Call Us Now: (240) 429 2177

from-the-institutions

African Development Bank, Credit Suisse, Industrial and Commercial Bank of China and Ghana Cocoa Board ink $600 million loan agreement to boost cocoa production
November 12, 2019 | 0 Comments
  • Agreement is a turning point for scaling up the cocoa value chain – President Nana Addo Dankwa Akufo-Addo of Ghana
  • Ghana is bankable, cocoa is bankable and of course Africa is bankable – Dr. Akinwumi A. Adesina, President, African Development Bank

The African Development Bank, Credit Suisse AG, the Industrial and Commercial Bank of China Limited and Ghana Cocoa Board (COCOBOD) signed a $600 million syndicated receivables-backed term loan on Tuesday, to boost cocoa productivity in Ghana – the world’s second-largest cocoa producer.

Ghanaian President Nana Addo Dankwa Akufo-Addo, the President of the African Development Bank Dr. Akinwumi A. Adesina, senior officials from Credit Suisse and ICBC, oversaw the signing of the facility, at a ceremony held on the second day of the 2019 Africa Investment Forum.

The multi-million dollar agreement is a milestone for the Bank-convened Africa Investment Forum, a transactional platform dedicated to transforming the continent’s investment and development agenda, which kicked off in Sandton City Johannesburg on Monday.

The COCOBOD transaction was launched at the Africa Investment Forum in 2018, and a year later, the signing is a demonstration of the Forum’s ability to raise much needed financing, including from international commercial financiers, for projects in Africa. Prior to the agreement, COCOBOD did not have access to long-term debt capital.

At a press conference following the signing, President Akufo-Addo said the agreement would help to ensure higher incomes for Ghana’s cocoa farmers.

“It was critical that we find a mechanism for scaling up the value chain for our farmers and that is where the Bank came in,” Akufo Addo said. “We see this agreement as a turning point and…to what is possible on this continent.”

The Bank, as Original DFI Lender and Initial Mandated Lead Arranger, is partnering with Credit Suisse as Original Commercial Lender, Global Commercial Coordinator, Co-Mandated Lead Arranger. Credit Suisse is also acting as Joint Commercial Underwriter and Bookrunner to structure and fund a dual-tranche facility comprising a $250 million, 7-year DFI tranche with the Bank, as well as a $350 million, 5-year commercial tranche.

The Industrial and Commercial Bank of China Limited London Branch joined as an Original Commercial Lender, Co-Mandated Lead Arranger and Joint Commercial Underwriter and Bookrunner ahead of syndication.

Syndication of the facility is underway.

Making sure that Africa gets to the top of the value chain is one of the African Development’s Bank’s top priorities, President Adesina said, adding that Africa could become a global hub for cocoa and cocoa-based products.

“All cocoa producing countries will get similar support (from the Bank). Ghana is bankable, cocoa is bankable and of course Africa is bankable,” Adesina said.

COCOBOD will use the facility to raise cocoa yields per hectare and increase Ghana’s overall production. These include financial interventions to sustainably increase cocoa plant fertility, improving irrigation systems, rehabilitating aged and disease-infected farms. The funds will also help increase warehouse capacity and provide support to local cocoa-processing companies.

Signing for Credit Suisse, Madthav Patki said the “landmark” transaction would facilitate future long-term investment in the Ghanaian cocoa sector.

“This is a positive contribution to a key sector of Ghana’s economy. “It is a moment of tremendous pride…This is what the Africa Investment Forum is all about,” Patki said. He also commended the Bank’s signature expertise in financial instruments, that enabled them to leverage financing for the deal.

The Africa Investment Forum, an initiative of the African Development Bank is an innovative, multi-stakeholder transactional marketplace, dedicated to raising capital, advancing projects to bankable stage, and accelerating financial closure of deals. 

Ghana’s cocoa sector employs some 800,000 rural families and produces crops worth about $2 billion in foreign exchange annually. COCOBOD is a fully state-owned company solely responsible for Ghana’s cocoa industry, controlling the purchase, marketing and export of all cocoa beans produced in the country.

0
Read More
Africa Investment Forum 2019: Billion dollar boost for African female entrepreneurs
November 12, 2019 | 0 Comments

EIB Vice President, Ambroise Fayolle.Photo CNBC

The European Investment Bank (EIB) has announced a $1.1 billion lending programme to help women entrepreneurs on the continent.

EIB Vice President, Ambroise Fayolle, also revealed that the bank has signed three further agreements to boost sustainable development on the continent.

But the major deal is what the EIB has dubbed SheInvest. The EIB expects the gender-lending initiative to allow women to play a more active role in economies.

“This initiative aims to promote female entrepreneurship,” said Fayolle, noting that female entrepreneurs will also gain business skills from the initiative. He explained that the financing will promote gender investment related to climate change and is part of broader European engagement to provide targeted support for new investment that supports increased female economic participation in Africa.

The announcement was made at the Africa Investment Forum in Johannesburg, where hundreds of investors, development partners and wealth funds have gathered from 11 to 13 November for the continent’s premier marketplace.

The EIB is the lending arm of the European Union. The EIB has supported investment in Africa for more than 50 years. Last year, it provided a record €3.3 billion to African countries, with more than half the funds being pumped into the private sector.

As one of the largest providers of climate finance, the investment bank has also struck a deal with Guinea-based telecommunications provider, IPT PowerTech Group, which will see the company abandon fossil fuels for cleaner sources of power such as solar and wind.

Mohamed Al Habbal, Vice President and Chief Operating Officer at IPT PowerTech Group, says the move to renewable sources of energy such as solar power will help the company reduce its carbon footprint. Habbal estimates that thousands jobs will be created as a result of this deal.

A further deal that was signed on the first day of the second Africa Investment Forum, will see African Trade Insurance increase its membership in Western and Southern Africa. This increased insurance coverage is expected to attract more investment to the continent.

In Southern Africa the EIB confirmed a new lending programme to support access to finance by entrepreneurs across Malawi and confirmed a new scheme to finance smallholders in the country to be launched early next year.

Patricia Hamisi, a Senior Manager at Malawi’s FDH Bank, says the money will help the bank enhance its long-term credit to small businesses owned by women. “The agreement comes with technical assistance which will help the bank enhance its trade financing,” said Hamisi.

The Africa Investment Forum inaugural edition was launched in 2018 in partnership with Africa50, Afrexim Bank, the Trade Development Bank, the Development Bank of South Africa, the Islamic Development Bank, the Africa Finance Corporation, the European Investment Bank.

The 2019 Forum runs from 11 to 13 November in Johannesburg, South Africa.

*AFDB

0
Read More
2019 Africa Investment Forum: Achieving an African economy four times bigger with only a 50% increase in energy demand
November 12, 2019 | 0 Comments

Africa has the potential to expand the continental economy fourfold, with energy demands expanding by only 50 percent, according to a new report. The International Energy Agency (IEA) unveiled its report on the first day of the second African Investment Forum in Johannesburg, South Africa.

Africa Energy Outlook 2019 found that the continent’s future energy prospects look bright, but only if Governments can make the shift to more renewable energy sources. The report says there are three factors that will determine the continent’s future energy consumption – its growing population, the rapid increase in urbanisation and industrialisation.

Kieran McNamara, an analyst at IEA, noted that these will have “profound effects on Africa’s energy mix and how the economy develops.”
The IEA has for the first time conducted detailed modelling of the energy mix for 11 countries in Sub-Saharan Africa, namely Angola, South Africa, Democratic Republic of Congo, Kenya, Tanzania, Ethiopia, Côte d’Ivoire, Mozambique, Nigeria and Senegal.

The projected energy mix needed for Africa will be very different from the current one, with countries moving away from biomass and fossil fuels to renewable sources of energy.

About 600-million Africans have no access to electricity, although this has improved since 2013, according to IEA’s analysis. “In order to start to address the problem, we have to realize the scale of the emergency. And that data is extremely important. You have to be able to define the problem before you can actually address it,” said Wale Shonibare, Acting Vice President of Power, Energy, Climate and Green Growth.

Africa also needs to radically increase its investment in power generation from the current $30-billion to $120-billion by 2040, if it is to achieve universal access to electricity, according to Tae-Yoon Kim, another analyst at IEA.

If countries on the continent do not change current policies on energy use, Africa will not achieve the African Development Bank’s target of universal electricity by 2030.

But with improved policies, Africa can see the continental economy expand four times with matching energy demand that is only 50 percent greater than the current demand.

Kenya is one country where universal access to electricity could become a reality by 2022, if it continues with its current policy that has brought a large amount of renewables into the energy mix. Ethiopia could follow suit towards the end of the decade.   

The African Development Bank and the IEA, an autonomous agency aiming to improve the world’s energy markets, participated in a high-level side event during the African Investment Forum 2019. Other participants included the European Commission, the African Union Commission and the African Energy Commission.

Discussions were based on the African Development Bank’s “Light Up and Power Africa” strategy, through which the bank hopes to build knowledge of the African energy sector, and assist in achieving universal access to electricity on the continent. Governments, utilities, regulators and investors will hopefully use this knowledge to help them grow energy sectors, while reducing costs. The availability of quality data will improve African countries’ abilities to make informed energy policy decisions and to provide private investors with valuable market analysis.

Through the New Deal on Energy for Africa (NDEA), the Bank has positioned itself to lead Africa’s energy transformation. The NDEA is a partnership-driven effort launched in 2016, which aims to achieve universal access to electricity in Africa by 2025.

The Africa Investment Forum (AIF) brings together project sponsors and investors, borrowers, lenders, policy makers and public and private sector investors, to promote Africa’s investment opportunities.

The Forum runs from 11-13 November in Johannesburg, South Africa.

0
Read More
2019 Africa Visa Openness Index: African Union Commission, African Development Bank report shows wins in visa restrictions across Africa
November 11, 2019 | 0 Comments

  • For the first time, on average, Africans can travel to approximately 27 countries visa-free or with a visa on arrival
  • Ethiopia moves up a record 32 places on the Index, entering the top 20 most visa-open countries in Africa

For the first time, African travellers have liberal access to over half the continent, the 2019 Africa Visa Openness Index published by the African Union Commission and African Development Bank, reveals. The report was launched on Monday on the sidelines of the Africa Investment Forum, which opened in Johannesburg, South Africa.

The progress on visa openness in Africa follows growing momentum for greater integration between countries and signals that policymakers across the continent are pushing reforms, making it easier for African businessmen and women, investors, students and tourists to travel.

This fourth edition of the Index shows that 47 countries improved or maintained their visa openness scores in 2019. African visitors no longer need a visa to travel to a quarter of other African countries, whereas visa-free travel was only possible to a fifth of the continent in 2016. Currently, 21 African countries also offer eVisas to make travel more accessible, up from up from 16 in 2018, 13 in 2017, and 9 in 2016).

The 2019 top performers on visa openness rank among the top countries for foreign direct investment in Africa, and benefit from strong levels of growth, including in tourism. The Index shows that Seychelles and Benin remain the top two countries on visa openness in Africa, with their visa-free policy for all African visitors. Ethiopia moved up a record 32 places on the Index and entered the top 20 most visa-open countries in Africa.

African Development Bank President Akinwumi A. Adesina said, “Our work on the Africa Visa Openness Index continues to monitor how Africa is doing on free movement of people. Progress is being made but much still needs to be done. To integrate Africa, we should bring down the walls. The free movement of people, and especially labour mobility, are crucial for promoting investments.”

The Visa Openness Index has inspired reforms in more than 10 African countries including Ghana, Benin, Tunisia, Ethiopia and Kenya, unlocking tremendous potential for the promotion of intra-regional tourism, trade and investments.

Despite the gains shown in the report, there is the need to move further.  In 2019, only 26% of Africans are able to get visas on arrival in other African countries, up by only 1% compared to 2016.

Countries need to make more progress on visa regimes, including introducing visas-on-arrival. By breaking down borders, Africa will be able to capitalize on gains from regional integration initiatives such as the African Continental Free Trade Area, the Single African Air Transport Market, and the Protocol on the Free Movement of Persons.

“It cannot be stressed enough how crucial integration is for the development of the continent and the fulfilment of its people’s aspiration to well-being. I congratulate those member states that have taken measures to ease the procedures for the entry of African nationals into their territories, and urge those that have not yet done so to join this growing momentum,” said Moussa Faki Mahamat, Chairperson of the African Union Commission.

About the Africa Visa Openness Index

The Africa Visa Openness Index measures how open African countries are when it comes to visas by looking at what they ask of citizens from other countries in Africa when they travel. The Index is tracking changes in country scores over time to show which countries are making improvements that support freer movement of people across Africa.

Download the 2019 Africa Visa Openness Index and find out more at www.visaopenness.org

*AFDB

0
Read More
2019 Africa Investment Forum: There’s never been a better time to invest in Africa than now, infrastructure, agriculture investment opportunities abound
November 11, 2019 | 0 Comments

It was a presidential start on Monday to the African Development Bank’s Africa Investment Forum in Johannesburg, South Africa.

Dignitaries and delegates from the continent and around the world gathered to listen to Presidents Cyril Ramaphosa of South Africa, Paul Kagame of Rwanda, Nana Akufo-Addo of Ghana and Prime Minister Agostinho do Rosario of Mozambique. 

They engaged in a discussion titled, Invest in Africa’s Space: Conversation with African Heads of State, moderated by Dr. Victor Oladokun, African Development Bank Group Director of External Relations and Communications.

The message from all is clear – Africa is better placed than ever for investment.
President Cyril Ramaphosa identified infrastructure, energy, manufacturing and tourism as the sectors where the most investment opportunities exist in South Africa. And as the tourism capital of the continent, the president claims when God created Africa, he spent more time on the southern tip.

Rwanda’s President Paul Kagama had a positive message to share, “There has been a lot of progress and activities taking place on the continent, raising Africa to a higher level. I have always thought it was Africa’s time – but in the past we have let ourselves down.” He says his country has created a conducive investment environment through good governance systems and security, and according to the World Bank, it is the second easiest African country with which to do business. Rwanda is focusing on three main areas – creating an agribusiness hub, the planned Kigali Innovation City and the Kigali Innovation Fund.

For Ghana’s President Nana Akufo-Addo, the Africa Continental Free Trade Area remains a priority. He says his government is working to strengthen the country’s macro-economy, “We’ve managed to turn around rising inflation, curbed debt, and maintained discipline in the managing of public finances. In just 3 years, our economy is expanding to become one of the world’s fastest growing economies.” The country’s current priorities are infrastructure, agriculture and mineral resources.

Prime Minister Agostinho do Rosario representing the President of Mozambique, says his country has changed a lot. His government is open to investment, fighting corruption and has improved transparency. It has managed to control inflation, reducing it from 27% to 13%. The country has a youthful population, which is ready to work. Mozambique has many investment opportunities, particularly in oil and gas, agriculture and mineral resources.

The four presidents also responded to questions from the audience.
There was a common theme amongst the leaders – continuing governance issues need to be addressed, such as political stability, security and conflict. President Kagama says many African states know what needs to be done, which includes improving accountability, transparency and trust, while promoting the role of women.

Answering a question about the safety of foreign nationals in South Africa, President Ramaphosa reassured the continent that his country has always welcomed people from around the world, especially its neighbors, as South Africa is home to all.

He says his government is taking action and setting up an early warning system.

On agriculture and fisheries sector in Mozambique, Prime Minister Agostinho do Rosario said the industries are vital for job and income creation. He adds that only 10% of arable land in his country is being used. Modernization is needed, as well as expansion in crops like maize, cashew nuts and cotton. Mozambique’s government is also working to maintain peace in the country.

Asked about his government’s approach to the cocoa industry, Ghana’s President, Nana Akufo-Addo explained that his country and Côte d’Ivoire produce about 65% of the world’s cocoa, worth about $100bn. Of that money, the farmers producing the product, receive about $6bn. Both countries have decided to take action by forging a common policy with a set cocoa floor price, increasing the farmers’ earnings.

The Africa Investment Forum is an innovative, multi-stakeholder transactional marketplace conceived by the African Development Bank, aimed at raising capital, advancing projects to the bankable stage, and accelerating financial closure of deals.

The 2018 inaugural Africa Investment Forum secured investment interests for deals valued at $38.7 billion — in less than 72 hours.

The 2019 Forum runs from 11 to 13 November in Johannesburg, South Africa.

*AFDB

0
Read More
2019 Africa Investment Forum kicks off delivering on the promise to redefine and unpack the continent’s investment opportunities
November 11, 2019 | 0 Comments
  • $500 million equity closed for the Africa Infrastructure Investment Fund to speed up investments in agriculture
  • Financial close for the Africa Guarantee Fund $175 Equity transaction to support Small and Medium Size Enterprises, and $350 million for South Africa’s beef agro-processing project

The 2019 Africa Investment Forum opened on Monday living up to its promise to move from commitment to action.

A $500 million equity deal presented by the Africa Infrastructure Investment Fund last year, to speed up investments in agriculture, and a $175 million equity transaction from the Africa Guarantee Fund for investors to support Small and Medium Size Enterprises, are among the transactions that found financial close over the past year.

The opening ceremony was attended by President Cyril Ramaphosa of South Africa; President Nana Akufo Addo of Ghana; President Paul Kagame of Rwanda; and Prime Minister Agostinho do Rosario of Mozambique. 

 “The time is now to move with speed to ensure that we unlock our potential…Indeed our continent is ripe for investments, but more importantly, it is also brimming with enormous profitable opportunities,” President Ramaphosa said in his address, as he urged investors to move beyond pledges.

The Africa Investment Forum is an innovative, multi-stakeholder transactional marketplace conceived by the African Development Bank, aimed at raising capital, advancing projects to the bankable stage, and accelerating financial closure of deals.

 “As the investor community, your presence here shows your unwavering will to help us and support us to succeed. I invite you, therefore, to join us as we pass the flickering torch of progress across every border of this great continent until the light of development and economic prosperity illuminates every African village, every African town, every African city, in every African household.” he said.

The inaugural Africa Investment Forum secured investment interests for deals valued at $38.7 billion in less than 72 hours. “A lot of progress has been made on these investment interests,” with a highly dedicated team of partners working around the clock to accelerate financial closure for transactions,” African Development Bank President Akinwuni Adesina said.

Another transaction tabled last year – a $600 million transaction for COCOBOD to help improve processing and value addition for cocoa – has also reached financial close, and will be signed during this edition of the Forum. Similarly, South Africa’s $350 million beef agro-processing project has reached financial close.

“Promise made, promise kept,” said Adesina. He noted that Mara Phones Ashish Takkhar made a commitment during the 2018 Forum. “In 2019, he delivered.”

“It is a new, more confident Africa. A continent now aware of its place in the world and determined to be a global investment haven. And Africa is harnessing investors’ interests and investments. Welcome to the Africa Investment Forum, the place to be for investors,” he said.

Several leading figures were in attendance including, the Premier of Gauteng province, David Makhura; Tito Mboweni, Minister of Finance and African Development Bank’s Governor for South Africa; Dr. Nkosazana Dlamini Zuma, Minister of Cooperative Governance & Traditional Affairs and Ibrahim Mayaki representing the chairperson of the African Union Commission. Minister Philip Mpango from Tanzania; Minister Jean Jacques Bouya from the Republic of Congo; Mr. Vital Kamerhe from the Democratic Republic of Congo were among the high-level delegates who took part in the opening ceremony. Executive Governors from Nigeria, including Kayade Fayemi of Ekiti State; Okezie Ikpeazu of Abia State, and Adulrahman Abdurazaq of Kwara State.

Shortly after the opening ceremony, Masai Ujuri, President of the Toronto Raptors; Ashish J. Thakkar, CEO of Mara Group and Tokunboh Ismael Managing Partner of Alitheaia IDF Fund shared their views on progress made since 2018.

The Africa Investment Forum inaugural edition was launched in 2018 in partnership with Africa50, Afrexim Bank, the Trade Development Bank, the Development Bank of South Africa, the Islamic Development Bank, the Africa Finance Corporation, the European Investment Bank.

The Forum runs from 11 to 13 November in Johannesburg, South Africa.

*AFDB

0
Read More
“News with a human face” in focus at African Development Bank and Thomson Reuters Foundation workshop for African journalists
November 11, 2019 | 0 Comments

“The training opened my eyes to see Africa as it is, and not as it is portrayed in the media,” said Thando Magudulela, a journalist with the South African Broadcasting Corporation, at the opening of the second edition of a reporting workshop hosted by the African Development Bank in South Africa.

Following the successful first edition in Abidjan last June, the African Development Bank and the Thomson Reuters Foundation organised the next phase of its collaboration from 6-8 November 2019,  in Pretoria.

“Let’s work together in creative ways to ensure accountability in our countries, and build a new Africa for future generations,” Victor Oladokun, the Bank’s Director of Communication and External Relations, said in a presentation at the programme.

“Permit me to say it is not all doom and gloom. Together, we need to tell the stories of some of the positive developments taking place on our continent and of a resurgent Africa,” Oladokun told participants.

The workshop was attended by journalists from 21 Southern and Eastern African countries.  The programme offered them specialised reporting knowledge and skills focusing on impact development placing people at the center of the continent’s development narrative.

The three-day programme delivers on a pledge that Bank President Akinwumi Adesina made at the Bank’s Annual Meetings last year in Busan, South Korea, where he promised to provide development training to journalists.

As part of the rigorous course, trainees visited Ekurhuleni East TVET College in Germiston, Gauteng Province, where the Bank‘s support has impacted 200 students, instructors and Small Medium and Micro Enterprise (SMMEs) in the local community. This has led to improved performance of students and productivity for SMMEs.

“I am impressed with the selection of trainers. I learnt a lot, and this is good for my career development. I will forever value this opportunity and will always be grateful to the African Development Bank,” said Doreen Chilumbu Nawa from the Zambian Daily Mail.

The African Development Bank’s High 5 priorities sharpen the focus and adapt the global agenda and the Paris Climate Agreement to the Agenda 2063 for Africa developed by the African Union.

“This training gave us opportunity to learn that we can also focus on changing and developing our communities through our profession,” said Kebadiretse Rasekhutla, from Gabz FM, based in Botswana.

The High 5s target inclusive growth and a transition to green growth through five priorities to improve the quality of life for the people of Africa.

The Thomson Reuters Foundation promotes impartial, independent evidence-based reporting.

To Elizabeth Akolde Malath, a mid-career journalist from the South Sudan Broadcasting Corporation, the training was “an eye-opener to upcoming journalists like me.”

*AFDB

0
Read More
Why the Africa Investment Forum matters for the continent’s energy transformation
November 11, 2019 | 0 Comments

Wale Shonibare*

Wale Shonibare

The African Development Bank’s New Deal on Energy for Africa underlines the urgency to power the continent in order to end energy poverty, catalyze industrialization, and stimulate socio-economic growth. The strategy is grounded in the recognition that access to reliable, affordable and sustainable energy is central to Africa’s development, and lifting populations out of poverty. 

Close to 600 million people in the continent still lack energy access, despite Africa’s abundant energy resources, especially renewables such as wind, solar, hydro, and geothermal. Bridging the energy access gap, and catalyzing economic growth, requires substantial investments into Africa’s energy sector. The private sector sits on the bulk of the capital.

Investors recognize the opportunities in the energy sector, yet multiple barriers stand in the way of transformational private sector participation – including non-creditworthy utilities, the absence of cost-reflective tariffs, and capacity constraints throughout the energy sector value chain. Unlocking private sector capital, therefore, must be accompanied by resolving policy and regulatory issues, and other systemic bottlenecks, in order to create the right conditions for energy investments from outside and within Africa.

The impetus to mobilize and scale up private investment into the energy sector is what makes the Africa Investment Forum such a critical platform for the continent’s energy future. By leveraging the Bank’s convening power to facilitate public-private dialogue, we will move closer to our goal of universal energy access, primarily through reforms and financial instruments to de-risk transactions, enhance bankability, and fast-track project closure.

At this year’s forum, the Bank’s energy team will engage sector stakeholders in extensive consultations, knowledge exchange, networking, and peer-to-peer learning in order to address barriers to mobilizing and scaling up private investment into the energy sector. During various boardroom sessions, we will focus on a range of projects, including the Inga Dam in the DRC, the Baynes hydro plant in Angola and Namibia, and the Tulu Moye geothermal development in Ethiopia.

We will also continue discussions on the roll-out of the Bank’s transformative Desert to Power Initiative following its endorsement at the G5 Sahel Heads of State Summit on 13 September in Burkina Faso.

We will also engage further on mobilizing climate finance through the Africa Financial Alliance for Climate Change (AFAC) in order to shift portfolios of African financial institutions towards climate-friendly projects across the continent.

Earlier this year, the Board of the African Development Bank approved the Distributed Energy Service Companies (DESCOs) programme to support the deployment of off-grid solutions in Sub-Saharan Africa at scale. We will engage investors on our plans to innovate through the use of securitization financing techniques, which address access to finance barriers for DESCOs while supporting their growth and expansion into existing and new countries. We will also release the 2019 edition of the Electricity Regulatory Index (ERI), which is a diagnostic tool that highlights key areas in regulatory design and practice that require improvement.

Throughout the discussions, investors and stakeholders will be better able to understand market dynamics, policy, and regulatory frameworks, while learning first-hand about the details and potential of bankable projects, and what needs to be done to speed up financial close.

By facilitating mutually beneficial dialogue amongst stakeholders who can dramatically affect our energy landscape, the Africa Investment Forum is creating the requisite foundation for accelerated private sector investments to ultimately assure Africa’s energy transformation.

*Wale Shonibare, Acting Vice-President, Power, Energy, Climate Change & Green Growth, African Development Bank

0
Read More
Africa Investment Forum: “Short on talk, heavy on deals”, African Development Bank, South African government and partners affirm
November 10, 2019 | 0 Comments

Pretoria, South Africa, November 10, 2019 – The Africa Investment Forum will be short on talk and heavy on deals, the South African Government, the African Development Bank and key partners affirmed at a press conference ahead of the 2019 edition of the event.

Organized by the African Development Bank and its partners, the second edition of the Forum, will take place from place from 11 to13 November 2019 in Johannesburg, South Africa. The multi-stakeholder transactional marketplace is aimed at raising capital, advancing projects to bankable stage and accelerating financial closure of deals.

“Last year we achieved remarkable results with over $ 36 billion of investments interests that were signed or being were closed. We are hoping that this year it is going to be even better,” said Vuyelwa Vumendlini, Deputy Director General of the National Treasury of South Africa.

Sharing similar sentiments, Mduduzi Mbapa, Senior Advisor to the Premier of Gauteng noted that the biggest take away from last year’s edition was the need for greater interconnection on the continent. “In fact, many have been writing about Africa rising.  Through this Forum, we are making sure that our continent does rise and it contributes to the growth of the world,” he said.

Around 2000 delegates are expected to attend the innovative investment marketplace which will bring together heads of state, project sponsors, pension funds, sovereign wealth funds, institutional investors in 60 boardroom sessions to move projects from commitment to action.

“The Africa Investment Forum is designed to be a transformative platform for deals across the continent. The Africa investment forum goes way beyond the three-day event starting Monday. It is continuous process of nurturing deals, projects preparation, deal closure, meeting boardrooms, but most importantly ensuring that those deals actually happen to impact the continent,” said Chinelo Anohu, Head and Senior Director of the Africa Investment Forum.

The Africa Investment Forum partners include Africa 50, Africa Finance Corporation, Africa Export-Import Bank, Development Bank of Southern Africa, European Investment Bank, Islamic Development Bank, Trade and Development Bank.

Victor Oladokun, Director of Communication and External Relations at the Bank, said the Forum’s agenda was simple.

“In a nutshell, the Africa Investment Forum has a very simple agenda that is tilting the flow of capital into Africa at a much greater level that we have experienced up to now.”

*AFDB

0
Read More
Why global and pan African investors need to set their sights on the 2019 Africa Investment Forum
November 6, 2019 | 0 Comments

By Bajabulile Swazi Tshabalala*

The year 2019 will be one of the defining moments in Africa’s investment landscape. Bigger, bolder and more ambitious projects await delegates and investors as we prepare to kick off the second edition of the Africa Investment Forum.

A multi-billion-dollar petrochemical project in Egypt and the Kigali Innovation City Project in Rwanda, are only two of the projects which featured during the maiden edition of the Forum held in November last year.

Alongside a greater emphasis on helping transactions reach bankability and in pushing ahead the regional integration agenda, project sponsors and investors continue to flock to our digital Platform, with interest already shown in 151 projects from 34 African countries worth $112.4 billion.

Following the immense success in November 2018, the Africa Investment Forum, a brainchild of the African Development Bank, is becoming a firm fixture in the calendars of the global investment community. The 2018 event saw nearly 2,000 participants, representing 83 countries, out of which some 277 were delegates from development finance institutions that are active in Africa.

The 2018 Forum was instrumental in showcasing up to 49 different transactions at different stages of development and with a total value of close to $40 billion. These projects were presented to a large audience of investors and financiers. Judging from the interest generated, the Forum promises to play a major role in catalyzing investment flows into Africa, so instrumental in moving the continent forward into the future.

Some of the key projects for which the Forum is expected to play an invaluable role, include the Desert to Power initiative – which aims to provide 10,000 MW of solar-generated electricity to 250 million people across the Sahel. Projects like the Inga Hydro-electric scheme in the Democratic Republic of the Congo, and other major cross-border infrastructure projects in road and rail, are all highly transformative projects with important social and economic impacts.

The timing of the coming into being of the Forum is fortuitous, coming on the heels of the Africa Continental Free Trade Area and the Single African Air Transport Market, ratified by the majority of African Union members.

New investments made possible through the Africa Investment Forum have the potential to spur an explosion in trade, contribute to Africa’s re-industrialization and promote cross-border regional economic integration.

Indeed, while the platform continues to ramp up and grow, the Forum offered some very important lessons. In particular, additional resources are required to adequately prepare projects which are crucial for Africa’s development. Well-prepared projects minimize negative environmental and social issues, while maximizing development and economic outcomes, thus contributing to enhanced bankability. This notwithstanding, projects originated through the Forum will benefit from the Bank’s wider ecosystem and the numerous instruments and partnerships with other development finance institutions which will help transform project ideas into actual investments that create jobs and economic opportunities on the ground.

While the Forum is a practical and transactional platform for project deals and potential financers to interact, it has also become a staging post for new financing product innovations that compliment and contribute to de-risking and making investment opportunities more attractive for investors. Examples of recent innovations in this regard include the co-guarantee platform that was established in 2018 by the African Development Bank alongside its partners the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), African Trade Insurance Agency (ATI) and GuarantCo.

As we prepare again to put Africa on global investors’ radars, I would like to see tied to the Forum more activities with the potential of bringing increased dynamism and depth to African domestic capital markets; initiatives that help mobilize African domestic resources into projects coming to this platform for funding.

Beyond this, there are opportunities for the African diaspora whose annual remittances to the continent now top $60 billion a year, making it an immense pool of money that can actively participate in Africa’s development story and benefit from the myriad investment opportunities.

I would like to see diaspora bond issuances and/or collective investment vehicles discussed and presented at the Forum, as they can represent significant financing that can be put to work for the benefit of Africa’s development.

I also strongly encourage and welcome greater participation of the South African institutional investment management industry.

We look forward to a successful Forum and to greater acceleration of the development of the continent.

*AFDB. Bajabulile Swazi Tshabalala is Vice President for Finance and Chief Finance Officer, African Development Bank

0
Read More
African Development Bank Shareholders approve landmark $115 billion capital increase, signalling strong support
November 6, 2019 | 0 Comments

  • Bank’s capital base more than doubles. Jumps from $93 billion to $208 billion
  • Largest capital increase in the Bank’s history signals a united front by shareholders

At an extraordinary shareholders’ meeting today in Abidjan, Governors of the African Development Bank, representing shareholders from 80 countries, approved a landmark $115 billion increase in capital for the continent’s foremost financial institution.

The capital increase, the largest in the history of the African Development Bank since its establishment in 1964, is a remarkable show of confidence by shareholders.

With the approved increase, the capital of the Bank will more than double from $93 billion to $208 billion. This solidifies the Bank’s leadership on development financing for the continent.

The boost in capital ensures that the Bank will continue to maintain a sterling AAA rating, all stable, from the top rating agencies.

The African Development Bank launched discussions on the request for a general capital increase two years ago, to help fast track the delivery of its High 5 development strategies, the sustainable development goals and the African Union’s Agenda 2063.

Speaking at the opening ceremony, the President of Ivory Coast, Alassane Ouattara said: “the integration of the continent’s priorities into the High 5s indicates that the African Development Bank group is a strategic partner for African governments.”

In the past four years, the Bank’s High 5 priorities have delivered impressive results on the ground, including helping to connect 16 million people to electricity, 70 million people provided with agricultural technologies to boost food security; 9 million people given access to finance through private sector investee companies; 55 million people provided improved access to transport services; and 31 million people with access to water and sanitation.

According to African Development Bank President, Akinwumi Adesina,  “We have achieved a lot, yet there is still a long way to go. Our responsibility is to very quickly help improve the quality of life for the people of Africa. This general capital increase represents a very strong commitment of all our shareholders to see better quality projects that will significantly have an impact on the lives of the people in Africa –  in cities, in rural communities, and for millions of youth and women.”

With the new general capital increase, the Bank plans to do more, with the following expected results: 105 million people to have access to new or improved electricity connections; 244 million people to benefit from improvements in agriculture; 15 million people to benefit from investee projects; 252 million people to benefit from improved access to transport; and 128 million people to benefit from improved access to water and sanitation.

Adesina noted that “the Bank will continue its leadership role on infrastructure development, strengthening regional integration, helping to realize the ambitions of the African Continental Free Trade Area, supporting fragile states to build resilience, ensuring sustainable debt management, addressing climate change and boosting private sector investments. We will do a lot more. This is a historic moment.”

He added: “I applaud the shareholders for their strong confidence in the Bank and for boosting support for Africa’s development”.

President Adesina, Bank senior vice-president Charles Boamah and vice president for Finance and Bank Chief Finance Officer Bajabulile Swazi Tshabalala, will be available for interviews and further comment about the increase.

*AFDB

0
Read More
Africa can be world’s next economic hub if supported with right policies – Singapore’s Senior Minister tells lecture audience
November 6, 2019 | 0 Comments

Africa must spread its economic openness by strongly showcasing specialisation along the production value chain and invest more boldly in social foundations

ABIDJAN, Ivory Coast, November 6, 2019/ — With the right policies and linkages, Africa can become an indispensable global economic hub, Singapore’s Senior Minister Tharman Shanmugaratnam noted Tuesday, commending the continent’s diverse economic potential.

Delivering this year’s Kofi A. Annan Eminent Speakers’ Lecture series at the African Development Bank headquarters in Abidjan, Shanmugaratnam outlined five strategies which must underpin the continent’s transformation drive and efforts to build inclusive growth.

Africa must spread its economic openness by strongly showcasing specialisation along the production value chain and invest more boldly in social foundations. The continent must also maximise policy coherence and effectiveness, think in the long-term and maximise the benefits of global financial system, Shanmugaratnam told diplomats, students, government representatives and senior Bank officials gathered in the Babacar Ndiaye auditorium.

The lecture, the third in a new series organised by the African Development Institute, had the theme: “Inclusive Growth: Learning from Experience, Partnering for the Future – How Africa and Asia can work together for broad-based prosperity.” He was accompanied by senior government officials from Singapore.

“There are challenges, but there are also opportunities. There is much more to be done,” said Shanmugaratnam who is also Singapore’s Coordinating Minister for Social Policies.

In order to build economic resilience and create job opportunities for their bulging youth population, there must be stronger connectivity and economic interaction among developing regions, especially between Africa and Asia which share demographic similarities.

He noted that there is a significant interest by Singapore businesses in Africa which needs to be scaled up. “We need to take practical steps to spur this collaboration with more bilateral investment treaties that provide some assurance to investors.”

Singapore is the eighth largest foreign investor in Africa. It invested around $90 billion in the continent in 2018.

“We are in an unusual time globally – a time of unusual challenge where some of the basic beliefs of how the world prospect together are being challenged. But it’s also a time of immense opportunities… in the international economy, in international finance and in international cooperation,” the minister stated.

It is projected that in the next decade, Africa will have the largest working age population in the world, larger than China and India with about 1.1 billion people of working age population of between 15 and 64 years.

Shanmugaratnam said African leaders must prepare to take advantage of the strong bulging workforce, coupled with the high mobile technology penetration to drive innovation for growth.

In his welcoming remarks, Bank Group President Akinwumi Adesina noted that Africa could learn a lot from Singapore. He described Mr Shanmugaratnam as someone with expansive knowledge who was chosen because of his inspiring works in the Asian nation.

Adesina said the Eminent Lecture series was dedicated to Kofi Annan, a former Secretary-General of the United Nations (UN) in recognition of his contributions to humanity. Annan launched the UN millennium development goals.

“As we continue our efforts to do more, we want to learn from the impressive achievements of Singapore, and no one is better placed to discuss this and all of the things around Asia and Africa with us than Tharman Shanmugaratnam,” he said.

The African Development Bank launched the Eminent Speakers Lecture series in 2006 to provide a platform for a robust exchange of ideas to meet the challenges of African development.

Since then, the series has featured world-class speakers, politicians, top academics, businesspeople and civil society representatives, who have spoken on a diverse range of topics and issues, including economics, finance, regional integration, human development, the environment, and philosophy.

*AFDB

0
Read More
1 9 10 11 12 13 22