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The New Partnership for Africa’s Development (NEPAD) transformation into the African Union Development Agency
July 10, 2018 | 0 Comments
The Assembly approved the establishment of African Union Development Agency as the technical body of the African Union with its own legal identity
 

Mr. Ibrahim Assane MAYAKI Executive Secretary of NEPAD

Mr. Ibrahim Assane MAYAKI Executive Secretary of NEPAD

JOHANNESBURG, South Africa, July 9, 2018/ — At the recent 31st Ordinary Session of the Assembly of African Union Heads of State and Government in Nouakchott, Mauritania, African Heads of State and Government received several reports, including the status of the implementation of the AU Institutional Reforms presented by President Paul Kagame of Rwanda. President Kagame is the current chair of the African Union and the champion for the AU Institutional Reforms process.

During the Summit in Nouakchott, a decision was officially taken on the transformation of the NEPAD Planning and Coordination Agency into the African Union Development Agency. 

The Assembly approved the establishment of African Union Development Agency as the technical body of the African Union with its own legal identity, defined by its own statute.  The statue will be developed and presented for adoption at the next AU Summit in January 2019.

The Assembly commended the leadership of Senegalese President, H.E Macky Sall, current Chairperson of the NEPAD Heads of State and Government Orientation Committee, for reinforcing the credibility of NEPAD that has been acknowledged in the international community, including the G20 and the G7.

The current reforms at the AU are an affirmation by member states of their commitment to the NEPAD Agency as the Union’s own instrument established to champion catalytic support to countries and regional bodies in advancing the implementation of the continent’s development vision – as articulated in the seven aspirations and 20 goals of Agenda 2063.

Dr Ibrahim Mayaki, CEO of the NEPAD Agency, stated that, “A core aspect of the current reforms is to streamline and improve effectiveness and efficiency in delivery in the implementation of AU decisions, policies and programmes across all AU organs and institutions. In this sense, as the NEPAD Agency is the technical implementation agency of the AU, one specific recommendation in the Kagame report is to transform it into the AU Development Agency. We are enthusiastic about this transformation, which will make it possible to deploy our programmes even more effectively in the service of our continent’s development.”

 

 

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Annual Meetings of the Boards of Governors of the African Development Bank Group: “Accelerating Africa’s industrialization”
March 24, 2018 | 0 Comments
21 – 25 May 2018, Busan Exhibition Conference Center, Busan, Republic of South Korea
ABIDJAN, Ivory Coast, March 23, 2018/ — The 53rd Annual Meeting of the Board of Governors of the African Development Bank and 44th Meeting of the Board of Governors of the African Development Fund (http://www.AfDB.org/am), the concessional arm of the Bank Group, are scheduled to take place from May 21-25, 2018 in Busan, Korea.

While Africa has enjoyed strong economic growth for almost two decades, the continent has not seen a commensurate rise in industrialization. On average, African industry generates merely US$700 of GDP per capita, which is barely a fifth in East Asia (US$3,400). In addition, African exports consist of low technology manufactures and unprocessed natural resources, which represent more than 80 percent of exports from Algeria, Angola or Nigeria, for example.

Africa’s rapid industrialization holds the potential for a win-win scenario – for the world, and certainly for the continent. It would also help raise productivity by spurring technological progress and innovation while creating higher-skilled jobs in the formal sector; promote linkages between services and agricultural sectors; between rural and urban economies; and among consumers, intermediates and capital goods industries. Industrialization will also make the prices of manufactured exports less volatile or susceptible to long-term deterioration than those of primary goods, as well as help African countries escape dependence on primary commodity exports.

The theme is generating a lot of interest at a time when Korean and Asian companies are increasingly active in Africa. What lessons can Africa learn from Korea’s development experience? Can relations between both regions, built on a win-win formula, enable Africa claim a more significant share of world trade? Can Afro-Asian commercial and financial ties favor the development of the African private sector? What are the most effective policy levers that could foster structural transformation on the continent? How can the continent learn from the experiences of Korea and leading African nations such as Mauritius, Morocco, Ethiopia, and Rwanda in the industrialization process? These and other questions will be debated during the Busan Annual Meetings.

The Annual Meetings are one of the largest economic gatherings on the continent. Thousands of delegates, Heads of State, public and private sectors stakeholders, development partners and academics, will reflect on Africa’s industrialization − one of the Bank’s High 5 strategic priorities (https://www.afdb.org/en/the-high-5) and an avenue to improve the living conditions of Africans.

During the meetings, the Bank will organize a series of knowledge events to generate new ideas for developing and financing Africa’s industrialization. Highlights of the meetings will include a high-level presidential panel on Accelerating African Industrialization: Bringing the future to the present. The panel will be a platform for political leaders from Africa and Korea to present their visions and strategies for industrialization as well as ideas for overcoming implementation challenges.

The Bank will launch the updated version of the African Economic Outlook (AEO) 2018 – the Bank’s flagship economic publication. Several knowledge events are on the programme such as Pathways to Industrialization, where panelists will deliberate on the various trajectories African countries can follow towards sustainable industrialization. A panel on Future of Work and Industrialization will examine how Africa can adapt its educational systems and workers’ skills to suit new economic realities, particularly for industrial development of the continent, among other sessions.

Journalists willing to take part in the Meetings are requested to send to the Bank a designation letter from their news organization at the following address: (media@afdb.org). Upon receipt of the letter, the Bank will send a personal code that will allow online registration. Online registration will close on 13th May 2018. Journalists from countries without Korean diplomatic representation should register early enough in order to get assistance from the Bank in obtaining a visa should they need one.

The African Development Bank will not cover transport and subsistence costs for journalists travelling to Busan.

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Adesina Urges America to Support African Agriculture as a Business
February 23, 2018 | 0 Comments
I do not seek aid for Africa. I seek investments in Africa – Akinwumi Adesina, President of the African Development Bank
Akinwumi Adesina, President of the African Development Bank and Sonny Perdue, Secretary of Agriculture

Akinwumi Adesina, President of the African Development Bank and Sonny Perdue, Secretary of Agriculture

ARLINGTON, United States of America, February 22, 2018/ — The President of the African Development Bank (www.AfDB.org), Dr. Akinwumi Adesina has made a strong case for increased American and global investments to help unlock Africa’s agriculture potential.

He made the remarks as the Distinguished Guest Speaker, at the USDA’s 94th Agriculture Outlook Forum (www.USDA.gov/oce/forum) in Virginia on Thursday, on the theme The Roots of Prosperity.

According to Adesina, “For too long, Agriculture has been associated with what I call the three Ps – pain, penury, and poverty. The fact though is that agriculture is a huge wealth-creating sector that is primed to unleash new economic opportunities that will lift hundreds of millions of people out of poverty.”

Participants at the Forum included the Secretary of Agriculture, Sonny Perdue; Deputy Secretary of Agriculture, Stephen Censky; President of the World Food Prize Foundation, Kenneth Quinn; Chief Economist of the U.S. Department of Agriculture (USDA), Robert Johansson; Deputy Chief Economist, Warren Preston; and several top level government officials and private sector operators.

Adesina appealed to the US private sector to fundamentally change the way it views African agriculture.

“Think about it, the size of the food and agriculture market in Africa will rise to US $ 1 trillion by 2030. This is the time for US agri-businesses to invest in Africa,” he said. ‘’And for good reason: Think of a continent where McKinsey projects household consumption is expected to reach nearly $2.1 trillion and business-to-business expenditure will reach $3.5 trillion by 2025. Think of a continent brimming with 840 million youth, the youngest population in the world, by 2050.”

The U.S. government was urged to be at the forefront of efforts to encourage fertilizer and seed companies, manufacturers of tractors and equipment, irrigation and ICT farm analytics to ramp up their investments on the continent.

“As the nation that first inspired me and then welcomed me with open arms, permit me to say that I am here to seek a partnership with America: a genuine partnership to help transform agriculture in Africa, and by so doing unlock the full potential of agriculture in Africa, unleash the creation of wealth that will lift millions out of poverty in Africa, while creating wealth and jobs back home right here in America,” the 2017 World Food Prize Laureate  told the Forum.”

Adesina told more than 2,000 delegates that the African Development Bank is spearheading a number of transformative business and agricultural initiatives.

“We are launching the Africa Investment Forum, as a 100% transactional platform, to leverage global pension funds and other institutional investors to invest in Africa in Johannesburg, South Africa from November 7-9.”

The World Bank, International Finance Corporation, the Inter-American Development Bank, the European Bank for Reconstruction and Development, the Asian Infrastructure Investment Bank and the Islamic Development Bank, are partnering with the African Investment Forum to de-risk private sector investments.

The African Development Bank is also pioneering the establishment of Staple Crop Processing Zones  in 10 African countries, that are expected to transform rural economies into zones of economic prosperity and save African economies billions of dollars in much needed foreign reserves.

“We must now turn the rural areas from zones of economic misery to zones of economic prosperity. This requires a total transformation of the agriculture sector. At the core of this must be rapid agricultural industrialization. We must not just focus on primary production but on the development of agricultural value chains,” Adesina added. “That way, Africa will turn from being at the bottom to the top of global value chains.”

In his keynote address U.S. Secretary of Agriculture, Sonny Perdue, said:

“The U.S. Administration has removed more restrictive regulations to agriculture than any other administration. Our goal is to dismantle restrictions that have eroded agricultural business opportunities.”

“Agriculture feeds prosperity and accounts for 20 cents of every dollar. As global prosperity grows, it in turn fuels the demand for more nutritious food and business opportunities,” he added.

In his concluding remarks, Adesina informed participants about a new $ 1 billion initiative, Technologies for African Agricultural Transformation (TAAT) to unlock Africa’s huge potential in the savannahs.

Expressing strong optimism that the future millionaires and billionaires of Africa will come from agriculture, Adesina said:

“Together, let our roots of prosperity grow downwards and bear fruit upwards. As we do, rural Africa and rural America will brim with new life, much like I witnessed in Indiana, during my time as a graduate student in America. Then, we will have changed the 3 ‘Ps’ to – Prosperity, Prosperity and Prosperity!”

The African Development Bank Group (AfDB) (www.AfDB.org) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 44 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states.

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ACBF appointed African Union specialised agency for capacity development
February 23, 2018 | 0 Comments

By Wallace Mawire

Mr Moussa Faki Mahamat, Chairperson of the African Union Commission with African Capacity Building Foundation (ACBF) management after ceremony in Harare

Mr Moussa Faki Mahamat, Chairperson of the African Union Commission with African Capacity Building Foundation (ACBF) management after ceremony in Harare

The African Capacity Building Foundation (ACBF) has been appointed as a specialised agency for capacity development by the African Union (AU) at a ceremony endorsed by Mr Moussa Faki Mahamat, Chairperson of
the African Union Commission in Harare.

Under the new framework, capacity development activities ACBF is going to undertake under will include enhancing skills required to achieve sustainable development,strengthening the human and institutional capacity of national and regional institutions,promoting economic and social transformation through policy formulation,implementation, monitoring and evaluation focusing on Africa’s developmental agenda and generating and sharing knowledge on capacity development.

It is reported that the African Union Commission shall, subject to its applicable internal procedures facilitate effective collaboration with ACBF Agency through the commission and other relevant organs of the Union, collaborate with the ACBF Agency in joint resource mobilization initiatives for the financing of
capacity building interventions in the continent and facilitate the ACBF Agency role in coordinating capacity building initiatives on the African continent.

The ACBF agency shall also create a consultative forum in which Africans may participate as full partners in the establishment of priorities and the development of policies and programs to promote capacity building in policy analysis and development management, establish processes for coordinating capacity building efforts in
policy formulation and implementation that would lead to greater efficiency and effectiveness of
ongoing donor efforts, coordinate resource mobilization to provide funding and resources for capacity building in Africa, lead, coordinate and champion production of fit-for-purpose, high-quality, and timely capacity development knowledge in support of the implementation of Africa’s development priorities, coordinate
knowledge connection (government, private sector and academia), facilitation and sharing to improve development practices, coordinate capacity development advisory services and training at continental, regional and country levels to translate capacity development knowledge and learning into relevant and innovative methods and
practices, support the emergence of a knowledge-based economy to sustain development results
in Africa, publish and disseminate information related to capacity building and capacity
utilization in Africa, collaborate with national, bilateral or multilateral institutions carrying out specific capacity building and capacity utilization activities in Africa.

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PRESIDENT BUHARI TO ATTEND AFRICAN UNION SUMMIT IN ADDIS ABABA; SET TO CHAMPION ANTI-CORRUPTION CAMPAIGN AT REGIONAL LEVEL
January 26, 2018 | 0 Comments

By FEMI ADESINA*

Nigeria's President Muhammadu Buhari attends the African Union (AU) Peace and Security Council in Addis Ababa on January 29, 2016.Getty Images Tony Karumba

Nigeria’s President Muhammadu Buhari attends the African Union (AU) Peace and Security Council in Addis Ababa on January 29, 2016.Getty Images Tony Karumba

President Muhammadu Buhari will Friday depart for Addis Ababa, Ethiopia to participate in the 30th Ordinary Session of the Assembly of Heads of State and Government of the African Union (AU).
The highlight of the President’s engagements during the visit will be his Statement under the historic theme for the AU Summit, namely: “Winning the Fight against Corruption: A Sustainable Path to Africa’s Transformation.”

This is the first time in the 54-year history of the AU that anti-corruption will be made a theme of the gathering of the regional leaders.

It would be recalled that on July 4, 2017 during the 29th Session of the AU, African leaders unanimously endorsed President Buhari to champion the fight against corruption on the continent. The endorsement was in recognition of his personal commitment and widely acclaimed anti-graft drive at the domestic level.

On July 25, 2017, the President in a letter to President Alpha Conde of Guinea, who is also the out-going AU Chairperson, formally accepted his nomination to lead members of the AU on this crucial crusade against a veritable socio-economic vice that is anti-development.

While thanking his colleagues for the honour, he reiterated his “commitment to contribute towards our collective efforts to strengthen good governance and development on the continent.”

Apart from anti-corruption, other issues lined for consideration by African leaders and their delegations include, peace and security (transnational terrorism); institutional reforms of the continental body; free movement of persons; climate change; trade; aviation; education; gender and development.

President Buhari will also hold bilateral meetings with some of his colleagues on issues of common interests.

The Minister of Foreign Affairs, Geoffrey Onyeama; the Minister of Justice and Attorney-General of the Federation, Abubakar Malami; the Minister of Interior, Abdulrahman Danbazau; the Minister of State (Aviation), Hadi Sirika; the National Security Adviser, Babagana Monguno; and the Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu are in the President’s delegation to the Summit.

*Special Adviser to the President (Media & Publicity)

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AfDB Launches Youth Advisory Group to Create 25 Million Jobs
November 28, 2017 | 0 Comments
The Jobs for Youth in Africa initiative aims at creating 25 million jobs and impacting 50 million youth over the next ten years by equipping them with the right skills to get decent and meaningful jobs
Akinwumi Adesina, President of the African Development Bank Group (AfDB)

Akinwumi Adesina, President of the African Development Bank Group (AfDB)

ABIDJAN, Ivory Coast, November 28, 2017/ — The President of the African Development Bank Group (AfDB) (www.AfDB.org), Akinwumi Adesina, has launched the Presidential Youth Advisory Group (PYAG) to provide insights and innovative solutions for job creation for Africa’s youth, as outlined in the Bank’s Jobs for Youth in Africa Strategy (JfYA) (http://APO.af/nRtVAs).

The Jobs for Youth in Africa initiative aims at creating 25 million jobs and impacting 50 million youth over the next ten years by equipping them with the right skills to get decent and meaningful jobs. It is currently the largest effort going on for youth employment in Africa today.

The advisory group, inaugurated on the sidelines of the 6th EU-Africa Business Forum in Abidjan on Monday, November 27, will work with the Bank to create jobs for Africa’s youth.

“This is a huge opportunity for Africa. If we fix the youth unemployment challenge, Africa will gain 10-20% annual growth. That means Africa’s GDP will grow by $500 million per year for the next thirty years. Africa’s per capita income will rise by 55% every year to the year 2050,” Akinwumi Adesina, President of the African Development Bank (AfDB) said at the inauguration of the Group.

Adesina, who identified Africa’s greatest asset as its youth, observed that out of the 13 million youths that enter the labour market each year, only 3 million (about 33% of African youth) are in wage employment, while the rest are underemployed or in vulnerable employment. The annual gap of more than 8 million jobs is going to worsen, with the number of youth expected to double to more than 800 million in the next decades.

“Africa has an unemployment crisis among its youth,” he stressed, noting that unless employment opportunities are created for them, Africa’s rapidly growing population of youths can give rise to serious social, economic, political and security challenges.

Africa’s youths, though strong and dynamic, cross the desert or the Mediterranean sea because they do not find decent jobs in Africa. Graduates are wandering in the streets, jobless. The low level of employment opportunities is also fueling violence and extremism in Africa. “40% of African youths engaged in armed violence join gangs or terrorist groups because of limited opportunities in their countries,” Adesina said.

“66 million African youths earn less than $2 a day, less than the price of a hamburger,” the AfDB President emphasized. “66 million is 8 times the size of Switzerland, 6 times the size of Belgium, the same size as UK, France or Italy, and 80% of Germany’s population,” he added.

The Presidential Youth Advisory Group (PYAG) comprises nine members under the age of 40 who have made significant contributions to the creation of employment opportunities for African youth.

The PYAG members are: Ashish Thakkar, CEO, Mara Group, Tanzania (Chair); Uzodinma Iweala, award-winning author, Nigeria; Mamadou Toure, Founder / CEO, Africa 2.0 / Ubuntu Capital, Cameroon; Vanessa Moungar, Human and Social Development Director, AfDB and member of President Macron’s Presidential Council for Africa, Chad; Francine Muyumba, President, Panafrican Youth Union, Democratic Republic of Congo; Jeremy Johnson, Co-founder, Andela, USA; Clarisse Iribagiza, CEO, Hehe, Rwanda; Ada Osakwe, CEO, Agrolay Ventures, Nigeria; and Monica Musonda, CEO of Java Foods, Zambia.

On the rationale behind the setting up of the advisory group, President Adesina explained: “We recognize the enormous amount of energy, creative and innovative thinking, and entrepreneurial excellence that many of our youth bring to the table. For this reason, the Bank must ensure that it is well advised by cutting-edge youth representatives on its policies, actions and programmes, for the benefit of Africa’s youth.”

“The members of the Presidential Youth Advisory Group are expected to actively engage private sector partners, government leaders, civil society, donor partners, and other stakeholders; and support the significant amount of work that the Bank is already doing and promoting across the continent through its Jobs for Youth in Africa strategy,” President Adesina added.

A youth-led economic transformation agenda

PYAG is an opportunity for leading young voices in Africa to develop new and fresh perspectives and recommend innovative solutions that will shape AfDB’s support to African countries, and reduce the scourge of Youth unemployment.

The AfDB is fully committed to working with the PYAG to scale up and expedite results that deliver decent and sustainable jobs for African youth, through formal employment and successful youth entrepreneurship that allows African youth to become their own drivers of economic prosperity, social stability and environmental sustainability.

Ashish Thakkar, CEO of the Mara Group and Chair of the PYAG, said: “It is a great honour to serve our continent in this function. We know that the stakes are high, but we are committed to the task of creating flourishing youth businesses that provide tremendous value. We are also focused on facilitating the achievement of AfDB’s High 5s and Sustainable Development Goals. We have just concluded our work program for the next year and have hit the ground running.”

He described how his family lost everything they had during the genocide in Rwanda in the 1990s.

“I have borrowed $5,000 to launch my business without any form of support. Today, Mara Group has 14,000 employees around the world. I was alone, but imagine what we can do together with the support of an institution like the AfDB.”

“I have never heard of an institution as important as the AfDB setting up and advisory group only made of youth. A Chinese proverb has it that if you want 1 year of prosperity, plant a grain. If you want 10 years of prosperity, plant a tree. If you want a century of prosperity, invest on people,” said Mamadou Touré, a member of the group.

Also speaking, Ada Osakwe said: “40% of entrepreneurs in Nigeria are women, but 73% operate in consumer retail systems. We need to address that and provide youth with more lucrative jobs.”

To make agriculture more attractive to young people, the AfDB last year invested $800 million in supporting young entrepreneurs in agriculture as a business in 8 countries. It will reach 15 countries this year. The Bank expects to invest 1.5 billion per year for the next 10 years to support young agripreneurs.

The AfDB is delivering on its youth strategy

The AfDB has made great progress toward implementing its strategy through three key pillars: innovation, integration and investment. In terms of integration, the Bank entered into partnership with the International Labour Organization to strengthen the capacity of African countries to harmonize Youth Employment into national policies.

The Youth Entrepreneurship and Innovation Multi-Donor Trust Fund which will serve as a financial and operational instrument, with initial support of USD 4.4 million by Denmark and Norway.

The African Development has also developed the Enabling Youth Employment (EYE) Index to measure youth employment outcomes and enabling policies at country levels.

“With this amazing group of very diverse young individuals, we even hope to exceed the Bank’s goal to create 25 million jobs and 50 million youth equipped with the right skills,” said Thakkar enthusiastically. “It is time to change the narrative about Africa’s youth!”

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An emotional tribute in memory of former AfDB President Babacar Ndiaye
September 24, 2017 | 0 Comments
Babacar Ndiaye, the Bank Group’s fifth elected President, who served two terms between 1985 and 1995, passed away on July 13, 2017 in Senegal
President Adesina and Babacar Ndiaye's family

President Adesina and Babacar Ndiaye’s family

ABIDJAN, Ivory Coast, September 23, 2017/ — “Goodbye, Papa, farewell to the ambassador for Africa’s development, rest in peace.” In an intensely emotional tribute, the President of the African Development Bank (AfDB) (www.AfDB.org), Adesina Akinwumi, opened a ceremony honouring Babacar Ndiaye at the organisation’s headquarters in Abidjan.

Adesina announced that the AfDB headquarters auditorium will from now on be named Babacar Ndiaye Auditorium.

Babacar Ndiaye, the Bank Group’s fifth elected President, who served two terms between 1985 and 1995, passed away on July 13, 2017 in Senegal.

With Ndiaye’s widow and several children in attendance, as well as former AfDB President Kantinka Dr Kwame D. Fordwor, members of the Senegalese and Ivorian Governments, representatives of the diplomatic corps, and active and retired AfDB staff members. Adesina fondly recalled Babacar Ndiaye’s complete and passionate commitment to the development of Africa.

“He was an AfDB icon, he was a father and mentor to every one of us, and emphatically launched the career of the Bank Group’s current President. He inspired us. In losing him, Africa has lost one of its best sons.”

President Adesina underlined the personal ties between him and his predecessor, recalling that he knew Ndiaye when he worked for the West Africa Rice Development Association (WADRA), which was then based in Bouaké, Côte d’Ivoire.

“Babacar Ndiaye was charismatic, and left an indelible mark on our continent. His legacy is vast, because he always saw the big picture. He was quite simply magnificent,” Adesina stated.

He added, “During the campaign for the AfDB presidency, I naturally went to see him in Dakar. He welcomed me warmly. I took the opportunity to tell him about my vision for the High 5s . He agreed right away, and told me, ‘That’s what Africa needs to transform itself.'”

Arriving at the institution in 1965 as part of the first group of African managers, Ndiaye climbed the organisational ladder to become Division Chief, Director, Vice-President for Finance, and then President in 1985. Babacar Ndiaye was the first AfDB President to be re-elected to a second term of office.

Under his leadership, the pan-African financial institution obtained its first Triple-A rating in 1984.

The former President was the force behind the increase in the Bank’s capital in 1987, which jumped from approximately US $6 billion to $23 billion, a 200% increase, after approving the process of opening the Bank’s capital to non-African countries. He was also responsible for bringing the Bank into the international financial market.

“Babacar Ndiaye accomplished tremendous things for the AfDB and for Africa. He always advocated for excellence. He made the AfDB a credible and respected institution internationally,” stated Donald Kaberuka, former AfDB President (2005-2015), in a message read on his behalf by Victor Oladokun, AfDB Director for Communication and External Relations.

Builder of institutions

Beyond his complete commitment to the Bank’s success and providing it with a solid foundation, Babacar Ndiaye helped establish major pan-African institutions, such as the African Import-Export Bank, Afreximbank; Shelter Afrique; and the African Business Roundtable. Representatives of these organizations were specially sent from Cairo, Lagos and Nairobi to attend the tribute ceremony on Thursday.

“Without Babacar Ndiaye, African industry leaders such as Aliko Dangote or Michael Ibru would undoubtedly not be where they are today. Babacar Ndiaye invested his faith and perseverance in Africa’s business community. We will be eternally grateful to him,” said Bamanga Tukur, President of the African Business Roundtable.

Christopher Edordu, founding President of Afreximbank, highlighted Ndiaye’s visionary approach, which allowed him to look beyond the era’s Afro-pessimism and embrace opportunities to finance African businesses.

“It took more than six years to establish Afreximbank. When others abandoned it, Babacar Ndiaye persevered and had patience. He firmly believed in the future of African trade at a time when that belief was not widely shared. Seeing what we have become today, we have to recognize the fact that he was a true visionary,” Edordu explained.

It was not the only time that the AfDB’s fifth elected President was proven right when confronted with naysayers. At a time when housing was not yet central to urban development in Africa, he encouraged the creation of Shelter Afrique, an organisation dedicated to financing affordable housing on the continent.

Tribute to Babacar N'DIAYE, 21 September 2017

Tribute to Babacar N’DIAYE, 21 September 2017

According to Edmond Adikpe, Shelter Afrique’s regional representative, “Babacar Ndiaye knew how to anticipate. He understood early on that Africa must address the problem of housing. At Shelter Afrique, we are eternally thankful to him for everything he did during our creation and evolution.”

The room was filled with emotion as one speaker followed another, with the audience warmly applauding their words of praise for Babacar Ndiaye, who remains the only President in AfDB history to have risen through the ranks of the organisation.

“He was installed as President in 1985 at the Abidjan Congress Centre in the presence of then Ivorian President Félix Houphouët-Boigny, who held the African Development Bank in high esteem,” recalled Paul Morisho Yuma, former AfDB Secretary General, drawing a standing ovation from the audience.

“Senegal is proud of you”

Although he devoted his life to Africa, Babacar Ndiaye never forgot Senegal, his country of origin. According to the Senegalese Budget Minister, Birima Mangara, AfDB Governor for Senegal, who flew in from Dakar to attend this ceremony, Ndiaye contributed significantly to the development of bilateral cooperation between his country and the Bank. “Between 1972 and now, the AfDB has invested close to 1,400 billion CFA francs in Senegal. We owe that to all of you here, but in particular to Babacar Ndiaye.

“Senegal is proud of you as a son. Babacar Ndiaye is not gone; he is still present in the depths of Africa. We hear his breath in an Africa on the move,” added the Senegalese Budget Minister, paraphrasing the poet Birago Diop.

 

In attendance, Ndiaye’s widow, Marlyne Ndiaye, nodded her head in agreement, with tears in her eyes. Arriving in Abidjan in 1965, Babacar Ndiaye developed a special relationship with Côte d’Ivoire, home of the Bank’s headquarters. No fewer than three Ivoirian Ministers were present in the AfDB auditorium this week.

“He was a friend of Côte d’Ivoire. We all miss Babacar Ndiaye. President Alassane Ouattara misses him, having known him well and greatly appreciated him. He was a roving ambassador for African development,” agreed François Albert Amichia, Minister of Sports and Leisure, who led the Ivorian Government delegation.

His memory lives on

Alassane Ndiaye, son of the deceased, spoke on behalf of his family. He first thanked the Bank for taking the initiative to hold the ceremony to honour and pay tribute to his father. “The entire family is proud of and thankful for this ceremony. What you have done today touches us deeply and we thank you from the bottom of our hearts,” said the Ndiaye family’s spokesman, in a voice filled with emotion.

He urged those present to pursue the trail blazed by his father.

“He wanted the best for Africa. He believed in and loved the idea of a better Africa. Let’s continue to work for a better future for our continent. That would be the best and most unique way to perpetuate his hopes and his memory,” continued Alassane Ndiaye.

“Replacing darkness with light, well-nourished and healthy children, free flow of goods, people and ideas throughout the continent, and restoring hope to the hopeless – these were the ideals to which President Babacar Ndiaye dedicated his life. The work to realize these dreams continues in the High 5s,” declared AfDB Senior Vice-President Charles Boamah at the ceremony’s conclusion.

Last July, a high-level delegation from the Bank, led by Charles Boamah, along with Vice-Presidents Alberic Kacou and Amadou Hott, Acting Vice-President, Finance, Hassatou N’Sele, and Director of Special Projects Sipho Moyo, attended Babacar Ndiaye’s funeral in Dakar.

During a recent visit to the Senegalese capital, President Adesina visited his predecessor’s home to express his sympathy and support his widow and children.

The African Development Bank Group (AfDB) (www.AfDB.org) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 37 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states.

*courtesy of AFDB

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Official launch of NEPAD’s 5% Agenda initiative for infrastructure financing in Africa
September 19, 2017 | 0 Comments
Bridging Africa’s $68bn infrastructure finance gap
 Ibrahim Assane Mayaki, NEPAD Chief Executive Officer

Ibrahim Assane Mayaki, NEPAD Chief Executive Officer

NEW YORK, United States of America, September 18, 2017/ — The New Partnership for Africa’s Development (NEPAD) (www.NEPAD.org) – African Union’s economic development programme gathered international investors and CEO-level business leaders at the NASDAQ Stock Market today, 18th September, for the launch of its 5% Agenda campaign.

The launch took place five years after a January 2012 African Union Summit adopted the Programme for Infrastructure Development in Africa (PIDA) which sets out 51 cross-border infrastructure programmes and more than 400 actionable projects in four sectors.

According to the World Bank, the continent needs to spend $93 billion annually (44% for energy; 23% for water and sanitation; 20% for transport; 10% for ICTs; and 3% for irrigation) until 2020 to bridge its infrastructure gap, which is currently removing an estimated 2% of GDP growth every year. On the other hand, Africa only managed to close 158 project finance deals with debt totalling $59 billion over the decade 2004-2013, which represents only 5 percent of infrastructure investment needs and 12 percent of the actual financial flows.[1]

The 5% Agenda campaign highlights that only a collaborative public-private approach can efficiently tackle these issues and calls for allocations of institutional investors to African infrastructure to be increased to the declared 5% mark.

Speaking at the launch event in New York, Ibrahim Assane Mayaki, NEPAD Chief Executive Officer, commented: “Infrastructure plays a leading role in supporting growth on the continent. At the same time, it can represent an innovative and attractive asset class for institutional investors with long-term liabilities. By launching the 5% campaign in New York today, we invite investors to take advantage of the wide-ranging opportunities Africa has to offer and to move forward with what can only be a win-win partnership”.

The launch of the campaign gathered high-level international investors and business leaders, including members of the PIDA Continental Business Network (CBN) which is spearheaded by NEPAD and constitutes a CEO-level private sector infrastructure leaders dialogue platform on PIDA.

Tony O. Elumelu, one of Africa’s most prominent entrepreneurs and active participant in the CBN said: “Africa is getting stronger every day with new business opportunities and innovative ideas but what is still crucially missing is project implementation. A coherent and coordinated approach is needed to mobilize institutional investors while limiting their risk exposure. African governments need to work on creating conducive environments to attract these investments which are so vital for the continent’s growth and development.”

According to a 2016 McKinsey report, institutional investors and banks have $120 trillion in assets that could partially support infrastructure projects.[2]

Now more than ever, Africa needs to tap into this available. As banks face additional regulatory challenges and as governments have limited fiscal space, it is becoming increasingly urgent to unlock additional flows from long-term institutional investors such as insurers, pension funds, and sovereign wealth funds.

For pension and sovereign wealth funds to be able to invest in large-scale infrastructure projects in Africa, a variety of issues need to be addressed to strategically and intentionally facilitate long-term allocations. Chief amongst these matters is the need to reform national and regional regulatory frameworks that guide institutional investment in Africa. Likewise, new capital market products need to be developed that can effectively de-risk credit and hence, allow these African asset owners to allocate finance to African infrastructure as an investable asset class to their portfolio.

All these issues are at the heart of the 5% Agenda roadmap, which is the backbone of NEPAD’s campaign and is foreseen to have the following impact:

  1. Unlocking notable and measurable pools of needed capital to implement regional and domestic infrastructure projects on the continent.
  2. Broadening and deepening the currently very shallow African capital markets, whilst at the same time contributing significantly to regional integration and job creation.
  3. Promoting the development of innovative capital market products that are specific to the continent’s challenges and potential in regards to infrastructure development.
  4. Raising the investment interest of other institutional and non-institutional financiers that so far have been hesitant to include African infrastructure projects as an asset to their investment portfolio based on specific, concrete next steps and project suggestions.
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Africa50 Gains Guinea and Democratic Republic of Congo as Shareholders; Highlights Strategy and Investment Pipeline
September 13, 2017 | 0 Comments
DAKAR, Senegal,12 September 2017, -/African Media Agency (AMA)/- Africa50, the pan-African infrastructure investment platform, held its third Shareholder Meeting in Dakar on Tuesday, September 12. President Macky Sall of Senegal welcomed the delegates. African Development Bank Group President and Chairman of the Board of Africa50, Akinwumi Adesina, gave a feature address, and Africa50 CEO Alan Ebobisse provided updates on the Fund’s investment pipeline and strategy. They were joined by finance ministers, senior officials, and ambassadors from the 23 shareholder countries and members of the business community.

In his remarks, President Sall expressed his strong support for Africa50’s mission to catalyse private sector investment, from within and outside Africa, in infrastructure in Africa, since public resources are not sufficient. Outlining Senegal’s success, he stressed that governments must improve the business climate and create an environment conducive to private investment in infrastructure, including the regulatory environment for public private partnerships. Stating that “Africa is open for business”, he stressed that the continent has defined its priorities through initiatives such as PISA, and can use Africa50 as an important new instrument. He said, “I encourage all African countries to join this fund, which is ours, to fill our infrastructure funding gap.”

Africa50 Chairman Adesina, reiterated the need for private investment to close the large infrastructure funding gap in Africa, citing growing investor interest. Looking ahead to 2025 and a projected annual funding gap of $30-40 billion, financing African infrastructure will require a balance between development finance, which can fund and de-risk early stage financing, and long-term institutional investment which can quickly narrow the funding gap. Africa50, he said, was designed by the AfDB to help blend public and private finance, and through its project development division, build up the pipeline of “bankable” projects and facilitate public private partnerships. He commended the Africa50 leadership for ramping up operations, hiring top-notch staff and consultants, and naming a respected Investment Committee. The AfDB, he assured the audience, will continue to work closely with Africa50, especially to increase access to power. Chairman Adesina also officially welcomed two new Africa50 shareholders, Guinea and the Democratic Republic of Congo. (Note: Since the last Shareholders Meeting in July 2016 Tunisia has also joined.)

Thanking Chairman Adesina and President Sall for their presence and support, Africa50 CEO Alain Ebobisse, stressed the importance of the private sector to fill the infrastructure financing gap. He cited three success factors for Africa50’s mission: the strong support of the AfDB and the shareholders, the competence and experience of Africa50’s staff, and the quality of projects, which focus on being commercially viable while having a strong development impact.

In a video presentation that opened the event, Mr. Ebobisse and senior Africa50 staff further outlined Africa50’s comparative advantage for financing infrastructure in Africa. Specifically:
*    Through its close relationship with shareholders and African governments Africa50 can mitigate country risk through high-level public-sector engagement and by leveraging AfDB’s support.
*    Through its project development activities and ongoing dialogues with shareholder governments Africa50 can generate a strong deal flow to attract infrastructure investors.
*    By upholding international best-practice Environmental, Social, and Governance standards, Africa50 can help assure the long-term viability of projects.
*    And, finally, by building an experienced leadership and investment team with a demonstrated track record of successful deal-making on the continent, Africa50 will inspire confidence and catalyse more private investments in infrastructure.

 
Africa50 is an infrastructure investment platform that contributes to the continent’s growth by developing and investing in bankable projects, catalyzing public sector capital, and mobilizing private sector funding, with differentiated financial returns and impact.
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High hopes for cocoa farmers in Africa, as AfDB plans big for producing countries
August 13, 2017 | 0 Comments

Cocoa production in Africa is set to take a turn for the better, as the African Development Bank (AfDB) begin plans to support producers of the crop on the continent.

Among other planned interventions, the Bank is considering support to Ghana and Côte d’Ivoire to reduce the volatility of the international prices of cocoa. Côte d’Ivoire leads the world in the production and export of cocoa.

Ghana and Côte d’Ivoire are now at the final stages of discussions for AfDB support. A final deal is expected to be announced in the days to come.

But following high-level meetings between the governments of both countries and the AfDB President, some key agreements have already been made.

The Bank has agreed to assist the countries to establish a Cocoa Market Stabilization Fund and a Cocoa Exchange Commission for the management of production.

The AfDB has also agreed to work with them to establish a Cocoa Industrialization Fund to further grow the cocoa industry. The Fund will help in developing the regional markets for by-products and domestic processing for targeted African regional markets. The overall objective is to stimulate and expand consumption.

In line with this, the two countries have jointly requested for US $1.2 billion for mutually identified projects: to tackle the cocoa swollen shoot virus disease; build storage and warehousing facilities; promote processing and consumptions; establish the Africa cocoa exchange; and to establish the stabilization fund.

The President of the African Development Bank (AfDB), Akinwumi Adesina, stressed the commitment of the Bank during a three-day visit to Ghana, August 1-3, 2017.

Adesina stressed that although Ghana and Côte d’Ivoire produce 64% of the world’s cocoa, they play no role in controlling the market.

He spoke about the Bank’s plans to support Ghana and Côte d’Ivoire to transform the cocoa industry and create more jobs and wealth from the produce.

“AfDB has received a request for $1.2 billion from Ghana’s Minister of Agriculture and from the Cocoa and Coffee Board of Côte d’Ivoire. We are looking at building warehouses so you can store the cocoa and not have to sell immediately after harvest,” he said.

He said the planned establishment of a stabilization fund is to deal with the volatility of prices and also to recapitalize old cocoa plantations.

Part of the loan will also finance the construction of modern storage facilities, farm rehabilitation and disease control, including compensation to owners of cocoa trees ravaged by swollen-shoot viral disease, Adesina explained.

Ghana has to move to the top of the cocoa value chain by processing and adding value to what it produces, Adesina said. He also noted that Ghana has to work closely with other countries, particularly Côte d’Ivoire, to ensure that Africa plays a greater role in the cocoa production process.

“We must use agriculture to create wealth for our farmers. To do this, we must make sure that we add value and process everything that we produce. Agriculture is not a way of life. Agriculture is a business.”

Chief Executive Officer of the Ghana Cocoa Board (COCOBOD) Joseph Boahen Aidoostressed the need to stimulate local consumption as part of efforts to enhance production. He spoke when the AfDB President visited the Cocoa Processing Company (CPC) in Tema, a city near Accra, Ghana.

Africa consumes very little of cocoa. Ghana is an example of a cocoa-producing country where local consumption is very limited.

“Value addition is the only way we can have a say in the market. As it is now, international prices are determined either at the New York Stock Exchange or the London Stock Exchange. We do not have any say.”

He stressed how the price of cocoa had fallen by 40% in the past six months, dropping from about US $3,000 per ton to an average of about $1,900 per ton.

The only way out of the price volatility, he explained, is to improve upon processing and local production.

Ghana’s Minister of Finance, Ken Ofori-Atta, called for support to increase the country’s earnings from the commodity.

“Between us and Côte d’Ivoire, we control 60-70 per cent of cocoa in the world. But we have remained price takers. That should not happen. That is because our leaders have not been working together. We are excited that the President of the AfDB is stepping in to help us. We are now working together to see how we can transform this industry.”

He stressed that both countries should work together to change the cocoa narrative.

Ofori-Atta pointed out that though the cocoa seeds alone generate US $140 billion worth of business, Africa earns very little from it.

“Ghana and Côte d’Ivoire are putting together a package to see how we stabilize and ensure that we get better deals in the future and change the fortunes of our farmers. We should be able to pay our farmers competitive prices,” he noted.

Ghana’s Minister of Agriculture, Owusu Afriyie Akoto, said the government was working on the restoration of existing warehouses to provide storage space to private traders to promote the purchase of produce at the farm gate and he welcomed the AfDB’s help.

Adesina assured of the Bank’s support and promised that support would eventually extend to other cocoa producers such as Nigeria, Cameroon and Togo.

Cocoa is a strategic crop because of its high contribution to Ghana’s export earnings. It is cultivated predominantly by smallholder farmers with an average of 2 hectares per farm. Only 10% of the estimated 800,000 hectares under cultivation are large-scale commercial farmers.

The grinding of cocoa to produce the primary cocoa product used for confectionaries and manufacturing is done outside the country, aside from small-scale domestic grinding including the Cocoa Processing Company, a subsidiary of the COCOABOD.

The cocoa sub-sector is currently adversely affected by policy failure, market failure and under-provision of critical domestic and regional public goods, leading to low and volatile global and farm gate prices. Production is worsened by cocoa swollen shoot virus disease.

Indeed, all the benefits from reforms such as yield increases, are diminished in light of low prices and result in reform measures benefiting consuming countries at the expense of local farmers. Trading and processing activities are dominated by few firms, while the production of the cocoa beans is dominated by many small-scale producers.

Cocoa bean prices are determined in the trade houses (since there are only a few buyers), this creates a favourable condition for traders and processors to influence prices. The attendant effect is low revenue from cocoa farmers.

Governments of both countries have been meeting at the ministerial levels to swiftly act on addressing the volatility in the international price. Issues being discussed include enforcing minimum value addition rather than outright sales of cocoa beans; stimulating/encouraging local and regional consumption of cocoa; and exploring the regional market dimension by promoting cocoa products other than chocolate.

The AfDB is mobilizing experts to undertake an assessment mission in the two countries.

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How AfDB’s investments in youth raise hope for a new Africa
August 13, 2017 | 0 Comments

“The future of Africa’s youth does not lie in migration to Europe; it should not be at the bottom of the Mediterranean; it lies in a prosperous Africa. We must create greater economic opportunities for our youth right at home in Africa.” – Akinwumi Adesina to G7 leaders

Current statistics put Africa’s overall unemployment rate at 8%, while the youth unemployment rate hovers around 13%.

Sixty per cent of unemployed people are young women and men. Of the young people who are employed, many are trapped in low-productivity work in the informal sector. Providing young African people with the education, skills and capacities for gainful employment is considered an urgent priority.

Thanks to the African Development Bank (AfDB), a new crop of highly inspired young Africans are gradually emerging. AfDB’s initiatives in this area are seen as model of how the continent’s young population could become a development asset for a new Africa.

To enable them contribute to the economy and to achieve an improved quality of life, a growing number of youths are embracing small, medium and large agriculture-based industries nudged on by the AfDB.

They are taking hold of their destiny. They can be also found in education, health, ICT and other facets of entrepreneurship.

Indeed, latest statistics reveal that many young Africans are not only exploring their inner potential, they are taking advantage of innovation platforms, inspired by the African Development Bank.

Through initiatives like the Jobs for Youth in Africa (JfYA)Empowering Novel Agri-Business-Led Employment (ENABLE) Youth, and the African Youth Agripreneurs Forum (AYAF), the AfDB is equipping young people with the right skills for business and employment. AfDB has also strengthened its support for science, technology and innovation training by investing in centres of excellence, working in collaboration with the private sector.

With 200 million Africans recorded to be between the ages of 15 and 29, youth unemployment and underemployment are high. Investing in skills through technical and vocational education will be essential to enabling young people to find jobs and business opportunities.

“We will keep Africa’s youth in Africa by expanding economic opportunities. This will help Africa to turn its demographic asset into an economic dividend,” Akinwumi Adesina, President of the African Development Bank Group, said.

At the African Union Summit in January, the African Union (AU) adopted the theme for 2017 as “Harnessing the Demographic Dividend through Investments in Youth.”

AU Heads of States and Governments recognized a country-level demographic dividend as central to the continent’s economic transformation in the context of AU Agenda 2063 – its global strategy for socioeconomic transformation within the next 50 years.

Given Africa’s current demographic structure with a high youthful population, the regional body sees a substantial potential for economic transformation.

According to the AU Roadmap on Harnessing the Demographic Dividend through Investments in Youth, “Africa is on the march towards a more prosperous future in which all its citizens, young, old, male, female, rural, urban, of all creeds and backgrounds are empowered to realize their full potential, live with satisfaction and pride about their continent.”

AfDB is showing that this is doable and is already leading the way.

For instance, through its Jobs for Youth in Africa initiative, AfDB has taken a comprehensive and integrated approach to equipping young people for work and enterprise.

Over the next decade, Jobs for Youth in Africa projects to generate 25 million jobs and impact 50 million youths.

In the agriculture sector, the AfDB is focusing on Empowering Novel Agri-Business-Led Employment (ENABLE) Youth programs, developing small and medium enterprises and creating jobs in agriculture. ENABLE Youth is a programme for young African people (18-35 years old) wanting to start a business in the agricultural sector. It works to promote, enhance, and modernize agricultural entrepreneurship in Africa.

The stories from the ENABLE Youth participants are resounding.

In Uganda (the second largest producer of bananas in the world), Sam Turyatunga saw an opportunity in producing his own brand of banana juice. As a college student, Sam produced the juice in his own dormitory. Supported by AfDB, Turyatunga now produces 1,500 litres of banana juice daily and sells its product in three other countries in East Africa. His firm also supports 500 banana farmers.

At the African University of Science and Technology in Abuja, Nigeria, young scientists and researchers are being trained to enhance industrial innovation, competitiveness and sustainable development across the continent.

“We are integrating a youth employment component into new Bank projects, and are working closely with regional member countries to develop policies that promote youth employment,” said Adesina.

The Bank believes that harnessing the labour, energy and enterprise of young women and men is critical to driving economic growth and reducing poverty.

In line with its Jobs for Youth in Africa Strategy, the Bank is integrating a youth employment component into the design of every operation it undertakes.

The Bank is assisting its regional member countries to develop national youth employment policies, supporting innovative work on best practices to help young people become entrepreneurs, and making investments that catalyze the private sector to increase employment opportunities.

There is a consensus that the 2017 theme on Harnessing the Demographic Dividend through Investments in Youth, has the potential to have far-reaching implications that would address all the key issues that Governments have had to contend with, and change the development trajectory of Africa.

“We must create wealth and restore happiness to our nation. We can only do this when we have an educated and skilled population that is capable of competing in the global economy. We must expand our horizons and embrace science and technology as critical tools for our development,” said Nana Akufo-Addo, President of Ghana.

“The good economic prospects of our country must first profit our youth, because they are our greatest strength and our greatest wealth,” said Alassane Ouattara, President of Côte d’Ivoire.

AfDB’s leadership in this area is considered a viable example, which countries can tap into.

*Source AFDB

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Fitch affirms African Development Bank’s Triple ‘A’ rating with Stable Outlook
August 12, 2017 | 0 Comments

Leading global rating agency Fitch Ratings has affirmed the African Development Bank’s (AfDB) Long-Term Issuer Default Rating (IDR) at ‘AAA’ with a Stable Outlook and its Short-Term IDR at ‘F1+’ (best quality grade, indicating exceptionally strong capacity to meet its financial commitments).

In a statement released on 4 August, the agency said the ‘AAA’ rating primarily reflects extraordinary support from AfDB’s shareholders which provides a three-notch uplift over the Bank’s intrinsic rating.

“AfDB enjoys strong support from its 80 member states, which include 26 non-African countries with high average ratings. Callable capital subscribed by member states rated ‘AAA’, the largest of which are the US, Germany and Canada, accounts for 21% of the total. This fully covered the Bank’s net debt at end-2016, underpinning the ‘aaa’ assessment of shareholders’ capacity to support,” the statement said.

The report underscores the strong propensity of member states to support the Bank in case of need as illustrated by previous capital increases and the Bank’s important role in the region’s financing.

In the assessment, Fitch maintains that fast growth in AfDB’s lending in the last two years has translated into a rapid increase in its indebtedness, noting that the Bank’s Management has indicated that if there is no clear evidence of a capital increase within the next two years, it will have no choice but to curb lending growth to preserve the Bank’s solvency metrics. The report added that if no capital increase is approved by 2019, debt will not be fully covered by callable capital from ‘AAA’ rated countries, adding that this would place substantial pressure on Fitch’s assessment of extraordinary support and, hence on AfDB’s IDR.

Fitch asserts that the relatively high risk profile of borrowers is mitigated by the preferred creditor status (PCS) that the Bank enjoys on its sovereign exposures.

Fitch assesses AfDB’s liquidity at ‘aaa’, which reflects excellent coverage of short-term debt by liquid assets (2.9x). However, Fitch notes that the share of the portfolio invested in securities or bank placements rated ‘AA-‘ or above (83% in 2016) is declining, although their quality is still assessed at excellent. Fitch understands that management intends to rebalance the treasury assets portfolio in order to increase the proportion of assets rated ‘AA-‘ or above. This would help underpin Fitch’s assessment of the strength of extraordinary support, given the relevance of liquid assets’ quality to the net debt calculation.

“The -1 notch adjustment to AfDB’s solvency stemming from our assessment of its business environment reflects the high risk operating environment in which the bank operates,” the report says, noting that the majority of African countries are classified as low income by the World Bank. The average income per capita and average rating of member states are the lowest of all regional MDBs, and they are subject to an overall high level of political risk.

Commenting on the rating, AfDB Acting Vice-President for Finance, Hassatou Diop N’Sele, said, “We welcome the confirmation of the AfDB’s AAA rating by Fitch, with a stable outlook. The Bank is dedicated to doing the most to make a marked positive difference in the lives of hundreds of millions of Africans, while at the same time preserving its financial integrity. Our High 5agenda is our response to the need to accelerate and scale up Africa’s development to achieve the Sustainable Development Goals of the continent. The High 5 agenda, reflecting five identified priority areas (namely energy, agriculture, industrialization, integration and human capital development), enjoys strong support from our shareholders. The AfDB will continue to maintain a careful balance between maximizing its development effectiveness and assuring complete preservation of the interests of its stakeholders.”

*AFDB

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