The Nation Newspaper

Tag: AfDB

  • South-south senators may oppose $1.5b loan for states

    South-south senators may oppose $1.5b loan for states

    Federal Government request for Senate approval of $1.492 billion for development projects in ten states may spark another round of protest in the Senate.

    Senate President, Abubakar Bukola Saraki read Acting President Yemi Osinbajo’s letter entitled “Re- Federal Executive Council approval of the 2016-2018 external borrowing (rolling) plan” which gave details of the $1.492 billion loan request.

    Only two weeks ago, the South East Senate caucus protested against the exclusion of the zone in the $5.9 billion Chinese Exim bank loan for the development of rail lines in some parts of the country.

    Some south-south senators are already gearing up to oppose the approval of the fresh loan as a result of non-inclusion of any state from the south-south geo-political zone in the loan request.

    A prominent member of the south south Senate caucus said that they were taken aback when Saraki read the letter to discover that no state from the zone was included in the loan request.

    He noted that some of them have resolved to send words home to their governors to find out if they requested for the loan and were left out.

    “If turns out that any south south state was among the states that sought the loan and was left out we will definite oppose the approval of the loan. How can a loan of over one billion dollars for development projects be approved and there is nothing for the south south,” he said.

    In the letter, Professor Osinbajo said, “ I write in reference to my earlier letter requesting for the consideration and approval of the Senate for the 2016-2018 External Borrowing Plan and to request the Senate to separate the states’ projects from the items listed in the Borrowing Plan with a view to giving them accelerated consideration.”

    He listed the affected states and their projects as:

    Kaduna State Development Policy Operation (DPO) $350 million to be funded with a loam from the World Bank Assisted project.

    Ogun State Development Policy Project (DPO) $350 million also to be funded with a loan from the World Bank Assisted Project.

    Ebonyi Ring Road Project $70million to be funded by African Development Bank and co-financed with Islamic Development Bank.

    Rural Access and Mobility Project (RAMP) $100 million to be funded by the ADB

    Katsina Health System Project $110 million to be financed by Islamic Development Bank

    Jigawa State Integrated Rural Development Project $32.4million also to be financed by the Islamic Development Bank.

    Another Ebonyi State Ring Road Project $80million to be co-financed with AFDB

    Kano State Integrated Agricultural and Water Resources Development $200 million.

    Enugu, Kano, Plateau and Ondo States Third National Urban Water Sector Reform Project (NUWSRP-111 $200 million to be financed by French Development Agency, giving a total loan of $1,492,400,000.00

  • Plateau Potato Value Chain Project begins in June

    The Coordinator, Potato Value Chain Project in Plateau, Mr. Thaddeus Yelwa, said the project would commence in the state by June, 2017.

    Yelwa made the disclosure when Mr. Henry Yunkwap, the Majority Leader, Plateau House of Assembly, visited him in Jos on Thursday.

    ‘‘The potato value chain project will be formally launched in the state by June.

    ‘‘This project, to be funded by the AfDB, will cover production to the marketing of the product, and in turn give room for better yield and increase the income of the state.’’

    The News Agency of Nigeria (NAN) reports that the projects will also cover storage, processing and marketing of potato.

    He stated that the project, initially designed to cover the nine potato-producing local government areas, would now cover all the 17 local government areas of the state.

    ‘‘It was initially to cover just the nine potato-producing local government areas of the state, but now it will cover the entire 17 councils.

    ‘‘Those that don’t produce potato will benefit from other infrastructure such as roads, electricity, construction of dams and what have you,’’ he said.

    Yelwa further said the project would create jobs and make potato production a viable business where a lot of idle persons would be engaged in the production of potato.

    Earlier, the Majority Leader said he visited the coordinator to lobby for some projects to his constituency by the time the project would fully commence.

    He commended the coordinator and the Ministry of Agriculture for their efforts in in ensuring that Plateau was among the few states to benefit from the project.

     

  • Africa needs $35bn to close power deficit – Adesina

    Africa needs $35bn to close power deficit – Adesina

    The president of African Development Bank (AfDB), Dr. Akinwumi Adelina, on Wednesday said the continent needs $35 billion to close its power deficit.

    A statement issued in Abuja on Wednesday by AfDB Acting Director, Communications and External Relations, Jennifer Patterson, said Adesina made the remark at the Centre for Global Development in Washington, United States.

    Adesina said the bank’s vision for Africa was encapsulated in the High 5s.

    “They are to “Light up and power Africa, Feed Africa, Industrialize Africa, Integrate Africa and Improve the quality of life for the people of Africa,” the AfDB president said.

    He said to improve on energy, the bank had launched the New Deal on Energy for Africa with a commitment of $12 billion over the next five years and with the goal of leveraging between $45 billion and $50 billion respectively.

    Adesina added: “Our goal is to connect 130 million people to the grid, 75 million via off grids and provide some 150 million with clean cooking energy.

    “We have set up a whole new vice presidency just for power and energy; the first and only multilateral development bank to do so.

    “Last year, we financed $1.7 billion in the power sector across 19 countries and will increase this to $2 billion this year, leveraging $5-7 billion.

    “We have launched a $500 million Fund for Energy Inclusion with $100 million seed capital to provide affordable finance for companies investing in renewable energy.’’

    NAN

  • Akeredolu seeks AFDB’s partnership

    Ondo State Governor Oluwarotimi Akeredolu yesterday sought the collaboration of African Development Bank to fast-track development in the state.

    The governor said the state’s agrarian potentials needed the bank’s support.

    He spoke when the bank’s President, Dr Akinwumi Adesina, visited him in Akure, the state capital.

    Akeredolu, who said he was not afraid of being tagged as patronising Adesina,   pleaded that the bank should make its presence felt in Ondo State.

    Adesina said the state’s agricultural values can jump start its economy, noting that Ondo will witness rapid development under Akeredolu

  • TCN boss appointment not condition for AfDB loan – Fashola

    TCN boss appointment not condition for AfDB loan – Fashola

    The appointment of Mr. Usman Mohammed as interim Managing Director of Transmission Company of Nigeria (TCN) is not a condition for Africa Development Bank (AfDB) loan facility, the Minister of Power, Works and Housing, Babatunde Fashola, said on Monday.

    The AfDB had last week approved a $155 million loan for Economic and Power Sector Reform Programme (EPSERP) in the country.

    Fashola stated this when he appeared before the Joint Committee on Power on Monday in Abuja, the News Agency of Nigeria (NAN) reports.

    The minister’s appearance followed a petition written to the Senate by workers under the aegis of the National Union of Electricity Employees and the Senior Staff Association of Electricity and Allied Companies.

    The workers had alleged that due process was not followed in the appointment of Mohammed as TCN chief.

    Fashola, however, denied the allegations that the appointment of Mohammed, who worked with AfDB was a form of collateral for the loan.

    He said the appointment was designed to ensure responsiveness to the needs of generation and distribution companies in Nigeria.

    “The appointment of new TCN boss has nothing to do with lack of capacity. It has everything to do with the need to improve.

    “The transmission stations are the connectivity of sub stations and need to constantly interlink with themselves, have supervisory control and skills acquisition system that helps them perform optimally.

    “The engineers will not be able to do their work if the administrative sector that provides the tools budgeting and planning does not give them the tools to do their work,’’ the minister said.

  • AfDB approves $20m for project finance

    AfDB approves $20m for project finance

    The African Development Bank (AfDB) is granting $20 million soft commodity finance facility  for the development of Malawi, Zimbabwe and Mozambique.

    Specifically, the facility will be used to provide funding to purchase farm inputs (mainly fertilizer) to be supplied to farmers so as to ensure consistency and quality of the commodities being supplied to Meridian; purchase of soft commodities from over 10,000 farmers in Malawi, Zimbabwe and Mozambique; and, upon purchase of the soft commodities, provide working capital to Meridian to enable the company engage in basic processing of the soft commodities prior to export.

    It will enable the bank to reach small-scale farmers indirectly through a regional aggregator (Meridian) that understands the market in which it has accumulated a 40-year track record; understands the operational risks and is able to mitigate and manage them.

    Established in 1970 to assist the small scale farmer, Meridian focuses on production and supply of various agricultural inputs/outputs through a chain of vertically integrated subsidiaries in Malawi, Mozambique, South Africa, Zambia and Zimbabwe.

    The company currently employs over 4,200 employees and is one of Southern African Development Community (SADC)’s largest commodity aggregators, distributing over 250,000 metric tons of goods per annum throughout the region. Meridian is also a major buyer of soft commodities from small-scale farmers using its retail network of over 120 shops spread across rural areas. Among its shareholders is African Agriculture Fund (AAF), in which AfDB owns a 20 per cent stake.

    Also, as one of the largest commodity aggregators in Southern Africa, the Meridian group plays a significant role in the promotion of agribu-siness in five countries where its operations are in line with four of the Bank’s High five development priorities (Light up and power Africa, Feed Africa, Industrialise Africa, Integrate Africa, and Improve the quality of life for the people of Africa).

    Meridian’s key markets in Africa are Malawi, Mozambique, Zambia and Zimbabwe. Agriculture in these four countries accounts for approximately 32 per cent of GDP and provides a livelihood to 81 per cent of the population in the form of smallholder subsistence farming (56 million people).

  • AfDB lauds Nigeria’s leadership role in Africa

    AfDB lauds Nigeria’s leadership role in Africa

    The outgoing country Director of the African Development Bank (AfDB), Dr Ousmane  Dore has said Nigeria’s leadership role in Africa is unquestionable.

    He commended the country’s exemplary leadership role in Africa through the  Directorate of Technical Cooperation in Africa (DTCA), a window for assisting poor and fragile African countries.

    He who spoke during a brief farewell visit to the Minister of State, Foreign Affairs,  Hajia Khadija Bukar A. Ibrahim in Abuja, however urged Nigeria government to replenish its Technical Cooperation Fund  which is domiciled in the AfDB.

    He  said Nigeria’s leadership role in Africa is unquestionable especially in setting up the Nigeria Technical Cooperation Fund (NTCF) as a window for assisting poor and fragile African countries.

    Dore who came to bid goodbye to the minister, said  he has been promoted to the position of Director-General of the Central African Regional Office of AfDB.

    “The AfDB is proud of Nigeria’s exemplary role in championing the development of Africa and has decided to follow Nigeria’s lead with a Hi-five programme which will tackle Power generation, Food Shortage, Industrialisation, Integration and Poverty as its focal goals across Africa in the next couple of years,” he said.

    ‘’The Federal Government under President Muhammadu Buhari, though presently going through its share of the global economic shock, should replenish the Technical Cooperation Fund,’’ he noted.

    In 2004, the Federal Government set up a Nigeria Technical Cooperation Fund worth $25 million which was domiciled in the AfDB under the supervision of DTCA. The Fund has been used for various development projects and programmes in all the countries in Africa

    ‘’The AfDB is proud of Nigeria’s exemplary role in championing development of Africa and has decided to follow Nigeria’s lead with a Hi-five programme which will tackle Power generation, Food Shortage, Industrialisation, Integration and Poverty as its focal goals across Africa in the next couple of years.”

    Respoding, ,Hajia. Khadija thanked Dr Dore for the cooperation the AfDB enjoyed with the DTCA and the Ministry of Foreign Affairs and noted that the current global economic trend affected all economies adversely but that President  Buhari is positioning the country to continue to offer its traditional leadership role on behalf of the continent.

    She also welcomed Dr Dore’s determination to showcase Nigeria’s exemplary role in Africa and invited him to continue to use his influence to encourage other African countries to cooperate with country in moving the continent forward.

    The Acting Director General of the DTCA, Mr Mohammed Kachallah, commended the minister for sparing time from her very busy schedule to host the departing AfDB chief.

  • AfDB chief seeks Africa’s economic transformation

    AfDB chief seeks Africa’s economic transformation

    President of the African Development Bank (AfDB) Dr Akinwumi Adesina has called for improved access to financing to accelerate the transformation of African economies.

    Speaking before African leaders at the Africa-France Summit in Bamako, Adesina said Africa can speed up its economic transformation through the bank’s five main priorities which are the High 5; Light Up and Power Africa; Feed Africa;  Industrialise Africa; Integrate Africa; and Improve the Quality of Life of African Populations.

    These  priorities  align with the Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063, as demonstrated by an independent evaluation conducted by the United Nations Development Program (UNDP). However, Adesina noted that the resources needed for Africa’s economic transformation are enormous.

    That’s why AfDB is poised to launch the Africa Investment Forum designed to create a space where supply and demand can meet.

    Advocating for agroindustrialisation and involvement of young people, Adesina said: “The solution to the migratory crisis is in Africa is  why the bank launched the Enable Youth programme which will help create 1.5 million jobs in 30 countries, helping to engage  young people in Africa.

  • AfDB: entrepreneurship key to economic growth

    AfDB: entrepreneurship key to economic growth

    The African Development Bank (AfDB) has reiterated the roles of entrepreneurship in building economic development. The AfDB publication, “The Role of Nascent Entrepreneurship in Driving Inclusive Economic Growth in North Africa”, analyses the role of nascent entrepreneurship in driving inclusive growth in North Africa.

    It said inclusive growth allows vulnerable population (poor, women, youth), to participate in, contribute equally to, and benefitting from economic growth.

    The lender said  the vulnerable population can participate in economic growth through the private sector in  two ways, including as employees (job creation) or as business owners (entrepreneurship).

    The major conclusion of this publication is that entrepreneurship skills are present among the youth but the initial conditions are making the main difference. In fact, there is too much loss during the process, to the detriment of a private sector led growth.

    It said that two main constraints are identified for the vulnerable to contribution to economic growth as business owner. “The first constraint is the low education level. Indeed, the results have shown that most of the individuals that engage in business creation have at least post-secondary education. This implies that they are able to deal with the basic paperwork required to set up a business. The second constraint referred to access to finance. It has been shown that individuals with informal investor and/or wealthy family are willing to be business owners,” it said.

    It said that within these countries, the mortality rate of created enterprises is high as a result of a lack of accompaniment for these nascent entrepreneurs.

    “As a matter of fact, governments’ role is crucial in supporting nascent entrepreneurs during the transition to new business owners firms. In fact, governments should provide nascent entrepreneurs with the skills and experience they need to be successful entrepreneurs through a high quality of training programs including skills development, enhancing international languages, improved career guidance and direct linkages with employment opportunities. Indeed, governments have to ensure the quality of trainings covering the whole chain of the economic sector considered by the nascent entrepreneur and addressing its specificities,” it said.

    The AfDB said the low level of education does not guarantee the innovation aspect for the new enterprises. Governments, through mentoring and internship opportunities, are able to make nascent entrepreneurs innovative and transforming the entrepreneurial spirit to a culture of entrepreneurship allowing new firms to grow and thrive in a difficult business environment.

  • AfDB lists complaints procedures for financed projects

    AfDB lists complaints procedures for financed projects

    The Compliance Review and Mediation Unit (CRMU) of the African Development Bank Group (AfDB) is organising an information workshop on “Handling complaints from people affected by AfDB-financed projects” next week in Yaoundé, Cameroon.

    During the two-day workshop, bank experts will brief the participants on issues of accountability, compliance review and problem-solving/complaint-handling approaches. The workshop will also discuss information and mediation training needs and result in a collaboration framework between CRMU and project implementation units, and between CRMU and civil society organisations.

    The meeting, a statement from the bank said,  will bring together some 40 stakeholders from civil society organisations, project implementation units, the media and the government.

    The meeting is intended to equip participants with the needed tools to provide support to people adversely affected by Bank-financed projects when they want to complain to the AfDB as a result of non-compliance with the Bank’s own applicable policies and procedures.

    According to Director of CRMU, Sekou Toure: “Bank financed-projects are characterized by their impact on beneficiaries. Performed under optimum conditions, these projects improve the living conditions of the population while they contribute in a broader sense to the development of the economies of African countries. Despite the enormous efforts made to extend the project benefits to all, it happens often that some people are negatively impacted because of these projects.

    “When this happens, they can use us as a recourse system and submit their complaint that will be handled in line with the procedures of the Independent Review Mechanism (IRM).”

    Coming to CRMU implies that the Independent Review Mechanism (IRM) is well known. It is for this purpose that the Compliance Review and Mediation Unit of the Bank that administers the IRM organises a set of outreach activities to raise awareness about the IRM.

    The Unit works also to establish frameworks for collaboration with relevant stakeholders for the purpose of ensuring that the concerns of the affected people are addressed adequately.