Early last month, the African Development Bank (AfDB), achieved a milestone by issuing the largest social bond or debt instrument to support countries cope with the social economic impacts of COVID-19 or on the international market.
For this feat, the President of the Bank Dr. Akinwumi Adesina has received praise for developing revolutionary financing instruments that will support African governments weather the effects of COVID-19 pandemic.
The praise has come from the Chairman of the African Union who is also the president of South Africa Cyril Ramaphosa and Liberia’s former President Ellen Johnson Sirleaf.
The $3 billion “Fight COVID-19” social bond, was the largest instrument of its kind, since social bonds issuance started in 2016.
President Ramaphosa also expressed appreciation for the Bank’s commitment of $26 million for the African Centers for Disease Control and Prevention, its support in the procurement of critical medical supplies in Africa, and the financial instruments the Bank has provided to assist member countries through the pandemic.
AfDB wants to use the funds raised to provide African governments and the private sector with access to financing to reduce the economic and social impacts of COVID-19.
Dr. Adesina is credited for raising the profile of the bank and increasing trust among shareholders which has helped the bank more than double its capital to US$208 billion.
