USD million)

200% capitalincrease

Middle EastKUWAIT

58,121

187
GCI-I
1976

505

1,482

14,351

7,534

GCI-II GCI-III GCI-IV GCI-V GCI-VI GCI-VII
1979
1981
1987
1998
2010
2019

3.997%
3.602%
2.328%
1.777%
1.507%
1.407%
1.130%
1.124%
1.016%
0.847%
0.788%
0.616%
0.469%
0.428%
0.231%
0.199%

TURKEY

0.428%
0.380%SAUDI ARABIA

0.186%

Americas
U.S.A
CANADABRAZIL
ARGENTINA

6.356%
3.691%
0.171%
0.081%

Asia
JAPAN
CHINA
KOREA
INDIA

5.280%
1.225%
0.462%
0.276%

5

Additionality and development outcome assessment –Indicators• GDP growth (%)• GDP per capita (constant 2010 $)*• Mo Ibrahim Index of African Governance**• Tax and non-tax fiscal revenues• Gender Inequality Index• Production efficiency• Resilience to water shocks• Number of refugees and internally displaced people

AfDB Sovereign Operations
17 middle-income countries eligible toreceive AfDB funding
Criteria:
 GNI per capita
 Country’s creditworthiness

Access to both AfDB and
ADF financing
9 countries eligible
6 Blend countries: Cameroon, Cote d’Ivoire,
Kenya, Senegal, Tanzania and Zambia
3 ADF countries with access to AfDB
resources through the revised 2014 credit
policy: Benin, Rwanda and Uganda

ADF Concessional Financing
28 low-income countries eligible toreceive loans and grants from ADF only

•
•
•
•

Private Sector Operations
Viable enterprises and multinational projects with anadditionality and development outcome
Direct loans
Lines of credits
Equity participation
Guarantees
Enclave FinanceSelf-sustaining, export-oriented projects,
located in ADF countries*Dollar GDP figures converted from domestic currencies using
2010 as a base year. Data reported in constant 2010 prices show
data for 1990, 2000 and all other years in 2010 prices**A statistical assessment of the performance of governance inevery African country

Providing selective access to Bank resources for countries withsound macroeconomic position and sustainable debt profile6

If the Sustainable Development Goals (SDGs) are not met in Africa, they will not be met globally
Light up andPower Africa

1 3 4 5 7 9 13

Feed Africa

1 2 5 13

Industrialize
AfricaIntegrate Africa

1 3 5 7 8 9 12

1 3 6 9 17

Improve thequality of life forthe people of Africa

1 3 4 5 6 8 10 11

The High 5s will help Africa achieve
close to 90% of the SDGs and are
intrinsically linked to the African
Union’s Agenda 2063

Delivering on the Bank's Ten-Year Strategy to achieve inclusive
growth and help Africa gradually transition to green growth7Offering Africa a real opportunity to accelerate its development and converge with the rest of the world
Bank Group approvals and disbursements(in USD million)

10,802
8,779

7,316

6,754
4,917

2013

Greater
effectiveness

4,639

2014

10,125
8,824

6,347

10,095

7,727

7,386
6,007
5,234

6,071

4,274

2015

2016
2017
Approvals

Deeperunderstanding ofcontext

2018

Enriched
policy dialogue

2019

2020
Disbursements

8,192
6,307

2021

Improved
disbursements
and procurement
processes

4,997

4,683

Note:
Includes loans, grants, equity investments,
emergency operations, HIPC debt relief,loan reallocations, guarantees and thePost Conflict Country Facility

2022

Improved
project
supervisionquality andengagement

With the right investment and policies the SDGs can be achieved in Africa

Closecoordination
with otherdevelopment
partners

8Delivering across the organization

High 5s all round(in USD million)

 African Development Bank

4,949

 African Development Fund

2,419

 Transition Support Facility

458

 Special Funds

366(in USD million)

697

1,511

2,121

1,786

2,077

2022 Bank Group approvals

2.2(in USD million)

1.6
1.5
1.1

Africa’s largest
financier oftransport
infrastructure

0.5Transport(As of 31 December 2022)

Power

Finance* Industry, Communications and Environment

Agriculture

0.7

Multi-sector Water & Sanitation

0.3

0.3

SocialOther*
9Immense power deficit across the continent

Energy use in
Africa is theworld’s lowest






Powering industrialization and lifting
people out of poverty

52% of households have access to electricity vs 45% in 2015
900 million people have no access to clean cooking solutions
20 countries in the world with lowest electrification are in Africa
Annual per capita energy consumption is 730 kWh vs 13,000
kWh in the US and 6,500 kWh in Europe

Health and education attainment
CompetitivenessUnlock economic potential






Installed power capacity of 191 GW vs 204 GW in Germany
Power outages costing 0.2-4% GDP annually
90% of primary schools lack electricity
Hampers hospitals and emergency services

Electricity
demandprojected totriple by 2030

Job opportunities

Energy is a human imperative
A considerable push toward cleaner, low-carbon energy
Abundant renewable energy
potential 10 TW of solar,
350 GW of hydroelectric,
110 GW of wind and 15
GW of geothermal vs 46
GW currently installed$70 billion investments ininfrastructure needed peryear to develop renewables

Need for innovativetechnologies and financing
instruments

Reliable, affordable
and green energy toachieve universal
energy access needed
for the continent10 Investing in construction and upgrading of power lines andtransformer stations to reduce energy costs, improve access andreliability and attract investment
 Interconnection projects to allow countries to rationalize theirgeneration capacity and trade excess power
Clean hydro energy stimulating green and inclusive growth
Gabon - Kinguele Aval Hydro Power Project

Development impact

from projects completed in 2022

•1.3 million people with new electricity connections•774 km of new or improved power distribution and transmission lines•612 MW of new power capacity installed, of which 113 MW renewable•2.6 million tons of CO2 emissions reduced

Strengthening the national electricity grid to integrate renewable energy
Tunisia – Project to develop and equip the Power and Transmission
Grid (PAERTE)

Project cost: EUR 177 million / Bank financing: EUR 20 million
Year of approval: 2021

Project cost: EUR 290 million / Bank financing: EUR 108 million
Year of Approval: 2021

The hydropower plant will provide 34.1 MW of reliable, affordable, andclean energy generation capacity to the population. The project willcontribute to improve socio-economic development through support ofeconomic activity, while providing cost-effective reliable energy sources
needed to boost economic sectors and contributing to the transition
towards green growth in the energy sector.

The project aims to improve the performance of the national electricity
transmission network in order to meet the country's growing demand forelectricity and contribute to Tunisia's economic and social development. Its
goal is to improve the quality of electricity supply throughout the country andstrengthen the electricity grid for the integration of renewable energies
expected from solar and wind power plants that are being developed.

Expected development outcomes:• GHG emission reduction of 9.9 million tons of CO2 annually• 200,000 additional people will get access to electricity• 700 GWh of additional power capacity installed• 900 jobs created

Expected development outcomes:• 27.5% increase in share of renewable energies in national energy mix• 2% decrease in energy losses in transmission and distribution system• 2,020 MVA increase in transit capacity of electricity transmission network• 1,220 jobs created11Africa needs $118-145 billion per year to adapt to climate change by 2030
Protecting the continent from extreme climate
Climate risks impacting thepoorest and mostvulnerable communities






Rising sea levels,
droughts, floods
Impeding agricultural
productivity and foodsecurityThreatening waterand energy security
Exacerbating poverty
Impacting sovereign
credit ratings

Extreme Risk

High Risk

Medium Risk

Source: Climate Change Vulnerability Index 2017 - Verisk Maplecroft

4 out of 5
world’s mostvulnerable
countries are
AfricanAfrica accounts forless than 4% ofworld’s greenhousegas (GHG)
emissions

Low Risk No Data

Less than 3%of global
climate financeflows to Africa

Building climate resilience by planning for growth and development
12

Climate change mainstreamed in 94% of Bank operations in 2022
In 2022$2.6 billion = 42% ofapprovals
all AfDBof climate finance

64%

$0.9

$1.7

Mitigation

USD 501 million
mobilized in co-financing
and external climate funds
in 2022

African Adaptation
Acceleration Program(AAAP)• Partnership with Global
Center for Adaptation(GCA)• USD 25 billion commitment
to support adaptation in
Africa by 2025
• AfDB hosting GCA’s Africa
office36%billionAfrica needs $3 trillion to implement Nationally Determined Contributions (NDCs)

billion

Adaptation

Africa NDC Hub - a partnership platformto provide technical assistance and deliver
NDC targets•54 African countries ratified their NDCs
•Ongoing support for the development of LongTerm Low Carbon and Climate Resilience
Strategies (LTS) in Gabon, Liberia, Lesotho,
Botswana, Uganda, Mozambique, Ethiopia andBurkina Faso
•USD 150-450 million technical assistance tocover climate action capacity-building, including
support for LTS development, NDC revision andinvestment plans

Mozambique - Hidroelectricia Cahora Bassa’s
Project cost: EUR 650 million / Bank financing: EUR 100 million
Year of Approval: 2022
Expected development and climate outcomes:• 6 million tons of CO2 emissions avoided• 110MW increase in delivery of clean energy• Enhance regional integration of the electricity sector in SADC
countries• EUR 177 million contribution to the national economy

Africa offers tremendous greenfield investment opportunities to support climate action

13

Climate Action Window targeting high climate
impact projects in ADF countries• USD 429 million earmarked as seed money to reach up to USD 13
billion to be mobilized through co-financing by external climate funds,
state and non-state actors, including the private sector• Grants to 37 low-income and fragile states, worst hit by climate change• Support the development of sustainable and climate-resilient
infrastructure in agriculture, water security, climate services andinformation, transport, green energy and green finance75%
adaptation

15%
mitigation

10%
technical
assistanceRoom-to-Run Sovereign - A new blended risk transfer
arrangement to support climate finance
KEY TRANSACTION FEATURES
Risk sharing mechanism on a USD 2 billion subset of Bank’s sovereign
portfolio:• Up to USD 400 million of first loss insurance provided by private insurers• USD 1.6 billion of second loss guarantee provided by UK Foreign
Commonwealth and Development Office (FCDO)Bank to coverits prorateshare of thelosses

50% exposure
retained by
the Bank at
all times

AfDB
remains
lender ofrecordADDITIONAL CLIMATE FINANCE LENDING
Expected development impact :• 20 million farmers to access climate-resilient agricultural technologies• 18 million people provided with sustainable and resilient water,
sanitation and health services• 9.5 million people to get access to renewable energy• 1 million hectares of degraded land to be rehabilitated• Scaling up Bank’s commitment up to USD 2 billion towards climate
finance projects over 2022-2025• Improving sovereign portfolio risk rating and capital adequacy ratios(S&P Risk-Adjusted Capital (RAC), Fitch Equity to Risk Weighted
Asset Ratio (FRA) and Bank’s Risk Capital Utilization Rate (RCUR))

Strengthening Africa's climate resilience14

Transforming the Sahel into the largest solar power production zone
New approachInnovative blended
finance package
Cooperation withfinancial and specialized
institutions, developers
and political initiatives
Encouraging newtechnologies
Partnering with

Improveregional energy
interconnection

Attract
privatesector in
renewableenergy

250 million people
in the Sahel will get
access to electricity

Desert to Power Initiative West Africa Regional
Energy Program (WAREP) - Phase I

High untappedsolar potential

ADF grant: USD 6 million / Year of approval: 2021
The program will support countries in accelerating regional
development of solar power generation, cross-bordertransmission and decentralized solar projects.

Desert-to-Power Initiative•Transform economic,
social and climate related
fragility of Sahel region
into resilience•Create world’s largest
solar zone with 10 GW
solar capacity by 2030

Slow
migrationandaddressfragility

Reducepoverty andimprovefoodsecurityCountry

Desert-to-Power Initiative projects approved
Project for the Development of Solar Power Plants and
Niger
Improvement of Access to Electricity (RANAA)
Yeleen Solar Plant Development and National Power
Burkina Faso
System Reinforcement Project

Developagriculture
and othereconomic
activities

Increase
genderinclusion
andemployment

Chad

Djermaya PV Project

Burkina Faso

Electrification and Power Connection Development
Project (PEDECEL)

Multinational

East Africa Regional Energy Program (EAREP)

Africa, the renewable energy powerhouse that will provide green solutions to combat climate change

15Africa’s challenges are a matter of global concern

Our over-arching goals

Demographic
 More than 232 million people are
hungry or malnourished (roughly 1 in 4)
 11% GDP loss in Africa is caused bymalnutrition
 34% of children under 5 are stunted

Economic Over $100 billion made in revenue
each year from chocolate…
…of which Africa just receives 2%
 60% of the world’s arable land not yet
put into production is in Africa

Environmental
Devastating storms
and floods afflicted
Southern Africa in2019 and expected
return of El Niño
could suppress
agricultural output andgrowth in East Africa

Promoteagriculturaldevelopment

Reducepoverty

Weathershocks costing
2% contraction
in GDPEnd hunger
andmalnutrition

Contributetoeliminating
extremepoverty

Our
role
Make
Africa a net
foodexporterMove Africa
towards the top ofexport-orientatedglobal value
chains
Unleashprosperity tolift millions
out ofpoverty

Improvefoodsecurity andnutrition

Development impact

Boosteconomic
growthfrom projects completed in 2022

•2.9 million people benefited from improvements in agriculture•1,682 km of feeder roads built or rehabilitated•11,100 hectares of land with improved water management

Transforming agriculture, the wealth of Africa, is central to growth, poverty eradication and food security

16

Transitioning from wheat importer to wheat exporter
Ethiopia becomes wheat self-sufficient in 2022
790% increase inirrigated wheat land

4t/ha

7

2.9t/ha65,000 ha
2022

8

2018

2022

2018

2022

5
4
3
2
1

Production

Consumption

2025

2023

2021

2019

2017

2015

2013

2011

2009

2007

2005

2003

2001

1999

1997

-1

1995

0
1993

2018

9

400,000 ha

1.6 million
MT

20,000 MT

38% increase in wheat
productivity

In million tons

790% increase in irrigatedwheat production

Ethiopia started exporting wheat from 2023

ImportAgriculture plays a central role in safeguarding Africa’s food supply and achieving SDG 2 by 2030
17

Approvals in 2022: USD 1.7 billion
Transform African agriculture into a globally competitive,
inclusive, business-oriented sector
Cote d’Ivoire- Agro-Industrial Pole Project in the North
Project cost: EUR 240 million / Bank financing: EUR 42 million
Year of Approval: 2021
The project will contribute to the transformation of the agroindustrial sector and help increase the country’s food and nutrition
security, reduce its dependence on food imports and increase
exports of agricultural products. The project aims at sustainably
increasing agricultural productivity in targeted value chains (rice,maize, mango, cashew nuts, animal and fisheries products).
Expected development outcomes:• Food security increased from 22% to 32%• 300 agricultural SMEs created• 90,000 households with access to basic services• 23,000 farmers beneficiaries• 13,000 hectares of agricultural land developed or rehabilitated• 1,200 km of rural roads rehabilitated• 70,000 jobs createdMultinational - Program to Build Resilience for Food and Nutrition
Security in the Horn of Africa
Project cost: USD 140 million / Bank financing : USD 122 million
Year of Approval: 2021
The program will contribute to food security by enabling participating countries
to increase agro-pastoral productivity and production systems in cross-borderareas, make agro-pastoral value chains more competitive, thereby ultimately
boosting trade and farmers’ income and building communities’ capacity toadapt to climate change.
Expected development outcomes:• 3 million beneficiaries• 30% increase in agricultural production• 30% increase in annual income per capita• 180,000 pastoralists & farmers to access innovative technologies• 6,000 hectares of irrigated land developed• 300,000 hectares of pasture rehabilitated• 35,000 jobs created18Strengthening regional ties and targeted policies canspur further industrial growth

Exporting raw commodities and importing manufactured goods
More than 60% of
exports arecommodities

Europe$6,600

Improve global
competitiveness

Latin America$2,500Africa
$700

16%

25%
56%

East Asia$3,40056% of imports are
manufactured
goods

44%
15%

15%
13%

EXP OR T S IMP OR T S

Industrial GDP per capita

Agriculture Products
Manufactured Goods

Our ambition is to help Africa moveto the top of the value chain Foster successful industrial policies
 Attract and channel funding into
infrastructure and industry projects
 Grow liquid and effective capital markets
 Support micro, small and medium
enterprises
 Promote strategic partnerships in Africa
 Develop efficient industry clusters acrossthe continent

16%

Fuels and Mining Products
OthersAlthough manufacturing
doubled over past
decade, 2/3 is producedin Algeria, South Africa,
Nigeria and Egypt

Africa’s global competitiveness is
improving

Growing,
youthful andaffordable
workforce of
500 million
peopleBurgeoning
middle class of
500 million
consumers, amarket worth$250 billion

Improvingbusiness
environment

40%
urbanization ratewith 20 largest
cities expected to
grow by 50% in
next 10 years

Leader inmobile money
enabling 49% of
population toaccess finance19

Processing locally to advance economic diversification
Development impact

Boostsproductivity

Adds
economicvalue

Creates
jobs

Improves
tradebalance

Additional
government
revenues

from projects completed in 2022

•833 km of roads constructed, rehabilitated, or maintained•4.1 million people benefited from investee projects•396,500 owner-operators and MSMEs got access to financial services

Cabo Verde- E-Governance and Public Administration Modernisation
Programme

Senegal - Accelerated Industrialization, Competitiveness and Employment
Support Programme
Project cost: EUR 242 million / Bank financing: EUR 96 million
Year of approval: 2021

The programme aims to improve digital efficiency for enhanced public service
provision, administration modernization, transparency and increased private
sector investment. It stems from the realization that furthering digital governanceis a response to the Covid-19 crisis. It is pursued through two complementary
objectives: furthering E-Governance and Digital Economy related reforms.

The project aims to support economic recovery, accelerated industrialization andjob creation by improving value chains competitiveness, productivity andadoption of hardware and organizational technologies, access to financing, andprivate sector development.

Expected development outcomes:• Improvement in the UN e-Government index rating from 0.56 to 0.6• Improvement in the UN e-Participation index rating from 0.42 to 0.5• Increase in ICT contribution to GDP from 2.9% to 3.2%
• 2 points increase on “Doing Business Score” (from 55 to 57)

Expected development outcomes:• 36,000 enterprises supported in their efforts to achieve digital transformation• EUR 90 million in loans granted to MSMEs• 725 MSMEs benefitting from grants• 50,000 jobs created

Project cost : EUR 53 million / AfDB financing: EUR 20 million
Year of approval: 2021

Shifting labor and capital resources to high productivity economic activities

20

Ushering in a new era for intra-Africa trade and economic cooperation
Low intra-Africa trade
Greater political will for integration

70%

51%
50%

22%

Infrastructure
connectivity

Trade andinvestment

Financialintegration

18%

Regional integration through the High 5s

Impediments to intra-regional tradePoor infrastructure
Non-tariff barriersHigh cross-border trade cost
Low visa openness

Energy markets
and transmission
lines

Grid regulatory
and technicalharmonization

Education,
training andcertificationSoft
infrastructure
establishment
Physicalinfrastructure
connectivity

Labor markets
creation

Agribusinessintegration

Trans-borderwater resource
management

2018 Africa Continental Free
Trade Area, a milestone
The world’s largest free trade area
 Signed by 54 countries (30ratifications) Promotion of freer, expanded
trade and reduction of other nontariff obstacles
 Regional trade to increase to 25%
in next decade GDP to increase by 4.5%
 Will boost ability to compete inglobal value chains

Establishment of ACFTA secretariat
by the AfDB for USD 4.8 million
21

Multinational - Horn of Africa Isiolo – Mandera corridor: El
Wak – Rhamu road upgrading project

Multinational - Pointe-Noire-Brazzaville-Bangui-Ndjamena
Multimodal Transport Corridor Development Project, Phase I

Project cost: EUR 192 million / Bank financing: EUR 65 million
Year of approval: 2021

Project cost: EUR 470 million / Bank financing: EUR 250 million
Year of approval: 2021

The project road traverses a marginalized, relatively
underdeveloped, arid area of Kenya with relatively high poverty rateand insecurity. The existing road is in poor condition resulting inlong travel time and high transport costs. The prevailing conditions
therefore present unattractive environment for doing business. The
development of this road will ease transport, promote trade,
alleviate poverty, and promote regional integration.

The project aims to contribute to the improvement of the inter-state roadand river transport system and the promotion of intra-regional trade inCentral Africa. It will also improve the quality of service offered by theroad and river transport logistics chain on the Pointe-Noire-BrazzavilleBangui-Ndjamena corridor, as well as the living conditions of the
inhabitants of the project area.

Expected development outcomes:• Travel time reduced by 1.5 hours• USD 30 million increase in Kenya’s trade value with Ethiopia
and Somalia• 142 km of road upgraded• 200 jobs created• 325 people trained

Expected development outcomes:• 670 additional vehicles/day passing through the road• 52 hours reduction in travel time of heavy goods vehicles• Reduction in waiting time at the Mongouba Port from 3 to 1 day• 639 km of roads asphalted and rehabilitated• 700 jobs created

Development impact

from projects completed in 2022

•2.9 million people gained access to better transport services•146 km of cross-border roads constructed or rehabilitated

Opening opportunities for trade and travel and encouraging greater foreign investments22Africa today

Successfully absorbing Africa's workforce holds the key tocreating Africa's demographic dividend…By 2030

 40% of Africans live below
the poverty line* 10 poorest countries in theworld will be African 72% of non-agricultural
work in the informal sector

 83% of world’s poor will bein Africa

 1/3 of youth unemployed 100 million youth withoutjobs

 10 million entering labormarket yearly Only 50% of new labor
entrants will find jobs

Africanpopulation toreach 2 billion
by 2050
Our strategy
72% of the population haveaccess to safe drinking water
40% of the population haveaccess to sanitation*on less than $2 per day

20% ofglobalpopulation

Largest andyoungest
workforce of
1 billion by
2030

Creating jobs and opportunities for the youth to
reduce pressure for irregular migration
Skilling-up youth in science and technology to takeadvantage of the 4th industrial revolution (4IR)
Improving access to water and sanitation
Strengthening health systems

The youth are Africa’s greatest assets

23

Nigeria - Family Homes Funds Project
Project cost: USD 204 million / Bank financing:
USD 60 million
Year of approval: 2021
The project aims to stimulate the provision ofsustainable and affordable mortgage financing toeligible lower to middle income households, anddeepen the housing finance system as well as boost
job creation in Nigeria. It aims to do so by catalyzing
the provision of long-term local currency mortgage
financing by primary mortgage lenders to eligible
households, through a risk sharing mechanism.
Expected development outcomes:•USD 405 million of additional mortgages
provided•15,905 mortgage loans extended to end
beneficiaries•40,000 jobs created•1,000 youth artisans trained

Development impact fromprojects completed in 2022

• 12.3 million people withnew or improved access towater and sanitation• 340,000 people trained, of
which 66% women• 60,000 people benefited
from better access to
education

Cameroon - Yaoundé City Sustainable Enhanced
Drainage and Sanitation Project
Project cost: EUR 36 million / Bank financing: EUR 32
millionYear of approval: 2021
The project aims to sustainably improve the storm waterdrainage, hygiene and health of the population of
Yaoundé, through the construction of 17km of flood
control basin, canals and a culvert. The project will also
help improve the resilience to water-related shocks,
increase inclusive employment and entrepreneurship.
Expected development outcomes:•Flooding frequency reduced from 3 to 1 per year
•2,550 jobs created•75 people trained•5 micro-enterprises trained in waste recovery,
hygiene and sanitation

Preparing for the future24Africa’s growth potential not fully utilized

AFAWA aims to unlock $5 billion by2026 to support women SMEs
Multinational - ETC group limited trade andagri-finance facility approved in 2021
AFAWA Technical Assistance Grant of
USD 2 million to support women farmers
and entrepreneurs in Tanzania, Mozambiqueand Zambia to increase their businesscapacities along agriculture value chains andimprove access to finance.
AFAWA risk-sharing mechanism$126 million AFAWA Guarantee for Growth(G4G) to be on-lent to 788 women
entrepreneurs and enhance financial
institutions’ appetite in lending up to $3 billion
to women-owned businesses
Women Entrepreneurship Enablers Programo Enhanced capacity for 10 women businessassociations
o 16,000 women impacted from 26 countries$42 billion
financing gap
for women

20% women
have access toformal longterm financing

30% of SMEs
owned by
womenBank Group Gender Strategy 2021– 2025
Empowering women through access to financeand markets

15% ofagriculture
landowners are
women

15% of young
women areunemployed

Systematizing gendermainstreaming in Bank operations.

Accelerating employability and job creation
for women through skills enhancement

GenderMarker
SystemIncreasing women’s access to social services
through infrastructure

Approvals in 2022
USD 1 billion to be lent to women-owned SMEs across 27 countries
USD 20 million to enhance financial and business managerial skills

100% of sovereign
operations
screened throughthe GMS in 2022

25

Financial Profile of
African Development Bank

26

SDR FX rate

Loans

26,274 27,409 30,024 28,135 27,542 28,260

Investments

14,574 14,274 12,712 13,707 15,588 17,129

1.44

Cash

2,870

1,186

1.41

Borrowings

33,365 35,216 36,137 35,151 32,278 31,399

1.38

Equity9,994

10,197 11,221 12,185 13,152 13,798

Paid-in Capital *

6,090

6,329

7,105

7,774

8,267

8,708

Reserves

3,903

3,868

4,116

4,410

4,885

5,089

Income before distributions

173

174

286

135

318

231

Subscribed Capital

90,551 91,469 145,246 207,801 197,987 197,389

1.35
1.32
1.29

Sep-23Jun-23Mar-23

Dec-22

Sep-22Jun-22Mar-22

Dec-21

Sep-21

Jun-21

1.26
Mar-21

3,767

Dec-204,623

Sep-203,359

Jun-202,949

Mar-2046,968 48,736 50,912 50,840 50,866 50,997

Dec-19Assets2022

Sep-192021

Jun-192020

Mar-192018

Dec-182019

June
2023**(in USD million)* Net of Cumulative Exchange Adjustment on Subscriptions** Unaudited figures
Note: Reporting currency is Special Drawing Rights (SDR) of the IMF. Data converted to USD at period-end exchange rates
SDRUSD: 1.39079 (2018); 1.38283 (2019); 1.44027 (2020); 1.39958 (2021); 1,33084 (2022); 1.33007 (June 2023)
27

AAA/Aaa/AAA/AAA
Stable outlook

Preferred
creditor status

Extraordinary
shareholder
supportAttractive and sustainableloan pricing for clients

Prudent
financial & risk
management
policies

Strongcapitalization

Strongliquidity

Exceptional access tofunds, even in times ofmarket distress28

Mitigated Foreign
Exchange risk
Currency compositionof net assets alignedwith SDR basket*

Prudent liquidity management
One-year liquidity available tocover net cash-flow requirements

Use of derivatives tohedge interest rate andforeign exchange risk

Prudent framework ofapproved counterparties
and exposure limits

Borrowings, investments
and lending in multiple
currencies while mitigating
foreign exchange risk

* Composed of USD, EUR, JPY, GBP, RMB

Credit policy guiding
our lending activities

Minimized counterparty
credit risk
Minimum credit rating fortreasury investments (A) and
derivative counterparties (A-)

29

(in USD million)

Portfolio credit profile

Outstanding Loans
30,024
25,113

18,105
17,61917,832

26,27427,40928,135 27,542

28,2874.15 (B)
4.0 (B)11%

3.44 (BB-)
3.22 (BB)20,29589%20132013 2014 2015 2016 2017 2018 2019 2020 2021 2022 June
2023
Sovereign loans

Non-sovereign loans

2014

Sovereign

2015

2016

2017

Non-sovereign

2018

2019

2020

2021

2022 Jun-23

Combined portfolio

Prudential limit

Weighted Average Risk Rating (WARR) within
the Bank’s target range of 3 (BB) and 4 (B)Extending lending while maintaining and sustaining risk profile in line with Bank’s risk appetite
30

Putting the balance sheet to work for Africa
AssetsIn USD million
28,46029,77742,87430,43343,71844,63246,094

46,46546,897

Leverage = Debt/Usable Capital

46,57537,203Usable capital = Σ (Paid-in capital, Reserves, Callable
capital of non-borrowing countries rated A- and above)
2013

2014

2015

2016

2017

2018

2019

Cash and Investments

33,00533,3652021

2022

June 2023

Loans

Borrowings

In USD million

2020

35,216100%
36,13735,151

32,27831,39973%

27,753
19,93920,82822,794

48%

2013

2014

2015

2016

2017

2018

2019

EquityIn USD million
8,980

8,809

8,980

8,880

2013

2014

2015

2016

10,101

9,994

10,197

2017

2018

2019

2020

11,221

2020

2021

2022

June 2023

12,185

13,152

13,798

52%

58%

81%

83%

84%
56%
43%

41%

39%

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 June
2023
Prudential limit
Leverage ratio

2021

2022

June 2023

31

Bank’s Risk Capital Utilization
12,592*(In USD million)
5,851

4,196

553

1,196

451

474

6,741

85
-217

6,741

Available risk
Capital**
(46%)
Risk
capitalutilized(54%)

Risk capital =Paid-in capital + Reserves + Adjustments

Risk capital utilization rate = Σ [[ Exposure] *[Risk capital charge]]/Total risk capital(As of 30 June 2023)*Total risk capital after adjustments made for valuations of equity investments and borrowings** Inflows from last General Capital Increase(GCI-7) will bring in more risk capital and create ample
room to enable the Bank to deliver on its mandate
Note: Diversification benefit stems from correlation between risks
32Balance Sheet Optimization

2018

2015
AfDB
Loan
Portfolio
Sovereign
MDB
Exposure
Exchange

R2R
Sovereign$2 billion

2015

NonSovereign
PrivateSectorFacility

R2R $500
million Credit
Insurance

AFAWA
Guarantee for
Growth RPA

Lusophone
Compact
Guarantee

First MDB
exposureexchange on
its sovereign
portfolio withWorld Bankand IADBFirst MDB tocreate a Private
Sector Credit
Enhancement
Facility to sharerisk on NSO in
Low-Income
Countries

2018
Bank entered into
first MDB
portfolio credit
insurance deal on
non-sovereign
financial sector
portfolio with ATIFirst MDB
synthetic
securitization on
non-sovereign
loan portfoliowith Marinerand Africa50

2020
2019
First credit
insurance deal
on a sovereign
PCG
transaction
with private
insurers

Approval of
BSO governing
policy2 approved
guarantees
with capital
benefitembedded atorigination

2021
New credit
insurance
approved on
Bank’s largest
private sector
loan

R2R $1 billion
Synthetic
Securitization
Rebuilding safetymargins on key
rating agency ratios

Improving the Bank’s
risk profile andreducing capitalconsumption

Creating additional
headroom to provide
more development
lending

Managing portfolio risk profile and exposure limits

More efficient use ofshareholder resources

33

Enhanced Private
Sector Assistancefor Africa (EPSA)$4 billion

EU- External
Investment Plan
EUR 835 million

Africa Growing
Together Fund(AGTF)$2 billion

Korea-Africa
Energy Investment
Framework MOU$600 million

Nigeria TrustFund (NTF)$61 million

Islamic
Development Bank(IsDB) MOU$2 billion

Fund for African
Private Sector
Assistance (FAPA)$115 million

Agence Française deDéveloppement (AFD)
EUR 2 billion cofinancing agreement

Agri-SMEs Catalytic
Financing Mechanism(ACFM)CAD 100 million

34

(in USD million)

1,164

1,263

234

2013

688

287

2014

655

190

2015

706

273

2016

984

925

932
718

Net Income Distributions for 2013 - 2022

Key Development
Initiatives

668

311

2017

Allocable Income

214

173

2018

2019

228

293
112

2020

2021

Reserves

AfricanDevelopment
Fund

DRC– post
conflictassistanceSpecialReliefFund$434 million$71 million

Middle Income
Country
Technical
Assistance Fund

2022

Operational Income

Operational income: Loan income and investment income(including related derivatives).

$1.2 billion$538 million$47 million

Note: The 2022 distribution is proposed, subject to approval, at the Annual Meetings. Special
Relief Fund is used to mobilize funds, on a grant basis, for regional countries affected by natural
disasters that constitute a threat to human health and agriculture.

Allocable income: The Bank uses allocable income for making
distributions out of its net income. Reserves have first claim on
operational income.
35

Conservative portfolio to meet investment objectives#1 Capitalpreservation$10.2 billion$17.1 billion oftreasury
investments#2 Liquidity#3 Return

Asset-backed
securities
0.02%

Corporate
bonds
0.7%
Supras,Sovereigns,
Agencies
79%

Held at amortized cost
 Stabilize net interest margin
60%

Multi-currency portfolio

Very high quality portfolio
51%
34%

21%

Trading* Short- and medium-term cash flow needs$6.9 billion

Covered
bonds
13%

Time
deposits
8%

8%

15%
5%

5%

1% 0.04%
AAA

AA+ to AA-

A+ andbelow*Excluding cash and derivatives(as of 30 June 2023)

36

Capital MarketsActivities

37

A diversified funding profile in multiple markets and currencies across the world
Approved borrowing program(in USD billion)

9.9

10.4

9.8

10.0

8.0
6.0

6.2

7.4

3.9

Outstanding
borrowings of
USD
31.4 billion(As of 30 June 2023)*59% executed as of October 2023

Maintaining astrong trackrecord in
issuing liquid
globalbenchmarks

Deepening
and widening
our investor
base globally

Catering to theneeds of ESG
investors

Promoting thedevelopmentof African
capitalmarkets

Attracting competitive funding levels for the benefit of the continent

Best supranationalborrower38

June 2022

USD 1 billion
3.375%
Global Benchmark
due July 2025
UST + 15.5 bps
MS + 25 bps

October 2022

USD 2 billion
4.375%
Global Benchmark
due November 2027
UST + 27.31 bps
MS + 50 bps

March 2023

USD 2 billion
4.375%
Global Benchmark
due March 2028
UST +14.3 bps
MS +33 bps

•
•
•
•
•

Strong fundamentals and AAA ratingHigh quality order books
High quality of execution
Good secondary market performance
Strong developmental mandate…deepening and widening the Bank’s investor base49%

Central Banks &Official Institutions
45%

29%
12%

6%

Asset Managers
16%

3%Bank Treasuries
39%39

March 2022

EUR 7 billion in outstanding benchmarks

September 2022

(In EUR million)

EUR 1.25 billion
0.50%
Global Benchmark
due March 2027

EUR 1.25 billion
2.25%
Social Benchmark
due September 2029

Bund +63.1 bps
OAT +39 bps
Midswaps –11 bps

Bund +96.4 bps
OAT + 58.9 bps
Midswaps –3 bps

Best supranational
bond

1,250

1,150

SOCIALBOND

SOCIAL
BOND

1,250

1,250
1,000

SOCIAL
BOND

750

500

January November October
2024
2024
2026

Best social bond

March
2027

May
2028

March September
2029
2029

Diversifying its investor base…

Americas7%Europe
75%
MENA
1%

Asia
17%

Central Banks &Official Institutions
41%

Asset
Managers
34%

Bank Treasuries
25%

40

October 2021

January 2022

July 2023

GBP 600 million
0.5%
due June 2026

GBP 500 million
0.875%
due December
2024

GBP 600 million
1.125%
due June 2025

GBP 300 million
5.5%
Social Benchmark
due August 2025

UKT +27 bps

UKT +28 bps

June 2021

August 2021

UKT + 35 bps
UKT + 65 bps

Attracting new investors…
Asset Managers
25%

UK
63%

Americas5%MiddleEurope East 3%
10%

Asia
19%

Central Banks &Official Institutions
32%
Bank Treasuries
43%

41

1,135

Close to AUD 5 billion in outstanding Kangaroos

795

SOCIAL
BOND

600(In AUD million)
625

565

430

140

GREEN
BOND

SOCIAL
BOND

GREEN
BOND

140

155

150

50
Mar
2024

Jan
2025

Jun
2026

Dec
2026

Jul
2027

Sep
2027

Aug
2028

Dec
2031

Oct
2032

Mar
2033

100
Aug
2033

February 2023

February 2023

AUD 50 million
10-year “Light up
and Power Africa”
Theme Kangaroo
due March 2033

AUD 150 million
15-year Green
Kangaroo due
March 2038
BBSW+60bps

BBSW+43bps

Mar
2038

Selected private placements issued in 2023

MXN
200 million

BWP-linked
USD 10
million

KES
1.235 billion

TZS-linked
USD 10
millionUGX
15 billion

CNY
1 billion

VND
350 billion$1.5 billion of Private
Placements and
Uridashi issued in
2022, representing
23% of borrowings

42More than $3 billion raised through 15 green bond transactions since 2013
2022
SEK 1.5 billion
5-year Green
Bond dueFebruary 2027

2022
ZAR 200 million
1-year Green
Bond due
September 2023

2023
SEK 1.5 billion
5-year Green
Bond due
January 2028

2023
AUD 150
million 15-year
Green Bond
due March 2038





2023
NOK 2 billion
5-year Green
Bond due
March 2028






Inaugural
Green Bond in
NOK market

Greenfield renewable energy
Vehicle energy efficiency
Demand-side brownfield andgreenfield energy efficiency
Biosphere conservation projects
Water supply and access
Solid waste management
Urban development

Best SEK bond
Dedicated ESG investors
Affirmative IM, Alliance Bernstein, Amundi, AP2, AP3, AP4, AP7, APG, Blackrock, Brown
Advisory, California State Teachers Retirement System, Calvert IM, City of Chicago,
Kommunalbanken, Nordea IM, PGGM, Pictet AM, Praxis Impact Fund, SEB AM, Sony
Bank, Storebrand, Syntrus Achmea, Taiju Life, TIAA-CREF, Trillium AM, Zurich Insurance

AfDB green bonds contributing to 43 million tons of CO₂ emission
reduction (as of 30 June 2023)
Country
Cameroon
MoroccoRwandaSelected Green projects
Cameroon and Chad Power Interconnection Project
Inclusive and Sustainable Development Project for
Agricultural and Rural Areas
Muvumba Multipurpose Water Resources Development
ProgramSouth Africa

Redstone 100MW Concentrated Solar Power Project

Tanzania

Malagarasi Hydropower ProjectA credible and transparent Green Bond framework to financeclimate change mitigation and adaptation projects

43

Close to $8 billion raised through 11 social bonds transactions since 20172021
NOK 1 billion
5-year Social
Bond dueApril 2026

2021
AUD 600 million
5-year Social
Kangaroo due
December 2026

2021
SEK 2 billion
5-year Social
Bond due
September 2026

2022
AUD 155 million
10-year Social
Kangaroo due
October 2032

2022
EUR 1.25 billion
7-year Social
Benchmark due
September 2029

2023
GBP 300 million
BenchmarkSocial Bond due
Aug 2025

Inaugural
Social Bond on
NOK market

Inaugural
Social Bond on
AUD market

Inaugural
Social Bond on
SEK market

Best Kangaroo
bondBest Social
bondInaugural
Social Bond on
GBP market

Concrete actions to alleviate poverty
 Water supply and sanitation
 Agriculture and food security
 Job creation
 Education and vocational
training Electricity distribution
 Information and communication
technology
 Healthcare GenderCountry

Selected Social projects

Nigeria

Nigeria Transmission Expansion Project – Phase I

Namibia

Water Sector Support Program

Equatorial
GuineaSupport Project for the Development of Value
Chains in the Fisheries and Aquaculture Sector

Cote d’Ivoire

Government Social Program Support Project

RwandaRwanda Innovation Fund
44

社会的責任投資
Private Placements
and Uridashi issued
to satisfy specificinvestor demand

HKD 200 million due
March 2024
“Light up and Power
Africa”

Attractive funding levels
to mitigate overall costof funds

Theme bonds tomeet ESG investors'
appetite in JapanZAR 2 billion due
February 2038
“Feed Africa”

NZD 26 million due
September 2031
“Industrialize Africa”

Partnership topromote ESG
investments

BRL 70 million due
November 2025
“Integrate Africa”

MXN 5.75 billion due
February 2053
“Improve the Qualityof Life for the Peopleof Africa”$562 million issued under the High 5s in 2022
45

Expanding the Bank’s African lending currencies
RWF – Rwandan Franc

AFRICANFINANCIAL
MARKETSINITIATIVE

Grow liquid and effective capital markets

ZMW – Zambian kwacha
NGN – Nigerian naira
UGX – Ugandan shilling

African Financial Markets
Initiative contributing to local debt
markets’ growth

Improving access tomarket finance for African
enterprises

ZAR – South African rand
BWP – Botswanan pula
XOF – CFA franc BCEAO

Bloomberg®
AfricanDomestic
Bond Index

AfricanDomestic
Bond Fund

African Financial
Markets
Database

Composed of
local currency
government bonds ofSouth Africa, Egypt,
Nigeria, Kenya,
Namibia, Botswana,
Ghana and Zambia

Exchange
Traded Fundinvesting in
African local
currency bondmarkets

Leading sourceof information
on African bondmarkets covering
43 countries

XAF – CFA franc BEAC

Advisegovernments,
stock exchanges
and regulators
on developmentof liquid capital
markets

Invest directly incapital markets
to increaseliquidity

EGP – Egyptian pound
KES – Kenyan shilling
TZS – Tanzanian shilling
GHS – Ghanaian cedi

Approved local issuance programs
ZMW 160 million MTN program
NGN 160 billion MTN program
UGX 125 billion MTN program
BWP 5 billion MTN program
ZAR 20 billion inward listing program

Offering African currencies for sustainable private sector development

46

Appendix47

Year ended 31 December
Cash
Demand Obligations
Treasury Investments
Derivative Assets
Non-Negotiable Instruments on Account of Capital
Accounts Receivable
Outstanding Loans
Hedged Loans – Fair Value Adjustment
Accumulated provision for loan losses
Equity Participations
Other Securities
Other Assets
Total Assets
Liabilities, Capital and Reserves2022
2,830.74
1.14
11,712.63
924.35
1,323.22
20,695.33(394.44)(732.26)
1,043.84
84.41
38,221.222021
3,303.14
1.14
9,793.90
825.94
1,178.23
20,102.39
48.52(559.57)
983.2088.75
36,325.22

2020
2,332.19
3.82
8,825.82
1,544.55
590.77
21,343.23
163.78(497.41)937.27104.6735,348.69

2019
2,132.92
3.80
10,322.50
1,071.40
676.3019,821.19
115.86(454.94)
1,001.32
98.77
35,244.06

2018
2,063.74
3.80
10,478.80
655.430.02
680.37
18,891.53
53.42(391.95)
848.7094.77
33,770.59

Accounts Payable
Derivative Liabilities
Borrowings

1,230.97
2,624.88
24,254.21

1,105.92
949.0025,115.71

1,544.26
923.7225,090.10

1,760.08
643.1525,466.87

1,550.66
1,044.29
23,989.86

Capital Subscriptions Paid
Cumulative exchange adjustment on subscriptions
Reserves
Total Liabilities, Capital and Reserves

6,366.24(154.17)3,670.66
38,221.22

5,710.57(155.84)
3,151.19
36,325.22

5,081.21(148.21)2,857.61
35,348.69

4,725.17(148.45)2,797.24
35,244.06

4,535.26(156.14)2,806.65
33,770.59

1 UA = 1 SDR ; 1.39079 (2018) ; 1.38283 (2019) ; 1.44027 (2020) ; 1.39958 (2021); 1.33084 (2022)

48

Year ended 31 December

2022

2021

2020

2019

2018

Operational Income and Expenses
Income from Loans and related derivatives
521.24348.24460.62650.20596.89
Income from Investments and related derivatives
218.16129.34181.44263.20240.07
Income from Other Securities
6.89
5.53
2.90
0.04
Total income from Loans and Investments
760.80506.97660.21920.50847.57
Interest and amortized issuance costs(418.13)(393.78)(501.12)(524.06)(489.95)
Net interest on borrowing-related derivatives
64.14
322.73248.1847.95
56.88
Unrealized gains/(losses) on borrowings, related derivatives and others
88.90(111.21)
63.17(7.15)(35.14)
Provision for Impairment on Loan Principal and Charges Receivable(97.02)(24.97)(59.86)(112.88)(76.84)
Provision for Impairment on Equity Investments
1.53(0.26)(1.71)
0.40
0.39
Provision for Impairment on Investments
0.03(0.07)(0.04)
0.02(0.04)
Translation Gains/(Losses)
66.46(1.48)(23.18)
8.13
6.41
Other Income
13.99
13.43
8.60
9.50
6.90
Net Operational Income
481.57311.21394.52341.56316.53Administrative Expenses(207.16)(174.55)(158.41)(179.34)(165.71)
Depreciation – Property, Equipment and Intangible Assets(29.09)(32.75)(33.16)(27.62)(17.93)Sundry (Expenses)/Income(6.04)(7.36)(4.55)(8.43)(8.21)
Total Other Expenses(242.30)(214.66)(196.12)(215.39)(191.85)
Income before Distributions Approved by the Board of Governors
239.2896.55
198.40126.17124.68Distributions of Income Approved by the Board of Governors(64.00)(55.00)(59.00)(74.00)(83.00)
1 UA = 1 SDR = 1.44881 (2014) ; 1.38573 (2015); 1.34433 (2016); 1.42413139.40(2017) ; 1.39079(2018)Net Income for the Year
175.28
41.55
52.17
41.68
1 UA = 1 SDR ; 1.39079 (2018) ; 1.38283 (2019) ; 1.44027 (2020) ; 1.39958 (2021); 1.33084 (2022)

49

Sustainable Bond
Framework
50

The Bank’s new Sustainable Bond Framework

Alignment to best market practice●

Explicit alignment of project
categories with the UN SDGs●

Highlighted examples of projects
and target populations where
relevant●

Additional detail on project subcategories●

Expanded impact reporting
metrics●

Detailed Exclusionary Criteria

●
●
●
●
●
●
●
●
●

Established in September 2023
Collates and streamlines the existing Green Bond Framework (2013) and Social
Bond Framework (2017) allowing for increased flexibility in proceed allocation
Aligned with ICMA Green Bond Principles (2021), Social Bond Principles (2023)
and Sustainable Bond Guidelines (2021)
Best market practice: aligned to the 4 pillars of ICMA Principles (use of proceeds,
process for project evaluation and selection, management of proceeds, reporting)
Second Party Opinion from Moody’s Investors Services: Sustainable Quality
Score 2 [very good]
Extensive impact reporting published in the Bank’s annual Sustainable Bond
newsletter
External assurance conducted annually on sustainable bonds allocation toeligible green and/or social projects
Possibility to issue green bonds, social bonds and sustainable bonds under the
new framework
New framework may be used for both Senior Unsecured and Hybrid Capital
Sustainable Bonds

The Bank continues to look for ways to advance the market andincrease the impact of sustainable issuances

51

Use of Proceeds

Process for ProjectEvaluation and Selection

Management of Proceeds

ReportingExternal Assurance•Only ADB financed
projects•An amount equal to
Sustainable Bonds net
proceeds will be used tofinance eligible
green/social projects•Eligibility criteria for Green
Bond portfolio linked toclimate finance tracking
methodology•Operations identify andcategorize all projects,
screening those withstrong environmental
and/or social outcomes
and impacts•Final selection of Eligible
Green/Social Projects
agreed jointly by
operations and Treasury
Department•Monitoring Sustainable
Portfolio•Portfolio approach•An amount equal to
Sustainable Bonds net
proceeds allocated to the
Sustainable projects within
36 months•Semi-annual allocation
tracked through an
attested formal internal
process that assures thelink of net proceeds toeligible sustainableprojects•So long as Sustainable
Bonds are not fully
allocated, net proceeds
kept in liquidity treasury
portfolio and invested
under same conservative
investment guidelines•Dedicated Sustainable
Bond webpage•Annual Sustainable Bond
newsletter•Annual impact reportingon environmental andsocial benefits of the
Eligible Green/Social
Projects•Development impact
metrics per project
category•Aggregate impact
reporting with key impact
metrics for the Sustainable
Portfolio•Disclosure on
disbursements andallocation of proceeds togreen/social projects•Second Party Opinion from
Moody’s Investor Service
confirmed alignment of
Sustainable Bondframework with Bank’s
sustainability objectives
and key features of ICMA
Green and Social Bond
Principles, andSustainability Bond
Guidelines•Independent external
reviewer to verify annually
the allocation of
Sustainable Bond net
proceeds to eligible
Green/Social projects…Aligned to ICMA Principles

52

Financing social projects with strong social outcomes and impacts leading to significant poverty
reduction and job creation, and green projects focusing on climate change mitigation and adaptation

Eligible social
project
categories

Eligible green
project
categories

•
•
•
•
•

Affordable Basic Infrastructure
Access to essential services
Food security and sustainable food systems
Employment generation and programs designed to prevent and/or alleviate unemployment
stemming from socioeconomic crisis, including through SME financing and Microfinance
Socioeconomic advancement and empowerment

•
•
•
•
•

Renewable energy
Sustainable mobility
Energy efficiency
Environmentally sustainable management of living natural resources and land use
Sustainable water and wastewater management

Over USD 10 billion in green and social bonds issued over past decade53Mitigation projects
Leading to significant GHG emission
reduction over the lifetime of the
project

Eligible projects for the
Sustainable portfolio

Only projects whose
financing can be qualified infull as promoting either lowcarbon or climate-resilient
development will beconsidered for the Bank’s
Sustainable Bond portfolio

Adaptation projects
Reducing vulnerability of human or
natural systems to climate change by
maintaining or increasing adaptive
capacity and resilience54

ALL BANK PROJECTS

Joint Multilateral Bank’s Climate andDevelopment
Green Growth
Bank (MDB)
Strategy
Report on
permeates design
Adaptation/of all projects
Mitigation FinanceBank’s
Methodology for
Tracking Climate
Adaptation and
Mitigation
Finance

SCREENING AND SELECTION OF PROJECTSACCORDING TO AFDB CLIMATE FINANCE
TRACKING METHODOLOGYAPPLICATION OF AFDB SUSTAINABLE
BOND FRAMEWORKSUSTAINABLE
BOND PROCEEDSELIGIBLE GREEN
PROJECTS
USD
SEMI-ANNUAL
ALLOCATIONEUR ZAR55

3 large hydro projects in AfDB green bond portfolio
representing 3 % of the portfolio (as of 30 June 2023)

Full Environmental and Social Impact Analysis (ESIA)
required if any criteria here below are met
Country

Power generation
plants withcapacity of morethan 30 MW

Dam projects
involving constructionof a reservoir of 1,000
ha or more affecting
land used by local
populations

Power transmission
lines of more than
110 kV crossing
highly populated,
forested or cultivated
areas

AfDB Green Bonds can only finance large hydro projects if net
emission reductions can be demonstrated (i.e. emission
reductions from replacing fossil fuel minus emissions generated
from creating the reservoir)

Large hydro project

Annual GHG
Power generation
emission reduction
capacity (in MW)(in CO2 tons)

Uganda Achwa II Hydropower Plant

42 MW

85,000Uganda Bujagali Energy Limited 2

250 MW

880,000

Zambia Itezhi-Tezhi Power Project

120 MW

360,000

Itezhi-Tezhi Power Project in Zambia
 Electricity generation of clean hydro power will save an estimated 360,000
tons of CO₂ emissions per year As a category 1 project, full ESIA conducted A positive environmental externality of $39 million minimum expected tobe created For the 400 people affected by the project, full Resettlement Action Plan
prepared and implemented in accordance with Bank’s policy on
involuntary resettlement including supporting the vulnerable to relocate
 A budgetary allocation provided by Zambia Energy Utility Company(ZESCO) to ensure fair and timely compensation of project-affected
persons56

Dedicated Sustainable Bond webpage
 Sustainable Bond framework
 Moody’s Second Party Opinion
 Eligible green/social projects
 Sustainable bond newsletters Sustainable Bond transactions
 Ten-Year Strategy
 Environmental policy Energy policy Integrated Safeguards System
 Joint-MDB report on climate
finance Climate finance tracking
methodology
 Annual Development
Effectiveness Review
 New Deal on Energy for Africa
 African Economic Outlook

Annual Sustainable Bond newsletter
Impact reporting: Renewable energy capacity constructed or rehabilitated Annual energy savings and production
 Annual GHG emission reduced or avoided
 Number of beneficiaries
 Number of jobs created Other specific indicators to project category

The ADER report is produced
annually and monitors all AfDB
public and private sector
projects, shows details on
Africa’s progress against its
development goals and assesses
the contribution made by the
Bank to Africa’s development

57

141.2 million
Beneficiaries*

4%
Decrease inpoverty

462,342
Jobs created

6% Decrease in
unemployment
rate

304,530
People trained
Note: Impact reporting is
calculated according to AfDB shareof financing in the eligible social
projects.

2.3 million
People with better
access to water andsanitation

12% Increase inaccess to watersupply26% Increase inaccess to sanitation
services

12% Decreasein waterborne
diseases

22/1,000
Decrease inmaternal mortality
rate

16,245 hectares
Arable land irrigatedor developed forfarming

1.5 million tons
Increase in annual
farm production$2.5 billion
Increase inagricultural and/or
commodity exports

2,757 MSMEs
supported withaccess to financing(As of 30 June 2022)$1,524 Increase inannual income perbeneficiary**

13% Increase ininternet service
penetration

6%
Increase in foodsecurity

7/1,000
Decrease in infantmortality rate

1.6 million People
with better accessto electricity

10%
Increase in accessto electricity

The impact reporting is based on
ex-ante estimates at the time of
project appraisal, therefore there
is no guarantee that these results
will ultimately materialize. The
impact reporting doesn’t provide
actual results achieved in a specificyear or reporting period.
* Based on the UN Statistics
Division and the AfDB Statistics
Department, the average Africanhousehold size was 4.69 in 2019** Only in specific social projects
that have income generation as an
impact metric.

58

43 MtCO2e GHG
emissions reduced or
avoided annually

1,246 MW
Renewable energy
capacity constructed or
rehabilitated

1,560,327 MWh
Energy produced
annually

755,318 MWh
Energy savings
annually

Note: Impact reporting is
calculated according to AfDB shareof financing in the eligible green
projects.
515 million m3
Water saved/treated46,824 hectares
Degraded forest
rehabilitated(As of 30 June 2022)

106 million m3
Water savings annually

435,773
Trees planted

111 million m3
Wastewater treated,reused, or avoided
annually

14.4 million
Beneficiaries*

90,065 hectares
Irrigated land

2.7 million
Jobs created

The impact reporting is based on
ex-ante estimates at the time of
project appraisal, therefore there
is no guarantee that these results
will ultimately materialize. The
impact reporting doesn’t provide
actual results achieved in a specificyear or reporting period.
* Based on the UN Statistics
Division and the AfDB Statistics
Department, the average Africanhousehold size was 4.69 in 201959

COTE D’IVOIRE – Project to Strengthen the Structures of theElectricity System and Access to Electricity Phase I

MOROCCO – Support Programme for Competitive andResilient Development of Cereal Farming

Project cost: EUR 156 million / Bank financing: EUR 63 million
Year of approval: 2020

Project cost: EUR 199 million / Bank financing: EUR 199 million
Year of approval: 2022

The project’s development goal is to strengthen and develop the Ivorian
power system facilities to meet the ever-increasing demand for energy. The
project will help to extend the medium voltage networks to electrify 1,388
rural localities and secure 11 power transmission substations to ensure
continuous power supply for the population.

The programme objective is to enhance food and nutrition security by
improving the productivity and resilience of national cereal production toguarantee food security in the short term and reduce the country's
dependence on cereal imports.

The availability of a reliable and affordable electricity supply will help
improve delivery of social services (health, water supply and education) andthe development of SMEs, while also creating direct and indirect
employment. Moreover, it will increase efficient energy production in terms of
CO2 emissions due to the efficient combined cycle technology as well as
potentially allow for increased electricity exports in the sub-region.

The programme’s expected outcomes are to improve the technical andeconomic performance of the sector and to build resilience bystrengthening the governance of the sector, supporting the stakeholders,and adapting to climate change.

Expected development results

Expected development results• 796,865 beneficiaries•

980,000 cereal farmers

•
•
•
•

•
•

1.6 Qt/ha increase of average cereal yield in rain-fed farming
0.2 million tons decrease of annual quantity of imported softwheat
0.5 million tons increase in local cereal production

1,388 new localities connected to the network
25,000 public lighting units installed
6,460 km MV and 3,419 km LV lines installed
1,394 MV/LV substations installed• USD 469 increase in income per capita• 915 jobs created• 36 people trained•••

EUR 90/ha increase in turnover generated by cereal farms
EUR 900 million increase in public resources allocated tosupport drought-stricken farmers

60

TANZANIA – Malagarasi Hydropower Project
Project cost: USD 144 million / Bank financing: USD 120 million
Year of approval: 2020
The project aims to improve power supply in western Tanzania, the 49.5 MW
grid-connected hydropower plant (with an average annual energy production
capacity of 181 GWh) will mainly serve the local demand in Kigoma andsurrounding regions comprising households and social services amenities(namely education, health and water supply facilities) including SMEs.
The hydropower plant will provide a clean, reliable and affordable source ofenergy to foster economic growth and industrialization, human development
and social transformation, as well as improving the environment for private
sector development in the Kigoma Region. Besides improving the reliability
and quality of service, the project will also increase the use of renewables inthe electricity generation mix thereby contributing to abatement of GHG
emissions.

Expected development results••••

4,250 new last-mile connections
50 MWh renewable energy capacity constructed
25% increase in electricity supply
Electrification rate in Tanzania increased from 22.6% to 27.6%• 86,400 tCO2e annual GHG emissions reduced• 500,000 trees planted• 850 jobs created

RWANDA – Muvumba Multipurpose Water Resources
Development Program
Project cost: EUR 124 million / Bank financing: EUR 122 million
Year of approval: 2020
The program entails the construction of a dam for multipurpose water usage.
The objective of the program is to improve water, energy, food and nutrition
security by harnessing water resources for irrigation, domestic, livestock use
and hydropower generation, while ensuring sustainability of the resources
and building resilience against climate change through catchment protection,
forest management and capacity development.
The program will contribute to irrigation development for the project area,
estimated at 8,500-9,500 hectares, and provision of a municipal watersupply, estimated at 24,000 m3/day for 300,000 people, in addition to
livestock use.

Expected development results• 560,000 beneficiaries• 10% decrease in people living below poverty line
• 54 million m3 of water storage• 6,939 MWh of hydropower generated annually• Water supply estimated at 24,000 m3/day for 300,000
people• 8,500-9,500 hectares of irrigated land
• 67,000 jobs created61African EconomicOutlook

62

Africa’s growth expected to surpass world average

Private consumption and investments remain the key drivers ofgrowth on the demand side

Percent

8

Real GDP Growth, 2019-23
4.2
4.0
2.7
1.7
0.3

4
0

-3

2021

2022(e)2023(p)AfricaEuropeAn improving macroeconomic environment
Deficit-to-GDP ratio remains elevated at
67% in 2022 and is expected to stabilize
around 65% in 2023 and 2024
Fiscal deficit projected to narrow•

Improved revenue performance,
especially in oil-exporting countries
FX depreciation in most countries,
driven by monetary policy
tightening, in the US in particular

Inflation rate increased from
12.9% in 2021 to 13.8% in 2022
Inflation projected to ease in medium
term• Inflation projected at 13.5% in 2023
and 8.8% in 2024
• Expected monetary policy tightening
and improvement in domestic foodsupply conditions explain this trend

3.4

3

-8
2020

4.8
3.8

0

World
Asia
Latin America and the Caribbean

•

6

-4

2019

Demand-side decomposition of GDP growth (2017-23)

Percent

3.8

2.9

4.0

-1.7
-6

2017

2018

2019

Nets exports of goods and non-factor services
Household consumption expenditure
Real GDP growth

2020

2021

2022(e)2023

Gross capital formation
Government consumption expenditure• Private consumption accounted for thelargest share of GDP growth with 60%
in 2022 and investments with 24%• On the supply side, services sector
contributed for 48% of GDP growth63Real GDP growth by region (2014-2023)

Top 10 fastest-growing African economies in 2022

Percent
4.4

20

10

0

-10

4.1
2.3
4.3

3.3
1.6
3.6

3.5
0.5
3.0

5.4

3.6
2.5
4.3

5.3

5.2

5.1

4.2

5.0

2.6

2.8

3.6

4.7

4.3

4.3

1.5
-0.6
-1.7
-5.9
-0.6

2014-20182019

Central Africa

Central Africa
Fastest growing
region with 4.7%,
benefited fromhigh commodity
prices for net
exporters of crude
oil and othercommodities(As of 31 December 2022)

2020

East Africa

East Africa
Moderate growth
at 4.2% as region
faced highinternational prices
and recurrent
drought in theHorn of Africa

2021

North Africa
North Africa
Growth declined
to 4.3% in 2022
due to sharp
contraction in
Libya andthe effects of thedrought in
Morocco2022(e)Southern Africa

2023 (p)West Africa

Southern Africa
2.5% of GDP
growth due topersistent
weaknesses inSouth Africa,
region’s largest
economy and main
trading partner

West Africa
Growth slowed to
3.6 % in 2022,
reflecting
decelerations inCôte d’Ivoire andNigeria, theregion’s 2 largest
economies

Egypt
6.1%

Gambia
5.6%

Niger
7.0%
Benin
5.9%
Cote d’Ivoire
Eq. Guinea
6.8%
5.5%

3.6% growthin middleincome
countries

DRC
6.6%

4.6% growth
in low-income
countries

Rwanda6.9%
Seychelles
8.3%
Mauritius
7.0%

Gross government debt-to-GDP ratio
Percent of GDP

Remittances and ODA dominated financial flows in 2021

70.4

53.8

57.0

59.4

(in USD billion)

68.1

67.1

$95
$83
$65

65.5

60.8

47.8

35.4

2010

37.2

39.0

42.0

42.8

-$27
2015

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021 2022(e)2023(p)Drivers of recent debt accumulation••••

Weak public finance management systems, security spending, high inflation
Weaknesses in revenue mobilization
Increased government spending due to Covid-19 pandemic
High debt service cost due to FX rate depreciations

2016

2017

Foreign direct investment inflows
Portfolio investments

2018

2019

2020

2021(e)Official development assistanceRemittances

Remittances to Africa increased by 13%, from USD 84
billion in 2020 to USD 95 billion in 2021, buoyed by areturn to growth in host countries
Africa’s FDI estimated to have more than doubled from
USD 39 billion in 2020 to USD 83 billion in 2021
ODA rose by 28% from USD 51 billion in 2020 to
USD 65 billion in 2021

FrequentlyAskedQuestions

66

1) What is the relationship between AfDB and ADF?
2) What is the capital structure of the Bank?
3) What is your procedure for capital call?
4) What are your investment guidelines?
5) What is AfDB’s credit policy?
6) What are the AfDB’s lending limits?
7) What are the eligibility criteria for loans?
8) What is the AfDB’s loan approval process?
9) AfDB’s loan pricing
10) What are the Bank’s policies for equity investments?
11) What are the eligibility criteria for equity investments?
12) What are your largest notional exposures?
13) What is the distribution of the sovereign and non-sovereign portfolios by country?
14) What is your exposure to North Africa?
15) What is the Exposure Exchange Agreement ?
16) What does the Preferred Creditor Status (PCS) mean?
17) What are the AfDB’s non-performing loans ?
18) What is your policy on write-offs?
19) What is a fragile situation?
20) What is your field presence in Africa?
21) What is the Bank’s Integrated Safeguards Systems?
22) What are your ethical business practices?
23) What is the Extractive Industries Transparency Initiative?

68
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70
71
72
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67

•

The African Development Bank and the African Development Fund are two entities within
the AfDB Group that are separate both legally and financially. They have distinct assets andliabilities•

The African Development Bank is the rated entity that raises funds from the capital markets
to on-lend to the most credit worthy countries of Africa and to viable sector projects•

The African Development Fund (ADF) is the soft-loan lending arm of the AfDB group andis primarily funded through contributions from donors. It provides highly concessional loans
and grants to the poorest countries of Africa•

The AfDB has an equity participation in the Fund, and makes annual contribution from its
net income to ADF. There is no recourse to the AfDB for obligations in respect of any of
the ADF liabilities and vice-versa. There can be no transfer of exposure between these two
institutions, as they are separate

68

7th General Capital
Increase: 125% capitalincrease with 6% paid-in
portion raising the capitalto around USD 204 billion

Capital structure of the Bank(in USD million)

116,668

Reinforce the Bank’s
franchise value, key
prudential ratios andAAA credit rating

Callable capital is the commitment by each shareholder tomake additional capital available to the institution in case offinancial distress47,825
13,241

8,910

Paid-up Capital Paid-in Capital

Demonstrated strong shareholders' support

19,278AAA Callable
CapitalAA+ to AOther Callable
Callable Capital
Capital30-Jun-23

Capacity to meet increased levelof future demand and support
the business growth plan

There has never been acall on the capital of
the Bank

As at 30 June 2023, the authorized capital of the Bank stands at USD
243 billion, including a Special Temporary Callable Capital of USD 39
billion approved by the Board of Governors in March 2021

69

Purpose• Callable capital is the portion of the subscribed capital which may only be called to meet obligations of the
Bank for money borrowed or on any guarantees• Payment must be made by the member countries concerned in gold, convertible currency or in thecurrency required to discharge the obligation of the Bank for which the call was madeMechanism• The Bank has entered into arrangements whereby, in the event of a call on its callable capital, it will
request its member countries to make payment in response to such a call into a special accountestablished by the Bank with the Federal Reserve Bank of New York, or its successor duly designated forthe purpose• Terms of such account provide that the proceeds of a call must first be applied in payment of, or inprovision for full settlement of, all outstanding obligations of the Bank incurred in connection with theissuance of senior debt before any other payment shall be made with such proceeds• Calls on callable capital are required to be uniform in percentage on all shares of capital stock, but
obligations of the members to make payment upon such calls are independent from each other

Independent
Obligation• The failure of one or more members to make payments on any such call would not discharge any othermember from its obligation to make payment. Further calls can be made on non-defaulting members if
necessary to meet the Bank’s obligations. However, no member could be required to pay more than theunpaid balance of its ordinary capital subscription

70

Investment type

Minimum
ratingMaturity limit

Liquidity Haircuts

Government/Agency/Supranational

AAA/Aaa
AA-/Aa3
A/A2

30 years
15 years
1 year

0% for AAA
20% from AA+ to AA40% for A+ and A

Banks and Financial Institutions

AAA/Aaa
AA-/ Aa3
A/A2

10 years
5 years
6 months

50% from AAA to A
100% below

Corporates

AAA/Aaa
AA-/ Aa3
A/A2

10 years
5 years
6 months

50% from AAA to A
100% below

MBS and ABS

AAA/Aaa

40 years

100%

71

The Bank Group’s Credit Policy determines each Regional Member Country’s (RMC) eligibility to access the African Development Bank, the African
Development Fund or a combination of both, based on the following 2 criteria:• Per capita income above a certain threshold/operational cut off and• Creditworthiness to sustain non-concessional financing
In addition to the creditworthiness assessment, the Bank conducts an annual internal rating exercise of all its African member countries based on sovereign
rating models validated by leading international rating agencies. Sovereign ratings are subject to continual surveillance throughout the year and rating changes
may occur in case of a change in the country’s fundamentals and these actions are reviewed and approved by the Credit Risk Committee of the Bank.
As at June 2023,• 17 countries are eligible for sovereign lending: Algeria, Angola, Botswana, Cabo Verde, Congo, Egypt, Equatorial Guinea, Gabon, Libya, Mauritius,
Morocco, Namibia, Nigeria, Seychelles, South Africa, Eswatini and Tunisia.
• 6 “Blend countries*” are eligible for both ADB and ADF resources: Cameroon, Cote d’Ivoire, Kenya, Senegal, Tanzania and Zambia.
In 2014, the Bank introduced some flexibility into its Credit Policy aimed at proactively responding to the economic development needs in ADF countries.
The revision allowed access to this category of countries, on a case-by-case basis, to resources from the ADB public window for financing transformative
projects. To be eligible for ADB sovereign resources countries must meet the following criteria:(i) be at low or moderate risk of debt distress, as determined by a debt sustainability analysis (DSA) by the IMF/World Bank;(ii) have headroom for non-concessional borrowing, as determined by a DSA by the IMF/World Bank;(iii) have a sustainable macroeconomic position determined on the basis of a Special Risk Assessment; and(iv) the request for financing must be approved by the Bank’s Credit Risk Committee, based on the risk assessment for the RMC.
In 2023, 3 ADF countries are eligible to access ADB sovereign resources under the 2014 Credit Policy provision: : Benin, Rwanda and Uganda.
* Blend countries are in a transition framework from one credit status to another. They are considered blend as they are still below the cut-off for per capita income, but are considered creditworthy
72

There are several limits applicable to the Bank’s operations with the ultimate objective of ensuring that the Bankis protected from a risk perspective:••

45% of total risk capital* for Non-Sovereign operations
10% of the total risk capital for market risk and operational risk
LimitsDefinition

Percentage

Country limit

Total capital allocated to a single
country
Total capital allocated to a single
sector

15% of the Bank’s risk capital

Total capital allocated to a single
counterparty
Equity participations

2.7% of the private sector risk capital

Sector limit

Single name limit
Equity limit

11.25% of the risk capital allocated to private sector
operations for any sector
15.75% of the risk capital allocated to private sector
operations for the financial services sector

15% of total risk capital* Risk capital is defined as paid-in capital and reserves73

Public Sector
Eligibility is based on two pillars:• Gross National Income per capita• Credit Worthiness
As at June 2023, there are 26 countries eligible for sovereign lending,
namely, Algeria, Angola, Benin, Botswana, Cameroon, Cabo Verde,Congo, Cote d’Ivoire, Egypt, Equatorial Guinea, Gabon, Kenya, Libya,
Mauritius, Morocco, Namibia, Nigeria, Rwanda, Senegal, Seychelles,
South Africa, Eswatini, Tanzania, Tunisia, Uganda and Zambia.
The list of eligible countries is reviewed periodically to determine thestatus of the countries and a decision to add or to remove countries fromthe list is taken by the Board.
Moreover, the Bank conducts an annual internal rating exercise of all its
African member countries based on sovereign rating models validated byleading international rating agencies. Sovereign ratings are subject tocontinued surveillance throughout the year and rating changes may occur
in case of change in the country’s fundamentals and these actions areapproved by the Credit Risk Committee of the Bank.

Private Sector
The Bank only lends to commercially viable private sector operationsin its 54 regional member countries. Commercial viability and risks areevaluated based on internal rating models (reviewed and recalibrated
periodically with the support of major international rating agencies).
The ratings are reviewed at least annually and subject to continued
monitoring in order to ensure proactive corrective measures are taken
in a timely manner.
The Bank does not lend to projects rated below an internal rating of“5” which is equivalent to a “B-” international rating and all projects
rated (numerically) above “5” are subject to: 1) exceptional Board
approval and 2) a limit of 10% of the Bank’s capital. The Bank also has
a set of limits that governs single name exposure (6% of total risk
capital) and sector exposure (25-35% of the risk capital allocated to
private sector operations).
The Bank has in place a framework for the ex-ante additionality anddevelopment outcome assessment (ADOA) of its private sector
operations. The established baseline development outcome indicators
will facilitate tracking, monitoring and ex-post evaluations.

74

The Bank has clear core operational priorities and cross cutting themes as part of its Ten-Year Strategy in deciding in which areas to intervene. All projects follow thesame internal approval process.
1. Preparation of a Project Concept Note - The Project Concept Note (PCN) is a document prepared to present, in a concise and analytical way, the main features ofthe project to be financed. The main objective is to allow Management to take an informed decision whether to go ahead with appraisal and due diligence of the projector not. The first review level of the PCN is done by peer reviewers and members of the Project Appraisal Team (PAT), which constitutes experts drawn from a wide
range of relevant Bank departments. The PCN is finally reviewed and discussed by the Country Team who determines if the transaction is well conceived and that both
structure and orientation are compliant with the Bank’s strategy and development priorities. It will also establish whether the project is technically sound andcommercially viable. The PCN is cleared by the Country Team (chaired by the Regional Director) which will recommend the project to the Operations Committee(which is chaired by the Bank’s Vice-President/Chief Operating Officer) for final clearance. However, PCNs of some projects responding to certain circumstances
including but not limited to having an amount higher than UA 100 million, reputational risk or exceptionally innovative features in their design, will require priorreview by the Credit Risk Committee (CRC), chaired by the Bank Group Chief Risk Officer, which will make recommendations, as applicable to credit risk
governance, credit assessment and rating change approval to the Operations Committee prior to its final clearance. The Operations Committee will then make acomprehensive review of the Project Concept Note with focus on the finer technical details of operations. At this stage, particular attention is given to ratings. If the
project is cleared at this level, the PAT will go on a project appraisal mission to do an appraisal and due diligence, assessing the Project on the ground. Simultaneously,
the Bank’s Risk Management Department undertakes an independent credit evaluation of the project and prepares a Summary Credit Note.
2. Project Appraisal Stage - On completion of the due diligence mission, a Project Appraisal Report (PAR) is prepared. This is then discussed by the Project Appraisal
Team at Country Team level. The discussion of the PAR by the Country Team is subsequent to the CRC reviewing the project for further credit assessment
recommendations. Once cleared at the Country Team level, the project is sent to the Operations Committee before being submitted for approval to the Board.
3. Board Approval - Final approval rests with the Board of Directors. The Board will make a decision based on the Project Appraisal Report and on the independent
Board Credit Memorandum report prepared by the Risk Management Department.
Following approval (and disbursement), all projects continue to be periodically assessed and evaluated by the Bank’s Risk Management Department, and their internalrisk rating is regularly updated.

75

FULLY FLEXIBLE SOVEREIGN AND SOVEREIGN GUARANTEED LOANSNON-SOVEREIGN LOANS
Currency
USD, EUR, JPY, ZAR and any other currency designated as a lending currency of the Bank USD, EUR, JPY, ZAR and any other currency designated as a lending currency of the Bank
Up to 15 years, with up to 5 years grace period. Longer maturities can be considered on a
Maturity
Up to 25 years, with up to 8 years grace period
case-by-case basis
Cost-pass through pricing
Lending Rate
Base rate + lending margin
Base rate + funding cost margin + lending spread (80 bps) + maturity premium
Floating :Floating :- Daily SOFR compounded in arrears for USD- Daily SOFR compounded in arrears for USD- 6M EURIBOR for EUR- 6M EURIBOR for EUR- 3M JIBAR for ZAR- 3M JIBAR for ZAR- Daily TONA compounded in arrears for JPY
Base Rate- Daily TONA compounded in arrears for JPY
Borrower can request conversion of the Floating Base Rate into a Fixed Base Rate.
Borrower can request conversion of the Floating Base Rate into a Fixed Base Rate
Borrowers can also request Term SOFR in which case a Basis Spread can be applied to take
into account difference with Daily SOFR.
- For local currencies, funding is done back-to-back with the loan and cost is passed onto theborrower.
- For local currencies, funding is done back-to-back with the loan and cost is passed onto theborrower.
Funding Cost AfDB actual average funding cost above or below the benchmarck is applied for the next
For ZAR, a Funding Cost Margin is set and applied for each disbursement.
Marginsemester and revised semi-annually.
Based on project specific credit risk rating in line with the Bank’s non-sovereign pricing
framework. Margin includes credit risk premium (derived from probabilities of default andLending Margin 80bps
loss given default) and concentration risk premium.
For SOFR and TONA loans, additional target funding cost margin is added to the Lending
Margin.
Dependent on the average maturity of the loan (0 bps for up to 12.75 years, 10 bps
Maturity
for Average Loan Maturity greater than 12.75 years and up to 15 years and 20 bps forPremium
Average Loan Maturity greater than 15 years and below 17 years)- 1% front end fees
- 0 to 1% appraisal fees
Fees
25 bps commitment fee and 25 bps front end fees
- 0.5% to 1% commitment fee- - Late payment fee of 2% above applicable interest
Repayment Equal instalments of principal after expiration of grace period. Other repayment terms may Equal instalments of principal after expiration of grace period. Other repayment terms may
Terms
also be consideredalso be considered
The borrower can fix, un-fix and refix the base rate; caps and collars are available for the base Borrower can request a fixed base rate.
Optionality
76
rate; currency conversion possibilities on disbursed and undisbursed portion of the loan
Standalone hedging products are also available.

The Bank applies pre-defined eligibility criteria to select suitable operations that maximize its catalytic impact, guided by theprinciples of development effectiveness.
Objectives:
 In addition to the financial return for the Bank, Equity Investments are aimed at promoting: (a) local ownership of
productive enterprises; (b) efficient use of resources; (c) regional economic cooperation and integration; (d)entrepreneurial risk-taking in economic sectors of emerging importance, with a view to diversifying and modernizing
national or sub-regional economies; (e) best-practice standards in corporate governance, business management, andcorporate responsibility as a means to strengthen the competitiveness of Africa’s medium and large scale enterprises;and (f) the mobilization of domestic, regional and foreign direct investment resources in pivotal sectors of the economy
such as socio-economic infrastructure, manufacturing, agribusiness and food security, and financial sector development.
Eligibility: Non-sovereign operations can be implemented in any of the Regional Member Countries eligible to be considered forBank investments;
 All economic sectors and sub-sectors are eligible for Bank investments, except:
 Production of alcoholic beverages, tobacco, and luxury consumer goods
 Production or trade in weapons, ammunition and other goods used for military or paramilitary purposes Production, trade in, or use of nuclear reactors and related products, asbestos fibers, harmful substances Trade in wildlife or wildlife products regulated under international conventions (CITES)
 Speculative trade or investment in platinum, pearls, precious stones, gold and related products
 Gambling, casinos and equivalent enterprise Use of logging equipment in unmanaged primary tropical rainforests
 Economic activities involving harmful or exploitative forms of forced labor and/or child labor Production or trade in any product or activity deemed illegal under host country laws or regulations orinternational conventions and agreements.

77

STRATEGIC FIT

Non-sovereign operations must be compatible with the strategic orientations and priorities of the Bank (High 5s, 2013-2022 Ten
Year strategy and successors) and regional member countries (Country Strategy Papers and Regional Integration Strategy Papers)

Potential investee companies must be operating under competent management and good corporate governance, with a track record
CREDITWORTHINESS or demonstrable capacity for environmental and social responsibility, in good standing, with a viable business model, with realistic
business strategies, and capable of generating sufficient revenues to reimburse the Bank and other financiers
Equity participations must have good prospects to support dividend payments and/or retained earnings, yielding satisfactory
COMMERCIAL VIABILITY
expected internal rates of economic and financial return
In assessing financial return on equity on single-investments as well as of its equity portfolio, the Bank calculates a financial rate of
RETURN ON INVESTMENT return on investment (FRRI). The bank will calculate the expected FRRI of each prospective investment, which should show anadequate premium over the rate at which it would extend a senior loan to the same investee
The Bank will approve an equity investment only after an attainable ‘exit strategy’ has been defined and agreed upon with other key
EXIT STRATEGY
shareholders
In its capacity as lender of last resort, the Bank will not provide financing for a non-sovereign operation if, in the Bank’s opinion, the
DEVELOPMENT
client can obtain financing elsewhere on terms that may be considered reasonable for the recipients
OUTCOMES
The Bank will only participate in transactions if its role is “additive” over resources that can be provided by private-sector sources offinance, that is, if the Bank’s participation is providing (a) political risk mitigation; (b) financial additionality, including extension of
the tenor of financing, and spurring the development of capital markets; and (c) improving development outcomes. In the
BANK’S ADDITIONALITY
assessment of ‘additionality’, a special focus is on the Bank’s role in leveraging additional co-financing that would not have been
forthcoming in the absence of the Bank’s participation in the operation, and catalyzing other investments in related sectors of theeconomyThe Bank does not seek to acquire a controlling interest in companies in which it invests, and accordingly, its participation is limited
SIZE OF INVESTMENTS to 25% of the total capital of the company throughout the life of its investment
Assessment is based on (a) financial strength and historic fund performance, (b) investment strategy and risk management, (c)

PRIVATE EQUITY FUNDS industry structure, (d) management and corporate governance and (e) information quality

78Consolidated portfolio (Sovereign and non-sovereign)
MoroccoEgypt
Tunisia
NigeriaSouth Africa
Kenya
Cameroon
SenegalCôte D'Ivoire
AngolaNamibia
Gabon
Mauritius
Botswana
Algeria
Tanzania
Multi-Countries
UgandaZambiaCongo CG
RwandaCape Verde
Zimbabwe
Eswatini
Ghana
Madagascar
Sudan
Seychelles
Ethiopia
GuineaBenin
Burkina Faso
Eq Guinea
Mauritania
Mali
Dem Rep Congo
Togo(As of 30 June 2023)

1.4%
1.3%
1.2%
1.2%
1.1%
1.0%
0.9%
0.7%
0.5%
0.4%
0.4%
0.3%
0.3%
0.3%
0.1%
0.1%
0.1%
0.1%
0.05%
0.03%
0.01%

2.1%

3.9%
3.9%
3.8%
3.8%
3.5%
3.4%
3.1%
2.9%
2.9%

5.8%

6.8%
6.7%

9.3%

10.3%

16.2%

79

Sovereign portfolio
MoroccoEgypt
Tunisia
Nigeria
Kenya
South Africa
AngolaCameroon
Namibia
SenegalGabon
Côte D'Ivoire
Algeria
Botswana
Mauritius
Tanzania
Congo CG
ZambiaUgandaRwandaZimbabwe
Cape VerdeEswatini
Seychelles
Ethiopia
Benin
Eq Guinea
Burkina Faso

(As of 30 June 2023)

Non-sovereign portfolio
15.1%

9.8%
9.0%
5.3%
4.8%
4.7%
3.8%
3.6%
3.5%
3.4%
3.2%
2.9%
2.9%
2.7%
2.5%
1.9%
1.2%
1.2%
1.0%
1.0%
0.9%
0.9%
0.7%
0.3%
0.3%
0.1%
0.1%
0.1%

South Africa
Nigeria
Multi-…
MoroccoKenya
Côte D'Ivoire
Senegal
0.5%
Mauritius
0.5%
Egypt
0.5%
Ghana
0.5%
Madagascar
0.4%
Sudan
0.4%
Cameroon
0.4%
Tunisia0.3%
Guinea0.3%
Tanzania
0.3%
Botswana
0.2%
Uganda
0.2%
Gabon
0.1%
Rwanda0.1%
Mauritania
0.1%
Zambia
0.1%
Mali
0.05%
Burkina Faso
0.05%
Dem Rep… 0.03%
Cape Verde
0.02%
Togo
0.01%
Namibia
0.002%

2.0%
1.5%
1.4%
1.1%
1.0%
0.9%

80

(in USD million)

Country

Outstanding
Balance

Undisbursed Balance

Tunisia

2,712

866

3,578

Egypt

3,046

278

3,324

Morocco

4,727

966

5,693

Algeria

848

-

848

Sudan

120

-

120

Mauritania

19

-

19

Notional Exposure

Total North Africa

11,4712,1116

13,582

Total AfDB loans

29,163

9,252

38,415

Share of Exposure

39%

23%

35%

(As of 30 June 2023)

81

In 2015, the Bank entered into an Exposure Exchange Agreement (EEA) with other MultilateralDevelopment Banks (MDBs) – IADB and IBRD - with the objective of managing risks in its loan
portfolio to optimize its balance sheet, reduce sovereign concentration risk and increase lending
headroom.
The EEA involves a simultaneous exchange of equivalent credit risk on defined sovereign credit
exposure with each participating MDB retaining a minimum of 50% of the total exposure to eachcountry. The MDB that originates the sovereign loans continues to be the lender of record.

V



V



First EEA with
IBRD and IADB, both AAA
rated entities,
to reduce sovereign
concentration risk

USD 4.5 billion in notional of credit
protection purchased/soldNo premium paid as amount of
exposure exchanged is notionallythe same at inception

V

Similar to other regional
MDBs, AfDB’s credit rating
is affected byconcentration risks

Final maturities in 2030 with linear
amortization starting from 2025

EEA substantially
improved lending
capacity and capital
adequacy ratios

The seller is only required to make principal payments to the buyer when the buyer
writes off or restructures part or all of the loans in the reference portfolio
Experience shows that MDBs hardly ever write off arrears as arrears always ultimately
get settled
As at 30 June 2023, no defaults have occurred on any exposures covered under this EEA
and the Bank continues to expect full recovery of its sovereign and sovereign-guaranteed
exposures
82

For the public sector exposures, Preferred Creditor Status (PCS) means that the repayment to
the Bank generally takes precedence over other creditors in the event of sovereign default.
In other words, according to the PCS, AfDB ranks higher than other creditors in case ofdefault. Rating agencies account for this specific feature in their assessment of MultilateralDevelopment Banks.
For the private sector exposure, the Preferred Creditor Status has a different benefit. In caseof restriction of access to foreign currencies by the sovereign, rating agencies consider that
this restriction would not apply for the repayment due to Multilateral Development Banks.
This mitigates the Transfer and Convertibility Risk. For example, in case of a default or a near
default of a country on its financial obligations, private sector access to foreign currencies
may be restricted, but there would be no restrictions as regards to repayments to the Bank.

83

Non-sovereign NPLs (In USD million)
2.5% NPLs as of 30 June 2023
Sovereign NPLs (In USD million)
Country

Outstanding Balance

Impairment on Principal

Impairment rate

Zimbabwe

115.5

115.5

100%

Sovereign NPLs

115.5

115.5

ADB Sovereign Loans*

25,375

Sovereign NPLs

0.5%

* Excluding guarantees

Provisioning trends

Non-performing
assets/development assets(in USD million)

836

847

709

950

938

IBRD

734
606

612

580

478
248

IADB
IFC
AfDB

345

EBRD

0%
2018

2019
Principal

2020

2021

2022

Accum. Provisions

June
2023

1%
2020

2%

3%

4%

2021

2022

Source: Moody’s Investors Service

5%

SectorOutstanding
Balance

IND/MINI/QUAR
IND/MINI/QUAR
POWER
POWER
TRANSPORT
IND/MINI/QUAR
POWER
TRANSPORTAGRICULTURE
FINANCEAGRICULTURE
POWER
AGRICULTURE
POWER
POWER
AGRICULTURE
POWER
AGRICULTURE
AGRICULTURE
AGRICULTURE
AGRICULTURE
POWER
FINANCEPOWER
Non-Sovereign NPLs
* Excluding guarantees
ADB Non-Sovereign
Loans*
Non-Sovereign NPLs

162
78
77
65
53
50
36
21
13
11
7
7
6
6
5
5
5
5
2
2
1
1
1
0.2
618

Impairment on
Principal

162
78
16
65
53
48
8
5
3
2
4
7
3
3
2
1
2
1
1
0.5
0.2
0.3
1
0.05
464

Impairment rate

100%
100%
21%
100%
100%
95%
21%
24%
20%
16%
55%
100%
55%
47%
47%
23%
47%
23%
23%
23%
20%
24%
100%
24%

3,786
16.3%

84

The Bank has never written off a sovereign-guaranteed loan. Its experience has been that countries default in case ofunusual civil disturbances or events. When peace and stability is restored, the countries re-engage with the Bank andpay their arrears or usually obtain assistance from donors for arrears clearance.
It is the Bank’s policy that if the payment of principal, interest or other charges becomes 30 days overdue, no new loans
to that member country, or to any public sector borrower in that country, will be presented to the Board of Directors forapproval, nor will any previously approved loan be signed, until all arrears are cleared. Furthermore, for such countries,
disbursements on all loans to or guaranteed by that member country are suspended until all overdue amounts havebeen paid. These countries also become ineligible in the subsequent billing period for a waiver of 0.5% on thecommitment fees charged on qualifying undisbursed loans.
Although the Bank benefits from the advantages of its preferred creditor status and rigorously monitors the exposure
on non-performing sovereign borrowers, some countries have experienced difficulties in servicing their debts to the
Bank on a timely basis. As previously described, the Bank makes provisions for impairment on its sovereign loan
portfolio commensurate with the assessment of the incurred loss in the portfolio.
Write-offs could arise for non-sovereign loans and these are financed by the Bank’s net operating income (NOI). To datethere have not been any significant loan write offs of non-sovereign loans.
In compliance with IFRS, the Bank does not make general provisions to cover the expected losses in the performing nonsovereign portfolio. For the non-performing portfolio, the Bank makes specific provisions based on an assessment of thecredit impairment, or incurred loss, on each loan.

85

No country is immune to fragility, which can be defined as a “condition of elevated risk of institutional
breakdown, societal collapse or violent conflict”. While there is no internationally agreed framework or
set of indicators for assessing fragility, for operational purposes and in line with the new strategy, AfDB
categorizes countries and regions by their degree of fragility.

Category
1Harmonized list of fragile situations by Multilateral Development Banks; targeted
qualitative fragility assessment; presence of armed conflict in the state’s territory;
presence of violent political/social uprisings
For example, Great Lakes and Central Africa Region, Horn of Africa, Mano River Union,
Sahel

Category
2• Risk of spill-over from neighboring conflict; increasing trend and/or sudden onset ofgovernance problems; high risk of sustained social/political unrest;• Declining trend in policy and institutional performance and/or presence of important
non-political drivers of fragility

Category
3• Relatively low risk of violence or societal breakdown; relatively high capacity of socialand political institutions to manage challenges within a legitimate/inclusive framework

86

2002

2022

Ideally placed to identify
unique needs of each country

Greater
effectiveness

Deeperunderstandingof context

Enriched policy
dialogue

Improved project
supervisionquality andengagement

Improved
disbursements
and procurement
processes

Close coordination
with otherdevelopment
partners

Headquarters
Country offices
Regional hubs
Liaison offices

Strong presence in 41 countries, expanded to fragile states 39% of Bank staff working in field offices
 76% of projects managed from those field offices

87Systematic assessment of
impacts and risks
Committed to ensuring public
and private sector operations
comply with Operational
Safeguards (OSs)• Assessing environmental,
climate change and social risks
and impacts as early as possible
in the project cycle• Providing effective audit,
monitoring and supervision ofagreed environmental andsocial management measuresduring implementation• If environmental or social
impacts are not likely to beadequately addressed, the Bank
may choose not to proceedwith the investment

Application of safeguards
to the entire portfolio
Applying appropriate type andlevel of environmental andsocial assessment tooperations with high levels ofenvironmental and social risk

Approach to compliance• Environmental and Social
Impact Assessment (ESIA) for
Bank’s investment projects• ISS closely tied to Bank’sbusiness processes andproducts through compliancecheckpoints that generate key
safeguard information to be
integrated into project
documentation and used inrequests and clearance
processes• Strategic Environmental andSocial Assessment (SESA) for
Bank’s own regional, country
and sector strategies and for its
Programme-Based lending
Operations (PBOs)• It is the superseding reference
for all matters directly linked
to safeguards and compliance,
and for the management ofenvironmental and social risks
associated with operations• Environmental and Social
Compliance Note (ESCON)
provided

The Environmental and Social Corporate Policy which applies to all
Sovereign and Non-Sovereign operations throughout their entire lifecycles

88• Adopted the Uniform Framework for Preventing and Combating Fraud and Corruption along with other MultilateralDevelopment Banks in 2006: harmonized strategy for mitigating corruption and fraud for development effectiveness in projects
financed by the multilateral banks• A commitment to good governance and to the promotion of ethical business practices as well as the endorsement ofinternational standards of anti-corruption and transparency that apply to its operations• Created an Integrity Due Diligence (IDD) structure for private sector operations and other operations financed without asovereign guarantee, premised on the institution’s fiduciary and legal responsibilities to its shareholders and with attention toconsiderations of economy, efficiency and competitive trade
Guiding Principles for IDD
Identification of beneficial
ownership: will not proceedwith a transaction without
ascertaining the identity of thebeneficial owners of suchtransaction

Assessment of civil, criminal,
and regulatory backgrounds:
closely evaluate the criminal,
civil and regulatory history of
the counterparty and significant
related parties for integrity risk*

Mitigation of integrity risks:Theunderlying objective of the IDD
process should be to identify
and mitigate integrity risks

Sanctioned persons andentities: will not finance a
project where any of thecounterparty, significant related
party or their beneficial owners
is debarred or cross-debarred by
the Bank Group

Monitoring of integrity risks
and enforcement of covenants:
effectively monitor projects
throughout the project cycle toidentify early warning signs andindicators of Integrity Risks*Integrity Risk is the potential for financial and non-financial loss including adverse reputational
impact that may result from Unethical Practices in Projects and investment decisions

Politically Exposed Persons(PEPs) and other high risk
relationships: carry out
enhanced IDD in addition to its
standard IDD measures where
PEPs are involved in a project

Record-keeping: keep adequate
and reliable records of all
documentation involved in andsteps taken throughout the IDD
process

89

The Extractive Industries Transparency Initiative (EITI) aims to promote governance by strengthening transparency in the extractive
industries. Natural resources, such as oil, gas, metals and minerals, belong to a country’s citizens. Extraction of these resources can lead toeconomic growth and social development. However, when poorly managed it has too often lead to corruption and even conflict. Moreopenness around how a country manages its natural resource wealth is necessary to ensure that these resources can benefit all citizens.
Countries implement the EITI Standard to ensure full disclosure of taxes and other payments made by oil, gas and mining companies togovernments. These payments are disclosed in an annual EITI Report. This report allows citizens to see for themselves how much theirgovernment is receiving from their country’s natural resources.
EITI provides a number of benefits to various stakeholders. Benefits for implementing countries include an improved investment climate byproviding a clear signal to investors and international financial institutions that the government is committed to greater transparency. EITI
also assists in strengthening accountability and good governance, as well as promoting greater economic and political stability. This, in turn,can contribute to the prevention of conflict based around the oil, mining and gas sectors.
Benefits to companies and investors are centered on mitigating political and reputational risks. Political instability caused by opaque
governance is a clear threat to investments. In extractive industries, where investments are capital intensive and dependent on long-term
stability to generate returns, reducing such instability is beneficial for business. Transparency of payments made to a government can also
help to demonstrate the contribution that their investment makes to a country.
Benefits to civil society come from increasing the amount of information in the public domain about those revenues that governments
manage on behalf of citizens, thereby making governments more accountable.
The Bank is working to mainstream EITI principles in its own sector operations. Through encouraging regional member countries to takepart in the EITI process and by offering technical and financial assistance where applicable, the Bank will help bring about sound extractive
industry practices and the utilization of natural resources for sustainable development. To date, the Bank has contributed to theachievement of EITI candidacy status of three countries namely Central Africa Republic, Liberia and Madagascar and is supporting various
African countries adhere to and implement the initiative. These include Liberia, Sierra Leone, Chad, Togo, Guinea Conakry, and Madagascar.
90

FundingDesk@afdb.org

www.afdb.org

AFDB <GO>91This presentation has been prepared by the African Development Bank (“AfDB”) for information purposes
only. Any opinions expressed in this presentation reflect the judgment of AfDB at the date and time hereof
and are subject to change without notice and AfDB has no obligation to inform any recipient when opinions
or information in this presentation change.
The AfDB makes no representation, warranty or assurance of any kind, express or implied, as to the accuracy
or completeness of any of the information contained herein. This presentation is not an offer for sale, or asolicitation of an offer to buy, any notes or other securities of AfDB. It does not take into account theparticular investment objectives, financial situations, or needs of individual investors. The price and value ofthe investments referred to in this presentation may fluctuate. Past performance is not a guide to future
performance and future returns are not guaranteed. Under no circumstances shall AfDB be liable for any loss,
damage, liability or expense incurred or suffered which is claimed to have resulted from use of thesematerials, including without limitation any direct, indirect, special or consequential damages, even if AfDB
has been advised of the possibility of such damages.
Each recipient of this presentation is deemed to acknowledge that this presentation is a proprietary
document of AfDB. All content (including, without limitation, the graphics, icons, and overall appearance ofthe presentation and its content) are the property of the AfDB. The AfDB does not waive any of its proprietary
rights therein including, but not limited to, copyrights, trademarks and other intellectual property rights.

92