The Nation Newspaper

Tag: African Development Bank (AfDB)

  • ‘Edo prudent with debts, proceeds utilised to drive devt’

    The Edo State Government has flayed the People’s Democratic Party (PDP) in the state for making unfounded claims of the state’s debt status, noting that the party was being mischievous with facts.

    Special Adviser to the Governor on Media and Communication Strategy, Mr. Crusoe Osagie, said the state government has been prudent with external borrowings incurred since the All Progressives Congress (APC) came on board and has utilised all the credits judiciously to fund developmental projects.

    Osagie said a significant portion of the debts the state is currently paying off was incurred by the PDP government in the state at the height of its dubious foray into borrowing, for which it got so notorious in squandering, that several multilateral organisations blacklisted the state from their financing facilities.

    According to him, “As at today, Edo state is still paying a N30 billion debt taken from the African Development Bank (AfDB) for the development of water infrastructure. There is also a Union Bank loan taken and put in the balance sheet of Edo Line. These are besides several other such borrowings, which officials of the PDP government took privately and converted to state liability. The State Government is still paying all these debts.”

    Osagie said that it was disheartening that an entity that exhibited the most primitive understanding of public finance would then come out to make unfounded claims about the prudent management of the state’s finances by a globally renowned investment banker.

    He said, “The PDP is still raising evil guts to talk about these debts, when in fact, they are the ones who threw the state into the debts. The PDP were so irresponsible in debts and loans that the World Bank placed a ban on Edo State government. These loans were of single digit interest and the moratorium ran into 10 years.”

    He noted that it was not until the APC came into government and reformed the state’s finance, that they were able to access these financing facilities from multilateral organisations.

    Osagie added, “It was during the reign of the PDP that the United Nations Development Programme (UNDP) pulled out of the state because of the irresponsibility of the government at the time. The PDP lacks the credibility and moral standing to make any comment.

    “They are made up of people who lack the capacity to frugally allocate resources for positive outcomes. Debts at low interest rates are actually good for development and shows the state as viable. It is even better when the debts are used to fund developmental projects.”

    Read Also: Okomu expansion project to create 40,000 jobs in Edo

  • AfDB to support Nigeria’s power sector recovery program

    The African Development Bank ( AfDB ) says it will support Nigeria’s Power Sector Recovery Programme ( PSRP ) in three areas.

    It listed the areas as operational and technical intervention, governance issues and policy based support.

    The bank disclosed this in Abuja on Friday in a statement signed by Mrs Fatimah Alkali, Senior Communications Officer in Nigeria Country Office.

    AfDB said it had undertaken a mission to hold further discussions on Nigeria’s PSRP with several stakeholders.

    The bank said that the mission was led by Mr Amadou Hott, the Bank’s Vice President for Power, Energy, Climate Change and Green Growth.

    It said meetings had been held with relevant ministries, departments and agencies to harmonise plans and areas of intervention.

    The ministries and agencies include the Ministries of Finance, Power, the Nigerian Electricity Regulatory Commission, the Transmission Company of Nigeria, World Bank and solar power developers.

    The Bank said the programme was designed to promote energy access to rural communities through the expansion of the transmission grid, development of innovative financing products and provision of technical assistance to improve revenue generation by the distribution companies.

    It said the goal of the mission was to identify opportunities for collaboration in the programme.

    “The bank’s energy strategy identifies energy as crucial not only for the attainment of health and education outcomes, but for industrialisation, reducing the cost of doing business and for unlocking economic potential and creating jobs.

    “In line with its high 5 development priorities, the Bank is committed to supporting Nigeria in the effective and efficient implementation of the country’s Power Sector Recovery Program,” the bank said.

    The statement quoted the Bank’s President, Dr Akinwumi Adesina, as saying that “Africa is simply tired of being in the dark.

    “It is time to take decisive action and turn around this narrative: to light up and power Africa and accelerate the pace of economic transformation, unlock the potential of businesses and drive much needed industrialisation to create jobs” he said.

    NAN

  • AU to set up Humanitarian agency by June 2018 – Official

    AU to set up Humanitarian agency by June 2018 – Official

    The African Union ( AU ) is to set up an African Humanitarian Agency to handle emergency situations in the continent.

    Mr Olabisi Dare, Head Humanitarian Affairs and Displaced Persons at the AU, told our reporter in Nairobi that the agency would coordinate all relief work on the continent.

    He said already feasibility studies on the setting up of the agency have been concluded while a technical committee would meet in March next year to assess the studies.

    Dare said the Heads of State were expected to adopt the report and eventually approve the setting up of the agency at their meeting in June 2018.

    He said the agency would set up response teams in different regions of the continent to ensure quick response to emergency situations.

    It would also use existing structures in member countries to train personnel and provide logistics for addressing emergency situations in the continent.

    On funding of the agency, Dare said a donors’ conference would hold early next year while an Emergency Assistance Fund would be set to ensure constant flow of funds to the agency.

    Dare said the Fund would be managed by the African Development Bank ( AfDB ) and would be replenished every year.

    He said the plan was to solicit funding from the private sector instead of traditional donors which are largely governments and development partners.

    Dare said he was confident that the private sector would donate to the project since adequate provisions would be made to ensure transparency in the management of the money realised.

    “We have high network of rich individuals, foundations and companies in Africa who will be ready to donate.

    “Much depends on your homework and how you intend to govern the funds realised. We will assure donors that there will be transparency.’’ Dare said.

    Dare also said that the Heads of State are expected to ratify a Common African Position on Humanitarian Effectiveness at the AU Summit schedule in January 2018.

    He said the document was expected to guide member states to effectively respond to humanitarian situations in their respective countries.

    He said the document provided necessary guidelines in dealing with humanitarian situations and had addressed such issues as primary responsibilities of states, addressing root causes and providing durable solutions to humanitarian crises, role of host communities as well as protection and assistance of affected populations, among others.

    Dare said the document also provided for a 10-year implementation plan which was developed through consensus, as well as monitoring and evaluation of humanitarian responses.

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  • AfDB to invest $12bn in power sector in Africa in 4 years – Adesina

    AfDB to invest $12bn in power sector in Africa in 4 years – Adesina

    Dr Akinwumi Adesina, President, African Development Bank ( AfDB ), says the bank would invest 12 billion dollars
    in the power sector in Africa in four years with the goal of leveraging on the aviation sector.

    He said this while speaking in Abuja.

    Adesina said the aviation sector was very important to the continent but that it could not operate in the dark.

    He said the sector was very important to Africa because it accounted for about 73 billion dollars in Gross Domestic Product (GDP) and created about 7 million jobs across the continent.

    “Without electricity, you really cannot operate any effective and efficient airline industry and so this is one of the top priorities of the bank.

    “We are investing in the power sector 12 billion dollars in the next four years with the goal of leveraging between 45 to 50 million dollars in this sector because I firmly believe that Africa cannot develop in the dark.

    “So we must fast track that and when we have electricity, everything functions, even for the aviation industry and the tourism industry is actually quite linked to the avaiation industry as well.”

    He said the bank had invested over 20 billion dollars on infrastructure in Africa in the last 10 years, specifically one
    billion dollars in the aviation sector.

    Adesina said the bank’s investment in the sector covered building new airports in Ghana, Senegal, Casablanca and building of new infrastructure in Morocco.

    As for Nigeria, he said the government was developing a new aviation sector investment plan, adding that the government was interested in a number of areas.

    “First is we are looking at how to support more investment in airport infrastructure; they are also looking at how to create aircraft maintenance, repair and also overhaul facility.

    “But one of the biggest problems in Africa is we do not have any aircraft leasing facilities and that is one of the things that the government is looking at.

    We are looking at upgrading some of the navigational infrastructure.

    So as a bank, we are very strong supporters of the government.

    “Once the government comes up with its plan and what that really means in terms of the need, then we can play the role that they are asking us to play but we do not make decisions for the government.”

    AfDB is a multilateral development finance institution aimed at fighting poverty and improving the living conditions on the African continent.

    It does this by promoting the investment of public and private capital in projects and programmes that are likely to contribute to the economic and social development of the region.

    NAN

  • AfDB portfolio in Nigeria over $6bn – Adesina

    AfDB portfolio in Nigeria over $6bn – Adesina

    Dr Akinwumi Adesina, President of African Development Bank ( AfDB ), says the bank’s total active portfolio in Nigeria is over six billion dollars.

    Adesina said this in an interview on Wednesday in Abuja.

    “The bank supports Nigeria very strongly.

    “When Nigeria was going through a tough economic time, we led the world actually in rallying support around for a budget support which we did at 600 million dollars to help build more resilient economy as it shows a better diversified economy.

    “If you look at our total active portfolio in the country now, it is over 6 billion dollars.

    “Take for example, we invested over 300 million dollars from the private sector part of the bank in Dangote industries – Petro-chemical industries and the fertiliser manufacturing companies.

    “We also invested over 100 million dollars in the Indorama fertiliser companies as well; they are looking at us to do more, additional 100 million dollars for them.’’

    In addition, he said the Bank had been supporting the recovery effort of the Federal Government in the North East.

    He, however, commended President Muhammadu Buhari for the investment made so far in rebuilding the North East.

    “I give the President kudos for all that has been achieved. We have to rebuild the infrastructure – road, schools etc

    “We have Basic Livelihood Support Programme for over 250 million dollars that we have done for the North East of Nigeria.

    “On agriculture, the Board has just approved a programme called Enable Youth.

    “The programme is to create a generation of young commercial farmers in Nigeria; that is about 430 million dollars we are investing in that.’’

    Adesina, who won the 2017 World Food Laureate Award in Agriculture in the U.S., further said that the Bank had been doing a lot of line credit in Nigeria for commercial banks to lend to small and medium size enterprises.

    He said that the Bank had been talking with the Minister of Power about how to help in the power sector in Nigeria.

    “We have invested a lot in the transmission companies of Nigeria.

    “We are also helping them to have an additional 200 million dollars to post bonds, to be able to raise money to modernise the transmission network in Nigeria.

    “I remember during COP 22 in Morocco, I spoke to the Minister of Power, Fasola and I told him to visit Noor Ouarzazate, the largest Concentrated Solar Power ( CSP ) plant in the World, that was financed by the AfDB in Morroco.

    “He said he was very pleased with the idea and we are supporting his ministry now with a big project, we are going to do in Jigawa a project on Solar.

    “We have a number of states that have approached us and we are looking at various opportunities of supporting from Ogun, we are looking into that; we are looking at Kaduna, Kano states and others.

    “Nigeria is a big market for us and we are going forward in terms of our planning investment over the next three years.

    “It will be over 4.1 billion dollars that we are planning for Nigeria that will cover agriculture, infrastructure, power sector, basic livelihood in terms of water and sanitation,’’ he said.

    Adesina, however, expressed optimism over the implementation of the bank projects in Nigeria, adding that there was a very stringent monitoring system to ensure implementation of set targets.

    “We are quite pleased with a lot of progress I have seen on several of the projects that we have in Nigeria.

    “Obviously, a lot of improvement is needed in terms of the time it takes to actually sign some of the required agreements; it takes a lot of time.

    “We are going to do better because the more we can do that, the more we can actually show better impact in Nigeria.

    “Having talked to the authority to help us improve the time, it takes between when we approve something and when it is signed, it becomes effective in Nigeria.”

    NAN

  • Adesina receives award, commits $250,000 to African youths in agriculture

    Adesina receives award, commits $250,000 to African youths in agriculture

    Nigeria’s image received a boost on Thursday before the international community as former Agriculture Minister Akinwumi Adesina formally received the 2017 World Food Prize ( WFP ) Laureate award in the U. S.

    Adesina was confered with the laureate in Des Moines, U. S. during which he committed the 250,000 dollars cash prize to set up a fund for financing African youths in agriculture.

    Adesina had been announced as winner of the global feat by the WFP for his dogged determination and practical commitment to boosting agriculture and food supply chain both as Minister of Agriculture and President of AfDB.

    Adesina, who is also the President of African Development Bank ( AfDB ), commended his staff for the shared passion to feed Africa.

    The former minister expressed gratitude to ex-President Olusegun Obasanjo for nominating him as minister.

    Adesina also thanked former President GoodLuck Jonathan for giving him the opportunity of his life to serve his country, Nigeria, as a minister.

    He also thanked President Muhammadu Buhari for his strong support to achieve the feat.

    “There wouldn’t be any rest for me until Africa feeds itself and for that we need the youth.

    “And so even though I don’t have the cash in my hand, I hereby commit my 250,000 dollars as a cash prize for  the WFP award to set up a fund fully dedicated to providing financing for the youth of Africa in agriculture to feed Africa.

    “A day is coming very soon when the barns of Africa will be filled and all her children will be well fed, when millions of farmers will be able to send their kids to school.

    “Then you will hear a new song across Africa; thank God our lives are better for us,’’Adesina said.

    The Governor of Iowa, Kim Reynolds, who officially declared Adesina as the 2017 laureate winner of the WFP, said he was a man who grew out of poverty to create wealth.

    Reynolds said that the laureate commitment and dedication in agriculture had impacted on lives of many, not only in Africa but around the world.

    Former President of Ghana, John Mahama, attended the ceremony and other dignitaries from Nigeria and African countries.

    NAN

  • AfDB to invest $24bn in agriculture in 10 years – Adesina

    AfDB to invest $24bn in agriculture in 10 years – Adesina

    The African Development Bank ( AfDB ) says the bank will invest 24 billion dollars in agriculture over the next 10 years to help unlock its potential and assure food security in Africa.

    Akinwumi Adesina said this at a side event of the ongoing Borlaug Dialogue International Symposium in Des Moines, Iowa, USA on Wednesday.

    Adesina said there was need for supportive public policies and significant investments in infrastructure, especially for roads, irrigation, storage, warehousing and agro-processing.

    He said that AfDB would provide support to strengthen African agricultural research and development systems to play significant roles in the transformation processes.

    The former Agriculture Minister said the support was to ensure that valuable research no longer simplied gathered dust on the shelves of academia.

    The president said that AfDB’s Feed Africa strategy had launched the Transformation of the African Savannah Initiatives (TASI) to help unlock the potential of the Savannas of Africa.

    He said that the initiative would start by bringing approximately two million hectares of savannah in eight African countries – Ghana, Guinea, Democratic Republic of Congo, Central African Republic, Uganda, Kenya, Zambia and Mozambique.

    These countries come under the cultivation of maize, soybean and livestock production in optimum conditions.

    “Success in this endeavor requires that we wake up the savannas of Africa.

    “When we do so, African agriculture will indeed rise up from its slumber.

    “Let’s wake up Africa’s savannas and turn them into the new wealth zones of Africa and unleash Africa as a global powerhouse in food. Together let arise and feed Africa.

    “Valuable research must meet the needs of farmers and agri-businesses in ways that exponentially increase productivity and improve the quality of lives of our rural poor.

    “Africa must learn from the experiences that have worked elsewhere, while tailoring the interventions to the specific realities of Africa.

    “We must ensure that small, medium scale and large-scale commercial farmers co-exist in a way that allows opportunities for all.

    “Partnerships in research and development will be crucial,” Adesina said.

    According to him, the bank has engaged to work with the strongest possible organisations with proven track records in tropical agriculture from South America.

    He said that this included the Brazilian Research Corporation ( EMBRAPA ), the Agricultural Corporation of Brazil ( CAMPO ), and others with long experience in conservation agriculture.

    Adesina that the research institutions would work closely with the universities and the national agricultural research systems across the savannas of Africa to enhance agriculture.

    NAN

  • ‘AfDB grants $800m for agric. transformation’

    ‘AfDB grants $800m for agric. transformation’

    Dr Akinwumi Adesina, the President of African Development Bank ( AfDB ), says the bank and World Bank have set aside 800 million dollars for the provision of agriculture technologies to farmers in Africa.

    He made this known at the ongoing 2017 African Green Revolution Forum (AGRF) on Wednesday in Abidjan, made available to News Agency of Nigeria (NAN) in Abuja.

    According to him, the financial support will come under a flagship programme for scaling up of agriculture known as “Technologies for African Agricultural Transformation”.

    The AfDB boss noted that the technologies to feed Africa exist already, but need to be scaled up for widespread adoption because it required specific incentives.

    He added that “agriculture is instrumental in Africa’s poverty and it must be instrumental in its wealth but only through agricultural regeneration.

    “No region of the world has ever industrialised without the agriculture sector being first transformed,’’ he said.

    Adesina said the future of Africa depended on agriculture and required 40 billion dollars yearly over the next 10 years.

    He, however, added that “it is a lot of money, but it is available, even within Africa, if the projects are good enough.

    “We must bring an end to the costly and damaging anomaly of the net deficit in food. No more should Africa produce what it does not or cannot consume, and no more should it consume what it does not but could easily produce.”

    He disclosed that AfDB was promoting national risk sharing facilities in every country to leverage agricultural finance, similar to the Nigeria Incentive-Based Risk Sharing for Agricultural Lending (NIRSAL).

    NIRSA is a facility designed to reduce the risk of lending to Nigerian agriculture value chains.

    “The impact in Nigeria was massive because 15 million farmers were reached in four years, 2.5 million of them women, while food production expanded by over 21 million tonnes.

    “Today, several African countries are adopting the approach, as well as others such as Afghanistan.”

    Adesina predicted that the next few years would see agriculture emerge fully from poverty and subsistence to become the next big booming business sector of Africa.

    He said “Africans need to become producers and creators, and not just consumers, in the fast-moving enterprising business of food.

    “I am confident that we will soon see Africa’s first tranche of billionaires coming from the farming and food sectors.”

  • Growth: AfDB warns African countries to be vigilant 

    Growth: AfDB warns African countries to be vigilant 

    African countries have been warned that the current economic gains they are recording can be fragile.

    President of the African Development Bank (AfDB) group Dr Akinwunmi Adesina gave the warning Tuesday in Abuja at a one day symposium on Nigeria Technical Cooperation Fund (NTCF): A Reference point for Africa’s sustainable development and regional integration.

    Adesina warned that “near term, continued uncertainties in the global economy and turbulence in emerging market economies can have negative implications for the continent.”

    He noted that “while resilience is much greater than in the past, risks from a weak and uncertain global environment suggest the need to be vigilant.”

    Adesina argued that “dependence on natural resource endowments can be a mixed blessing. The historic experience in many resource rich countries of boom-bust cycles, debt crises, and poor governance have led to the persistence of poverty and lack of inclusiveness.”

    For Africa, he said “the goal is clear–to eradicate poverty and create more inclusive development. To do so, it needs to promote growth that creates jobs and provides economic opportunities for all.”

    African countries he pointed out, “need to invest more in infrastructure and basic services, such as education and health care, and increase access to energy and water. And they need to close the gender gap, strengthen and expand social safety nets to reduce risk and vulnerabilities.”

    According to the AfDB president, “over the last decade and a half, the African continent made significant strides in economic growth and in reducing poverty. They have benefited enormously from buoyant commodity prices linked to the rise of China and other emerging markets.”

    However, “greater integration into global trade and financial networks—along with the implementation of coherent medium-term macroeconomic policy frameworks, structural reforms and attention to the strengthening of governance and economic and social institutions—has allowed Africa to grow faster than in previous decades” he said.

    Interestingly, Adesina noted that “strong growth is beginning to allow living standards to rise, institutions to develop, and financial sectors to deepen.”

    To date the US$25 million NCTF has grown to US$28.9 million. Of this amount, US$ 24.7 million has been committed to projects and activities in a range of sectors.

    As at March31, 2017, US$20.9 million has been disbursed. Funds available for commitment stand at US4.2 million.

    So far, 93 projects and activities across Africa have been approved under the window of the NTCF.

    All 54 African countries have benefited directly or indirectly from the NTCF. The fund has implemented projects in specific countries as well as those that benefited particular regions.

    Sectoral distribution of the NTCF stands at: Science and Technology, 12.7%; Health 1.59%; Business and Finance 11.12%; Agriculture 4.76%; Education 15.88%; Public Administration 9.52%; Regional Integration 14.29%; Governance 15.87%; Gender Issues 7.94% and Climate Change and Green Development 6.35%.

  • Nigeria, AfDB complete first cycle of $25mn fund

    Nigeria, AfDB complete first cycle of $25mn fund

    The African Development Bank (AfDB) and Nigeria’s Directorate of Technical Cooperation in Africa (DTCA) of the Ministry of Foreign Affairs have completed the first life cycle of the Nigeria Technical Co-operation Fund (NTCF).

    The NTCF is a twenty-five million United States Dollar (US$25,000,000) Fund, co-managed by the DTCA and AfDB.

    It was established as a grant facility for development projects/programmes with a view to contributing to the socio-economic and technological development of Regional Member Countries (RMCs) and to promote regional cooperation and economic integration in Africa.

    A statement from the AfDB said “the Fund which became operational on 5th April 2004, is the largest single bilateral co-operation fund by an African Country at the AfDB and a remarkable symbol of Nigeria’s commitment to promoting African brotherhood, solidarity and sustainable development of Africa in the spirit of South-South cooperation.”

    Thus far, a total number of one hundred and twenty three (123) project proposals have been considered under the NTCF as at June 2014 with sixty nine (69) approved, and twenty-four (24) fully completed. Forty-five (45) are at various stages of implementation and therefore classified as ongoing.

    The statement noted that “all fifty four (54) African Countries have benefited directly or indirectly from projects/programmes implemented under the NTCF.”

    The DTCA and AfDB have sought and obtained a 5-year administrative extension of the Fund.

    The managing partners of the NTCF will hold a celebratory event to mark the laudable strides of the Federal Government of Nigeria in establishing the Fund, the effective role of the co-managers in administering the Fund for Africa’s development. The event will provide an opportunity to chart a new course for further effective and efficient performance of the Fund, especially in view of the administrative extension.