Dr. Akinwumi A. Adesina has been re-elected to serve a second five-year term as President of the African Development Bank Group (AfDB) on Thursday, August 27, 2020, by the Board of Governors of the bank. According to the official statement by the AfDB, the globally-renowned development economist and World Food Prize laureate and Sunhak Peace Prize laureate, received a 100% of votes of all regional and non-regional members of the bank.



The election took place on the final day of the 2020 Annual Meetings of the AfDB Group, which was held virtually for the first time in the bank’s history.



Bismarck Rewane, a leading economist and CEO of Financial Derivatives, says, “The re-election of Dr. Akin&nbsp;Adesina&nbsp;is an epoch-making event for the African continent. It goes a long way towards erasing the stereotypical image of Africans in general and Nigeria in particular as lacking in the discipline of transparency, accountability and governance. For the institution, the African Development Bank,&nbsp;it provides&nbsp;a major opportunity for it to play a more catalytic role in the development of a continent in dire need of liberation from the pangs of multidimensional poverty,&nbsp;a debt trap and&nbsp;anaemic economic growth. The&nbsp;AfDB is&nbsp;expected to become more dynamic under the stability of the leadership of Akin&nbsp;Adesina&nbsp;especially with the increased shareholder funds and depth of intellectual capital that&nbsp;it currently possesses. It is in fact a new day for Africa.”



“Congratulations to Dr Adesina for his re-election&#8230; The shareholders of AfDB could not have selected a more appropriate person to support Africa to &#8216;build forward together&#8217;&nbsp;post-Covid-19.&nbsp;He is not only a passionate and visionary leader but also has the execution capacity and empathy to help Africa unleash its great potential. AfDB is a unique organization founded by all African countries in the 1960s and subsequently joined by non-African countries in an exemplary partnership to build a first-class ‘AAA’ entity. It is an organization that responds to Africa’s needs like no other entity because it has Africa’s DNA embedded in it,” says Arunma Oteh, academic scholar, University of Oxford, and former Treasurer and Vice President, World Bank.



In December 2019, Adesina, known for his trademark bow-tie and his keenness for continental development, was the recipient of the African of the Year award and was on the cover of FORBES AFRICA.

Photo by: Kelechi Amadi-Obi (www.kelechiamadiobi.com)

Akinwumi Adesina Re-Elected President Of The African Development Bank Group

By Akinwumi A. Adesina, President, African Development Bank.



We are in a battle against time to curb the COVID-19 pandemic. While tackling the Coronavirus pandemic has grabbed global attention, a new crisis that could claim a lot more lives is brewing in Africa: massive locust invasions.



Billions of desert locusts are ravaging countries all across East Africa, including Kenya, Somalia, Ethiopia, Sudan, South Sudan, Uganda, and Djibouti. It has been reported that their numbers are likely to increase by up to 400 times by June 2020, reaching crisis levels.



The Food and Agriculture Organization of the United Nations (FAO) has estimated that unless quickly controlled, 5 million additional people in East Africa will be hungry by June.



An unprecedented race against time has begun to urgently stop the progression and potentially devastating impact of the deadly twins: COVID-19 and the locusts for millions in Africa.



We all know that rains are good for crops. But then when good rains also caused favorable breeding environments for locusts, the joy of rains has suddenly turned hopes of expected plenty into glooms of hunger.&nbsp; Is the best of times becoming the worst of times?



Locust breeding populations have increased massively. The locust plague moves with devastating effects: imagine a carpet of locusts of up to 150 million locusts covering a square kilometer. And think about it, that they can consume crops in one day that can feed approximately 35,000 people. In East Africa, where FAO estimates that some 20 million people are already food insecure, the effects will be devastating.



The locust crisis emerges as the continent is dealing with the COVID-19 pandemic. These are tough odds to face.



Today, distressfully, choices for millions of the poor are oddly similar: to stay in confinement and escape dying from Coronavirus or dying from hunger staying at home.



It is already playing out. Food riots broke out a few days ago in Kibera, the largest slum in Kenya, as people trampled over each other, defying social distancing &#8211; prescribed to stem the spread of the Coronavirus &#8211; to get food. Coronavirus could kill, but hunger kills many more people.



With the lockdowns for the COVID-19 pandemic, pest control workers are largely unable to go out to spray. While restrictions have been lifted to allow aircrafts used to spray to operate, they can do little as they are largely unable to get access to the chemicals, due to disruption of supply chains.



It appears that those who escape the COVID-19 will soon face LOCUST-19. In East Africa alone, the number of hungry people could jump to 30 million people.



There are several lifesaving recommendations we can act on now. These include one, the creation of a &#8220;green channel&#8221; for the free flow of food and agricultural inputs and pesticides to control pest attacks. Two, putting in place measures to prevent food price hikes by releasing food from government grain reserves and implementing anti-hoarding policies. Three, rapidly scaling up food production technologies, including high-yielding, early-maturing, drought-tolerant, disease- and pest-resistant staple crops, and programs such as the African Development Bank’s flagship program, the Technologies for African Agricultural Transformation (TAAT) initiative.



The good news is that the African Development Bank has joined the FAO as the frontrunners in this unprecedented race against time. The Bank has just approved a $1.5 million grant to the Intergovernmental Authority on Development (IGAD) and the FAO to support efforts to spray against the locusts and safeguard livelihoods in the East and the Horn of Africa. More help will be needed.



The last thing Africa needs now, as we are battling with the COVID-19 pandemic, is a hunger pandemic.



COVID-19 has taken the international community on an unpredictable journey. Thankfully, we can preclude and halt the locust crisis. For that to happen, we all must rally around the FAO to provide the $153 million needed.



COVID-19 cannot be followed by LOCUST-19.

PRST Adesina

Op-Ed: Why Africa Cannot Afford LOCUST-19

Abidjan, Côte d&#8217;Ivoire, 8 April 2020 –&nbsp;The African Development Bank Group on Wednesday announced the creation of the COVID-19 Response Facility to assist regional member countries in fighting the pandemic.



The Facility is the latest measure taken by the Bank to respond to the pandemic and will be the institution&#8217;s primary channel for its efforts to address the crisis. It provides up to $10 billion to governments and the private sector.



Akinwumi Adesina, President of the African Development Bank Group, said the package took into account the fiscal challenges that many African countries are facing.



&#8220;Africa is facing enormous fiscal challenges to respond to the coronavirus pandemic effectively. The African Development Bank Group is deploying its full weight of emergency response support to assist Africa at this critical time. We must protect lives. This Facility will help African countries to fast-track their efforts to contain the rapid spread of COVID-19,&#8221; Adesina said, commending the Board of Directors for its unwavering support.



The Facility entails $5.5 billion for sovereign operations in African Development Bank countries, and $3.1 billion for sovereign and regional operations for countries under the African Development Fund, the Bank Group&#8217;s concessional arm that caters to fragile countries. An additional $1.35 billion will be devoted to private sector operations.



Commenting on the Facility, Acting Senior Vice-President Swazi Tshabalala said: &#8220;The setting up of the Facility required a collective effort and courage by all our staff, Board of Directors and our shareholders.&#8221;



Two weeks ago, the Bank launched a record-breaking $3 billion Fight COVID-19 Social Bond, the world&#8217;s largest US dollar-denominated social bond ever on the international capital market. Last week, the Board of Directors also approved a $2 million grant for the World Health Organization for its efforts on the continent.&nbsp;



&#8220;These are extraordinary times, and we must take bold and decisive actions to save and protect millions of lives in Africa. We are in a race to save lives. No country will be left behind,&#8221; Adesina said.



Press Release provided by the AfDB Group.

Afdb

AfDB Unveils $10 Billion Response Facility To Curb COVID-19

Landmark transaction, largest Social bond transaction to date in capital markets



Abidjan, Côte d&#8217;Ivoire, 27 March 2020 &#8211; The African Development Bank (AAA) has raised an exceptional $3 billion in a three-year bond to help alleviate the economic and social impact the Covid-19 pandemic will have on livelihoods and Africa’s economies.  



The Fight Covid-19
Social bond, with a three-year maturity, garnered interest from central banks
and official institutions, bank treasuries, and asset managers including
Socially Responsible Investors, with bids exceeding $4.6 billion. This is the
largest Social Bond ever launched in international capital markets to date, and
the largest US Dollar benchmark ever issued by the Bank. It will pay an
interest rate of 0.75%. 



The African
Development Bank Group is moving to provide flexible responses aimed at
lessening the severe economic and social impact of this pandemic on its
regional member countries and Africa’s private sector.



“These
are critical times for Africa as it addresses the challenges resulting from the
Coronavirus. The African Development Bank is taking bold measures to support
African countries. This $3 billion Covid-19 bond issuance is the first part of
our comprehensive response that will soon be announced. This is indeed the
largest social bond transaction to date in capital markets. We are here for
Africa, and we will provide significant rapid support for countries,” said
Dr.&nbsp;Akinwumi Adesina,&nbsp;President of the African Development Bank Group.



The order book
for this record-breaking bond highlights the scale of investor support, which
the African Development Bank enjoys, said the arrangers.



“As the Covid-19
outbreak is dangerously threatening Africa, the African Development Bank lives
up to its huge responsibilities and deploys funds to assist and prepare the
African population, through the financing of access to health and to all other
essential goods, services and infrastructure,” said Tanguy Claquin, Head of
Sustainable Banking, Crédit Agricole CIB.



Coronavirus
cases were slow to arrive in Africa, but the virus is spreading quickly and has
infected nearly 3,000 people across 45 countries, placing strain on already
fragile health systems.&nbsp;



It is estimated
that the continent will require many billions of dollars to cushion the impact
of the disease as many countries scrambled contingency measures, including
commercial lockdowns in desperate efforts to contain it. Globally, factories
have been closed and workers sent home, disrupting supply chains, trade,
travel, and driving many economies toward recession.&nbsp;



Commenting on
the landmark transaction, George Sager, Executive Director, SSA Syndicate,
Goldman Sachs said: “In a time of unprecedented market volatility, the African
Development Bank has been able to brave the capital markets in order to secure
invaluable funding to help the efforts of the African



continent&#8217;s
fight against Covid-19. Not only that, but in the process, delivering their
largest ever USD benchmark. A truly remarkable outcome both in terms of its
purpose but also in terms of a USD financing”.



The Bank
established its Social Bond framework in 2017 and raised the equivalent of &nbsp;$2 billion through issuances denominated in
Euro and Norwegian krone. In 2018 the Bank was designated by financial markets,
‘Second most impressive social or sustainability bond issuer” at the Global
Capital SRI Awards.



“We are thankful
for the exceptional level of interest the Fight Covid-19 Social Bond has raised
across the world, as the African Development Bank moves towards lessening the
social and economic impact of the pandemic on a continent already severely constrained.
Our Social bond program enables us to highlight our strong development mandate
to the investor community, allowing them to play a part in improving the lives
of the people of Africa. This was an exceptional outcome for an exceptional
cause,” said Hassatou Diop N’Sele, Treasurer, African Development Bank.



Fight Covid-19 was allocated to central banks and official institutions (53%), bank treasuries (27%) and asset managers (20%). Final bond distribution statistics were as follows: Europe (37%), Americas (36%), Asia (17%) Africa (8%,) and Middle-East (1%).



Press Release by the African Development Bank

gettyimages-488744010-594×594

What You Need To Know About AfDB’s $3 billion “Fight COVID-19” Social Bond

Press Release
➢ WITH “ROOM2RUN,” AfDB LAUNCHES SECURITIZATION MARKET FOR MULTILATERAL 
DEVELOPMENT BANK SECTOR 
➢ TRANSACTION IS IN DIRECT RESPONSE TO G20 ACTION PLAN FOR MDB BALANCE SHEET OPTIMIZATION 
➢ AfDB COMMITS TO REINVEST FREED UP CAPITAL INTO NEW AFRICAN INFRASTRUCTURE 
LENDING, MAKING ROOM2RUN ONE OF THE LARGEST IMPACT INVESTMENTS EVER 
➢ TRANSACTION IS SUPPORTED BY NEW EUROPEAN UNION GUARANTEE TOOL (EUROPEAN FUND FOR SUSTAINABLE DEVELOPMENT)
OTTAWA, Canada, 18 September 2018 — The African Development Bank (AfDB), the European Commission, Mariner Investment Group, LLC (Mariner), Africa50, and Mizuho International plc today announce the pricing of Room2Run, a US $1 billion synthetic securitization corresponding to a portfolio of seasoned pan-African credit risk. Room2Run is the first-ever portfolio synthetic securitization between a Multi-Lateral Development Bank (MDB) and private sector investors, pioneering the use of securitization and credit risk transfer technology to a new and previously unexplored segment of the financial markets.
Structured as a synthetic securitization by Mizuho International, Room2Run transfers the mezzanine credit risk on a portfolio of approximately 50 loans from among the African Development Bank’s nonsovereign lending book, including power, transportation, financial sector, and manufacturing assets. The portfolio spans the African continent, with exposure to borrowers in North Africa, West Africa, Central Africa, East Africa, and Southern Africa. Mariner, the global alternative asset manager and a majority owned subsidiary of ORIX USA, is the lead investor in the transaction through its International Infrastructure Finance Company II fund (“IIFC II”). Africa50, the pan-African infrastructure investment platform, is investing alongside Mariner in the private sector tranche. Additional credit protection is being provided by the European Commission’s European Fund for Sustainable Development in the form of a senior mezzanine guarantee.
“Room2Run gives us fresh resources to invest in the projects Africans need most,” said Akinwumi Adesina, President of the African Development Bank Group. “Africa has the most promise, the greatest natural resources, and the world’s youngest population. But we also have the world’s most persistent infrastructure deficits. The African Development Bank has the strategy to address these infrastructure finance gaps—and Room2Run gives us the capacity to make it happen.”
Structured as an impact investment, Room2Run is designed to enable the African Development Bank to increase lending in support of its mission to spur sustainable economic development and social progress. In connection with Room2Run, AfDB has committed to redeploy the freed-up capital into renewable energy projects in Sub-Saharan Africa, including projects in low income and fragile countries.
“On the Impact scale, Room2Run is off the charts,” said Dr. Andrew Hohns, Lead Portfolio Manager and head of the Mariner Infrastructure Investment Management team. “Room2Run answers the call of the G20 for private sector participants to step in and facilitate development finance, providing a template for attracting significant private sector capital into urgently needed projects in developing economies.”
Raza Hasnani, Head of Infrastructure Investment at Africa50 commented, “Room2Run provides an innovative and commercially viable solution to the African Development Bank’s risk management and lending objectives, while paving the way for commercial investors to support and benefit from the growth of infrastructure on the continent. Africa50 is very pleased to participate in this landmark transaction, which is in line with our mandate to drive increased investment in infrastructure in Africa, and to create pathways for long-term institutional capital to flow into this space.”
Room2Run enjoys the support and participation of the European Commission with an investment from the European Fund for Sustainable Development, in the form of a senior mezzanine guarantee. “Only a few days after announcing our renewed Alliance with Africa for sustainable investments and jobs, I am very happy to announce that we are, together with the African Development Bank, launching Room2Run,” commented Neven Mimica, the European Commissioner for International Cooperation and Development. “This initiative is a perfect example of what we are doing to support investments in African low income and fragile countries through the External Investment Plan. Through Room2Run we provide 
an additional protection to investments in the field of renewable energy. Through our Guarantee, investments under Room2Run will translate into extending supply to many people currently without electricity whilst creating much-needed new jobs.”
Room2Run also directly responds to calls by the G20 that MDBs use their existing resources to full capacity, as articulated in the 2015 G20 MDB Action Plan to Optimize Balance Sheets, as well as calls for greater MDB efforts to crowd-in private investment. The G20 has called on MDBs to share risk in their non-sovereign operations with private investors, including through structured finance, mezzanine financing, credit guarantee programs, and hedging structures.
The Government of Canada has been a global leader in advocating for MDBs to use their existing resources more efficiently and to mobilize private capital for global development. The goal of the G20 MDB Action Plan to Optimize Balance Sheets is to catalyze significant new development financing from the MDBs throughout the real economy in key development regions. “Attracting more private capital into global development efforts is critical to building economies that work for more and more people around the world,” said Bill Morneau, Canada’s Minister of Finance, “that’s why Canada and our G20 partners have been calling on multilateral development banks to use their existing resources as efficiently as possible, and to look for new ways to attract more private capital. We are pleased to see the African Development Bank come forward with a transaction that directly responds to both of these objectives. Room2Run is an innovative solution to a long-standing challenge.”
Juan Carlos Martorell, Co-Head of Structured Solutions at Mizuho International, adds, “Compared to other synthetic securitizations, a major achievement of Room2Run has been to ensure that ratings agencies, and in particular S&amp;P, reflect the merits of the risk transfer into their rating assessments for multilateral development banks. AfDB’s leadership through this transaction has now set the stage for broader adoption of the instrument throughout the MDB community.”

Tag: AfDB Group

FORBES AFRICA SOCIAL MEDIA

Akinwumi Adesina Re-Elected President Of The African Development Bank Group

Op-Ed: Why Africa Cannot Afford LOCUST-19

AfDB Unveils $10 Billion Response Facility To Curb COVID-19

What You Need To Know About AfDB’s $3 billion “Fight COVID-19” Social Bond

With “Room2Run,” AfDB Launches Securitisation Market For Multilateral Development Bank Sector