Busan bulletin 24 05 2018 English Issue 04

@AfDB_Group #AfDBAM2018 afdb.org/am AFRICAN DEVELOPMENT BANK GROUP ANNUAL MEETINGS BULLETIN - MAY 24, 2018

New technologies can provide leapfrogging opportunities says Korean President Moon Jae-in orean President Moon Jaein has committed to sharing Korea’s technological and industrial experience with Africa and to help it compete in the 4th Industrial Revolution.

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His message came at the opening ceremony of the Annual Meetings on Wednesday, May 23. “Africa is no longer the sleeping lion. Korea is happy to share its industrial experience with the continent. The theme of the Annual Meetings is appropriate for the industrial transformation of the continent, and in facilitating the sharing of experiences with Korea and other partners.”

IN THIS EDITION

African Development Bank President Akinwumi Adesina thanked the Government of Korea for hosting the Bank’s Annual Meetings.

He recalled Korea’s transformation from a poor nation 60 years ago to the 11th largest economy in the world, noting the contribution of industrialization to its transformation.

“Today, Samsung and LG television and phones dominate globally, while Korean cars are everywhere. Korea was deliberate and consistent in its industrial drive like China and Japan. Africa must learn from Korea’s industrialization and the equally remarkable experiences of China, Japan, and other parts of the world,” he said.

“Africa must fast-track industrialization. That is why the African Development Bank plans to invest US $35 billion over the next 10 years in its focus on industrialization. The Bank’s industrialization strategy hopes to help Africa raise its industrial GDP from a little over US $700 billion today to over US $1.72 trillion by 2030. This will allow Africa’s GDP to rise to over US $5.6 trillion, while moving GDP per capita to over US $3,350.

“The formula for the wealth of nations is clear: rich nations add value to all they produce; poor nations simply export raw materials.

Africa needs to industrialize and

add value to everything that it produces – from agriculture, to minerals, to oil, gas and metals. Africa needs to move from the bottom to the top of the global value chains.”

Young Africans can transform the continent given the chance. He described the experience of Clarisse Iribagiza, a young Rwandan woman who earned a master’s in Information and Communications

Editorial: Lessons from Korea for Africa p.3 Guest of the Day: Hassatou Diop N’Sele, Acting Vice-President, Finance p.6 Meet our social media influencers p.8

All videos: j.mp/2IF6Pq4

elegates today called for firm action on women’s empowerment and gender equality to ensure equal opportunities for men and women in the industrialization process across Africa and beyond.

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Discover Busan: Explore traditional Korea p.12 Watch the Governors’formal statements: j.mp/2IDTEFU

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To be continued on p. 3

Gender equality in industrialization on the menu at breakfast session

Find the photos on Flickr: j.mp/2IF46wH

Watch the interviews with Governors: j.mp/2IErqut

Technology from the Kigali Institute of Science and Technology, a program supported by the Bank. With a modest contribution from the Government of Rwanda, Clarisse launched an ICT business that she recently sold that for US $10 million. She is now a member of the Bank’s Presidential Youth Advisory Council of the Bank.

Speaking at a breakfast session on gender and industrialization on the sidelines of the 2018 Annual Meetings of the African Development Bank Group in Busan, Korea, participants called for inclusive industrialization where no one is left behind.

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“I acknowledge that despite African governments’ efforts to advance gender equality in all aspects of development, women are still left behind in some economic opportunities. There is a need to act and show commitment to bridge this gap,” said Jennifer Blanke, Vice-President for Agriculture, Human and Social Development at the African Development Bank Group.

To be continued on p. 3

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Climbing up the industrial development ladder: Korea’s lessons for Africa Editorial

Can African countries emulate Korea?

The question is particularly relevant as the African Development Bank’s 2018 Annual Meetings take place in Busan.

African countries have recorded impressive growth over the past decade but have done little to industrialize.

Globalization has opened the world market to intense competition, making trade restrictions and protectionist policies difficult to sustain.

Pierre Guislain, Vice-President, Private Sector, Infrastructure and Industrialization

agro-industries. They could also reduce the continent’s food import bill, which is expected to rise to over US $110 billion by 2025 from US $39 billion in 2016.

The Ghanaian-based company Blue Skies is one example of realized potential. It had only about 35 workers in 1999 whereas today, it employs over 3,000 people and is one of the largest suppliers of cut fresh fruit to European markets. These potentials need to be scaled up.

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The African Continental Free Trade Area, adopted in Kigali in March 2018, must be effectively implemented. All countries must ratify it. Effective regional integration will be key to successfully implementing most countries’ industrial and trade policies.

Africa cannot industrialize without power, roads, rail and ICT networks.

Infrastructure is needed to reduce production costs for downstream industries. Korea’s experience shows that industrializing is a long-term process that requires robust reforms and measures on multiple fronts, perseverance, and discipline.

Korea’s economic turnaround was also fueled by a business environment made attractive to international investors, and by policies that incentivized investment in innovation.

Opportunities abound for greater local value addition in agricultural value chains.

Agriculture’s share in employment was about 55% in 2010-2012 but only contributed 15% to GDP. There is a window of opportunity for Africa to drive

African countries must claim their place in global economic production and pursue policies that harness their vast natural resources to spur local value addition in producing goods and services.

xport-oriented policy reforms that opened Korea to foreign markets were key to its structural transformation. Today, Korea is among the top 10 global exporters.

New technologies continued from p. 1

To unlock Africa’s potential through investment, the Bank has created the Africa Investment Forum, a transactional platform to leverage global pension funds and sovereign wealth funds and other institutional investors to significantly invest in Africa. This new investment marketplace will take place on November 7-9, 2018 in Johannesburg, South Africa.

Dong Yeon Kim, Deputy Prime Minister and Minister of Strategy and Finance of the Republic of Korea, said a new approach was urgently needed. He referred to Uncle Tom’s Cabin, a 19th-century American novel written by Harriet Beecher

Stowe that envisioned a promising future for Africa.

“Harriet Stowe was right. Very surprisingly, we now witness strong evidence of Africa flourishing, just as she predicted.

Growth in the region over the past 20 years was 3% higher than the previous period, and the absolute poverty ratio decreased to two thirds of what it was two decades ago.”

Kim stressed the need for innovative industrialization to translate Africa’s potential into economic prosperity.

“Industrialization policies should take into account the unique

conditions of each country. New technologies can provide leapfrogging opportunities by speeding up the industrialization process and creating new value.”

Smart infrastructure, he said, presents a promising area for Korea’s contribution.

“Smart infrastructure can provide a new solution to Africa’s shortage in roads, airports and harbours. It allows optimal use of resources and can even replace traditional infrastructure.

Africa is already producing substantial outcomes in this area. Going forward, Korea is strongly committed to share its rich expertise and experience as Africa’s close partner.”

Pro verb

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The shortest distance between two people is a smile – Kenya

Gender equality continued from p. 1 She called on global economies and policy-makers to better position gender in the social, economic and political spheres.

“We should come up with a strategy that promotes female entrepreneurship and the creation of jobs for women, particularly in male workplace-dominated regions. Partnership among all stakeholders is key to achieving this goal,” Blanke emphasized.

Maria Flachsbath, Parliamentary State Secretary at the German Federal Ministry for Economic Cooperation and Development, said that when women’s economic rights

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“We should act together to ensure that gender equality is achieved in regions where it is still too slow and uneven.

The key goal is to ensure inclusive industrialization of both men and women, in order to guarantee a good living environment for all,” Flachsbath said.

Delegates advocated greater investment in girls’ education and vocational training for industrialization to harness women’s potential in the economy.

“There is no job women cannot do,” said Andrew Clark, Director, Economic Growth and International Financial Institutions, Global Affairs Canada. “We must recognize the importance of gender equality in industrialization, particularly if we are to build strong and dynamic economies.”

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Executive Editor Dr Victor Oladokun Editors Mina Mammeri, Jennifer Patterson, Faïza Ghozali Production Coordinators Chawki Chahed, Solange Kamuanga-Tossou Contributors (in alphabetical order): Seidik Abba, Kennedy Abwao, Cecilia Amaral, Emeka Anuforo, Yuna Choi, Andie Davis, Deborah Glassman, Saori Kodama, Muyiwa Moyela, Ivan Mugisha,

Olivia Ndong-Obiang, Liam Neumann, Felix Njoku, Hyun Young Ryu, Stephen Yeboah Photo Guy-Roland Tayoro, Thierry Gohore, Florentin Nando Digital version Simon Adjatan, Christiane Moulo Design and Layout Yattien-Amiguet L., Justin Kabasele, Guy-Ange Gnabro, Phillipe Mutombo Luhata, Selom Dossou-Yovo © African Development Bank/PCER, May 2018

Busan Bulletin Team

Participants asserted that gender equality is not only a fundamental human right, but also enables faster economic growth, shared prosperity and sustainable development.

and participation are hindered, women become poor citizens.

e Da y

Daily News

High-Level Panel calls for risk guarantees, research and policy coherence to spur industrialization Korean police on the Annual Meetings beat, ever ready with a smile.

Isabel Riano, Canada’s representative on the Bank’s Board of Governors.

African countries require access to capital, proper industrial policies and research and development to bridge the industrialization gap with the rest of the world, leaders of regional and international financial institutions attending the African Development Bank 2018 Annual Meetings said Wednesday in Busan.

“Industrialization must be one that lifts people out of poverty,” African Development Bank President Akinwumi Adesina told the “High-Level Dialogue on Accelerating African Industrialization: Vision, Experiments and Lessons”, attended by eminent personalities in international development and political leaders from Africa.

Adesina said countries should focus more on developing industrial policies to direct investments into projects with better outcomes. He also called for investment in innovation centres which have a mix of skills, investment in robotics and computer and engineering skills to sustain the industrialization agenda.

The Bank President said it was important for African universities to produce more graduates with skills to survive the current digitalized world rather than training graduates of old-school technologies.

“The political leadership with a vision for the future, policy and finance is what we need. We said infrastructure is also important,” Adesina said during the panel discussion, attended by Rwandan Prime Minister Edourd Ngirente and his Moroccan counterpart Saadeddine Othmani.

President of the World Bank Jim Yong Kim warned process of industrializing Africa required proper focus on improving the technologies, investment in education and enhancing the capacity of local manufacturing companies to compete worldwide for Africa’s industrialization success.

“I am yet to reach an African garment factory with the efficiency of their Bangladeshi counterparts,” Kim said, warning African countries to guard against focusing on industrial sectors which stood the risk of being overrun due to their outdated technologies and innovation brought by new digital technologies.

Kim said garment factories in Africa remained in business because of affirmative action such as the African Growth and Opportunities Acts (AGOA), a U.S. plan, which allows exports from Africa duty-free.

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Jim Yong Kim, President of the World Bank, attends the Annual Meetings opening ceremony.

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Young Anglo-Ugandan billionaire Ashish Thakaar has become a regular at Bank Annual Meetings.

At the Bank-supported African Banker Prize award ceremony, guests were invited to try on the Hanbok, a traditional Korean outfit worn for celebrations such as this.

ipants ank c i t B r a 8 p 1 0 s 2 of the Adesina invite y n o m e ng cer t Akinwumi A. ily photo. i n e p o l den fam fficia At the oMeetings, Presi the traditional Annual im on stage for t o j oi n h

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A performance from the opening night of KOAFEC, which took place on the second day of the Bank Annual Meetings.

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Guest

2013, which was very well received by investors, and which supports climate mitigation and adaptation projects. Riding on that success, we established a Social Bond program with a twofold objective: (i) to showcase the Bank’s concrete actions to alleviate poverty on the continent, in particular the projects financed that have a strong social impact; and (ii) to respond to the growing demand from Socially Responsible Investors (SRI) asking for more transparency on their investments’ impact. As a multilateral development institution, we have a major role to play in providing support to this nascent market. Response from investors translated into an order book three times oversubscribed in less than three hours when we executed our inaugural Social Bond transaction in November last year.

Going forward, we want to build on this success and will continue to cater to SRI needs, whether in the field of gender, ocean conservation (‘blue bonds’), the diaspora community, or in the area of impact investment.

of the day In this interview, the Treasurer of the African Development Bank Group, Hassatou Diop N’Sele, confirmed the financial soundness of the Bank and its favourable prospects. In 2017, Bank lending reached a record USD 7.2 billion.

Regarding the huge financing needs of the continent, what other initiative do you envisage to allow the Bank to have sufficient resources to support its regional members?

In 2017, the Bank Group approved USD 8.7 billion in sovereign and non-sovereign operations This is well below what is needed to cover the vast financing needs of the continent. We are mainstreaming the use of leveraging financial products, such as guarantees to crowd-in additional private financing, syndication (we did the largest syndication on the continent in 2016 and intend to do more of those), putting a stronger emphasis on co-financing, and last but not least, we are launching the Africa Investment Forum.

This is a landmark event to accelerate and scale up private investments on the continent. It will be dedicated to advancing projects to bankable stages, de-risking them, raising capital, addressing regulatory hurdles and the information gap, and accelerating the financial closure of deals.

The AIF will help Africa reduce its resources gap.

Hassatou Diop N'Sele, Acting Vice-President, Finance, and Treasurer, African Development Bank Group

How is the African Development Bank doing financially in 2018?

ced dialogue with our clients and enabled us to address bottlenecks more efficiently.

he African Development Bank is doing very well. Its rating was reaffirmed with a stable outlook. Our financial profile is judged as being very strong by rating agencies, thanks in part to our prudent financial management and policies, our very high level of liquidity and the very strong support we enjoy from our shareholders. Although profit-making is not our major objective, we have generated income of USD 312 million that we will allocate to our reserves, while donating a substantial amount to the African Development Fund, among others, which caters to the needs of lower-income countries.

In 2017, you introduced a program of Social Bonds. What is your assessment of the introduction of this type of financial instrument and what are the next steps?

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Despite an unfavourable context, the Bank Group has significantly increased lending to its regional members, bringing the volume of its disbursements to more than USD 7.2 billion in 2017. How do you explain this performance?

This is who we are, a crisis partner. We play a countercyclical role, and support countries when they need it the most. We helped our countries ride out the financial and economic crisis, the food crisis; we supported them during the Arab Spring, and through the commodity crisis. Indeed, we had record disbursement levels in 2017, driven by a more effective way of doing business. Furthermore, decentralization has enhan-

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This is who we are, a crisis partner. We play a countercyclical role, and support countries when they need it the most. We helped our countries ride out the financial and economic crisis, the food crisis; we supported them during the Arab Spring, and through the commodity crisis. Indeed, we had record disbursement levels in 2017, driven by a more effective way of doing business. Furthermore, decentralization has enhanced dialogue with our clients and enabled us to address bottlenecks more efficiently.

Some support an evolution of the African Development Fund, for it to borrow on the financial markets. Do you support this evolution and what are the consequences?

The African Development Fund (ADF) is an effective partnership between the non-African shareholders of the Bank and recipient African countries. It is an important source of financial and technical assistance for the majority of African countries and is funded mainly through contributions by the non-African members of the Bank Group, and some African middle-income countries as well. An ADF Working Group was constituted by ADF donors to facilitate discussions on innovations to address structural issues on the future of ADF and how it can most effectively and efficiently contribute to the developing agenda of Africa’s lower income countries, which are its most vulnerable states. The working group is currently reflecting on the financing model for the ADF best-suited to meet the challenges relating to the new development agenda, including innovative approaches and instruments to deploy ADF resources more effectively.

In 2017, you introduced a program of Social Bonds. What is your assessment of the introduction of this type of financial instrument and what are the next steps?

This was a great success, to the extent that we want to do it at scale, on an annual basis. Thanks to our mission and mandate, we are a socially responsible issuer, active in sustainable markets since 2010, when we started issuing small theme bonds related to education, clean energy or food security, and lately to the Bank’s High 5s. We launched our successful Green Bond program in

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The Board of Governors adopts its agenda by a broad consensus

Africa must “trust the future” and invest in ideas, experts say In spite of general economic growth experienced across Africa, concerns remain over the continent’s ability to invest in ideas that can overcome high levels of indebtedness and unemployment, experts have warned.

Renowned African development economist, Carlos Lopes, who is a member of the African Union Reform Committee, said that massive investment into industrialization of African economies will leapfrog some of these.

The 80 Governors of the African Development Bank agreed on their agenda for the 53rd Annual Meetings of the Bank from May 21 to 25 in Korea.

Following its first session, chaired by the Korean Deputy Prime Minister and Minister of Strategy and Finance, Kim Dong Yeon, the Governors approved on Wednesday in Busan the report of the Joint Steering Committee, which met on May 21 in Busan and adopted the 12 items for debate by the Governors of the Bank.

According to the report presented to the Board by the Congolese Minister of Planning, Statistics and Regional Integration, Ingrid Ebouka-Babackas, Governor of the Bank for the Congo, the Board will have 12 items for deliberation in its forthcoming sessions, including the Annual Report of the Activities of the Bank 2017, the election of new Executive Directors, allocation of results of the year just ended, the New Partnership for Africa’s

Development (NEPAD), the water sector and the proposal for a 7th General Capital Increase of the Bank.

Apart from consideration of the items on the agenda, the Board of Governors, the highest decision-making body of the Bank, will hold a Governors’ Dialogue on May 24 on the major challenges for Africa’s development.

Several of the Bank’s Governors have already expressed their views in various sessions on the theme of the Annual Meetings 2018: “Accelerating Africa’s Industrialization.”

The President of the World Bank, Jim Yong Kim, was guest of honour at the first session of the Board of Governors. Kim reiterated his confidence in the future of Africa and urged the African Development Bank to keep to the path that it had mapped out for itself under the leadership of its President, Akinwumi Adesina.

“There is persistent talk that Africa cannot industrialize. This is due to our lack of knowledge and future insight, which has made it hard for us to trust the future and invest in ideas as much as we should,” he said on Day 3 of the 2018 African Development Bank Annual Meetings in Busan, Korea.

Lopes was speaking at a highlevel dialogue on the 2018 African Economic Outlook, published by the African De velop ment Bank.

“Unless political will and strategic investment improve, many countries may not achieve their industrialization goals. Political determination

and all macroeconomic ingredients have to fall in line for Africa to achieve expansive industrialization,” he added.

Former World Bank Chief Economist, Justin Yifu Lin, said that Africa has to learn from success stories about industrialization and exploit them for economic development.

“Korea is the best place to demonstrate the power of ideas.

After the Second World War, Korea was a war-torn post colonial country, and its GDP was similar to many countries in Africa. But they started to build bridges and subways that at the time were considered unwise investments because there wasn’t a lot of economic activity,” he said.

“Now, Korea is an advanced industrialized economy with a one of the world’s highest GDP ratios. I am not saying that Africa should simply copy their model, but, there is need to reflect, learn and invest in robust ideas.”

Africa’s infrastructure requirements run to US $130-170 billion a year, which is far higher than the long-accepted figure of $93 billion a year, according to the 2018 African Economic Outlook.

2018 Babacar Ndiaye Trophy awarded to Kenyan President Uhuru Kenyatta The 2018 Babacar Ndiaye Trophy was presented on Wednesday evening in Busan, Korea, to the representative of the Kenyan President Uhuru Kenyatta in a ceremony organized on the sidelines of the 53rd Annual Meetings of the African Development Bank.

According to the Ivorian platform Acturoutes, the promoter of the prize, the Kenyan Head of State was singled out for “his personal leadership and for the transformation of his country’s road network.”

The jury for the prize, which is named after the 5th elected President of the African Development Bank, was also influenced by the Kenyan President’s efforts “to develop the railways and streamline air transport” and the progress achieved in street lighting in Kenya.

Launched in 2016, the Babacar Ndiaye Trophy honours the best road and transport infrastructure initiatives in Africa. The 2018 edition is the first event since Babacar Ndiaye passed away in July 2017 in Dakar.

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governors speak

Regis Immongault, Gabon Up till now, crises have predominated in Africa: the debt crisis, the commodities crisis, and so on. It is time now for a transition.

While we read and hear that this century is going to be Africa's, we cannot be content with clichés.

INFLUENCERS

Three social media musketeers bring their influence to Busan

Mondli Gungubele, South Africa The Bank must be proactively developmental and must care jealously about the success of projects of each country. If you are sending 1 billion to Zambia, you are convinced that the infrastructure, both human and physical, exists for that money to be used fruitfully.

Kanny Diallo, Guinea We are at a crossroads in our country, which has the potential to be rich from either mining or agriculture. However, that is not enough. Guinea needs to achieve sustainable development. Therefore, we have developed our National Investment Program, which the Bank has committed to support.

Ibrahim Hamadou Hassan, Djibouti The African Development Bank needs to increase its general capital due to the priorities it has set for itself. The High 5s are very important. In setting these priorities and in noting the high demand from member countries for loans, the capital increase has proved itself indispensable.

Zied Ladhari, Tunisia The theme of industrialization is very appropriate because Africa has an economic potential that it has long struggled to harness. Its industrial potential is in the forefront of this economic potential. Today, we have success stories in manufacturing and non-manufacturing industries on the continent.

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Background, style, public. All of them are different, but they have one thing in common: thousands of followers and hailing from three corners of the African continent: west, north and south.

The trio – Edith Brou (@Edithbrou, 133,529 followers) from Côte d’Ivoire, Mohamed El Dashan (@Eldashan, 50,439 followers) from Egypt, and Ulrich Janse Van Vuuren (@UlrichJvV, 781,875 followers) from South Africa – said they were thrilled to team up on the occasion of the Annual Meetings of the African Development Bank in Busan.

These are the stars of the social networks of the African continent who are causing a stir.

Between two sessions, wandering the streets of the second biggest city in Korea, they tell their stories with humour and share their observations. But it is especially through live tweets that they are participating in the transformation of Africa. “An influencer is an opinion leader, a ‘enhanced’ citizen.” That is how

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33-year-old Brou, the “geek,” defines herself. “We can bring about changes in decisions in the private and/or public sector, save lives, prevent disasters…,” she says. In Busan, she believes in the industrialization of the continent. “Everything is possible. Provided that the different Heads of State consider the general interest.

They must make groundbreaking decisions,” maintains Brou. El Dashan, for his part, finds the term of influencer “terribly inadequate.” What matters is that he is convinced that this work can change things, “for better or worse.”

Especially for better. “We are here to try and push the positive agenda of the African Development Bank and the main messages of this conference, and to launch a public debate.

The panels are very high quality – even if I have spent more time discussing with the public,” opines El Dashan. As for his first participation in the Bank’s meetings, Van Vuuren is zen.

Sociable and smart, nothing escapes his gaze. “It’s exciting,” he says.

Industrialization frica must quit being at the bottom of the global value chains and move to rapidly industrialize, with value addition to everything that it produces,” said African Development Bank President, Akinwumi Adesina, at the launch of the Bank’s publication, Industrialize Africa: Strategies, Policies, Institutions and Financing in November 2017.

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“Industrialize Africa” is one of the Bank’s High 5 strategic priorities because only with industrialization can Africa move from widespread poverty and joblessness. There is much debate and no simple answer to the question of why the continent has not, in general, industrialized like much of the rest of the world. Explanations range from lack of access to credit to lack of planning, higher costs than elsewhere in the world, to cheap imported products that prevent the growth of domestic manufacturing. However, Rwanda, Ethiopia, Tanzania and Mauritius, for example, have successfully developed manufacturing industries, proving that industrialization is within reach.

Accelerated industrialization makes it possible for Africa’s economies to grow at a faster pace. Industrialization allows countries to benefit from producing value-added products, lower their dependency on commodities, and move towards a culture where people can move from low-paid casual work to better-paid skilled jobs. However, industrialization cannot happen without infrastructure, and Africa suffers from too little infrastructure. Good, fast, modern roads and efficient cities and towns capable of accommodating growing numbers of people and providing adequate municipal services are needed.

An article from March 2016 in The Economist stated that “although there are some shoots of progress, long-standing challenges – related to hard infrastructure, skills shortages and bureaucratic institutions – will continue to erode African competitiveness in the global manufacturing arena for

Infrastructure is a key enabler of Africa’s Industrialization

by Amadou Oumarou, Director, Infrastructure and Urban Development Department, African Development Bank

(at least) the rest of the decade.” The Bank estimates that Africa’s infrastructure requirements are between USD 130 million and USD 170 million a year and that the financing gap ranges from USD 68 billion and USD 108 billion a year.

At the Bank, we continued to play our part in 2017 in helping to close that gap by participating in infrastructure projects across the continent.

We continued to pursue the policy of investing in a diverse portfolio of major infrastructure projects such as roads, railways, aviation, ICT, and urban development to help give African countries a firm foundation on which to grow their economies, increase social development, and provide better services in health, transport, education and water and sanitation facilities.

urban population since 1950 as between 14% and 40%, and estimated that it will reach 50% by 2050.

The Bank approved a total of 16 transport, urban development, and ICT projects across 44 countries worth USD 1.52 billion in 2017. Road projects accounted for the largest sector with financing of USD 689 million, followed by aviation with USD 295 million. The railway sector accounted for USD 288 million, urban development was valued at USD 128 million, and ICT projects were valued at USD 109 million.

Industrialization and urbanization go hand-inhand as people flock to cities for employment.

The 2016 edition of the AEO notes the link between urbanization and structural transformation as the emergence of cities usually brings a rise in incomes and living standards. However, that is not always the experience in Africa: “Many countries that are more than 50% urbanized still have low income levels.” It adds that urbanization is becoming synonymous with "overcrowded informal settlements, congestion, and overloaded infrastructure.”

Industrialization happens in cities and towns, hence the need for well-planned urban development policies. Africa’s urbanization rate is the highest in the world. The 2016 African Economic Outlook (AEO), co-published by the Bank, the OECD and the UN Economic Commission for Africa, recorded growth rates in the African

Integration is also important. Of the 16 projects, six were cross-border operations, accounting for 30% of the Bank’s total investments of USD 1.52 billion in 2017. These contribute to another of the Bank’s High 5s – Integrate Africa. This is especially pertinent for Africa’s landlocked countries as it increases their ability to export goods and supplies.

One of the department’s projects in 2017 was to seek approval for a USD 153 million loan in Namibia, part of which will go to upgrading the railway to Walvis Bay Port in the west of the country.

This will help Namibia become an international hub and speed the gateway to the South Atlantic, something of particular importance to Botswana and Zambia, Namibia’s two landlocked neighbours.

As for the future, the Bank’s vision remains to progressively help close the infrastructure-financing gap in Africa with more projects across all regions, thereby allowing industrialization to take further hold on the continent.

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staple Crop Processing Zones provide hope for transforming african agriculture

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he African Development Bank views African agriculture as key to unlocking Africa’s enormous potential. Over 65% of the world’s arable land is located in Africa and 61% of Africans work all in agriculture, which accounts account for only 25% of GDP. US $35 billion are spent every year on food imports and the sector has little to no mechanization, uses inputs poorly and adds little value, all of which leads to low productivity and impoverishment. Such a low level of effort put into developing the sector to date constitutes a missed opportunity for meeting development targets in the UN’s Sustainable Development Goals and the Bank’s High 5s.

development needs of the continent, including job creation, nutrition, rural development, and market access and competitiveness.

However, agribusiness is still in its early stages in Africa, particularly in Sub-Saharan countries that experience enormous postharvest losses.

and implementation of Staple Crops Processing Zones as a promising approach to inclusive, participatory financing, including marketing of agricultural products in African countries. Here, agro-processing activities are concentrated in areas of high agricultural potential and many companies are involved in production, processing, and marketing agricultural products.

The economic costs of the missing links in agricultural value chain, and of processing in particular, are challenging. For example, Côte d’Ivoire, the world’s leading cocoa producer, accounts for 40% of world cocoa

The initiative has been implemented successfully in Brazil, Malaysia, Vietnam, and many East Asian and Latin American coun-

Clear public policies needed to attract public and private investment The importance of public policies for macroeconomic modeling and sustainable development are critically clear. With the youngest population in the world and an unemployment rate exceeding 10%, Africa must undertake the necessary transformation of its agricultural base to reverse its current economic trends. For the agricultural sector to become the principal area of investment on the continent, clear policies to attract public and private investment, including from foreign investors, are necessary.

The Bank’s Feed Africa strategy has largely demonstrated the added value of investing in agriculture on all fronts. It estimates the necessary funding at nearly US $400 billion for the next 10 years and expects that a sustained annual investment of US $32 billion to US $40 billion can generate an estimated US $ 85 billion in revenue from 2025, which will continue to grow given the incremental effect of knowledge gains. Resource mobilization is crucial for successful transformation, particularly as investment rates of about US$ 7 billion per are well below the estimates.

The Bank is targeting agribusiness to respond to pressing development needs

s In focu

A key target of the African Development Bank’s strategy is to develop agribusiness to provide answers to the pressing

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bean production, but produces barely any chocolate. Indeed, only 33% of its cocoa production undergoes an initial transformation (crushing beans) in the country. Tunisia produces 180,000 tons of olive oil annually yet less than 10% is packaged in Tunisia and the rest is exported in bulk. Cameroon produces about 2 million tons of plantain, almost all of which are sold unprocessed or lost post harvest.

Staple Crop Processing Zones for inclusive participatory funding

tries, including China, as well as in Tunisia and Morocco. It is now generating renewed interest on the African continent.dSeveral of ay E the Bank’s regional member countries have th sought the institution’s support to develop agro-industrial parks with a view to transforming the sector. There are renewed attempts to establish processing centres in the league of existing Staple Crop Processing Zones in Ethiopia, South Africa’s Dube Agro Trade Port, and the Bizerte Agropole in Tunisia, among others in Gabon, Morocco, Senegal, Nigeria and Zambia.

The Bank’s agricultural transformation goals target these important margins in the agricultural value chains and the multiple job creation opportunities of a dynamic agribusiness sector. It is promoting the development

The Bank is providing support to better plan, design, and implement African Staple Crop Processing Zones programs on the basis of an assessment of the types of SCPZs in Africa and of what works.

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Making a difference

PROMOTING ENTREPRENEURSHIP AND INNOVATION AND EGYPT AND BEYOND

Ahmed Abdel Salam, scientific researcher

My studies helped me determine the right mixture to make locally-produced fish feed from food waste at a very low cost compared to what we imported from abroad – for which we were paying American dollars.

shaimaa el Arabi, an architectural engineer from egypt, never thought she’d be spending so much time on a farm. After participating in the Industrial Waste Management and sMe entrepreneurship hub (IWeX) in egypt, an African Development Bank-sponsored training program, she learned how to turn farm agricultural waste into cow feed and has since used these skills to help upper egyptian farmers save money.

S

imilarly, fish farmers who used to have trouble finding affordable, quality fish food now have a lower-cost solution, thanks to 26-year-old Ahmed Abdel Salam, a scientific researcher. Ahmed also learned how to make fish food through IWEX, which supports Egyptians to harness science and technology and create innovative business solutions.

plemented by the Egypt National Cleaner Production Center affiliated with the Industrial Council for Technology and Innovation of the Ministry of Trade and Industry.

The project was designed to develop an industrial waste exchange system and link industrial waste generators, potential users and recyclers to improve resource efficiency, promote the development of new innovative SMEs, create green job opportunities, reduce the environmental impact of industrial waste, and improve the lives of Egyptian citizens.

With a budget of USD 2 million over four years, IWEX is funded by the MENA Transition Fund through the African Development Bank and im-

In Egypt, there are numerous examples of Banksupported science, technology, and innovation success stories. The stories confirm that when young people receive the proper training and support, they can use technology to work on projects they want to implement, thereby helping the Egyptian economy.

Over the last 15 years, the African Development Bank has approved 62 education projects worth USD 1.64 billion in commitments. To date, Bank investments have helped almost 6 million African youth gain access to education and training.

Said Mohamed Said, geological engineer

I was afraid to hear them say that the training courses were intended only for young people, but they reassured me that age was not important. The most important factor was that the ideas were fresh and young.

Busan Bulletin printed on recycled paper - May 24, 2018

Youth are not the sole beneficiaries of these programs. Said Mohamed Said, a geological engineer, manufactures reconstructed wood panels, a skill he acquired by participating in IWEX through a -training program, with a focus on local manufacturing and value addition products and services such as alternative fuels, organic fertilizers, industrial feedstock and consumer products.

Shaimaa El Arabi, architectural engineer

Thanks to the African Development Bank, similar training programs are being replicated and rolled out in different communities and countries in Africa. Investments in science, technology and innovation skills are sparking economic growth and competitiveness and helping more entrepreneurs like Shaimaa, Ahmed and Said reach their full potential and improve the quality of life for Africans.

My project is about making fodder mix from agricultural waste. We add value by turning it into animal feed. We are helping the environment by using this waste as food where before, farmers used to burn it.

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AGenDA

the day

9:00 9:30 10:45 13:00 13:45 15:00 19:00

Role of Public and Private Finance in Industrializing Africa Second Sitting of the Boards of Governors: Governors’ Dialogue KOAFEC PPP Forum Financial Presentation Culture Meets Industry Knowledge Event 2: Pathways to Industrial Development Cultural Night

More info: https://am.afdb.org/en/programme

Discover Busan

Seo-Gu: Explore traditional Korean life Jagalchi Market. Start your day early at Korea’s largest seafood market where you can buy both live and dried fish including mackerel, see squirts, and whale meat. Enjoy fresh sashimi-style fish at Chungmu Hoetjip, or a familyfriendly seafood buffet at OASE Seafood Buffet. You can also enjoy fresh fish at the historical tented street restaurants called Pojangmacha.

After a fish-based brunch, proceed to the renowned Gukje Market (also known as the Dottegi Market), one of Korea’s largest and most unusual flea markets created by refugees after the Korean War. It is also connected to other small markets such as Bupyeong Market and Kkangtong Market.

Join Busan residents at the lively local food markets in Seomyeon Eatery Alley, and enjoy a variety of traditional dishes such as Topokki (stir-fried rice cake), Eomuk or Oden (fish cake), Sundae (Korean sausage), and Dwaeji-gukbap (pork rice soup). Stalls open after 5pm.

Korean Proverb of the Day 돌다리도 두들겨 보고건넌다 Literal Translation: Even when crossing a stone bridge, hit it first.

Meaning: You should proceed with caution in everything you do.

Busan Bulletin printed on recycled paper - May 24, 2018

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