Maarg Manthan · Topic 6.7

African Development Bank

International Relations & Places in News › International Financial and Economic Institutions · Topic 6.7

The African Development Bank, AfDB, is a multilateral development finance institution established in 1964 to promote economic development and social progress in Africa. It began operations in 1966 and has its headquarters in Abidjan, Cote d'Ivoire. Its membership includes 54 African countries and 27 non-African countries, with India a non-regional member since 1983. Sidi Ould Tah of Mauritania became President in September 2025, succeeding Akinwumi Adesina. The Group has three arms: the Bank, the African Development Fund and the Nigeria Trust Fund.

5 min read · UPSC Prelims · International Relations · International Financial and Economic Institutions

At a Glance

Established 1964; operations from 1966
Headquarters Abidjan, Cote d’Ivoire
President Sidi Ould Tah, since September 2025
Members 54 regional and 27 non-regional
India Non-regional member since 1983
Exam link UPSC Prelims, International Relations: International Financial and Economic Institutions

Where Does It Fit?

This is the seventh topic of the macro on international financial and economic institutions. The AfDB is the main development bank of Africa, and it ties into India’s growing economic partnership with the continent. Previous topic: BRICS summit, 2014 Headquarters Shanghai, China President Dilma Rousseff (Brazil) Founding members Brazil, Russia, India, China, South…">New Development Bank (NDB/BRICS Bank). Next topic: Bank for International Settlements (BIS).

What Is the AfDB?

Origin: the agreement establishing the bank was signed in 1963 and entered into force in 1964. Lending began in 1966, and only African countries were members at first.
Opening to others: non-regional countries were admitted from 1982, which is when India and others joined. India became a member in 1983.
Headquarters: Abidjan. The bank was moved temporarily to Tunis from 2003 because of unrest in Cote d’Ivoire and returned in 2014.
Presidents: Akinwumi Adesina of Nigeria served from 2015 to 2025, and Sidi Ould Tah of Mauritania, a former head of the Arab Bank for Economic Development in Africa, took office in September 2025.
Three windows: the African Development Bank for middle-income countries, the African Development Fund for concessional loans and grants to the poorest, and the Nigeria Trust Fund.

What Does It Do and How Does India Fit?

Area	Detail
Priorities	The earlier High 5 priorities were light up and power Africa, feed Africa, industrialise Africa, integrate Africa and improve the quality of life of Africans. The new leadership is shaping its next strategy
Sectors	Power, transport, agriculture, water, regional integration and private sector development
Climate	It is a major channel for climate finance for Africa and has backed solar and the Great Green Wall initiatives
India’s membership	India contributes to the African Development Fund and has been a non-regional member since 1983
India-Africa link	India and the AfDB have worked together on lines of credit, and the Bank held its Annual Meetings in India in 2017 in Gandhinagar, Gujarat, where the Asia-Africa Growth Corridor vision was announced
Cooperation	Joint work between Indian exporters and the Bank in solar, health and agriculture, as part of the India-Africa Forum Summit process

What Else Should You Remember About the AfDB?

Governance: the Board of Governors is the highest body, and regional members must hold at least two-thirds of the voting power, which keeps the bank African-led.
Funding: it raises money by selling bonds and has a top credit rating. The African Development Fund is replenished every three years by donors.
Other bodies: the African Export-Import Bank, based in Cairo, is a separate institution, and should not be confused with the AfDB.
Africa Investment Forum: a platform launched by the bank to bring investors and projects together.
Regional reach: its work covers all five regions of the continent, and it runs field offices in most member countries to speed up project supervision.
Partnerships: it cooperates with the African Union and the regional economic communities, and supports the African Continental Free Trade Area, which is meant to create a single market.
Parallel institutions: there is also an Islamic Development Bank and the New Development Bank, which has an Africa regional centre.

What Are the Debates?

Africa’s gap: the continent needs large infrastructure investment, and the Bank’s capital is small compared with the need. A capital increase of 2019 doubled its base to about 208 billion dollars.
Debt: many African countries face high debt service, and the Bank is part of efforts at restructuring, along with the G20 and the IMF. The African Union’s entry into the G20 in 2023 is explained in Group of 20 (G20) and India’s G20 Presidency.
Competition: China, Gulf states, Turkey and the European Union are active in the continent, and India has to compete for influence, as in India-Africa Relations: India-Africa Forum Summit, Pan-African e-Network, Lines of Credit.
Governance: a 2021 allegation against the previous President was cleared by an independent review, and the episode raised concerns on internal governance.

As an analytical point, the AfDB is a useful partner for India because it knows African projects and procurement. Using its channels for co-financing, training and capacity-building can extend India’s development partnership while sharing risk.

Why Is This Topic Important?

Facts HQ and president asked
India Africa partnership
Link Regional banks set

What Came Next?

The next topic covers the Bank for International Settlements. Next topic: Bank for International Settlements (BIS).

Key People and Terms

AfDB African Development Bank
ADF African Development Fund
Regional member African member country
Non-regional member Member from outside Africa
High 5 Earlier five-priority strategy
Replenishment Donor refilling of a fund

Exam Corner

Points to Remember

Established 1964; HQ Abidjan.
54 African and 27 non-African members.
India joined in 1983.
President since 2025: Sidi Ould Tah.
Annual Meetings 2017 in Gandhinagar.

Do Not Confuse With

AfDB and Afreximbank Development bank in Abidjan versus trade bank in Cairo
AfDB and AIIB African bank versus Asian infrastructure bank
Bank and Fund Market-rate window versus concessional window

Memory Hook

Sixty-four in Abidjan, Africa leads the vote; eighty-three India came, and Gandhinagar hosted the meet.

Mains Angle

Questions ask about India-Africa cooperation. These points add depth.

Role Africa’s development bank
India Partner and member
Competition Other external powers

A Question You May Face

An original practice question, not a past paper question.

“Discuss how multilateral institutions such as the AfDB can support India’s development partnership with Africa.”

How to Answer

AfDB Profile.
Africa Needs and gap.
India Membership and links.
Way forward Co-financing.

GS Relevance

Prelims: HQ, year, president, India's membership, windows. GS Paper 2: India-Africa relations; international institutions.

Frequently Asked Questions

Where is the African Development Bank headquartered?

The African Development Bank is headquartered in Abidjan, Cote d'Ivoire. It was established in 1964, began lending in 1966, and temporarily operated from Tunis between 2003 and 2014 before returning to Abidjan after the political situation stabilised.

Is India a member of the African Development Bank?

India has been a non-regional member of the African Development Bank since 1983 and contributes to its concessional arm, the African Development Fund. The Bank held its 2017 Annual Meetings in Gandhinagar in India, where the Asia-Africa Growth Corridor was presented.

Who heads the African Development Bank?

Sidi Ould Tah of Mauritania took office as President of the African Development Bank in September 2025, succeeding Akinwumi Adesina of Nigeria, who served two five-year terms from 2015. The President is elected by the Board of Governors for a five-year term.

What are the High 5 priorities of the AfDB?

The High 5 priorities were the strategic focus of the bank under Akinwumi Adesina: light up and power Africa, feed Africa, industrialise Africa, integrate Africa and improve the quality of life for the people of Africa. A new strategy is expected under the current leadership.

What is the African Development Fund?

The African Development Fund is the concessional lending arm of the African Development Bank Group, set up in 1972. It offers grants and low-interest loans to the poorest African countries and is funded by donors, who replenish it every three years.

PYQ Practice — Statement Analysis

1 The African Development Bank is headquartered in Abidjan.

True

It was founded in 1964.

2 India is a non-regional member of the AfDB.

True

It joined in 1983.

3 The AfDB is based in Cairo.

False

That is Afreximbank; AfDB is in Abidjan.

4 Only African countries can be members of the AfDB.