Financing Development: Experiences from Africa, Asia and Latin America The African Development Bank s role in supporting and financing regional integration and development in Africa Dr. Gabriel MOUGANI Chief Regional Integration Coordinator West Africa Regional Development and Business Delivery Office (RDGW) African Development Bank (AfDB) Group 1
Outline The AfDB s mission and New Vision The African Development Bank: Fast Facts The AfDB role in supporting and financing regional integration and development Case study: The Role of the AfDB in Financing Infrastructure in Africa Building Partnerships Potential areas for policy support 2
What are the AfDB s missions? Help to reduce poverty and improve living conditions on the continent Help Regional Member Countries (RMCs) and Regional Economic Communities (RECs) to achieve their development goals Promote investment in projects and programs that are likely to contribute to economic and social development 3
1.2. The New Vision of the AfDB: alignment with the AfDB s Long Term Strategy (2013-2022) focusing on five priority areas, referred to as the High Fives (High 5s): 4
The African Development Bank: Fast Facts [1] 1. What is the African Development Bank Group? The AfDB is one of the five major multilateral development Banks in the world that provide assistance to its regional member countries with a view to helping them achieve their development goals Agreement establishing the AfDB signed on August 4, 1963 in Khartoum, Sudan and became effective on September 10, 1964. The African Development Bank Group comprises three (3) entities: AfDB Group African Development Bank (AfDB) African Development Fund (ADF) Nigeria Trust Fund (NTF) 5
The African Development Bank: Fast Facts [2] 2. Who are AfDB share holders? AfDB Group (80 member countries) 54 regional member countries (RMCs) 26 non-regional member countries (NRMCs) (from Europe, America and Asia) 6
The African Development Bank: Fast Facts [3] List of Member Countries Regional Member Countries 1 Algeria 2 Angola 3 Benin 4 Botswana 5 Burkina Faso 6 Burundi 7 Cabo Verde 8 Cameroon 9 Central African Republic 10 Chad 11 Comoros 12 Congo 13 Congo, Democratic Republic of 14 Côte d Ivoire 15 Djibouti 16 Egypt 17 Equatorial Guinea 18 Eritrea 19 Ethiopia 20 Gabon 21 Gambia, The 22 Ghana 23 Guinea 24 Guinea-Bissau 25 Kenya 26 Lesotho 27 Liberia 28 Libya 29 Madagascar 30 Malawi 31 Mali 32 Mauritania 33 Mauritius 34 Morocco 35 Mozambique 36 Namibia 37 Niger 38 Nigeria 39 Rwanda 40 São Tomé & Príncipe 41 Senegal 42 Seychelles 43 Sierra Leone 44 Somalia 45 South Africa 46 South Sudan 47 Sudan 48 Swaziland 49 Tanzania 50 Togo 51 Tunisia 52 Uganda 53 Zambia 54 Zimbabwe Non-regional Member Countries 1 Argentina 2 Austria 3 Belgium 4 Brazil 5 Canada 6 China 7 Denmark 8 Finland 9 France 10 Germany 11 India 12 Italy 13 Japan 14 Korea 15 Kuwait 16 Luxembourg 17 Netherlands 18 Norway 19 Portugal 20 Saudi Arabia 21 Spain 22 Sweden 23 Switzerland 24 Turkey 25 United Arab Emirates (member of the ADF only) 26 United Kingdom 27 United States of America 7
The African Development Bank: Fast Facts [4] Overview of Bank Group Operations [1] Authorized Capital as of 31 December 2015 (ADB) Approved Operations, 2015 Of which: Loans Grants HIPC Debt Relief Equity Participation Guarantees Special Funds* UA 66.98 billion 241 operations totaling UA 6.33 billion, financed as follows: ADB: UA 4.52 billion ADF: UA 1.52 billion NTF: UA 12.5 million Special Funds*: UA 288.8 million UA 4.77 billion (100 operations) UA 471.4 million (87 operations) UA 47.0 million (1 operation) UA 64.3 million (4 operations) UA 696.9 million (7 operations) UA 288.8 million (42 operations) 8
The African Development Bank: Fast Facts [4] Approvals by Sector, 2015 Total Cumulative Approvals, 1967-2015 Overview of Bank Group Operations [2] Infrastructure: UA 3.08 billion (48.6 percent) Finance: UA 1.35 billion (21.3 percent) Multisector: UA 788.9 million (12.5 percent) Social: UA 595.9 million (9.4 percent) Agriculture and Rural Development: UA 514.6 million (8.1 percent) Industry, mining and quarrying: UA 3.1 million (0.05 percent) 4,974 approvals totaling UA 87.97 billion Notes: * Special Funds: These are the approvals for the operations of the African Water Facility, the Rural Water Supply and Sanitation Initiative, the Global Environment Facility, the Global Agriculture and Food Security Program, the Africa Growing Together Fund, the European Union Africa Infrastructure Trust Fund, the Fund for African Private Sector Assistance, the Sustainable Energy Fund for Africa, the Middle East and North Africa Transition Fund, the Organization of the Petroleum Exporting Countries, and the Zimbabwe Multi-Donor Trust Fund. 9
Why the AfDB is supporting regional integration in Africa? [1] Key role of the AfDB Play a leading role in fostering Africa s economic integration while assisting Regional Economic Communities (RECs) in their quest to create vibrant and attractive regional markets Ensure that all countries in the region, including landlocked countries and fragile states, benefit from links to global markets and intra-african trade. 10
Importance of regional integration Why the AfDB is supporting regional integration in Africa? [2] Core activity of the AfDB: tool for enhancing economic growth and fostering inclusion within and between countries Effective way to overcome small internal markets One of the pillars of the AfDB s Ten Years Strategy (2013-2022) One of the AfDB s five priority areas (to support Africa s Transformation) 11
Support of regional integration How the AfDB is supporting regional integration in Africa? [1] Policy dialogue with regional organizations & Institutions Drafting of a revised Regional Integration Strategy (RIS) aligned with the Bank s new vision Preparation of Regional Integration Strategy Papers (RISPs) for each of the 5 African regions (North, South, East, West and Central Africa) (for strategic planning and policy development) Prioritization of regional operations, regional & multilateral projects (ADF XIV) Financing and co-financing (regional initiatives, operations, regional & multilateral projects) 12
Financing & Resource Mobilization Flexible Financing Instruments to Support an Evolving Global and Regional Context Case study: The Role of the AfDB in Financing Infrastructure in Africa [1] What We Fund Windows Instruments Recipients Infrastructure Hard Enabling Environment Soft Infrastructure ADB/ADF Funds Special Initiatives - AWF - NEPAD/ IPPF - ICA Trust Funds Eg. MIC, FSF Loans Grants Equity Guarantees National/ Local Governments Regional Organisations RECs, RBOs, PPs Private Companies NGOs/CBOs
Mobilizing resources through partnerships Case study: The Role of the AfDB in Financing Infrastructure in Africa [2] Aims to mobilize funding for preparation and investment at a large scale than currently available within the AfDB Group Africa 50 Fund ICA NEPAD IPPF WORLD ECONOMIC FORUM Platform for Private Sector as Strategic Partners in Capacitation, Financing and Implementation of Africa s Transformative Projects Project Preparation through donor sourced Development aid funding and technical support UNCTAD Multi-Year Expert Meeting on Promoting Economic Integration and Cooperation Third Session - Geneva 2-3 July 2015 14
Africa50 Fund An Innovative Solution Case study: The Role of the AfDB in Financing Infrastructure in Africa [3] 2012 PIDA Declaration by African Leaders Africa50Fund Unlocking private financing and accelerating the speed of infrastructure delivery in Africa For Africa and by Africa 15
Building Partnerships We seek seek to build & cement focused partnerships with key stakeholders Partnerships based on the Bank s comparative advantage & overall strategic focus to deliver its work programme (i) National/ regional/ Continental level institutions (ii) Bilateral & Multilateral development partners (iii) Other International Institutions 16
Potential areas for policy support Research (Partnerships with universities & Institutes, research centres, etc.) (regional knowledge, innovative approach to regional integration issues, etc.) Capacity Building/Governance Advocacy Innovative Financing Solutions & co-financing are needed 17
Thank you For further information, please contact: Gabriel V Mougani Chief Regional Integration Coordinator Tel: + (225) 20 26 26 42 Skype: gabriel.mougani2 Email: g.mougani@afdb.org Building today, a better Africa tomorrow 18