AfDB’s Tshabalala on how to address Africa's development needs

The African Development Bank (AfDB) has shown remarkable financial resilience despite the challenging year that was 2020. The Vice President for Finance at AfDB, Bajabulile Swazi Tshabalala, highlighted in an interview with CNBC Africa's Kenneth Igbomor that the bank's net income grew by an impressive 57% from 2019. Tshabalala emphasized the importance of overcoming the COVID-19 pandemic in Africa, noting the low vaccination rates on the continent compared to the rest of the world. She stressed the need for a concerted effort to vaccinate as many people as possible to ensure the continent's recovery. The AfDB is actively collaborating with member countries to mobilize support for vaccinations and therapeutics to combat the pandemic. Additionally, the bank is working with global partners to assist countries in the region facing challenges with their debt. Tshabalala remarked that the pandemic exposed weaknesses in the region, especially in healthcare and food security. AfDB's key priorities moving forward include enhancing healthcare preparedness for future pandemics and focusing on food security through initiatives like 'Feed Africa'. The bank will also expand financing in critical areas to meet the Sustainable Development Goals (SDGs) in Africa, while prioritizing gender equality, governance, resilience, and climate change. Tshabalala acknowledged the impact of last year's increased development needs due to the pandemic, but highlighted that AfDB's financial performance in 2020 was better than the previous year. Despite countries in the region facing downgrades, AfDB recorded significant growth in net income and disbursed approximately five billion. The bank swiftly responded to countries in distress through its COVID-19 response facility. Allocable income for priority initiatives and reserves saw a 26% increase, attributed to lower impairment provisions on loans and reduced administrative expenses. Tshabalala credited the bank's ability to maintain a strong financial performance amidst challenges by adapting to remote work and cost-saving measures. AfDB's resilience in supporting African countries during crises underscores its commitment to driving sustainable development and economic growth on the continent.