AU calls for further financial input for the NEPAD-IPPF

The African Union Commission has called for further financial input for the New Partnership for Africa’s Development Infrastructure Project Preparation Facility (NEPAD-IPPF) Special Fund.

The African Development Bank approved in June 2019 the allocation of UA 3 million from its 2018 Net Income to NEPAD-IPPF

The 29th Oversight Committee (OC) meeting of the New Partnership for Africa’s Development Infrastructure Project Preparation Facility (NEPAD-IPPF) Special Fund held at the headquarters of the African Union Commission in Addis Ababa, Ethiopia, ended with calls for increased investments to accelerate the closure of Africa’s infrastructure gap.

The meeting, held on 28 June 2019, was hosted by the AUC and chaired by KfW Development Bank (Germany). Topics discussed included the NEPAD-IPPF Independent Review report, the introduction of reimbursable grants as part of the new business model, the mid-year progress report, updates on continental infrastructure initiatives, and adoption of a proposed joint AUC/AUDA/AfDB Domestic Resource Mobilization Strategy.

Michael Andres, the Oversight Committee Chairman, commended the achievements of NEPAD-IPPF and noted that more resources are required given the increasing demands being made on the fund.

“The NEPAD-IPPF Special Fund must continue to focus on key priorities, such as PIDA Projects to support the African 2063 Agenda.” Andres said.

While speaking on the Fund’s progress in the first semester of 2019, African Development Bank Director for Infrastructure and Urban Development Amadou Oumarou urged participants to consider the continent’s enormous infrastructure needs.

“New contributions from Spain (Euro 3 million) and the African Development Bank (UA 3 million) are indications of confidence in the Fund’s ability to successfully fulfil its mandate, and also recognition that the NEPAD-IPPF is playing a critical role in infrastructure development in Africa. It is therefore expedient for (the Fund) to be further strengthened with the necessary resources to enable it to meet its objectives and mandate,” Oumarou said.

The meeting convened over 30 participants including donors providing financial support to the NEPAD-IPPF Special Fund, representatives from the African Development Bank, the African Union Commission, the African Union Development Agency (AUDA-NEPAD), Regional Economic Communities (RECs), River Basin organizations and regional corridors authorities.

For AUC Director for Infrastructure and Energy, Cheikh Bedda, “The Programme for Infrastructure Development in Africa (PIDA), and Africa’s infrastructure priorities cannot be implemented without adequate resources committed to the NEPAD-IPPF, a critical instrument to prepare high quality bankable regional infrastructure projects across Africa”.

Providing updates on the Fund’s operational performance NEPAD-IPPF Fund Manager Mike Salawou, stated that cumulative contributions by donor partners including the African Development Bank amounted to $102 million, out of which $96.1 million had been committed to approve 91 projects. As at June 2019, 60 studies have been completed, 9 cancelled and 22 are on-going, he noted.

The African Development Bank approved in June 2019 the allocation of UA 3 million from its 2018 Net Income to NEPAD-IPPF. In addition, the Spanish Government announced a new contribution of EUR 3 million to NEPAD-IPPF in May 2019.

Among the studies completed by the Facility, 30 have so far reached financial close and attracted financing of $24.2 billion for physical implementation of power plants, bridges, ports, roads, hydropower schemes, and ICT projects. Of these successful projects, 17 have been constructed, 11 are under construction and two are yet to commence.

“While disbursements of committed funds on supported projects have reached a record, beyond that and without any new contributions to the Fund, NEPAD-IPPF will not be in position to support additional project preparation activities, therefore, there is a need for urgent replenishment of the Special Fund,”  Salawou stressed.

African Union Chairperson Appoints African union Youth Envoy

The Chairperson of the African Union Commission, Moussa Faki Mahamat, on Thursday appointed Ms. Aya Chebbi from Tunisia as his Envoy for the Youth.

This appointment is a follow-up to the relevant decisions of the African Union policy organs and part of the continental efforts to harness the demographic dividend, empower young people across Africa, and further mobilize them in pursuit of the aspirations outlined in Agenda 2063.

Ms. Chebbi was selected following an open and rigorous process involving the review of hundreds of applications by a Panel made up of representatives of the African Union Commission, the NEPAD Planning and Coordinating Agency, Regional Economic Communities and the United Nations Economic Commission for Africa. She brings with her a proven track record in advocacy and youth mobilization, with a view to effecting positive change.

As part of her mandate, and in support of the Commission’s efforts, the Youth Envoy will serve as spokesperson of the African youth to the relevant African Union decision-making bodies. She will advocate, and raise awareness on, the implementation of the Demographic Dividend Roadmap, which was adopted by the 2017 African Union Heads of State and Government Summit, and the 2006 African Youth Charter.

She will work in close collaboration with nine other members of the Youth Advisory Council designated by the Chairperson of the Commission, taking into account gender and regional representation requirements. She and the Advisory Council will engage with, and be supported by, relevant Departments of the Commission and other African Union entities, as well as youth organisations across the continent.

The Chairperson reaffirms the determination of the Commission to work towards the effective implementation of all African Union instruments relating to the youth. In January 2019, the Commission intends to organize a forum that will mark the formal launching of the activities of the Youth Envoy and the Advisory Council.

Could the future of food in the world depend on what Africa does with agriculture?

With over 800 million people worldwide suffering from hunger and more than two billion affected by malnutrition, food insecurity remains a real threat to global development

Addressing a standing room only crowd of global agriculture experts at the FAO headquarters in Rome, 2017 World Food Prize Laureate and President of the African Development Bank (www.AfDB.org), Akinwumi Adesina, says the answer is a resounding yes!

He believes Africa does not need aid but disciplined investments. According to this grandson of a subsistence farmer, he says the time has come to view investment and development opportunities in Africa through a totally different lens.

With over 800 million people worldwide suffering from hunger and more than two billion affected by malnutrition, food insecurity remains a real threat to global development.

Adesina, who is making a global pitch for renewed visionary leadership and strategic alliances, “the future of food in the world will depend on what Africa does with Agriculture.”

The African Development Bank, which he leads, envisions a food secure continent which uses advanced technologies, creatively adapts to climate change, and develops a whole new generation of what he describes as ‘agripreneurs’ – empowered youth and women who he expects to take agriculture to the next level.

By 2050, an additional 38 million African will be hungry. The paradox of lack in the midst of plenty, and Africa’s growing youth bulge are some of the reasons why Adesina’s sense of urgency is resonating with numerous government, private sector, and multilateral leaders during recent European and Asian trips. The banker and 2017 World Food Prize Laureate will be the first to admit that he considers himself the ‘evangelist-in-chief’ for a food secure Africa.

Africa continues to import what it should be producing, spending $35 billion on food imports each year, a figure that is expected to rise to $110 billion in 2025 if present trends continue.

A few days later, Adesina joined Rockefeller Foundation President Raj Shah, Unilever CEO Paul Polman, and 2018 World Food Prize nominees Lawrence Haddad and David Navarro, among other prominent global academic, development, and agriculture experts at Wageningen University and Research, in the Netherlands, to make the case for urgent collective action by State and non-State players to accelerate Africa’s agricultural growth and transformation.

Africa receives only 2 percent of the $100 billion annual revenues from chocolates globally. Adesina tells his audience that “adding value to what nations produce, is the secret to their wealth. Producing chocolate instead of simply exporting cocoa beans does not require rocket science.”

To expand opportunities for youth, women, and private sector players, Adesina is on a global mission to promote and seek support for the bank’s  Affirmative Finance for Women in Africa (AFAWA) program which aims to mobilize $3 billion to support women entrepreneurs who historically lack access to finance, land, and land titles; a $300 million ENABLE Youth program to develop the next generation of agribusiness and commercial farmers for Africa; and a new global investment marketplace, the African Investment Forum, which will be held in Johannesburg November 7-9.

In separate meetings with Sigrid A.M. Kaag, Minister for Foreign Trade and Development Cooperation, in the Hague; Peter van Mierlo, CEO of the Dutch Entrepreneurial Development Bank (FMO), key private sector players, and members of the Dutch Foreign Affairs Advisory Council, Adesina said Africa and its partners must seize unprecedented opportunities for innovative partnerships and increased development impact.

Mierlo believes, “a huge benefit for Africa is that it can skip development cycles that often almost all developed countries had to go through, by deploying new technologies such as artificial intelligence and robotics in agriculture”.

In a continent where more than 640 million are without electricity, Adesina says the private sector is key to Africa’s development in Africa’s energy and agriculture sectors.

“If Africa is going to turn the tide of irregular migration, this is critical. There are three ways in which we can collaborate: either through the NEPAD Infrastructure Project Preparation Facility, Africa 50 – a private equity institution which has raised more than US$ 850 million from 22 countries, and the new Africa Investment Forum.”

Adesina, recognizes that the lack of electricity is Africa’s biggest development impediment. The Bank’s new and ambitious Desert-to-Power initiative which aims to generate 10,000MW of power across Africa’s Sahel region will be critical to reducing migration and climate change impacts. We will do this through a blended finance mechanism with guarantees”, Mr. Adesina said.

Speaking to a High-level Roundtable of Dutch Business Leaders at the Netherlands Enterprise Agency (RVO), informed key private sector leaders that “governance structures and business regulatory environments are changing in Africa. Indeed, several African countries have already made significant progress in improving their general business and investment environments. Africa is doing better than some of the Asian countries,” he reminded his audience. “In the energy sector, the African Development Bank is investing $12 billion over the next 5 years, with the goal of leveraging $40-50 billion; and an additional $US 24 billion, over ten years, in agriculture to implement its Feed Africa Strategy.”

Agriculture steadily taking center-stage

The strategy is already bearing fruit with the establishment of Staple Crop Processing Zones in several African countries, including Ethiopia, Togo, Democratic Republic of Congo, and Mozambique, with a plan to reach 15 countries in a few years.

Strategically located in and around rural farming communities Adesina says “these agriculture zones will form the nucleus of a new wave of agro-industries and greenfield ventures, attracting agripreneurs, biotechnology firms, intellectual and capital investments. They will also ensure that foods are processed and packaged right where they are produced, rather than in urban centers far removed from centers of production.”

Described as a visionary optimist by many colleagues, Adesina believes the bank’s policies and investments will help turn rural areas from zones of economic misery into zones of economic prosperity.