African Development Bank Group unveils $10 billion Response Facility to curb COVID-19

The African Development Bank Group (www.AfDB.org) on Wednesday announced the creation of the COVID-19 Response Facility to assist regional member countries in fighting the pandemic.

The Facility is the latest measure taken by the Bank to respond to the pandemic and will be the institution’s primary channel for its efforts to address the crisis. It provides up to $10 billion to governments and the private sector.

Akinwumi Adesina, President of the African Development Bank Group, said the package took into account the fiscal challenges that many African countries are facing.

“Africa is facing enormous fiscal challenges to respond to the coronavirus pandemic effectively. The African Development Bank Group is deploying its full weight of emergency response support to assist Africa at this critical time. We must protect lives. This Facility will help African countries to fast-track their efforts to contain the rapid spread of COVID-19,” Adesina said, commending the Board of Directors for its unwavering support.

The Facility entails $5.5 billion for sovereign operations in African Development Bank countries, and $3.1 billion for sovereign and regional operations for countries under the African Development Fund, the Bank Group’s concessional arm that caters to fragile countries. An additional $1.35 billion will be devoted to private sector operations.

Commenting on the Facility, Acting Senior Vice-President Swazi Tshabalala said: “The setting up of the Facility required a collective effort and courage by all our staff, Board of Directors and our shareholders.”

Two weeks ago, the Bank launched a record-breaking $3 billion Fight COVID-19 Social Bond, the world’s largest US dollar-denominated social bond ever on the international capital market. Last week, the Board of Directors also approved a $2 million grant for the World Health Organization for its efforts on the continent. 

“These are extraordinary times, and we must take bold and decisive actions to save and protect millions of lives in Africa. We are in a race to save lives. No country will be left behind,” Adesina said.

Adesina urges African governments to bring down the walls for integration

African leaders on Wednesday underscored the urgent need to fast-track the continent’s regional integration process in order to accelerate Africa’s economic transformation.

Africa Development Bank President Akinwumi

The call was made at the opening ceremony of the Bank’s 2019 Annual Meetings, in Malabo, Equatorial Guinea, with the theme: “Regional Integration for Africa’s Economic Prosperity.”

“Apart and divided, Africa is weakened. Together and united, Africa will be unstoppable,” the Bank’s President Akinwumi Adesina told delegates at the packed Sipopo Conference Center.

Adesina urged African governments to work toward the elimination of non-tariff barriers. “Pulling down non-tariff barriers alone, will spur trade by at least 53%, and potentially double trade,” he said.

The opening ceremony was presided over by the host nation’s President Teodoro Obiang Nguema Mbasogo. Also in attendance were King Letsie III of Lesotho; President Félix Antoine Tshisekedi of the Democratic Republic of Congo; and Ambrose Mandvulo Dlamini, Prime Minister of eSwatini. High-level government officials from Rwanda, Cameroon, the Central African Republic, and Côte d’Ivoire were also present.

In his opening speech, President Obiang Nguema Mbasogo recalled that Equatorial Guinea, once one of the poorest countries in the world, has since been radically transformed with one of the highest per capita incomes on the continent.

“For me, development is not about per capita income, it is about expanding the opportunities for the people to live a more dignified life,” Obiang Nguema Mbasogo said.

“Equatorial Guinea is open for business. We are committed to regional integration for shared prosperity. We count on the African Development Bank to help us achieve economic diversification and the consolidation of social equality.”

Regional integration is one of the Bank’s strategic High 5 agendas to rapidly advance Africa’s economic transformation.

In the past several years, the African Development Bank (www.AfDB.org) has invested over $13 billion in the central African region. “And for every dollar invested, the region has leveraged $36, an incredible rate of return of 36 times,” Adesina noted.

The Bank’s investments include the construction of the Central African fibre optic network that connects the population with faster and less expensive access to the Internet, and is boosting businesses and regional integration.

In his remarks, Equatorial Guinea’s Finance Minister Cesar Mba Abogo said: “Progress is the realisation of utopia. This is a country of utopia in Africa, with independence and the ability to control our own destiny. It seemed impossible at first in the last century but it was done. Now our utopia is regional integration.”

More than 2,000 participants are attending the Annual Meetings, a unique opportunity to share the Bank’s perspectives on the state of Africa’s economy. The meetings also provides updates on the Bank’s work and serves as a platform for the exchange of views on emerging issues shaping the future of the continent.

The Prime Minister of Equatorial Guinea, the president of the Senate, members of governments, the diplomatic corps as well as the African Development Bank’s Governors, Executive Directors, and other dignitaries attended the opening ceremony.

“There’s excitement in the air on Africa’s economic opportunities, and those opportunities are boundless. The newly ratified Africa Continental Free Trade Area will make Africa the largest free trade zone in the world, with a combined GDP of over $3.3 trillion,” Adesina said.  

Africa’s regional integration gains momentum at African Development Bank Group Annual Meetings in Malabo

“If we get integration right, Africa can develop with dignity and confidence,” African Development Bank President Akinwumi Adesina told journalists at a press conference to herald the Bank’s 2019 Annual Meetings, due to open Tuesday in Malabo, Equatorial Guinea.

The theme of this year’s meetings is ‘Regional Integration for Africa’s Economic Prosperity.” Regional integration gained momentum with the agreement on the African Continental Free Trade Area (AfCFTA) in March 2018 and is now at the threshold of its launch next month.

The AfCFTA will constitute the world’s largest free trade area, consolidating an integrated market of 1.3 billion consumers with a combined gross domestic product (GDP) of about $3.4 trillion. It is estimated that Africa’s GDP growth could reach 6% a year in a continent without borders (UNECA).

Answering questions from pan-African and international journalists, Adesina said that the Bank has invested around $1 billion through various initiatives, including cross border infrastructure, to move trade across African borders. Most has gone to small and medium enterprises – the engine of economic growth.

Cesar A. Mba Abogo, Equatorial Guinea’s Minister of Finance and Economic Planning, who co-hosted the press conference, spoke about the country’s significant efforts on the economic and infrastructure front, to connect markets in Central Africa.

“It is a real privilege to host the Bank’s Annual Meetings… the Bank’s High 5s – are very much in line with our development strategy between now and 2025,” Abogo said, revealing that the country’s road networks both in Malabo and throughout the mainland, were better than across large parts of Africa. In addition, Equatorial Guinea has invested in social housing and will continue to improve human capital, through capacity building and training programmes, while recognising the challenges presented by skill shortages.

Equatorial Guinea had been selected as host of the Annual Meetings because of its economic potential and because Central Africa could benefit a great deal from regional integration, said Adesina.

“We believe that the potential is immense, but the level of integration is not enough, ” he said.

Regional integration is one of the Bank’s High 5s and is seen as pivotal to boosting Africa’s economic development.

The Bank is committed to accelerating Africa’s integration process. In the last five years the Bank has invested more than $15 billion in the construction of regional infrastructure in energy, transport and ICT. Some of these projects include a $93.8 million loan for the long-awaited Trans-Gambia bridge linking the Gambia and Senegal, resulting in a 50% cut in freight costs and improved transport, health and education services for 900,000 local people.

Earlier in the morning at a media breakfast, Adesina underscored the importance of regional integration in Africa.

“If we get our integration right, Africa will be more competitive, will be able to create a massive amount of jobs and, more importantly, Africa can develop in dignity and confidence,” Adesina said.

The Annual Meetings will be an opportunity for experts, governments, businesses, civil society, think tanks and academia to share their candid assessments on regional integration efforts and dialogue on critical issues concerning Africa’s development.

AfDB President reaffirms stronger ties and increased support for Congo

African Development Bank President Akinwumi Adesina has reaffirmed stronger ties and increased support for Congo during a three-day visit to the Republic of Congo on 12 May 2019.

At a meeting with Congolese President Denis Sassou-Nguesso in his hometown, Oyo, some 460 km from the capital, Brazzaville, Adesina declared the Bank’s support for the country’s development plans.

“I wish to inform you that the African Development Bank will continue to support the Government of Congo and the implementation of the National Development Plan. I have great confidence in your leadership and the excellent work and efforts of the government,” Adesina said.

Congo is the fourth largest Sub-Saharan oil producer, with an output of 360,000 barrels-per-day from reserve estimates of around 1.6 billion barrels. It produces around 240 million cubic feet of gas daily from reserves estimated at 111 billion cubic feet.

While commending the country’s bold steps to deal with internal debt, Adesina said the government needed to create incentives in the non-oil sector to spur manufacturing and industry to boost private sector investments and small-to-medium businesses.

The African Development Bank delegation, led by Adesina, and accompanied by President Nguesso, visited the Port of Oyo and other projects including a High School of Technology with the capacity to enroll up to 10,000 students.

He commended the school project and suggested it should be renamed a ‘Regional Institute of Science and Technology of Congo’ to enable it to serve the region.

The Bank delegation also visited the Oyo Museum, a bio milk processing unit, a large cattle ranch and an ostrich farm. The ranch, which has close to 1,900 cattle and 245 Congolese employees, could be a major employer in the region, Adesina noted. 

The Bank’s delegation also met with Congolese Premier Clement Mboumba, the Minister of Planning, the Governor for Congo, and private businessmen and development partners.

UN Secretary General, African Development Bank President agree to strengthen ties and push development agenda in Africa

Development impact on the continent and security in the Sahel were among the top issues discussed in a recent meeting between United Nations Secretary General António Guterres and African Development Bank President Akinwumi Adesina in New York.

Both leaders agreed that current efforts must succeed in Africa, or risk failing globally, and emphasized the need for deeper collaboration between their institutions to achieve the Sustainable Development Goals.

Guterres signaled his strong support for the African Development Bank’s flagship ‘Desert to Power’ initiative, which is expected to provide electricity to 250 million people. He also offered to convene a special global meeting on Lake Chad, in consultation with Nigeria’s President Muhammadu Buhari.

The “Desert to Power” program, a $10 billion initiative to build a 10 GW solar zone across the Sahel—the largest in the world, aims to develop and provide 10 GW of solar energy by 2025 and supply 250 million people with green electricity including in some of the world’s poorest countries.

According to Adesina, “Secretary General Guterres and I had a highly productive engagement and committed to enhance strategic and operational partnerships between the UN and the African Development Bank. I am encouraged by the Secretary General’s generous support for the Bank’s development initiatives, which we are certain will bear fruit across the continent.”

The two heads of institutions met following Adesina’s trip to the United States for the World Bank’s annual Spring meetings held in Washington DC.

Adesina also briefed the Secretary General about ongoing discussions on the Bank’s General Capital Increase (GCI-7), designed to address Africa’s growing lending demands. The Secretary General committed to advocate “for the mobilization of adequate resources in order to further the Bank’s development goals.”

Guterres and Adesina also discussed the Bank’s inaugural Africa Investment Forum, held last year in Johannesburg, South Africa, where projects worth US$38.7 billion secured investment interest. The Secretary General accepted the Adesina’s invitation to participate in the 2019 edition of the event, to be held in November in South Africa.

African Development Bank calls for urgent global response as second cyclone hits Southern Africa

The African Development Bank has called for urgent global action in the wake of a second cyclone to hit the southern Africa coastal region in six weeks.  According to Bank President, Akinwumi Adesina, “we must have concerted international cooperation to establish management systems and responses to combat natural disaster.”

Cyclone Kenneth is also the most extreme tropical tornado to hit Mozambique in the last 60 years, according to official records.

“Timely intervention of national, regional and international actors and stakeholders are crucial when disaster strikes. Increasingly, Africa’s ecological challenges will only be successfully tackled through the harmony of efforts and activities of continental and global institutions,” Adesina urged on Monday from the Bank’s Abidjan headquarters. 

Cyclone Kenneth ripped through Comoros and Mozambique last week and is likely to cause extreme flooding in areas where more than 70,000 people live, according to the country’s National Directorate for the Management of Water Resources.

On March 15, cyclone Idai began pounding Madagascar, Malawi, Mozambique, and Zimbabwe and impacted the livelihoods of more than 3 million people. The official death toll now stands at 1,007, with 602 killed in Mozambique, 344 in Zimbabwe, 60 in Malawi and one in Madagascar, according to relief agencies.

Infrastructural damage from Idai across Madagascar, Malawi, Mozambique, and Zimbabwe is estimated to be at least $1 billion.

“We are on the brink of an unprecedented humanitarian crisis. We need to brace up for post-cyclone flooding, landslides and disease outbreaks,” Adesina warned.

A high-level Bank delegation, led by Mateus Magala, Vice President for Corporate Services and Human Resources, has begun visiting the affected areas.

Speaking from Maputo, Mozambique’s capital, Magala said, “What we saw on the ground in Mozambique after Idai, and in camps housing internally displaced persons in the south of Malawi, shows that we need to focus on restoring the dignity of citizens and the economic stability of communities when disaster strikes.”

Other members of the Bank delegation include Patrick Zimpita, Executive Director for Malawi, Zambia, and Mauritius; Heinrich Gaomab II, Executive Director for Angola, Botswana, Mozambique, Namibia and Zimbabwe; and Kapil Kapoor, Director General, Southern Africa Regional Development and Business Delivery Office.

The Bank delegation is expected in Harare this week to meet with donor agencies and officials of the Government of Zimbabwe. They will also tour Chimanimani, Chipinge and Mutare districts in Manicaland Province which were most affected by cyclone Idai.

President Buhari commends African Development Bank’s transformative role

(L-R) AfDB president Akinwumi Adesina and Nigeria President Muhammadu Buhari

At a meeting with the African Development Bank President in Abuja, Nigeria’s President Muhammadu Buhari commended the Bank for its successes and pledged Nigeria’s continuous support for the institution.

“I want to recognize the support that the African Development Bank has given Nigeria in recent times. I remember the Bank’s critical gesture in 2016 during the difficult period of economic recession through a US$600 million budget support facility. We appreciate this and assure you that we will continue to work towards a diversified Nigeria,” President Buhari said at the meeting with Bank President, Akinwumi Adesina, which was attended by some of the country’s Ministers and senior government officials.

President Buhari commended the Bank’s interventions in infrastructure and agriculture, and encouraged the institution to keep supporting countries like Nigeria to grow agriculture as a business through the promotion of agro-industrial zones in the country.

African Development Bank President Akinwumi Adesina thanked President Buhari for his support to the Bank and pledged the Bank’s commitment to fast track Africa’s development.

Adesina also highlighted several reforms at the Bank and strategic efforts to move the Bank’s operations closer to countries.

“The African Development Bank’s robust operations in Nigeria have had significant results and impacts on the ground, and continue to accelerate the country’s economic transformation as well as improve the lives of millions.”

At the end of March 2019, the Bank’s active portfolio in Nigeria comprises 60 operations with total commitments of US$4.5 billion. These include 28 public sector operations with total commitments of US$1.7 billion (21 national and 7 regional); 34 non-sovereign operations with total commitments of US$2.8 billion.

Following Nigeria’s request to the African Development Bank, Adesina reported that the United Nations Secretary-General, Antonio Guterres, has accepted to co-chair a multi-billion fund-raising  session to revive the Lake Chad – a strategic effort that has major climate, economic, agricultural and employment implications for the region.