Highlights of Year 2007 for Bank Group Successful replenishment of - - PowerPoint PPT Presentation

Highlights of Year 2007 for Bank Group

Excellent

• perational and

Quantum leap in

private sector

Successful replenishment

• f ADF-11 for

UA 5.6bn (US$ 8.9bn),

• perational and

financial results private sector approvals

UA 5.6bn (US$ 8.9bn), a 52% increase

• ver ADF-10

High level panel recommendations on strategic orientations

Successes in local currency operations including first supranational bond issue

Implementation of institutional reforms continues to enhance g

• f the Bank Group

supranational bond issue in the domestic South African capital markets

to enhance development effectiveness

1

Table of Contents

Bank Group Overview

1

AfDB Financial Profile

2

AfDB Capital Market Activities

3

Appendices

4

2

Bank Group Overview Bank Group Overview

3

Bank Group Overview Bank Group Overview

A development financial institution focused on

Africa

African Development Bank (“AfDB”)

• Established in 1964

A development financial institution focused on poverty and the economic and social development of Africa

Europe

• Subscribed capital US$ 34 billion
• 53 African and 24 non-African countries

African Development Fund ( “ADF”)

Austria Belgium Denmark Finland France Germany Netherlands Norway Portugal Spain Sweden Switzerland Algeria Angola Benin Botswana Burkina Faso Burundi Cameroon Libya Madagascar Malawi Mali Mauritania Mauritius Morocco

• Established in 1972
• Subscription US$ 24 billion
• Replenished every three years primarily

by non-African countries Italy UK Argentina Canada USA Cameroon Cape Verde Central African Rep. Chad Comoros Congo Morocco Mozambique Namibia Niger Nigeria Rwanda

• S. Tome &

North & South America

Nigeria Trust Fund (‘’NTF’’)

• Established in 1976 by Nigeria for a 30

year period

• Total resources US$ 432 million
• Agreement reached with Nigeria to

Brazil USA g Côte d’Ivoire

• D. R. Congo

Djibouti Egypt Equatorial Guinea Eritrea Ethi i Principe Senegal Seychelles Sierra Leone Somalia South Africa S d Kuwait Saudi Arabia

Middle East

• Agreement reached with Nigeria to

extend the life of NTF to 2018 Ethiopia Gabon Gambia Ghana Guinea Guinea Bissau Kenya Sudan Swaziland Tanzania Togo Tunisia Uganda Zambia

Asia

China Korea India Japan

Turkey and Luxembourg have declared their intent to become

4

Kenya Lesotho Liberia Zambia Zimbabwe

declared their intent to become members of the Bank Group

Bank Group Overview Bank Group Overview

AfDB approvals increased by 59% in 2007 led by strong growth in private sector operations

Approvals (in UA million) Approvals in 2007 by Sector

Industry 6% Power Supply 36% Water Supply 8%

258 153 9

2,500 3,000

pp ( ) pp y

7 46

Social 5% Other 2% 7% Agriculture &

996 957 992 1,385 1,229 1,009 509 23

1,500 2,000

Multisector 4% g Rural Development Transport 29% Finance 3.40%

746 812 793 948 1,670 996 957 992

500 1,000

2003 2004 2005 2006 2007

ADB ADF HIPC NTF Special Funds

Total Approvals 2007 : UA 3.1 bn 2006: UA 2.60 bn Total Disbursements 2007: UA 1 6 bn 2006: UA 1 2 bn

5

2007: UA 1.6 bn 2006: UA 1.2 bn

Bank Group Overview Bank Group Overview

ADB Approved Projects and Programs in 2007

Represents 54% of Bank Group 2007 approvals 29 Operations approved

In UA million

29 Operations approved in 12 countries

Power supply Power supply 600 700 800 Transportation Industry, mining and quarrying 300 400 500 Equity participation Water supply, sanitation Finance q y g 100 200 p p

6

Environment Agriculture & rural development Communication Multisector

Bank Group Overview Bank Group Overview

ADF Approved Loans and Grants in 2007 ADF Approved Loans and Grants in 2007

Represents 40% of Bank Group 2007 approvals 49 Operations approved in 24 countries

In UA million

Transportation

300 400

Other social Power supply

200 300

Education

100

Agriculture & Water supply Multisector

7

Agriculture & rural development Water supply, sanitation Multisector

Bank Group Overview Bank Group Overview

2007 Core Operational Focus 2007 Core Operational Focus

INFRASTRUCTURE GOVERNANCE PRIVATE SECTOR INVESTMENTS REGIONAL INTEGRATION

8

Bank Group Overview Bank Group Overview

2007 Core Operational Focus

INFRASTRUCTURE

• Critical for economic growth, private sector development and investment, increased competitiveness
• Catalyst for the development of other sectors and the achievement of key MDGs
• Support efforts to improve the systems of governance by strengthening institutional capacities and help

b t i i l t li f

INFRASTRUCTURE • Power supply, water & sanitation, transportation and communication accounted for 75% of the 2007

approval

GOVERNANCE

member countries implement policy reforms

• Provide support for the African Peer Review Mechanism through technical and financial assistance
• Focus on strengthening transparency and accountability in public resources management

PRIVATE SECTOR INVESTMENTS

• Engine of growth for sustainable economic development
• Strategic focus: support private enterprises, strengthen financial systems, build competitive

infrastructure, promote regional integration and trade and improve investment climate

• Sevenfold increase in private sector operations from 2004 to 2007

REGIONAL INTEGRATION

• Increase competitiveness and productivity and allow for economies of scale
• Actively promote regional economic communities through cooperation, trade expansion & capacity

building

• NEPAD Infrastructure Project Preparation Facility in energy transportation and ICT sectors

9

NEPAD Infrastructure Project Preparation Facility in energy transportation and ICT sectors

• Connect Africa Initiative to bridge major gaps in ICT infrastructure across the continent

Private sector operations are the engine of growth for Private sector operations are the engine of growth for African economies in the drive to accelerate development

Approvals (in UA million) Sector Distribution (2003-2007)

1,000

800 1,000

Financial Services 42% Infra - structure 43%

Approvals (in UA million) Sector Distribution (2003-2007)

249 166 185 278

200 400 600 800 200

2003 2004 2005 2006 2007

Agri- business 1% Mining 14%

Support private enterprises Strengthen financial systems Build competitive infrastructure Improve investment climate Promote regional integration

10

enterprises systems infrastructure climate g and trade

Bank Group Overview Bank Group Overview

The Bank continues to expand the range

• f its products offering that meet client needs

Loan Products Loan Products Guarantees Guarantees Local currency lending Local currency lending Synthetic loans Synthetic loans Loan Products Loan Products Guarantees Guarantees Local currency lending Local currency lending Full guarantees Full guarantees Menu of currencies: US Dollar Euro Yen Rand Menu of currencies: US Dollar Euro Yen Rand Direct lending in African currencies Direct lending in African currencies Partial credit guarantee Partial risk guarantee Partial credit guarantee Partial risk guarantee US Dollar, Euro, Yen, Rand Choice of interest rate Fixed, floating, variable US Dollar, Euro, Yen, Rand Choice of interest rate Fixed, floating, variable Risk Management Products Risk Management Products Currency swaps Other Financial Services Other Financial Services Equity Equity Currency swaps Interest rate swaps Caps and collars on interest rate swaps Commodity hedges Loan syndication Advisory services Equity participation through ordinary stocks, redeemable preferred stocks or debentures Equity participation through ordinary stocks, redeemable preferred stocks or debentures

11

Commodity hedges

Bank Group Overview Bank Group Overview

The eleventh replenishment of ADF demonstrates donor community’s support to and confidence in the Bank Group

3.55

2008 ADF XI

ADF Replenishments in UA

• Pledges of UA 3.6 billion by

donors and UA 2 billion of internally generated resources

1.33 1.76 1.91 2.49

1996 ADF VII 1999 ADF VIII 2002 ADF IX 2005 ADF X

Record Resources Envelope

• f UA 5.6

Record Resources Envelope

• f UA 5.6

internally generated resources (Advanced Commitment Capacity)

• Core operational activities:

Infrastructure, governance and regional integration

1.39 2.05 2.44 .33

1985 ADF IV 1988 ADF V 1991 ADF VI 1996 ADF VII

billion for ADF-11. billion for ADF-11.

regional integration

• Increased support to multinational
• perations: UA 950 million
• Enhanced engagement in fragile

0.27 0.61 1.00

1976 ADF I 1979 ADF II 1982 ADF III

• Enhanced engagement in fragile

states : UA 407 million

12

Bank Group Overview Bank Group Overview

Some ADF Results 2005-2007

Transportation 31.8 million people with improved access to Transportation 31.8 million people with improved access to Water 6 projects Water 6 projects Agriculture 282,229 hectares of land with improved water improved access to transportation improved access to transportation improved access to water resources and sanitation for 1.6 million people improved access to water resources and sanitation for 1.6 million people Education 81 436 teachers Education 81 436 teachers management infrastructures, 47 irrigation dams built or rehabilitated, 9.7 million farmers benefiting from million people million people Health 5.8 million people with improved Health 5.8 million people with improved Education 81,436 teachers trained, 8,480 classrooms constructed or rehabilitated, 6.8 million textbooks and teaching materials supplied, 4 8 illi il l Education 81,436 teachers trained, 8,480 classrooms constructed or rehabilitated, 6.8 million textbooks and teaching materials supplied, 4 8 illi il l farmers benefiting from interventions Microfinance 131,000 micro enterprises Microfinance 131,000 micro enterprises Power 701,031 Power 701,031 people with improved access to health services, 32 hospitals and 260 primary health care centers built or h bilit t d d 600 people with improved access to health services, 32 hospitals and 260 primary health care centers built or h bilit t d d 600 4.8 million pupils newly enrolled 4.8 million pupils newly enrolled Environment micro-enterprises established, 1.3 million people benefited from MF projects micro-enterprises established, 1.3 million people benefited from MF projects Roads 2,440 km of paved roads and 3,300 km of feeder roads upgraded households provided with new or improved access to electricity households provided with new or improved access to electricity rehabilitated and 600 health facilities equipped rehabilitated and 600 health facilities equipped Environment 547,368 hectares of land replanted, reforested or

13

pg electricity electricity landscaped

Bank Group Overview Bank Group Overview

The Bank Group’s selective focus coupled The Bank Group s selective focus coupled with leadership of key initiatives in the continent …

Debt Relief HIPC MDRI NEPAD Infrastructure Project Preparation Infrastructure Consortium MDRI PCCF Preparation Facility For Africa Making Finance Africa Water F ilit Multi Donor Water P t hi Rural Water Supply & S it ti Connect Africa Initiative to bridge gaps Work for Africa Facility Partnership Program Sanitation Initiative in ICT infrastructure

14

Bank Group Overview Bank Group Overview

Institutional reforms drive the Bank Group’s efforts towards increased effectiveness responsiveness and country focus increased effectiveness, responsiveness and country focus

• Strengthened human resources strategy to improve delivery capacity and efficiency
• New budget framework in place to foster efficiency and ensure predictability and strict alignment

RESOURCES MANAGEMENT &

between resource allocation and institutional priorities

• Streamlined policies and procedures, for greater accountability, coordination and effectiveness
• Process improvements with more decentralized operational decision making authority to improve

OPERATIONAL DELIVERY CAPACITY

Process improvements with more decentralized operational decision making authority to improve client responsiveness

• Bank presence established in 23 RMCs, increasing visibility and improving interaction and sustained

dialogue with national authorities and development partners

EFFECTIVENESS

dialogue with national authorities and development partners

• Country specific customized staffing defined to better address country needs, and portfolio

management, with field office staff increased by 73% from 2006 to 2007

COUNTRY PRESENCE MEDIUM-TERM STRATEGY

• Operational focus on infrastructure, governance, private sector and higher education
• Selectively contribute to broader development objectives such as agricultural development,

health and education for human resources development

• Increased emphasis on regional integration, Fragile States and Middle Income Countries

15

p g g , g

• Key crosscutting themes: gender, climate change and knowledge management

Bank Group Overview Bank Group Overview

Financial Profile Financial Profile

16

Financial Profile Financial Profile

Minimize exposure to risks not essential Minimize exposure to risks not essential to core business of providing development finance and related assistance

Credit ratings exposure

Counterparty credit risk

Match the currency composition

Exchange rate risk Investment portfolio of UA 5.3 billion

JPY GBP ZAR Others

Credit ratings, exposure limits and other risk mitigation measures Match the currency composition

• f assets with that of liabilities

and hedge the net asset position to minimize currency translation risk

EUR USD GBP

Safety cushion of at least

Liquidity risk

Protect the Bank’s

Interest rate risk

• ne year against market

disruption in the capital markets net interest margin from fluctuations in interest rates

As at 31 December 2007

17

Financial Profile Financial Profile

Multiple strategies and benchmarks p g for treasury asset management

AfDB Exposure by counterparty rating (%)

47

50

Prudent management Risk control Prudent management Risk control

As at 31 December 2007

30 40

19 12

20

3 1 1 4

5 5 2

10

• Sov. and Supra.

Corporate

• Fin. Instit.

ABS Others

18

• Sov. and Supra.

Corporate

• Fin. Instit.

ABS Others A AA AAA

Financial Profile Financial Profile

H lth it l iti i l d i it l Healthy capital position is leveraged in capital markets to finance development related assistance

100 100 100 100 100

90 100

13,875

As at 31 December 2007

Leverage Capital %

62 58 60 59 55

50 60 70 80 90 20 30 40 50

2 176 5,466

10

2003 2004 2005 2006 2007 Debt/Usable Capital (%) Policy Limit (%) 2,176

Paid-in Capital AAA Callable Capital Other Callable Capital

19

Note The Bank defines “usable capital” as the sum of paid-in capital, reserves, and callable capital of countries rated double-A and above

Financial Profile Financial Profile

Quality of the operational portfolio continues to improve Quality of the operational portfolio continues to improve

Outstanding Loans in UA billion Risk Rating

Risk is managed within an i t t d f k f dit Risk is managed within an i t t d f k f dit

0 24

6.0 7.0

4.0 4.5

Outstanding Loans in UA billion Risk Rating

integrated framework of credit policies, guidelines and processes through a systematic credit assessment based on a uniform i t l dit i k ti l integrated framework of credit policies, guidelines and processes through a systematic credit assessment based on a uniform i t l dit i k ti l

0.4 0.4 0.24 0.4 0.4 3.0 3.0 3.1 3.1 2.8

4.0 5.0

3.0 3.5

internal credit risk rating scale internal credit risk rating scale

5.4 4.9 5.2 5.0 5.2

1 0 2.0 3.0

1 5 2.0 2.5

Risk Rating 1 2 3 - 4 5 - 6 7 - 10 Risk Class Very low risk Low risk Moderate risk High risk Very high risk

0.0 1.0

2003 2004 2005 2006 2007 1.0 1.5

Sovereign Non-Sovereign WARR

Risk Capital Require d

25% 28% 35% 50% 75%

Rating 1 2 3 4 5 6 7 10

20

Note: WARR: Weighted Average Risk Rating

g g

Financial Profile Financial Profile

Significant transfers to reserves have reinforced the Significant transfers to reserves have reinforced the risk bearing capacity and strengthened financial performance

Risk Capital (in UA million) Uses of Risk Capital

469

4,000 4,500 5,000

As at 31 December 2007

p ( ) p

Unused risk i l

1,507 2,187 2,266 2,531 2,305 469

2 000 2,500 3,000 3,500

Sovereign portfolio 37% capital 56% Non Treasury

2,023 2,066 2,112 2,147 2,176

500 1,000 1,500 2,000

Non- sovereign portfolio 5% Treasury 2%

Solid foundation which allows the Bank to support

2003 2004 2005 2006 2007

Paid-in capital Reserves Loan loss provisions

Based on the effects of the revised IFRS effective 1 January 2005 the nature of loan loss provisions has changed from

Solid foundation which allows the Bank to support its current risk and the expected expansion of its development financing activities

21

Based on the effects of the revised IFRS, effective 1 January 2005, the nature of loan loss provisions has changed from ‘general’ to ‘specific’; accordingly, loan loss provisions represent a reduction in the exposure to the relevant country, not a source of risk capital. Therefore, the main components of the Total Risk Capital are Paid-in Capital and Reserves

Financial Profile Financial Profile

Strong results and a sound financial base allow Strong results and a sound financial base allow for higher income distribution to development initiatives

Income Allocation (%) 2007 Income Allocation (UA 248 million)

83 100

(%) ( )

%

ADF windfall 84 Surplus Account 20.7

78 65 65 64 60 80

Other Initiatives 16.3 HIPC Trust Fund 15

20 40

ADF regular 25 DRC Account MIC Trust Fund 25

20 2003 2004 2005 2006 2007 Proportion of Allocable Income allocated to Development

(1)

Note: Subject to approval by the Board of Governors

Account 62 22

Proportion of Allocable Income allocated to Development Initiatives

Financial Profile Financial Profile

Financial ratios allow for portfolio expansion

AfDB Aaa/AAA ADB Aaa/AAA EBRD Aaa/AAA IBRD AAA/Aaa IADB Aaa/AAA NIB Aaa/AAA

Gross debt/Adjusted shareholders Gross debt/Adjusted shareholders equity (%) 134 217 140 234 232 674 Broad Risk bearing capacity

(1)/Development Related Exposure

186 116 156 120 130 54

A

p p Usable capital (2)/ Risk asset(3) (%) 114 80 387 82 48

• B

C

A Standard & Poor’s Supranationals Report, Special Edition, September 2007, data as of 31 December 2006, except IBRD,FY2007 B Moody’s, data as of December 2006, except IBRD, FY 06/2007 C Fitch, data as of December 2006, except IBRD, FY 06/2007

5 largest exposure to equity (%) 81 184 6 108 165

• Sources:

C

23

C tc , data as o ece be 006, e cept , 06/ 00 (1). Defined as reserves for losses plus adjusted shareholders’ equity and “AAA” callable capital (2). Moody’s define usable capital as “all capital related payments plus reserves and unallocated net (3). Risk assets are defined as loans to countries considered below investment grade by Moody’s

Financial Profile Financial Profile

Capital Markets Activities

C i l M k A i i i C i l M k A i i i

24

Capital Markets Activities Capital Markets Activities

Established track record that allows access to funds at lowest possible cost

• Track record of 6 US$ global bond issues since 2002 facilitating convergence in pricing to
• Strategically important as the Bank can issue in benchmark size

GLOBAL

peer group

• Latest US$ 500 million global in February 2008 achieved broad investor distribution and

lowest sub-LIBOR funding

DOMESTIC MARKETS

Strategically important as the Bank can issue in benchmark size

• Issues in AUD, CAD, CHF, GBP and ZAR domestic bond market
• Kauri bond issue in New Zealand in February 2008 has reinforced this strategy
• Increasing focus on African currencies

PRIVATE PLACEMENTS

• Arbitrage driven market
• Strong investor recognition established over the years through demonstrated

responsiveness and flexibility

• Transactions targeted at retail Japanese investors
• The Bank is working closely with Japanese securities houses to increase flow of such

transactions

URIDASHIS

25

Borrowing Program in capital markets for 2008 of UA 1.2 billion

Capital Markets Activities Capital Markets Activities

Local Currency Initiative Local Currency Initiative

LONG-TERM OBJECTIVE

• To raise medium to long-term capital in the currencies of African countries to fund the

Bank’s operations in these local currencies

• Contribute to debt market deepening by extending the maturity of available debt

instruments and providing an alternative high quality credit in the market

• Projects financed locally will benefit from the elimination of foreign exchange risk

SHORT TERM

• Increase the visibility and reinforce confidence of investors in Africa’s capital markets

SHORT-TERM OBJECTIVE

• Promote international best practices and acceptance
• Transfer of knowledge and experience to local players and raise their profile

Two-pronged approach of focusing on issuing debt either in the domestic debt market (on-shore) or in the eurobond market (off-shore)

26

Capital Markets Activities Capital Markets Activities

Th B k’ hi t i th k t i f The Bank’s achievements in these markets reinforce confidence of investors and act as catalyst for other issuers

2006 2007

• US$ 100 million linked to NGN due Jan 08
• US$ 100 million linked to NGN due May 10
• BWP 300 million Eurobond The first ever

transaction that made the Botswana Pula a settlement currency through International clearing h

• US$ 15 million linked to TZS due May 09
• US$ 10 million linked to KES due May 08
• US$ 40 million linked to GHS due May 09
• ZAR 1.2 billion bond in the domestic South African

houses

• US$ 10 million linked to TZS The first ever

transaction by a supranational issuer linked to the Tanzanian Shilling

• US$ 45 million linked to GHC The first ever

market due December 2012 – first ever transaction by a supranational and also the Bank’s first transaction in a African domestic bond market $ transaction by a supranational issuer linked to the Ghanaian Cedi

Transactions must make economic sense for all parties

27

Transactions must make economic sense for all parties –

• ff-shore transactions remain dependent on international investors’ risk appetite

Capital Markets Activities Capital Markets Activities

Capacity building efforts in African bond markets

Launch of African Financial Markets Initiative in 2008 which consists of two complementary pillars African Financial Markets Database

To improve availability and transparency of data

African Domestic Bond Fund

To reduce dependence of African countries on foreign To improve availability and transparency of data relating to African fixed income markets To reduce dependence of African countries on foreign currency denominated debt and encourage the deepening of African bond markets MAY 2007 African Development Bank launches debut publication on African fixed income markets

A guidebook that presents a concise and very clear account

• f the state and nature of the fixed income market in each of

the 53 African countries, the existing financial instruments and the status of the regulatory environment

28

Capital Markets Activities Capital Markets Activities

THE AFRICAN DEVELOPMENT BANK

HIGHEST CREDIT RATINGS CREDIT RATING

FINANCIAL GROWING

CREDIT RATINGS DRIVERS

OUTLOOK REMAINS POSITIVE OPERATIONAL IMPACT Strike a careful balance between Committed shareholders AAA Moody’s AAA J C dit R ti Increase in

• perations and

balance between maximizing development impact and maintaining long- Preferred creditor status Prudent financial management and Japan Credit Rating Agency AAA p relevance to member countries Lead and a ta g o g term financial soundness policies Strong liquidity and capital position Franchise value Fitch Ratings AAA Standard & Poor’s contribute to development initiatives in the continent

… is the AAA rated supranational organisation focused entirely on development in Africa

29

entirely on development in Africa

Capital Markets Activities Capital Markets Activities

More information on the Bank Group is available at www.afdb.org

• Financial and Operational

Analysis

• Documentation for Debt

Programs

• Rating Agency Reports
• Financial Products for Borrowers
• Annual Report

Investor Contact: mtndesk@afdb.org

30

Appendix

African Economic Outlook

4 A

31

APPENDIX A

ca co o c Out oo

Africa’s GDP growth rate has exceeded 5.5% since 2004

Real GDP Growth (%)

25 countries achieved GDP growth rate of above 5% 14 t i hi d GDP

5.6 5.7 5.9 5.7 5.5 6.0

( )

14 countries achieved GDP growth rate between 3% to 5%

4.9 4.5 5.0 4.2 3 5 4.0 4.5 3.5 3.0 3.5 2001 2002 2003 2004 2005 2006 2007

D i

32

Drivers Macroeconomic stability – Debt relief – Global expansion

APPENDIX A

Debt relief initiatives have drastically reduced debt in the continent presenting a new opportunity to countries

13.6 14.0

55 4

Debt Service (% of exports) External Debt to GDP (%)

11.2 13.0 11 0 12.0 13.0

45.1 50.9 55.4 45.0 55.0

9.9 10.3 9.0 10.0 11.0

34.9 35.0

6.3 7.0 8.0

22.7 26.2 25.0

33

6.0 2002 2003 2004 2005 2006 2007

15.0 2002 2003 2004 2005 2006 2007

APPENDIX A

Despite negative terms of trade real export growth was Despite negative terms of trade, real export growth was high and current account remained in surplus in 2007

Terms of Trade and Real Export Growth (%)

8.2 7.8 7 5 8.6 14.8 6.1 9.0 12.0 15.0 18.0 1.3 0.8 5.9 2.8 7.5 (1.7) 2.8 0.8 (3.3) (6.0) (3.0) 0.0 3.0 6.0 2001 2002 2003 2004 2005 2006 2007 (6.0) 5.3 3 7 5.0 6.0

Current Account as % of GDP

2.9 3.7 1.4 0.5 0.4 0 0 1.0 2.0 3.0 4.0

34

(1.1) (2.0) (1.0) 0.0 2001 2002 2003 2004 2005 2006 2007 APPENDIX A

Fiscal balance has remained sound while Fiscal balance has remained sound while improved economic performance and sustained oil price increases have increased pressure on inflation

5.0 12.0

Fiscal Balance as % of GDP Inflation (%)

4.2 2.8 2.8 3.0 4.0 10.9 10.0 11.0 (0.1) 0.0 1.0 2.0 7.9 8.2 7.6 8.1 8.0 9.0 (2.0) (2.5) (2.0) (1.0) 2001 2002 2003 2004 2005 2006 2007 7.6 6.6 6.0 7.0

35

(2.7) (2.5) (3.0) 2001 2002 2003 2004 2005 2006 2007

APPENDIX A

Official Development Assistance flows to Africa have risen from the low set in 2000 but remain well below the 0.7% GNP target

1990 2006 (US$ billi )

41.3 40.0 45.0

1990 - 2006 (US$ billion)

33.7 27.5 25.1 23 9 24 3 24 4 30.0 35.0 20.2 15.8 15 15.6 17.2 17.1 18.9 21.3 22.5 23.9 20.7 24.3 24.4 15.0 20.0 25.0 5.0 10.0

36

0.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

APPENDIX A

Appendix

Bank’s Financial Statements

4 B

37

APPENDIX B

a s a c a State e ts

AfDB: Statement of income and expenses (UA million)

Years Ended 31 December 2007 2006 2005 (1) 2004 (2) 2003 (2) 2002 (2)

Operational Income and Expenses Income from Loans 341.94 329.03 324.23 323.11 325.46 414.82 Income from Investments and Related Derivatives 238.40 213.82 155.37 123.57 99.77 74.01 Income from Others debt securities 4.97

• Total Income from Loans and Investments

585.31 542.85 479.60 446.68 425.23 488.83 Interest and Amortized Issuance Costs (268.02) (245.41) (218.52) (230.75) (219.59) (258.69) Net Interest on Borrowing Related Derivatives (62.71) (35.14) 1.40 33.67

• Unrealized Gain/(Loss) on Fair Valued Borrowings and Related Derivatives

21.24 10.67 (30.77) (7.70) (81.65) 37.20 Unrealized Gain/(Loss) on Non-Fair Valued Borrowings and Others 34.77 21.07 7.22 (10.35)

• Provision for Impairment on Loan Principal and Charges Receivables

69.95 (51.69) 13.85 (53.86) 21.51 (3.49) Provision for Equity Investments (7.22) (34.74) 0.75 3.31 (1.68) (0.06) Translation (Losses)/Gains (8.89) 4.10 1.58

• Other Income

7.32 23.74 15.73 7.40 2.61 1.25 Net Operational Income 371.75 235.45 270.84 188.39 146.43 265.04 Administrative Expenses (42.22) (36.86) (41.67) (37.61) (45.14) (32.27) Depreciation – Property, Equipment and Intangible Assets (5.37) (6.23) (7.10) (6.42) (5.57) (5.51) Sundry (Expenses)/Gains (493) 1.68 (0.74) (0.84) 0.98 (1.20) Total Other Expenses (48 09) (41 41) (49 52) (44 87) (49 73) (38 98) Total Other Expenses (48.09) (41.41) (49.52) (44.87) (49.73) (38.98) Income Before Transfers of Income Approved by the Board of Governors 323.67 194.03 221.32 143.52

• Transfer of Income Approved by the Board of Governors

(119.90) (139.20) (144.00) (114.64)

• Net Income

203.77 54.83 77.32 28.88 96.70 226.06

38

Notes

• 1. 2005 has been restated
• 2. The information presented above for 2004 and prior years have not

been restated and therefore are not comparable to 2005 and 2006

1 UA = 1 SDR = 1.35952 USD (2002) = 1.48597 USD (2003) = 1.55301 USD (2004) = 1.42927 USD (2005) = 1.50440 USD (2006)= 1.58025 USD (2007) APPENDIX B

AfDB: Balance sheet highlights (UA million)

Y E d d 31 D b 2007 2006 2005 2004 (1) 2003 (1) 2002 (1) Years Ended 31 December 2007 2006 2005 2004 (1) 2003 (1) 2002 (1)

Assets Due from Banks 95.53 129.33 70.34 43.80 66.54 89.18 Demand Obligations 3.80 3.80 3.80 3.91 3.80 6.83 Investments 5.303.54 6,093.36 5,155.05 4,435.42 4,135.88 1,972.62 Derivative Asset 425.34 273.31 285.93 274.79 253.90 149.11 Non Negotiable Instruments 15 38 20 38 25 90 31 18 41 81 57 48 Non-Negotiable Instruments 15.38 20.38 25.90 31.18 41.81 57.48 Accounts Receivable 595.87 600.97 556.38 397.48 203.91 265.18 Outstanding Loans 5,540.09 5,290.95 5,512.44 5,640.43 5,612.24 5,967.66 Accumulated Provision for Loan Losses (196.02) (214.18) (194.60) (213.59) (469.09) (491.66) Equity Participations, Net 189.25 119.12 168.70 160.60 164.22 163.84 Other Debt Securities 94.62

• Other Assets

15.03 14.95 16.98 18.14 21.34 16.69 Other Assets 15.03 14.95 16.98 18.14 21.34 16.69

12,082.44 12,332.00 11,600.90 10,792.16 10,034.55 8,196.93

Liabilities, Capital and Reserves Accounts Payable 584.34 648.96 498.22 377.17 194.77 232.34 Securities Sold Under Agreements to Repurchase and Payable for Cash Collateral Received 0.00 877.83 466.96 9.30 113.91 0.00 Derivative Liability 591.05 481.94 317.25 513.89 396.09 61.83 Borrowings 6,198.87 5,870.47 5,940.40 5,638.89 5,799.11 4,455.04 Borrowings 6,198.87 5,870.47 5,940.40 5,638.89 5,799.11 4,455.04 Capital 2,336.46 2,303.06 2,263.45 2,213.51 2,168.50 2,125.07 Cumulative Exchange Adjustment on Subscriptions (160.07) (155.74) (151.76) (147.20) (145.33) (141.99) Reserves 2,531.80 2,305.48 2,266.39 2,654.58 1,959.21 1,919.47 Cumulative Currency Translation Adjustment Reserve

• (467.97)

(451.71) (454.83)

12,082.44 12,332.00 11,600.90 10,792.16 10,034.55 8,196.93

39

1 UA = 1 SDR = 1.35952 USD (2002) = 1.48597 USD (2003) = 1.55301 USD (2004) = 1.42927 USD (2005) = 1.50440 USD (2006) = 1.58025 USD (2007)

Notes

• 1. The information presented above for 2004 and prior years have not been restated and therefore are not comparable to 2005 and 2006

APPENDIX B