News ID: 258829
Published: 1102 GMT September 17, 2019

AfDB plans for a self-sufficient, integrated continent

AfDB plans for a self-sufficient, integrated continent
Women rice farmers in a field, Accra, Ghana (BUSANI BAFANA/IPS)

Arama Sire Camara, a fruit and vegetable seller in the province of Kindia, some 135 km from the Guinean capital of Conakry, feels safer trading well into the night thanks to the Rural Electrification Project, financed by $21 million investment by the African Development Bank.Arama Sire Camara, a fruit and vegetable seller in the province of Kindia, some 135 km from the Guinean capital of Conakry, feels safer trading well into the night thanks to the Rural Electrification Project, financed by $21 million investment by the African Development Bank.

“With lighting on the road at night and illuminating our goods, it means we are safer, especially with all the cars on the road. You can work for longer after nightfall, and so we can make more of our products,” she said, IPS wrote.

Shuaibu Yusuf, a farmer from Nigeria, can now not only afford to pay for the food for his family thanks to his high yields that are resultant of the high-quality fertilizer he is able to access through the AfDB program, Feed Africa, but he can also pay his children’s educational costs and his family’s medical bills.

In South Africa’s Limpopo province, Sarina Malatji, now a 39-year-old mother of three, grew up in an area where access to education was limited. But thanks to investment from AfDB in the state power utility Eskom’s Medupi Leadership Initiative and the Eskom Contractors Academy, her life now is a far cry from her childhood. She is now the owner of her own cleaning business — Green Dot — which currently employs 115 people at the Medupi power plant, one of the largest energy projects in the country. She said the skills she learned through the leadership initiative helped her grow her business.

These are just the stories of a few people who have been the beneficiaries of investments made by the AfDB across the continent.

From supporting the construction of a 563 km power transmission line in Mozambique as part of a commitment to aid post cyclone Idai recovery through restoration of livelihoods and infrastructure; to signing a $28.8 million grant deal with Somalia for road and water projects; to signing a $4.8 million grant with the African Union for a continental free trade secretariat; and to committing to pool its resources with other stakeholders to counter food insecurity on the continent. This year has already seen the AfDB make a huge footprint in terms of development.

Last year, the bank’s Global Benchmark program successfully launched two large global benchmark issuances in the dollar market of $2 billion each and a 1.25 billion euro 10-year bond.

“Africa will develop not through aid but through the discipline of investments,” AfDB President Akinwumi Adesina said, noting that the bank and partners had launched the Africa Investment Forum in 2018, which raised $38.7 billion in investment deals.

But as the AfDB wrapped up the 20th annual meeting of world’s leading financial institutions last week at the bank’s headquarters in Abidjan, Cote D’Ivoire, plans are underway for a renewed push for Africa’s development as the bank lobbies for a general capital increase from shareholders.

The bank is committed to assisting Africa tap into its potential to be a competitive global investment destination with Charles Boamah, senior vice president of the bank, citing talks around the general capital increase, stating that “this is a pivotal year, a year in which very, very important decisions are being made about what kind of bank we want to have for the next 20 years.”

Earlier this year, Canada committed $1.1 billion in temporary callable capital to support AfDB. Canada also urged other AAA-rated member countries to join Canada in providing support to the bank.

At the time Adesina welcomed the announcement saying it was a “huge boost”. He said that it would allow the bank to “strengthen its Triple A rating and increase lending to member countries while discussions are ongoing among all shareholders for a general capital increase.”

 Canada has been a member of the AfDB since 1983 and is the fourth-largest shareholder among the bank’s non-regional member countries.

Adesina was in Japan at the end of August to attend the Tokyo International Conference on African Development (TICAD) where he told Japanese companies, “Africa presents a compelling return for investors”.

The AfDB is upbeat about Africa’s economic growth, which it has supported through various funding services availed to its 54 regional member countries.

In 2018, Africa recorded real GDP growth of 3.5 percent, the bank said in its 2018 annual report. This is a positive development for harnessing new investment on the continent.

The bank said 17 African countries achieved real GDP growth higher than five percent in 2018, and 21 countries showed growth between three and five percent. Only five African countries recorded a recession in 2018, down from eight in the two previous years. Six of the world’s 10-fastest growing economies are African nations, which include Burkina Faso, Côte d’Ivoire, Ethiopia, Libya, Rwanda, and Senegal.

According to the bank, some non-resource-rich countries had high growth rates in 2018, including Côte d’Ivoire (7.4 percent), Rwanda (7.2 percent), and Senegal (seven percent), supported by agricultural production, consumer demand, and public investment.

Economic fundamentals in most African countries continued to improve, the bank said, attributing this to fiscal consolidation and massive investments in infrastructure, major inroads in financial innovation, increased domestic demand, and substantial improvements in the investment climate.

“With lighting on the road at night and illuminating our goods, it means we are safer, especially with all the cars on the road. You can work for longer after nightfall, and so we can make more of our products,” she said, IPS wrote.

Shuaibu Yusuf, a farmer from Nigeria, can now not only afford to pay for the food for his family thanks to his high yields that are resultant of the high-quality fertilizer he is able to access through the AfDB program, Feed Africa, but he can also pay his children’s educational costs and his family’s medical bills.

In South Africa’s Limpopo province, Sarina Malatji, now a 39-year-old mother of three, grew up in an area where access to education was limited. But thanks to investment from AfDB in the state power utility Eskom’s Medupi Leadership Initiative and the Eskom Contractors Academy, her life now is a far cry from her childhood. She is now the owner of her own cleaning business — Green Dot — which currently employs 115 people at the Medupi power plant, one of the largest energy projects in the country. She said the skills she learned through the leadership initiative helped her grow her business.

These are just the stories of a few people who have been the beneficiaries of investments made by the AfDB across the continent.

From supporting the construction of a 563 km power transmission line in Mozambique as part of a commitment to aid post cyclone Idai recovery through restoration of livelihoods and infrastructure; to signing a $28.8 million grant deal with Somalia for road and water projects; to signing a $4.8 million grant with the African Union for a continental free trade secretariat; and to committing to pool its resources with other stakeholders to counter food insecurity on the continent. This year has already seen the AfDB make a huge footprint in terms of development.

Last year, the bank’s Global Benchmark program successfully launched two large global benchmark issuances in the dollar market of $2 billion each and a 1.25 billion euro 10-year bond.

“Africa will develop not through aid but through the discipline of investments,” AfDB President Akinwumi Adesina said, noting that the bank and partners had launched the Africa Investment Forum in 2018, which raised $38.7 billion in investment deals.

But as the AfDB wrapped up the 20th annual meeting of world’s leading financial institutions last week at the bank’s headquarters in Abidjan, Cote D’Ivoire, plans are underway for a renewed push for Africa’s development as the bank lobbies for a general capital increase from shareholders.

The bank is committed to assisting Africa tap into its potential to be a competitive global investment destination with Charles Boamah, senior vice president of the bank, citing talks around the general capital increase, stating that “this is a pivotal year, a year in which very, very important decisions are being made about what kind of bank we want to have for the next 20 years.”

Earlier this year, Canada committed $1.1 billion in temporary callable capital to support AfDB. Canada also urged other AAA-rated member countries to join Canada in providing support to the bank.

At the time Adesina welcomed the announcement saying it was a “huge boost”. He said that it would allow the bank to “strengthen its Triple A rating and increase lending to member countries while discussions are ongoing among all shareholders for a general capital increase.”

 Canada has been a member of the AfDB since 1983 and is the fourth-largest shareholder among the bank’s non-regional member countries.

Adesina was in Japan at the end of August to attend the Tokyo International Conference on African Development (TICAD) where he told Japanese companies, “Africa presents a compelling return for investors”.

The AfDB is upbeat about Africa’s economic growth, which it has supported through various funding services availed to its 54 regional member countries.

In 2018, Africa recorded real GDP growth of 3.5 percent, the bank said in its 2018 annual report. This is a positive development for harnessing new investment on the continent.

The bank said 17 African countries achieved real GDP growth higher than five percent in 2018, and 21 countries showed growth between three and five percent. Only five African countries recorded a recession in 2018, down from eight in the two previous years. Six of the world’s 10-fastest growing economies are African nations, which include Burkina Faso, Côte d’Ivoire, Ethiopia, Libya, Rwanda, and Senegal.

According to the bank, some non-resource-rich countries had high growth rates in 2018, including Côte d’Ivoire (7.4 percent), Rwanda (7.2 percent), and Senegal (seven percent), supported by agricultural production, consumer demand, and public investment.

Economic fundamentals in most African countries continued to improve, the bank said, attributing this to fiscal consolidation and massive investments in infrastructure, major inroads in financial innovation, increased domestic demand, and substantial improvements in the investment climate.

“With lighting on the road at night and illuminating our goods, it means we are safer, especially with all the cars on the road. You can work for longer after nightfall, and so we can make more of our products,” she said, IPS wrote.

Shuaibu Yusuf, a farmer from Nigeria, can now not only afford to pay for the food for his family thanks to his high yields that are resultant of the high-quality fertilizer he is able to access through the AfDB program, Feed Africa, but he can also pay his children’s educational costs and his family’s medical bills.

In South Africa’s Limpopo province, Sarina Malatji, now a 39-year-old mother of three, grew up in an area where access to education was limited. But thanks to investment from AfDB in the state power utility Eskom’s Medupi Leadership Initiative and the Eskom Contractors Academy, her life now is a far cry from her childhood. She is now the owner of her own cleaning business — Green Dot — which currently employs 115 people at the Medupi power plant, one of the largest energy projects in the country. She said the skills she learned through the leadership initiative helped her grow her business.

These are just the stories of a few people who have been the beneficiaries of investments made by the AfDB across the continent.

From supporting the construction of a 563 km power transmission line in Mozambique as part of a commitment to aid post cyclone Idai recovery through restoration of livelihoods and infrastructure; to signing a $28.8 million grant deal with Somalia for road and water projects; to signing a $4.8 million grant with the African Union for a continental free trade secretariat; and to committing to pool its resources with other stakeholders to counter food insecurity on the continent. This year has already seen the AfDB make a huge footprint in terms of development.

Last year, the bank’s Global Benchmark program successfully launched two large global benchmark issuances in the dollar market of $2 billion each and a 1.25 billion euro 10-year bond.

“Africa will develop not through aid but through the discipline of investments,” AfDB President Akinwumi Adesina said, noting that the bank and partners had launched the Africa Investment Forum in 2018, which raised $38.7 billion in investment deals.

But as the AfDB wrapped up the 20th annual meeting of world’s leading financial institutions last week at the bank’s headquarters in Abidjan, Cote D’Ivoire, plans are underway for a renewed push for Africa’s development as the bank lobbies for a general capital increase from shareholders.

The bank is committed to assisting Africa tap into its potential to be a competitive global investment destination with Charles Boamah, senior vice president of the bank, citing talks around the general capital increase, stating that “this is a pivotal year, a year in which very, very important decisions are being made about what kind of bank we want to have for the next 20 years.”

Earlier this year, Canada committed $1.1 billion in temporary callable capital to support AfDB. Canada also urged other AAA-rated member countries to join Canada in providing support to the bank.

At the time Adesina welcomed the announcement saying it was a “huge boost”. He said that it would allow the bank to “strengthen its Triple A rating and increase lending to member countries while discussions are ongoing among all shareholders for a general capital increase.”

 Canada has been a member of the AfDB since 1983 and is the fourth-largest shareholder among the bank’s non-regional member countries.

Adesina was in Japan at the end of August to attend the Tokyo International Conference on African Development (TICAD) where he told Japanese companies, “Africa presents a compelling return for investors”.

The AfDB is upbeat about Africa’s economic growth, which it has supported through various funding services availed to its 54 regional member countries.

In 2018, Africa recorded real GDP growth of 3.5 percent, the bank said in its 2018 annual report. This is a positive development for harnessing new investment on the continent.

The bank said 17 African countries achieved real GDP growth higher than five percent in 2018, and 21 countries showed growth between three and five percent. Only five African countries recorded a recession in 2018, down from eight in the two previous years. Six of the world’s 10-fastest growing economies are African nations, which include Burkina Faso, Côte d’Ivoire, Ethiopia, Libya, Rwanda, and Senegal.

According to the bank, some non-resource-rich countries had high growth rates in 2018, including Côte d’Ivoire (7.4 percent), Rwanda (7.2 percent), and Senegal (seven percent), supported by agricultural production, consumer demand, and public investment.

Economic fundamentals in most African countries continued to improve, the bank said, attributing this to fiscal consolidation and massive investments in infrastructure, major inroads in financial innovation, increased domestic demand, and substantial improvements in the investment climate.

   
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