The Nation Newspaper

Tag: AfDB

  • AfDB approves 10m Euro investment in private equity fund

    The Board of Directors of the African Development Bank has approved a 10 million Euro equity investment in the African compartment of the Moringa Private Equity Fund.

    Moringa will invest in scalable, replicable agro forestry projects in sub-Saharan Africa and Latin America. The fund will invest in projects that combine plantation forestry (producing biomass, fuel wood or timber) with agricultural elements (producing staple food crops for local markets and/or niche export crops) to capture most of the value chain. It   will also be associated with a grant-based Technical Assistance Facility.

    Sponsored by La Compagnie Benjamin de Rothschild (CBR) and ONF International (ONFI), the international subsidiary of the French Office National des Forêts, the Fund will benefit from CBR back-office and investment platform, while ONFI contributes agro forestry technical expertise and regional presence in the Fund’s targeted geographies.

    The Moringa investment strategy is well aligned with the AfDB’s 10-Year Strategy (2013 to 2022), focusing on inclusive green growth as the pathway to sustainable development and creating broad-based prosperity, as well as the Bank’s Climate Change Action Plan, which aims to make investments to reduce the continent’s vulnerability to climate change.

    This strategic feat should allow the bank to provide a significant boost to Moringa’s operations via its high public profile, sector expertise and network across the African continent.

    Agro forestry generates a strong and diversified platform for the development of forestry sector businesses, whilst also paying attention to the need for agricultural production. Smallholders benefit from an income diversification supported by an investor with a long time horizon.

    The Fund will drive better land management, higher and more sustainable income for local populations, and a positive environmental impact on carbon storage, soil/water management and biodiversity. By investing in sustainable agro forestry solutions, the Fund will assist Governments in meeting their adaptation and mitigation targets.

    The AfDBwill provide an equity investment of up to 10 million Euro to an African-based vehicle, which has been established for investments located in sub-Saharan Africa.

    The bank’s investment brings total commitments to Moringa to almost 70 million Euro and, as the first investor from the African continent in the fund, provides further validation of the fund’s African strategy and prospects as the fund enters the final fundraising phase.

  • AfDB inaugurates $35m capacity building project

    The African Development Bank (AfDB) has launched a public financial and macroeconomic management capacity-building project worth $35 million. It was approved by the bank’s board last December.

    The inauguration came at a workshop in Khartoum, Sudan, presided over by the State Minister of Finance and National Economy, Magdi Yasin, and attended by government officials from the Ministry of Finance and National Economy, Central Bank of Sudan, Taxation Chamber, Khartoum Stock Exchange, and Customs Authorities.

    The AfDB was represented by Suwareh Darbo, Officer-in-Charge (OIC) of the Sudan Field Office.

    In a statement, the bank said the workshop was also attended by staff, including Camille Karamaga, the Project Task Manager; Tadesse Melaku, Financial Analyst; and Asaye Adal Fasil, Procurement.

    The project’s overarching objective is to build and enhance transparency, accountability and efficiency in the use of public resources, macroeconomic policy and debt management through strengthening of institutions and capacity building.

    The minister hailed the bank’s continuous support to Sudan, promising to provide the utmost support to the project team to effectively implement this important project.

    The minister said the project was essential for better management of public resources in the context of the government’s Poverty Reduction Strategy Paper. For his side, the OIC of the Sudan Field Office, underscored the fact that the realisation of the project bears is a concrete testimony to both the bank’s and the government’s commitment to financial governance, which is critical for the country to realise its development aspirations.

    The OIC also emphasised the project’s alignment with the pillars of the Interim Poverty Reduction Strategy Paper (I-PRSP) and the National Development Plan (2012 to 2016), both of which strengthen governance and institutional capacity in the public sector.

  • AfDB, Japan sign $307m pact on job creation

    The African Development Bank (AfDB) and the Japan International Cooperation Agency (JICA) have signed  a bilateral agreement for a facility of 30.69 billion Japanese yen ($307 million). This is the fifth loan to the AfDB under the Enhanced Private Sector Assistance (EPSA) for Africa Initiative, which supports entrepreneurship, job creation and economic growth in Africa.

    The loan agreement was signed by Head of the Asian External Representation Office (ASRO) of the AfDB, Masayuki Tamagawa, and the Vice-President of JICA, Hiroshi Kato.

    This Tokyo signing ceremony is a follow-up to the signing of the exchange of notes between the AfDB and the government of Japan signed by AfDB President Donald Kaberuka and Ambassador of Japan to Côte d’Ivoire, Susumu Inoue.

    During the signing ceremony, the Vice-President of JICA, Kato, said: “I am very happy to sign on the Loan Agreement today which we believe will help further the progress of private sector development and also the employment situation among youth in Africa. Since the Asian Office of the AfDB has been in the frontline to promote private sector development of African, JICA is grateful to continuously cooperate with the AfDB to promote this effort in Japan.”

    In his remarks, Head of Asian External Representation Office (ASRO) of the Bank, Masayuki Tamagawa said: “It  is my great pleasure to sign on this Loan Agreement in Tokyo, Japan, on behalf of the Bank, which is our first occasion since the opening of ASRO in 2012. JICA is the bank’s natural partner and we are and will be working very closely together to promote and enhance private sector development to improve the economic situation in Africa.”

    This fifth Private Sector Assistance Loan is the first agreement after the pledge by the government of Japan to double the support to EPSA from $1 billion to $2 billion, which was announced by the Prime Minister Abe in January this year when he visited Africa.

    This $307-million Loan Agreement is part of the larger $2 billion EPSA initiative to help AfDB’s private sector (non-sovereign) operations.

    This includes public-private partnerships for the provision of essential eco nomic infrastructure and direct investment by the AfDB in key African financial institutions and economic enterprises.

  • AfDB’s $256m loan for Lekki Free Zone, others

    AfDB’s $256m loan for Lekki Free Zone, others

    The Board  of the African Development Bank Group (AfDB) has approved a combined $256 million for the financing of investments in Nigeria and Ethiopia as well as a multinational projects preparation facility.

    The approvals comprise a  $150-million senior loan to Lekki Port (LFTZ) Enterprise for the construction of a Greenfield seaport in the Lagos Free Trade Zone, 60 kilometres east of Lagos.

    The project follows a 45-year concession granted to  LFTZ Enterprise, the Special Purpose Vehicle, by the Nigerian Ports Authority (NPA) under a build, own, operate and transfer scheme.

    It involves construction of port infrastructure such as breakwaters, quays, approach channels, dredging of the basin as well as captive utilities such as water and power.

    On completion, the port would handle 2.5 million 20-foot equivalent units (TEUs), 16.7 million tonnes (MT) of liquid cargo and 4.5 MT of dry bulk. Construction is expected to start in January next year with the container terminal operations expected to start in December 2018.

    The project, estimated at $1.675 billion, will be financed through a 54/46 debt to equity ratio.

    It is aligned with the bank’s Nigeria Country Strategy Paper 2012-2016, which stresses infrastructure development in the non-oil and transport sector as well as the country’s Vision 20:2020, which emphasises modernising infrastructure.

    The project is also in line with the AfDB’s Regional Integration Strategy Paper (RISP) for West Africa which emphasises linking regional markets through regional transport infrastructure.

  • AfDB releases North Africa’s report

    AfDB releases North Africa’s report

    The African Development Bank (AfDB) North Africa 2014 report which focuses on inclusive growth, providing an overview of the lender’s activities in the region has been released.

    This year’s report focuses on the pressing need for inclusive growth and development, as demonstrated by the uprisings experienced in several countries in the region in early 2011.

    The report includes a brand new indicator, which measures the extent to which growth may be considered inclusive. The five countries in the North Africa region include Morocco, Algeria, Tunisia, Libya and Egypt posted below-average performance figures.

    Tunisia was the highest-ranked country in the region, followed by Egypt, Libya, Morocco and Algeria respectively.

    A statement from the bank said despite improvements in the North African economies, both in real terms and in comparison with other developing nations, the report reveals deepening inequalities between social groups as it concerns the labour market and regional variations.

    Furthermore, these very same inequalities are recognised as the main obstacles to inclusive growth. Genuinely inclusive growth would help to deliver fairer distribution of wealth between age groups, social classes and regions in these countries.

    The report also reveals the existence of a two-tier labour market in the region, with a marked rift between the formal and informal sectors. Less than 50 per cent of the working-age population is employed in the formal labour market, and the unemployment rate across the region stands at around 10 per cent – considerably higher than the global average.

    Furthermore, people in the 15 to 24 age bracket are three times more likely to be unemployed than adults aged 25 and over.

    The unemployment rate is especially high among young, educated people and women. Indeed, women are twice as likely to be unemployed as men.

  • AfDB approves $60m in response to Ebola outbreak

    AfDB approves $60m in response to Ebola outbreak

    African Development Bank (AfDB) has approved additional $60 million grant investment for immediate implementation to help strengthen West Africa’s public health systems in response to the Ebola Virus Disease (EVD) crisis.

    In a statement in Abuja yesterday, the bank said the grant would support West Africa’s EVD outbreak response plan from August to December.

    “This grant is part of a $210-million package, including $15 million in loans and grants as well as four emergency assistance grants of $1 million to each of the four countries affected by Ebola.

    “The $60 million grant is awarded to the World Health Organisation (WHO) sub-regional Ebola Outbreak Coordinating Centre located in Conakry, Guinea, given their extensive experience with global epidemics.

    “The project will support ongoing efforts to reduce morbidity, mortality from Ebola and help break the chain of transmission of the disease by strengthening sub-regional public health systems,” it said.

    The statement said the bank’s assistance would support overall strengthening of public health systems in West Africa to facilitate early detection and response to epidemics and pandemic prone diseases.

    It said the proposed project critically was aimed at responding to the specific needs identified by the expert community in response to the Category 3 world emergency epidemic.

    The statement said the bank’s project would be coordinated by the WHO sub-regional Ebola Outbreak Coordinating Centre in Conakry along with the West African Health Organisation (WAHO).

    It said that a joint memorandum for intervention practices and management procedures would be signed between the bank, WHO and WAHO regional organisation representing the governments of West Africa.

    The countries are Guinea, Côte d’Ivoire, Sierra Leone, Liberia, Guinea Bissau, Ghana, Niger, Nigeria, Togo, Benin, Mali, Senegal and The Gambia.

    It said that the Ebola crisis could have been prevented if investments were directed toward building stronger health systems and described the crisis as the most complicated health crisis in West Africa.

    The AfDB President, Dr Donald Kaberuka, said it was not simply dealing with a health problem but the breakdown of entire health systems in the affected countries.

    It said AfDB’s Chief Medical Officer, Dr  Nelly Iteba, said the bank had taken adequate measures to protect its staff.

    Iteba said EVD could be managed with strict adherence to standard infection control practices, basic medical equipment and necessary medication.

    “For instance, availability of sterilisation equipment, intravenous fluids, blood transfusions, antibiotics, ventilators, powerful vasoactive medications can improve patient care and save lives.

    “Also, skilled health professionals equipped with personal protective equipment and availability of modern diagnostic equipment can make all the difference in containing the spread of EVD,” it said.

  • AfDB inaugurates $35m scheme

    The African Development Bank (AfDB) has launched a public financial and macroeconomic management capacity-building project worth $35 million.

    It was approved by the bank’s board last December.

    The inauguration came at a workshop in Khartoum, Sudan, and presided over by the State Minister of Finance and National Economy, Magdi Yasin, and attended by high government officials from the Ministry of Finance and National Economy, Central Bank of Sudan, Taxation Chamber, Khartoum Stock Exchange, and Customs Authorities.

    The AfDB was represented by Suwareh Darbo, Officer-in-Charge (OIC) of the Sudan Field Office, who presented a speech at the opening  on behalf of the Resident Representative.

    The bank said in a statement that the workshop was also attended by staff from the bank, including Camille Karamaga, the Project Task Manager; Tadesse Melaku, Financial Analyst; and Asaye Adal Fasil, Procurement.

    The project’s overarching objective is to build and enhance transparency, accountability and efficiency in the use of public resources, macroeconomic policy and debt management through institutional strengthening and capacity building.

    The state minister commended the bank’s continuous support to Sudan, promising to provide the utmost support to the project team to effectively implement this important project.

    The state Minister further underscored that the project was essential for better management of public resources in the context of the government’s Poverty Reduction Strategy Paper. For his side, the OIC of the Sudan Field Office, underscored the fact that the realisation of the project bears is a concrete testimony to both the bank’s and the government’s commitment to financial governance, which is critical for the country to realise its development aspirations.

    The OIC also emphasised the project’s alignment with the pillars of the Interim Poverty Reduction Strategy Paper (I-PRSP) and the National Development Plan (2012 to 2016), both of which strengthen governance and institutional capacity in the public sector.

  • AfDB moves to boost agribusiness in Africa

    Increasing agribusiness in Africa was the focus of a panel discussion moderated by African Development Bank (AfDB) Group President Donald Kaberuka at “Believe in Africa Day,” at a  forum to herald the United States/African Leader’s Summit this week in Washington, DC.

    “How do we work together to increase agribusiness investments now that the policies are in place? That is the question,” Kaberuka said. As part of the panel on realising a new vision for Africa’s development, African agricultural leaders from Cameroon, Madagascar and Guinea, along with industry executives, fielded pointed questions from Kaberuka on food security, the use of subsidies to fuel growth and the need for regional integration when it comes to agricultural expansion on the continent.

    Kaberuka questioned Guinea’s Minister of Agriculture, Jacqueline Sultan, about why her country is not a more successful model for agribusiness growth given its rich resources including land and people. She replied that “the willingness is there,” but land and water coordination has proved to be a stumbling block. “Other than the water,” Sultan said, “infrastructure and roads are expensive to build” and that, along with “a lack of financing, prevents agricultural growth.”

    When asked about how harmful or helpful subsidies to farmers in Africa have been over the years, International Finance Corporation Vice-President for Sub-Saharan Africa, Latin America and the Caribbean, Jean Philippe Prosper, told Kaberuka that there have been some missteps in administering them.

     

  • AfDB seeks improved banking access for women

    AfDB seeks improved banking access for women

    African Development Bank (AfDB) has called for improved funding for women-owned businesses. The third African Women’s Economic Empowerment Summit, held in Lusaka, Zambia last week called on African governments to make more land available to women.

    Co-organised by New Faces, New Voices and the AfDB, this biennial event brings together key stakeholders in the financial sector throughout the continent, as well as influential global leaders, to look at how to put women at the centre of the African finance and economic development agenda to realise Africa’s potential.

    The theme of this year’s meeting was “African Women, Realising Africa’s Economic Potential”.

    Speaking during a session on land and property rights for women, Graça Machel, founder of New Faces, New Voices, said land is a key natural resource in unlocking the entrepreneurship among women.

    “We need to demand the right for women to own land so that they can contribute effectively to the development process of their countries’ economies,” she said.

    Machel regretted the practice of underestimating the role that women play in the economic development of their countries, arguing that without the active participation of women, African nations cannot fully develop economically.

    “Women have the potential to change their own economic status, as well as that of the communities and countries in which they live. Yet, more often than not, women’s economic contributions go un-recognised, their work undervalued and their promise unnourished,” she said.

    Earlier, Rose Mwebaza, Special Advisor to the African Union Chairperson on Women’s Economic Empowerment and Political Participation, called on African Governments to increase their budgetary allocation to programmes that will help women to own land.

    African Governments should come up with an effective strategy that will help support women economically as well as ensure that they own land, Mwebaza said. “Women must acquire land so that they can create wealth and help their families to come out of abject poverty.”

    Contributing on the same topic, Professor of Law at Jomo Kenyatta University, Jane Kamangu said giving land to women will inspire them to fully participate in the running of their countries’ economies.

  • AfDB invests $1.9b in infrastructure

    AfDB invests $1.9b in infrastructure

    The African Development Bank (AfDB) has invested $1.9 billion (N311.6 billion) in infrastructure development in Nigeria in the last 42 years, according to the Country Director, Dr Ousmane Dore.

    Speaking with the News Agency of Nigeria (NAN) on Thursday in Abuja, Dore said that the bank had committed a cumulative of $6.4 billion (about N1.05 trillion) to different sectors of the country’s economy as at December 2013.

    According to him, the current public sector portfolio of the bank stands at 921.2 million dollars (about N151 billion) of which $701.5 million (about N115 billion) is allocated to infrastructure projects.

    Dore said that the bank had been supporting infrastructure development since it commenced lending operations in Nigeria in 1972.

    The country director told NAN that over 70 per cent of the bank’s operations were directed at infrastructure development.

    He said that some of the bank’s early support to infrastructure development included the reconstruction of Enugu and Calabar Airports, launched in 1972 and 1974 respectively.

    Dore said the bank’s operations had expanded to include several other projects in water and sanitation; road and energy.