Canada pledges $1.1 billion in callable capital support to AfDB

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BERLIN, GERMANY - JUNE 11: The African Develpment Bank President Akinwumi Adesina answers a reporter's question following talks at the Chancellery on June 11, 2018 in Berlin, Germany. Chancellor Angela Merkel is meeting with heads of the International Monetary Fund (IMF), the World Bank, the Organization for Economic Cooperation and Development (OECD), the International Labor Organization (ILO), the African Development Bank and the World Trade Organization (WTO) today. The meeting comes on the heels of the G7 summit in Canada, in which U.S. President Donald Trump aggravated divisions between his administration and G7 member states. (Photo by Sean Gallup/Getty Images)
FILE PHOTO: The African Development Bank President Akinwumi Adesina at the Chancellery in Berlin, Germany. (Photo by Sean Gallup/Getty Images)

Canada announced a $1.1 billion commitment in temporary callable capital to support the African Development Bank (AfDB).

The announcement is subject to approval by the Bank’s governors.

“The African Development Bank is a key partner for Canada and we are committed to supporting the Bank’s African member countries. Canada and Canadians are proud of our long history of partnership and collaboration with Africa,” Canada’s Minister of International Development Maryam Monsef said.

Monsef added that Canada is determined to ensure that not less than 50% of bilateral development assistance is dedicated to sub-Saharan Africa by 2021-2022.

Monsef also urged other AAA-rated member countries to join Canada in providing temporary callable capital to the AfDB.

AFDB president Akinwumi Adesina noted Canada’s commitment will allow the Bank to strengthen its Triple A rating. That would increase lending to member countries while discussions continue regarding a general capital Increase.

Adesina added that the announcement is a clear indication that Canada has strong confidence in the AFDB.

This is not the first time Canada has provided temporary callable capital to the AFDB. It did so in 2010 enabling the Bank to support regional member countries in the aftermath of the international financial crisis.