Regional Development Banks

The regional development banks exhibit a similar mode of functioning and governance as the World Bank, which was established before them, however, they reflect in their shareholder structure the majorities of the respective regional member countries. Like the World Bank, regional development banks share the primary goal of reducing poverty in their respective regions. They aim to achieve this by promoting sustainable economic and social development, investing in infrastructure, and supporting the growth of the private sector. In addition to offering a range of financing tools, they also provide technical assistance to help implement these initiatives.

African Development Bank Group (AfDB Group)

The African Development Bank Group (AfDB Group) comprises the African Development Bank, the African Development Fund and the Nigeria Trust Fund. All three of these international development finance institutions are legally independent, but organizationally closely interlinked and work with the same staff and management resources. From 1 September 2025, the Mauritanian Dr. Sidi Ould Tah will succeed Dr. Akinwumi Adesina as President of the AfDB Group.

The AfDB Group supports its regional member countries above all through:

Loans to promote their economic and social progress under the application of sustainability criteria;
Technical assistance and know-how for the preparation and implementation of development projects;
Support and provision of know-how for the drafting, implementation and coordination of development plans, for public (financial) management, and for the implementation of structural reforms.

The AfDB was founded in 1963 by the OAU (Organisation of African Unity, the predecessor institution of today’s African Union) as an all-African institution for the financing of development projects in Africa. It operates on the basis of capital provided by the member countries and refinances itself on the international financial markets. The bank grants loans to creditworthy members who would otherwise have access to the financial markets only on significantly worse terms. In 1982, the AfDB extended to non-regional shareholders, thereby significantly improving both the quantity and quality of its capital and thus its creditworthiness on the international financial markets. Many European industrial countries, including Austria, as well as Canada and the USA were subsequently admitted as non-regional member countries, later also Japan, China, South Korea, India, Brazil, Argentina, Saudi Arabia, Kuwait and Switzerland. Today the AfDB comprises 54 African and 27 non-African member countries. Austria has been a member of the bank since 1983 and currently holds a 0.4 percent share of capital.

In 1972, the African Development Fund (AfDF) was established, a financial institution working with highly concessional funds and predominantly and regularly funded by grants from industrialized countries for the poorest and non-creditworthy countries of the region. In addition to loans on favorable terms, grants are also provided. Austria has been a member since 1981. In 2022, the 16th replenishment of the AfDF was completed. Austria's share amounts to 1.93 percent.

In 1976, the Nigeria Trust Fund (NTF) was founded, the smallest member of the AfDB Group. The NTF is a revolving fund and is funded only by Nigeria (initial capitalization of USD 80 million, replenishment in 1981 with USD 71 million). It is subject to a Nigerian decision-making structure.

The strategic priorities of the African Development Bank Group are lined out in its Ten-Year Strategy 2024-2033. There, it continues to define five major, synergistic focus areas (the so-called “High Fives”):

Improvement of people’s quality of life (human and social development)
Food security (agriculture, rural development, water)
Energy (electric power supply, renewable energy, green growth)
Industrialization (private sector development, infrastructure, development of manufacturing industries)
Regional integration

Climate change and its impact, fragility, and gender equality also count as absolute priorities but are pursued in a mainstreaming approach.

In its specific thematic cooperation with the AfDB Group, Austria focuses on two areas:

Water
Renewable energy

In both sectors, there is cooperation with the Austrian Development Agency (ADA) and contributions are made to special trust funds.

Asian Development Bank (AsDB)

The Asian Development Bank (AsDB) was founded in 1966. Its capital is subscribed by 69 countries (50 regional, 19 non-regional). The headquarters are located in Manila in the Philippines. Austria joined the bank as a founding member in 1966 and holds a 0.34 percent share of the bank’s capital. It forms, together with Germany, Great Britain, and Luxembourg, one of a total of twelve voting constituencies. The largest shareholders are Japan and the USA with 15.6 percent of capital each. The current President is Masato Kanda.

The goal of the AsDB is to promote an economically prosperous Asia that is at the same time inclusive and ecologically sustainable. Based on its founding mandate, it continues its efforts to eliminate the extreme poverty still existing in Asia. It supports its members and partners with loans, technical assistance, non-reimbursable grants, and equity investments to promote social and economic development. In 2018, the AsDB approved a new long-term strategy, Strategy 2030, which defines the institution’s general vision and strategic responses to the evolving needs in Asia and the Pacific region. Strategy 2030 was reviewed in August 2024 to account for recent developments.

The AsDB’s support focuses on seven operational priorities:

Addressing Remaining Poverty and Reducing Inequalities;
Accelerating Progress in Gender Equality;
Tackling Climate Change, Building Climate and Disaster Resilience, and Enhancing Environmental Sustainability;
Making Cities More Livable;
Promoting Rural Development and Food Security;
Strengthening Governance and Institutional Capacity; and
Fostering Regional Cooperation and Integration.

With the Asian Development Fund (AsDF), the AsDB also has a separate fund that grants non-repayable grants to the poorest member countries. The AsDF’s resources come mainly from contributions by AsDB member states, which are mobilized through regular replenishments. Through its contributions, Austria not only provides aid for the development of the Asia region but also benefits from contract awarded to Austrian companies when implementing bank projects. Membership in the bank thus also acts as a door opener for Austrian businesses in Asia. Austria focuses in its cooperation with the Asian Development Bank particularly on water and sanitation, urban mobility, and the railway sector.

Asian Infrastructure Investment Bank (AIIB)

The Asian Infrastructure Investment Bank (AIIB) was established in 2015 and is headquartered in Beijing, China. The bank has 110 admitted member countries, among them are 57 non-regional states. China holds the largest capital share, followed by India, Russia, and Germany. Additionally, Austria is a founding member, holding a 0.51% stake in the bank’s capital. Mr. Jin Liqun from China has been the first President of the bank since 2016.

The AIIB pursues the goal of promoting sustainable economic development through the financing of infrastructure and other productive sectors in Asia, as well as strengthening regional cooperation to overcome development barriers. The AIIB may also allocate up to 15% of its investment volume to members outside Asia, provided the projects support Asia’s economic development or to a global public good. To date, India has received the largest share of funding.

The Board of Directors of the AIIB, unlike most other IFIs, is not based at the bank’s headquarters in Beijing but convenes four times annually in physical meetings and as needed in virtual meetings. Austria is part of the Eurogroup constituency, which also includes Belgium, Germany, Finland, France, Greece, Croatia, the Netherlands, Ireland, Italy, Luxembourg, Malta, Portugal, Spain and Cyprus. Austria’s involvement with the AIIB is in continuity with Austria’s long-standing engagement in various international development and financial institutions.

The AIIB is committed to applying high environmental, social and governance standards and to following modern and fair procurement rules. For this purpose, the bank developed operational regulations, especially environmental, social and procurement standards, with input from civil society. These rules largely correspond to and sometimes exceed those of other IFIs. For example, the AIIB’s universal procurement policy allows companies from non-member countries to bid for contracts.

European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) was established in 1991 in response to the political and economic shifts in Central and Eastern Europe, aiming to help former centrally planned economies in that region and the Soviet Union transition to market-based systems. The bank later expanded into the Mediterranean region. Since 2025, it is also active in selected countries in sub-Saharan Africa and Iraq. The EBRD has, in addition to an economic mandate, a political mandate. This obliges it to make its support measures dependent on the recipient countries’ efforts to establish democratic and pluralistic social conditions.

Since its inception until mid-2025, the EBRD has invested over 210 billion Euro in more than 7,500 projects on three continents. With the goal of implementing 50% of its annual business volume as green financing, the bank is a key player in the climate sector. It also has a strong focus on Ukraine, where it has invested more than 7.6 billion Euro since 2022 to support key infrastructure, among other things.

The bank strives to assist recipient countries in implementing structural and sector-specific economic reforms, including demonopolization, decentralization and privatization. Its activities include the promotion of private-sector activities, the strengthening of financial institutions and legal systems, and the development of the infrastructure necessary to support the private sector (among others in the areas of transport, energy, and water/sewerage). The EBRD operates in both the private and the public sectors, with the bank now conducting over 76 percent of its financing in the private sector.

The EBRD has 77 members (75 states, plus the European Commission and the European Investment Bank). Of these, 39 are recipient countries. Austria is a founding member of the Bank and forms a constituency with Bosnia and Herzegovina, Israel, Kazakhstan, Malta, and Cyprus.

The supreme decision-making body is the Board of Governors, to which each member country appoints a governor and a deputy governor. The Austrian governor is the Federal Minister of Finance. In addition to the Board of Governors there is the Board of Directors, which consists of 23 members and is elected by the Board of Governors for three-year terms. Since October 2020, Ms Odile Renaud-Basso has been President of the EBRD.

Inter-American Development Bank (IDB)

The Inter-American Development Bank Group (IDBG) is the oldest and largest regional multilateral development bank, which was founded primarily for the promotion of the economic and social development of Latin American and Caribbean states. The IDB comprises:

The Inter-American Development Bank (IDB)
IDB Invest also known as Inter-American Investment Corporation (IIC)
IDB Lab also known as Multilateral Investment Fund (MIF)

The IDB was founded in 1959 and has become one of the largest catalysts in mobilizing resources for the region. The financial resources of the bank consist of the paid-in capital, the reserves, the funds raised on the financial and capital markets, and other contributions from member countries (e.g., trust funds). The paid-in capital is made in the form of cash payments – distributed over several years – and represents only 6.7 percent of the capital subscription. Accordingly, the largest part of the subscribed capital is callable capital, with which the IDB’s borrowings in the capital markets are secured.

The fundamental tasks of the IDB include the deployment of its own capital, raising loans on financial markets, opening other available resources for financing the development of its borrowing member countries, and, furthermore, when private capital is not or not sufficiently available, complementing private investments under favorable conditions and a favorable maturity. It also provides funds for technical assistance for the preparation, financing, and implementation of development projects. The bank’s operations span the full range of economic and social development, with a particular focus on programs benefitting the lowest-income population groups.

It was only through a statutory amendment in the 1970s that countries outside the Americas were allowed to join the IDB. Currently, the IDB has 48 members. In addition to Latin American and Caribbean borrowing member countries, on the donor-country side – besides the USA, Canada, China, Japan, Korea, and Israel – European states (including Austria since 1977) are also involved as shareholders.

IDB Invest supports small and medium-sized private enterprises in Latin America. It was founded in 1986 and thereby complements the IDB’s activities, which are primarily directed at the public sector. In 2016, the IIC was renamed IDB Invest and has since been an independent institution.

Currently, IDB Invest has 48 member countries, with a majority consisting of Latin American and Caribbean states. On the donor-country side, besides the USA as the strongest regional member, Austria has also been involved as a shareholder since its founding in 1986. The granting of loans and equity stakes by IDB Invest takes place without government guarantees. Sectorally, the areas of financial services, venture capital, industrial production, agriculture, fishing, tourism, mining, and oil play an important role in IDB Invest’s portfolio.

The Multilateral Investment Fund (MIF), currently operating as IDB Lab, is a part of the Inter-American Development Bank Group and was founded in 1993. Austria is not a member of IDB Lab which specifically supports small investments and reform efforts in the field of private-sector development.