26TH AND 27TH ORDINARY GENERAL ASSEMBLY,
VALENCE-SPAIN, 26 MAY 2001
OFFICIAL RECORD

The Association of African Development Finance Institutions, held its 26th and 27th General Assembly in Valence, Spain on 26 May 2001.

The opening ceremony, the working sessions, the closing ceremony, were held at the Valence Congress Hall.

The official opening ceremony was presided over by Mr. Gershom M. Mumba, Chairman of the Association. Mr Gershom Mumba and Mr Omar Kabbaj, Guest of Honour, President of the African Development Bank, made opening statements.

The AADFI President, Mr Gershom Mumba, in his statement drew attention to the successes of the Association for the past years. These included restructuring of the Secretariat, construction of Headquarters building financed solely by the Association. Improved Financial Management leading to the paying off deficits and a positive balance as at 31 December 2000. Others achievements were institutional Co-operation leading to the granting of observer status by the World Bank Group, the mobilisation of financial and technical resources for training activities, and the co-publication of the AADFI Directory with a London-based private publishing firm free of charge for the Association.

As regards prospects, Mr Mumba stated that the completion of the Headquarters building and the provision of human and material resources, a strong foundation has been laid for the total consolidation of the autonomy of the Association. He however saw the need to rebuild the financial base of the Association which had been depleted as a result of the financing of the Headquarters building and increased arrears of membership contributions. He therefore proposed that:

1. The Association should consider proposals, which would assist members to pay their contribution arrears and encourage those having the means to make special donations.
2. The ADB should be requested to accelerate the implementation of its study on the strengthening of African DFIs, as a means to forestall loss of membership by the Association.
3. The Management of member-institutions should ensure that their institutions remain in the Association when they restructure or merge with other institutions. They should assist the Secretariat to recruit new member-institutions in their countries and encourage same to participate in the Association's activities.
4. Finally, the Association should consider addressing special Resolutions to the ADB and other Regional and Sub-Regional institutions in Africa for grants to the Association.

Further on the Study, he adjoined the Bank to ensure that the exercise is professional done since its conclusion would have profound impact on the way forward for the DFIs. Moreover, the position taken by the ADB on the Study will influence the attitude of African governments towards the DFIs.

In his address the ADB President Mr. Omar KABBAJ stated the challenges and opportunities offered by globalisation and requested African countries to take full advantage of it to transform their economies, through attracting FDI and other private capital. For an enhanced prospect of in flow, he advised that the gains of macroeconomic stability must be sustained, the banking system and capital markets strengthened. He lamented the deterioration in Africa's global trade share and appealed to the developed countries to eliminate the barriers that restrain expansion of Africa's exports.

He affirmed the relevance of national DFIs in contemporary Africa's development process, moreso that the private banking institutions are unable to meet fully the demand for term lending. He noted however the need for DFIs to restructure financially and operationally to be able to render the required services to the emerging private sector.

He hinted that the Study commissioned by the Bank on ways and means to strengthen the national DFIs will be concluded in June 2001; and a validation workshop will be held on it in September 2001.

In his closing remarks, the Chairman of AADFI thanked the meeting for giving him a second mandate to lead the Association. He assured that the DFIs and development financing will continue to be the focus of the Association activities. He thanked the ADB for their support for AADFI and the DFIs over the years.

In its deliberations, the General Assembly

1. Approved that the quorum for the 26th / 27th General Assembly shall be three-fifth majority of the members of the Association present who are up to date with their annual contributions, as proposed by the Secretariat.
2. Decided to approve the Financial Statements of the Association for the period 1st January to 31st December 1999 and for the period 1st January to 31st December 2000.
3. Decided to renew the contract of the external Auditors for one more year
4. 4 Approved the admission of the Social Action Trust Fund as an ordinary member of the Association