• The Asian Infrastructure Investment Bank (AIIB) has approved the application of Nigeria to join the Bank. AIIB now has 11 members and nine prospective members from Africa.

• AIIB’s approved African members are responsible for over 60 per cent of the continent’s gross domestic product and represent over 46 per cent of Africa’s population.

• AIIB has begun to finance projects on the African continent, with a recent approval of a $100-million loan to Rwanda to increase access to finance for businesses affected by COVID-19 and build post-pandemic economic resilience.

Asian Infrastructure Investment Bank

• The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the “infrastructure for tomorrow” — infrastructure with sustainability at its core. 

• It began operations in Beijing in January 2016 and has since grown to 104 approved members worldwide representing over 79 per cent of the global population and 65 per cent of global GDP.

• With authorised capital of $100 billion, China is the largest shareholder in the AIIB.

• Its headquarters is situated in Beijing. 

• Unlike most other multilateral development banks set up by advanced economies, AIIB is the first major multilateral development bank where principal contributors are the borrowing members themselves.

• While 75 per cent of the capital is from Asia, several non-Asian regions like Europe, North America, some East African and Latin American countries have also joined the bank as members.

• Working with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.

• In 2018, AIIB was granted Permanent Observer status in the deliberations of both the United Nations General Assembly and the Economic and Social Council, the two development-focused principal organs of the global body.

India and AIIB

• Finance Minister Nirmala Sitharaman participated in the sixth Annual Meeting of the Board of Governors of Asian Infrastructure Investment Bank (AIIB). The minister urged the multilateral bank to explore investment opportunities for development of social infrastructure.

• This year’s Annual Meeting has been jointly organised by AIIB and the Government of United Arab Emirates on the theme of ‘Investing Today and Transforming Tomorrow’.

• India, a founding member and the second largest shareholder of AIIB, also has one of the largest project portfolios within the bank. Currently, India has 7.65 per cent vote share in AIIB while China holds a 26.63 per cent stake in the organisation that was set up in 2016.

Manorama Yearbook app is now available on Google Play Store and iOS App Store