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Tag: AfDB

  • IMF, AfDB, others support global devt agenda

    Multilateral Development Banks (MDBs) and the International Monetary Fund (IMF) have commended the adoption of a sustainable development goals (SDGs) for the next generation and made commitments to step up support to ensure its success.

    At the just-concluded United Nations General Assembly in New York, world leaders endorsed new Sustainable Development Goals, an ambitious agenda that aims to end poverty, promote prosperity and to protect the environment.

    Leaders of the MDBs – the African Development Bank (AfDB), Asian Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, World Bank Group — and the IMF described the agreement as an historic landmark.

    “The well-being of our planet and its people are at the heart of the new goals. They point the way towards greater prosperity and equality and will ensure more robust and sustainable economic growth,” the leaders said.

    Earlier this year at a Financing for Development conference in Addis Ababa, the institutions unveiled plans to scale up their finance and support for countries seeking to achieve the development goals, pledging to increase their financial contribution to more than $400 billion over the next three years.

    They vowed to examine how they could increase their own financing and also to work to ensure a greater mobilisation of domestic resources and expanded funding from the private sector.

    Contributing to the discourse, AfDB President, Akinwumi Adesina, said the African Development Bank is fully committed to the successful implementation of the Sustainable Development Agenda (SDGs).

    We will work with our member countries, the private sector, civil society and other partners to deliver on the SDGs for Africa. The SDGs must work -and they must work for Africa.”

    In his remarks, President, World Bank Group, Jim Yong Kim, said: “The international community showed wisdom and courage fifteen years ago in adopting the Millennium Declaration, which set out eight ambitious goals to improve the lives of billions and bring the world together in closer cooperation and partnership. We cut poverty in half five years earlier than the declaration’s deadline, so I am confident we can achieve the great aspirations of these new global goals – particularly the first, which is to erase the scourge of extreme poverty from our planet by 2030.  We can, and must, end this terrible blot on our collective conscience.”

  • AfDB gears up for role in post-2015 agenda

    AfDB gears up for role in post-2015 agenda

    A delegation from  the African Development Bank (AfDB) led by its new President, Akinwumi Adesina, would ensure that Africa’s voice is heard at the United Nations (UN) Sustainable Development Summit holding next week in New York.

    During the visit, Adesina and his team are expected to participate in a series of multilateral and bilateral meetings and engagements with partners, civil society, media and many eminent persons, including UN Secretary-General Ban Ki-moon, IMF Managing Director Christine Lagarde and Bill Gates.

    AfDB said more than 150 world leaders are expected to attend the summit to adopt an ambitious new sustainable development agenda. This agenda will serve as the launch pad for action by the international community and by national governments to promote shared prosperity and well-being for all over the next 15 years.

    Building on Adesina’s five-point vision, to “Light up and Power Africa, Feed Africa, Integrate Africa, Industrialise Africa, Improve quality of life for the people of Africa, the bank committed to play a catalytic role to mobilise funds for the Social Development Goals (SDGs).

    The post-2015 agenda provides a new global framework for countries to better focus, coordinate and integrate their efforts as they work towards sustainable development, while eradicating poverty in all its forms.

    The new 17 SDGs are universal set of goals, targets and indicators that UN Member States are expected to use to frame their national development plans and policies over the next 15 years. The SDGs follow, and expand on, the Millennium Development Goals (MDGs), which were agreed by governments in 2000, and which are due to expire at the end of this year.

    Aligned to the AfDB’s 10-Year Strategy 2013-2022, the SDGs reflect the development aspirations of African countries that emphasise the need for inclusive and green growth in the quest for sustainable development and poverty eradication.

    The AfDB said it will along with other development partners, will be providing support to its Regional Member Countries in Africa in implementing the SDGs by mobilising additional resources and providing technical assistance and policy advice.

    The bank is also actively contributing to the development of the SDGs and raising the African voice in the discussions, including through a dedicated Africa Regional Report on the SDGs, jointly produced with the United Nations Economic Commission for Africa (ECA) and the African Union.

    The UN Summit follows the Addis Ababa Financing for Development Conference held in July 2015, where the broader development community and the Multilateral Development Banks (MDBs), including the AfDB, were called upon to enhance the leverage and multiplier effects of financing and provide innovative financing solutions in order to help countries to maximize their own resources.

    The AfDB co-authored a paper with other MDBs entitled “From Billions to Trillions”, which affirms how the SDG goals are ambitious, and how they – in turn – demand equal ambition in using “billions” in official development assistance (ODA) and available development resources to attract, leverage and mobilize “trillions” in investments.

     

     

     

  • BoI secures AfDB’s $100m facility for SMEs

    BoI secures AfDB’s $100m facility for SMEs

    To aid its development financing objectives, especially to Small and Medium Enterprises (SMEs), the Bank of Industry (BoI), has secured a $100 million line of credit from the African Development Bank (AfDB).

    According to the bank, the line of credit, which is designed for on-lending to SMEs engaged in export-oriented businesses, is the first of such foreign facility accessed by BoI after its reconstruction in 2001 out of the defunct Nigeria Industrial Development Bank (NIDB).

    The bank, in a statement at the weekend, explained that already, the first tranche of $50 million was recently disbursed to BoI from AfDB for on-lending to small businesses engaged in export-oriented businesses with capacity to generate foreign exchange.

    BoI added that the credit approval was received as a result of the implementation of various strategies and plans which have enhanced its operations and repositioned it to better tackle the current challenges of Nigerian small businesses.

    “In order to deepen the impact of the facility, BoI hired an

    international firm, Messrs. BDO/GBRW, based on African Development Bank’s quality selection procedure, to render capacity building services to BoI staff and the prospective SME customers. The capacity building services would enhance the business capabilities of the SME customers thereby enabling them to better manage their businesses and mitigate risks. The capacity building would also strengthen the ability of staff members to manage small business loans and the related risk management issues.

    “BoI wishes to acknowledge the support of the Federal Ministry of Finance, Debt Management Office (DMO) and the Central Bank of Nigeria (CBN) among other stakeholders for facilitating access to the Line of Credit”, the statement read in part.

    The bank however urged prospective entrepreneurs engaged in export-oriented businesses with potential to earn foreign exchange to submit their applications to facilitate access to the facility.

  • Stockbrokers to partner AfDB on national, continental devt

    Stockbrokers to partner AfDB on national, continental devt

    STOCKBROKERS, who form the bulk of operators and the main link at the capital market, have outlined areas of mutual interests for collaboration with the new management of the African Development Bank (AfDB).
    Stockbrokers, under the aegis of the Chartered Institute of Stockbrokers (CIS), said the partnership between the CIS and the AfDB could provide much-needed linchpin for the development of the continent, especially Nigerian agricultural sector.
    Under the new plan, the two institutions are to work together in ensuring the viability of the commodities market and listing of agro-allied companies to boost activities in agriculture in line with the Federal government’s plan to diversify income base by shifting attention from oil.
    Addressing capital market correspondents at the weekend, acting president, Chartered Institute of Stockbrokers (CIS), Mr. Oluwaseyi Abe congratulated the newly appointed president of AfDB, Dr. Akinwumi Adesina, noting that the CIS had been working closely with Adesina during his tenure as Nigeria’s Minister of Agriculture.
    He pointed out that both the CIS and AfDB had many things in common, especially in the areas of creating awareness on the benefits of promoting active commodities exchange and the listing of companies in the agro allied industry.
    “We need active and transparent commodities exchange in order to develop our agricultural sector as a huge source of income rather than depend on crude oil. This is in tandem with the Federal Government Policy of diversification of the economy. The agro allied companies require standardization of products and effective pricing mechanism to thrive. The CIS trains manpower in this regard,” Abe said.
    According to him, other areas of partnership with AfDB include listing of power related institutions to access capital through the various relevant market platforms, and partnership with CIS for empowerment on its Diploma Programme to create employment and support financial inclusion programme of the government, especially into the rural communities.
    “The CIS is willing to engage AfDB on how we can harmonise our Diploma Programme. The ultimate is to empower the holders of our Diploma to create employment and enhance the government’s financial inclusion programme especially into the rural communities,” Abe said.
    He noted that the focus of the institute’s professional diploma was not only to grow membership but develop a new generation of entrepreneurs who would become foot solders in the various sectors of the financial market.
    Abe announced that the Institute’s 2015 Annual Conference of Stockbrokers would hold on October 29 and 30 with the theme: “Entrepreneurship and the Capital Market: Fast Tracking a New Economy for Africa.”
    In his remarks, second vice president, Chartered Institute of Stockbrokers (CIS), Mr. Dapo Adekoje reiterated the plan to deepen the market through effective operation of the commodities exchange.
    Registrar and Chief Executive, Chartered Institute of Stockbrokers (CIS), Mr. Adedeji Ajadi added that the professional diploma was already generating interest in the public as many youths are now writing the examination.

  • AfDB’s loans, grants hit $7.8b

    Although African Development Bank’s (AfDB’s) financing in Africa is overshadowed by lenders, such as the World Bank and China, its loans and grants totalled $7.8 billion in 2014, 22 percent more than the previous year’s.

    The World Bank committed a record $15.3 billion to sub-Saharan Africa projects in the fiscal year which ended June, last year.

    The new President of the AfDB, Akinwumi Adesina, who took charge on Monday, is taking over an institution entering a much tougher economic environment than the one his predecessor, Donald Kaberuka, inherited when he won the job a decade ago.

    The former Minister of Agriculture and Rural Development was elected on May 28, this year during the AfDB’s yearly meeting in Abidjan, Ivory Coast. He will face a slowdown in some of Africa’s biggest economies after a plunge in oil prices and rising political risk. He said the AfDB needs to focus on promoting investment by businesses.

    Kaberuka, who visited Nigeria prior to end of his tenure, expressed his assurance that the AfDB will continue to support economic projects in Nigeria.

    The Federal Government had earlier remarked that with the shock of falling oil prices, lack of revenue and insecurity, the elites must provide guidance in their communities, and also lead the economy on the right path.

    President Muhammadu Buhari, who received him, at the State House also said his administration would welcome more support from the AfDB for projects in versatile sectors, such as agriculture, that can easily be explored to create more jobs for unemployed Nigerians.

    Speaking to the AfDB staff before his exit, Kaberuka said: “I was optimistic then, and I’m optimistic now. I leave the bank as confident as ever about where Africa is heading. Presidents come and go, but the bank stays. Africa needs a strong AfDB – and we have an AfDB that gets stronger by the day.

    “In all of our challenges, we have always been sure of the cause we were fighting for – the economic transformation of this continent. I’ve fought the fight, finished the race, and kept the faith. Whatever I do now, I know that it will be about Africa, for Africa, and most likely in Africa.”

    The Chairperson, African Union Commission, Nkosazana Dlamini-Zuma, said: “We bid our brother Donald farewell from the bank, but not from the continent. I thank him for his wisdom, support, encouragement. I thank him for being who he is – in loving and respecting himself first, so he could love and respect his colleagues and the people of this continent.”

    While sub-Saharan Africa has grown faster than any region in the world except developing Asia in the past 10 years, an almost 40 per cent slump in the price of oil in the second half of last year and declining metal prices are clouding the outlook for economies such as Nigeria,Angola and Zambia.

    The International Monetary Fund (IMF) last two month lowered its economic growth forecast for sub-Saharan Africa by 1.25 percentage points to 4.5 per cent.

    In West Africa, where the worst outbreak of Ebola has crippled Sierra Leone, Guinea and Liberia, a 53 percent plunge in iron ore prices since the beginning of last year has hampered growth.

    Economic growth on the continent can return to levels recorded before the global financial crisis in 2008-2009 if commodity prices stabilise, the AfDB said in its African Economic Outlook report. The bank is estimating 4.5 percent expansion in Africa this year and five percent in 2016.

    Analysts said the bank must increase efforts to keep wealth on the continent and share it more equally among citizens if it wants to stay relevant and meet its aim of reducing poverty.

     

     

    “The biggest challenge facing Africa today is to transform the tremendous wealth of Africa for the benefit of Africans,” Jaloul Ayed, one of the eight contenders for the position and a former finance minister in Tunisia, who lost the position to Adesina said.

     

  • AfDB chief Adesina to tackle Africa‘s power shortages

    AfDB chief Adesina to tackle Africa‘s power shortages

    The African Development Bank (AfDB) will focus in coming years on tackling Africa’s chronic power shortages to try to unlock its economic potential and end its vulnerability to fluctuations in commodity prices, its new president, Dr. Akinwunmi Adesina, has said.

    Though it boasts nearly a billion people, sub-Saharan Africa consumes about as much power as Spain, with less than five percent that number, due to poor generating capacity and limited transmission networks. Two-thirds of Africans have no access to electricity, Reuters reported.

    The lack of reliable power grids is a major obstacle to industrialising the continent’s economies at a time when Africa hopes to make a transition from commodities producer to a manufacturing hub and challenge Asia where labour costs are rising.

    According to the International Energy Agency, Africa requires an additional $450 billion in power sector investment to halve blackouts and achieve electricity access for all in urban areas by 2040.

    As of 2013, the bank – founded in 1964 and funded by African nations and shareholder countries outside the continent – had lent a total of 67.22 billion Units of Account or about $94 billion.

    “Africa could easily be growing at double-digit GDP rates if we solve this problem of energy,” said Adesina, a former Nigerian agriculture minister, who was sworn in as the AfDB’s eighth president on Tuesday.

    “Energy poverty on the continent has to be solved as a matter of urgency, as a matter of scale. This is going to be my most important priority,” he told Reuters.

    A development economist with a doctorate from Purdue University in the United States, the 55-year-old was elected in May to head the Ivory Coast-based institution for a five-year term.

    “Africa has to industrialise,” he said. “We have to add value, so that (Africa) does not expose itself to the continued volatility of global prices for commodities,” he added.

     

  • Osinbajo to leave for Abidjan Monday night

    Osinbajo to leave for Abidjan Monday night

    Vice President Yemi Osinbajo will depart Abuja Monday to represent President Muhammadu Buhari at the swearing-in ceremony of Nigeria’s immediate past Agriculture Minister, Dr. Akinwunmi Adesina, as President of the African Development Bank (AfDB).

    The inauguration, according to a statement issued by his Senior Special Assistant on Media and Publicity, Laolu Akande, will take place on September 1 at the Ivoirian capital city of Abidjan.

    It reads: “It would be recalled that President Buhari actively supported the candidature of the AfDB president-elect in a keenly contested election conducted in May this year even before the Buhari presidency assumed office.

    “The Vice President will speak at the event and return to Abuja later tomorrow.”

  • How to fund economy, by AfDB

    How to fund economy, by AfDB

    The Africa Development Bank (AfDB) has advised the Federal Government to develop multiple financial instruments to get funding for the basic sectors of the economy.

    Its Country Director, Dr. Ousmane Dore said the move is important to boost and sustain Domestic Resource Mobilisation (DRM) of the nation.

    In a document titled, Domestic Resource Mobilisation for Nigeria’s Development: Need for National Compact against Illicit Financial Flows, made available to The Nation yesterday in Abuja, Dore said the country has abundant resources, adding that what is needed  is supervision of how funds are used.

    Dore said: “DRM in Nigeria is characterised by several stylised facts that reinforce the need for renewed focus on the issue. First, the economy exhibits narrow tax base, with oil and gas sector accounting for 75 per cent to 80 per cent of total tax receipts.

    “So, it is constrained by poor financial market instruments. For example, Nigeria sits on large financial resources such as the Pension Fund with N4.7 trillion assets, but financial instruments for deploying these funds to the needed sectors in the economy are very limited.

  • Elites must help Nigeria to overcome challenges – Buhari

    Elites must help Nigeria to overcome challenges – Buhari

    President Muhammadu Buhari on Monday called on Nigeria’s elite to be prepared to contribute more meaningfully towards helping the country overcome its current challenges.

    He made the call while receiving the outgoing President of the African Development Bank (AfDB), Dr. Donald Kaberuka.

    Buhari in a statement issued by his Special Adviser on Media and Publicity, Femi Adesina, said the privileged and influential citizens clearly have to do more now than in the past to help the country deal successfully with its economic and security problems.

    “With the shock of falling oil prices, lack of revenues,  and insecurity,  the Nigerian elites must now wake up and provide the right guidance in their  communities, and also lead the economy on the right path more than they used to do,’’ the President said.

    He also said his administration will welcome more support from the AfDB for projects in versatile sectors like agriculture that can easily be explored to create more jobs for unemployed Nigerians.

    He said: “An impression has been erroneously created that we are a rich country but looking at the economic profile of the country today, you will see that that is not necessarily the case.

    “Our social services have to be seriously rehabilitated. We need urgent attention on areas like education and health services, not only in the north eastern part of the country, but all round the country.

    “We will fall back on institutions like the AfDB for support in generating employment. We have vast potentials in the agricultural sector that can be explored to create more jobs.

    “We also have small businesses that need funds for expansion.”

    The outgoing AfDB President told President Buhari that some development institutions like the World Bank, German Development Bank and the European Development Bank had already indicated their readiness to provide long term loan facilities to small businesses in Nigeria.

    Mr. Kaberuka assured the President that the AfDB will always support economic projects in Nigeria.

  • AfDB to drive women development initiatives

    The African Development Bank has held high-level consultations with the Dutch government about developing a platform for providing women with market information to enhance their participation in agricultural trade.

    The bank’s Special Envoy on Gender, Geraldine Fraser-Moleketi and experts from the Centre for the Promotion of Imports (CBI) from developing countries, a unit under the Dutch’s Ministry of Foreign Trade and Development Cooperation, explored options of designing a user friendly platform to ensure needs of women were met.

    Of importance was how to address gaps prohibiting women from accessing relevant information that can help them reap maximum profits from agriculture. The SEOG emphasised the need for timely, accurate and transparent information, and the economic empowerment of women in the sector.

    She pointed out that the initiative was opportune, given the African Union Commission’s (AUC) declaration of 2015, as the “Year of Women Economic Empowerment”.

    The Special Envoy expressed the urgent need to go beyond conventional approaches in meeting the information needs of women. “It is time to employ innovative ways in alleviating gender-based constraints in agricultural trade,” said Moleketi.

    The  discussions were held at the bank’s headquarters in Abidjan. They focused on designing, developing and implementing an Agricultural Trade and Investment Market Intelligence Platform.

    Just recently, the office of the SEOG completed a study on “Women in Agricultural Value Chains”, which identified gaps including information asymmetry, that compound market access constraints. The Market Intelligence Platform will serve as a knowledge-driven one-stop-shop, closing market access information gaps that deter women, youth and men from equitable, profitable and sustainable participation in agricultural trade.

    CBI experts lauded the platform’s market intelligence aspect, saying it provided exporters/users with practical tips that had a direct boost to their businesses and sustained market share”.

    The bank’s Director of Agriculture and Agribusiness department, Chiji Ojukwu, reiterated the initiative’s potential to contribute to improved intra-African agricultural trade and regional economic integration.  He described it as an innovative and transformative catalytic tool for Africa’s inclusive agricultural trade-driven economic and developmental growth.