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CANADA has pledged a US$1,1 billion callable capital support to the African Development Bank (AfDB) to assist development on the continent.
Canadian Minister of International Development and for Women and Gender Equality, Maryam Monsef, made the announcement on the sidelines of the recent World Bank-IMF Spring meetings held in Washington, United States.
“Canada is demonstrating its commitment to African countries and our confidence in the African Development Bank by announcing that we are going to subscribe up to US$1,1 billion in temporary callable capital, if required,” she said, adding that Canada was determined to ensure that “no less than 50 percent of bilateral development assistance is dedicated to sub-Saharan Africa by 2021-2022”.
Monsef said the AfDB was a key partner for Canada and that her country was committed to supporting the bank’s African member countries.
“Canada and Canadians are proud of our long history of partnership and collaboration with Africa,” she said.
Commenting on the announcement, AfDB president, Dr Akinwumi Adesina said Canada’s commitment and support was a huge boost to the bank and Africa as a whole.
“It will allow the Bank to strengthen its triple ‘A’ rating and increase lending to member countries while discussions are ongoing among all shareholders for a general capital increase,” he said.
“Your announcement is a clear indication that Canada has strong confidence in the African Development Bank.”
In a follow-up bilateral meeting, Minister Monsef and Dr Adesina discussed values and interests in common on gender and increasing access to finance for women, as well as on climate and renewable energy issues.
Canada has been a member of the AfDB since January 1983 and has participated in all general capital increases of the Bank.
It provided temporary callable capital in 2010, which helped the bank to continue to provide support to regional member countries in the aftermath of the international financial crisis.
As at June 30, 2018, Canada’s total capital subscribed amounted to $3,5 billion of which $252 million has been paid in and $3,22 billion stands as callable capital, making Canada the fourth largest shareholder among the bank’s non-regional member countries.
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