Policy reform sees AfDB moving from bilateral funds towards higher multi-donor trust fund

The African Development Bank (AfDB) says it has made substantial progress under the Trust Fund Reform policy in moving away from tied bilateral funds to multi-donor Trust Funds most of which are thematic in nature.

The Bank noted, as of the end of October 2011, it managed 10 thematic funds for a total of about $185 million compared to $14.2 million available for use under the existing ten bilateral funds.

According to a statement from the Bank, Mrs Kazumi Larhed, AfDB’s head of the Partnership and Cooperation Unit in a presentation to the Board of Directors November 15, 2011 on trust funds said, “AfDB is involved in active resource mobilisation through trust funds and it is important to note that as of the end of October this year, the Bank had 314 on-going trust fund projects for a total of $397.7 million, 40% of which were in knowledge-based activities.”

Mrs. Larhed’s presentation, the statement said covered AfDB trust funds at a glance, ongoing trust funds operations, annual commitment rate of trust funds, newly mobilised trust fund resources in 2011, challenges posed by trust fund management and the way forward.

In 2011 a total of $109.7 million of trust fund resources have been mobilized.  Of that total, $95 million is under multi-donor thematic funds, she said.

AfDB’s Vice President Aloysius Ordu who chaired the session, according to the statement noted that under a broader scope of trust fund and special funds review the AfDB is equipping itself to address demand driven funds for greater impact.

By Ekow Quandzie