Morocco Boosts Stake in African Development Bank with $32 Million Payment

The share of Morocco’s first payment is worth 23.44 units of account, or about $32 million, thus unlocking the allocation of its share of the new shares issued. To date, Morocco represents the second "regional" shareholder of the African Development Bank (AfDB), behind Nigeria which paid in July 2020, about $79 million, leading to the increase in its voting rights which were 9.37% in December 2019, reports Jeune Afrique.

The kingdom, for its part, held, as of December 31, 2020, a total of 5.46% of the voting rights in proportion to its participation in the capital, ahead of Egypt totaling 3.8%, South Africa 3.36%, and Algeria 3.3%. But a year ago, Cairo, Pretoria, Algiers and Abidjan were ahead of Rabat in the capital of the institution chaired by the Nigerian Akinwumi Adesina.

In addition, 11 other African countries including Benin, Burkina Faso, Kenya, Mauritius, Rwanda and Senegal have already made their payment. As for South Africa, it has made a partial payment. As for the other African shareholders, several countries including Egypt, Algeria, Tunisia and Togo will pay their share this year.

In addition to paying its participation as early as 2020, Morocco has also agreed to subscribe to a portion of the shares allocated to Botswana and the Seychelles, which have decided to accept half. In addition, nearly 60% of the institution’s capital is intended for regional shareholders and the rest for foreign shareholders including the United States, Japan, Germany, Canada and France, whose payments are expected in 2021.

However, according to AfDB forecasts, at the end of this new capital increase, the "ranking" of African shareholders should regain its former marks. Thus, Nigeria should drop from nearly 9% of voting rights, ahead of Egypt, Algeria, Côte d’Ivoire and Morocco, but only if the payments are made on time.