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politics and government of
the African Union
The African Investment Bank (AIB) is one of three financial institutions of the African Union (AU) along with the African Monetary Fund and the African Central Bank. It will be headquartered in Tripoli, Libya.
The Lome Summit (2000) adopted the Constitutive Act of the African Union, which specifies the objectives, principles, and organs of the AU. Twenty-seven African countries signed the act, which provided for establishing a wide variety of institutions, including the Pan-African Parliament; Court of Justice; African Central Bank; African Monetary Fund; and African Investment Bank. In 2005, the AU held a meeting of independent experts in Addis Ababa, Ethiopia, to consider concept papers and draft Protocols prepared by the African Union Commission (AUC) regarding the three institutions. The AU also determined seats for the financial institutions, the African Central Bank (Nigeria), the African Investment Bank (Libya), and the African Monetary Fund (Central Africa).
On 21 November 2006, the AUC held a meeting in Yaounde, Cameroon, to outline the implementation of the three African Financial Institutions as per Article 19 of the Constitutive Act. The AIB's mandate was envisioned to aid in fostering economic growth and accelerating economic integration in Africa in line with the AU's Strategic Plan. Article 17 of the Agreement further established that AIB's method of banking operations will be conducted in accordance with the following governing principles:
According to Article 4, AIB membership is open to all AU members. Eligible countries who do not become members when operations begin may be subsequently admitted, under terms and conditions established by the Board of Governors (BOG), following the affirmative vote of at least four-fifths of the Governors, representing not less than three-fourths of the member's total voting power.
AIB's initial authorized capital stock has yet to be determined. It will be divided into a number shares with a specific par value, which shall be available to members for subscription in accordance with the provisions in the Agreement. The authorized capital stock shall be divided into paid-in shares and callable shares. The BOG will occasionally determine the proportion of authorized capital in paid-in shares and callable shares. The BOG may increase the authorized capital stock, under terms and conditions deemed advisable. The BOG's decision to increase the authorized capital will be adopted by a vote of at least four-fifths of the Governors, representing not less than three-fourths of the members total voting power.