african-development-bank

AFDB President Adesina

Abidjan, Côte d’Ivoire, 13 September 2019 – The African Development Bank, rated Aaa/AAA/AAA (Moody’s/S&P/Fitch, all stable), has launched and priced a US$ 2 billion 3-year Global Benchmark bond due 16 September 2022, its first US$ benchmark of the year.

Launched on September 11, the bond issue is the Bank’s second Global Benchmark of 2019, following a EUR 1 billion 10-year priced in March 2019. With this transaction, the Bank has now raised US$ 4.4 billion in 2019 to date and executed 61% of its borrowing program for the year. The transaction received strong support from investors globally, with order books reaching US$ 2.8 billion and 53 investors participating. The high quality of the order book is illustrated by the strong participation of Central Banks and Official Institutions, taking 64% of the allocations.

The African Development Bank decided to take advantage of favorable investor sentiment post summer break to access the 3-year tenor, in spite of volatile market conditions ahead of the Fed Meeting the following week. The mandate was announced on Tuesday, September 10, at 12:00 London time with Initial Pricing Thoughts of Mid-Swaps + 13 basis points (bps) area.

The transaction met strong interest from the outset, with Indications of Interest in excess of US$ 1.8 billion (excluding Joint-Lead Managers interest) when order books officially opened at 08:00 London time the following morning, with initial price guidance of Mid-Swaps + 13bps area.

Momentum continued throughout the European morning, with orders in excess of US$ 2.5 billion around 11:20 London time. At this time, final pricing was set at Mid-Swaps + 13bps. Following the close of the order book in the US, the size of the transaction was set at US$ 2 billion by 14:20 London time.

The transaction was priced at 16:24 London time with a re-offer yield of 1.679%, equivalent to a spread of 8.75bps vs UST 1.5% 15 September 2022, the issuer’s tightest print vs US Treasuries to date.

 “We are delighted with this successful dollar Global Benchmark, and particularly pleased by both the very high quality of the order book and the solid participation of African Central Banks. The African Development Bank achieved its tightest ever spread to US Treasuries, and we are grateful to our investors across the world for this outcome, and the financing it will bring to the African continent”. Hassatou Diop N’Sele, Group Treasurer, African Development Bank

Investor distribution statistics:

Transaction details:

Contact: fundingdesk@afdb.org

*AFDB

Electricity, transport, and health identified as key priorities

Akinwumi Adesina, President of the African Development Bank Group

Yokohama, Japan, 30 August 2019 – Japan and the African Development Bank on Friday announced a joint target of $3.5 billion under the Enhanced Private Sector Assistance for Africa initiative (EPSA4), during the 7^th Tokyo International Conference on African Development (TICAD 7).

Both Japan and the Bank have set a target of $1.75 billion each, from 2020-2022, to enhance the fourth phase of EPSA to spur private-sector-led sustainable and inclusive growth in Africa.

“Building on the successful achievements so far, Japan and the Bank have decided to upgrade EPSA in both quality and quantity to meet financial needs for infrastructure development as well as for the private sector development in Africa,” Japan’s State Minister of Finance,” Mr. Keisuke Suzuki said at the EPSA4 launch ceremony held in Yokohama and attended by government officials and a high-level delegation from the Bank as well as representations of the business community.

“We will cooperate by integrating our funds, expertise, and experiences, and I wish the win-win relationship between Japan and Africa will deepen further,” Mr. Suzuki noted.

Electricity, transportation, and health will be key priorities under EPSA4. Projects and programs for the 3 key priorities will be formulated and implemented in line with the G20 Principles for Quality Infrastructure Investment and G20 Shared Understanding on the Importance of UHC Financing in Developing Countries. African countries will also be provided with support to improve and create conducive business environments to attract private investments.

“Today marks another day to celebrate the strong and impactful partnership between Japan and the African Development Bank. The African Development Bank and the Japan International Cooperation Agency (JICA) are long-term partners for promoting the development of Africa. EPSA helps to deliver much needed support to the private sector,” Dr. Akinwumi Adesina, President of the African Development, said during his address.

During EPSA1 (2005-2011), Japan set the target of providing $ 1 billion in loans and $ 2 billion under the second phase (2012-2016). The ongoing EPSA3 (2017-2019), Japan and the African Development Bank are cooperating closely to provide the targeted joint amount of $ 3 billion.

As of today, the Bank and JICA under ACFA have co-financed 25 projects to improve key transportation and electricity transmission networks. These include the Construction of Three Intersections in Abidjan in Côte d’Ivoire and Power Sector Reform Program in Angola.

Under EPSA 4, JICA and the African Development Bank will provide co-financing of $3.5 billion. This is a significant increase over EPSA-3, which was executed at $3 billion – a 17% increase.

“Increase is what we need to meet the needs of Africa. Increase is what we need to raise the level of our ambitions for Africa. Increase is what we need to build upon the solid foundations of co-financing over the last 13 years, and deliver even greater and more impactful development results in the years ahead.  Now, let us arise with renewed vigor. Let us deliver even greater impacts for African countries through EPSA 4,” Dr. Adesina concluded.

About EPSA

 EPSA has three components:

• The Accelerated Co-Financing Facility for Africa (ACFA): a sovereign co-financing arrangement between the African Development Bank and JICA, under which JICA lends on concessional terms to borrowers under this scheme.
• The Non-Sovereign Loan (NSL): a line of credit from JICA to the Bank on concessional terms to help fund private sector operations. Collaboration between JICA’s Private Sector Investment Finance (PSIF) scheme and AfDB’s Non-Sovereign Loan will be promoted.
• The Fund for African Private Sector Assistance (FAPA): a Multi-Donor Trust Fund for technical assistance and capacity building for the Bank’s public and private sector clients. The Government of Japan is the major contributor to the Fund, managed by the Bank.

“There is a business case for governments to invest in grey matter – Jennifer Blanke

Jennifer Blanke, Vice-President for Agriculture, Human, and Social Development

Yokohama, Japan 30 August 2019 – By investing in Africa’s food markets, governments can win the fight against stunting and improve nutrition across the continent. And with support from institutions like the African Development Bank, the results would be a win-win situation for all.

“What a huge potential the food markets represent. “Feed Africa,” which is one of the Bank’s High 5 priorities, has nutrition at its core,” Bank Vice President for Agriculture, Human, and Social Development, Jennifer Blanke said Thursday at a panel discussion on day two of the 7^th Tokyo International Conference on African Development.

The session, organised by the Global Panel on Agriculture & Food Systems for Nutrition (GPAN) & the African Leaders for Nutrition (ALN), was titled Ending Malnutrition in Africa: Towards Nutrition for Growth 2020 & Beyond.

A senior management team from the Bank led by its President Akinwumi Adesina is attending this year’s TICAD in the Japanese city of Yokohama, under the theme: Advancing Africa’s development through technology, innovation and people. The conference is focused on Africa’s economic transformation and the business environment through partnerships and increased cooperation with Japan.

Despite holding 60 percent of the world’s arable land, African countries import nearly $50 billion net of food annually. Yet the population bulge and a rising middle class represent a massive opportunity in terms of agribusiness and the consumer market.

“There is a business case for governments to invest in grey matter, or brainpower, and this requires much more nutritious diets” Blanke said.

With most people in Africa getting their food from local markets, business opportunities for healthy foods abound everywhere in the food system and potential investors were urged to engage and explore.

Small and medium enterprises (SMEs) in particular play a predominant role in the food supply chains in Africa, but their growth has been slow. “The biggest constraint to their scaling up is lack of access to finance,” Lawrence Haddad, Executive Director of the Global Alliance for Improved Nutrition (GAIN) said.

Other side events such as a session on Investing in Human Capital Development and one on Rural Transformation and Sustainable Agriculture in the Digital Age, jointly organized by the Bank and the World Food Programme, spoke to policy makers about the importance of the private sector and an enabling environment in fighting malnutrition.

Women and Girls need to be at the table

On Wednesday, a discussion on empowering women and girls highlighted how that directly benefits Africa’s development agenda.

Technology, access to finance, education and digital technology can help women leapfrog over many hurdles.

“It is essential that women are empowered to become a vehicle for transforming society,”

Ms Toshiko Abe, of Japan’s ministry of finance said.

Blanke said women in agriculture were an overlooked stakeholder group. In many parts of Africa most farmers are women.

The Bank’s Affirmative Finance Action for Women in Africa initiative known as AFAWA, seeks to support women entrepreneurs in Africa. Through AFAWA the African Development Bank aims to raise at least $300 million for a guarantee facility that will spur lending of ten times at much (around $3 billion) to African women entrepreneurs.

“We can leverage more for women,” Blanke said

*AFDB

African Development Bank Vice-president Celestin Monga

Yokohama, Japan, 27 August 2019 – Kaizen, the business philosophy which means continuous improvement in Japanese, was at the heart of discussions at a seminar held on Tuesday, and co-organised by JICA and NEPAD on the sidelines of the 7^th Tokyo International Conference on African Development, TICAD7.

The seminar, under the theme: “Africa’s Socio-economic Transformation through innovation,” discussed the role of Kaizen, in improving quality and productivity as well as human resource development on the continent.

Panelists included Assane Mayaki, CEO of AUDA-NEPAD; Bezabih Gebereyes, Commissioner of the Civil Service Commission of the Federal Democratic Republic of Ethiopia; and JICA Research Institute Director General Toshiyuki Nakamura, of the Industrial Policy and Public Policy Department.

“The Kaizen approach is more than a technique…it is an approach to economic development, and it’s been yielding tremendous results,” African Development Bank’s Chief Economist and Vice President, Economic Governance and Knowledge Management, Dr. Celestin Monga, said.

Monga underlined the need for incremental innovation in each African country, but also called for increased support to small and medium sized enterprises as a starting point to scaled up industrialization.

Africa needs to create production lines because “ even with low-skilled labour we can do tremendous things,” he said.

JICA and NEPAD have been promoting incremental innovation through the Africa Kaizen Initiative, launched in 2017.

“Kaizen is about mindset changes. It will be a formidable tool to enhance productivity of SMES…We have rolled out projects and training programs in 10 countries,” Mayaki said in his welcome remarks.

Acknowledging two Africa Kaizen awardees, also in attendance, Makayi told the packed room “They are the exact product of how Kaizen should be implemented.”

Fikreselassie Ambaw, General Manager of MAA Garment Factory in Ethiopia and Ruben Zebedayo Lyanga, head of Atoz Textile Mills (Tanzania), who won the Africa Kaizen Award in 2019, made presentations on how the business approach radically transformed their enterprises and boosted productivity, employee commitment and creativity.

Sharing Kaizen’s contribution and achievements in Ethiopia, Gebreyes explained how Kaizen and the subsequently transformed mindset have led to increased efficiency in spare parts production lines. “In the sugar cane sector, the Kaizen model has led to a 43% hike in productivity,” he noted.

Answering questions on the capabilities needed for entrepreneurs and firms to promote radical, disruptive innovation in Africa, Toshiyuki Nakamura, Director General of Industrial Development and Public Policy Department said: “the common thread between GAFA, (Google, Apple, Facebook and Amazon), is the implementation of Kaizen. Incremental and radical innovation, are one of the most important messages for the continent.”

Through JICA, the Kaizen approach has expanded its outreach to 25 countries on the continent; touched 18,096 enterprises and 301 public institutions.

The African Development Bank President, Akinwumi Adesina is leading a high-level delegation to TICAD7 which is being held in Yokohama city from 28-30 August.

The Tokyo International Conference on African Development, led by Japan, started in 1993. African heads of states and key business leaders are scheduled to attend from around the world, providing an opportunity to explore investment opportunities. The event, held every 3 years, has been convened alternately in Japan and Africa since 2016.  The last TICAD was held in Nairobi, Kenya.

*AFDB

President Akinwumi Adesina

Abidjan, Côte d’Ivoire, 26 August 2019 – A high-level African Development Bank delegation, led by President Akinwumi Adesina, is set to join global leaders at the 7th Tokyo International Conference on African Development, TICAD7 from August 28-30.

TICAD7, hosted by Japan and co-organised by the United Nations Office of the Special Advisor on Africa (UN-OSSA), and the United Nations Development Programme (UNDP), aims at “promoting high-level policy dialogue between African leaders and development partners.”

President Adesina, is expected in Tokyo on Tuesday. Whilst in Japan, he will address the second plenary session of TICAD on the theme: “Accelerating Economic Transformation and Improving Business Environment Through Innovation and Private Sector Engagement”.

Several other engagements are also scheduled for Adesina and senior Bank management, including an International Finance Corporation/African Development Bank side event: “The Digital Africa 2020 and Japanese investment Panel: Creating markets to digitize Africa, and a side event co-hosted by the World Food Programme and the African Union Commission on “Strategic investments in Africa: Food security, human capital, sustainable agriculture, innovation and private sector partnership.”

The Bank’s senior management attending TICAD7 include, Dr. Celestin Monga, Bank’s Chief Economist and Vice President, Economic Governance and Knowledge Management; Dr. Jennifer Blanke, Vice-President, Agriculture, Human and Social Development;  Ms. Bajabulile “Swazi” Tshabalala, Vice President for Finance and Chief Finance Officer; and Khaled Sherif, Vice-President, Regional Development, Integration and Business Delivery.

VP Monga will address a panel on “Africa’s Socio-economic Transformation through Innovation” while VP Sherif will be a speaker on another panel:“Building a Better World through Business – Challenges in Humanitarian Assistance in Africa and the Role of Private Sector,” held at Waseda University.

VP Blanke will take part in sessions on “Investing in Human Capital Development in Africa- A case for Education & Skills, Nutrition, Health and Jobs for Youth”, and an African Leaders for Nutrition event: Designing sustainable and resilient societies.

A major announcement is expected in support of the Enhanced Private Sector Assistance (EPSA) Initiative, an innovative, multi-component, multi-donor framework.

The initiative seeks to support development to meet the infrastructure needs of Africa, with a special focus on the private sector.

The 7thTokyo International Conference on African Development (TICAD), led by Japan, started in 1993. African heads of states and key business leaders from around the world are scheduled to attend, providing an opportunity to explore investment opportunities. The event, held every 3 years, has been convened alternately in Japan and Africa since 2016.  The last TICAD was held in Nairobi, Kenya.

Anthony Nyong, Director of Climate Change and Green Growth at the African Development Bank

Abidjan, Cote d’Ivoire, 14 August 2019 – The Clean Technology Fund (CTF) one of two multi-donor trust funds within the Climate Investment Funds (CIF)  on August 8, 2019 approved $20 million for the Facility for Energy Inclusion (FEI), a facility sponsored by the African Development Bank to  provide sustainable financing for small-scale renewables in Africa.

FEI is a $500 million financing platform whose objective is to catalyze financial support for innovative energy access solutions.  FEI On-grid, a targeted USD 400 million fund, supports improved energy access through the development of small-scale renewable energy generation and mini-grids across Africa, while the Off-Grid Energy Access Fund (OGEF), a targeted USD 100 million fund, supports off -grid energy distribution companies and boosts their long-term capacity to access capital markets at scale.

The CTF investment, composed of a $4 million junior equity tranche and a $16 million senior concessional loan,  will be drawn from the Dedicated Private Sector Program III, designed to provide risk-appropriate capital to finance high-impact, large-scale private sector projects in clean technologies.

Stressing the difficulty rural areas have in attracting investment for affordable and productive electricity, Anthony Nyong, Director of Climate Change and Green Growth at the African Development Bank said the funds would contribute to economic and social growth and enhance its recipients’ resilience to the effects of negative climate change.

“Access to affordable and reliable energy has huge benefits at various levels of any society. Most of the 600 million people estimated to lack access to modern energy services in Sub-Saharan Africa are also among the most vulnerable to the disastrous consequences of climate change,” he said.

FEI is expected to contribute to the installation of around 600MW of renewable energy projects across different African countries and avoid over 30 million tons of CO2 equivalent of greenhouse gas emissions over a period of 20 years while yielding positive gender and social outcomes.

By Bakary Ceesay

Dr. Akinwumi Adesina, President of the African Development Bank

The African Development Bank has extended a $3 million grant to The Gambia for sustainable urban development of the Greater Banjul Area. The grant came from the Bank’s Transition Support Facility (TSF).

A tripartite project signing ceremony between the Ministry of Finance, United Nations Office for Projects Services (UNOPS) and the African Development Bank took place on July 22, 2019 at the offices of the Ministry of Finance in Banjul.

The activities of the project will include capacity building and the formulation of a master plan for urban development using digital technologies which are intended to greatly improve the operational efficiency of the three municipalities (Banjul, Kanifing and Brikama), and also provide support to the Banjul port expansion.

The Greater Banjul Area: Sustainable Urban Development Programme 2020-40 will serve as a pilot with implications for the roll-out country-wide.

The United Nations Office for Projects Services in The Gambia is implementing the project and already carried out a stakeholder workshop in conjunction with the Bank on the June 17-18, 2019 at the Atlantic Hotel in Banjul during which local stakeholders provided inputs to the master plan and the launch of the project.

Stakeholder consultations are still ongoing and more data is being captured to assure a successful development of an integrated and well informed greater Banjul area digital master plan.

Abidjan, Cote d’Ivoire, 06 July 19 – The African Development Bank Group on Monday signed a $4.8 million institutional support grant to the African Union (AU) for implementation   of the African Continental Free Trade Area (AfCFTA).

The grant, approved by the Group’s Board of Directors on 01 April 2019, forms part of a series of interventions by the Bank in its lead role to accelerate implementation of the Free Trade Agreement, seen as a major force for integrating the 55-nation continent and transforming its economy.

Albert Muchanga, AU’s Commissioner for Trade and Industry, initialed for the continental body, and Obed Andoh Mensah, representing the Bank’s Director of the Industrial and Trade Development Department (PITD), signed on behalf of the Bank, signaling the startup of implementation.

African leaders meeting in Niamey, Niger in early July launched the implementation phase of the free trade area agreement established in March 2018 after it became operational at the end of May this year. Currently, 54 states have signed the deal and are set to begin formal trading next July.

“The AfCFTA is going to work and we are  confident that by the 1^st of July next year, all the 55 countries would have been state parties – meaning, they would have signed and ratified the agreement and intra-African will start,” Muchanga said and urged countries to use this period to complete the parliamentary processes.

Muchanga commended the Bank’s strong and consistent support to ensure smooth implementation of the Agreement, saying the grant would be used judiciously for the rollout of various protocols relating to the structure and mandate of the AfCFTA secretariat.

The AU currently has an interim secretariat, tasked to provide the organizational structure for the permanent administrative body, its work program and related issues including its budget. The Niamey summit announced the siting of the AfCFTA secretariat in Accra, Ghana.

The Continental Free Trade deal has the potential to create the largest free-trade area in the world.  – uniting 55 African countries with a combined gross domestic product of more than $2.5 trillion. It is a major force for continental integration and expansion of intra African trade, currently estimated at around 16%.

The trade agreement is expected to expand intra-African trade by up to $35 billion per year, ease movement of goods, services and people across the continent’s borders and cut imports by $10 billion, while boosting agriculture and industrial exports by 7% and 5% respectively.

In his remarks, Andoh Mensah stressed that the deal will help stabilize African countries, allow small and medium sized enterprises to flourish, promote industrialization and lift millions out of poverty.

“If the AfCFTA is complemented by trade facilitation reforms, reduction in non-tariff barriers, improved infrastructure and policy measures to encourage employment and private sector investments, it will stimulate poverty reduction and socio-economic development across Africa,” he said, noting that the goals of AfCFTA are aligned to the Bank’s flagship High 5s.