Global Development Banks Tackle AI, Climate Accounting and IFRS in Pretoria Talks

Fifteen of the world’s largest multilateral development banks (MDBs) have concluded three days of high-level discussions focused on artificial intelligence (AI), climate finance accounting, and new financial reporting standards, as part of the 14th Annual Forum of Chief Accountants of Multilateral Development Banks. The event was hosted at the African Development Bank’s (AfDB) Pretoria office and brought together top financial controllers and chief accountants from institutions that collectively manage trillions of dollars in global development finance.

Focus on Global Harmonisation

The forum was convened under increasing pressure from the G20 and international regulators for MDBs to harmonize financial reporting and accounting standards. Participating institutions included the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Islamic Development Bank (IsDB), the World Bank Group, and the host, African Development Bank.

Afef Bouabene-Kallel, Director of the AfDB’s Financial Control team, led the sessions, which addressed challenges and opportunities in aligning practices across MDBs.

“You’re creating genuine value for our organisations,” said Dr. Kennedy Mbekeani, AfDB’s Director General for Southern Africa, praising the collaborative spirit of the gathering.

Key Issues Discussed

1. International Financial Reporting Standards (IFRS 18): Experts examined how adoption of IFRS 18 will reshape MDBs’ financial reporting, aiming to improve comparability and transparency across institutions.

2. Climate Accounting and Risk Reporting: With climate finance under intense global scrutiny, the Partnership for Carbon Accounting Financials (PCAF) presented frameworks for consistent carbon accounting standards. These standards are increasingly vital as development banks are called upon to integrate climate-related disclosures into their financial statements.

3. Artificial Intelligence in Accounting: Nicolas Blin of Deloitte Paris led discussions on how AI is revolutionizing financial reporting and risk management. AI applications are enabling MDBs to streamline auditing, improve fraud detection, and enhance predictive risk analysis.

4. Sovereign Credit Risk and Preferred Creditor Treatment: Riadh Belhaj of the AfDB presented on technical aspects of sovereign credit risk, including debates around maintaining MDBs’ preferred creditor status in light of changing global financial conditions.

5. Sustainability Standards and Reporting Platforms:

   • Michael Child, Chief Accountant of the World Bank, showcased new sustainability reporting platforms aimed at improving disclosure and accountability.

   • Jingdong Hua, Vice-Chairman of the International Sustainability Standards Board (ISSB), briefed attendees on the evolving global framework for sustainability reporting, noting its impact on MDBs’ climate disclosures and fiduciary responsibilities.

Climate Finance at the Forefront

Climate-related accounting emerged as a dominant theme, with MDBs recognizing that climate risk disclosure is now integral to both financial credibility and development impact. Participants emphasized that harmonized approaches are essential to ensuring investors, stakeholders, and governments can trust the climate finance flows MDBs administer.

Building Professional Networks

The forum also strengthened professional networks among MDB accounting teams. The annual event is designed to share technical expertise, align standards, and foster collaboration, ensuring MDBs remain credible, transparent, and responsive to global challenges.

Looking Ahead

The Pretoria forum highlighted that MDBs are at a critical juncture, balancing traditional development finance roles with the new imperatives of digital transformation, climate accountability, and evolving international financial standards.

By integrating AI-driven tools, adopting IFRS 18, and aligning with sustainability and carbon accounting frameworks, MDBs are preparing to meet the dual challenge of financing development while delivering greater climate transparency and accountability.

The 14th forum concluded with a collective commitment to deepen collaboration and ensure MDBs remain trusted, forward-looking institutions in the global financial architecture.