Busan bulletin 25 05 2018 English Issue 05

@AfDB_Group #AfDBAM2018 afdb.org/am AFRICAN DEVELOPMENT BANK GROUP ANNUAL MEETINGS BULLETIN - MAY 25, 2018

With a strong financial profile, the African Development Bank is spearheading Africa’s economic transformation he African Development Bank has a very strong financial profile and remains focused on optimizing and strengthening its balance sheet to more effectively accompany African countries in achieving the Sustainable Development Goals. Prudent financial management and policies are the backbone of the Bank’s AAA rating.

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The Financial Presentation is the highlight of Bank’s financial and operational performance for 2017.

It described rising income and record disbursements of US $7.7 billion. More borrowing in the past few years reflects increased demand for Bank resources, and a deeper and broader investor base.

IN THIS EDITION

The Bank’s yardstick is its impact on Africa’s development, said Bank President Akinwumi Adesina.

“At the end of the day, it is all about the impact. Your Bank is making impact,” he told delegates, Governors, Executive Directors and Bank staff.

Hassatou Diop N’Sele, Group Treasurer and Acting Vice-President for Finance at the Bank, declared, “We will continue to improve our efficiency and remain a responsive and effective partner to maximize our development impact. We see ourselves not just as financiers, but also as a catalyst for attracting investment to the continent. We are therefore working with governments, agencies, and non-profits to co-finance or seek grants to support our projects and our development mandate.”

The report points to a remarkable increase in impact from projects completed in 2017, which provided 1.5 million direct new jobs, 460 MW of new power capacity installed of which 33% are

The Bank, she said, is solvent, very liquid, cost-effective, attuned to the continent’s financial needs, and able to provide very competitive pricing to clients. “We also understand that development is about empowering people to realize their needs and aspirations, including through education and better health and inclusion in secure communities. The Bank is a responsive and effective partner – we support our clients in times of crisis and in better times,” she explained.

Editorial: Transforming Africa through stronger integration p. 3 Best of the Annual Meetings in photos p. 4 Guest of the Day: Simon Mizrahi on the Bank’s results p. 6 Meet the Africa of my Dreams Writing Contest finalist p. 8

Changing people’s lives is the core of the Bank’s work

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

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

Watch the Governors’formal statements: j.mp/2IDTEFU

In Focus: Why Africa needs a “Big Bond” p. 10

To be continued on p. 3

The Bank’s Secretary General assesses the Annual Meetings Vincent Nmehielle

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s the Annual Meetings draw to a close, Busan Bulletin sought from the Bank’s Secretary General, Vincent Nmehielle, his assessment of the event.

gratulations”, “what a meeting”, and so on. While we cannot blow our own trumpet, based on what people have said, I can very well say it has been a wonderful meeting.

How do you assess the success of the Annual Meetings?

I am not sure that I am the one to assess the Annual Meetings, but people I meet – participants, Governors, staff members, senior management – have told me: "It was well organized”, “fabulous Meetings”, “fantastic”, “con-

During the Annual Meetings, we have talked a lot of what Africa can learn from Africa, but do you think Korean can learn from Africa?

The world is not one-way; it is always a mixture of experience. We

All videos: j.mp/2IF6Pq4

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renewable, and built or rehabilitated 2,500 km of roads. The Bank eased access to financial services for 210,000 owner-operators and small businesses, provided 8.3 million people with improved access to water and sanitation, reduced 157,000 tons

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To be continued on p. 3

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Transforming Africa through stronger integration Editorial

supporting linkages between North Africa and Sub-Saharan Africa and the rest of the world.

Khaled Sherif, Vice-President, Regional Development, Integration and Business Delivery

egional Integration, the last piece of the High 5s, was approved in 2018.

At the Bank, we are convinced that regional integration will set the continent on a path of exponential growth based on our long-standing experience as Africa’s premier financial institution and the research that has been carried out over decades. Supporting regional integration is the raison d’être that led to our establishment in 1964. Unlike other institutions, we have always looked at Africa as a single economic bloc while

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The 54 African countries are very different.

Seven countries account for 50% of Africa’s population while half of all African countries account for only 10% of the population. In 2016, about half of Africa’s gross domestic product (GDP) was generated by only three countries while 47 countries jointly contributed 32%. The sum of the GDPs of African countries equals 3% of global GDP. It becomes obvious that 1+1+1+…. = 54 is insufficient for Africa to transform itself and become a global player or to create a perspective for its growing population, which will double by 2050 to reach 2.6 billion people.

Delivering the High 5s: As an African institution, we are particularly concerned about the risk run by people and countries of being left behind, notably those in fragile situations. Recent developments in the Sahel have reminded the world of the risks of leaving behind large parts of the population.

What can Korea learn from Africa?

Eun Sung-soo, Chairman, Korea Eximbank:

Eun Sung-soo

Africa is our partner. We can learn what our common elements are, our relative advantages and disadvantages, and where there are opportunities for synergy. Once we learn more about each other, we can put the right people in touch for a win-win situation where Africa benefits, and we also benefit. There are many opportunities to learn and cooperate.

With a strong financial profile continued from p. 1

of CO2, and provided 14 million people with improved access to transport.

the continent despite challenges

A promising outlook for growth outlook cross

Despite local and global challenges, growth in Africa remained strong, at an estimated

This is why we are hoping to deliver the High 5s to communities that time forgot, those unreached by government services and cut off from change in urban areas. We are radically challenging and changing our development paradigm for this purpose, identifying these communities using an objective, data-driven methodology, the delivery capacity of non-traditional approaches to reach residents, and the latest technology to create a market linking development solutions (mini-grids, potable water devices, etc.) to financiers and implementers.

Korea is a strategic partner of the Bank and Africa’s economic ties with it have been growing over the past decade. The development path that Korea has followed strongly models the “public sector-enabled, private sector-led development” approach encouraged by the Bank. One of the many initiatives currently being funded in the context of our partnership with Korea aims to facilitate private sector inward investment from Korea into promising frontier markets, particularly in the Horn of Africa.

3.7% last year. Short-term projections estimate economic growth of 4.1%.

Simon Mizrahi, Director of Service Delivery, Performance Management and Results at the Bank, stated, “The foundation for sustainable development in Africa has to be industrialization.

In this respect, Korea is very much a model for Africa’s industrialization. Africa will not achieve its broader development goals merely by exporting raw materials. African businesses must move up global value chains.

They need to add value to all their production to generate jobs and prosperity for Africans. The Bank is working to help African countries develop industrial policies and improve the business environment, and is supporting African businesses to move up the value chains.”

The Bank’s Secretary General continued from p. 1

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The next Annual Meetings will be held in Equatorial Guinea. What can we expect from Malabo 2019?

Malabo is a year away and we have high hopes. Our meetings will return to Africa, after India in 2017 and Korea this year. I am very hopeful that it will be a grand meeting, because the Government of Equatorial Guinea is energized and poised to do even better. Our hope is that the Annual Meetings will be awesome.

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of t h

e Da y

Naked is he who wears the clothes of others.

– Algeria

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, Alexis Adélé, 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

have enjoyed experiencing Korea’s development, Korea’s savviness... But neighbourliness, the ability to value the other, are what Africa brings – and these traits affect how you approach culture. I think there’s much for Korea to appreciate in this regard. The resilience, mutual cooperation and friendliness at which Africa excels could also inspire in Korea new ways of interacting and doing business.

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A geomungo sanjo musician during a dinner held by the host country.

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Once again this year, Carlos Lopes, former Executive Secretary of the UN Economic Commission for Africa, did not fail to attend the Bank’s Annual Meetings. the Bank ernor of . v o G , u a sse nce Cyril Rou representing Fra Busan Bulletin printed on recycled paper - May 25, 2018

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The Meeting hallways were festooned with colorful African outfits.

rnors’ e v o G f oard o gs.

B e h t d regale rd nnual Meetin s e i r t n u A co 3 n 5 a c e i r h f t A f the 54 ssion o f e o s s h g c a a l F m at e o o r g n i t mee

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At the Annual Meetings opening ceremony.

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GuEST

of the day ply by exporting raw materials. It needs to move up global value chains, adding value to all its production to generate jobs and prosperity for Africans.

Take the case of Ethiopia, a country that is now becoming a competitive global exporter in textiles and footwear. Since 2004, manufacturing value-added increased by more than 10% a year, making it one of Africa’s fastest-growing world economies.

The mandate of the African Development Bank is to work for Africa's development. But what is the tangible impact of its operations in the field and on the daily lives of millions of Africans? A conversation with Simon Mizrahi, Director of the Bank’s Service Delivery, Performance Management and Results.

This is why the Bank, as part of its Industrialize Africa strategy, is supporting African businesses in international value chains and helping governments develop industrial policies and strengthen their business environments.

One example of how the Bank is doing this is through its support to Ethiopia’s Derba Midroc Cement Plant, which has reduced the price of cement by 70%.

The 2018 Annual Development Effectiveness Review is a comprehensive assessment of the effectiveness of the Bank’s development interventions. It was released at the Bank’s Annual Meetings. What does it tell us about the Bank’s impact?

Simon Mizrahi, Director of the Bank’s Service Delivery, Performance Management and Results

Africa’s development priorities come with many challenges. How do the Sustainable Development Goals connect with the Bank’s High 5s to find solutions to them? he SDGs are important because they sharpen our focus, direct our attention, and help mobilize resources to get things done.

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Today, the international community must focus its attention on Africa. By 2030, 9 out of every 10 low-income countries will be in Africa. So, put simply, without Africa the world will not achieve the SDGs. The good news is that Africa’s transformation out of poverty can be achieved in a generation. But it will require major investments in areas that are critical to Africa’s economic transformation.

This is why the Bank is focusing its attention on five priority areas that we call the High 5s: Light up and power Africa; Feed Africa; Industrialize Africa; Integrate Africa, and Improve the quality of life for the people of Africa. All of these are critical to the SDGs. According to the United Nations, delivering on the Bank’s High 5s will achieve up to 90% of the SDGs.

We are maximizing the use of our capital so that every dollar on our balance sheet achieves much more for Africa’s development.

We understand that inclusive growth is an essential part of the process; that it supplies households with livelihoods and governments with the means to invest in public goods and services. We also understand that development is about empowering people to achieve their needs and aspirations, including through education and better health.

We have increased our net operating income, which shot up to US $781 million in 2017. Of that amount, 90% goes to support our work low-income countries.

That being said, at the end of the day, the scale of Africa’s needs will always significantly outstrip the financial capacities of any single institution.

The Bank cannot afford to work in isolation.

Understanding development is one thing, but measuring it is very different.

This is why we are increasingly working with other to crowd in public and private resources through co-financing. In South Africa, for example, we mobilized nearly US $1 billion in support of a large electricity company.

We call that tool that we use to measure development impact the Annual Development Effectiveness Review. It is a publication that brings together the evidence of our strengths and weaknesses and helps us understand what we are doing well and what we need to do better to achieve our development goals.

And even more importantly, we are working to help governments raise their domestic resources through more effective taxation so that they can meet their own development needs without having to turn to the Bank.

The continent’s needs are substantial and constantly growing. What has the Bank done? How has it positioned itself over the past few years to serve these needs?

What has the Bank been doing on industrialization and how effective have you been in that regard?

Yes, Africa’s needs are indeed substantial. We estimate that achieving the High 5s alone will require about US $170 billion annually.

The foundation for sustainable development in Africa has to be industrialization. Africa will not achieve the Sustainable Development Goals sim-

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Every organization needs a yardstick to measure its success. At the African Development Bank, we use our development impact as a yardstick; in fact it is our bottom line. Over the years, our understanding has deepened of what it takes to deliver this bottom line.

Since 2010, we have doubled the size of our lending. And we have increased our contribution to low-income countries and fragile states seventeenfold.

Development is clearly one of the most challenging businesses in the world. Not everything works as planned. But by constantly scrutinizing our performance, we make sure we are always moving in the right direction.

The Bank cannot be an effective development organization without a deep understanding of Africa’s development trends. For this reason, we focus our attention each year on an important development theme. In this year’s edition we chose to focus on Africa’s industrialization.

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African Development Bank delivers strong operational results Annual Development Effectiveness Review 2018 “Made in Africa” – Industrialising the Continent

Annual review

African Development Bank is delivering on its goals and making good progress towards achieving its development and operational targets according to the 2018 Annual Development Effectiveness Review (ADER), which was released at the Bank’s Annual Meetings in Busan this week.

Every year, ADER scrutinizes the Bank’s operational effectiveness and its organizational efficiency, using the Bank’s results measurement framework for 2016-2025. It brings together evidence of strengths and weaknesses to provide management with a clear understanding of what has worked well and what the Bank must do better to achieve its High 5 development goals.

“The report shows that the African Development Bank is delivering on its commitment to help Africa achieve the Bank’s High 5 priorities,” said Charles Boamah, Senior VicePresident. “The Bank continues to strengthen its effectiveness as an organization, while scaling up its operations.”

This year’s ADER has a special focus on industrializing Africa. “There are good reasons to be optimistic that industrialization is achievable in the coming years. Africa is open for business, with stable economies and supportive

business environments,” said Bank President, Akinwumi Adesina. “It has a young and growing workforce that is increasingly global in outlook.

Urbanization and the rise of the African middle class are opening up new consumer markets, which act as a magnet for investors.”

In 2017, companies had improved access to transport, energy, and skills, which expanded their ability to do business across the continent.

The Bank contributed to these improvement: it provided 14 million people with access to transport – well above its target – while building or rehabilitating 2,500 km of roads in 2017 and also helped 210,000 small and micro businesses access finance, which benefitted 2.6 million people.

Africa Day: vision, talent and creativity African talent and ingenuity will be on display during today’s “Africa Day” celebration. All are invited to attend the event in the BEXCO Auditorium immediately after the closing ceremony of the Annual Meetings.

Africa Day is celebrated around the world on May 25. It is an opportunity to hold diplomatic discussions on important topics linked to Africa’s diversified, sustained and inclusive growth. The program will provide an opportunity to commemorate the 55th anniversary of the African Union (the former Organization of African Unity), and to showcase Africa’s strong comparative advantage in the creative industries, which contribute increasingly to economic growth, economic diversification and employment.

As this year’s Africa Day coincides with the last day of the Bank’s Annual Meetings, the three-part program will start with a discussion among Korean and African Government representatives opened by Bank President Akinwumi Adesina and moderated by Secretary General Vincent Nmehielle.

Following the discussion, awards will be given to the win-

“This level of performance is promising, but we must continue driving operational delivery and impact,” said Simon Mizrahi, Bank Director for Delivery, Performance Management and Results.

The Bank is scaling up its efforts to accelerate the pace of industrialization, supported by its presence in 38 countries and by timely and quality operations. This backbone and experience position the Bank well to mobilize more resources from institutional investors around the world for industrial development.

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ners and runners-up in the Africa of my Dreams Writing Contest. Four young contestants – Ayi-Renaud DossaviAlipoeh of Togo, Ramatou Ly of Côte d’Ivoire, Geraldine Mukumbi of Zimbabwe, and Cédric Aymar Some of Burkina Faso – will find out if they placed first or second in the French and English categories.

These four finalists were chosen from over 2,000 submissions in the Africa of My Dreams writing contest, a new Bank initiative inviting young people from across the continent to share their vision for a better Africa.

A fashion show will follow, featuring the creations of Nigerian designer Alphadi and Ivorian designer Pathé’O, and a discussion on the challenges and opportunities of scaling up Africa’s fashion, textile, and garment industries.

Finally, Cameroonian jazz legend Richard Bona will close the Bank’s Africa Day. Bona’s music speaks to the need to fight poverty and transform lives, a message reflected in albums released since 1998. His fourth album, Tiki, was a collaborative effort with international superstar John Legend.

governors speak

Americo D’Oliveira Dos Ramos, Sao Tome and Principe The Bank has played quite an important role in the quest to feed Africa and create jobs for Africa’s youth. Africa needs to create the conditions that allow it to feed itself and to create jobs for its teeming young population.

Africa of my Dreams finalists on their Annual Meetings experience

Domingos Lambo, Mozambique The Bank has already done a lot. It has financed infrastructure, it has financed and been very engaged in developing agriculture, and it has financed several projects. There is just one aspect where I believe the Bank should invest more and that is training the population.

Jean Alage M. Fadia, Guinea-Bissau After becoming independent in 1973, Guinea-Bissau had a whole range of infrastructure deficiencies.

It had a particular need for funding the energy, education and health sectors. The African Development Bank helped with all three sector plans.

Philip Mpango, Tanzania The African Development Bank has helped us implement a number of Power projects in Tanzania. And in our second five-year development plan, we made the conscious decision to industrialise Tanzania in line with one of the Bank’s High 5 priorities.

Admasu Nebebe, Ethiopia Infrastructure is essential and is the backbone of the economy. Without infrastructure it is impossible for any country to transform. When we say infrastructure, we are talking about social and economic infrastructure. When we say social infrastructure, it’s human development.

Ayi-Renaud Dossavi-Alipoeh, 25, Togo When I saw the contest announcement, I was surprised. These are questions that I think about a lot – I’m always imagining better conditions. I couldn’t help but enter!

I’ve published five books so far. I dedicated my most recent book of poetry to Mother Africa. My work explores some historical factors that have led to our current challenges, and proposes some ways forward.

Information technology can amplify the voices of those with the vision, energy and optimism to move Africa ahead. Failure is not an option. What may come across at times as anger and frustration among youth is, I think, the undeniable recognition of this fact – that deep down, we know we must either win or perish, and we have no intention of perishing.

Ramatou Ly, 29, Côte d’Ivoire It is a great opportunity to be here, because you get to see who is doing what in Africa, what challenges the continent is facing in terms of industrialization – and how I, as an African engineer, can help. I’ve been able to meet African entrepreneurs and change-makers, and to connect with people I might not have had a chance to otherwise.

Being a contest finalist makes the experience even more memorable.

People are eager to read our essays and even to learn from us. The Bank has made a real effort to expose us to journalists, Executive Directors and staff. Of course, whenever you mention that you’ve won a Bank writing contest, it tends to get a reaction!

Geraldine Mukumbi, 26, Zimbabwe A lot of African youth are jaded.

There’s a distrust of institutions; we

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tend to see them as self-interested.

It’s refreshing to hear these meetings approach development in terms of investing in people’s wellbeing.

I’m glad that African Ministers are here in Busan, to witness what happens when people are intentional about building cities that function.

Maybe they can apply some of what they learn here at home.

But others can learn from us as well. We have a sense of energy, optimism and hope that I haven’t experienced elsewhere. The world has much to gain by interacting with Africa from a place of exchange and learning, not just as outsiders coming to help.

Cédric Aymar Somé, 25, Burkina Faso We need to take an example from the Koreans on industrialization, to be inspired by their progress. I appreciate what’s been said about the need to tackle education in addition to industrialization. It’s human capital that brings value to other forms of capital.

The Bank says that Africa must transform its raw materials into products. I touched on similar themes in my essay. In Burkina Faso, we produce cotton. We should be leaders in the textile industry, not just cotton exporters who later pay a premium for imported clothing. We are blessed with rich soil; it’s not logical for us to be trailing the rest of the world.

I’m no Afro-pessimist. I believe in the future of this continent. It’s time for the youth to take on the work of development. We can take ideas from the Koreans, but we shouldn’t wait for others to come and invest – we’ve got to take initiative. Things must change, and as quickly as possible.

Industrialization A

frican women still face economic, social and institutional obstacles to pursuing and fulfilling their dreams in many ways.

Although significant progress has been made towards gender equality and women’s emancipation in Africa, we can and must do more. The Bank is working through sectorial and targeted approaches in agriculture, creative industries and energy to make growth inclusive on the continent.

In most countries, the leap from traditional agriculture towards a modern economy began with light manufacturing, which can rapidly absorb a large pool of less-skilled former farm workers and substantially increase productivity without steep capital investments. Unlike agriculture and services, manufacturing employs mass labor in highly productive sectors and enables them to participate in the global economy. On an indivi-

Integrating gender in Africa’s industrialization trajectory

by Vanessa Moungar, Director, Gender, Women and Civil Society, African Development Bank

One example of that commitment is the Fashionomics Africa initiative, launched by the Bank in 2015 to raise the profile of African textile, apparel and accessories (TA&A) industry on the international stage. Fashionomics Africa is a pan-African program focusing on micro, small and mediumsized businesses, which tend to attract large numbers of young people, both skilled and unskilled.

The goal is to foster inter-connectivity along the value chain, creating an ecosystem of producers and suppliers of primary materials, manufactu-

depending on the changing energy value chain.

However, those in sectors of commoditized energy products and new energy businesses face a common bottleneck: access to finance.

For debt-based financing, commercial bank lending is determined by the credit-risk profile of the borrower, which in turn is affected by changes in the energy value chain, resulting in unpredictability and instability. As a result, banking institutions are reluctant to extend credit to energy-based SMEs without hard collateral to back them up – and most women entrepreneurs lack this collateral. Other studies show that most women do not present their business proposals in the formats required by banks to evaluate associated risk, further hindering their access to credit.

dual level, industrialization empowers subsistence farmers trapped in local exchange systems to transform themselves into consumers and producers in the global economy.

As part of its Feed Africa program, the Bank has launched a strategy with four specific objectives for Africa: contribute to eliminating extreme poverty by 2025; end hunger and malnutrition by 2025; make Africa a net food exporter; and move Africa to the top of export-orientated global value chains.

This strategy will require between US $315 billion and US $400 billion in investments. The determination to focus on achieving Africa’s industrialization by 2025 also requires strong commitment and innovation.

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This is why the Bank has approved a financing package of US $100 million, comprising US $50 million of equity and a US $50 million convertible senior loan, to seed-fund the Facility for Energy Inclusion (FEI), a pan-African renewable energy debt fund. The investment, which is expected to catalyze energy access for an estimated 3 million people, is rooted in the Bank’s New Deal on Energy for Africa and the increasing global recognition of the importance of energy access in Africa. FEI will provide senior and mezzanine debt to projects with total costs under US $30 million, a threshold below which women entrepreneurs tend to be concentrated.

rers and distributors, and investors. The ecosystem aims to unlock the potential for revenue and job creation, especially for women and youth.

Fashionomics Africa envisions an environment that creates quality employment for women, with gains in women’s entrepreneurship, employment, and leadership.

The Bank’s vision is to help diversify African economies for higher value production, harnessing opportunities of automation and digitized production afforded by the fourth industrial revolution.

Africa cannot industrialize without access to energy. Energy inadequacy has ripple effects in other sectors, such as education, healthcare, and agriculture. To reach universal energy access by 2030, spurring Africa’s fourth industrial revolution, we need to scale up energy innovations.

Africa needs an industrial revolution to create jobs for its youth and women, to reduce migration pressures and social exclusion. For that, we must identify and empower the next generation of women entrepreneurs and innovators.

Initial findings indicate that most women-led businesses are already in transition and growing,

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Why africa needs a “Big Bond” An innovative financing mechanism excites Africa’s development community (ODA) through a “Big Bond” that is paired with enhanced policy dialogue led by the Bank Group.

Brian Pinto, a member of the Lab’s advisory team, explained, “The Big Bond is a very simple idea [to] set aside a portion of the US $45 billion in grants going to Africa every year and use that to help raise a significant sum of money up front.

Ngozi Okonjo-Iweala,

Brian Pinto

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frican Development Bank President Akinwumi Adesina may well be the world’s most incurable optimist on Africa.

“Africa’s policy-makers and the African people deserve much credit for the overall positive picture and outlook for the continent,” he declared at the launch of the 2018 African Economic Outlook report last January.

“African economies are demonstrating considerable resilience and gaining economic momentum needed to ensure long-term economic resilience.

Of course, challenges remain, especially with regard to structural transformations that will create more jobs and reduce poverty by deepening investments in agriculture and developing agricultural value chains to spur modern manufacturing and services,” he added.

s In focu

Unprecedented growth for Africa calls for unprecedented measures. At a time of fiscal constraint among donor nations, development experts and Bank analysts agree that Africa’s immense development needs, especially in infrastructure, re-

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“To take a concrete example, if you set aside US $5 billion at prevailing interest rates in the US Treasury market, you could use that to finance the principal and interest payments on a US $100 billion bond today.

Which means you get US $100 billion up front, and you set aside a very small fraction of the total amount of grants going to Africa over the next 30 years.”

Nancy Birdsall

quire new, creative instruments for concessional finance.

The Bank and the ADF will need all the support and resources they can muster to manage the Big Bond, advises Ngozi OkonjoIweala, member of the high-level panel.

To this end, the Bank is hosting an independent think tank, the African Development Fund Policy Innovation Lab. Financed by the Bill and Melinda Gates Foundation, the Lab consists of a five-person high-level panel of eminent women and an advisory team.

“We already talked about the general capital increase, which is needed. We saw that the last African Development Fund replenishment was not as substantial as it could have been,” she said. “Africa has a maternal mortality rate of 814 per 100,000, which is not acceptable. We cannot have women dying on a daily basis on the continent when we have the technology to stop it.

So, these are some of these things on which we have to focus.”

The Lab’s report, Reinvigorating African Concessional Finance: Report of the HighLevel Panel on Transforming Trust in the AfDB Group into Influence, observed that concessional finance as provided by OECD donors declined from US $57 billion in 2013 to US $51 billion in 2015, and the downward trend seemed set to continue.

Nancy Birdsall, another member of the highlevel panel, says that the Bank is better placed to manage the Big Bond for Africa.

“By 2020, ADF [African Development Fund] concessional finance will be 39 percent lower than its peak in 2010,” the report said. “This triple threat of a slowing global economy, lower African savings, and declining concessional finance must be managed to minimize severe socioeconomic consequences not only in Africa but globally.”

“The comparative advantage is that this Bank is seen in the African countries as the continent’s own Bank. There is a sense of ownership and commitment…and this comparative advantage can only be fully realized, in my view, when this Bank is bigger, has more capital, and a bigger source of financing for the poorest countries.”

The Lab’s high-level panel recommended an innovative financing solution that consists of frontloading official development assistance

Find out more: https://bit.ly/2IuDfmi

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Making a difference

DAKAR-DIAMNIADIO: SENEGAL’S HIGHWAY OF HOPE The Dakar-Diamniadio highway is more than just a road infrastructure project; it is a huge improvement for those living in the Senegalese capital and its large suburb. Costing a total of €388 million, of which €65 million were provided by the African Development Bank, the highway is was built as part of a public-private partnership (PPP) and has improved people’s quality of life by cutting the journey time between Dakar and its suburbs from 90 minutes to 30 minutes.

Sy Babou, owner-manager of the Carré d’As restaurant in Keur Massar, near Dakar

Ever since the motorway opened I have had customers coming to my restaurant from all over. I’ve gone from a first dining area with space for 70 customers to a second with more or less the same capacity. I’m now thinking of building a third room to meet the demand that the motorway has brought. Whenever we open a new space, we hire more staff and secure the services of more providers.

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Khadidiatou Sow Bousso, head of maintenance and safety at Eiffage-Sénégal, operator of the Dakar-Diamniadio motorway

As a female civil engineer, I manage a team of about 50 men without any difficulties. My portfolio includes everything connected with user safety: signs, user support. Based on my experience, I can assure you that there are no jobs exclusively for men. A woman can succeed anywhere if she is suitably qualified for the job. Some men find it hard to accept a woman in a managerial role. In this case, you need to show tact and skill. I encourage my Senegalese sisters to work, embrace knowledge, stand alongside men and enjoy what they do.

Busan Bulletin printed on recycled paper - May 25, 2018

he highway is a tool for boosting the Senegalese economy, especially as it ensures a more fluid connection between the capital and the new urban and economic centre of Diamniadio, which includes new building complexes, the Abdou Diouf International Conference Centre and the new Blaise Diagne Airport.

Boubacar Ba, property developer in Diamniadio

Thanks to its strategic role and socioeconomic effects, the highway contributes substantially to the Senegal’s national plan for economic emergence, which is backed by the Bank.

The highway puts Diamniadio half-way between Dakar and Thiès and only 10 minutes from the Blaise Diagne Airport. This strategic position increases property values in the entire area. I live in Thiès and commute to work near Diamniadio in less than 35 minutes. The Senegalese people support our plan to build almost 100 buildings on 38 hectares. Many of my fellow countrymen and -women are lining up to buy apartments starting at 15 million CFA francs.

Moreover, the highway, which opened in 2013, is fully aligned with the regional integration strategy to ensure better access to the port of Dakar for neighbouring countries and to ease traffic between Senegal and the sub-region.

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AGEnDA

the day

7:30

Breakfast Session: Open Dialogue on African Financial Alliance for Climate

9:00

Knowledge Event 3: The Future of Work and Industrialization

9:00

Knowledge Event 4: Building Africa’s Digital Markets Committee

11:30

Third Sitting of the Board of Governors: Closing Session of the 2018 Annual Meetings

12:30

Closing Press Conference

12:30

Host Country Side Event: Cooperation between Africa and The “Global Green Growth Institute”

15:00

Africa Day Celebration

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

Discover Busan

Natural Busan Dongbaek Island, located at the southern end of Haeundae Beach, offers a setting of dense camellias and pines. Visit the Nurimaru APEC House, a traditional pavilion showing Korea’s architecture style, which now serves as a memorial hall. Next to Dongbaek Island, Bay 101 includes a yacht club, cafés, pubs and a range of restaurants. The yacht club offers tours on a yacht, jet boat, glass-bottom boats and jet ski.

Yeongdusan Park on Yongdusan Mountain in downtown Busan offers impressive views of Busan Port from the 120-metrehigh Busan Tower with shrines for the mountain gods and monuments. Enjoy a beautiful view of the port day or night!

Busan Citizens Park is the city’s largest park with woodland paths, walking trails, a labyrinth, beaches, a culture and arts village, a book cafe in the forest, children’s play areas, and four fountains.

Best hiking in Busan: Gijang Theme Forest Trails near Ilgwang Beach.

Korean Proverb of the Day 호랑이에게 물려가도 정신만 차리면 산다 Literal Translation: Even though a tiger is biting you, if youn gain consciousness, (you can) live.

Meaning: Keep your cool even in the face of despair.

Busan Bulletin printed on recycled paper - May 25, 2018

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