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Tag: AfDB

  • African Banker Magazine profiles Adesina, others for AfDB presidency

    African Banker Magazine profiles Adesina, others for AfDB presidency

    The second quarter issue of African Banker Magazine has profiled Nigeria’s Minister of Agriculture and Rural Development, Akinwumi Adesina and seven other candidates vying for the African Development Bank (AFDB) Presidency.

    In the magazine’s one-to-one sessions, Adesina and other candidates, for the continent’s premier multilateral financial institution, shared their strategic visions, priorities and agendas for the bank.

    In the extensive dossier, the eight candidates indicated their suitability for this momentous job and the credentials required to lead Africa’s most prominent development institution.

    The eight candidates spoke candidly and openly about their ambitions for the bank. Among the eight contenders vying for the Presidency, five currently serve as ministers, one former minister and a Development Banking specialist.

    Adesina feels that his experience in transforming the agricultural sector in Nigeria, and his first experience working and operating in various African countries will keep him in good stead. “My vision is based on continuing decentralisation and increasing support for private initiatives,” he said.

    Having overseen Ethiopia’s strong growth into one of Africa’s leading economies, the country’s Finance Minister, Sufian Ahmed, believes the AfDB will be safe in his experienced hands.

    The former Minister Finance of Tunisia, Jaloul Ayed, asserts that his banking experience has allowed him to gain a clear understanding of Africa’s full potential. He calls for an AfDB that is closer to its markets.

    Chad’s Minister of Finance and Budget, Kordjé Bedoumra, states that following his previous tenure at the AfDB, he has the experience and expertise to improve operational efficiency of the bank as well as shape its short and long term policies.

    The only female candidate in the race is Cape Verde Minister of Finance and Planning, Cristina Duarte,  who says whatever improvements need to be made, the AfDB can never forget its mission, which is to serve Africa and its people.

  • Why AfDB job may elude Nigeria, by experts

    Why AfDB job may elude Nigeria, by experts

    Nigeria’s bid for the African Development Bank (AfDB) may fail because it is simultaneously bidding for the African Export-Import Bank head, it was learnt at the weekend.

    Out-going Minister of Agriculture Dr. Femi Adesina, who is a frontline aspirant for the AfDB job, is supported by President-elect Muhammadu Buhari, who has sent former Vice President Atiku Abubakar to South Africa to lobby for his candidature.

    Another Nigerian, Benedick Oramah, has been unanimously nominated as the President of the African Export-Import Bank. The bank has its headquarters in Cairo, the capital of Egypt.

    Some experts fear that while South Africa may back Adesina, Egypt may not support Nigeria’s bid for AfDB president because it means Nigeria will be heading two foremost financial institutions in Africa at the same time.

    They recall that when a Nigerian, Bisi Ogunjobi, aspired to the AfDB president some years back, Cairo objected to his bid, pointing out that Nigeria was already playing a domineering role in the African Export-Import Bank.

    According to the experts, who pleaded not to be named, two Nigerians, former Nigerian Ambassador to South Africa Alhaji Sheu Malami and former External Affairs Minister Gen. Ike Nwachukwu, who were sent to Cairo by the Federal Government to lobby for Ogunjobi met a brick wall because the Egyptian government complained that Nigeria could not occupy the presidency of the two continental banks at the same time.

    According to a source, Nigeria should lobby Egypt more, instead of concentrating attention on South Africa, which may not raise objection to Adesina’s bid.

    Said the sourve, who also sought anonymity because he is not permitted to talk to the media: “South Africa is not our problem. Egypt is our challenge. In terms of contributions to the AfDB, Nigeria has the highest share or equity holding, followed by Egypt. When Nigeria and Egypt are not together on a cause, it gives room to smaller countries. Egyptians are not happy with Nigeria, which has been playing domineering role in African Export-Import Bank in the last 20 years.

    “The question is: Is Nigeria aware that a Nigerian is contesting for the presidency of the Afrex Bank for the second time in 20 years? Can Nigerians be bidding for the presidency of two African institutions in the same year, despite the strength of Egypt in both institutions? Should we not be talking to Egypt, instead of South Africa?”

    Another expert, who gave an insight into the politics of selecting AfDB and Afex Bank presidents, said Egypt may rally some friendly countries to demand for concessions from Nigeria before supporting Adesina’s bid.

    He added: “The idea of the African Export-Import Bank took off from Nigeria, which had a Nigerian Export-Import Bank moderated by the Central Bank. Nigeria nominated its first President, Christopher Edordu, a very intelligent technocrat and financial guru. But, when his term expired, he had wanted to seek for an extension after 10 years. He finally handed over to Mr. Jean-Louis Ekra from Ivory Coast.

    “Since Egypt felt that Ekra was not properly elected, he was not allowed to operate in Egypt. Therefore, he relocated to Nigeria. The Ministry of Finance was aware of this. Edordu remained as a consultant. Now, his former Personal Assistant, Oramah, is being sponsored for the Afex President. Do you think Egypt will agree?”

  • AFDB reviews Strategic Crops in Africa project

    The Support to Agricultural Research for Development of Strategic Crops in Africa (SARD-SC) project, funded by the African Development Bank (AFDB) is  holding its Mid-Term Review this month.

    In a statement the project said  the Mid-Term Review (MTR) conducted by AFDB officials is to assess the progress made mid-way in the implementation of the project.

    Focus is on the achievements of the four  mandate crops ( rice, wheat, cassava and maize) and the impact of the value chains on enhancing  food and nutrition security  in 20 of the bank’s regional member-countries in Africa. Two teams from AFDB are undertaking the review.

    One of the teams led by Principal Agricultural Economist at AFDB, Dr. Jonas Chianu, will commence the mission  in ICARDA (International Center  for Agricultural Research in the Dry Areas), Tunis office, Tunisia.

    ICARDA is the implementing centre for the wheat value chain of the project. The second Bank team led by Chief Agricultural Economist and Task Manager for the project, Dr. Ibrahim Amadou,  is scheduled to visit Benin and Nigeria. They will first travel  to Benin Republic to  review progress on AfricaRice  activities on the rice value chain. The Project Implementing Unit of AfricaRice, the implementing center for the rice value chain, will make presentations and hold discussions on status of project implementation, critical issues and challenges.

    From May 13 to 14, a Stakeholders Consultation Workshop will be held in International Institute of Tropical Agriculture (IITA), Ibadan; expected at the  event are partners, scientists, researchers, and other stakeholders. The workshop will enable the various stakeholders of the project to listen to the review findings and recommendations and contribute through group discussions to shaping the draft review report presented at the workshop.

    The draft MTR report and Aide Memoire for the mission will be finalised by the Bank team and the Project consultant.

    The SARD-SC project is a multinational, CGIAR-led  project  launched in December 2012, at  the International Institute of Tropical Agriculture, Ibadan, Oyo State, with an overall objective to enhance food and nutrition security and  contribute to poverty reduction in  the African Development Bank’s low income Regional Member Countries (RMCs).

    The target RMCs are: Benin Republic, Cote d’Ivoire, DR Congo, Eritrea, Ethiopia, Ghana, Kenya, Lesotho, Madagascar, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, Zambia and Zimbabwe.

    The project is a research, science  and technology development project  targeted at improving the productivity of and income from cassava, maize, rice and wheat.

    These are four of the six commodities that African Heads of States have, through the Comprehensive African Agricultural Development Programme (CAADP), defined as strategic crops for Africa.

    Consequently, the project would enhance  the productivity  and  income of the  four CAADP’s priority  value chains.

  • AfDB okays $26m for water project

    AfDB okays $26m for water project

    The African Development Bank Group (AfDB) has allocated a loan and a grant amounting to $25.995 million dollars to finance a water project in Mahe in the Seychelles.

    The Mahe Sustainable Water Augmentation Project (MSWAP) approved by the AfDB Board on Wednesday, April 1, this year in Abidjan, seeks to promote the country’s economic development by improving water supply capacity and resilience against climate change.

    The project aims at achieving the Seychelles 2008-2030 Water Development Plan (SWDP) target supported by the African Water Facility (AWF), which is hosted and managed by AfDB. Currently, the country can only meet about 60 per cent of its potable water needs due to limited storage capacity, increased demand for housing construction, and water losses along the network.

    Water shortages are common in Mahe, the Seychelles’ largest island, especially during the dry seasons when water rationing is enforced. The project would: (a) Improve water supply services through reduction of the number of days when water is rationed; and (b) Increase water production capacity to cover areas in the island’s northern region.

    The project is anchored in the country’s Medium Term National Development Strategy 2013-2017 (MTNDS). The strategy focuses on strengthening the foundations of economic growth; improving the quality of life; and ensuring environmental sustainability.

    It is in line with the bank’s adjusted Seychelles 2011-2015 Country Strategy Paper (CSP), which focuses on infrastructure development, concentrating solely on the water infrastructure sub-sector.

    The CSP is keen on enhancing the country’s water storage capacity, allowing it to better respond to climatic variability and the increasing water demand. It will also help to promote economic growth by reducing overreliance on desalination and improving social development by increasing access to water and sanitation. The Bank’s intervention will also contribute to greater diversification and competitiveness of the Seychelles economy.

    Direct beneficiaries of the project are the water users on the island of Mahe whose demand is projected to increase by 130 per cent by 2030. Domestic, industrial and touristic use, which currently accounts for 36 per cent, 11 per cent and five per cent of the total water demand, are expected to increase by 140 per cent, 400 per cent and 190 per cent. The main impact of the project will be the improvement in quality of life and reliability of water services for household, industrial, commercial activities and tourism, especially in the dry seasons.

    The funding comprises $20.60 million ADB loan and $1.40 million grant from the Middle Income Country Technical Assistance Fund. The Seychelles government will provide the remaining $3.995 million.

  • Fed Govt seeks $2b W/Bank, AfDB loan

    Fed Govt seeks $2b W/Bank, AfDB loan

    A few days to a crucial national election and crippling low oil revenue, the Federal Government has gone to borrow $2 billion from the World Bank and the African Development Bank (AfDB) so it can implement its policies and programmes this year.

    The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, said the facility was part of the approved 2012-2015 External Borrowing Plan and being a concessionary loan, she said the facility would pose no  burden on the nation.

    The minister who spoke during   an interactive session with reporters in Abuja, yesterday,  also said the  government was working to strengthen the nation’s currency, among others.

    She said: “We have entered negotiations with international financial institutions, specifically, the African Development Bank and World Bank. You know they have some resources for us already programmed, which is in the Borrowing Plan. We have asked them to turn these resources into budget support for us. We are negotiating for $2 billion that will come in foreign exchange. “The terms of this loan from the AfDB are quite reasonable (between three and four per cent) compared to what you can get outside, and this is money that they had committed and set aside for us. “So we have decided to draw on it and use it in the form of budget support to come in form of foreign exchange.

    “Government will get the naira equivalent given to us by the Central Bank.  It will come in two tranches. It will bring in the needed foreign exchange that will help our private sector people to have access.

    “So, it will alleviate the situation. It’s something that we are working on. We are communicating day and night with them. We have to address the needs of manufacturers and others. That is one more thing we are doing and I hope that will help to ameliorate the situation.”

    The CBN governor had on on Tuesday, said the nation’s foreign reserve now stands at about $30 billion in an economy that is partially dollarised, coupled with high dollar demand and low foreign exchange inflow.

    As a first step to check the economic slide, the minister of finance appealed to Nigerians to reduce their appetite for imported goods and patronise made-in-Nigeria products so as to conserve available reserves for more productive uses.

  • AfDB approves $174m for Nigeria’s ATASP-1

    AfDB approves $174m for Nigeria’s ATASP-1

    The African Development Bank has approved $174.85 million towards financing the Agricultural Transformation Support Programme (ATASP-1) in Nigeria.

    The ATASP-1 will be implemented as a five year plan, financed from the African Development Foundation (ADF) loan and grant resources respectively in four Staple Crop Processing Zones (SCPZs).

    The Country Director, AfDB, Nigeria Field Office, Mr. Andoh Mensah, said this at the weekend in Abuja during the ATA Support Program 1 and stone laying for the youth in agribusiness center organized by the International Institute for Tropical Agriculture (IITA).

    He said: “The Agricultural Transformation Agenda Support Program Phase 1 (ATASP -1) unlike previous interventions which focused on agricultural production will adopt a commodity value chain development approach in four staple Crops Processing Zones.

    “In other to enhance production and productivity, farmers comprising mainly of youths and women will be trained and retrained along the value chains through an efficient and participatory approach by IITA, Ibadan.

    “The entrepreneurship training otherwise called ‘outreach programme’ will be carried out in three training centers, whose construction/ rehabilitation will be supported by the AfDB.”

  • AfDB, Ecobank, Diamond, UBA lift Benin with 1150billion CFA franc

    AfDB, Ecobank, Diamond, UBA lift Benin with 1150billion CFA franc

    The West African Development Bank (BOAD) has hinted of plans to raise XOF115 billion to support the 2014-2015 cotton season in Benin. Members of the banking pool include ECOBANK (Agent Bank), BOA, Banque Atlantique, BGFI, Diamond Bank, BSIC and UBA.

    The BOAD in its capacity as arranger is raising funds to support the cotton season in Benin for the third consecutive year. The agreement relating thereto was signed by and between Mr. Christian Adovelande, President of BOAD and the Managing Director of the Office national de soutien des revenus agricoles (National office for farm income support) (Borrower) and the Managers of local banks involved in the transaction.

    This agreement was signed as part of the mandate on technical and financial assistance entrusted to BOAD by the Government of Benin in February 2014 with the aim of mobilising funds for the 2014-2015 cotton seasons. BOAD succeeded in rallying around itself local banks to raise a facility of XOF115 billion, to which the local banking system contributed to the tune of 79 per cent.

    Funds mobilised will be used to cover financial needs during the 2014-2015 cotton season, including cotton purchase from producers, ginning as well as storage, evacuation and marketing of cotton fibre and by-products.

  • AfDB Board approves pact on customer complaints

    Customers of the African Development Bank (AfDB) will henceforth, have more opportunity to voice their complaints to the lender. This is because the bank’s Board of Directors of the  bank  has approved the revised version of the resolution establishing the Independent Review Mechanism (IRM) and its operating rules and procedures.

    These procedures, it said, have simplified the process of filing complaints from persons adversely affected by a project or programme financed by the bank. They also enable the IRM to provide advisory service to the bank.

    Administered by the Bank’s Compliance Review and Mediation Unit (CRMU), the IRM gets involved when two or more affected persons submit a complaint accusing the Bank of failing to comply with any of its policies and procedures. As a result, such failure threatens to affect them adversely.

    The bank explained that under the approved resolution, the IRM will undertake problem-solving, compliance review and advisory functions.

    “The CRMU is to disseminate information about the IRM to Bank staff, civil society organisations, affected communities and the general public. The Bank’s management is required to mainstream information about the IRM in Bank policies and project documents,” it said.

    According to the AfDB, the IRM’s problem-solving function will be applicable in cases where complaints or grievances can benefit from techniques that try to address underlying issues. These techniques, it added, will include independent fact-finding, mediation, conciliation, and dialogue facilitation, taking into consideration best customary practices for handling complaints.

    “The compliance review function will focus on issues of non-compliance by an institution within the bank group. The advisory function shall come into play after the President and/or the Board shall have been provided with sufficient information detailing how the bank group can benefit from IRM’s role to strengthen the social and environmental impact of Bank-funded projects,” it said.

     

  • AfDB strengthens anti-money laundering scheme

    AfDB strengthens anti-money laundering scheme

    African Development Bank (AfDB’s) Vice-President Aly Abou-Sabaa has said addressing issues of governance, fighting corruption and promoting greater transparency and accountability across both public and private sectors is key to unlocking the full African potential of the continent and ensuring the sustainability of its development.

    In a statement, the bank chief said Africa’s abundance of natural resources in forestry, agriculture, minerals, oil and gas, offer a major opportunity to close the development gap.

    He said a recent research by the bank shows that countries which implemented governance reforms were performing better than non-reforming countries. According to the African Development Effectiveness Review on Governance, published in 2012, reformers benefitted from an additional two percentage points of growth in comparison to non-reformers between the decades 1990-2000 and 2000 to 2008.

    However, while some progress has been achieved towards promoting good governance, there remains a lot of work to be done. “Progress has been uneven and insufficient,” Abou-Sabaa said.

    Speaking at the opening of the conference, Mauritanian President Mohamed Ould Abdel Aziz called for increased cooperation between African countries as well as a multidimensional approach and joint action between government departments, civil society and the private sector in order to effectively fight mismanagement and lack of transparency.

    The lender, he said, is playing a key role in that regard. Its strategy for 2013 to 2022 is articulated around economic transformation, with governance and accountability as a key priority. On top of its Governance Action Plan launched in 2014, the AfDB is currently updating its anti-money laundering and terrorist financing strategy to incorporate illicit financial flows to strengthen its support for African countries in these areas.

    The AfDB has recently set up the African Natural Resources Centre. The aim is to provide dedicated advice, technical assistance and advocacy to African countries to strengthen the institutions managing natural resources, to step up civil society capacity, and increase advocacy efforts in international fora.

    According to a study prepared jointly by the bank and Global Financial Integrity in 2013, between 2000 to 2009, the continent lost some $30.4 billion per annum, an amount mirroring what the continent receives in aid and foreign direct investment.

  • AfDB, MasterCard to broaden banking access

    African Development Bank (AfDB) and MasterCard are collaborating to expand financial inclusion on the continent. The collaboration seeks to develop solutions that drive inclusive growth in Africa by broadening access and use of digital financial services.

    MasterCard said it is bringing to the table its proven expertise to design and scale inclusive financial services solutions and infrastructure.

    The AfDB promotes sustainable economic growth and poverty reduction in Africa.AfDB and MasterCard will work with African governments and local companies to develop and deliver affordable services that meet the needs of consumers, especially the traditionally unbanked.

    The collaboration will seek to build cohesive financial systems that drive inclusion at a country level and enable service delivery to traditionally excluded populations. It will also allow the stakeholders to invest in a set of innovative financial services companies and solutions targeted at addressing barriers that hinder financial inclusion; and share knowledge across academic, policy and commercial sectors to create thought leadership on financial inclusion and economic development.

    President, AfDB, Donald Kaberuka, said: “Despite the phenomenal economic growth in Africa, this has not translated into shared prosperity and better livelihoods for the majority. Growth has to be inclusive to be socially and politically sustainable. One key component of inclusive development is financial inclusion, an area in which Africa has been lagging behind other continents. Broadening access to financial services will mobilise greater household savings, marshal capital for investment, expand the class of entrepreneurs, and enable more people to invest in themselves and their families.”

    President/Chief Executive Officer (CEO), MasterCard, Ajay Banga, said: “Less than one adult out of four in Africa has access to an account at a financial institution. While many of our industry partners have been active in this space, we believe that through our payments expertise, and the AfDB’s 50 years of experience in financing Africa’s economic transformation, we can achieve scaled impact and lasting transformation. This can only be accomplished when the public and private sectors combine resources and act together.”