Browsing: African Development Bank

• Africa Fertiliser Financing Mechanism will avail 8000 tons of fertiliser.
• 5.533 million Kenyan farmers are registered for the government’s subsidised fertiliser programme.
• African Development Bank granted Kenya $67 million in 2022-2023 through its African Emergency Food Production Facility.

The Africa Fertiliser Financing Mechanism has launched a project to help deliver 8,000 tons of fertilisers to 100,000 smallholder farmers in Kenya to boost harvests and incomes.

Through its Fertiliser Financing for Sustainable Agriculture Management Project, the Mechanism will provide a $2 million partial trade credit guarantee and a grant of $219,000 to Apollo Agriculture Limited, a Kenyan corporation, to facilitate the company’s fertiliser sales.

The Norwegian Agency for Development Cooperation, through a contribution of $10.15 million to the Africa Fertiliser Financing Mechanism, is also supporting the project.

Representatives of the African Development Bank, which manages the Mechanism, Apollo Agriculture and the Kenyan and Norwegian governments attended the launch event in Nairobi.…

• Energy experts warn that the shortages that plague Africa’s electricity access in 2024 will have a significant drain on the continent’s economic growth.
• World Bank will connect 300 million Africans to electricity with a $35 billion plan.
• Africa is poised to adapt to transformative advancements that will reshape the landscape of energy access, storage, and connectivity across the continent.

Africa remains the most energy-deficient continent, with approximately 75 per cent of its population lacking access to electricity. As of 2021, 43 per cent of Africans, roughly 600 million people, were without electricity access, with 590 million in sub-Saharan Africa. Consequently, nearly half of the continent’s population is unable to use basic electrical appliances.

Despite improvements in electricity access in sub-Saharan Africa, where 49.4 per cent of the population had access in 2022, up from 33 per cent in 2010, electricity consumption has not seen a corresponding increase. The persistent lack …

• AfDB projects in Egypt and Côte d’Ivoire win at the 2024 Bonds, Loans & ESG Capital Markets Africa Awards.
• These projects showcase innovative financing, like Egypt’s Panda Bond and Côte d’Ivoire’s Sustainable Loan, promoting sustainable development in Africa.
• The awards highlight the significance of ESG criteria, demonstrating the Bank’s role in advancing economic sustainability and growth on the continent.

The African Development Bank has been at the forefront of driving significant financial initiatives across Africa, as demonstrated by its involvement in groundbreaking projects in Egypt and Côte d’Ivoire.  The prestigious 2024 Bonds, Loans, and ESG Capital Markets Africa Awards recently honored these projects, highlighting the innovative approach and impact of the bank’s efforts.

Strategic Achievements Through AfDB Projects

Two African Development Bank-supported ventures have garnered top awards in notable recognition of excellence and innovation. Egypt’s groundbreaking RMB3.5bn ($478.7 million) Sustainability Panda Bond issuance clinched the Sovereign, Supra, and Agency …

• The African Development Bank has donated $20 million to Senegal to enhance food security and support small producers post-COVID through the PRESAN-PC project.
• Infrastructure development, including agricultural boreholes and solar-powered systems, aims to increase farm production and resilience to climate change.
• The project benefits vulnerable women and youth, includes contributions from various sources, and impacts 31,000 households across multiple Senegalese regions.

In an ambitious move to ensure food security and enhance the livelihoods of its small producers, Senegal has received a significant financial boost. On a notable day in March 2024, the African Development Bank Group allocated a $20 million donation to the nation for the Post-Covid Food and Nutrition Security Enhancement Project (PRESAN-PC).

The initiative aims to transform Senegal’s agricultural landscape, benefiting vulnerable women and young people through increased farm production and income.

African Development Bank’s $20 million donation to Senegal 

The African Development Bank’s generous donation comes from …

• AFRODAD and SADC have joined hands to boost Africa’s debt sustainability by cushioning highly indebted countries.
• Between 2004 and 2018, 30 African countries signed natural resource-backed loans worth $66 billion.
• China has emerged as a critical player in debt owed by African States, with an increasing percentage of debt now in resource-backed loans.

Boosting Africa’s debt sustainability

The African Forum and Network on Debt and Development (AFRODAD) has entered into a debt sustainability pact with the Southern African Development Community Parliamentary Forum to cushion governments from debt distress.

The move aimed to bolster financial stability and debt management strategies across Africa, with the continent’s total external debt hitting $1.13 trillion in October last year.

Highly indebted African countries continuously face stark trade-offs between servicing expensive debt, supporting high and growing development needs, and stabilising domestic currencies.

Government debt has risen in at least 40 African countries over the past decade. …

• With 65% of the global uncultivated arable land located in Africa, AfDB says there is potential for the continent to feed itself and the rest of the world.
• The lender is now committing to focus on securing long-term financing for research activities and enhancing researcher CGIAR’s effectiveness across the continent.
• AfDB and CGIAR also anticipate engaging in capacity building for country-based national agricultural research services partners, young scientists, extension workers, and private-sector seed growers to produce certified seeds.

The African Development Bank Group (AfDB) and the Consortium of International Agricultural Research Centres (CGIAR) have committed to enhancing food security through improved production to offer better nutrition for Africa’s growing population.

This commitment involves strengthened collaboration between the parties, leveraging the robust arable land the continent possesses. “With 65 percent of the global uncultivated arable land, we believe that the continent can feed itself and the rest of the world,” AfDB …

• An ongoing diplomatic row in Addis Ababa has prompted the AfDB to withdraw its international expatriates from Ethiopia.
• At the same time, fears of a possible shift of the African Union’s (AU) headquarters from Addis Ababa to Nairobi have been voiced in response to the worsening political situation and growing violence in Ethiopia.
• The current scenario in Ethiopia presents significant obstacles for international organizations that operate within the country. 

Circumstances surrounding the AfDB’s withdrawal from Ethiopia

A roiling diplomatic crisis pitting the African Development Bank (AfDB) against authorities in Addis Ababa—the seat of the African Union—has prompted the pan-African lender to relocate its international personnel from Ethiopia in a huff. This hasty decision announced on Wednesday comes months after Ethiopian security forces reportedly mistreated two AfDB staff members in Addis Ababa on October 31, 2023.

Under the direction of a newly designated Officer-in-Charge, the Bank’s Ethiopian office will continue to …

• The AfDB and Prince Trust International have signed a deal to address youth unemployment while scaling up human capital and entrepreneurship.
• The MOU commits both institutions to collaborate to identify and develop partnership opportunities to mainstream employability skills for technical and vocational education and training (TVET) projects funded by the Bank.
• The Prince’s Trust will participate in preparing, designing, implementing and monitoring TVET and skills development projects.

Youth unemployment, human capital, and entrepreneurship opportunities in the continent are set to be addressed through an agreement signed by the African Development Bank (AfDB) and Prince’s Trust International.

The MOU commits both institutions to work together to identify and develop partnership opportunities to mainstream employability skills for technical and vocational education and training (TVET) projects funded by the Bank in countries of common interest.

Skills development to tackle youth unemployment

The Prince’s Trust will participate in preparing, designing, implementing and …

• African countries continue to grapple with substantial capacity gaps in macroeconomic modeling, a new report by AfDB shows.
• The findings underscore the need for further enhancement in macroeconomic modeling capabilities across African economies.
• The report offers insights into the models and modeling capacities present in roughly 31 out of 54 African states.

Despite notable progress in forecasting, analysis, and effective policy management, a recent study by the African Development Bank (AfDB) Group reveals that African countries continue to grapple with substantial capacity gaps in macroeconomic modeling.

Titled “Benchmark Macroeconomic Models for Effective Policy Management in Africa,” the report was unveiled in Addis Ababa, Ethiopian, on 18 November. The launch took place alongside the African Economic Conference 2023 and was conducted by the AfDB Group. The findings underscore the need for further enhancement in macroeconomic modeling capabilities across African nations to bolster their ability to formulate and execute effective policies.

Role

The African Development Bank (AfDB) has initiated a five-year plan to stimulate growth in South Africa, the continent’s most advanced economy. Dubbed the Country Strategy Paper (CSP) 2023-2028, AfDB has outlined two main lines of action. The Bank aims to enhance governance while deploying strategies to revamp the private sector.
Concerning governance, CSP 2023-2028 will support the South African government in its efforts to address persistent structural challenges. This approach aims to promote industrialisation and establish a faster, more inclusive growth trajectory to combat poverty.…