SADC-DFRC CEO s Forum Progress on DBSA-JICA s Africa-Asia DFI Networking Walvis Bay, Namibia December 6, 2012 Tetsuya FUKUNAGA TICAD Advisor to DBSA from JICA
Japan s ODA and JICA Technical Cooperation Japan s ODA: Official Development Assistance Bilateral Assistance Multilateral Assistance Japanese ODA Loan Grant Aid* * This excludes Grand Aid which Japan s Ministry of Foreign Affairs (MOFA) will continue to directly implement for the necessity of diplomatic policy. JICA s Bilateral Aid
About JICA (Japan International Cooperation Agency) Adding value through Comprehensive & Consecutive Assistance JICA Government State Owned Enterprises JICA is the world s largest bilateral aid agency, in charge of administrating Japanese ODA (Official Development Assistance) scheme, such as 1)ODA Loans, 2)grant aid and 3) technical cooperation, and can offer value added development outcome through comprehensive assistance. ODA Loan is; Loan assistance scheme by low-interest, long-term and concessional funds for social and economic development. JICA Expert / Advisor Training in Japan Development Study ODA Loan Human Reseource and Institutional Development Policy / Framework Long-term Master Plan Project Feasibility Study Construction Operation & Maintenance Technical Cooperation is; Aiming at capacity building in the recipient country and state owned enterprises by Dispatch of Japanese Experts, Training Program and Development Study (Master Planning, Feasibility Study, etc). JICA s Financial Intermediary Loans (Two-Step Loans) Financial intermediary loans are implemented through the financial institutions of the recipient country based on the policy-oriented financial system of the partner country. These loans provide funds necessary for the implementation of designated policies. Grant Aid is; JICA s Financial Cooperation for securing BHN in mainly Least Developed Countries. (It can not be applied for upper middle income countries.) JICA Repayment Two Step Loan Development Finance Institution Revolving funds Banking operations Local Clients (SMEs and farmers) Mongolia TSL Project for SME Development and Environmental Protection Date of L/A :Mar 2006 Amount: 5 billion yen Funds are provided on a long-term basis through Mongolian commercial banks to SMEs that represent the majority of private enterprises driving economic development in Mongolia. The objectives of this assistance also include the promotion of environmental preservation measures.
DBSA-JICA s Africa-Asia DFI Networking by Technical Cooperation (T/C) to SADC-DFRC s DFIs MOU Between DBSA and JICA on May 27, 2010 Arrival of TICAD Advisor to DBSA from JICA on November 24, 2010 Establishment of Knowledge Sharing Committee in DBSA on February 2011 Identification of Importance and Requirement of T/C to SADC s DFIs Dispatching Delegation (Composed by DBSA and SADC-DFRC) for Knowledge Sharing and Networking between African DFIs and Asian DFIs to Japan and the Philippines from December 4 to 16, 2011 Knowledge Sharing and Networking between African DFIs and Asian DFIs at the CEO Forum (in Kasane, Botswana) from June 6 to 8, 2012 Selection of DFIs to Conduct T/C in FY2012/2013 by SADC-DFRC Preliminary Visit to DBN, IDBZ and NDC to Conduct T/C in FY2012/2013 Selection of Japanese Consulting Team by JICA to Conduct T/C for SADC s DFIs << T/C in FY2012/2013 >> 1. Dispatching Japanese Consulting Team to DBN, IDBZ and NDC for Extracting Present Problem(s) in Management 2. Accepting Trainees from Selected DFIs to Japan (as well as Asian Countries) toward Solution(s) in Present Problem(s) 3. Demonstrating Comprehensive Solution(s) toward Present Problem(s) in Selected DFIs
Technical Cooperation and Knowledge Sharing between African DFIs and Asian DFIs African Countries -- DTAF* -- Asian Countries SADC-DFRC UNOPS DBSA (2) Knowledge Sharing by New Framework (1) Present Technical Transfer by DTAF Phase I: ZIM DRC ANG ZAM TAN NAM Phase II: Phase : X: Development Bank of: Japan South Korea Malaysia Thailand : : : (3) Technical Transfer by New Framework * DTAF: DFI Technical Assistance Facility (DTAF) by DBSA, SADC-DFRC and UNOPS (United Nations Office for Project Services) (established on March 26, 2010)
JICA s Experience for Reinforcement of Financial Systems (From 1995 to 2009) By Categories and the Number by Country 1. Technical Cooperation: 40 Projects Indonesia (7), Vietnam (7), Mongolia (4), China (4), Laos (3), Malaysia (2), Thailand (2), Argentina (2), Cambodia (1), Myanmar (1), Tajikistan (1), Kazakhstan (1), Kyrgyz (1), Kenya (1), Paraguay (1), Chile (1), El Salvador (1) 2. Training Program in Japan: 60 Programs Indonesia (10), World (7), Asian Countries (7), Thailand (7), ASEAN Countries (including China) (5), Malaysia (4), China (4), Vietnam (3), Central Asian Countries (2), Laos (2), Mongolia (2), Central and Eastern European Countries (2), West Asian Countries (1), Tajikistan (1), Saudi Arabia (1), Syria (1), Kenya (1) 3. Dispatching Expert: 32 Experts Indonesia (10), Thailand (5), Vietnam (3), Mongolia (3), Uzbekistan (2), Malaysia (2), China (2), Philippines (1), East Timor (1), Papua New Guinea (1), Kenya (1), Switzerland (1) 4. ODA Loans: 11 Disbursements Philippines (2), Sri Lanka (2), Pakistan (2), Bangladesh (1), Ghana (1), Kenya (1), Peru (1), Bolivia (1)
(Road Map) JICA s Future Cooperation to SADC DFIs Setting up Phase Taking-off Phase Self-Sustainable Phase Training Program JICA Advisor Two Step Loan Project Loan Management Diagnosis Organizatonal Capacity DFI without Capacity Functionable DFI Viable DFI Financing Private Investment projects by Japanese Firms, etc Capital Volume JICA's Imput DFI's own Capital Pubulic & Regional Infrastructure Projects Public Private Partnership Infrastructure Projects SMEs, Farmers, house owners as domestic beneficiaries What JICA do for SADC DFIs? through Technical Assistance Drafting DFI s polices, rules and regulations Designing DFI s structure & its operation models (bond issues, ALM, lending, monitoring, etc) Formulating DFI s business Strategies & Action Plan Training for Knowledge and Skills Enhancement through ODA Loan Strengthening DFI s financial capital (Two Step Loan) Expanding DFI s lending opportunities for economic infrastructure development (co-finance with JICA Project Loan)
Characteristics of JICA s Assistance in Setting up Phase SADC Countries Targeted Country Competent Authority Concerned Authority Targeted DFI
Contents of JICA s Assistance in Setting up Phase DFI Diagnosis - Dispatching JICA study team for reviewing organizational capacities - Identifying operational and managerial issues which the DFI should resolve - Selecting candidates of training program in Japan - Submitting the diagnosis report including some practical recommendations how to solve specific issues of the DFI Training Program/Workshop - Lectures on Development Finance in Asian countries, Japanese Infrastructure Development, PPP investment, etc - Workshop to enhance skills and capabilities in terms of identified theme - Networking Japanese DFIs, Governmental Organizations and Private Companies - Discussion with JICA HQ about the way forward to achieve take-off phase Follow-up (if necessary) - Based on the request for additional technical cooperation, JICA may dispatch advisor to solve the DFI s managerial and operational issues
Development Finance Workshop in Japan (Tentative Course Plan) Workshop Program Flight Leave Africa (respective airports) (2 days) Arrive in Japan (Narita Airport) Workshop Lecture: About JICA (organization, roles), Roles and Responsibilities of JICA (10 days) Africa Division and Two-step loans Lecture: Linkage of development finance between Asia and Africa Lecture: Water industry in Japan Lecture: Development in Africa from Japan s viewpoint Lecture: Development and environmental protection in Japan Visit infrastructure project site (e.g. high-efficiency clean coal-fired power plant) Lecture: Next step of TICAD Lecture: Roles and responsibilities of JBIC Lecture: Economic development in Japan after WWII Lecture: Development finance in Japan after WWII Lecture: Infrastructure development in Japan Lecture: Industrial development in Japan after WWII and lessons for Africa from the experience Lecture: Infrastructure development in PPP Lecture: South Africa corridor project and finance Lecture: Roles of trading firms in infrastructure development Discussion: Issues in the three respective countries with regard to infrastructure finance and input from Japan - Reporters and panelists: 1 or 2 from each DFI - Panelists and commentators: MOFA and JICA Flight Leave Japan (Narita Airport) (2 days) Arrive in Africa (respective airports) JICA ADFIAP Secretariat MOFA JBIC
Overall Project Plan Year 2012 2013 Month 11 12 1 2 3 4 5 6 7 8 9 Deliverables (reports) Inception Report Draft Final Report Final Report 1st Mission Report 2nd Mission Report Brochure (draft) Brochure Schedule 1st Mission 2nd Mission Development Finance 3rd Mission Workshop in Japan WS Discuss Inception Report Clarify Issues Discuss Final Report Studies on SADC SADC Gather information and data with regard to finance sector (including infrastructure) (Interview with DBSA, SADC Secretariat, SADC-DFRC, and NEPAD) Find both Japanese companies' needs for the projects and financing (Interview with JICA, JETRO, and Japanese companies located in SADC area) Studies on Target Countries (Namibia, Zimbabwe, and Tanzania) Target Countries (Namibia, Zimbabwe, Tanzania) Work out present condition and issue of financial policy and financial sector development, and forecast growth of the financial sector (Interview with central banks and finance ministries) Gather information about financial sector (Interview with SADC Secretariat, central banks, finance ministires, target DFIs) Clarify current situation and issues in infrastructure finance in target countries (focusing on bankable sector: electricity, water, and ICT) (DFIs, managing ministries, major companies, commercial banks, etc.) Find the possibility of collaborative works and/or technical assistance project with JICA (based on the needs from the government and target DFIs) Comments from TICAD V Output from Development Finance Workshop Discussion output with Workshop participants and JICA Comments from counterparts Understand line ministries' policy and action plan toward funding gap in major infrastructure (Interview with line ministries and major service providers) --> Propose solutions Study on Target DFIs Target DFIs Gather information and analyze organizational structure and its operation of target DFIs (focusing on bankable sector: electicity, water, and ICT) 仮想 PDD 作成 (Interview with DFIs) Development Finance Workshop (in Japan) Mutual Work Select members, grasp needs from target DFIs, prepare for Workshop
Thank you very much! Tetsuya FUKUNAGA TICAD Advisor to DBSA from JICA fukunaga.jpn@gmail.com tetsuyaf@dbsa.org