The Revised Georgetown Agreement: An Overview
The Revised Georgetown Agreement, signed on March 31, 2021, is one of the most significant developments in the history of the African Development Bank Group (AfDB). This historic agreement came after several years of discussion and consultation among AfDB member countries to review the bank`s governance structure.
What Is the Georgetown Agreement?
Before we delve into the revised version of the agreement, it`s essential to understand what the original Georgetown Agreement was. The Georgetown Agreement is an international treaty that established the African Development Bank Group (AfDB) in 1964. It governs the bank`s operations and outlines the roles and responsibilities of its members, including the founding members of the bank and the new members that joined later.
The Georgetown Agreement created the African Development Fund (ADF) and the African Development Bank (ADB), which are two of the AfDB`s principal organs. The ADF provides concessional financing to low-income countries, while the ADB provides loans and grants to governments and private sector entities in Africa.
The Importance of the Revised Georgetown Agreement
The Revised Georgetown Agreement marks a significant milestone in the AfDB`s history. The agreement strengthens the bank`s governance structure, enhances its financial resources, and increases its stakeholder engagement. The agreement also reinforces the bank`s focus on promoting sustainable development in Africa.
One of the critical changes in the revised agreement is the increase in the AfDB`s authorized capital. The authorized capital was increased from $93 billion to $208 billion, giving the bank more financial resources to support its operations and initiatives. The increase in authorized capital also supports the bank`s ambition to become a premier development finance institution in Africa.
Another important change is the increase in member countries` voting power at the AfDB. The revised agreement provides greater voice and representation to African countries on the bank`s board of directors, which will enhance the bank`s accountability to its stakeholders. The agreement also strengthens the bank`s governance structure by establishing clear rules and procedures for the election and appointment of the bank`s leadership.
Conclusion
The Revised Georgetown Agreement is a testament to the AfDB`s commitment to promoting sustainable development in Africa. The agreement enhances the bank`s financial resources, strengthens its governance structure, and reinforces its focus on promoting sustainable development on the continent. The revised agreement is a crucial step towards achieving the AfDB`s vision of a prosperous, integrated, and peaceful Africa.