The CGD Podcast – “Ten Years of Progress at the African Development Bank – Donald Kaberuka”
Center for Global Development | January 5, 2016

Episode Overview

This episode features Dr. Donald Kaberuka, former President of the African Development Bank (AfDB), reflecting on his decade-long leadership transforming the institution and advancing Africa’s development agenda. Host Rajesh Merchandani discusses with Kaberuka lessons from his tenure, challenges of fragile states, the problem of "Brand Africa," strategies for financing development, private sector involvement, and his current work on multilateral development banking.

Key Discussion Points & Insights

Transforming the African Development Bank (AfDB)

• Strategic Refocusing (00:52)

  • Kaberuka entered Afrodb in 2005 as Africa began recovering from decades of negative growth.
  • He led a new institutional strategy emphasizing: economic growth, infrastructure development, economic integration, private sector engagement, and support for fragile states.
  • Resulted in: Mobilization of ~$25 billion in donor funding, tripling the bank’s capital, and powerful countercyclical actions during the 2008 financial crisis.

  “Those strategic choices…turned out to be exactly what Africa needed at the time.”
  —Donald Kaberuka [00:57]

Achievements and Lessons Learned

• Focus and Avoiding 'Mission Creep' (02:13)

  • Kaberuka highlighted the importance of choosing areas of comparative advantage rather than being spread too thin.
  • Shifted 60% of AfDB’s work to infrastructure and private sector-led economic integration.

• Fragile States – Persistent Challenge (02:56)

  • Despite progress, recurring setbacks in countries like South Sudan and Central African Republic remain a source of concern.
  • Kaberuka prefers to discuss “lessons learned” over disappointments.

  “…places like South Sudan, the Central African Republic, you do think finally you are there, you begin operations back to square one... until we can resolve it… countries making progress, not three steps forward, two steps back.”
  —Donald Kaberuka [03:16]

Addressing Fragile and Post-Conflict States

• Complexity & Spillover Effects (04:51)

  • Each country’s needs are unique, but instability has regional repercussions: refugees, epidemics, weapon trafficking, and a negative “Brand Africa.”
  • AfDB established a $1 billion facility for fragile states to rebuild capacities and economies.

  “The image of Africa… is captured in the West from those few countries with the largest spill of effects [and] penalizes all of us.”
  —Donald Kaberuka [05:32]

The Problem of "Brand Africa"

• Ebola Crisis as a Case Study (06:14)

  • The 2014 Ebola outbreak’s impact was limited geographically (less than 2% of GDP, 1.5% of Africa’s population) but affected the whole continent’s image.
  • Kaberuka personally traveled to the region during the epidemic to counteract the psychological embargo.

  “As a leader, sometimes you have to lead from the front. So I traveled to the region…to show that here is a problem we have to deal with, but the rest of Africa is still open for business.”
  —Donald Kaberuka [07:01]

• Private Sector as a Rebranding Tool (07:28)

  • Increased private sector lending from $300 million/year to $2.8 billion.
  • Demonstrated that Africa is viable for business and investment.

  “Changing the brand is about talking about it, but it's about behaving in a manner which shows that you actually believe it.”
  —Donald Kaberuka [08:31]

Financing Development and the SDGs

• Not Just About Money (09:12)

  • While funding is critical, effective policy, implementation, and capacity are equally vital.

  “If development was simply about money, Libya would be the most developed country in the world.”
  —Donald Kaberuka [09:20]

• Role of Private Sector in Development (10:08)

  • Public funds should leverage private investment, especially in major infrastructure such as energy; policy reforms are needed to enable this.
  • Private sector involvement is possible even in social sectors (health, education) given supportive policies.

  “In almost every sector…if the policies are right, there will be opportunity for someone to say here I can make money, but also provide a social good.”
  —Donald Kaberuka [11:50]

The Future of Multilateral Development Banking

• Institutions Must Evolve (12:14)

  • International financial institutions are products of the 1945 Bretton Woods system; the world has changed, and so must they.
  • Need to address issues of governance, inclusion of emerging economies, and ability to tackle new global public goods (epidemics, climate change).

  “The current ecosystem… is a child of 1945… what kind of organizations fit for purpose do we need for this century?... Not with the genetic makeup of 1945.”
  —Donald Kaberuka [12:14, 13:24]

Memorable Quotes

• On Institutional Focus:
  “It was… the first time when an organization of this size was able to say, there are many things to be done, but this is what I'll do, and do it well.”
  —Donald Kaberuka [02:27]

• On Africa’s Perception:
  “Our countries pay premium... because the image of Africa is captured in the west from those few countries with the largest spill of effects, [which] penalizes all of us.”
  —Donald Kaberuka [05:32]

• On Private Investment:
  “Public money is there only to leverage private money. So create space for the private sector. Create space for the public sector and the private sector to work together for particular outcomes.”
  —Donald Kaberuka [10:34]

• On Public Goods and Values:
  “The SDGs… giving women the same rights as men, how much money does that cost? So there are many things we have to do and money will be the least constraint.”
  —Donald Kaberuka [09:54]

Timestamps for Key Segments

• Background & Introduction – [00:05]
• AfDB Strategic Transformation – [00:52]
• Achievements & Lessons Learned – [02:05]
• Approach to Fragile States – [04:51]
• Brand Africa & Ebola Crisis Response – [06:14]
• Private Sector Development & Investment – [07:28]
• Financing the SDGs – [09:12]
• Private Sector in Social Sectors – [11:28]
• Future of Multilateral Development Banks – [12:14]

This episode provides a nuanced and insightful overview of Africa's development trajectory, the evolving role of the AfDB, and the challenges and opportunities in shaping both the perception and reality of African progress. Dr. Kaberuka’s reflections underscore the importance of strategic focus, adaptive institutions, and leveraging both public and private sectors to achieve transformative development.