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Tag: African Development Bank

  • 650million Africans live without electricity, says AfDB

    To support Nigeria’s fertilizer production with $100m

    The African Development Bank, (AfDB) says that no fewer than 650 million Africans currently live without electricity.

    Dr Victor Oladokun,  AfDB Director, Communication and Media Relations, disclosed this on Wednesday while welcoming African Journalists on a Media Tour to Saemaul Undong Model village project, in Yamoussoukro, Cote d’Ivoire.

    “About 650 million people in Africa are currently without light and some communities till today never see electricity.

    “We have a commitment to ensure universal electricity commitment and few other commitments,’’ he said

    He said that Africa by 2050 would have a population of close to two billion people, a population of China and India put together.

    He added that about 90 per cent of the people living in rural areas in Africa live in darkness.

    “A state like Lagos in Nigeria has about 25 million populations, five million commutes out of Lagos.

    “Lagos, like Addis are likely to double its population to 40 to 45 million in the next 20 years, are we prepared? he asked

    He said that the continent needed to work hard to be able to manage the population with the basic needs.

    He noted that the bank had five key areas of focus to ensure effective development of the region.

    The five key areas, he said, include: Light up Africa, Feeding Africa, Integrating Africa, Industrializing Africa and Improve Quality of Life in Africa.

    He said that the bank had continued to expand its operations to take business closer to consumers in the field.

    According to him, the bank has established 40 offices in different countries in the region as against the 14 it used to have.

    “As a bank, we need to be closer to the consumers and the private sector,’’ he said

    He added that the bank had refocused its effort to ensure that rural areas were developed over urban centers to bring the desired result in the region

    The African Development Bank (AfDB) on Wednesday said it would support fertilizer production in Nigeria with 100 million dollars.

    Mr Alhassane Haidara, Industrial Development Manager of the bank, disclosed this while briefing newsmen on the key industrial initiatives and projects of the bank in Abidjan.

    He said: “We are going to finance a huge fertilizer plant for the production of Uriah, Ammonia, among others and we are partnering with many companies to get it done.

    “The plant will be one of the largest fertilizer plants not only in Africa but in the world.’’

    He said that the production would be leveraging on the huge gas reserve in Nigeria to power the plant and transform the raw materials.

    He added that the aim was to ensure that the agricultural sector in Nigeria as well as Africa was massively developed.

    He noted that there were lots of interest in Nigeria to develop the agriculture and other sectors of the economy.

    According to him, the bank will this year embark on projects in the petrol chemical sector, which also linked with the fertilizer production.

    He said that bank had in 2014 supported the Dangote Group with 100 million dollars for the expansion of the group’s activities on cement and petrol chemical across Africa.

    He said the group was able to access the bank loan based on its clean balance sheet.

    “We supported the Dangote Group with 100 million dollars as well to boost its activities in cement production across Africa,’’ he said.

    Haidara said that Industrializing Africa was among the high five priorities of the bank, adding that the bank’s commitment had increased from 40 million dollars in 2000 to 2000 million dollars as at 2017.

    He said that Africa:s industrialization still lagged behind compared to other continents in the world.

    NAN

  • NBA launches $300m AfDB fund for Niger Basin

    The Niger Basin Authority (NBA) has launched a 300-million-dollar fund with the African Development Bank (AfDB) for technical and environmental studies to protect the basin from the consequences of climate change.

    The Executive Secretary of NBA, Dr Abderahim Hamid, made this known on Friday at the opening of the 36th Ordinary Session of the Council of Ministers of NBA in Abuja.

    The project, which is the Programme for the Integrated Development and Adaptation to Climate Change in the Niger Basin (PIDACC), would promote the adaptation of mechanisms to manage the depletion of the basin.

    Hamid said that it was important for NBA member countries to make additional efforts through contributions and strengthening of human capacities towards improving the people’s livelihoods.

    “I would like to request for member countries’ political and financial support and their ownership of NBA actions, so as to create favourable conditions for the people, especially in efforts to engage the youth of the basin.”

    He pledged that the authority would continue to improve governance without forgetting the current difficulties in trans-boundary basin management.

    The Minister of Water Resources, Mr Suleiman Adamu, said that the degradation of the environment in the Niger River Basin and its impact on the natural resources were the major concerns of countries, adding that the solutions entailed strengthened cooperation.

    Read Also: ‘NBA committed to promoting electoral integrity’

    He said that the combined phenomena of climate change and population growth as well as irrational and abusive exploitation of natural resources had been having adverse consequences on the social-economic activities in the basin.

    Adamu said that it was saddening to note that the Niger Basin Area, with a population of more than 130 million, was facing myriad challenges despite its richness and its diversity.

    He underscored the need for the member countries to promote the development of the region by showing more commitment via the payment of their contributions.

    Adamu urged them to pursue programmes such as the implementation of major integration projects and the Silting Control Programme in the basin, among others.

    He also noted that programmes such as Reversing Land and Water Degradation Trends in the Niger Basin and the Water Resource Ecosystems Programme had been of great importance to the survival and development of the basin.

    The minister restated the commitment of the Federal Government to fast-tracking the development of the basin, so as to achieve the overall goal of improving the livelihoods of the residents of the area.

    News men reports that the Niger Basin Authority has nine-member countries – Benin Republic, Burkina Faso, Cameroon, Cote d’Ivoire, Guinea, Mali, Niger, Nigeria and Chad.

    The population of the basin is approximately 130 million inhabitants and 70 per cent of the population is living in rural areas.

    Due to its ecological and socio-economic importance, the Niger Basin is crucial to the development of the sub-region.

    NAN

  • AfDB approves $10m loan to boost fund’s portfolio in Africa

    AfDB approves $10m loan to boost fund’s portfolio in Africa

    The Board of African Development Bank (AfDB) has approved a 10-million dollar loan for African Local Currency Bond Fund (ALCBF) to boost its portfolio in Africa.

    Mrs Olivia Ndong-Obiang, the Principal Communications Officer in AfDB, disclosed this in a statement in Abuja on Tuesday.

    She said that the ALCBF was also approved by the Bank to promote the development of domestic capital markets in Africa and had a tenor of seven years with a two-year grace period.

    The ALCBF loan, according to her, would improve access for non-sovereign issuers to long-term funding in local currency, reduce currency and maturity mismatches and increase local financial intermediation.

    “The fund will catalyse investments in critical sectors such as renewable energy, housing, health, education, the financial sector and agriculture in line with the bank’s High five priorities.

    Read Also: Nigeria ranks lowest in industrial GDP,  says AfDB

    The bank’s High five priorities are Light up and Power Africa, Feed Africa, Industrialise Africa and Improve the quality of life for the people of Africa.

    “This will ultimately help grow private sector financing through capital markets,” she said.

    The News men reports that the ALCBF was incorporated in December 2012 by German Development Bank on behalf of the German Federal Ministry of Economic Cooperation and Development.

    “The fund has invested in Botswana, Ghana, Kenya, Zambia, Lesotho, Senegal, Côte d’Ivoire, Nigeria, Uganda, Malawi, Gabon and Togo.

    “As of December 31, 2017, the fund had made 27 investments across 19 companies and in 10 currencies,” Ndong-Obiang said.

    NAN

  • AfDB to bridge $170b infrastructure gap in Africa

    AfDB to bridge $170b infrastructure gap in Africa

    African Development Bank (AfDB) is set to mobilise funds for infrastructure development, to bridge an estimated funding gap of $130-$170 billion a year. This will formally take off at a planned Africa investment forum in Johannesburg, South Africa according to a statement by the apex African bank.

    The statement stated that it is a prelude to the AFDB president’s, Dr. Akinwumi Adesina compelling case for accelerating Africa’s industrialisation in order to create jobs, reduce poverty and promote inclusive economic growth.

    Citing data from the Bank’s 2018 African Economic Outlook launched in Abidjan, Côte d’Ivoire, during the week, Adesina said infrastructure projects were among the most profitable investments any society can make as they “significantly contribute to, propel, and sustain a country’s economic growth. Infrastructure, when well managed, provides the financial resources to do everything else.”

    Noting that economic diversification is key to resolving many of the continent’s difficulties, he urged African governments to encourage a shift toward labour-intensive industries, especially in rural areas where 70 percent of the continent’s population resides.

    He said: “Agriculture must be at the forefront of Africa’s industrialization this is in addition to that integrated power and adequate transport infrastructure would facilitate economic integration, support agricultural value chain development and economies of scale which drive industrialisation.”

    He also stated that economic diversification and industrialisation with tangible investment in human capital will enable the continent’s rapidly growing youth population to successfully transition to productive technology-based sectors.

    Adesina also highlighted the relatively unknown win-win situation that Africa’s industrialization can generate within the developed world, citing data from the report, which notes that “increasing the share of manufacturing in GDP in Africa could boost investment in the G20 by about US $485 billion and household consumption by about US $1.4 trillion.”

    The Bank President highlighted various innovative ways in which African countries can generate capital for infrastructure development and what the Bank is doing through its ambitious High 5 development agenda to address the issues raised in the report.

    He reiterated the plan by the Bank to organise the investment forum to mobilise funds for infrastructure development, to bridge an estimated funding gap of $130-$170 billion a year, up from previous estimates of US $100 billion per year.

    New infrastructure financing gap estimates and innovative ways through which African countries can raise funds for infrastructure development are among the highlights of the 2018 edition of the report, which was launched at the Bank’s headquarters for the first time in the publication’s 15-year history.

    The African Economic Outlook was first published in 2003 and launched mostly in various African capitals outside the Bank’s headquarters in May each year.

    In his remarks, Célestin Monga, the Bank’s Chief Economist and Vice-President for Economic Governance and Knowledge Management, said the African Economic Outlook has become the flagship report for the African Development Bank, providing data and reference material on Africa’s development that are of interest to researchers, investors, civil society organizations, development partners and the media.

    This year’s edition focuses on macroeconomic development and structural changes in Africa, and outlines economic prospects for 2018. The report emphasizes the need to develop Africa’s infrastructure, and recommends new strategies and innovative financing instruments for countries to consider, depending on levels of development and specific circumstances.

    Abebe Shimeles, Acting Director, Macroeconomic Policy, Forecasting and Research, said the Bank will publish Regional Economic Outlooks for Africa’s five sub-regions. The self-contained, independent reports, to be released at the Bank’s Annual Meetings in May 2018, will focus on priority areas of concern for each sub-region and provide analysis of the economic and social landscape, among other key issues.

    Participants at the launch session, moderated by the Bank’s Director of Communications and External Relations, Victor Oladokun, included members of the diplomatic community in Côte d’Ivoire, representatives of international organisations and multilateral development banks, civil society and the media.

     

  • National carrier will be private sector driven – Sirika

    National carrier will be private sector driven – Sirika

    The Minister of State for Aviation, Sen. Hadi Sirika, says the proposed national carrier will be private sector driven.

    He said that would avoid the mistakes that led to the failure of the defunct Nigerian Airways.

    Sirika stated this on the sideline of the ongoing International Civil Aviation Organisation World Aviation Forum on Wednesday in Abuja.

    The theme of the forum is “Financing the Development of Aviation Infrastructure.”

    He said that stakeholders had agreed on a Public Private Partnership ( PPP ) arrangement for the new national carrier.

    The minister explained the Federal Government was following Infrastructure Concession Regulatory Commission ( ICRC ) guidelines to ensure that due processes in the arrangement.

    According to him, government has appointed the Transaction Advisers to work out modalities for the carrier.

    He said that government intended to go into alliances or joint ventures with other aircraft manufacturers to increase the reach and number of routes of the national carrier.

    Sirika added that the planned improvement of airport and air navigation infrastructure would support the expected growth from activities of the new carrier.

    “The question of national carrier, we all have agreement that this national carrier can only survive and succeed if it is private sector led and driven.

    “Public Private Partnerships (PPPs) in Nigeria are guided by act of parliament which is the ICRC Act 2007 that spelt out how to go about doing all these things.

    “We will be following them diligently. But unfortunately, it is cumbersome but we are following it so that we don’t run afoul of the law.

    “African Development Bank and other companies are discussing with us on this matter.

    “We are yet to meet with other stakeholders but we expect to meet them during this conference and after then, we will go and do our road shows.

    “The key thing here is having something that will stand the test of time so that we don’t start and falter.

    “It has happened to Nigeria before. The Air Nigeria was founded and at some point, it died because of something that was faulty.

    “We have learnt our lessons and we are not going to repeat it again,” he said.

    Sirika admitted that one of the major challenges of air transportation in Africa was high taxes.

    He said that the issue of high taxes would be discussed as a critical factor to encourage investors.

    “The lower the tax, the more flights in and the more flights in, the more passengers, more jobs, more revenue and that is within our master plan.’’

    NAN

  • Osinbajo pledges FG commitment to Lagos-Abidjan highway realization

    Osinbajo pledges FG commitment to Lagos-Abidjan highway realization

    Vice President Yemi Osinbajo has pledged the commitment of the Federal Government to the realization of the Abidjan-Lagos corridor highway development and its completion on schedule.

    Osinbajo made the pledge in his keynote address at the 9th Steering Committee Meeting for the Abidjan-Lagos Corridor Highway development on Friday in Abuja.

    He said that the Federal Government was excited over the opportunities provided by the project to small businesses, adding that when completed, it would constitute the primary driver of economies of the sub-region.

    According to him, the development of the corridor will hopefully set a stage for the formalization of the vast informal economies that exist in and around countries of the region.

    He said that the steering committee meeting was a testimony to the strong relationship existing among ECOWAS countries.

    “We may live in different countries, speak different languages, spend different currencies but we share a common history, goals and aspirations.

    “The development of the Abidjan-Lagos corridor is one of the flagship projects of the ECOWAS and we believe it will promote regional integration, trade, tourism and other forms of economic activities.

    “There is no doubt that connecting West Africa by means of an efficient road network is one of the easiest and most direct ways of boosting local and international economies.”

    The vice president said the development of the corridor would also go a long way in resolving hindrances to cross border trading in West Africa.

    Osinbajo commended the commitment of development partners including the African Development Bank, Japan International Corporation Agency (JICA) and other financial institutions to the realization of the project.

    He urged members of the committee to also deliberate on ways to promote unity, peace, good neighbourliness, security and rule of law within ECOWAS and the African Union.

    Earlier, the Minister of Power, Works and Housing, Mr Babatunde Fashola, commended the supportive role of the ECOWAS Commission and the African Development Bank toward the delivering the project.

    Fashola, who is also the Chairman of the Steering Committee, said the project would promote cross border trade, social and cultural integration as well as enhance prosperity in the sub-region.

    He said the committee was moving toward the completion of the preparatory work, adding that Nigeria had ratified the treaty and signed the financing agreement.

    The News Agency of Nigeria (NAN) reports that Nigeria, Ghana, Togo, Benin and Cote D’Ivoire are the countries involved in the Abidjan-Lagos corridor highway development.

  • TCN secures donors’ $1.55b for grid expansion

    TCN secures donors’ $1.55b for grid expansion

    The Transmission Company of Nigeria (TCN) has secured $1.55billion from multilateral donors to revive some projects and expand the grid.

    Its Interim Managing Director, Usman Gur Mohammed made this known to reporters during the 18th Monthly Power Sector and Stakeholder meeting in Kumboso, Kano State.

    He noted that the intervention came from the World Bank, African Development Bank, Islamic Development Bank, European Union and Japan International Corporation Agency (JAICA).

    He said that “the strategy is that we have approached the multilateral donors and we have been able to raise some significant money. We have also resuscitated some project that has not been doing well, like the Abuja transmission project which is supposed to provide three sub- stations and provide another avenue for supply through Abuja from Lafia.

    “We have also resuscitated the JAICA project that has been on the drawing board for  a long some time now, those two projects, plus the projects is about 1.55 billion dollars   which is coming from the world bank , the African Development Bank the Islamic  Development Bank, JAICA itself, and the European union is also giving us a grant.”

    He recalled that when he assumed office he discovered that TCN capacity to wheel power is actually higher than the capacity that the distribution companies (DisCos).

    According to him, there was need for grid expansion and cash paucity, which made it expedient that the TCN had to seek the support of the Federal Ministry of Finance and Ministry of Power to raise money from donor agencies.

    He revealed that “we have a stranded  load  generation  of  about 2,000 megawatts, this is not healthy  for the development of the sector, as time goes on if  we can’t pick those  generation it means that we are going to kill investment in the generation section.

    “On growing the load and avoid load rejection, we are working with Discos to see how to improve their capacity and we have appointed, Interface focal officers to help the DiSCos pick more load.”

    He noted that the company last week advertised transformer capacity for Kano, Kaduna, Lagos and Shiroro region.

    He said that TCN is now working towards realizing 20,000 megawatts of transmission capacity in the next few years.

    The Interim Managing Director pointed out that right of way has become a crucial challenge in the power sector which has resulted in a study by the West African Power Pool on the line from the Birnin- kebbi boarder of Nigeria from.

    He pointed out that since the payment of compensation for right of ways Nigeria has become a crucial problem, the TCN has started collaborating with State governments.

    Continuing, he said that : “We are collaborating with states in every areas that we  are  putting  a significant transmission capacity.  We are working to expand  the lines from Shiroro  to Kaduna, and from Kaduna to Kano, and we are putting a code line that will carry 2,400MW capacity, we have never had  that kind of line in Nigeria.

    “But we need to collaborate with sates and we have stated with Kaduna, the governor of Kaduna  is the one that is even paying the compensation  for some of the places where we are putting  sub –stations in Kaduna.”

    The Governor of Kano State, according to him, is also supporting TCN on the right  of ways  between Kano and Kaduna border.

    The company, he added, is also working with the governors of Abia,  Lagos,  Imo and Ogun states to enhance transmission capacity .

  • Kebbi: 78,000 rice farmers benefit from CBN’s Anchor Borrowers Programme – RIFAN

    Kebbi: 78,000 rice farmers benefit from CBN’s Anchor Borrowers Programme – RIFAN

    At least 78,000 rice farmers in Kebbi State have benefitted from the CBN’s Anchor Borrowers Programme (ABP), an official of Rice Farmers Association of Nigeria (RIFAN) in the state has said.

    Chairman of RIFAN in the state, Alhaji Mohamed Sahabi, told newsmen in Birnin-Kebbi on Sunday that rice farmers were given loans and other inputs such as fertiliser, pesticides, seeds, and water pumps for irrigation.

    Sahabi lauded the programme, saying it had helped farmers earn profit and increase rice production in the state.

    He explained that 5,000 farmers attached to Labana Rice Mills, an indigenous rice milling company in the state benefitted from the programme.

    The chairman said that another batch of 26,000 rice farmers in the state had also been short-listed to be given loans to assist them in rice production.

    Sahabi said that some rice farmers in the state have also commenced repayment of the ABP loans they collected.

    “The current support for farmers in the country is the Anchor Borrowers Programme which came into function in 2015.

    “This programme has helped rice farmers in Kebbi to earn a better living.’’

    The chairman said rice farmers were faced with the challenge of accessing their farm lands especially during the rainy season.

    Sahabi appealed to the state government to construct feeder roads that would guarantee access to farms and effective transportation of goods to the markets.

    “We want access roads to our farms so that we will be able to transport our produce to the markets.

    “The African Development Bank is doing something about it but we want the government to also come in.’’

    The ABP was launched in 2015 to create economic linkages between over 600,000 smallholder farmers and reputable large-scale processors with a view to increasing agricultural output and significantly improving capacity utilisation of integrated mills.

  • How Dangote made my happiest day as minister – Adesina

    How Dangote made my happiest day as minister – Adesina

    President of the African Development Bank (AfDB), Dr Akinwunmi Adesina has recalled his happiest day while serving as Minister of Agriculture in Nigeria.

    Speaking at the Mo Ibrahim Forum in Morocco over the weekend, Adesina said it was the day billionaire businessman, Aliko Dangote decided to invest $300 million into producing and processing rice in the country.

    “I remember when I was minister of Agriculture in Nigeria. Aliko Dangote was there, and he was our biggest importer at the time, and he and I used to have all the time to dialogue,” Adesina who served in former President Goodluck Jonathan cabinet said.

    “One day, I was in my office, about 10 O’clock, Aliko walks in, Ngozi was minister of finance. Aliko bangs on my door and said ‘minister I came to see you’, and I said ‘what are we going to disagree on this time?’

    “He said no, I have actually looked at the policies, and the policies you put in place for import substitution are very right policies. So, I have changed my business model from being an importer to being a local producer.

    “I said what exactly are you going to do. He said I will put in $300 million into producing and processing rice in Nigeria. I said yippee! I went home, I told my wife, my best day as minister.

    “He comes back three months after that, he says I have changed my mind, I said ‘what in the world happened?’ He said no, I have changed my mind from $300 million to a billion dollars.

    “If they continue that policy, he would probably be the single largest producer of rice in the world, in about four years. The reason why I was so excited about that is that agriculture is cool, agriculture is a business…agriculture pays,” Adesina said.

    Adesina said Africa must focus on agriculture to drive growth and create jobs on the continent.

    A tripartite agreement put together by the Dangote Rice limited to create jobs for 16,000 outgrower rice farmers in Sokoto was recently signed with the Sokoto State government and rice growers in the country after which he launched the rice outgrowers scheme in Sokoto.

    Dangote , the Chairman of Dangote Rice Limited, said he was moved to go into rice cultivation because of the genuine interest of the Federal government to revive agriculture as the mainstay of the economy, and reduce importation of foods that could be produced locally.

    He lamented that Nigeria consumes 6.5 Mtn of rice which costs the nation over 2 billion dollars annually pointing out that it is heartening that the government now has policy direction that encourages private sector’s active participation in agriculture.

    He disclosed then that “In the next three years we want to produce one million tons of quality rice and make it available and affordable to the people. We hope to do 150, 000 ha and when we are done, Nigeria will not have anything to do with importation of rice.

    “Dangote Rice outgrowers scheme is committed to creating significant number of jobs, increasing the incomes of smallholders farmers and ensuring food security in the country by providing high quality seeds, fertilizers and agro-chemicals as well as technical assistance on best agricultural practice to farmers.

    “This Scheme will help to diversify the economy, alleviate poverty and reduce the nation’s import bill. The scheme has been designed as a one stop solution for the rice value chain,” Dangote stated.

  • AFDB disburses $500m loan  to Egypt

    The African Development Bank has disbursed a 500 million dollars loan to Egypt, the bank’s representative in Cairo said.

     

    Leila Mokaddem said the disbursement, the second of three expected loan tranches from the bank to Egypt, came into effect on Thursday and the funds would be received in early April.

     

    Egypt has been negotiating billions of dollars in aid from various lenders to help revive its economy, battered by political and economic upheaval since a 2011 uprising.