US Nominee for World Bank Presidency Visits Africa

The United States’ nominee for World Bank Group President visited Africa this week making a brief stop at the African Development Bank (AfDB) in Abidjan as part of a global tour as he looks to drum up African support for his candidacy. Having received the endorsement of the US, the World Bank’s biggest shareholder, Indian-born US business executive Ajay Banga is odds-on favourite to replace outgoing President David Malpass, who will be stepping down from the institution in June.

Ajay Banga
Ajay Banga

Former Mastercard CEO Banga used his visit to the AfDB headquarters, which came less than a fortnight after a recommendation from African Business columnist Hannah Ryder that he should visit the institution – to talk up ties between the World Bank Group and the AfDB. Banga highlighted three major issues of significance to his leadership campaign – inequality, tension between humanity and nature, and “the tendency to apply short-term solutions to long-term problems.”

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AfDB President Akinwumi Adesina welcomed Banga’s call for a regenerated partnership, and said that there was a need for a new way of working between the World Bank and the AfDB. He also renewed his calls for radical climate action – a key issue that the next World Bank President will be expected to address after critics accused outgoing President David Malpass of harbouring climate-sceptic views.

Banga’s visit appeared to be an immediate response to suggestions that he should visit Africa to learn more about the priorities that the institution must tackle. Critics have contended that the institution – historically dominated by the US – is insufficiently representative of the developing world governments that it must work closely with on projects. In late February, Hannah Ryder, the CEO of Development Reimagined, argued that Banga should visit the AfDB as soon as possible to learn about its infrastructure investment strategies in Africa.

“Over the 2019-20 fiscal year (mostly before the Covid-19 pandemic), the World Bank disbursed $14.5bn to Africa, but only a small proportion of this went to building new infrastructure. In comparison, the AfDB disbursed $5.1bn, the vast majority of which went to infrastructure,” she wrote.

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Ryder argues that the AfDB’s staff is more diverse, introducing different theories about development, and its board structure is more recipient-dominated – all of which the Banga could take on board. Banga’s visit to Abidjan was thus a positive start to his likely tenure, but more engagement will be required if the Bank is to embrace new ways of working in Africa.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry