Gylfi Palsson, Lead Transport Specialist and Acting Manager for the LAC Region, World Bank Financing Sustainable Transport in LLDCs in Africa High Level Meeting 13-14 October 2016 - Santa Cruz, Bolivia
PRESENTATION OUTLINE 1. Who we are - The AfDB 2. What we do - Supporting Africa s Development 3. Contribution to Sustainable Transport in Africa s LLDCs 4. How we do what we do Our tools & Instruments 5. How can we do more Transport and ICT 1
BANK GROUP OVERVIEW Africa s premier development financial institution focused on reducing poverty, and improving living conditions on the continent Our mission & objective is to spur sustainable economic development and social progress in its regional member countries (RMCs), thus contributing to poverty reduction The Bank Group achieves its objective by: 1. Mobilizing and allocating resources for investment in Africa; and 2. Providing policy advice and technical assistance to support development efforts. The ADB Group: three constituent institutions, separate legally and financially, with a common goal African Development Bank ( AfDB ) Established in 1964 54 African and 26 non-african countries Authorized capital: UA 68 billion (US$ 100 billion) African Development Fund ( ADF ) Established in 1972 Subscription: US$ 50 billion Primarily financed by donors The African Development Bank: 1. Triple-A by all major ratings agencies NTF Nigeria Trust Fund ( NTF ) Established in 1976 by Nigeria Maturity 2018 Total resources: US$ 241 million 2
The African Development Bank Group - The P r e m i e r P a r t n e r f o r A f r i c a s D e v e l o p m e n t Africa Regional Member Countries (Shareholding: 60.8%) Algeria (4.0%) Angola (1.2%) Benin (0.2%) Botswana (2.1%) Burkina Faso (0.4%) Burundi (0.2%) Cameroon (1.0%) Cape Verde (0.08%) Central African Rep. (0.04%) Chad (0.07%) Comoros (0.02%) Congo (0.5%) Côte d Ivoire (3.7%) D. R. Congo (1.0%) Djibouti (0.05%) Egypt (5.1%) Equatorial Guinea (0.2%) Eritrea (0.09%) Ethiopia (1.6%) Gabon (1.2%) Gambia (0.2%) Ghana (2.3%) Guinea (0.4%) Guinea Bissau (0.03%) Kenya (1.4%) Lesotho (0.2%) Liberia (0.2%) Libya (3.8%) Madagascar (0.6%) Malawi (0.3%) Mali (0.4%) Mauritania (0.2%) Mauritius (1.9%) Morocco (3.3%) Mozambique (0.6%) Namibia (0.3%) Niger (0.3%) Nigeria (8.8%) Rwanda (0.1%) S. Tome & Principe (0.07%) Senegal (1.0%) Seychelles (0.06%) Sierra Leone (0.2%) Somalia (0.09%) South Africa (4.5%) Sudan (0.4%) South Sudan Swaziland (0.3%) Tanzania (0.8%) Togo (0.16%) Tunisia (1.4%) Uganda (0.5%) Zambia (1.2%) Zimbabwe (2.0%) Middle East Kuwait (0.4%) Saudi Arabia (0.2%) Non-Regional Member Countries (Shareholding 39.2%) Austria (0.4%) Belgium (0.6%) Denmark (1.1%) Finland (0.5%) France (3.7%) Germany (4.1%) Italy (2.4%) Europe Netherlands (0.8%) Norway (1.1%) Portugal (0.2%) Spain (1.0%) Sweden (1.5%) Switzerland (1.4%) UK (1.7%) Luxemburg (..) Americas Argentina (0.3%) Brazil (0.4%) Canada (3.7%) USA (6.6%) Asia China (1.1%) India (0.2%) Japan (5.5%) Korea (0.4%) Turkey ( 0.1%) 3
BANK GROUP LOANS & GRANTS APPROVALS AfDB Bank Group Loan & Grant Approvals 2010-2015 Bank Group Loan & Grant Approvals by Sector 2010-2015 25.00 20.00 15.00 10.00 5.00 0.00 US$ Billions 21.53 8.70 4.97 3.60 3.17 1.38 Infrastructure Finance Multi-Sector Social Agriculture Industrial [CATEGORY NAME] [CATEGORY[PERCENTA NAME] GE] [PERCENTA GE] [CATEGORY NAME] [PERCENTA GE] [CATEGORY NAME] [PERCENTA GE] [CATEGORY NAME] [PERCENTA GE] [CATEGORY NAME] [PERCENTA GE] 4
7 major ports financed in the last 10 years AFDB APPROACH IN SUPPORTING Port infrastructures and process TRANSPORT IN LLDCS Road corridors & Transit Facilitation 7800 km of road corridor upgraded in the last 10 years Improoving air connectivity 7 airport terminal built + 25 countries concerned by air safety programs An holistic approach to maxime the impact of infrastructure projects Promoting rail transport 4 major operators and railways supprted 30 one-stop border post built in the last 10 years One-stop Border posts and customs harmonization Logistic plateforms, markets and access to final producers/consumers 5
AFDB ACTIVE TRANSPORT PROJECTS PORTFOLIO US$11 Billion 114 Projects In 44 countries 6
EXAMPLES OF REGIONAL PROJECTS FOR LLDCS EAST AFRICA CENTRAL AFRICA Addis-Ababa -Nairobi Mombasa USD I billion by the Bank 937 km of road upgraded 1 OSBP & Facilitation Trade increase 500% Corridor Douala - Ndjamena - USD 290 million by the Bank - 507 km of road upgraded - 125 km of railway upgraded - Transport Facilitation Transport facilitation on The Nacala corridor USD 600 million 135 km of road in Malawi 523 km of road in Mozambique 360 Km of road in Zambia 2 OSBP & Facilitation SOUTHERN AFRICA Transport facilitation on the Corridor Bamako-San Pedro USD 240 million 140 km of road in Mali 135 km of roads in Côte d Ivoire OSBP & Facilitation WEST AFRICA 7
AFDB FINANCING INSTRUMENTS Loans & Grants Sovereign Loans or Grants Non-Sovereign Loans Syndicated Loans Corporate or Project Finance Guarantees Partial Risk Guarantee Partial Credit Guarantee Equity Direct Investment Indirect Investment thru Infrastructure Funds Quasi-Equity
PROJECT PREPARATION & TECHNICAL ASSISTANCE MIC FUND US$ 20 million per year to finance studies & Advisory Services for Regional Infrastructure Gov. RECs, Sponsored Private Firms Max US$2 million per project US$ 16 million per year to finance studies & Advisory Services Gov. RECs, Private Firms Max US$1 million per project US$ 16 million per year to finance studies & Advisory Services Gov. RECs Max US$2 million per project 9
LESSON LEARNED & SUCCESS FACT Structuring Sustainable Transport Projects Need for clear and coherent sector policies Effective planning and project preparation Regional approach towards development of projects Strong institutional & execution capacity - PPP units, Autonomous Agencies, line ministries, RECs Innovative financing sources e.g. Guarantees, Private Equity Funds, Project Bonds, Diaspora bonds, National Infrastructure Banks, Development of Local Capital Markets
Thank you Amadou OUMAROU Director Transport & ICT Infrastructure Department African Development Bank Abidjan, Cote d Ivoire a.oumarou@afdb.org 11