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Africa Group I Constituency Newsletter a Newsletter from the Office of the Executive Director

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Africa Group I Constituency Newsletter a Newsletter from the Office of the Executive Director Africa Group I Constituency Newsletter A newsletter from the Office of the Executive Director 4th Quarter Edition | March 2018 Table of Contents Foreword from the Executive Director Foreword from the Executive (b) Regional Program—US$7.0 billion Director ............................................ 1 (c) Crisis Response Window—US$3.0 billion (d) Non-concessional Scale-Up Facility— FEATURE STORY: Unlocking the Potential US$6.2 billion of Micro-, Small-, and Medium-Scale Enterprises for Economic Transformation (e) IFC/MIGA Private Sector Window in Sub-Saharan Africa ....................... 2 US$2.5 billion Highlights of the 2017 Annual Meetings IDA 18 will enable countries in our President Paul Kagame Visits Constituency to implement the ambitious the World Bank Group ................. 4 Andrew N. Bvumbe, Executive Director development agenda under the 2015 Sus- IDA Forum (IDA Day) ................... 5 tainable Development Goals during this The year 2017, was an exciting year, which IDA cycle ending June 2020. Scaling Solar Initiative .................. 6 saw the attainment of several milestones Also during 2017, your Constituency The 2017 African Caucus by your Constituency Office and the World Office successfully convened statutory Con- Meeting ........................................ 7 Bank Group (WBG). The mainstay was the stituency Meetings for Governors on the Highlights of the Executive Director’s completion of the historic 18th replenish- sidelines of both the Spring and Annual Missions to the Constituency ment of IDA in December 2016 and the Meetings of the WBG and International Republic of Burundi ..................... 8 inaugural implementation of the historic Monetary Fund (IMF). For the first time in IDA18 financing and policy package on the history of your Constituency Meetings Republic of the Sudan ................. 10 July 1, 2017. The IDA 18 replenishment is we introduced presentations on topical Republic to Zimbabwe ................ 11 the largest replenishment in IDA’s 56-year issues affecting our Constituency. history and heralds a significant change in The presentations included IDA 18 Staffing News .................................. 12 its policy and financing framework. Policy Package by the Vice President for Snapshot of Approved Projects ...... 13 This package presents huge opportu- Development Finance, Mr. Axel van Trot- nities for development financing in the senburg, and Scaling Solar Initiative by AFG1 Constituency List Sub-Saharan Africa Region. Your Constitu- the IFC Director for Eastern and Southern of Constituency Governors ency Office, through the Constituency’s Africa Hub, Mr. Cheikh O. Seydi. Similarly, and Alternate Governors ................ 15 IDA Borrowers’ Representatives, namely, your Constituency Office, in its capacity as Dr. Denny Kalyalya, Governor, Central Bank African Caucus Secretariat, successfully of Zambia and Mr. Charles Chuka, former organized the 2017 African Caucus Meeting Governor of the Reserve Bank of Malawi had held in Botswana in August 2017. The other participated and lobbied before and during African Caucus Meeting was held during the the IDA18 Replenishment Meeting held in Annual Meetings with the WBG President Indonesia in late December 2016, which and IMF Managing Director, Mr. Jim Y. Kim resulted in an unprecedented level of total and Madam Christine Largade, respectively, replenishment amounting to US$75 billion, where our Governors presented their Memo- compared to the US$52 billion in the IDA randum which focused on agriculture and 17 replenishment. IDA 18 resources include agribusiness as the key catalysts for economic the following key components: transformation and job creation in Africa. During the 4th quarter, as part of my pro- (a) Core IDA concessional resource— gram to consult the Constituency countries, US$52.3 billion I visited Burundi, Sudan, and Zimbabwe. ©2018PRS by News Africa Group & Views I Executive Director’s March 2018 Office, The World Bank Group 29805_Fourth Quarter Newsletter_New.indd 1 3/30/18 8:49 AM I am grateful for the warm hospitality and WBG remains focused on the delivery of in most low-income countries. MSMEs face the candid discussions I had with the Gov- its commitments on Illicit Financial Flows many challenges, not least the lack of access ernors during these visits. I intend to travel (IFF) and scaling up its engagement in to financial services—a factor more likely to on mission to the following countries: The lower-middle-income countries. constrain their growth. In country situations Gambia, Kenya, Liberia, Lesotho, Namibia, The year also looks promising for some where the employment rate is low, MSMEs Swaziland, Seychelles, Sierra Leone, Somalia of our countries with special needs, namely, have played a significant role by absorbing and South Sudan. Somalia, Sudan, and Zimbabwe. Activities excess labor supplies. World Bank financ- Looking forward to 2018, another exciting on Zimbabwe’s reengagement have picked ing and technical know-how have helped year beckons! The IDA18 implementation up following the peaceful change of gov- millions of MSMEs across the world to gain will continue in earnest. This period will ernment in mid-November 2017. Plans are access to financial services through a range also see the continuation of discussions under way for the country to clear its arrears, of instruments. This article, among other on the Shareholding Review and Capital setting the stage for reengagement thereafter. things, explores ways countries can benefit Adequacy of the International Bank for Prospects for reengagement have improved from these facilities. Reconstruction and Development (IBRD) for Sudan with the lifting of sanctions in the Finally, included in this edition is a and the International Finance Corporation last quarter of 2017, even though the U.S. recap of some of the events that took place (IFC). The Executive Boards of the IBRD has yet to clear the country from the list of during the recent Annual Meetings in Octo- and IFC are hopeful that the discussions will countries on the list as a state-sponsor of ber 2017. In addition to the presentation at be concluded in time for the 2018 Annual terrorism. Meanwhile, Somalia is moving the 15th Constituency Meeting on “Scaling Meetings in Bali, Indonesia, in October. forward with implementing the IMF Staff Solar Initiatives,” which can be a boon for Internally, my Office will continue to Monitored Program (SMP), which should our countries if effectively implemented, be guided by its 24-months work program, lead to an upper tranche SMP prior to full we report on the visit to the Office and the Agenda 24. We plan to vigorously pursue reengagement. The country is making tre- WBG during the Annual Meetings by the the renewable energy agenda and to exploit mendous progress with reforms, including President of the Republic of Rwanda, His the opportunities available for our countries building its institutions. We expect the three Excellency Paul Kagame. President Paul so that they can effectively deliver power countries to have roundtable meetings during Kagame spoke on “Maximizing Finance to every home at affordable tariffs. We will the Spring Meetings in April 2018, as part for Development” and participated at the also continue advocating greater support of their roadmap to reengagement. “Human Capital Summit.” Rwanda has for Domestic Revenue Mobilization (DRM), As a feature story to this Newsletter, this made considerable progress on these two particularly considering the rising levels 4th Edition focuses on the Micro-, Small-, areas and the President shared some of of external debt in some of our Constitu- and Medium-Scale Enterprises (MSMEs), his country’s experiences which were well ency countries. We plan to ensure that the which are an important driver for job growth received by participants. ■ FEATURE STORY: Unlocking the Potential of Micro-, Small-, and Medium-Scale Enterprises for Economic Transformation in Sub-Saharan Africa by Solome Lumala Introduction employees.1 Across countries, the defini- among policy makers of the significant role Micro-, Small-, and Medium-Scale Enterprises tion of an MSME varies from an enterprise MSMEs play in creating jobs, supporting (MSMEs) are defined differently across that has less than 10 employees in Kenya, geographical and sectoral diversification, countries and institutions. The most widely for instance, to between 1–5 employees in enhancing competitiveness and productivity, used variables are the number of employees, Mozambique, and less than 9 employees and improving economic agility and resil- turnover, and asset value. Accordingly, in in New Zealand. ience. MSMEs have also been recognized a comprehensive enterprise survey under- Following the global financial crisis, there for their impact on other development goals taken by the World Bank and IFC in 2010, has been a growing level of appreciation including food security, provision of social MSMEs were broadly defined as follows: services, and innovation. Further, because micro enterprises: 1–9 employees; small: 1 Kushnir, K. et al, (2010) Micro, Small, and they satisfy consumer demand for goods Medium Enterprises around the World: How Many 10–49 employees; and medium: 50–249 Are There, and What Affects the Count? and services, and inputs for large firms, Africa Group I Constituency, Newsletter 4th Quarter Edition 2 March 2018 29805_Fourth Quarter Newsletter_New.indd 2 3/30/18 8:49 AM MSMEs are important links in various value businesses in the MSME sector, and some
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