AfDB Tackles World Bank President Over Comments on Continent’s Debt Profile

The African Development Bank (AfDB) has faulted a recent comment by the President of the World Bank, David Malpass.

Naija News recalls that Malpass was quoted as saying some multilateral development banks, including the AfDB, have a tendency to lend too quickly and in the process, add to the continent’s debt problems.

Malpass criticism of the AfDB specifically concerned Nigeria and South Africa, and he called for “greater coordination among international financial institutions to coordinate lending and maintain high standards of transparency.

However, the AfBD in a statement, said Malpass comment was inaccurate and not fact-based.

The Bank said it provides a strong governance program for its regional member-countries that focuses on public financial management, better and transparent natural resources management, sustainable and transparent debt management and domestic resource mobilisation.

“We have spearheaded the issuance of local currency financing to several countries to mitigate the impacts of foreign exchange risks, while supporting countries to improve tax collection and tax administration, and leveraging pension funds and sovereign wealth funds to direct more monies into financing development programs, especially infrastructure,” he added.

The statement explained that the AfDB’s Africa Legal Support Facility (ALSF) supports countries to negotiate terms of their royalties and taxes to international companies, and terms of their non-concessional loans to some bilateral financiers.