Role of the Funding Agencies in Africa

Africagateway is an online portal which helps you stay connected to all the tenders’ information online. The growth of various countries and sectors in Africa are dependent on many funding agencies. They play a vital role for the development of Africa as a whole.  

AFRICAN DEVELOPMENT BANK ADB: 

ADB is a financial institution comprising 53 African and 24 non-African countries which promotes economic and social progress in Africa through loans, equity investments and technical assistance. Structurally, the ADB Group includes the African Development Bank, the African Development Fund and the Nigeria Trust Fund. Established in 1964 and headquartered in Tunisia, the Bank has provided a cumulative $55 billion in loans and grants in the region.

The ADB has been praised for its role in the fight against HIV/AIDS on the African continent.  The ADB emphasizes large infrastructure projects at the expense of smaller, cheaper options that may produce more energy with greater benefit to the continent’s poor.

WORLD TRADE ORGANIZATION ( WTO ) :

The purpose of the WTO is to ensure that global trade commences smoothly, freely and predictably. The WTO creates and embodies the legal ground rules for global trade among member nations and thus offers a system for international commerce. WTO rules become a part of a country’s domestic legal system.

WTO from its side has taken various efforts for the development of the Continent, Africa. It has taken various steps in improving the performance of various sectors which directly reflect the growth of the country and the continent. The investment of WTO in Africa’s various projects has taken the country’s development to the next level.

INTERNATIONAL MONETARY FUND ( IMF) :

International Monetary Fund (IMF) is the most powerful international financial institution in the world. It is the major source of lending to African countries and uses the loans they provide as leverage to prescribe policies and dictate major changes in the economies of these countries.

The main task of the IMF is to maintain a dialogue with and among its member countries on the national and international implications of their economic and financial policies.

The second main role of the IMF is to provide loans of foreign exchange to countries experiencing balance-of-payments problems undertake the necessary adjustment and restore conditions for sustainable economic growth. The financial assistance provided by the IMF enables countries to rebuild their international reserves, stabilize their currencies, and continue paying for imports without having to impose trade restrictions or capital controls, or take other measures `destructive of international prosperity’.

Hence, the IMF’s goal is to provide global financial stability and to assist in the global war on poverty.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>