Resourcing the African Development Bank for effective delivery A - PowerPoint PPT Presentation

Resourcing the African Development Bank for effective delivery A North Africa Regional Perspective

A NORTH AFRICA REGIONAL PERSPECTIVE THE AFDB’S VISION FOR NORTH AFRICA’S STRUCTURAL TRANSFORMATION POTENTIAL ENGINE OF GROWTH KEY DEVELOPMENT ISSUES • Strategic role in Africa’s transformation • Unemployment (youth & female): 31% • 187 million inhabitants (14% of the continent) • Poverty & inequality • 1/3 of the continent's GDP • Economic transformation & integration • 1 st average Human Development Index • Food vulnerability & water scarcity • 5/6 countries are MICs COUNTRY RESPONSES REQUIRE AFDB’S OVERALL STRATEGIC RESPONSE GROWING RESOURCES Budget deficits to be filled Major investment plans across the region • Social inclusion and employment creation (youth) • Moving out of the MIC development trap • Catalyst role in project finance • Mobilize Climate Finance SCAPP PAI NMCE PSD Economic Vision PMV Tunisie Recovery 2030 • Integration (Regional, with Africa, with the World) 2020 Strategy Growing Middle Class - Growing Opportunities for the Private Sector African Development Bank Resourcing the AfDB for effective delivery 2

A NORTH AFRICA REGIONAL PERSPECTIVE NORTH AFRICA STRONGLY BENEFITS FROM GCI -6 RESOURCES x 2 $ 30 African Development Bank Historical engagement billion Portfolio has doubled in size and $ 15 value billion $2.9 billion 60.6% of total 2016 disbursement 2010 2017 $4.5 billion At competitive pricing Leverage on North Africa $0.7 billion 2 250 2 000 $8.3 billion 1 750 1 500 X 6 X 6 X 6 X 6 X 39 X 39 X 25 X 25 X 49 X 49 1 250 1 000 $7.3 billion 750 500 250 $23.7 billion 0 Founding members of the Bank Algeria Egypt Libya Mauritania Morocco Tunisia 17.58% of the Bank capital GCI-VI Paid-up AfDB Approvals 2011-2017 3 African Development Bank Resourcing the AfDB for effective delivery

A NORTH AFRICA REGIONAL PERSPECTIVE WE HAVE IMPROVED OUR PROCESSES Accelerated development Establishment of a regional ressource center in Tunis Time from concept note Time from Board approval to approval (months) to Signatures 3 Country Offices – 1 Liaison Office 120 staff -2,1 Moving closer to clients and needs -0,6 5.4 8.4 7.8 3.3 We help you to design the most impactful 2016 2017 operations 2016 2017 Non-performing Disbursement ESW ADOA operations performance +18% Donor Development Country & Regional HIGH 5’S -1,5 +14% Strategies Operations Impact Coordination 85% 67% 3% Dialogue 67% 53% Quality 1.5% Authorities At Entry Civil Society Private Sector 2016 2017 2016 2017 2016 2017 Independant Evaluation EGYPT MOROCCO African Development Bank Resourcing the AfDB for effective delivery 4

A NORTH AFRICA REGIONAL PERSPECTIVE BEYOND THE FINANCIAL IMPACT: WE ARE A SOLUTION BANK AND A TRUSTED PARTNER Power Feed Industrialize Integrate Quality of life Ouarzazate & Midelt Green Morocco Plan Competitiveness reform Nador port Access to drinking water (Morocco) program (Algeria) & sanitation (Morocco) National drainage program (across the region) Suez, Ain Sokhna, (Egypt) SNIM (Mauritania) Abu Quir (Egypt) Road Development Integrated agricultural Health reform program Program (Tunisia) Hasdrubal (Tunisia) support program (Tunisia) (Morocco) 1 2 3 4 5 Scale up the impact of the High 5 Complementary instruments Mobilize public & private resources to the countries Support to move away from (x4 : 40 billion USD leveraged) Natural Resources Dependency Spearhead innovation External and internal Shocks Mitigation (risk taking & improve financial viability) Sustain Reforms & development efforts over time Support Regional integration African Development Bank Resourcing the AfDB for effective delivery 5

A NORTH AFRICA REGIONAL PERSPECTIVE WE IMPACT NORTH AFRICAN ECONOMIC AND SOCIAL EMERGENCE • Service water to 1 million inhabitants • Modernization of 13,000 km of Mauritania Tunisia roads in 20 years in Nouakchott • Access to water for 350,000 citizens since 2014 • Impacted 700,000 inhabitantsthrough improved agriculture since 2008 • 12.7 million rural inhabitants • Support to the Libyan Investment Morocco Connected to the grid Libya Authority • Compulsory Medical coverage • Capacity building for 2000 civil benefitting 22 million people since servants 2010 • Secured access to water & sanitation for 15 million people since 1990s • Enhanced business environment • 7 million people connected to the Algeria Egypt since 2016 Grid • Improved Governance in the Energy • 81,600 sub-loans and creation of Sector since 2016 83,000 jobs in rural area since 2012 African Development Bank Resourcing the AfDB for effective delivery 6

A NORTH AFRICA REGIONAL PERSPECTIVE LEVERAGE BEYOND PUBLIC INVESTMENTS: PRIVATE SECTOR DEVELOPMENT Private sector development through Impacts Non sovereign operations SNIM 2 nd largest exporter of iron ore 6,000 direct jobs $ 385 M. injected in the economy OCP 20,000 direct jobs Rock extraction x2 and fertilizer production x3 by 2025 Increased export to Sub-Saharan Africa Egyptian Refining Company 8,000 direct jobs USD 88 million/year of corporate taxes import-substitution worth USD 272.2 million Critical Industrial Project Finance Private equity funds Guarantees LOC & Private Equity Fund to Support SME $ 207 million - Multiplier Effect: 5 Boost Africa – Souk Atanmia Example: Icosnet (Algeria) turnover $ 201 000 (2008) - $ 8,5 million (2011) Africa Investment Forum & Africa 50 African Development Bank Resourcing the AfDB for effective delivery 7

A NORTH AFRICA REGIONAL PERSPECTIVE LEVERAGE BEYOND PUBLIC INVESTMENTS: ADVISORY SUPPORT Stepping up Impacts the knowledge agenda Industrial Policies (2017) External finance mobilization (2016) Innovative Youth Entrepreneurship (2016) Guided the Africa Portfolio of the Libyan Investment Authority (2013) Growth & E mployment Study (2017) PPP (2016) Growth Diagnostic : $ 450 million Mobilized MCC (2016) Tariffs barriers with Africa (2017) Poverty Levels with INS (2011) To guide reforms & investment Social Transfers (2012-2017) To mobilize resources Growth Diagnostic : $ 1 billion US Guarantees To showcase knowhow & opportunities African Development Bank Resourcing the AfDB for effective delivery 8

A NORTH AFRICA REGIONAL PERSPECTIVE THE FINANCIAL CASE FOR A CAPITAL INCREASE IS STRONG We have translated with authorities into Stratégie de croissance accélérée et de A robust pipeline of operations (highlights) prospérité partagée (SCAPP) 2016-2030 Economic transformation Plan d’Accélération Industrielle Energy Sector/Mobilization CC resources Plan Maroc Vert Informal Settlements & youth employment Irrigation Improvement & Modernization Ambitious Nouveau modèle de croissance économique transfor- Post conflict reconstruction/Bringing mational Continent experience agendas Plan stratégique de développement Support to agricultural transformation Economic Recovery Strategy Agricultural value chain support program SME export to SSA Fertizer production Vision 2030 Support to entrepreuneurship $ 10 billion 2018-2020 pipeline Important resources needs at regional level Immediate head room constraint $ 40-50 billion per annum African Development Bank Resourcing the AfDB for effective delivery 9

A NORTH AFRICA REGIONAL PERSPECTIVE A GCI WILL ALSO SUPPORT NORTH AFRICA’S SOUTH-SOUTH COOPERATION New dynamics Regional engines of growth Private sector increasingly exporting/ investing in SSA • North African economies are joining larger regional communities (COMESA, ECOWAS,…) • Morocco became first foreign investor in cote d’Ivoire in 2016 • Several technical assistance to support this agenda: Sonelgaz (Algeria), Maroc Export (Morocco), COMESA (Egypt) • North Africa development More opportunities cooperation agenda for North Africa SMEs African Development Bank resources Increasing access of ADF countries to ADB window to finance ADF replenishment 552 million since 2011 1,64 billion allocated since 2011: More opportunities for North Africa SMEs through public procurement Spillovers of African Development Bank projects on ADF countries Non Sovereign operations in ADF countries Morocco – Renewable Energy Agency Assisting Burkina Faso / ONEE Opportunity for the North African Private sector to develop its Algeria – Powering Africa activities on the rest of the continent (ex: Afric Invest ; Citadel Capital) African Development Bank Resourcing the AfDB for effective delivery 10

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