Treasury minister Njuguna Ndung’u to head AfDB board

Kenyan Professor Nguguna Ndongo assumed the presidency of the Board of Governors of the African Development Bank, succeeding the Egyptian Hassan Abdullah.

Professor Ndongo, Kenyan Cabinet Secretary for Treasury and National Planning, will chair the board of the multilateral lender for one year, during which time he will host the annual general meeting in Nairobi scheduled for May next year.

The former Central Bank of Kenya governor assumed the premiership at a ceremony in Sharm El-Sheikh, Egypt, on Friday.

The head of the African Development Bank, which lends exclusively to African countries, rotates among the member states of Africa’s First Development Finance. The Council constitutes a Governor and an Alternate Ruler who are appointed by each member country and who exercise voting powers in proportion to their country’s contribution.

In his acceptance speech, Professor Ndongo said Nairobi would support the African Development Bank’s drive to expand access to financing, especially as alternative sources of financing dried up globally.

“The need for high-quality infrastructure to attract private investment in our countries puts pressure on financing requirements on already tight budgets, hence the need to innovate in ways to mobilize resources to finance infrastructure development and enhance the profitability of private investment.

“The role of development institutions is crucial in mobilizing the resources required to mitigate the negative effects of geopolitical tensions, the COVID-19 pandemic, food security and climate change,” he said.

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African member states own 60 percent of the African Development Bank, while the United States, Japan and India, among others, hold the remaining 40 percent stake. Nigeria is the largest contributor, with about 10 percent.

The higher the quota, the more ballots the state gets to vote.