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Resilient lient grow owth h in n the he fac ace e of of glob obal al an and region ional al he head adwinds winds Drivers of Africa’s growth GDP growth (%) 10 Strong public investment in infrastructure 8 6 Asia Pacific Strong domestic 4 Africa consumer base North America 2 Europe 0 Latin America Burgeoning 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 and the services sector -2 Caribbean -4 -6 Gradual economic diversification 3
Diver Di erse e cou ountr ntry-spe specif ific ic fac actor ors driving ving grow owth 4% Growth picked-up on the back 2% North of improvements in political Africa and economic stability 2014 2015 Five of the ten fastest-growing 6% countries in the world with Lower growth due to depressed 3% West commodity prices as well as to real GDP growth above 7% Africa the impact of the Ebola outbreak are in Africa 2014 2015 Ethiopia 6% Decline in oil and metal prices 4% Central adversely affected growth in Côte d’Ivoire Africa DRC the region 2014 2015 Rwanda 7% Political instability in Burundi 6% East and South Sudan weighed down Africa Tanzania on growth in the region 2014 2015 Growth impacted by acute 3% Southern 2% shortages of power, hostile Africa weather conditions and low commodity prices 2014 2015 4
Mac acroeco oecono nomic ic env nvir iron onment ent remains ains relatively atively stab able Fiscal and monetary policies have Current Account Balance (% GDP) Low commodity prices depressed proven prudent, keeping inflation revenues, contributing to the widening of generally stable aided by low fuel prices 2013 2014 2015 both fiscal and current accounts 2 in importing countries 0 -2 Inflation (%) Fiscal Balance excluding grants (% GDP) -4 2013 2014 2015 -6 10 0 -8 8 -2 -10 Oil-Exporting Oil-Importing Africa -4 6 -6 4 -8 2 -10 The strengthening of the US dollar also put Oil-Exporting Oil-Importing Africa additional pressure on the exchange rate of 0 Oil-Exporting Oil-Importing Africa 2013 2014 2015 a number of countries 5
Africa’s growth should remain favorable, in spite of challenges Africa has shown its resilience and should continue to maintain its position as the second fastest growing region of the world 4.5% 2017 3.7% 2016 3.6% 2015 6
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At the center of Africa’s transformation 8
High h 5s - Scaling aling up implement ementat ation ion of of the he Ten n Year ar St Strat ategy gy Improve the quality of life for the people of Africa Light up and power Africa Develop innovative flagship programs to open up Unlock the continent’s opportunities for youth energy potential in employment, improve access order to drive much- to basic services and create needed industrialization economic opportunities for the extreme poor Integrate Africa Feed Africa Industrialize Africa Transform agriculture to Address barriers, create Lead other partners in the increase productivity, lower regional value chains and process of industrializing food prices, enhance food leverage complementarities Africa and developing the security, revive rural areas in order to tap the private sector to create and create jobs for Africans continent’s huge market wealth from natural assets potential 9
Light ht up an and pow ower Afr frica ca Energy in Africa, a grey picture To provide universal energy Over 640 million Africans access by 2025 lack access to electricity Hydropower • Our provides about a 162 GW electricity generation fifth of current ambition • 130 million on-grid capacity but not even a tenth of its total connections Per capita use of electricity • 75 million off-grid potential is harnessed Africa 613 kWh; USA 13,000 connections kWh; Europe over 6,500 kWh • 150 million households with access to clean cooking solutions Insufficient energy access Partnership-driven effort Work with partners to develop Causes hundreds of thousands of deaths Africa’s poorest pay a framework that takes into Power shortages annually through the use of wood- 60 – 80 times more account different energy estimated to cost burning stoves per unit in northern sources, geographic conditions, 2% GDP annually, Undermines hospital and emergency Nigeria than regulation and pricing, undermining services operations residents of technologies and distribution economic growth, Compromises educational attainment New York mechanisms employment creation Drives up cost of doing business due to and London and investment the use of generators AfDB to invest USD 12 billion and leverage about USD 50 billion over 5 years 10
Feed d Afr frica ca Agriculture employs over 60% of the African workforce and accounts Inadequate Poor infrastructure for 33% of the continent’s GDP, yet Africa is the world’s most mechanization food-insecure region Heavy dependence on food imports (over USD 35 billion) Limited access to credit, fertilizers and Insecure land tenure More than 1 in 4 Africans is malnourished technology Droughts, water scarcity and famine are well-known and real How is AfDB tackling these challenges? 60% of arable land in the world not yet put to production is in Africa “Feed Africa initiative” will deploy financial resources to enable African countries to seize the opportunity to promote agriculture related industrialization Africa’s potential for agricultural production is enormous Accelerate support for massive agricultural transformation across Africa to: Adequately Lift Restore feed 150 Our 100 million productivity million Goals: people out to 190 million additional of poverty hectares people AfDB’s investment to quadruple from a current annual average of USD 612 million to about USD 2.4 billion 11
Ind ndustrialize rialize Afr frica ca African economies are largely dependent on sectors with low added value Our ambition • Africa’s share of global manufacturing at around 1.9% • 62% of imports and 19% of exports are manufactured • Move Africa to the top of the value chain • Increase industrial GDP by 130% to USD 1.55 Commodity dependence Industry GDP per capita trillion by 2025 • Develop efficient industry clusters (% government revenue) • Provide policy advisory services, technical North America East Asia assistance to governments and funding to key Libya USD 11,500 USD 3,400 98% PPP projects • Increase investment/financing to lend to Equatorial Guinea small and medium enterprises (SMEs) and 85% increase their capacity Angola • Improve access to market finance for African 80% enterprises • Catalyze funding into infrastructure and Africa industrial projects Nigeria USD 700 • Link up African enterprises and major projects 74% with potential partners and investors We cannot do it alone! Low value-added activities lead to low GDP/capita AfDB to invest about USD 5.6 billion per year 12
Integr grat ate e Africa ca African countries are losing out on billions of dollars in potential trade every year because Policy Regulatory of fragmented regional markets and lack of cross-border production networks that can Regional integration challenges: spur economic dynamism The Bank Group focus Institutional Infrastructural Facilitating Boosting movement of Building regional Intra-African trade at 15%, lowest globally compared to intra-African infrastructure people across trade and borders investment 70% in the EU 60% in Asia Our ambition…..to lead several continent-wide initiatives targeting both “hard” and “soft” infrastructure • Continental Free Trade Area – to address Africa’s low internal and external trade performances • Comprehensive Africa Agriculture Development Program • Program for Infrastructure Development in Africa – designed to develop 54% in the a vision and strategic framework for the development of regional and North America continental infrastructure Free Trade Area • Sahel and the Drought Resilience and Sustainable Livelihoods Program in the Horn of Africa AfDB to invest about USD 3.5 billion per year from 2016 to develop high quality regional infrastructure 13
Improve ve the he qual ality ity of of life e for or the he people ople of of Afr frica ca Our vision Build critical skills Widespread inclusive growth, allowing all Africans across different countries to have access to • Basic services (education, health care, water and sanitation) • Productive employment and entrepreneurship opportunities Catalytic approach will turn Improve access Strengthen demographic to water and Ensuring that Africa’s demographic growth yields significant health systems growth into sanitation economic dividends and contributes to inclusive growth will economic dividends Create 80 million Contribute to halting Create jobs Offer a new hope for the migration flows millions of jobs younger generations draining African youth 14
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