Banks and Poverty Alleviation: An Assessment of the African Development Bank’s Activities

Abstract

Banks and Poverty Alleviation: An Assessment of the African Development Bank’s Activities

Abstract

This article examined the role banks play in poverty alleviation in Africa through the Trickle-down Theory and the African Development Bank Group’s implications on the developmental agenda of African countries. Moreover, the article presented Africa as a continent that has experienced an appreciable economic growth rate over the years and has received considerable financial assistance from its regional partners and international financial institutions. Furthermore, the paper highlighted that the financial support of Africa’s partners had enabled the continent to undertake various developmental projects toward poverty reduction, notably the African Development Bank, considered one of the most critical regional financial institutions with economic dominance over the African banking system. The study adopted a qualitative method and found that the achievements in terms of poverty alleviation over the continents have been enormous, from the achieving landmark general capital increase, successful African development fund replenishment, resource mobilization for women-owned businesses, and a platform for raising capital to support Africa investment initiatives as well as the successful set up of covid-19 social bond and support for agriculture among others. Nonetheless, the study shed light on the fact that the financial assistance from the African Development Bank Group has not been relatively allocated among all countries as its foreign partners influence it. Finally, the article recommended that the allocation of resources from the African Development Bank be fair to allow the upliftment of millions of households out of poverty in the coming decades.

Keywords

• Poverty
• Banks
• Economic Development

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