The African Development Bank (AFDB) Group is planning $3 billion support for institutions and projects in Africa as a way to mitigate the impact of the global financial crisis on the continent.

The support, planned in four packages, is targeted towards addressing liquidity challenges that have hallmarked the crisis.

The AFDB Board of Directors on Wednesday,4 March 2009 in Tunis, Tunisia, adopted a policy paper on this response titled "Bank’s response to the economic Impact of the Financial Crisis, in Tunis, Tunisia last wee.

The action plan comprises four initiatives, namely: an Emergency Liquidity Facility Trade Finance Initiative; Framework for Accelerated Resource Transfer of African Development Fund Resources to eligible countries; Enhanced Policy Advisory Support.

According to a statement by the bank, the plan is largely based on the conclusions of African Finance Ministers Conference held in Tunis, Tunisia, in November 2008 on AtDB's initiative. Its content reflects real in needs and demands, and it takes into account actions by the bank's partners.

"The rapid spread and intensity of the global financial crisis have resulted in a sudden and rapid decline in financial resource in the short term and have required the development of an appropriate response," the bank said.

Like most Multi-lateral Development Banks (MOBs), the bank was urged by the G20 and the African ministers' statement in a communiqué following their meeting on November 12, 2008, in Tunis, Tunisia, to do all it could to provide a timely and targeted response to the crisis.

The "Bank's response the economic impact of the financial crisis" derives from the notion that Africa's marginal integration in global trade and the financial environment has not spared the continent from the contagious effects of the financial crisis, which is certainly not temporary, the bank said.

The statement reads in part "The crisis does not only add to existing vulnerabilities, it also requires sustained and concerted efforts to return to the path to growth. The effort must start by taking measures, which will immediately help to avoid further damage and a major slide back.

"A combination of instruments such as those proposed -and working in concert with other development partners would make it possible to tackle the must important steps: fast- tracking support to eligible low-income countries in need of it, keeping trade moving, providing liquidly, helping the institution’s regional member countries (RMCs) stay the course of sound policy framework and filling financing gaps in key infrastructure projects."

Under the Emergency Liquidity Facility (ELF), which provides for $1.5 billion support, in the short-term, the bank plans to disburse resources in a fast and flexible manner to enable eligible recipients to rapidly meet the urgent, unforeseen and short-term financing needs caused by the financial crisis.