Browsing: African Development Bank

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.…

Climate finance by Multilateral Development Banks (MDBs) for low-income and middle-income economies hit a new record of $60.7 billion in 2022. The amount was 46 per cent higher than the 2019 levels, a new joint report by the lenders shows.

In terms of usage, $38.0 billion, or 63 per cent, went into projects helping mitigate the rising threat of climate change. Another $22.7 billion, or 37 per cent, went into supporting climate change adaptation initiatives. Overall, the portfolio of private finance mobilised in the period stood at $16.9 billion, the report said.…

• Youth leaders, entrepreneurs and policymakers presented the Africa Youth Climate Assembly Declaration to Kenya’s President William Ruto, and African Development Bank Group President Akinwumi Adesina.
• The declaration advocates for the accelerated establishment of a Global Green Bank and a New Global Financial Pact, aiming to prioritise young people and their interests in climate financing. 
• During the Africa Youth Climate Assembly, a wide range of issues emerged including youth access to finance, Africa’s energy transition, the plight of millions displaced owing to the impacts of climate change and mobilisation of resources for sustainable development.

As the Africa Climate Summit draws to a close, a key highlight from the three-day summit is that Africa’s youth need to be more involved in the climate change conversation. 

This, as youth leaders, entrepreneurs and policymakers presented the Africa Youth Climate Assembly Declaration to Kenya’s President, William Ruto, and African Development Bank Group President Akinwumi Adesina.…

• Fresh financing will bolster Ethiopia’s progress in achieving wheat self-sufficiency.
• Data shows Ethiopia’s wheat productivity has struggled to match the demands of a rising population, urbanization, and economic expansion over the past decade.
• Statistics show that Ethiopia’s annual wheat imports average roughly $600 million.

Ethiopia, the second-largest wheat producer in sub-Saharan Africa, has received a significant boost from the African Development Bank (AfDB) in the form of an $84.3 million grant aimed at propelling the nation’s wheat production to new heights.

The grant, a collaborative effort between the AfDB, the Government of the Netherlands, agribusiness firm OCP Africa, and the Global Center on Adaptation, holds the promise of not only enhancing wheat production but also bolstering exports.

CREW initiative in Ethiopia’s wheat production

As wheat gains prominence as a major crop cultivated across the vast expanse of African plains, Ethiopia strategically positions itself as a pivotal player in the sub-sector.…

• The Negomano-Roma Road was financed by the African Development Bank.
• President Nyusi finds the road reminiscent of the two nations’ Pan-Africanism aspirations.
• Road will facilitate residents with transportation services for health, education and local economic needs.

Mozambique President Filipe Nyusi has commissioned a critical cross-border link road, Negomano-Roma connection that was financed by the African Development Bank.

The road, which stands to be a key link for intensifying regional integration with Tanzania, stretches from the nation’s northern province. At the moment, the road is facilitating residents with decent transportation services for health, education and local economic needs.

Mozambique-Tanzania Pan-Africanism aspirations

Constructed under 42 months, and with the inclusion of 417 local workers under the framework of promotion and inclusion of local content, President Nyusi finds the road reminiscent of the two nations’ Pan-Africanism aspirations.

“The road is a great gain for the viability and maximization of regional integration. It is …

• AfDB is eyeing $2.3 trillion in sovereign wealth funds, strategic investment funds, pensions, and life insurance assets.
• The AfDB wants to unlock the potential of various wealth funds in Africa.
• Lender is now seeking set up of the African Sovereign Wealth Funds secretariat.

The African Development Bank (AfDB) is calling for unity to drive investments by mobilizing capital in Africa currently held in various funds and estimated at estimated at $2.3 trillion. This massive capital in Africa is in sovereign wealth funds, strategic investment funds, pensions, and life insurance assets.

Speaking at the Second Annual Meeting of the Africa Sovereign Investors Forum (ASIF), AFDB Vice President for Private Sector, Infrastructure, and Industrialisation Solomon Quaynor said the Bank is committed to supporting the establishment and operations of the African Sovereign Wealth Funds secretariat.

ASIF was launched in June 2022 by a group of 10 African sovereign wealth funds with a goal …

• In 2021, 76 percent of adults had an account at a bank or regulated institution
• Financing will enable African nations to expand portfolio of digital financial solutions and initiatives
• The facility will be housed and managed by the African Development Bank,

India will contribute $2 million to the Africa Digital Financial Inclusion Facility (ADFI), in an effort to break the barrier to growth and spur uptake of digital financial solutions.

The facility will be housed and managed by the African Development Bank. It will mainly focus on accelerating financial inclusion in Africa, India said.

India is recognised globally for the success of its digital public payments system. The country’s collaboration with ADFI enables the facility to learn from best practices and help scale up initiative. The program aims to meet the needs of financially excluded and underserved people in Africa.

Africa yet to fully benefit from inclusion

Despite the growing …

• Civil unrest, electricity crisis and natural disasters in South Africa deal a body blow to the regional economy growth prospects.
• The 2023 Southern Africa Economic Outlook indicates that the Southern Africa region’s GDP growth barely reached 2.7 percent. This level is much lower than global and African averages of 3.4 percent and 3.8 percent respectively.
• According to the African Development Bank, Southern Africa region is now lagging behind its peers across the continent. 

The Southern Africa zone has continued to experience a slowdown in economic growth in the past year largely driven by increasing challenges in regional powerhouse South Africa. 

The south-most country on the continent has seen civil unrest, electricity crisis and natural  disasters worsen the region’s economic slowdown. Neighbouring Zimbabwe, Zambia, Malawi, Madagascar, and São Tomé and Príncipe, have also experienced intense adverse weather events.

According to a report by the African Development Bank, climate change-related crisis has …

• DRC’s economy is rising with real GDP growth at 8.9 percent in 2022 and projected to 6.8 percent in 2023.
• Macroeconomic imbalances have, however, emerged piling inflationary pressures.
• The roiling conflict in the East and upcoming elections complicate macroeconomic management.

The International Monetary Fund (IMF) has outlined a number of tough measures for war-tone DRC as it seeks $200 million financing. The funds are part of the country’s Special Drawing Rights (SDR), the supplementary forex reserves maintained by the IMF. They are units of account for the IMF, and not a currency per se. What’s more, they represent a claim to currency held by IMF member countries and DR Congo can access about $200 million.

An IMF team led by Mercedes Vera Martin met with the authorities in Kinshasa between April 19–May 3. This was on the fourth review of the three-year arrangement under DRC’s Extended Credit Facility (ECF).

Macroeconomic