Browsing: AfDB

In the wake of the ongoing devastating drought that continues to ravage the Horn of Africa at an alarming rate, it is imperative to urgently redress Africa’s perennial water crisis. The United Nations Office for the Coordination of Humanitarian Affairs (OCHA) reports that communities in the Horn of Africa are experiencing one of the most severe La Niña-induced droughts leading Kenya and Somalia to declare national emergencies due to poor and unpredictable rainy seasons. According to the World Food Programme (WFP), an estimated 13 million people are grappling with a major drought caused by the driest conditions since 1981.

This has been the aftermath of three failed rainy seasons in Kenya, Ethiopia and Somalia that have led to extreme water shortages, consequently leading to the decimation of crops and livestock deaths, forcing families from their homes and triggering conflict between communities. The root of this deleterious crisis has been climate …

Most African countries lag behind the rest of the world in the coverage of key infrastructure classes including energy, road and rail transportation, together with water infrastructure. Development of Africa’s infrastructure has been met by colossal roadblocks, which have largely stemmed from the endemic systemic corruption that continues to ail the continent, making it one of the biggest hurdles to development. Consequently, this has made attracting foreign investment a nightmare.

This further affirms the description by McKinsey and Company that the continent faces an infrastructure paradox whereby Africa’s track record in moving projects to financial close is poor. Despite the high demand for projects, sufficient supply of capital and investors, coupled with voluminous potential projects there is insufficient investment in infrastructure projects within the region. 

Presently, more than two-thirds of the global population without access to electricity is in Sub-Saharan Africa, which is an equivalence of 600 million people. For …

• Rwanda will receive two loans amounting to $180 million from the African Development Bank 
• The funds will support a major energy project that will extend electricity access to rural areas and reduce greenhouse gas emissions
• It entails the construction of over 1,000 km of medium voltage and 3,300 km of low voltage lines to boost last-mile access
• The project is expected to connect 77,470 households to the electricity network for the first time and connect 75 schools, eight health centres and 65 administration centres

Rwanda will receive two loans amounting to $180 million from the African Development Bank (AfDB) to co-finance a major energy project that will extend electricity access to rural areas and reduce greenhouse gas emissions.

In a statement seen by The Exchange Africa, the AfDB said the new funding follows the approval for $84.2 million made in May 2021 for the same project.

According to the lender, …

• African Development Fund has approved $5.5 million technical assistance grant to support projects Eastern Sahel region countries of Djibouti, Eritrea, Ethiopia and Sudan
• The East Africa Regional Energy Project will be financed through the ADF-15 Regional Public Good window of the African Development Fund, the concessional arm of the African Development Bank Group
• It will develop technical studies for regional solar parks and associated battery storage near regional energy inter-connectors, high-voltage cables that connect the electricity systems of neighbouring countries

The African Development Fund has approved a $5.5 million technical assistance grant to begin the roll-out of the flagship Desert to Power initiative in the Eastern Sahel region countries of Djibouti, Eritrea, Ethiopia and Sudan.

Dubbed the East Africa Regional Energy Project, it will be financed through the ADF-15 Regional Public Good window of the African Development Fund, the concessional arm of the African Development Bank Group.

The project will …

As would be expected, Total rebutted the claims. Its first move was to make public the related project social and environmental studies and issue a statement in which it pledged transparency.

The company admits that; “The projects for the development of the oil and gas resources of the Lake Albert region and the cross-border pipeline are situated in a sensitive social and environmental context that requires special measures for the environment and the rights of the local communities.”

In a follow-up statement, the investors maintained that; “All the partners are committed to implementing these projects in an exemplary manner and taking into highest consideration the biodiversity and environmental stakes as well as the local communities’ rights and within the stringent environmental and social performance standards of the International Finance Corporation.”…

Over the course of the next six years, LEAF is expected to deploy financing options, credit enhancement instruments and technical assistance in partnership with the private sector; including local banks.

As we approach the 2030 deadline of the SDGs, we must unfortunately acknowledge the disturbing truth, we are far from meeting the goal’s sustainable growth targets. The latest Sustainable Development Goal (SDG) 7 tracking report warns that close to 600 million Africans still lack access to electricity and this reality is only worsened by the Covid-19 crisis.

In his comments about the LEAF program, the Bank’s Vice President in charge of Power, Energy, Climate Change and Green Growth, Dr. Kevin Kariuki, notes: “The African Development Bank is delighted to partner with the Green Climate Fund on the Leveraging Energy Access Finance Framework, which will not only accelerate access to electricity based on decentralized renewable energy solutions, hence reducing the respective …

UNCTAD argued that in the fourth quarter of 2021, all major trading economies saw imports and exports rise well above pre-pandemic levels of 2019.  Moreover, the report pointed out that trade in goods increased more strongly in developing countries than in developed ones. 

It is essential to realize that Africa has more to tap into the intra-African trade, standing at around $21.9 billion, according to UNCTAD. 

Further, exports of developing countries were about 30 per cent higher than during the same period in 2020, compared with 15 per cent for wealthier nations. 

The UNCTAD report argued that growth spiked in commodity-exporting regions as commodity prices increased. …

• Top five priorities for the African Union 
• Building Nutrition and Food Security top African Union Agenda
• Africa requires an equitable representation at the United Nations

The Assembly of African Union Heads of State and Government held its 35th Ordinary Session early February this year and listed the continent’s top five priorities. The Assembly meeting saw the handover of the rotating leadership of the Union from H.E. President Antoine Tshisekedi of the Democratic Republic of Congo who was Chairperson in 2021, to President Macky Sall of Senegal.

The Heads of State and Government launched the African Union Theme of the Year 2022 as Year of Nutrition: “Strengthening resilience in nutrition and food security on the African continent: Strengthening agro food systems, health and social protection systems for the acceleration of human, social and economic capital development”.

Five priorities were listed: Resilience to Covid-19 and Africa manufacture of vaccines, action against …

Climate change in Africa costs a lot, and climate extremes hit the region hardest. Between 2014 and 2018, roughly $5 per year, a person was the adaptation funding to each African – standing on less than $5.5 billion per year (World Economic Forum).

It is more than fair to say without financial support, climate change will probably push Africa’s impoverishment to a whole new level, as millions of Africa might be into extreme poverty by 2030.

The latter proves Africa to be at a relatively disadvantageous position as it contributes the least to global emissions and climate change. Yet, it receives minor financial support towards adaption.

READ: COP26 All Talk, No Walk

The previous 26^TH United Nations (UN) Climate Change Conference of the Parties (COP26), dubbed “the world’s best last chance”, provided the global stage with failure.

Despite promising to double funding, high-income countries (and high global emitters) failed …

• World Bank forecast Africa’s economy to grow by 3.6 per cent in 2022
• Circular economy stand to improve job creation and the industrial sector in Africa
• Africa Agenda 2063 could be achieved swiftly by circular economy models

The circular economy is a bankable business model for Africa. It enables the realization of sustainable development in Africa, said African Development Bank’s climate change and green growth department Officer-in-charge AL-Hamndou Dorsouma, according to information from African Development Bank.

Africa’s economy could be revitalized by strategic circular economic models, especially during these recovery times, when Africa is struggling to rebuild its economy hurt by the pandemic.

The circular economy brings an airtight system, solution and framework that utilizes all economic and industrial operations to bring sustainable services and products to the market that maintain the highest value over time – to eliminate waste, reduce energy consumption and increase the durability of products.

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