The Nation Newspaper

Tag: AfDB

  • BOI to begin disbursement of AfDB $500 million fund soon

    BOI to begin disbursement of AfDB $500 million fund soon

    The Bank of Industry (BOI) at the weekend announced that it would soon commence the disbursement of the African Development Bank’s 500 million dollars fund to industrialists in Nigeria.

    The Chairman of the bank’s Shareholders Committee, Mr Muhammed Dikwa, announced the plan at the 53rd Annual General Meeting of the bank in Abuja.

    Dikwa said that the Federal Government facilitated the acquisition of the fund in order to deepen the bank’s credit delivery process and funding of the industrial sector at concessionary rates.

    “As soon as BOI complies with the disbursement process which has reached an advanced stage, the Nigeria industrialists will start benefiting from the incentive-backed facility,” he said.

    Aside from the AfDB’s funds, he said that there were other existing development fund initiatives under the bank’s management, including the five billion naira BOI/Dangote Small-Scale Businesses Development Fund.

    Other available funds are N100 billion Cotton, Textile and Garment (CTG) Fund, National Automotive Council (NAC) Fund, NFRA Rice Processing Intervention Fund, Cement Fund, Dikwa said.

    He added that Cottage Industries Fund and Small-Scale Processing Fund and National Sugar Development Fund were also available.

    Dikwa also stated that the bank recorded increment in fund disbursement by five per cent from N218.8 billion in 2011 to N229.18 billion in 2012 and that the number of beneficiaries also increased from 498 in 2011 to 534 in 2012.

    According to him, BOI’s schemes have generated indirect employment with the cumulative turnover of the obligators increasing from N503.17 billion per annum before intervention, to N659.15 billion after.

    “Direct employment by beneficiaries increased from an average of 62,097 before intervention to 76, 581 after intervention, representing an increase of 23 per cent,” he said.

    The chairman also said that total fund disbursed under the N300-billion Power and Aviation Fund (PAIF) increased by 23 per cent from N147 billion in 2011 to N181 billion in 2012.

    He claimed that the beneficiaries under the PAIF scheme had been able to increase their investments in assets and revenue base as a result of lower obligations that they were given on the loan.

    “The PAIF scheme has helped in promoting the development of long-term bank credits for infrastructure financing and institutional capacity building for financing power projects within the banking sector,” he said.

  • AfDB adopts Integrated Safeguards System

    AfDB adopts Integrated Safeguards System

    The Board of the African Development Bank (AfDB) has adopted the Integrated Safeguards System (ISS) – a cornerstone of the bank’s strategy to promote growth that is socially inclusive and environmentally sustainable.

    In a statement, the bank explained that safeguards are a powerful tool for identifying risks, reducing development costs and improving project sustainability, thus benefiting affected communities and helping to preserve the environment.

    The ISS was developed through extensive consultations. In particular, five regional workshops – in Nairobi, Lusaka, Libreville, Abuja and Rabat – provided the bank with an opportunity to listen to and address concerns raised by our stakeholders and civil society.

    It said with the ISS, the bank will be better equipped to address emerging environmental and social development challenges. “The Integrated Safeguards System not only promotes best practices in these areas but also encourages greater transparency and accountability. It upholds the voices of people who are affected by Bank-funded operations, especially the most vulnerable communities, by providing, for example, project-level grievance and redress mechanisms – a structured, systematic and managed way of allowing the voices and concerns of affected people to be heard and addressed during project planning and implementation,” it said.

    The AfDB, in accordance with its mandate views economic and social rights as an integral part of human rights, and accordingly affirms that it respects the principles and values of human rights as set out in the UN Charter and the African Charter of Human and Peoples’Rights.

    “These were among the principles that guided the development of the Integrated Safeguards System. The AfDB encourages member countries to observe international human rights norms, standards, and best practices on the basis of their commitments made under the International Human Rights Covenants and the African Charter of Human and Peoples’ Rights,” it said.

  • AfDB adopts Integrated Safeguards System

    The Board of the African Development Bank (AfDB) has adopted the Integrated Safeguards System (ISS) – a cornerstone of the bank’s strategy to promote growth that is socially inclusive and environmentally sustainable.

    In a statement, the bank explained that safeguards are a powerful tool for identifying risks, reducing development costs and improving project sustainability, thus benefiting affected communities and helping to preserve the environment.

    The ISS was developed through extensive consultations. In particular, five regional workshops – in Nairobi, Lusaka, Libreville, Abuja and Rabat – provided the bank with an opportunity to listen to and address concerns raised by our stakeholders and civil society.

    It said with the ISS, the bank will be better equipped to address emerging environmental and social development challenges. “The Integrated Safeguards System not only promotes best practices in these areas but also encourages greater transparency and accountability. It upholds the voices of people who are affected by Bank-funded operations, especially the most vulnerable communities, by providing, for example, project-level grievance and redress mechanisms – a structured, systematic and managed way of allowing the voices and concerns of affected people to be heard and addressed during project planning and implementation,” it said.

    The AfDB, in accordance with its mandate views economic and social rights as an integral part of human rights, and accordingly affirms that it respects the principles and values of human rights as set out in the UN Charter and the African Charter of Human and Peoples’Rights.

    “These were among the principles that guided the development of the Integrated Safeguards System. The AfDB encourages member countries to observe international human rights norms, standards, and best practices on the basis of their commitments made under the International Human Rights Covenants and the African Charter of Human and Peoples’ Rights,” it said.

    The plan, according to the bank, puts it in the forefront of multilateral development banks, with a clear, integrated package of policies and procedures to address the safeguards issues that arise in development. “We believe the Integrated Safeguards System will strengthen the bank’s ability to carry out its mandate and will help increase the effectiveness and development impact of our operations. But more than that, the Integrated Safeguards System will be one of the strongest tools we have for helping to promote the well-being of our true clients, Africa’s people.

     

  • Desertification: Fed Govt seeks support from AfDB, World Bank

    Desertification: Fed Govt seeks support from AfDB, World Bank

    As part of efforts to tackle desert encroachment, the Federal Government has disclosed plans to seek financial grants from the African Development Bank (AfDB), World Bank and Jaiz Bank.

    The Supervising Minister of Environment, Arc Darius Ishaku said the move became imperative in view of the need to improve the living condition of people in the northern part of the country, especially in the 11 frontline states where environmental challenge is immense.

    The concerned states include; Adamawa, Bauchi, Borno, Gombe, Jigawa, Kano, Katsina and Sokoto. Others are Kebbi, Yobe and Zamfara State.

    Ishaku, who was represented by the Ministry’s Permanent Secretary, Mr. Taiye Haruna spoke during the inauguration of the Great Green Wall Programme Coordinating Unit (PIU) yesterday in Abuja.

    Ishaku said: “No amount of money can be sufficient for this project because it is cost effective and about human life. Today, we have approached the AfDB and World Bank for implementation of the project. The Jaiz Bank is also ready to support us on the project.”

    The minister said part of the project was to provide borehole facilities in about 200 communities in the affected states.

    He added that about 15 million people will also benefit from the programme.

    The environmental programme is an initiative of the African Union (AU) to address land degredation and desert encroachment.

    It is also aimed at promoting alternative source of livelihood in the 11 countries, including Nigeria and countries in the Sahel region of the continent.

    According to Ishaku, a number of youths and women in 92 affected communities in the region have been trained to raise seedlings for the plantation of trees along the frontline states.

    Other countries involved in the programme include Burkina Faso, Djibouti, Eriteria, Ethiopia and Mali. Others are Mauritania, Niger, Senegal, Sudan and Chad.

    In his remarks, the Director, Department of Drought and Desertification Amelioration Control, Dr. Bukar Hassan said President Goodluck Jonathan had in 2013 approved the release of N10 billion for the programme.

    Hassan explained that the Presidential Council for the project implementation had only released about N3 billion while the leftover remained with the Central Bank of Nigeria (CBN).

    According to him, the first phase of the project include sinking of boreholes in the selected areas.

    He however disclosed that the AU established a regional coordinating office in Mauritania to coordinate various programmes implemented by member countries.

  • AfDB approves $20m credit to support real estate SMEs

    AfDB approves $20m credit to support real estate SMEs

    The Board of Directors of the African Development Bank (AfDB) last Wednesday, approved $20 million Trade Finance Line of Credit for the Company for Habitat and Housing in Africa/Shelter Afrique (SHAF) to boost the availability of Trade Finance (TF) instruments to small and medium enterprises (SMEs) involved in real estate and construction related activities in Africa in order to address the critical shortage of building materials while creating jobs and income in the region.

    Economic growth, exponential urbanisation and a growing middle class are hampering the provision of adequate housing in Africa. The construction industry is growing at 20 per cent per annum, but this cannot sufficiently address the rising demand for housing partly due to a wide financing gap for construction and building materials. The public and private sectors have so far been unable to deliver sufficient resources to meet this expanding working capital requirement. Where funding is available, pricing remains prohibitive.

    SHAF is the only pan-African organisation devoted to financing the development of proper housing and human settlements in Africa. Created in 1982 and headquartered in Nairobi, Kenya, this pan-African housing finance and development institution addresses acute shortage of housing by providing financial and technical resources for sustainable housing and urban development. SHAF’s current shareholding comprises 44 African countries, AfDB and Africa Reinsurance Corporation (Africa Re). It is worth noticing that AfDB played a key role in the establishment of SHAF as the vehicle for supporting sustainable housing and urban development in Africa.

    The AfDB’s four-year facility will allow SHAF to expand its Trade Finance Program, launched in June 2011, under a product diversification strategy to address the acute financing shortage facing real estate developers in Africa. SHAF will also partner with other financial institutions offering TF services to SMEs in real estate construction and building industry and those involved in trading/leasing of building materials and equipment. Through this contribution, AfDB would leverage SHAF’s market knowledge and networks across the continent and hence assist to alleviate some of the structural financing inefficiencies encumbering Africa’s real estate growth.

    This facility, boosting the availability of affordable housing in Africa through financial institutions and SMEs involvement, will thereby enhance inclusive growth and private sector development as espoused in the AfDB Long Term Strategy for 2013-2022. Trade facilitation is one of the three strategic objectives of the Bank’s Regional Integration Strategy 2009-2012 as the AfDB seeks to mainstream and institutionalize its engagement in Trade Finance development in Africa.

  • Okonjo-Iweala ‘stalls’ Rivers’ loan for water

    Okonjo-Iweala ‘stalls’ Rivers’ loan for water

    •Amaechi seeks minister’s probe

    For many Rivers State residents, hopes of having drinking water may have been dashed, it was learnt yesterday.

    The World Bank and the African Development Bank (AfDB), which had approved some loans for massive water projects, suddenly pulled the brakes on the facility.

    Governor Chibuike Rotimi Amaechi called yesterday for the probe of Finance Minister Dr Ngozi Okonjo-Iweala’s role in the stalled deal, which had been approved by the National Assembly.

    Amaechi urged the House of Representatives, which is making laws for the state as a result of the crisis in the House of Assembly, to summon Mrs Okonjo-Iweala and Minister of Water Resources Mrs Stella Ochekpe over the matter.

    The governor spoke when the House Committee on Water Resources, accompanied by Executive Directors of the Niger Delta Basin Development Authority, visited him at the Government House in Port Harcourt.

    He said the state government had fulfilled all requirements to receive and benefit from the loan scheme with the World Bank and the ADB, adding that his administration was ready to allow the Minister of Finance award the contract to any person of her choice to provide potable water for Rivers citizens.

    He said: “The people who are dying and deprived of the potable drinking water are Rivers people who don’t have water in their homes.

    “In fact, if you whisper to those agencies (World Bank and ADB) that she (Ngozi Okonjo-Iweala) has refused to sign off, a woman of that international standard, maybe she wants to join the fray of quarrel. It is like two wives quarreling over a husband. It is embarrassing, completely embarrassing for somebody who has been Managing Director of World Bank to neglect the impact water has on the citizenry.

    “The National Assembly has approved it and we have fulfilled all requirements with the World Bank and African Development Bank (ADB). We are now at the point of release of the funds for execution of the water projects for our people, and she (Ngozi Okonjo-Iweala) has refused to allow the release of the funds to us,” Amaechi said.

    The governor added: “The Minister of Finance is using her position to undermine the safety and health of the people of Rivers State. I can’t afford to give all Rivers people bottled water, but all I can assure you is to ensure the provision of potable drinking water and the Minister of Finance has refused to release it and I think, I should put that before you (House Committee on Water Resources). They want Rivers people to die. We can do an assessment of people who have been infected with water borne diseases, if she wants to do that, so she can see what she is doing to Rivers people.”

    The committee’s chairman, Aliyu Ahman Pategi, said the lawmakers were in the state for over-sight functions to verify the execution of various water projects to ensure value for money.

    He praised Amaechi on the “remarkable achievements” of his administration in the provision of infrastructure.

    “I wish to also extend my hands of fellowship to the good people of Rivers State. Despite these challenges, we have noticed quite a number of remarkable projects. We saw the monorail project, for instance, the dual carriage system, which can only be found in Abuja. I am proud of such projects in Rivers State.”

    On November 18 the Finance Minister’s spokesman Paul Nwabuikwu reacting to the accusation that Dr Okonjo-Iweala refused to sign the African Development Bank (ADB) loan for Port Harcourt water project, said: “the loan in question has been appraised but it is yet to be negotiated.”

    Before the minister can sign it, Nwabuikwu said “it has to go through the negotiation process and be considered and cleared by both the Board of the African Development Bank and the Federal Executive Council. So the issue of the minister refusing to sign it simply does not arise.”

  • IFC, AfDB plan $2.5b Naira bonds

    IFC, AfDB plan $2.5b Naira bonds

    • Fed Govt to float Diaspora, depository bonds

    The International Finance Corporation (IFC) and the African Development Bank (AfDB) have started arrangements to issue Naira-denominated bonds worth $2.5 billion, about N400 billion, in landmark bond issues that will further redefine the Nigerian domestic debt market.

    Securities and Exchange Commission (SEC) confirmed the bond issuance plans by the two multilateral financial institutions.

    The Debt Management Office (DMO) also confirmed plans by the Federal Government to raise funds from remittances of Nigerians in Diaspora and other investors through the issuance of Diaspora bond and Global Depository Notes (GDN) bond.

    Director-General, Securities and Exchange Commission (SEC), Ms Arunma Oteh, who spoke at a two-day workshop organised by the Capital Market Correspondents Association of Nigeria (CAMCAN) in Badagry, Lagos State, said both the IFC and AfDB were interested in raising medium term note (MTN) bonds.

    She said IFC has already approached the apex capital market regulator for a medium term note (MTN) programme for a naira-denominated bond worth about $1 billion, while the AfDB has also filed for similar instrument of about $1.5 billion.

    Oteh, whose address was presented by her Communication Adviser, Obi Adindu, said the new issues by the multilateral bodies will not have any lifespan of a shelf programme, indicating that they can continuously raise the funds as long as they want.

    She noted that allowing shelf registration for bonds is an important step in spurring activity from issuers, pointing out that the Commission had started with an initial lifespan of two years for shelf programmes, but recently the Board of the SEC did away with the time limitation implying that shelf programme can enjoy an unlimited lifespan.

    “The Nigerian bond market is certainly on the verge of a revolution buoyed and improved by a competitive and conducive environment that attracts issuers and investors alike. The yield curve of the FGN bonds which has been extended to 20 years, provides a good benchmark for issuers of all stripes to leverage the bond market to attract capital, both foreign and local.

    The market will continue to attract significant amounts of capital internationally, since the FGN bond attracted inclusion into the emerging markets indices of Barclays and JP Morgan,” Oteh said.

    She said since 2010, state governments have issued bonds worth over N421 billion, adding that the amount of corporate bonds raised from 2010 to date, is more than two and half times all the bonds issued by corporations from 1960 to 2009 in nominal terms.

    The DMO also yesterday confirmed the plan by the Federal Government to raise new funds from the international market through the issuance of Diaspora Bond and FGN Bonds in Global Depository Notes (GDN).

    It should be recalled that the Federal Government had in 2011 made its debut in the international capital market with $500 million 10-year 6.75 per cent Sovereign Eurobond. Nigeria returned to the international capital market in July 2013 and successfully raised $1.0 billion in two tranches.

    Director General, Debt Management Office (DMO), Dr Abraham Nwankwo, said government had sourced N544.06 billion through domestic bond issues to finance about 61 per cent of 2013’s fiscal deficit of N887 billion.

    Nwankwo, who was represented by Head, Policy, Strategy & Risk Management, Mr Joe Ugoala, noted the gradual decline in fiscal deficit financing from N1.36 trillion in 2010 to N852 trillion in 2011 and N744.44 trillion in 2012.

    He added that four banks including Guaranty Trust Bank, First Bank of Nigeria, Access Bank and Fidelity Bank have also raised $1.85 billion, about N287 billion, between January 2011 and November 2013.

  • AfDB to co-host ‘Africa Day’ in Washington

    AfDB to co-host ‘Africa Day’ in Washington

    The African Development Bank Group (AfDB) in collaboration with the World Bank Group will host the first ever ‘Africa Day’ during the Law, Justice and Development (LJD) Week 2013, this Wednesday at the World Bank Group Headquarters in Washington DC.
    Every year, the LJD Week is organised to provide a forum for legal and development practitioners, scholars, governments and civil society to discuss the critical role the law and judicial mechanisms can play in furthering development outcomes.
    The aim of “Africa Day” is to bolster knowledge on key and emerging legal issues on the African continent. Participants of Africa Day will explore how law and justice can help translate voice, social contract, and accountability into development impacts in Africa.
    For decades, a number of African countries have grappled with developing and implementing effective legal regimes so as to promote sustainable economic development. The results have been mixed. Because law is an essential tool for promoting economic growth and development, the Bank’s legal experts will be joining a panel of fellow specialists, judicial officers, and senior government officials in key relevant ministries, local and international institutions, to offer a global perspective on Africa and the key development and legal challenges it faces.
    This year’s “Africa Day” would be opened with an address by the AfDB President, Dr. Donald Kaberuka, setting the tone for an in-depth focus on critical legal issues in Africa’s development process.
    The themes for the day are in three main areas namely: Economic opportunities in extractive industries (mainly in the oil and gas sectors) and meaningful engagement with BRICS (Brazil, Russia, India, China and South Africa) and South/South cooperation; Emerging issues with a focus on the Africa 50 Fund which seeks to unlock private financing sources and to accelerate the speed of infrastructure delivery in Africa.

  • AfDB okays $152.50m for agric

    The Board of the African Development Bank (AfDB) has approved $152.12 million loan and a grant of $0.38 million to finance the Agricultural Transformation Agenda Support Program Phase 1 (ATASP-1).

    The goal of the programme is to transform agriculture into a profitable business, the bank said in a statement.

    ATASP-1 seeks to promote employment generation and share wealth creation along the commodity value chains, as well as food and nutrition security, it added.

    It said its specific objective is to increase the income of smallholder farmers and rural entrepreneurs engaged in the production, processing, storage and marketing of the selected commodity value chains.

    According to AfDB estimates, Nigeria has a huge potential in agriculture with 84 million hectares of arable land, abundant labour, untapped water resources and a market of 167 million people. However, less than 40 per cent of the arable land is cultivated and the country has become a net importer of food, spending over $10 billion per year in the importation of wheat, rice, sugar and fish.

    Reports from bank’s funded projects indicate that while farmers have made significant gains by adopting improved crop varieties and farming practices, productivity has fallen far short of the full potential along the commodity value chains.

    Thus, the project is targeting support for value addition through processing, better nutritious product and market linkages to improve farm profits and incomes critical for enhanced productivity from subsistence to commercial agriculture, the bank said.

    AfDB said the Programme is in line with the Federal Government’s Agricultural Transformation Agenda (ATA), which aims to attract private sector investment in agriculture, reduce post-harvest losses, add value to local agricultural produce, develop rural infrastructure and enhance access of farmers and other value chain actors to financial services and markets.

    The ATASP-1 fits with the two strategic pillars of the Bank’s Country Strategy Paper for Nigeria (CSP, 2013-2017) which are: (i) Supporting the Development of a Sound Policy Environment; and (ii) – Investing in Critical Infrastructure to Promote the Development of the Real Sector of the Economy.

     

     

     

     

    ATASP-1 is mainly an infrastructure restoration intervention that will rehabilitate 1,300 kms of irrigation water conveyance canals; 39,777 ha of existing crop production schemes; 1,330 kms of feeder roads; 1,007 units of hydraulic structures; 14 community markets; 35 primary schools; and 14 community health centers. It will provide 63 potable water and sanitation systems and establish seven technology demonstration centers.

     

     

     

    It will be implemented in four Staple Crops Processing Zones in seven States covering 194,426 km2 of land and 32,121,944 inhabitants (50.93 per cent males and 49.07 per cent females) who are predominantly farmers and small scale commodity processors.

    The direct beneficiaries of ATASP-1 include 45,300 farmers and rural entrepreneurs participating in commercial agricultural value chains in the four Processing Zones. These include existing or potential small, medium and large-scale entrepreneurs and business associations who provide services to rural households. A further 200,000 rural youth (40% of them are estimated to be females), who presently lack employment opportunities in the adjourning farming communities will be especially targeted in the outreach Program that will provide them with training and support to improve their lives through engagement in agriculture and related businesses.

    The Programme , to be implemented in five years is estimated at US$ 175 million (UA113.54 million). The Bank’s financing will account for 87.0% of the overall costs. The Federal Government and seven States located in the four Processing Zones will contribute UA13.85 million (12.2%), while the beneficiaries will contribute UA0.66 million (0.6%) of total Program costs. The beneficiaries include farmers and farmers’ cooperatives, commodity processors, private sector operators and registered Small and Medium Enterprises (SMEs) (input dealers and service providers).

    The ADF (African Development Fund) is the concessionary funding window of the African Development Bank Group

  • Nigeria: AfDB approves $152.50m for Agricultural Transformation Agenda

    Nigeria: AfDB approves $152.50m for Agricultural Transformation Agenda

    •Targets SMEs and farmers’ cooperatives

    The Board of Directors of the African Develop-ment Bank over the weekend approved a loan of US$ 152.12 million and an additional grant of US$ 0.38 million to finance Nigeria’s Agricultural Transformation Agenda Support Program Phase 1 (ATASP-1).

    ATASP-1 seeks to promote employment generation and shared wealth creation along the commodity value chains, as well as food and nutrition security. Its specific objective is to sustainably increase the income of smallholder farmers and rural entrepreneurs engaged in the production, processing, storage and marketing of the selected commodity value chains.

    The direct beneficiaries of ATASP-1 include 45,300 farmers and rural entrepreneurs participating in commercial agricultural value chains in the four processing zones. These include existing or potential small, medium and large-scale entrepreneurs and business associations who provide services to rural households. A further 200,000 rural youth (40% of them are estimated to be females), who currently lack employment opportunities in the adjoining farming communities will be especially targeted in the outreach programme that will provide them with training and support to improve their lives through engagement in agriculture and related businesses.

    According to AfDB estimates, Nigeria has a huge potential in agriculture with 84 million hectares of arable land, abundant labour, untapped water resources and a market of 167 million people. However, less than 40% of the arable land is cultivated and the country has become a net importer of food, spending over US$10 billion per annum on the importation of wheat, rice, sugar and fish.

    The ATASP-1 fits with the two strategic pillars of the Bank’s Country Strategy Paper for Nigeria (CSP, 2013-2017) which are: supporting the development of a sound policy environment as well as investing in critical infrastructure to promote the development of the real sector of the economy.

    The project, to be implemented in five years, is estimated at US$ 175 million (UA113.54 million). The Bank’s financing will account for 87.0% of the overall costs. The federal government and seven states located in the four processing zones will contribute UA13.85 million (12.2%), while the beneficiaries will contribute UA0.66 million (0.6%) of total programme costs.