Crucial Leadership Change at African Development Bank Amid Funding Challenges

The African Development Bank (AfDB) convenes in Ivory Coast this week to elect a new president, facing unprecedented funding cuts from the United States. The U.S. plans to cut $555 million from the AfDB and its African Development Fund, crucial financing channels for the continent's poorer nations.

Hannah Ryder, founder of Development Reimagined, emphasized that this election is a significant test for the new leader. Countries in the region, struggling with high debt, are seeking new funding sources for their development projects. AfDB, a major development finance institution worth $318 billion, is primarily owned by African states, with Nigeria being the largest shareholder.

The new president will need to address funding challenges by possibly persuading the U.S. to reinstate cut funding, seeking contributions from non-regional members, or encouraging African states to increase their contributions. Current candidates hail from South Africa, Senegal, Zambia, Chad, and Mauritania. The election winner, requiring major support from both African and non-African member states, will be announced Thursday.

(With inputs from agencies.)