partnerships to strengthen reform - how do they work? african development bank group afdb symposium...

Partnerships to Strengthen Reform - How Do They Work?

African Development Bank Group

AfDBSymposium on WTO Trade Facilitation for African Countries Nairobi, Kenya

November 13-15, 2012

14 November 2012 1

Structure of Presentation

• How Priorities are Determined: AfDB’s Approach

• AfDB Funding Instruments• Conclusion

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How Priorities are Determined

• The potential benefits of TF are substantial– Transport & NTBs account for 14% of trade costs in Africa’s landlocked

countries, compared to a developing country average of 8.6% (AfDB)

– Costs prohibitively higher for some land locked countries: • Malawi (56%); Chad (52%); Rwanda (46%), etc…

– Implementing TF measures requires substantial investment in human resources, hard and soft infrastructure

Therefore, provision of TA & Capacity Building to regional economic Therefore, provision of TA & Capacity Building to regional economic communities (RECs) and regional member countries (RMCs) in the communities (RECs) and regional member countries (RMCs) in the area of TF represents a sound intervention for the Bankarea of TF represents a sound intervention for the Bank

Transforming landlocked into “LAND-LINKED” countries…?

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How Priorities are Determined

• Trade Facilitation Framework: Provides an approach to mainstream TF in the Bank’s regional & country operations

• Adopts a holistic approach that includes the ports, transport corridors, border posts

• Is anchored around a set of guiding principles: Ownership, Prioritisation, Selectivity, Developmental Effectiveness & Results, Strategic Partnerships, Alignment with relevant international standards

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How Priorities are Determined

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AFDB FUNDING INSTRUMENTS

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Differentiated Products by Category

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MICs

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Low Income Countries

• ADF is the concessional window of the African Development Bank Group

• ADF takes a three year outlook: ADF 12 covers the period 2011-2013

• Focused on infrastructure, governance, fragile states and Regional Integration

• ADF-13 currently under negotiation

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RO Envelop

• A dedicated envelop within the ADF for operations in ADF eligible countries only

• Critical for supporting regional integration initiatives: In ADF-12, the RO envelop represents 20% of ADF resources

• In terms of value, it is estimated at UA1.163 billion (approx. US$1.8 billion)

• Example of initiatives: Capacity Building for Tripartite (C-E-S Tripartite )

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Regional Operations Selection and Prioritization Framework-Prioritisation of RO projects follow the RO operations Selection & Prioritisation Framework, a 2 State process

Examples of Projects funded under the RO Envelope in 2011

Project Name Approved RegionRO

envelope UAm

PBA + FSF

contrib.UA m

Total AmountUA m

2011          

Mombasa-Nairobi-Addis Ababa Road Corridor Phase III

Yes East 150 75 225

Kazungula Bridge Yes South 34 17 51

Electrical interconnection: Boali, RCA – RDC

Central 48 12 60

Abidjan-Lagos corridor Road corridor Yes West 52 26 78

Trans Gambia River Bridge Yes West 65 2 67

CGIAR Support to Agricultural Research Yes All 40 RPG 40EAC Payment system development project

East 15 RPG 15

Managing for Development Results Yes All 9 RPG 9

African Virtual University, Phase 2 Yes East 10 RPG 10

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Thematic Trust Funds• Focused on thematic areas such as trade capacity• Africa Trade Fund (AfTra): focusing on trade related capacity building• NEPAD IPPF: focused on design of infrastructure projects to ensure

quality and entry• PIDA – Africa’s framework to implement infrastructure projects until

the year 2040, estimated at US$360 billion – PIDA Priority Action Plan (2012-2020)- first set of immediate priorities - contains 51 projects

and programmes– Multi-donor funded: AfDB, Nigeria Technical Cooperation Fund, Islamic Development Bank,

DfID, EU/AU

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Conclusion

• The potential benefits of TF to developing countries are substantial & it’s in the best interest of African governments to invest in TF initiatives to boost their competitiveness & trade

• Regional Integration is a major priority for the Bank and this is reflected in all key strategies

• Hence, support to RECs & RMCs in TF Technical Assistance and Capacity Building is key, backed by a number of funding products such as the dedicated: RO Envelop, AfTra

• Understanding the Bank’s approach to TF support is key for accessing assistance for your needs

• Alignment with agreed strategies is critical

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Patrick KANYIMBONEPAD, Regional Integration & Trade Division

African Development Bank13 rue de Ghana, B.P. 323-1002, Tunis Belvedere

TunisiaTel: +216-71101683 Fax: +216.71254295

p.kanyimbo@afdb.org website: www.afdb.org

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