African Development Bank's annual meetings open today
Under the sponsorship of President Hosni Mubarak the African Development Bank (ADB) and the African Development Fund (ADF) annual meetings opened today in Cairo. The 3-day meetings, to be inaugurated by Premier Dr. Kamal Al-Ganzouri, Egyptian and African officials will discuss a wide range of issues including the ADB capital increase by 35 percent from $21.5 billion to 30 billion, and restructuring of the capital to raise African contribution to 60 percent. The meetings will also tackle the annual report by the Bank's Governors Council, two reports by ministries of trade and supply, planning and international cooperation on establishing a navigation route between Alexandria and South Africa in a bid to enhance inter-African trade. The meetings are also to deal with the cooperation agreement between the ADB and the Common Market for Eastern and Southern Africa (COMESA). According to Central Bank of Egypt Governor, the Egyptian economic reform experience would be also examined during the ADB and ADF annual meetings. Executive Director of Egypt and Djibouti section at the African Development Bank (ADB) Ahmed Darash, said Monday Egypt's successful economic reform was a pioneering experiment in the African continent. Darash said during tomorrow's ADB Board meeting, the banks capital would be increased by 35 percent from $ 21.5 billion to $ 30 billion, of which 60 percent would be shared by African countries and the rest by non-African states. Before the new increases, non-African's share was 33.25 percent of the capital and the remaining 66.75 percent was paid by the African countries. He said the ADB and the World Bank gave Egypt a $ 100 million in loan in 1990 to help improve its balance of payment.
Meanwhile, during a colloquy held in Cairo on the eve of the governing board, the bank said the continent needs $ 250 billion to improve basic infrastructure in the 10 coming years. The Bank promised to support state projects and be more involved in private investments in infrastructure projects.
The ADB president, Omar Kabbaj, stressed that a few African countries have the needed resources to build airports, ports, highways, power plants and communication systems.
The bank, which groups 53 African countries and 23 countries from other continents, said it will use various financing means, including participation, direct loans and guarantees. It also promised to extend technical assistance to help African countries attract private capital, undertake investment projects and privatize state enterprises.