African Economic Outlook
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African Development Bank and African Economic Outlook African Development Bank Asia External Representation 2018 1 AfDB and its Mission Founded: 1964 Headquarters: Abidjan, Côte d’Ivoire Temporary Headquarters: Tunis (2003- 2014) Headquarters President Akinwumi Adesina, formerly Nigeria’s Minister of Agriculture and Rural Development, Mission: Contribute to the economic and social progress of the regional member countries The African Development Bank (AfDB) is one of Multilateral Development Banks (MDBs). As the World Bank and the Asian Development Bank do, the AfDB’s capital was invested by member governments and raises money from capital market. The AfDB lends money mostly to African governments, but is also able to support private projects. 2 AfDB founded (Membership was initially limited to African countries for 1964 the purpose of encouraging African people to make independent efforts for economic development in the region.) AfDF founded (by AfDB and 13 non-regional member 1972 countries) 2003-2014.8 Moved the Temporary Headquarters to Tunis 2014.9 The Headquarters returned to Abidjan, Côte d’Ivoire CCIA Building in Abidjan 3 AfDB Member Countries 80 member countries in total: 54 African countries (regional members) 26 non-African countries (non-regional members) *UAE is only a member of ADF 4 Member Countries in Asia Japan South Korea (ADF 1973) (ADF 1980) (ADB 1982) China (ADB 1982) (ADF 1985) (ADB 1985) India (ADF 1982) (ADB 1983) 5 Shareholding as of 31/December/2017 Americas Europe U.S.A. 6.623% African members: 60% Germany 4.157% Canada 3.876% France 3.773% Brazil 0.332% Non-African members: 40% Italy 2.438% Argentina 0.090% U.K. 1.774% Sweden 1.578% Switzerland 1.473% Denmark 1.182% G-7 Shareholding: 28% Norway 1.181% Africa Spain 1.070% Netherlands 0.879% Nigeria 9.332% South Sudan 0.412% Belgium 0.642% Egypt 5.622% Guinea 0.403% Finland 0.491% South Africa 5.055% Burkina Faso 0.399% Austria 0.449% Algeria 4.243% Namibia 0.345% Portugal 0.240% Côte d'Ivoire 3.738% Sudan 0.309% Luxemboug 0.202% Morocco 3.608% Sierra Leone 0.289% Libya 2.652% Malawi 0.244% Ghana 2.140% Burundi 0.238% Zimbabwe 1.965% Niger 0.237% Ethiopia 1.580% Benin 0.193% Middle-East Kenya 1.440% Liberia 0.192% Tunisia 1.406% Togo 0.157% Kuwait 0.451% D.R.Congo 1.293% Gambia,The 0.152% Turkey 0.359% Zambia 1.177% Equ.Guinea 0.146% 62,291 Saudi Arabia 0.194% Angola 1.168% Rwanda 0.132% Cameroon 1.082% Swaziland 0.114% General Capital Increases Botswana 1.077% Cape Verde 0.070% (in USD million) Senegal 1.047% Sao Tome & P. 0.068% Asia Gabon 0.997% Chad 0.066% Japan 5.518% Lesotho 0.057% 15,381 Tanzania 0.762% 8,075 China 1.183% Mauritius 0.653% Mauritania 0.057% 200 541 1,588 Korea 0.483% Madagascar 0.649% Cent.Afr. Rep 0.042% Mozambique 0.622% Eritrea 0.031% India 0.258% Congo 0.454% Somalia 0.030% GCI-I GCI-II GCI-III GCI-IV GCI-V GCI-VI Uganda 0.450% Seychelles 0.028% Mali 0.433% Guinea Bissau 0.021% 1976 1979 1981 1987 1998 2010 6 AfDB・ADF and NTF – 3 windows The AfDB Group: three constituent institutions, separate legally and financially, with a common goal… African Development Bank (“AfDB”) African Development Fund (“ADF”) Nigeria Trust Fund (“NTF”) • Established in 1964 • Concessional financing, established in • Established in 1976 by Nigeria • 80 member countries 1972 • Targeted at the Bank’s needier • Authorized capital: USD 95 billion • Financed by 27 State participants and 4 countries • Resources raised from capital markets regional donors • Maturing in 2018 • 0% risk-weighting under Basel II • Subscription: USD 42 billion • Total resources: USD 242 million • Level 1 under Basel III • Focus on low-income countries • Replenished every 3 years Governance and Oversight Board of Governors Board of Directors Decisions by both Boards • Highest decision-making body • 20 Executive Directors elected by the require two-thirds majority or • Composed of Ministers of Finance and Board of Governors 70%, should any member Ministers of Cooperation of the Bank’s • Oversees the general operations of the request so member countries Bank …focused on combating poverty, and improving living conditions on the continent 7 Addressing Diverse Needs of African Countries Additionality and development AfDB Sovereign Operations outcome assessment – core 17 middle-income countries eligible to indicators receive AfDB funding • Job creation Criteria: • Government revenues . GNI per capita • Financial return . Country’s creditworthiness • Foreign currency earnings Access to AfDB and ADF financing Private Sector Operations 10 countries eligible Viable enterprises and multinational projects with an . 4 Blend countries (Cameroon, Kenya, additionality and development Senegal and Zambia) outcome . 6 Countries have been granted access to AfDB through the revised credit • Direct loans policy in 2014 (Benin, Burkina Faso, • Lines of credits Cote d’Ivoire, Rwanda, Tanzania and • Equity participation Uganda) • Guarantees Enclave Finance ADF Concessional Financing Self-sustaining, export-oriented 27 low-income countries are eligible to projects, located in ADF countries receive loans and grants from ADF only Providing selective access to Bank resources for countries with sound macroeconomic position and sustainable debt profile 8 Investment and Loans by AfDB Group Enhancing operations as Africa’s preferred financial partners In USD million 12,000 ■Approved by ADF 3,805 ■Approved by ADB 10,000 2,045 8,000 2,812 2,101 1366 6,000 2,308 2,243 2,905 3,495 4,000 2,565 8,785 8,517 5,664 6,261 6412 2,000 3,975 4,638 2,783 3,198 2,821 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Loans, grants, equity investment, emergency operation, Heavily Indebted Poor Countries (HIPC) Initiative, debt relief, refinancing, guarantee, credit lines for post-conflict countries 9 AfDB Investment Trend in 2017 ADB USD6.37billion Industry, mining, and ADF USD1.36billion Agriculture and quarrying Industry, mining, and rural development 0% Agriculture and quarrying 12% rural 3% Multisector development 11% 21% Social (Education, Health, etc) 5% Multisector Finance 22% 2% Social (Education, Health, etc) 6% Infrastructure Finance (Water & Infrastructure (Water 22% sanitation, energy, & sanitation, energy, transport, etc.) transport, etc) 36% 60% 10 AfDB’s Field Presence/ Representation Office 2002 2017 Greater effectiveness Japan (SNAR) Asia External RepresentationImproved project supervision in Tokyo quality and engagement Officially opened on 15 Headquarters October, 2012 Country offices New country Improved offices in 2017: Regional hubs disbursements Benin, Guinea and In order to promote Liaison offices and Niger procurement processes partnerships with Asian members (Japan, China, South Korea and India), etc. Strong presence in 41 countries, expanded to fragile states 39% of Bank staff working in field offices 76% of projects managed from those field offices 11 High 5s - Scaling up implementation of the Ten Year Strategy Light up and power Africa Improve the quality of life Unlock the continent’s for the people of Africa energy potential in Develop innovative flagship programs order to drive much- to open up opportunities for youth needed employment, improve access to basic industrialization services and create economic opportunities for the extreme poor Feed Africa Industrialize Africa Integrate Africa Transform agriculture to Lead other partners in the Address barriers, create increase productivity, lower process of industrializing regional value chains and food prices, enhance food Africa and developing the leverage complementarities in security, revive rural areas and private sector to create order to tap the continent’s create jobs for Africans wealth from natural assets huge market potential 12 High 5s – A compelling opportunity to accelerate Africa’s transformation If the Sustainable Development Goals (SDGs) are not met in Africa, they will not be met globally Improve the Light up and Integrate Feed Africa Industrialize quality of life for Priority areas Power Africa Africa Africa the people of Africa 3 4 5 7 9 13 2 5 13 5 7 8 9 12 6 9 17 3 4 5 6 8 10 11 The High 5s will help Africa achieve close to 90% of the United Nation’s SDGs and are intrinsically linked to Delivering on the Bank's Ten Year Strategy to achieve inclusive growth and help Africa gradually transition to green growth the African Union’s Agenda 2063 13 New Direction of AfDB Investment +162 GW electricity generated Power and Light + 130 million on-grid connections Up Africa + 75 million off-grid connections The Bank will invest US $12 billion in next 5 year. + 150m people adequately fed + 100m people lifted out of poverty Feed Africa + 190m hectares with restored productivity The Bank will invest US $2.4 billion average per year. + Industrial contribution to GDP increased by 130% + 35 special economic zones supported Industrialize + 30 PPPs developed & strengthened Africa The Bank will facilitate US $56 billion in 10ys for 6 flagship projects. + Building regional infrastructure + Boosting intra-African trade & investment Integrate Africa + Facilitating movement of people across borders The Bank will promote PPPs in infrastructure development. Improve the + Creating 80 million jobs in next 10 years Quality of the + Building critical skills Life of People of + Improving access to water & sanitation Africa + Strengthening health systems 14 Power and Light Up Africa Morocco ONEE Integrated Wind/Hydro Programme AfDB financing USD 450 million • Three wind farms of 100-300MW capacity and two hydro facilities to supply base-load power