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The Department for International Development's (DFID) recent doubling of support to the African Development Bank (AfDB) is an affirmation of early successes in the Bank's reform programme. The Bank's President Donald Kaberuka and his staff, supported by influential donors such as DFID, are overseeing critical changes—notably the decentralisation and 'results' agendas—that will help the AfDB fulfil its potential as the driver of development in Africa.
The record donor support pledged under the eleventh replenishment of the African Development Fund (ADF 11) offers the opportunity to make real changes to poor people's lives—but only if the effectiveness of AfDB strategies are maximised. Infrastructure investments must do more to build local industry and capacity. Compliance with global transparency benchmarks must be a pre-requisite for AfDB financing of extractive industry projects. Lending to the private sector must 'add value'—for instance by building capacity—and help drive pro-poor growth.
DFID has influenced many of the most significant reforms to the Bank and deserves credit for this. It must now keep a watchful eye on the implementation of these reforms and use its position of influence to push for more meaningful delegation of responsibility to decentralised offices. The Department must be clear on what it expects from the Bank in its work on climate change in Africa and it should continue to press for closer collaboration between the AfDB and the World Bank.
DFID should argue for a reconfigured Board structure that enables the leverage of DFID and other major donors at the Bank to be commensurate with their increasing contributions to the institution. The success of the Bank's new results agenda will depend on the ability accurately to monitor outcomes. DFID must help ensure that both the Bank's key performance indicators and the extent to which its own objectives are being met are rigorously assessed.
The AfDB's contribution to achieving the Millennium Development Goals goes far beyond its direct expenditure of development resources to encompass its role as a Bank for Africa and a collective voice for development on the continent. The Bank has the potential to become a regional leader. DFID must continue its worthwhile and highly creditable support to ensure the institution fulfils this promise.
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