AFRICAN DEVELOPMENT BANK

CHAPTER 40:04
AFRICAN DEVELOPMENT BANK

ARRANGEMENT OF SECTIONS

    SECTION

    1.    Short title

    2.    Malawi’s accession to the Bank Agreement

    3.    Financial provision

    4.    Certain provisions of the Bank Agreement to have force of law

            First Schedule

            Second Schedule

16 of 1968

    An Act to provide for Malawi’s accession to the African Development Bank Agreement, to provide for the carrying out of Malawi’s obligations arising under the agreement and for matters related thereto or connected therewith

    Whereas at the Conference of African Finance Ministers held at Khartoum in the Sudan in July and August, 1963, there were drawn up Articles of an Agreement (hereinafter referred to as the Bank Agreement which term shall include all subsequent amendments to the Bank Agreement) for the establishment and operation of the African Development Bank (hereinafter referred to as the Bank):

    And Whereas on the 25th July, 1966, Malawi acceded to the Bank Agreement and acquired full membership status in the Bank with effect from the 1st August, 1966:

    And Whereas Malawi’s instrument of accession has been deposited with the Secretary General of the United Nations and Malawi has paid to the Bank the first two instalments of its paid-up subscription totalling $150,000.

    NOW, THEREFORE be it enacted by the Parliament of Malawi as follows—

1.    Short title

    This Act may be cited as the African Development Bank Act.

2.    Malawi’s accession to the Bank Agreement

    The accession of Malawi to the Bank Agreement is hereby ratified, and the payment of the first two instalments of Malawi’s paid-up subscription as set out in the First Schedule is approved.

3.    Financial provision

    (1) There shall be charged on and paid out of the Consolidated Fund without further appropriation than this Act all payments required to be made from time to time by the Government to the Bank under the terms of the Bank Agreement and in accordance with the resolution of the Board of Governors of the Bank relating to the membership of Malawi in the Bank.

    (2) The payments referred to in subsection (1) include payments of the instalments of Malawi’s paid-up subscription to the Bank, as set out in the First Schedule and all administrative costs arising out of such payments to the Bank.

4.    Certain provisions of the Bank Agreement to have force of law

    The provisions of the Bank Agreement set out in the Second Schedule shall have the force of law in Malawi:

    Provided that nothing in the Bank Agreement shall be construed as—

    (a)    entitling the Bank to import goods free of customs duty without any restrictions on their subsequent sale in Malawi;

    (b)    conferring on the Bank any exemption from duties or taxes which form part of the price of goods sold;

    (c)    conferring on the Bank exemption from taxes or duties which are in fact no more than charges for services rendered.

FIRST SCHEDULE

ss. 2 and 3

Instalments of Malawi’s Paid-up Subscription

	U.S.Dollars
First Instalment (already paid) 5 %	50,000
Second Instalment (already paid) 10% August, 1967	100,000
Third Instalment 15% payable August, 1968	150,000
Fourth Instalment 20% payable August, 1969	200,000
Fifth Instalment 25 % payable August, 1970	250,000
Sixth Instalment 25% payable August, 1971	250,000
TOTAL	$1,000,000

SECOND SCHEDULE

s. 4

Provisions of the Bank Agreement which are to have the force of law in Malawi.

ARTICLE 23
GENERAL POWERS

In addition to the powers provided elsewhere in this Agreement, the Bank shall have power to—

    (a)    borrow funds in member countries or elsewhere, and in that connexion to furnish such collateral or other security as it shall determine, provided always that:

        (i)    before making a sale of its obligations in the market of a member, the Bank shall have obtained its approval;

        (ii)    where the obligations of the Bank are to be denominated in the currency of a member, the Bank shall have obtained its approval; and

        (iii)    where the funds to be borrowed are to be included in its ordinary capital resources, the Bank shall have obtained, where appropriate, the approval of the members referred to in subparagraphs (i) and (ii) of this paragraph that the proceeds may be exchanged for any other currency without any restrictions;

    (b)    buy and sell securities the Bank has issued or guaranteed or in which it has invested, provided always that it shall have obtained the approval of any member in whose territory the securities are to be bought or sold;

    (c)    guarantee or underwrite securities in which it has invested in order to facilitate their sale;

    (d)    invest funds not needed in its operations in such obligations as it may determine and invest funds held by the Bank for pensions or similar purposes in marketable securities;

    (e)    undertake activities incidental to its operations such as, among others, the promotion of…