A GROUP I CONSTITUENCY

Annual Report IBRD, IDA, IFC and MIGA

Botswana

Burundi

Eritrea

Ethiopia

Gambia, The

Kenya

Lesotho

Liberia

Malawi

Mozambique

Namibia

Rwanda

Seychelles

Sierra Leone

Somalia

South Sudan

Sudan

Swaziland

Tanzania

Uganda

Zambia

Zimbabwe

Africa Group I Constituency

FY15 Interim Report

April 2015

Louis Rene Peter Larose

Executive Director

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Table of Contents

FOREWORD BY THE EXECUTIVE DIRECTOR .................................................................................................... IV

EXECUTIVE SUMMARY ......................................................................................................................................... IX

CHAPTER 1 ................................................................................................................................................................. 1

ECONOMIC DEVELOPMENTS AND PROSPECTS ............................................................................................... 1 1.1 Overview ........................................................................................................................................... 1 1.2 Global Economic Performance .......................................................................................................... 1 1.3 Economic Performance in High Income Countries ........................................................................... 3 1.4 Economic Performance in Developing Countries .............................................................................. 4 1.5 Economic Performance in Africa Group 1 Constituency Countries ................................................ 12 1.6 The Medium Term Outlook ............................................................................................................. 13

CHAPTER 2 .............................................................................................................................................................. 19

WORLD BANK GROUP OPERATIONS ............................................................................................................... 19 2.1 Overview ......................................................................................................................................... 19 2.2 IBRD Lending Operations ................................................................................................................ 19 2.3 IDA Lending Operations .................................................................................................................. 21 2.4 IFC Operations ................................................................................................................................. 22 2.5 MIGA Operations ............................................................................................................................ 23

CHAPTER 3 .............................................................................................................................................................. 29

SELECTED POLICY ISSUES AND UPDATES ....................................................................................................... 29 3.1 Review of the World Bank Environmental and Social Safeguards Policies ..................................... 29 3.2 Update on the Proposed World Bank Group Procurement Framework ......................................... 30 3.3 The 2015 Voice Reform ................................................................................................................... 31 3.4 Update on Global Infrastructure Facility ......................................................................................... 32 3.5 Update on Diversity and Inclusion .................................................................................................. 34

CHAPTER 4 .............................................................................................................................................................. 37

CONSTITUENCY ISSUES ....................................................................................................................................... 37 4.1 Highlights of Ninth Statutory Meeting of the Africa Group 1 Constituency ................................... 37

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TABLES PAGE 1.1 The Global Economic Performance and Outlook 2 1.2 Real GDP Growth in High Income Countries 4 1.3 Real GDP Growth in Developing Countries 5 1.4 Selected Indicators for Sub-Saharan Africa 8 1.5 Real GDP Growth Rates in Africa Group 1 Constituency 12 2.1 IBRD and IDA Commitments by Region 19 2.2. IBRD Commitments by Region 20 2.3 IBRD Gross Disbursements by Region 20 2.4 IDA Commitments by Region 21 2.5 IDA Gross Disbursements by Region 21 2.6 IFC Commitments by Region 22 2.7 IFC Approvals by Region 23 2.8 IFC Disbursements by Region 23 2.9 MIGA Operations - First Half of FY15 24 2.10 MIGA Portfolio by Region - First Half of FY 15 24 2.11 MIGA Portfolio by Sector - First Half of FY15 25 4.1 Constituency Governance Structure 39 FIGURES 1.1 Energy Prices 6 1.2 Base Metals 6 1.3 Precious Metals 6 1.4 Real GDP Growth in Developing Countries 8 1.5 Real GDP Growth for Sub-Saharan Africa 10 1.6 Projected Foregone 2015 GDP due to Ebola 11 1.7 Africa Group 1 Constituency GDP Growth Rates 13 BOXES 1 A Focus on West Africa: Economic Impact of the Ebola Outbreak 11 ANNEXES Annex 1 Organization Chart of the World Bank effective January 1, 2015 43 Annex 2 IFC Organization Chart effective November, 2014 44 Annex 3 MIGA Organization Chart effective February 11, 2015 45 Annex 4 Development Committee Member Statement – October 2014 46 Annex 5 Development Committee Communiqué – October 2014 50 Annex 6 Rotation Schedule for Constituency Chairmanship 52 Annex 7 Rotation Schedule for Constituency Panel 53 Annex 8 Rotation Schedule for Constituency Representation on the Development

Committee 54

Annex 9 Rotation Schedule for Executive Director and Alternate Executive Director 55

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Acronyms

AC Advisory Council

AFG1 Africa Group 1 Constituency

CPF Country Partnership Framework

D&I Diversity and Inclusion

DTC Developing and Transition Countries

ECA Europe and Central Asia

ESS Environmental and Social Safeguards

FDI Foreign Direct Investment

FY Fiscal Year

GC Governing Council

GCI General Capital Increase

GDP Gross Domestic Product

GIF Global Infrastructure Facility

GMR Global Monitoring Report

IBRD International Bank for Reconstruction and Development

IDA International Development Association

IFC International Finance Corporation

LAC Latin American and Caribbean

MDGs Millennium Development Goals

MENA Middle East and North Africa

MIGA Multilateral Investment Guarantee Agency

ODA Official Development Assistance

OECD Organization of the Economic Co-operation and Development

SA South Asia

SCD Systematic Country Diagnostic

SCI Selective Capital Increase

SME Small and Medium Enterprise

SSA Sub-Saharan Africa

UN United Nations

US United States

WBG World Bank Group

WDR World Development Report

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Foreword by the Executive Director

I am pleased to present the FY2015 Interim Report, the first in my tenure as Executive Director for Africa Group 1 Constituency at the World Bank Group (WBG). I take this opportunity to express my appreciation to Honorable Governors and Alternate Governors for entrusting me with the responsibility of representing our countries at the Executive Boards of the WBG. I will rely on your support and guidance for the duration of my tenure. This Interim Report comes at a confluence of notable landmarks on the timeline of the global development agenda. We stand on the eve of the deadline for the attainment of the Millennium Development Goals (MDGs)

that were set in 2000 and are peaking into the Post-2015 era of ambitious successor goals. The world is preparing for the upcoming important international conferences on Financing for Development in Ethiopia in July 2015 and on Climate Change to be held in France in December 2015. At the WBG, the newly configured Global Practices are settling down and are expected to improve the quality and delivery of service to client countries. At the same time, the WBG continues the process of reviewing its Environmental and Social Safeguards Framework and its Procurement System – both of which will have far-reaching implications for the WBG’s engagement with client countries, including those in our Constituency. As we prepare to enter the Post-2015 era, the external environment continues to evolve. The global economy has regained some momentum since the financial crisis, but vulnerabilities remain in the Euro Area and Latin America. The world seems to be at the tail end of the ‘super-cycle’ in commodity prices that had supported economic growth in developing countries. The resultant pressure on fiscal positions and currencies of several countries in our Constituency has been exacerbated by a strengthening US dollar. An historical decline in energy prices has acted as a double-edged sword by providing reprieve for oil importing countries and significant strain for oil exporting countries. In summary, over the medium-term, developing countries will pursue their development goals in a global context that will be different from that of the MDG era. They will have to contend with lower commodity prices, tighter financial conditions, increased geopolitical risks, fragility, as well as climatic and public health emergencies. Attaining the twin goals of reducing global extreme poverty to three percent by 2030 and promoting shared prosperity will be a challenge under these circumstances. In fact, WBG projections show that the twin goals can only be achieved under a scenario of much higher growth, particularly in South Asia and Sub-Saharan Africa where most of the over one billion poor people reside. Against this background, a key challenge for developing countries will be to prevent a reverse in the social and economic gains attained thus far by protecting the key drivers of economic development. Though this will mean different things for different countries, a central part of any plan will entail protecting growth, making this growth inclusive and continuing investments in physical and human capital formation even as the changing circumstances make a calling on countries’ fiscal positions. It may also entail adopting policies that promote labor intensive activities and the establishment of well-designed social safety nets for the vulnerable.

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The WBG has undertaken bold reforms with the view to better meet the needs of its client countries under these changing circumstances. Following the adoption of the corporate twin goals and the WBG Strategy in 2013 and the establishment of Global Practices in 2014, a new country model was introduced in January 2015, in which a Country Strategy Framework (CPF) and Systematic Country Diagnostic (SCD) replaced the Country Partnership Strategy. The new framework is designed to be more flexible and is expected to allow the WBG to better identify salient idiosyncratic risks prior to its engagement with client countries. The WBG’s private sector arm, the International Finance Corporation (IFC), has begun to increase its presence in Sub-Saharan Africa, with a special focus on Fragile and Conflict Affected States (FCSs). The Multilateral Investment Guarantee Agency (MIGA), the WBG’s insurance arm, is also ramping up its efforts to leverage private sector investment and create more jobs and economic opportunities for the poor. Further, the WBG has taken measures to increase its financial capacity, while the record IDA 17 replenishment of US$52 billion has provided more scope of lending to countries in our Constituency. Notwithstanding the renewed focus of the WBG to better serve its client countries, much more needs to be done. In this regard, the work program of my Office over the next year and half will center on strengthening the partnership between the WBG and Constituency countries. We will continue to remind Management that the twin goals can only become a reality if the challenges in SSA are addressed and its many opportunities are seized. Also, that the success of the Change Process will ultimately be determined by the developmental impact of WBG operations in our Constituency countries, whereby flexibility and efficiency, should be the new approach. As regards, the growing demand for development financing, our Office will extend our call for IBRD lending to IDA countries and better leveraging of IDA’s balance sheet. Our work program will also focus on advocating for improvements in the timeliness of WBG delivery in its procurement process and response to crisis situations. Further, we will continue to advocate for the resolution of long standing concerns such as the quality of the WBG portfolio in SSA and the need to build a strong pipeline of projects and programs, including regional initiatives. We shall voice out the need to find a lasting resolution to debt situations of some countries in our Constituency. Lastly, Governors can rest assured that, despite this ambitious work program, our Office will remain resolute on its insistence that the WBG steps up its effort to recruit well qualified talent from SSA, as it works to meet its Diversity and Inclusion targets at all levels of the Institution. It is my view that with the guidance of Constituency Governors and through a collaborative effort of the WBG and other development partners, the private sector, various stakeholders and indeed our fellow citizens, that our Constituency countries could begin the Post-2015 era with a greater ability to attain our developmental goals. This Report gives updates on the global economic developments and the operational performance of the WBG up to the period ending December 2014. It also provides highlights of some of the reform efforts earlier alluded to. It is my hope that Honorable Governors will find this Report informative.

Louis Rene Peter Larose Executive Director

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Executive Director and Alternate Executive Director

Mr. Louis Rene Peter Larose

Executive Director SEYCHELLES

Mr. Andrew Ndaamunhu Bvumbe

Alternate Executive Director ZIMBABWE

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Advisors and Senior Advisors to Executive Director

Wilson T. Banda Senior Advisor

Malawi

Sheku Bangura Senior Advisor Sierra Leone

Anthony Barclay Senior Advisor

Liberia

Chris Hoveka

Senior Advisor Namibia

Solome Lumala Senior Advisor

Uganda

Felleke Mammo Senior Advisor

Ethiopia

Dismas Baransaka

Advisor Burundi

Antonio Fernando Advisor

Mozambique

Chola Milambo Advisor Zambia

Allan Ncube

Advisor Zimbabwe

Edouard Ngirente Advisor Rwanda

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Administrative Staff

Mohammed Ahmed Program Assistant

Sudan

Lozi Sapele Program Assistant

Zambia

Wubalech Mekonnen Senior Executive Assistant

Ethiopia

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Executive Summary The global economy continued on a path of recovery in 2014 and expanded by 2.6 percent, up from 2.5

percent in 2013. This outturn reflected a pickup in momentum in the United States and a slowdown in

emerging market economies, especially China. Weaker demand in emerging economies and a structural

shift in the supply of crude oil caused a decline in the price for most internationally traded commodities,

particularly crude oil.

Growth in Sub-Saharan Africa (SSA) remained robust at 4.5 percent in 2014, though expansion in several of

the region’s economies moderated on account of the lower commodity prices and demand, weak flows of

foreign direct investment and supply side constraints. Further, the outbreak of Ebola in Guinea, Liberia and

Sierra Leone had severe disruptive effects. Countering these factors were strong public investment in

infrastructure, increased agriculture output and buoyant performance of the services sectors.

Over the medium-term, the global economic growth is projected to strengthen as recovery takes hold in

high income countries and developing countries grow steadily. Growth in SSA is projected to remain robust,

though softer commodity prices are expected to result in fiscal and foreign exchange pressures in some

countries. The World Bank projects global growth to rise from 3.0 percent in 2015 to 3.2 percent by 2017,

while growth for SSA is projected to rise from 4.6 percent to 5.4 percent over the same period.

Performance of the World Bank Group (WBG) remained on track during the first half of FY15. The combined

commitments of the International Bank for Reconstruction and Development (IBRD) and International

Development Association (IDA) were US$20.2 billion in the first half of FY15, up from US$13.4 billion in the

corresponding period of FY14. Commitments to SSA increased slightly to US$3.7 billion, from US$3.4 billion,

reflecting increments by IBRD. SSA remained the largest beneficiary of IDA resources, accounting for 54

percent of total commitments. IBRD Disbursements to SSA were lower at US$4.1 billion in the first half of

FY15, compared to US$4.5 billion in the corresponding period of FY14.

The activities of the International Finance Corporation (IFC) in support of private sector development had

a mixed trend in the first half of FY15. Commitments fell to US$5.1 billion from US$5.2 billion in the

corresponding period of FY14, with East Asia and Pacific and SSA regions recording the largest decreases.

Total Approvals, on the other hand, increased to US$6.2 billion from US$5.0 billion, though approvals for

SSA fell. Total Disbursements increased to US$5.3 billion from $4.5 billion, with SSA recording an increase.

The Multilateral Investment Guarantee Agency (MIGA), which insures projects against political risks,

supported 18 new projects with a gross issuance value of $1.1 billion in the first half of FY15, compared to

11 projects valued at $1.7 billion during the same period of FY14. Five (5) of these projects, with a value of

$67.0 million, were executed in our Constituency. MIGA’s portfolio in Africa was the second largest in its

overall portfolio at $12.4 billion in FY15.

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As part of its broader reform agenda, the WBG made progress in several areas of reform in FY15.

Specifically, the World Bank continued to make progress in the review of its Environmental and Social

Safeguard (ESS) Framework and Procurement policies. Also, in FY15 the Global Infrastructure Facility (GIF)

was established, while some progress was recorded in the Diversity and Inclusion (D&I) agenda.

Over a six-month worldwide consultation exercise that ended on March 1, 2015, the World Bank held

meetings in some of our Constituency countries, namely Burundi, Ethiopia, Kenya, and Tanzania to receive

views on its proposed ESS Framework. The position of the African Caucus on the proposed ESS framework,

as expressed in the 2014 Memorandum of African Governors to the WBG President, is that the proposed

policy on Indigenous Peoples was not suitable for the circumstances of African countries. Following the

closure of the first phase of the consultation process, Management will collate and review the various

submissions and prepare a new draft. According to the timeline for reform, which includes internal reviews

and clearance by the Executive Board, the new ESS Framework is scheduled to come into effect in FY16.

As regards the Procurement Policy Framework, the review is in its second phase in which feedback from

various stakeholder on a draft policy document is being considered. The revised procurement framework

is expected to be characterized by clear lines of accountability, enhanced clarity and explicit guidance to

suit the modern, complex and diverse operating environment. Further, the framework is expected to align

with international best practice. The new Framework will be finalized in FY15, while the new policy is

expected to take effect in FY16 after approval by the Executive Board.

The WBG established the Global Infrastructure Facility (GIF) in FY15, as part of its effort to mobilize private

and institutional capital for investments in infrastructure. The GIF will provide support in project design,

preparations and transactions to ensure that bankable infrastructure projects are brought to the market.

In its pilot stage (2015-2018), the GIF will only support projects in selected subsectors of energy, water and

sanitation, transport and telecommunications.

As regards, the agenda to improve Diversity and Inclusion (D&I) within in the WBG, progress remains slow.

The share of staff from SSA and the Caribbean at professional level and above is still below the target of

12.5 percent, at about 11.5 percent. In response, Senior Management of the WBG signed a statement of

commitment to D&I in December 2014 and agreed on a WBG D&I Compact, through which more than 100

additional staff from these regions will be recruited over the next two years. As regards SSA in particular,

the WBG launched a fellowship program targeted at talented African Ph.D. candidates and set up a Diversity

Talent Desk to support outreach to various African educational and research institutions.

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Chapter 1

Economic Developments and Prospects

Global Economic

Performance

Economic Performance in High Income Countries

Economic Performance

in Developing Countries

Africa Group I Constituency Countries

Medium Term Outlook

1

Chapter 1

Economic Developments and Prospects

1.1 Overview

This chapter highlights the economic

developments of 2014 and outlines the medium

term economic outlook in the various regions of

the world.

1.2 Global Economic Performance

The global economy grew by 2.6 percent in 2014,

up from 2.5 percent in 2013. This outturn was

largely due to a pickup in the recovery of high

income economies, led by momentum in the

United States (US). Growth in developing

countries was robust but lower than in 2013,

mainly due to slower growth in emerging market

economies, especially China (Table 1.1).

Growth in high income countries rose to 1.8

percent in 2014, from 1.4 percent in 2013. US

economic growth gained a strong footing on

account of healthier labor and housing markets,

accommodative monetary policy, and the easing

of fiscal consolidation. The Euro Area growth

turned positive, but remained tepid as countries

continued to grapple with post-crisis effects and

spillovers from geopolitical tensions over eastern

Ukraine. As a result, the Euro Area grew by 0.8

percent in 2014, up from contractions of 0.4

percent and 0.7 percent in 2013 and 2012,

respectively. In contrast, the Japanese economy

lost steam against a backdrop of bold policy

reforms and grew by 0.2 percent in 2014, down

from 1.5 percent in 2013.

In developing countries, aggregate output

growth slowed down to 4.4 percent from 4.9

percent in 2013, led by a deceleration of growth

in China. There were spillover effects for

economies with close trade ties with the Asian

economic powerhouse. Growth slowed

significantly in South America, mainly due to poor

performance in Brazil – a major trading partner

with China. Growth in Eastern Europe slowed

owing to the geopolitical tensions that arose over

eastern Ukraine. In contrast, economies in South

Asia (SA) and Sub-Saharan Africa (SSA)

outperformed their 2013 outturns. Growth in

South Asia was led by a rebound in India, while

growth in Sub-Saharan Africa was driven by

public investments in infrastructure and robust

performance of the services sectors.

Inflation remained moderate worldwide, partly

reflecting persistent output gaps in most regions.

Inflation in high income countries fell below most

countries’ targets, raising concerns among

policymakers, especially in the Euro Area, about

the threat of entrenched deflationary

expectations and lower private consumption.

Inflation in other regions remained low, with the

exception of Latin America and Caribbean (LAC)

and the Middle East and North Africa (MENA),

where currency depreciation and supply side

rigidities placed upward pressure on inflation. A

sharp drop in the price of crude oil in the second

half of 2014, contributed to lower production and

transportation costs for both high income and

developing countries and is expected to dampen

inflation in 2015.

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The global economic outlook remains favorable,

with a projection of further economic recovery in

high income countries and steady growth in

developing countries. This outlook is subject to a

number of downward risks, however, including

the impact of lower commodity prices, the

tightening of conditions in the international

financial markets, fragile demand in the Euro

Area and Japan, uncertainties about the future of

the euro and the effects of continued geopolitical

tensions in Eastern Europe. On the upside, the

recovery in the US and UK is expected to lend

support to exports for their trading partners,

while lower oil prices will be a boon for oil

importers. Considering these downside and

upside risks, the World Bank projects global

growth to rise to 3.0 percent in 2015 from 2.6

percent in 2014, and further accelerate to 3.3

percent and 3.2 percent in 2016 and 2017,

respectively.

Table 1.1: The Global Economic Performance and Outlook (Percentage change from previous year except commodity prices and interest rates)

2013 2014e 2015f 2016f 2017f

Real GDP Growth 1

World 2.5 2.6 3.0 3.3 3.2

High Income Countries 1.4 1.8 2.2 2.4 2.2

Developing Countries 4.9 4.4 4.8 5.3 5.4

World Trade Volume (GNFS2) 2.7 2.6 4.1 5.2 5.4

Manufactures Unit Export Value 3 -1.2 -1.4 0.5 2.2 1.4

Inflation

High Income 2.0 1.6 1.4 - -

Developing Countries 6.4 7.4 7.6 - -

Non-Oil Commodities -8.6 -7.2 -2.5 -0.6 0.1

Oil Price (US$ Per Barrel) 4 104.1 96.2 52.5 56.4 60.3

Oil Price 1.0 -0.1 -0.5 0.1 0.1

Interest Rates (Percent)

US dollar, 6-Months 0.7 0.4 0.4 0.7 1.3

Euro, 6-Months 0.8 0.3 0.2 0.2 0.5

Source: World Bank

Notes 1. Real Aggregate GDP growth rates calculated using constant 2010 dollars GDP weights. 2. GNFS = Goods and Non-Factor Services. 3. The unit value index of manufactured exports from major economies expressed in US dollars. 4. Average of spot price for Dubai, Brent and West Texas Intermediate.

e = estimate; f = forecast.

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1.3 Economic Performance in High Income

Countries

Economic growth in high income countries was

characterized by divergent trends. The US and

the United Kingdom (UK) registered growth rates

above their pre-crisis levels, while Japan and

other countries in the Euro Area struggled to

record consistent recovery. Against this

backdrop, high income countries are expected to

continue on a slow path of recovery, with growth

rising from 1.8 percent in 2014 to 2.2 percent in

2015 and 2.4 percent in 2016 (Table 1.2).

The US economic performance continued to

outpace that of other major high income

countries in 2014. After posting less than

expected growth in the first half of the year, due

to bad weather conditions and a large decline in

exports, the US economy regained its growth

momentum and expanded by 2.4 percent from

2.2 percent in 2013. Growth was underpinned by

an improving labor market, a healthier housing

market, accommodative monetary policy, and

the easing of fiscal consolidation. World Bank

projections show that growth in the US will be

robust and reach 3.2 percent in 2015, up from 2.4

percent in 2014.

The UK economy grew by 2.6 percent in 2014 on

account of a robust housing market and stronger

business investment. World Bank projections

show that growth will reach 2.9 percent in 2015.

Inflation was significantly below the 2 percent

target in 2014 and is expected to remain low until

2015, partly due to continued low oil prices.

In contrast, the economies of the Euro Area and

Japan recorded weaker growth in 2014. Growth

in the Euro Area was estimated at 0.8 percent in

2014, with relatively strong growth in Ireland and

Spain but tepid growth in other countries that

continue to struggle with post-crisis challenges.

Bank recapitalization efforts and deleveraging

continued to constrain banking sector lending in

some parts of the Euro Area. Financial

fragmentation, high unemployment, structural

rigidities, and continued fiscal challenges are

likely to also dampen economic growth.

However, better growth performance is expected

in Ireland and Spain due to gains in cost

competitiveness and strengthening of corporate

balance sheets. World Bank projects growth in

the Euro Area at 1.1 percent in 2015 and 1.6

percent in 2016.

In Japan, growth took a dip in 2014, as the

economy struggled to recover from a sales tax

increase in April, while exports remained

subdued despite a weak yen. The central bank

announced additional monetary stimulus to

bolster growth and prevent a slowdown in

inflation. As a result, the World Bank projections

indicate that the Japanese economy will rebound

marginally to 1.2 percent in 2015 and to 1.6

percent in 2016, before decelerating to 1.2

percent in 2017.

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Table 1.2: Real GDP Growth in High Income Countries (Percent change from previous year)

2013 2014e 2015f 2016f 2017f

All High Income Countries 1.4 1.8 2.2 2.4 2.2

OECD Countries 1.3 1.7 2.3 2.4 2.1

Euro Area -0.4 0.8 1.1 1.6 1.6

Japan 1.5 0.2 1.2 1.6 1.2

United States 2.2 2.4 3.2 3.0 2.4

Non-OECD Countries 2.4 2.5 0.9 2.4 2.9

Source: World Bank

Notes: e = estimate; f = forecast

1.4 Economic Performance in Developing

Countries

Growth in developing countries eased in 2014

from 4.9 percent to 4.4 percent on account of a

slowdown in emerging market economies. The

slower than expected growth was due to export

weakness, setbacks to confidence due to

uncertainties arising from policies and electoral

processes, social and labor tensions and slow

structural reforms, as well as fiscal and monetary

policy tightening. Growth in low-income

countries on the other hand remained robust at

6 percent in 2014, driven by rising public

investment, robust capital inflows and

remittances, good harvests and improved

security in some conflict affected countries. Over

the medium term, growth in developing

countries is expected to rebound to 4.8 percent

in 2015 and strengthen to 5.3 percent in 2016

and 5.4 percent in 2017 (Table 1.3 and Figure

1.4).

Commodity prices softened in 2014, and had

divergent effects on the performance and

outlook of the various categories of developing

economies. A structural shift in the supply of

crude oil on the market, following growth in US

Shale production, and weakening global demand

culminated into an historical slide in the price of

oil beginning in mid-2014. The twelve-month

average price of oil in 2014 fell to US$96.2 per

barrel, from US$104.1 per barrel in 2013. A

decision in November by OPEC to maintain oil

supplies at previous levels in the wake of

increased supplies from the US gave little support

to the oil price, extending the decline into 2015

(Figure 1.1).

The impact on oil exporting economies has been

severe, particularly for those with large trade and

fiscal exposures and insufficient buffers to

cushion the price shock. Further, the price shock

uncovered inefficiencies that had been

camouflaged by favorable prices. Venezuela,

Nigeria, Angola, Iran and Iraq saw their exports

receipts decline and foreign reserves come under

pressure as a result of the drop in the price of oil.

In contrast, Saudi Arabia, Kuwait and Qatar,

which have both relatively healthy buffers and

low breakeven production costs, showed more

resilience under these circumstances. For oil

importers, the drop in prices eased production

and transportation costs and lowered inflationary

pressures, though this was partly countered by a

stronger US dollar.

Prices of base metals, precious metals and energy

trended downwards in tandem with softening

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demand from China (figures 1.2 and 1.3). The

medium term outlook on commodity prices

points to lower prices in the context of sustained

supplies in the oil market and a slowdown in

economic activity in China. Adjusting to these

external developments will be the leading

challenge for the economic development of

developing countries over the medium term.

In East Asia and Pacific (EAP), growth slowed as

the region’s economies continued to cool off

following an economic rally that saw several

economies growing above their potential.

Despite the drop in growth from 7.2 percent in

2013 to 6.9 percent in 2014, EAP remained the

fastest growing region in the world. This

realignment of growth to its potential was mainly

due to domestic developments. In China, the

government continued to implement measures

to contain financial vulnerabilities, while

instituting offsetting measures to taper the

slowdown. As a result, economic growth

decelerated to 7.4 percent in 2014 from 7.7

percent in 2013. Excluding China, the region’s

growth declined to 4.6 percent from 5.3 percent

over the same period.

The central banks of Indonesia, Malaysia,

Mongolia and the Philippines raised policy rates

during 2014 to ease price pressures and to

contain credit growth. Conversely, authorities in

China, Thailand, and Vietnam cut rates to support

economic activity and stem deflationary risks as

inflation rates declined sharply. Apart from

Malaysia, where the structural deficit remained

at over 3 percent of GDP, fiscal deficits in the

region weakened. Robust demand for labor,

strong remittances and buoyant capital markets

supported consumption, countering the effect of

slow investment growth.

Table 1.3: Real GDP Growth in Developing Countries (Percent change from previous year)

2013 2014 e 2015f 2016f 2017f

Developing Countries 4.9 4.4 4.8 5.3 5.4

East Asia and Pacific 7.2 6.9 6.7 6.7 6.7

China 7.7 7.4 7.1 7.0 6.9

Europe and Central Asia 3.7 2.4 3.0 3.6 4.0

Turkey 4.1 3.1 3.5 3.7 3.9

Latin America and Caribbean 2.5 0.8 1.7 2.9 3.3

Brazil 2.5 0.1 1.0 2.5 2.7

Middle East and North Africa 0.5 1.2 2.5 3.0 3.5

Egypt 2.1 2.2 3.5 3.8 4.0

South Asia 4.9 5.5 6.1 6.6 6.8

India 5.0 5.6 6.4 7.0 7.0

Sub-Saharan Africa 4.2 4.5 4.6 4.9 5.1

Nigeria 5.4 6.3 5.5 5.8 6.2

Memo:

All Developing Countries Excl. BRICs 4.1 3.5 5.0 4.9 5.1

Source: World Bank

Notes: e = estimate; f = forecast

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In East and Central Asia (ECA) geopolitical events

of the Ukraine conflict, spillovers of economic

disruptions in Russia, weak demand from the

Euro Area and slowing capital inflows weighed

heavily on economic performance. In Russia, the

economy slowed further to 0.7 percent in 2014

from 1.3 percent and 3.4 percent in the previous

two years, mainly due to tensions with Ukraine,

sanctions and falling crude oil prices. The ruble

depreciated against the US dollar by 75 percent

as sanctions cut access to international capital

markets for Russian banks and corporates. While

currency depreciation and rising public spending

supported exports and industrial production

towards the close of 2014, borrowing and

rollover costs rose sharply while business

confidence and investment sagged. Further,

retaliatory sanctions by Russia exacerbated rising

inflation, which in turn adversely affected

household real income and spending. The

performance in Ukraine was much grimmer, with

an output contraction of 8.5 percent, 85 percent

depreciation of the currency and a widening fiscal

deficit.

The performance of Russia and Ukraine had

telling effects on the neighboring countries due

to their strong economic ties. Belarus,

Kazakhstan, Uzbekistan, Tajikistan and the Kyrgyz

Republic registered declines in their volumes of

trade and remittances. Turkey was the bright

spot in the region with economic growth of 3.1

percent in 2014, driven by government

expenditure, export growth and capital flows

diverted from Russia. These offset weaknesses in

consumption and investment in Turkey.

Growth in Latin America and the Caribbean (LAC)

declined substantially to 0.8 percent in 2014, a

third of the 2.5 percent achieved in 2013, due to

declining commodity prices, slowdown of growth

Figure 1.1

Figure 1.2

Figure 1.3

Source: World Bank

Commodity Prices

7

in major trading partners and domestic tensions

in some of the large economies. With the

exclusion of the outlier year of 2009, this outturn

was the lowest since the Argentine crisis of 2002.

Notably, growth in South America decelerated

sharply from 2.9 percent in 2013 to 0.2 percent

in 2014, while that in Mexico and Central America

collectively picked up to 2.4 percent in 2014 due

to a US-induced growth. In the Caribbean, the

Dominican Republic was largely responsible for

the strong growth of 4.6 percent in 2014.

In Brazil, the largest economy in the region, the

protracted decline in commodity prices, weak

growth in its major trading partners, severe

droughts in agriculture areas, election

uncertainty, and contracting investment

contributed to the steep economic decline from

2.5 percent in 2013 to 0.1 percent in 2014.

Argentina went into recession in the second half

of 2014, following depressed business and

consumer confidence. A default on international

obligations on account of a fall out with some

investors, caused a slowdown in capital inflows

that limited its access to international foreign

markets. Domestic activity was further hampered

by restrictions meant to curtail import demand

that made it difficult for firms to acquire capital

and intermediary goods. Against a backdrop of a

narrowing trade surplus, these factors combined

to weaken the local currency and raise inflation

to around 40 percent. As a result, and in spite of

a bumper soy harvest, the Argentine economy

contracted by 1.5 percent in 2014, from 2.9

percent in 2013.

Growth in the MENA region recovered to 1.2

percent in 2014, from 0.5 percent in 2013. The

pickup in growth was driven by an uptick in oil

production and improved confidence in

manufacturing and exports as political tensions

eased in some countries. In the oil exporting

countries, output was volatile though positive

and recovered from -0.8 percent in 2013 to 0.3

percent in 2014. Fiscal performance, however,

deteriorated due to lower oil production and

declining prices. Oil importing countries on the

other hand, recorded an average growth of 2.6

percent in 2014. The decline in oil prices gave

these countries the opportunity to create fiscal

space by restructuring petroleum subsidies.

Economic growth in South Asia (SA) remained

robust and rallied to 5.5 percent from 4.9 percent

in 2013. The revival was led by a recovery in

India, where growth was at 5.6 percent in 2014

compared to 5.0 percent in 2013 and 4.7 percent

in 2012. Apart from Afghanistan, improved

political stability supported growth in most of the

countries in the Region. In Bangladesh,

agriculture and services sectors picked up,

making up for the losses in the industrial sector,

as social unrest abated. In Sri Lanka,

reconstruction activities since the end of the civil

war in 2009 buoyed growth to an average of 7.5

percent. This was augmented by robust exports,

strong foreign direct investment (FDI) and

remittance flows in 2014. Political unrest in

Pakistan in the second half of 2014 and the

transition following presidential elections in

Afghanistan weighed on activity in the two

countries.

Robust exports, strong flows of FDI and

remittances, as well as declining oil import bills

helped to narrow current account deficits, and

offset huge trade deficits. The region also saw a

rise in capital inflows as countries tapped into

international bond markets and attracted foreign

portfolio investments.

8

Figure 1.4: Real GDP Growth in Developing Countries

(Percent change from previous year)

Source: World Bank

Table 1.4: Selected Indicators for Sub-Saharan Africa (Annual percentage changes unless otherwise indicated)

Indicator 2013 2014 e 2015 f 2016f 2017f

Developing Countries 4.9 4.4 4.8 5.3 5.4

SSA GDP growth 4.2 4.5 4.6 4.9 5.1

GDP per capita (constant 2010 US$) 1.7 2.0 2.1 2.4 2.6

Private consumption 12.1 4.4 4.4 4.5 4.7

Public consumption 3.7 3.9 4.4 4.4 4.4

Fixed investment 4.1 5.1 6.0 6.1 6.2

Exports, GNFS -7.3 3.4 3.9 4.1 4.2

Imports, GNFS 6.0 3.3 4.5 4.3 3.9

Net exports, contribution to growth -4.1 -0.1 -0.3 -0.2 0.0

SSA GDP growth, excl. South Africa 5.1 5.6 5.4 5.7 5.9

Current Account Balance (% of GDP) -2.8 -2.9 -3.9 -4.0 -3.8

Fiscal Balance (% of GDP) -2.9 -2.5 -2.2 -2.2 -2.1

Source: World Bank Note:

e = estimate, f = forecast GNFS = Goods and Non-Factor Services

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

All DCs East Asiaand Pacific

Europe andCentral Asia

LatinAmerica and

Caribbean

Middle Eastand N. Africa

Egypt South Asia Sub-SaharanAfrica

2013 2014e 2015f 2016f 2017f

9

Growth was robust in Sub-Saharan Africa (SSA),

though expansion in several economies

moderated on account of weaker global demand,

softening commodity prices and weak FDI flows,

as well as supply side and infrastructure

constrains. Countering these factors were strong

public investment in infrastructure, increased

agriculture output and buoyant performance of

the services sectors. As a result, the region’s

economy grew by 4.5 percent, slightly higher

than the 2013 performance and developing

country average of 4.2 percent and 4.4 percent,

respectively (Table 1.4 and Figure 1.5).

While growth remained robust across the

subcontinent, most countries recorded a dip in

growth, with a few registering improvements

over their 2013 performances. Growth in Nigeria

was robust on account of strong growth in non-

oil sectors. The South Africa economy, on the

other hand, decelerated to 1.4 percent, from 1.9

percent in 2013, as it grappled with prolonged

labor disputes that disrupted production in

mining and manufacturing. Further, structural

constraints in the energy sector held back

growth, casting a shadow on its outlook of a

gradual recovery. Growth was slower in Angola

but remained robust at 4.4 percent from 6.8

percent in 2014, mainly due to lower oil

production. The outbreak of Ebola in Guinea,

Liberia and Sierra Leone had severe disruptive

effects in these countries, with ripple effects in

the tourism sectors of other countries (Box 1).

South Sudan recorded some improvement in

performance, following the resumption of oil

exports in 2013, but was later disturbed by

internal conflicts in two of the country’s four oil

producing regions. Output in Cote d’Ivoire and

Mali grew on account of improved political

stability and a pickup in investments.

Governments in SSA continued with the

aggressive effort to bridge the infrastructure gap

by investing in several sectors including ports,

electricity and transport. This notwithstanding,

fiscal performance for many countries improved,

as expenditure cuts, higher revenues and lower

international financing costs helped cushion

budgets. Specifically, deficits narrowed on

account of an increase in non-oil revenue

(Nigeria), cuts in expenditure (Senegal) and

higher revenue collections (Burkina Faso). In

other countries, however, fiscal deficits widened

on account of higher wage bills (Kenya and

Zambia), decline in oil revenue (Angola) and

higher expenditures (Mali, Niger and Uganda).

Overall, fiscal deficits as a share of regional GDP

declined to 2.5 percent 2014, from 2.9 percent in

2013.

Inflation in SSA declined in 2014 to 7.6 percent

from 8.6 percent in 2013. However, Ghana and

Zambia, which registered significant currency

depreciation in the first half of the year, saw a

buildup in inflation in the second half. Nigeria saw

an uptick in inflation due to insurgencies by the

rebel group Boko Haram in the northeast of the

country that disrupted regular food supply.

Inflation, however, is expected to remain in single

digits due the subduing effects of the fall in oil

prices.

10

Figure 1.5: Real GDP Growth for Sub-Saharan Africa (Percent change from previous year)

Source: World Bank Notes: e = estimate; f = forecast.

4.04.2

4.5 4.6

4.95.1

4.6

5.1

5.65.4

5.75.9

4.8 4.9

4.4

4.8

5.3 5.4

2012 2013E 2014F 2015F 2016F 2017F

All SSA GDP growth All SSA GDP growth, excl. South Africa

Developing Countries

11

Box 1: A Focus on West Africa: Economic Impact of the Ebola Outbreak The outbreak of Ebola in early 2014 severely disrupted economic activity in Guinea, Liberia and Sierra Leone

(Figure 1.6). The effects of the outbreak cut across most sectors of the three neighboring countries, with

trade and transportation sectors being the hardest hit, due to travel restrictions and border closures. There

were also spillover effects, as global fear of the pandemic translated into a fall in tourist demand, even for

African countries distant from the affected countries. The three countries at the epicenter of the crisis had

to contend with debilitating shocks to macroeconomic stability and growth, and therefore revised their

projections to take account of revenue shortfalls and reallocations of resources towards Ebola-related

activities.

In Guinea, economic growth slowed down to 0.5 percent in 2014 from 2.5 percent in 2013, mainly due to

contractions in the trade and transport sectors. Though the mining and agriculture sectors exhibited some

resilience in 2014, and are poised to grow in 2015, the overall economy is projected to contract by 0.2

percent. In Liberia, agriculture and manufacturing sectors were severely affected, while iron ore mining

faced some disruptions and the suspension of expansion plans. The Liberian economy is estimated to have

slowed down to 2.5 percent in 2014 from 8.7 percent in 2015. Similarly, the Sierra Leonean economy, which

was the fastest growing in Sub-Saharan Africa in 2013 at 20.1 percent, is estimated to have slowed down to

4.0 percent in 2014, largely on account of disruptions to production and indefinite deferments of investment

plans in several of the country’s promising sectors. The iron ore mining sector buckled under the weight of

a combination of Ebola-induced suspensions of operations in key mining projects and weakening iron ore

prices. Projections for Sierra Leone are of a 2.0 percent contraction in output in 2015 and a slow recovery

thereafter.

Figure 1.6

Source: World Bank

$180.0

$540.0

$920.0

$-

$200.0

$400.0

$600.0

$800.0

$1,000.0

Liberia Guinea Sierra Leone

Projected Foregone GDP 2015 due to Ebola ($'mn)

12

1.5 Economic Performance in Africa Group 1 Constituency Countries

Output growth for the majority of countries in

Africa Group 1 Constituency (AFG1) slowed down

in 2014. Eleven countries outperformed the

average SSA growth rate of 4.5 percent, down

from twelve countries in the 2013. Growth rates

ranged from 2.0 percent to 30.7 percent,

compared to the previous range of -26.7 percent

to 20.1 percent (Table 1.5 and Figure 1.7). The

fastest growing economies in 2014 were South

Sudan (30.7 percent), Mozambique (7.2 percent),

Tanzania (7.0 percent) and Ethiopia (6.7 percent).

Table 1.5: Real GDP Growth Rates in Africa Group 1 Constituency

(Percent change from previous year)

2013 2014 e 2015 f 2016f 2017f

ALL SSA 4.2 4.5 4.6 4.9 5.1

Botswana 5.2 4.5 4.6 4.9 5.0

Burundi* 4.5 4.7 4.8 5.0 5.2

Eritrea 1.3 3.2 3.0 4.0 4.3

Ethiopia 10.4 6.7 6.9 6.6 6.7

Gambia, The 5.6 5.7 5.3 4.8 4.6

Kenya 5.7 5.4 6.0 6.6 6.5

Lesotho 5.9 4.6 4.7 4.5 4.4

Liberia* 8.7 2.5 4.5 - -

Malawi 5.0 4.2 4.6 5.0 5.2

Mozambique 7.1 7.2 8.0 8.1 8.2

Namibia 5.1 4.2 4.3 4.1 4.0

Rwanda 4.6 6.0 6.5 7.0 7.1

Seychelles 5.3 2.6 2.8 3.0 3.3

Sierra Leone 20.1 4.0 -2.0 2.5 2.7

South Sudan* -26.7 30.7 -7.5 - -

Sudan -6.0 2.6 2.5 2.8 3.0

Swaziland 2.8 2.0 2.2 2.6 2.8

Tanzania 7.0 7.0 7.2 6.8 7.0

Uganda 5.9 6.3 6.6 6.9 7.0

Zambia 6.4 6.4 6.3 6.5 6.7

Zimbabwe 4.5 3.1 3.2 3.7 3.4

Source: World Bank and IMF

Notes e = estimate; f = forecast * = IMF Staff estimates

13

Figure 1.7: Africa Group 1 Constituency GDP Growth Rates (%)

Source: World Bank and IMF Notes: e = estimates; f = forecast

1.6 The Medium Term Outlook

Over the medium term, the global economy is

expected to strengthen on account of steady

growth in both high income and developing

economies. Growth is expected to firm up in high

income economies to 2.2 percent and 2.4 in 2015

and 2016, respectively, then slow down to 2.2

percent by 2017. The US economy is expected

maintain robust growth, while recovery in the

Euro Area will remain weak. Growth in

developing countries is projected to be robust,

gradually strengthening over the medium term in

all regions, with the exception of the EAP region.

Growth is expected to pick up to 4.8 percent in

2015, from 4.4 percent in 2014, and strengthen

to 5.3 percent and 5.4 percent in 2016 and 2017,

respectively.

Three global developments will influence

economic performance over the medium term.

First, lower oil prices will have divergent effects

for oil importers and exporters. As a

consequence, the response by policymakers will

be different depending on the expected impact

of lower oil prices on output and inflation.

Second, tepid growth in the Euro Area and

uncertainties surrounding Greece’s position in

the economic block pose notable downside risks

to growth. This is further compounded by the

spillover of economic stress in Ukraine to other

economies in Eastern Europe. Third, a tightening

in global financial conditions, when US monetary

authorities raise rates, accompanied by the US

dollar appreciation will increase pressure on

some developing countries’ currencies.

Countering these factors will be continued

-10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0

All SSASouth SudanMozambique

TanzaniaEthiopiaZambiaUganda

RwandaGambia, The

KenyaBurundiLesotho

BotswanaMalawi

NamibiaSierra Leone

EritreaZimbabwe

SeychellesSudan

Liberia 2014e 2015f

14

growth in the US and the pickup in activity in

South Asia, especially in India.

World Bank projections suggest that global

inflation in 2015 will remain low in most regions.

Inflation is expected to remain low in 2015 and

2016 despite the improving economic

environment, partly due to lower oil prices and a

strengthening of the US dollar. This outlook on

inflation, combined with concerns about possible

spillover effects of tepid growth in the Euro Area,

may prompt the US monetary authorities to

gradually tighten policy beginning in mid-2015.

In the Euro Area, inflation is expected to rise but

remain under two percent, even as recovery

continues. Inflation in most developing countries

is expected to be higher but will remain in single

digits, with the aid of slower energy prices.

Inflation, however, is expected to remain

relatively high in LAC and MENA regions due to

weaker external demand, currency weaknesses

and political tensions.

In EAP region, structural reforms, gradual

withdrawal of US stimulus and continued

measures to tighten credit will slow investment

and dampen growth in China from 7.1 percent in

2015 to 6.9 percent by 2017. The pick-up in other

countries will, however, offset this dampening

effect. Therefore, growth in EAP is expected to

ease to 6.7 percent in 2015 and remain at that

level till 2017. In contrast, a pickup in investment

is expected to drive economic growth in SA to 6.1

percent, 6.6 percent, and 6.8 percent in 2015,

2016 and 2017, respectively. Continued recovery

in India will boost growth in the smaller

economies in the region, which rely on India for

official flows, remittances and tourism.

Growth in ECA is expected to recover

moderately, against the backdrop of gradual

recovery in the Euro Area, lower energy prices

and weaker trade for countries with strong ties to

Russia and Ukraine. Economic expansion in the

region will gradually strengthen to 3.0 percent,

3.6 percent and 4.0 percent in 2015, 2016 and

2017 respectively. Similarly, growth in the MENA

region will steadily pick up to 2.5 percent, 3.8

percent and 4.0 percent in 2015, 2016 and 2017,

respectively. A rebound in oil production among

oil exporters and recovery among the oil

importing countries will be the main drivers of

the growth. Political uncertainty and security

concerns will, however, continue to place major

downside risks to this outlook.

Output growth in LAC is projected to rise to 1.7

percent, 2.9 percent and 3.3 percent in 2015,

2016 and 2017, respectively. Rising export

demand and strengthening investment will partly

support this acceleration.

The economic outlook for SSA remains favorable,

though lower commodity prices and a possible

tightening of financing conditions in the

international financial markets present some

threats to this outlook. Economies dependent on

export of primary goods such as oil and base

metals are expected to register a deterioration in

net exports and fiscal performance. This will

place local currencies and foreign reserves under

pressure. Countries that built up buffers during

the course of the ‘super-surge’ in commodity

prices will be better placed to adjust to the price

change that is expected to prevail over the

medium term. The region is expected to see a

flattening in FDI on account of the slowdown in

emerging markets and lower commodity prices.

Countries affected by Ebola are expected to

begin to recover after contracting in 2015.

The South African economy is poised to register

slow but steady growth over the medium term as

labor relations improve and external demand

15

from the Euro Area firms. Energy bottlenecks will,

however, continue to take a toll on economic

growth. Inflation is expected to rise in Nigeria

with the depreciation of the naira, but growth is

projected to remain robust due to strong

performance of the non-oil sectors. Growth in

the East African economies of Ethiopia, Kenya,

Tanzania, Uganda and Rwanda is expected to

remain strong on account of robust public

investment, recovery in agriculture and tourism,

and robust consumption. Growth in SSA is

projected at 4.6 percent in 2015, and at 4.9

percent and 5.1 percent in 2016 and 2017,

respectively.

The outlook for countries in Africa Group 1

Constituency remains favorable, despite the

decline in commodity prices. Most countries in

the Constituency are projected to register

positive growth rates in 2015. Growth in some

countries will, however, remain constrained by

the aftereffects of the Ebola crisis, floods and

fragility.

Chapter 2

World Bank Group Operations

IBRD Lending Operations

IDA Lending

Operations

IFC Operations

MIGA Operations

19

Chapter 2

World Bank Group Operations

2.1 Overview

This chapter gives an account of the performance

of the World Bank Group (WBG) operations

during the financial year 2015 (FY15).

WBG performance remained on track during the

first half of FY15. Commitments for the entire

Group rose by 34 percent, while Revenues were

also 17 percent up compared to the same period

in FY14. The pipeline for the rest of FY15 to June

2015 is also strong. IDA disbursements, which

reflect implementation, are largely on track.

The combined commitments1 for IBRD and IDA

during the first half of FY15 rose by 50.7 percent

to US$20.2 billion over the first half of FY14

(Table 2.1). This was largely on account of

increments in commitments to Europe and

Central Asia, which rose to US$5.1 billion from

US$0.3 billion in the corresponding period of

FY14, and to East Asia and Pacific region, which

rose to US$4.1 billion from US$2.7 billion in the

first half of FY14.

1 Legal obligation to provide financial products to clients for Board approved projects.

Table 2.1: IBRD and IDA Commitments by Region (US$ billion)

Region First half FY14

First half FY15

Sub-Saharan Africa 3.3 3.7

East Asia and Pacific 2.7 4.1

Europe and Central Asia 0.3 5.1

Latin America and Caribbean 2.9 3.5

Middle East and North Africa 1.1 2.0

South Asia 3.1 1.8

Total 13.4 20.2

Source: World Bank

2.2 IBRD Lending Operations

IBRD commitments were significantly higher in

the first half of FY15 than they were in the first

half of FY14. This notwithstanding, total

disbursements2 were lower, mainly due to lower

disbursements in EAP.

Total IBRD commitments rose from US$6.9 billion

in the first half of FY14 to US$ 14.4 billion in the

first half of FY15 (Table 2.2). The largest share of

IBRD commitments (35 percent) went to Europe

and Central Asia, followed by East Asia and Pacific

(25 percent) and Latin America and Caribbean

regions. As stated in the 2014 Interim Report,

IBRD commitments to Sub-Saharan Africa

continued to be relatively small as most countries

in the region are only eligible for IDA funding. The

2 Principal outflows from to clients for approved projects.

20

demand for IBRD lending by SSA countries is

therefore likely to increase over the medium

term as more countries graduate to middle

income status.

IBRD disbursed US$11.7 billion in development

credits and grants during the first half of FY15

(Table 2.3). These amounts were about US$1.0

billion below disbursements made during a

comparable period in FY14, mainly due to a

decline in Latin America and Caribbean region.

Disbursements to SSA were lower at US$4.1

billion in the first half of FY15, compared to

US$4.6 billion in the corresponding period of

FY14.

Table 2.2: IBRD Commitments by Region (US$ billion except where shown otherwise)

Region First half Share (%)

FY14 FY15 FY14 FY15

Sub-Saharan Africa 0.1 0.6 5.0 4.0

East Asia and Pacific 2.1 3.6 30.0 25.0

Europe and Central Asia 0.3 5.0 4.0 35.0

Latin America and Caribbean 2.9 3.4 41.0 24.0

Middle East and North Africa 1.1 1.8 15.0 13.0

South Asia 0.7 0.0 10.0 0.0

Total 6.9 14.4 100 100

Source: World Bank

Table 2.3: IBRD Gross Disbursements by Region (US$ billion except where shown otherwise)

Region First half Share (%)

FY14 FY15 FY14 FY15

Sub-Saharan Africa 4.6 4.1 36.0 35.0

East Asia and Pacific 2.1 0.3 16.0 3.0

Europe and Central Asia 0.3 1.8 2.0 15.0

Latin America and Caribbean 4.6 1.1 36.0 9.0

Middle East and North Africa 1.1 3.8 9.0 32.0

South Asia 0.1 0.6 1.0 5.0

Total 12.8 11.7 100 100

Source: World Bank

21

2.3 IDA Lending Operations

Total IDA commitments declined from US$6.5

billion in the first half of FY14 to US$5.8 billion in

the corresponding period of FY15 (Table 2.4). IDA

Commitments declined in most regions, with the

largest decline of US$0.6 billion recorded in the

South Asia region. Sub-Saharan Africa remained

the largest beneficiary of IDA resources during

the first half of FY15, accounting for 54 percent

of total commitments. Although the share of

South Asia decreased from 37 percent in the first

half of FY14 to 31 percent in the first half of FY15,

it still remained the second largest IDA

beneficiary at 31.0 percent.

In contrast to IDA commitments, gross

disbursements rose from US$5.4 billion in the

first half of FY14 to US$5.8 billion in the

corresponding period in FY15 (Table 2.5). This

increase mostly reflected an increase in

disbursements to Sub-Saharan Africa region.

Table 2.4: IDA Commitments by Region

Region First half (US$ billion) Share (%)

FY14 FY15 FY14 FY15

Sub-Saharan Africa 3.3 3.1 51.0 54.0

East Asia and Pacific 0.7 0.5 10.0 9.0

Europe and Central Asia 0.1 0.06 1.0 1.0

Latin America and Caribbean 0.0 0.08 0.0 1.0

Middle East and North Africa 0.0 0.2 0.0 3.0

South Asia 2.4 1.8 37.0 31.0

Total 6.5 5.8 100 100

Source: World Bank

Table 2.5: IDA Gross Disbursements by Region

Region First half (US$ billion) Share (%)

FY14 FY15 FY14 FY15

Sub-Saharan Africa 2.9 3.2 51.0 54.0

East Asia and Pacific 0.8 0.9 10.0 9.0

Europe and Central Asia 1.1 1.2 1.0 1.0

Latin America and Caribbean 0.2 0.2 0.0 1.0

Middle East and North Africa 0.3 0.2 0.0 3.0

South Asia 0.1 0.1 37.0 31.0

Total 5.4 5.8 100 100

Source: World Bank

22

2.4 IFC Operations

The activities of the International Finance

Corporation (IFC) in support of private sector

development had a mixed trend in the first half of

FY15, compared to the same period in FY14.

Commitments declined, but approvals3 and

disbursements increased.

IFC commitments decreased by 1.2 percent from

US$5.2 billion in the first half of FY14 to US$5.1

billion in the corresponding period of FY15 (Table

2.5). East Asia and Pacific region recorded the

largest decrease, from US$988 million, followed

by Sub-Saharan Africa, where commitments

declined from US$995 million to US$809 million.

Despite the drop in total commitments to Sub-

Saharan Africa, the number of projects approved

increased to 39 in the first half of FY15 from 32 in

the corresponding period of FY14.

Approvals during the first half of FY15 increased

to US$6.2 billion from US$5.0 billion in the

corresponding period of FY14 (Table 2.6). All the

regions recorded increases, except South Asia

and Sub-Saharan Africa regions where approvals

decreased from US$904.0 million to US$858

million and from US$501 million to US$491

million, respectively.

Total disbursements increased to US$5.3 billion

in the first half of FY15 from US$4.5 billion during

the first half of FY14. Disbursements to Sub-

Saharan Africa region increased from US$443

million in the first half of FY14 to US$756 million

in the first half of FY15 (Table 2.7).

Table 2.6: IFC Commitments by Region

Region First half (US$ million) Share (%)

FY14 FY15 FY14 FY15

Sub-Saharan Africa 995 809 19 16

East Asia and Pacific 668 734 13 14

Europe and Central Asia 988 585 19 11

Latin America and Caribbean 1,417 1,466 27 29

Middle East and North Africa 229 430 4 8

South Asia 507 476 10 9

World 376 619 7 12

Total 5,180 5,119 100 100

Source: IFC

3 Authorization by Board/Management to proceed to Commitment in accordance with Official Procedures

23

Table 2.7: IFC Approval by Region

Region First half (US$ million) Share (%)

FY14 FY15 FY14 FY15

Sub-Saharan Africa 904 858 18 14

East Asia and Pacific 923 1,524 19 25

Europe and Central Asia 989 1,033 20 17

Latin America and Caribbean 1,211 1,223 24 20

Middle East and North Africa 290 316 6 5

South Asia 501 491 10 8

World 164 745 3 12

Total 4,982 6,189 100 100

Source: IFC

Table 2.8: IFC Disbursements by Region

Region First half (US$ million) Share (%)

FY14 FY15 FY14 FY15

Sub-Saharan Africa 443 756 10 14

East Asia and Pacific 1,121 1,048 25 20

Europe and Central Asia 1,315 1,301 29 24

Latin America and Caribbean 174 391 4 7

Middle East and North Africa 522 565 11 11

South Asia 769 710 17 13

World 198 577 4 11

Total 4,542 5,346 100 100

Source: IFC

2.5 MIGA Operations

The Multilateral Investment Guarantee Agency

(MIGA) facilitates foreign direct investments (FDI)

into developing countries by providing political

risk insurance and credit enhancement products

to investors and lenders. The products include

guarantees to cover non-honoring of sovereign

financial obligations and financial obligations of

state-owned enterprises.

In the first half of FY15, MIGA supported 19 new

projects with a gross issuance value of $1.1

billion, compared to 11 projects valued at $1.7

billion during the same period of FY14. Five (5) of

these projects with a value of $67.0 million were

executed in the Africa Group 1 Constituency. The

beneficiary countries were Sierra Leone, Uganda

(2 projects), Tanzania and Zambia. Ethiopia

received an additional gross issuance value of

$1.1 million for an existing project, bringing the

total value of all projects in AFG1 to $68.1 million

during the first half of FY2015.

MIGA’s exposure to insurance claims, excluding

standby coverage, dropped from $8.7 billion

enduring the first half of FY14 to $9.5 billion in

24

the first half of FY15. MIGA’s portfolio in Africa

was the second largest in its overall portfolio

after ECA at $12.4 billion (25 percent) in FY15.

The distribution of MIGA’s portfolio by sectors

shows that the infrastructure sector held the

largest share in total exposure at 45.9 percent,

followed by the financial sector at 31.6 percent.

The mining sector held the least share at 0.9

percent, slightly above that of the agribusiness

sector at 2.6 percent (Tables 2.8-2.10).

Table 2.9: MIGA Operations - First Half of FY15

First Half

FY14

First Half

FY15

Global

Number of Guarantees Issued 18 18

Number of Projects Supported* 11 18

New Projects 9 9

Previously Supported 2 9

Amount of New Issuance, Gross (US$’ billion) 1.7 1.1

Sub-Saharan Africa

Number of Guarantees Issued 6 5

Number of Projects Supported** 1 6

New Projects 1 2

Previously Supported 0 4

Amount of New Issuance, Gross (US$’ billion) 0.1 0.1

Source: MIGA *For FY15, includes 5 additions made to existing guarantees **For FY15, includes 2 additions made to existing guarantees

Table 2.10: MIGA Portfolio by Region – First Half of FY15 Host Region Name Gross Exposure

(US$ million)

Net Exposure

(US$ million)

% of

Total Net

Exposure

Asia and the Pacific 1,736.3 908.1 12.5

Europe and Central Asia 4,962.4 2,795.7 38.5

Latin America and the Caribbean 1,859.3 1,212.3 16.7

Middle East and North Africa 805.0 533.1 7.3

Sub-Saharan Africa 3,019.0 1,819.8 25.0

Total 12,382.0 7,269.0 100.0

Source: MIGA

25

Table 2.11: MIGA Portfolio by Sector – First Half of FY15

Gross Exposure

(US$ million)

Net Exposure

(US$ million)

% of

Total Net

Exposure

Agribusiness 189.4 188.7 2.6

Financial 4,160.5 2,296.2 31.6

Infrastructure 5,642.5 3,335.9 45.9

Power 2,444.3 1,446.2 19.9

Telecom 338.8 276.0 3.8

Manufacturing 976.1 641.2 8.8

Mining 89.9 62.7 0.9

Oil and Gas 936.1 393.7 5.4

Tourism/Retail/Services 387.7 350.6 4.8

Total 12,382.1 8,991.2 100.0

Source: MIGA

Chapter 3

Selected Policy Issues and Updates

Review on Environmental and Social Safeguards

Update on Proposed

WBG Procurement Reform

The 2015 Voice Reform

Update on Global Infrastructure Facility

Update on Diversity and Inclusion

29

Chapter 3

Selected Policy Issues and Updates

3.1 Review of the World Bank Environmental

and Social Safeguards Policies

In October, 2012, the World Bank commenced

the review process of its Environmental and

Social Safeguard (ESS) Framework Policies, as

part of a modernization effort within the

Institution. The review provides an opportunity

for the World Bank to build on the core principles

of the existing safeguard policies; improve

coverage of environmental and social risks;

deliver better environmental and social

outcomes in the projects and programs it

supports; and help borrowers deliver sustainable

results on the ground.

To keep the framework suitable in the face of a

changing environment, the Bank is reviewing

these crucial policies to better address new

development demands and challenges and to

better meet the varied needs of borrowers. The

proposals will address the needs of the Middle-

Income Countries (MICs) with well-developed

institutions and capacities, the Low-Income

Countries (LICs) with weaker governance and

institutions, and Fragile and Conflict-affected

States (FCSs) where more tailored and

coordinated interventions are required.

The reform was also prompted by the findings of

a 2010 evaluation of the safeguard policies

conducted by the World Bank's Independent

Evaluation Group (IEG). This evaluation, titled

Safeguards and Sustainability Policies in a

Changing World: An Independent Evaluation of

World Bank Group Experience, provides the first

comprehensive evaluation of the World Bank's

safeguard policies since they were first

formulated in 1989.

The main objective of the review is to strengthen

the effectiveness of the safeguard policies in

order to enhance the development impact of the

World Bank-supported projects and programs.

World Bank Management anticipates that the

review process will lead to the following:

A Cohesive framework that will

distinguish principles, policies, and

procedures;

Enhanced policy clarity and coherence;

Clarity in objectives and desired

outcomes;

Improved synergy across policies;

Consolidation of fragmented or

duplicative policies;

Streamlined guidance; and

Better delineates roles and

responsibilities of the World Bank and

the borrower.

In addition, a modernized ESS framework can

serve as the basis of a renewed partnership

between the World Bank and its borrowers – a

partnership rooted in a common commitment to

environmental and social sustainability. Such

partnerships would better leverage the

increasing capacity of many borrowers to identify

and manage environmental and social risks and

impacts. Where a borrower lacks such capacity,

30

the World Bank could, working with other

development partners, deliver tailored capacity

and institution building programs to strengthen

the capacity of borrower’s institutions and

systems.

3.1.1 African Caucus Position on the Proposed ESS

The position of the African Caucus on the review

was clearly articulated in the Khartoum

Declaration issued at the 2014 African Caucus

held in September, 2014 in Sudan. This position

was subsequently expressed in the 2014

Memorandum of African Governors to the WBG

President.

In essence, the African Governors expressed the

view that the review should ensure that the

revised ESS framework fully benefits from,

among others, consultations with governments

and should respect national laws and

constitutions. It should also take into account

unique country circumstances and address

concerns around contentious issues. Of particular

concern to African Governors was the proposed

Indigenous Peoples Policies, ESS7, which was

considered to be divisive and not applicable to

the circumstances of many African countries. The

concerns mostly arise from the categorization of

some ethnic groups by ESS7 as Indigenous

People, which grants these groups special rights.

This approach does not conform to the national

constitutions of many African countries, where all

citizens are considered Indigenous Peoples.

3.1.2 Africa Group I Constituency Engagement

Over a six-month worldwide consultation

exercise that ended on March 1, 2015, meetings

were held in some of our Constituency countries,

namely Burundi, Ethiopia, Kenya, and Tanzania.

The meetings accorded an opportunity for our

governments and other stakeholders to express

their views on the proposed ESS framework.

Internally, the Office of the Executive Director has

continually engaged World Bank Management to

convey the views of African Governors,

particularly those relating to ESS7. In February

2015, the Office met with Management to

reiterate these views and encouraged

Management to propose an alternative version

that respects the national laws and constitutions

of the Constituency countries.

3.1.3 Next Steps in the Review Process

Following the closure of the first phase of the

consultation process on March 1, 2015,

Management will collate and review the various

submissions and prepare a new draft. Based on

the timeline for review, the new ESS Framework

is scheduled to come into effect in FY16 after

internal reviews and clearance by the Executive

Board.

3.2 Update on the Proposed World Bank

Group Procurement Framework

As part of the World Bank Group’s (WBG) reform

agenda and change process, the Institution’s

Procurement Policy Framework is under review.

The process was initiated in February 2012, which

marked the commencement of the first

comprehensive review of the Procurement Policy

since the World Bank was established. Previously

the World Bank used a standard approach to its

procurement in the form of Procurement

Guidelines.

The objective of this review process is to address

deficiencies in the current Procurement Policy,

with a view to strike an optimum balance

between maintaining fiduciary assurance and

31

delivering positive outcomes in the context of the

twin goals. Some of the major deficiencies are as

follows: (i) inordinate delays in the ‘No Objection’

process; (ii) lack of flexibility to address country-

specific issues in general and FCSs in particular;

(iii) the reluctance to use country systems; and

(iv) the use of an approach that does not involve

well-calculated risks to achieve greater

development impact.

The revised Procurement Framework is expected

to be characterized by clear lines of

accountability, enhanced clarity and explicit

guidance to suit the modern, complex and

diverse operating environment. Further, the

Framework shall be aligned with international

best practice.

The Proposed Procurement Framework is being

formulated through a two-phased approach. The

first phase comprised broad-based worldwide

consultations, thematic background studies,

internal World Bank reviews and an evaluation by

the IEG. This phase determined and

substantiated the rationale for the World Bank’s

Procurement Policy reforms and indicated the

general directions of the reform process. The

general directions suggest that the WBG

Procurement Policy Framework should be

“guided by an approach that reflects complexity

and diversity, value for money, and fit for

purpose”.

The second phase began with a policy articulation

process through which a draft policy document

was produced and later cleared by the Executive

Board in July 2014. Following this development,

the Board cleared another global multi-

stakeholder consultation process in August, 2014

with a view to getting additional inputs for policy

articulation.

Based on the agreed timeline, the new

Framework will be finalized in FY15. The new

policy is expected to take effect in FY16 after

approval by the Executive Board at the end of

FY15.

3.3 The 2015 Voice Reform

At the 2010 Spring Meetings, the Board of

Governors agreed to conduct reviews of the

shareholdings of IBRD and IFC every five years to

give developing and transition countries (DTCs)

more voice and representation in the governance

of these institutions. They also noted that

beginning with the subsequent shareholding

review in 2015, a work program and a roadmap

would be established to arrive at a benchmark for

a dynamic formula that would reflect the 2010

principles agreed in Istanbul, Turkey, and then

move towards an equitable voting structure,

while protecting the voting power of smaller

economies.

3.3.1 Context and background

In 2008, the WBG embarked on a two-phase

package of reforms designed to strengthen the

voice and participation of DTCs, and to enhance

the legitimacy, credibility and accountability of

World Bank Group operations. Equitable

participation of all DTCs would be achieved

through progressive adjustment in voting rights

and shareholding based on economic weight and

responsibilities for development mandate and

strengthening of voice and participation of small

countries where the WBG plays an important

financing and advisory role.

With these guiding principles in place, the voice

reform had three main dimensions: (i) voting

power and shareholding; (ii) voice as effective

representation at the Board of Executive

32

Directors; and (iii) voice as responsiveness to

Developing and Transition Countries (DTCs) views

on development.

3.3.2 Current Status of Subscriptions

The first phase of the Voice Reform was approved

by the Board of Governors in 2009 and led to an

increase in developing countries’ shares in IBRD

to 44.1 percent, which was achieved through

increase in basic votes. The basic votes were

effectively doubled to 5.6 percent of total votes

to strengthen voting power of small countries. In

addition, an exceptional allocation of unallocated

World Bank shares was made to 16 DTCs so that

their voting power was not diluted by the

increase in basic votes.

The second phase of the reforms, which was

approved by the Board of Governors in 2010,

increased the voting power of developing

countries in IBRD to 47.2 percent. The IBRD 2010

shareholding realignment was carried out

through Selective Capital Increase (SCI). The

realignment was based on allocating shares to

members in light of their economic weight,

contribution to IDA, and development

contribution from the Bank’s Group clients, with

measures to protect the voting power of the

smallest members.

As of February 10, 2015, a total of 110 countries

still had outstanding subscriptions. Of these, 42

countries have requested an extension for one

year (to March 16, 2016), and 46 countries have

requested an extension for 2 years (to March 16,

2017) and 22 countries have completed their

subscription requirements.

3.3.3 Next Steps in the Voice Reform

Since the 2010 Review, both the global economy

and the WBG have significantly changed.

Economic weight data confirm that the stronger

relative growth rates of DTCs have further

increased their global economic weight. Donors

have financed two successful IDA replenishments

and DTCs have strengthened their contribution to

IDA. These changes call for a further reviews in

order to achieve a shareholding structure that

reflects the changes that have taken place.

3.4 Update on Global Infrastructure Facility

The Executive Board on March 19, 2015

approved the establishment of the Global

Infrastructure Facility (GIF) to commence full

operations in April 2015. The GIF serves as a

global, open platform that facilitates the

preparation and structuring of complex

infrastructure projects through mobilization of

private sector and institutional investor capital.

The GIF operates according to the core principles

of providing public goods, mobilizing the private

sector, achieving value for money, promoting

sustainability and inclusiveness, collaborating for

best results and augmenting partners’ capacities.

The activities of the GIF focus on providing

support along the spectrum of design,

preparation and transaction to ensure that well-

structured and bankable infrastructure projects

are brought to market. By contributing to the

global stock of high-quality projects, the GIF is

expected to help develop infrastructure as an

asset class, attractive to the full range of private

investors that seek to diversify into long term

assets in fast growing economies. GIF

interventions seek to minimize overall project

risk by ensuring that costs, benefits and risks are

33

well considered at each stage of the project

preparation process.

Under its partnership program, the GIF offers

governments, multilateral development banks,

private sector investors and financiers a new way

to collaborate on complex projects that no single

institution could handle on its own. The GIF

platform provides comprehensive support by

drawing on technical and advisory partners. The

GIF partners fall into one or more of the following

categories:

Funding partners that provide financial

contributions to the GIF partnership;

Technical partners, such as the WBG and

external partners, who provide specific

technical advice; and

Advisory partners, which are private

investors or entities that represent the

voice of private sector infrastructure

finance such as pension funds, sovereign

wealth funds, banks or other financial

institutions and partners interested in

participating in GIF-arranged credit

enhancement structure.

As regards its governance structure, the

operations of the GIF are overseen by a

Governing Council (GC). The GC supervises

strategic programming, management of funds

and the development of operational procedures

and policies, and holds management accountable

for delivering on the GIF objectives and for

adhering to its principles. The GC comprises

representatives of funding and technical partners

and representatives of the beneficiary

developing countries.

There is also an Advisory Council (AC) that serves

as a sounding board on the latest developments

in infrastructure finance to inform the design of

GIF interventions. It comprises all GIF partners

and it is chaired by the Managing Director and

Chief Finance Officer of the WBG.

The GIF is administered by the WBG through the

GIF Management Unit. The responsibilities of this

Unit entail building the facility, leading

consultations and the capitalization process,

managing and allocating the resources of GIF,

assuring quality of GIF project design and

providing coordinating support as projects

progress.

The first three years of GIF operations, 2015-

2018, constitute a “pilot phase” to test the GIF

concept, activities and partnership framework.

Seed funding for the pilot phase includes an initial

capitalization of US$80 to US$100 million over

this period which has been pooled together from

partners. The WBG provided US$15 million in

seed capital in September 2014 from an IBRD

surplus to this seed capital. The initial level of

resources is targeted at between eight to ten

interventions during the pilot phase. This level of

activity is expected to enable the model to be

tested over a sufficient range of project sectors,

geographies and country environments.

The list of eligible sector may be expanded during

or subsequent to the pilot phase. However at this

initial stage, the GIF can only support projects

across the following sectors and sub-sectors:

Energy: electricity transmission or

distribution, natural gas transmission

or distribution;

Water and sanitation: water supply,

wastewater and sewerage, irrigation

and drainage, solid waste

management;

Transport: airports, ports, railways,

mass transit, highways; and

Telecommunications: landlines,

undersea cable.

34

During the pilot phase, the GIF will support

projects with regional or global public good

characteristics that are:

Trade-enabling projects that

facilitate or enhance

interconnectivity and trade; and /or

Climate-smart projects that lower

carbon-emissions, encourage energy

and/or carbon efficiency in the

provision of infrastructure services

and/or strengthen climate resilience.

A Project may refer to the development,

rehabilitation or expansion of a standalone

infrastructure facility, series of interlinked assets

that together address an identified infrastructure

delivery objective or a coordinated program of

investment in multiple infrastructure assets. The

GIF can support projects that will be primarily

implemented by private-operated entities under

a public private partnership modality, or by public

sector entities operating on a commercial basis.

The infrastructure project must provide a public

service to multiple users, have a strong potential

to achieve financial viability and sustainability,

and attract long term private capital.

3.5 Update on Diversity and Inclusion

The WBG has had diversity and inclusion (D&I)

targets and indicators since 1998 and has revised

them over time to reflect progress and priorities.

One such targets is to increase and maintain the

share of staff from Sub-Saharan Africa (SSA) and

the Caribbean at professional level and above to

12.5 percent. Although progress in meeting this

target has been slow, a slight improvement was

recently achieved with this share increasing to

11.5 percent in September 2014.

Recognizing the slow progress, Senior

Management of the WBG signed a statement of

commitment in December 2014 and agreed on a

D&I Compact. They made a commitment to

recruit more than 100 additional staff from SSA

and the Caribbean by FY17. They also committed

to recruit additional managers from these

regions in order to raise their share of managers

from 10.8 percent to 12.5 percent.

As regards to SSA in particular, the WBG has also

instituted additional measures to identify and

recruit staff from this region. The African Region

Vice Presidency of the World Bank launched a

fellowship program targeted at talented African

Ph.D. candidates. Under this program successful

candidates would spend six months working in

various units across the WBG. Candidates that

perform well stand a chance to be offered regular

positions in the WBG. In addition, a Diversity

Talent Desk was created to support outreach and

recruitment efforts. So far, the talent desk has

reached out to various African educational and

research institutions. While these efforts are

commendable, African Executive Directors and

Governors are encouraged to continue to call on

the WBG to meet its commitment on D&I targets.

35

36

Chapter 4

Constituency Issues

Highlights of Statutory Constituency Meetings

37

Chapter 4

Constituency Issues

4.1 Highlights of Ninth Statutory Meeting of

the Africa Group 1 Constituency

The Africa Group 1 Constituency Rules and

Procedures as approved in 2010, stipulate that

the Constituency shall meet bi-annually to

deliberate on issues of common interest and map

out modalities for ensuring that these issues are

factored in the broad policy and operational

agenda of the WBG. Accordingly, the

Constituency held its Ninth Statutory Meeting on

October 9, 2014 in Washington D.C., USA on the

margins of the Annual Meetings of the WBG and

the IMF. The following are highlights of the

reports considered, issues discussed and

decisions taken.

4.1.1 Formal Membership of Somalia

The Constituency officially welcomed the Federal

Republic of Somalia as its newest member,

following its participation in the elections of the

Executive Directors for 2014-2016. The

Constituency had represented Somalia's interests

with the WBG in an informal basis since 2010.

4.1.2 The Annual Report of the Executive Director

on the Developments in the World Bank Group

during FY 2014.

The Executive Director’s Annual Report for FY14

highlighted global economic developments and

prospects, performance of WBG operations and

gave an update on Selected Policy Issues. The

Report also summarized key developments in the

Constituency including an update on the Voice

Reform, Voting Power and Capital Subscriptions,

and highlights of the Eighth Statutory Meeting of

the Constituency and the African Caucus Meeting

for 2014.

The Governors noted the WBG forecasts, which

pointed to a year of slow global economic growth

and downside risks arising from weak

performance in the Euro Area, geopolitical

tensions in Eastern Europe and the Middle East

and slowdown in China. They also noted that the

decline in commodity prices would have an

adverse impact on trade balances and growth

prospects in some countries and that although

SSA had been a bright spot for growth in

developing countries, the Ebola crisis posed

serious downside risks to growth prospects.

Governors noted with concern that out of the

IBRD commitments of US$18.6 billion in FY14,

only US$0.42 billion had gone to SSA. Similarly,

they noted with concern that the US$10.2 billion

in IDA funds committed to SSA was below the

target of 50 percent. The funds committed stood

at 46 percent.

Governors acknowledged the new IDA17

Implementation Policies, including the changes in

IDA financing terms, the allocation system, the

regional program, and the provision for arrears

clearance. They also noted the flexibility in the

use of country allocations and the commitment

to disclose country allocations to country

38

authorities. Governors welcomed the use of the

IDA17 Crisis Response Window (CRW) for the

Ebola Emergency Operations in West Africa and

looked forward to further discussions on IDA’s

sustainability and governance.

4.1.3 Consideration of the Constituency

Statement to the Development Committee

Governors endorsed the proposed Development

Committee Member Statement for the

Constituency (Annex 4). In their Statement,

Governors called upon the international

development community to ramp up support for

country efforts to promote shared prosperity.

Noting the lags in attaining the MDGs relating to

primary education, basic sanitation, and infant,

child and maternal mortality, the statement

urged development partners, including the

World Bank Group, to join efforts with developing

countries to accelerate progress and to ensure

that the post-2015 framework adequately

captures the unfinished agenda.

The statement noted the heightened focus on

the Green Growth agenda and requested

development partners to provide support to

assist Constituency countries institute actions on

the environmental front, without compromising

their efforts on other pressing development

issues. It also noted that Official Development

Assistance (ODA) remained a significant source of

development financing, especially for the poorest

countries. Governors, therefore, called upon the

WBG to work with Constituency countries and

other development partners to find and develop

innovative financing mechanisms and promote

access to affordable finance for Small and

Medium-size Enterprises (SMEs). Furthermore,

the statement reiterated the observation that

improved service delivery would be the

benchmark for successful execution of the

Change Process in the WBG.

As regards the outbreak of the Ebola Virus in

West Africa, Governors recognized WBG support

and urged Management to coordinate global

efforts, play a leading role in mobilizing additional

resources, explore ways to stop the spread of the

disease, determine the root causes and assist

economic recovery efforts in the affected

countries.

4.1.4 Constituency Strategic Issues

The Meeting noted that the Constituency would

need to continue to focus on ways to improve

countries’ engagement with the WBG,

specifically on voice, representation and diversity

and differentiated products and maximized

resource flow to its heterogeneous membership.

The Meeting appreciated the efforts of the

Development Committee (DC) Member

Committee and the process for articulating the

DC Member Statement, and undertook to ensure

that the Statement continues to focus on the

agenda setting matters for the WBG and keeps

members abreast of the position of the

Constituency on key issues that preoccupy the

Annual and Spring Meetings. The Meeting also

noted the need to continue to advocate for

region-wide interests in transformative energy

infrastructure, agricultural productivity,

industrialization, arrears clearance and debt

relief for remaining HIPC and non-HIPC Initiative

beneficiaries and diversity. The Meeting also

observed that the Constituency Rules would be

due for review in 2015 since they would have

been in use for five years.

39

4.1.5 Constituency Representation on the WBG

Board and Constituency Governance

In line with the Africa Group 1 Constituency Rules

and Schedule of Rotation, the Governors noted

the following representation on the WBG

Executive Boards and Constituency governance

structures for the period November 2014 to

October 2016.

Dr. Louis Rene Peter Larose of the Republic of

Seychelles was elected as the new Executive

Director to represent the Africa Group 1

Constituency at the Executive Boards of the WBG

for the period November 2014 to October 2016.

Governors also endorsed the appointment of Mr.

Andrew Ndaamunhu Bvumbe of the Republic of

Zimbabwe as the Alternate Executive Director for

the Africa Group 1 Constituency for the same

period. As regards governance structures in the

Constituency, Governors endorsed the

responsibilities outlined in Table 4.1.

Table 4.1: Constituency Governance Structure

Constituency

Chair Ethiopia

Vice Chair The Gambia

Constituency Panel

Chair Ethiopia

Vice Chair Gambia, The

Member Lesotho

Member Zambia

Member South Sudan

Development Committee

Representative Uganda

Alternate Tanzania

Associate Namibia

Associate Mozambique

Associate Zimbabwe

Associate Sierra Leone

IDA Borrower Representatives

Representative Kenya

Representative

To be determined*

Notes: *As determined under Rule IV (9) of the Constituency Rule

Guidelines and Procedures, October 2012.

40

41

42

Annexes

Organization Chart of the World Bank Group

Organization Chart of the International Finance Corporation

Organization Chart of the Multilateral Investment Guarantee Agency

Development Committee Member Statement

Development Committee Communiqué

Rotation Schedule for Constituency Chairperson

Rotation Schedule for the Constituency Panel

Rotation Schedule for Constituency Representation on the Development Committee

Rotation Schedule for Executive Director and Alternate Executive Director

43

Annexes

Annex 1: Organization Chart of the World Bank

44

Annex 2: Organization Chart of the International Finance Corporation

45

Annex 3: Organization Chart of the Multilateral Investment Guarantee Agency

46

Annex 4: Development Committee Member Statement – October 2014

Development Committee Member Statement for Africa Group 1 Constituency

90th Meeting of the Development Committee World Bank Group/IMF Annual Meetings

October 11, 2014 Washington, D.C.

Honorable Maria Kiwanuka, Minister of Finance, Planning and Economic

Development, Republic of Uganda Introduction Economic growth in Sub-Saharan Africa (SSA) is projected to remain robust in 2014 at about 4.7 percent, continuing to be underpinned by large investments in infrastructure, mining and manufacturing. Poverty levels are falling, while education and health outcomes are improving. However, the region, like other developing regions, still faces challenges. Under the circumstances, achievement of the two goals of ending extreme poverty and promoting shared prosperity calls for concerted efforts and strengthened partnerships between our countries and the development community in general. Promoting shared prosperity in an unequal world: Key challenges and the role of The World Bank Group (WBG) We note and appreciate the efforts put into promoting synergies of the One World Bank Group in the new country engagement model that aim to facilitate the partnership between the public and private sectors in our countries for maximum impact of the WBG’s country programs. In this context, recognizing the important role of the private sector in job creation, we look forward to the implementation of IFC’s FY15-17 Road Map and MIGA’s Strategic Directions FY15-17 in SSA. African countries face a number of challenges, the biggest of which include creating and expanding employment opportunities, especially for the youth. Other challenges include income inequality, and vulnerability to economic, social and environmental risks. Moreover, the ongoing Ebola crisis in West Africa has already brought about a major slowdown in the economies of the region, and has stretched the limit of the under-resourced health and social infrastructure. We, therefore, reaffirm our strong commitment and reiterate our call on the international development community to ramp up its support to our countries to address these challenges. Similarly, we share the concerns about high global inequality levels, despite the efforts and progress made in improving the welfare of the bottom 40 percent population globally. Relatedly, we continue to face significant data deficiencies which undermine our ability to adequately measure progress and effectively plan for the future. We, therefore, call on the WBG and other development partners to strengthen our efforts to enhance statistical capacities in our countries during the post-2015 era. The Millennium Development Goals (MDGs) and the WBG Twin Goals We take note of the 2014 Global Monitoring Report (GMR), which provides an update on the progress towards the Millennium Development Goals (MDGs), including the performance on the WBG twin goals. As the Report indicates, despite significant progress in meeting the MDGs globally, the attainment of the goals relating to primary education, basic sanitation, and infant, child and maternal mortality are lagging, particularly in SSA. We, therefore, reiterate our call on development partners, including the WBG to join efforts with our countries in accelerating progress on these fronts, while ensuring the unfinished agenda is adequately captured in the Post-2015 Framework. We concur with the main policy messages of the Report on the importance of sustained growth, early investments in human capital and well-targeted social safety nets. Further, we agree with the view that promoting green growth is vital for promoting intergenerational inclusive growth. However, environmentally friendly options are not often cost-neutral, and can impose trade-offs that limit the scope of our development resources. Thus, we call on our development partners to provide appropriate and timely support for our countries to take up and persevere with actions that promote progress on the environmental front without compromising their efforts on other pressing development issues.

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World Development Report (WDR) 2015 - Mind and Society—How a Better Understanding of Human Behavior Can Improve Development Policy We welcome the findings of the WDR 2015 that suggest a major paradigm shift in the way the WBG engages with our countries. We appreciate that the Report recognizes that for effectiveness, it is important for the WBG to contextualize interventions, taking into account culture and psychological disposition of client countries. The implementation of these proposals is likely to result in a significant change in the way the Bank engages with our countries in the design and execution of programs and projects. Obviously, these changes will require capacity building in both the WBG and client countries. In this regard, we cannot overemphasize the importance of early consultations to assess the needs of our countries and staff in the WBG in readiness for these changes. We understand that work on the operationalization of the WDR 2015 is ongoing and, in this regard, it would be imperative that the transition from conventional development economics to behavioral economics is managed in a manner that prevents disruption of program delivery to clients, and enhances the on-going Change Process. Development Financing and the Post-2015 Development Our countries face large financing gaps in sustaining the current rapid rate of economic growth and funding transformation of their economies. Several African countries are exploring policy options to ensure that available resources, including those obtained as external flows, are efficiently utilized to achieve economic, social and environmentally sustainable development. Moreover, in an effort to diversify the sources of funding, many of our countries are making progress and deepening their domestic financial markets and are successfully accessing international bond markets. More African countries are seeking sovereign credit ratings and, importantly, are putting in place solid debt management strategies. These efforts notwithstanding, official development assistance (ODA) will remain relevant in meeting the large and long-term financing needs of our infrastructure projects. It also continues to be a significant source of development financing, especially for the poorest countries that have limited or no access to capital markets. It is important that ODA is not only sustained but leveraged. Therefore, the need to explore innovative sources of finance that could be channeled into high impact, high return investments with potentially transformative impact cannot be overemphasized. We encourage the Bank to work with development partners in looking into modalities for attracting surpluses in emerging markets, including sovereign wealth funds, remittances, and leverage public resources with private sector flows. More specifically, we continue to call on the WBG to work with partners and our countries on innovative financing mechanisms, including especially promoting access to affordable finance by SMEs, which are key for job creation. The World Bank Group Change Process We are cognizant that the World Bank Group Change Process is continuously evolving with the attainment of several milestones so far. In particular, we take note that the Country Partnership Framework (CPF) and the Systematic Country Diagnostics (SCD) have gone into effect in WBG operations. We further recognize the progress made in terms of operationalizing the Global Practices and finalizing the Monitoring and Evaluation Framework. We however must reiterate that the success of the process will ultimately be determined by its results on the ground, in terms of specifically facilitating and improving timely project implementation. As we have mentioned before, to achieve the level of ambition set in terms of the WBG twin goals, the Change Process demands better utilization of existing resources as well as strengthening the WBG’s financial capacity. We note that work is on-going to engender the desired changes while simultaneously ensuring that there would be virtually no disruption to the current measures being undertaken to assist partner countries. In this regard, we would like to once again stress the need to ensure streamlined and simplified internal procedures and processes necessary to ensure faster service delivery. Response to the Ebola Outbreak We recognize the efforts Liberia, Sierra Leone and Guinea, are making under difficult circumstances, and that of the other African countries in the fight against this epidemic. In this context, we welcome and appreciate the financial and humanitarian support of the international community in the fight against the Ebola disease that is having a devastating impact in the affected countries with the potential to become more widespread. We also appreciate President Kim’s leadership in the WBG’s support in this regard, including especially the recently approved Ebola Emergency Response Project (EERP) and the WBG’s

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announcement to double its financing to $400 million, with additional new resources for medium-and long-term projects to help the worst-affected countries address the problem over the coming years. We welcome the roundtable discussions with Heads of States of the three countries affected and appreciate the pronouncement of the valuable support of the WBG, International Monetary Fund and the other development partners, which represents a show of the kind of global coordination needed to tackle this urgent and distractive global externality. We urge the WBG to continue with ramped up global coordination efforts and to play a leading role in mobilizing resources and exploring ways and means of not only to stopping the spread of the disease, but also to determine the root cause(s), facilitate its obliteration and assist these countries in their socioeconomic recovery endeavors. In this regard, we also emphasize the need to focus on boosting the vulnerability and crisis preparedness capacities of the affected countries and the other countries in need. Other Recurring Development Issues Diversity and Inclusion: We have over the years repeatedly raised the subject of lack of diversity, especially at the professional and managerial levels in the WBG. While we recognize the progress that has been made in some diversity and inclusion indicators in the last few years, we are concerned that the overall progress measured against the targets has been slow. Therefore, we wish to stress that concrete actions are needed in order to address this issue in a meaningful way. Relatedly, we take note and welcome the WBG’s recent pronouncement reiterating its commitment to Diversity and Inclusion. We encourage the WBG to strive towards fulfilling this commitment. In the same vein, we recall the undertaking that the WBG President had made to update us on the progress made on this front, and we would like to hear from the President on this issue. Update on Implementation of the Gender Equality Agenda: We acknowledge the achievements on the Gender Equality Agenda. We also note and welcome the statistical capacity building initiatives and the heightened focus on developing sex-disaggregated databases, as a means of tracking gender gaps over time. In this regard, we urge the WBG to incorporate into the upcoming Gender Equality and Development Strategy, measures to prevent reversals of gains, and to focus on linking gender to sectors including agriculture and energy, which directly improve the livelihood, voice, and agency of women. In addition, we call on the WBG to continue to ensure that its support and partnership with the private sector remain gender-sensitive. Securing the Transformational Potential of Extractive Industries – The World Bank Group Approach: Generally, we welcome and encourage the WBG’s engagement with client countries in supporting investment in extractive industries. We also support the emphasis given to initiatives such as the Extractive Industries Transparency Initiative (EITI) that would go a long way in helping to ensure the transparency on the benefits accrued from the oil, gas and mining sector receipts. Resolutely, a number of our countries, with the support of the Bank, are either now EITI complaint or are in the process of doing so. In this respect, we cannot overemphasize the importance of the WBG’s support to countries in need, in extractive sector management including value addition, establishing requisite legal and regulatory, environmental, and fiscal frameworks for managing natural resources wealth, and in contract negotiations. Support to Africa’s Middle Income Countries (MICs) and Small Island Developing States (SIDS): While we recognize the Bank’s support of projects in some MICs in SSA, we express our disappointment with the slow progress exhibited so far. Therefore, we once again urge for the development of a meaningful, tailored solution for dealing with the challenges these countries are facing. We also encourage the Bank to recognize the special needs of the SIDS that, because of their small size, limited resources, geographic dispersion and isolation from markets, SIDS face challenges which cause major set‐backs to their socio‐economic development. We, therefore, reiterate our call for a tailored strategy by the Bank to address these challenges. Debt Relief: We remain concerned with the slow progress in helping Somalia, Sudan, and Zimbabwe benefit from the debt relief initiatives – a situation that has hampered meaningful development in these countries. We call, once again, for the WBG to help these countries accomplish the requisite task as well as take the lead, together with the IMF, in rallying development partners to provide the sought debt relief. World Bank’s Non-Concessional Borrowing Policy for IDA Countries: We call for an urgent review of the IDA Non-Concessional Borrowing Policy (NCBP) that would allow the full exploitation or promotion of the one WBG synergy in resource mobilization to support transformative infrastructure projects in IDA countries. Specifically, we urge the WBG to improve accessibility to IBRD resources by IDA creditworthy countries. In the same vein, the revised policy should take into account IFC’s efforts to mobilize capital from third parties, and/or, foster stronger participation and collaboration from IBRD, IDA and MIGA in attracting private sector participation in promoting this cause. WBG’s Procurement, Environmental and Social Safeguards and Policies: We welcome the ongoing review of the WBG’s Procurement Policies, and the Environmental and Social Safeguards and Policies. We take note that the review takes into account

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lessons from WBG’s engagement with countries in the past decades. In this regard, we would like to emphasize that the reviews need to aim mainly at addressing the deficiencies inherent in the Bank’s procedures and processes that have remained unresolved for a long period of time. With respect to the safeguards policy, we would like to, at the outset, reaffirm our commitment to ensuring and safeguarding the economic, social and environmental interests of all our people, including specially those who are historically marginalized. Notwithstanding this, we would like to underscore that the Bank’s policy needs to be crafted in such a way as to be sensitive to client countries’ values and cultures, and respectful of national Constitutions. Our interest is to ensure that the WBG remains part of the solutions to our economic and social challenges and/or problems. We, therefore, urge the WBG take into account our views and comments on the respective draft documents. Conclusion In conclusion, Africa needs to sustain the remarkable growth momentum in order to be able to achieve the twin goals established by the WBG in a sustainable manner. To this end, our Governments believe and are committed to a strengthened, mutually beneficial cooperation with development partners. We therefore call for a similar commitment from our development partners, including the WBG in particular, to our joint efforts towards achieving these goals.

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Annex 5: Development Committee Communiqué – October 2014

DEVELOPMENT COMMITTEE

JOINT MINISTERIAL COMMITTEE OF THE

BOARDS OF GOVERNORS OF THE BANK AND THE FUND ON THE

TRANSFER OF REAL RESOURCES TO DEVELOPING COUNTRIES

Washington, DC September 24, 2011

1. The Development Committee met today, October 11, 2014, in Washington, D.C.

2. The global economy remains on a cautious watch and is subject to considerable downside risks. Shared prosperity will

require inclusive economic growth, job creation, and a sustained multilateral effort to empower the poorest and most vulnerable. We encourage the World Bank Group (WBG) and the International Monetary Fund (IMF) to work together with member countries to implement bold policies to boost growth and to build resilience.

3. We are pleased that this year’s Global Monitoring Report (GMR) tracks, for the first time, the progress made in pursuit of the WBG’s goals of ending extreme poverty and boosting shared prosperity in a sustainable manner, while continuing to report on the status of the Millennium Development Goals (MDGs). The GMR’s coverage of inequality between the bottom 40 percent and the rest of the population, including high-income countries, provided a strong basis for our discussion of shared prosperity.

4. We welcome the discussion on promoting shared prosperity and the WBG’s role in supporting investment in human capital, improved access to markets, structural reforms, financial inclusion, infrastructure, improved tax and transfer systems, including social safety nets, and addressing climate change. We underline the importance of policies and institutions to promote an enabling environment for the development of the private sector, which is critical for investment, job creation, and inclusive and sustained economic growth. We call on the WBG to support countries to prioritize and implement tailored policies in these areas, to track results and impacts, and to build statistical capacity. We welcome the IMF’s commitment to provide support in its areas of special expertise, including the design of tax policies and fiscal reforms.

5. Inclusiveness is at the core of shared prosperity. We stress the importance of continuing the WBG’s focus on gender. We encourage the WBG to deepen gender integration across its operations and to focus more clearly on implementation and impact. We look forward to the WBG’s updated Gender Equality and Development Strategy, as well as future updates.

6. IDA countries have recorded strong growth since 2000 and have shown impressive resilience during the global economic crisis. However, a fifth of IDA countries have not recorded per capita output growth since then and are vulnerable to adverse shocks, including to natural disasters, epidemics, and economic and financial sector vulnerabilities that can quickly reverse the progress achieved. We ask that the IMF and the WBG continue to monitor economic risks and vulnerabilities.

7. We commend the WBG for its leadership and quick response to the Ebola crisis. We welcome the WBG and IMF’s rapid mobilization of emergency funding to support treatment and containment. We are encouraged by the joint effort of the international community in West Africa and underscore the importance of providing additional and ongoing coordinated support on the ground for the World Health Organization’s Ebola response Road Map. Beyond the human tragedy, economic losses in these countries are devastating. Swift and coordinated action and financial support are critical to contain and mitigate both direct and long-term economic impacts of the crisis, and build capacity to effectively deal with epidemics.

8. We call for targeted actions and support for countries in turmoil and transition in the Middle East and North Africa and in other regions. We emphasize the importance of the WBG and IMF providing adequate support to these countries. We encourage both institutions to continue to focus on immediate needs and help set the groundwork for expanded engagement when more stable circumstances allow for it.

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9. Fragile and Conflict Situations need a distinctive focus and assistance adapted to their specific challenges. We call for stronger commitment to achieve concrete, measurable impact, while working to better understand the drivers of conflict. Small island states remain vulnerable to economic shocks and natural disaster risks, necessitating support adapted to their unique needs. We encourage the WBG to further promote and support increased private investment opportunities in these countries.

10. We commend the WBG for integrating climate change and disaster risk management into country planning, strategies, and financing. We ask the WBG to continue working on climate change, consistent with the United Nations Framework Convention on Climate Change, and to contribute to the success of the November Conference of the Parties in Lima, Peru.

11. Investment in infrastructure, including energy, is crucial to sustaining economic growth and ensuring shared prosperity. We encourage the WBG to continue its operational and advisory support to improve infrastructure. Funding for the Global Infrastructure Facility (GIF) is a welcome step to launch a platform that will facilitate the mobilization of private capital for infrastructure projects. We are hopeful that the GIF will soon acquire the required scale and ambition. We look forward to increased cooperation to build a pipeline of commercially, ready-to-finance viable projects. We call on the WBG and IMF to support countries to deliver efficient, reliable, affordable, and sustainable energy, including through the Sustainable Energy for All Initiative.

12. We congratulate the WBG for delivering increased lending, investment, mobilization of resources, including private sector investment, and advice this past fiscal year, while undergoing a fundamental internal change process. We expect an important shift in the way the WBG operates to deliver more efficient support to client countries, drawing on partnerships, integrated regional approaches, and knowledge sharing, including South-South cooperation, responding to client needs and reacting quickly to unexpected shocks. We will monitor the implementation of the change process and expect better lending quality with increased development impact. We welcome the WBG’s reiterated commitment to diversity and inclusion, which is crucial to its institutional goals. We encourage the WBG to make progress in achieving the agreed diversity targets as quickly as possible.

13. The UN-led post-2015 Development Agenda provides an opportunity to build a model of development that is more inclusive and sustainable. We urge the WBG and the IMF to support the international efforts to reach agreement on the post-2015 development goals. We note the particular significance of the Third International Conference on Financing for Development in Addis Ababa in July 2015. We expect IDA-17 to be critical for accelerating progress on the MDGs, and the WBG, in general, for successful implementation of the new development agenda.

14. We remain committed to the completion of the 2010 WBG shareholding realignment and urge all members who are yet to subscribe to their allocated IBRD and IFC shares to do so. We remain fully committed to concluding the next shareholding review in 2015.

15. The next meeting of the Development Committee is scheduled to take place on April 18, 2015, in Washington, DC.

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Annex 6: Rotation Schedules for the Constituency Chairmanship

FIRST ROUND 2010 - 2052

YEAR CHAIRPERSON VICE CHAIRPERSON

2010 BOTSWANA BURUNDI

2012 BURUNDI ERITREA*

2014 ERITREA ETHIOPIA

2016 ETHIOPIA GAMBIA, THE

2018 GAMBIA, THE KENYA

2020 KENYA LESOTHO

2022 LESOTHO LIBERIA

2024 LIBERIA MALAWI

2026 MALAWI MOZAMBIQUE

2028 MOZAMBIQUE NAMIBIA

2030 NAMIBIA RWANDA

2032 RWANDA SEYCHELLES

2034 SEYCHELLES SIERRA LEONE

2036 SIERRA LEONE SOMALIA

2038 SOMALIA SOUTH SUDAN

2040 SOUTH SUDAN SUDAN

2042 SUDAN SWAZILAND

2044 SWAZILAND TANZANIA

2046 TANZANIA UGANDA

2048 UGANDA ZAMBIA

2050 ZAMBIA ZIMBABWE

2052 ZIMBABWE BOTSWANA

NOTES: 1. Every country is given a turn for Chairmanship in alphabetical order from A to Z 2. Avoids duplication with IMF Rotation - Governors not serving on the IMF constituency Panel are given preference *Since Eritrea elected to pass their turn as Vice Chair of the Constituency in 2012-2014, Ethiopia was advanced in its place.

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Annex 7: Rotation Schedule for the Constituency Panel

NOTES: 1. Every country is given a turn for Chairmanship in alphabetical order from A to Z 2. Avoids duplication with IMF Rotation - Governors not serving on the IMF constituency Panel are given preference 3. Other panel members reflects regional balance (East, South and West) 4. Schedule revised to include South Sudan following the country’s membership to the Constituency in October 2012

FIRST ROUND 2010 – 2052

YEAR CHAIRPERSON VICE CHAIRPERSON OTHER PANEL MEMBERS

2010 BOTSWANA BURUNDI SEYCHELLES KENYA SIERRA LEONE

2012 BURUNDI ERITREA RWANDA SWAZILAND LIBERIA

2014 ERITREA ETHIOPIA LESOTHO ZAMBIA SOUTH SUDAN

2016 ETHIOPIA GAMBIA, THE NAMIBIA ZIMBABWE SUDAN

2018 GAMBIA, THE KENYA MOZAMBIQUE MALAWI TANZANIA

2020 KENYA LESOTHO SWAZILAND BOTSWANA ETHIOPIA

2022 LESOTHO LIBERIA RWANDA BURUNDI SOUTH SUDAN

2024 LIBERIA MALAWI MOZAMBIQUE ETHIOPIA ZAMBIA

2026 MALAWI MOZAMBIQUE GAMBIA, THE UGANDA KENYA

2028 MOZAMBIQUE NAMIBIA ETHIOPIA SOMALIA ERITREA

2030 NAMIBIA RWANDA BOTSWANA SOUTH SUDAN LIBERIA

2032 RWANDA SEYCHELLES LESOTHO UGANDA TANZANIA

2034 SEYCHELLES SIERRA LEONE SUDAN ZIMBABWE LIBERIA

2036 SIERRA LEONE SOMALIA KENYA BOTSWANA MALAWI

2038 SOMALIA SOUTH SUDAN SWAZILAND ZAMBIA BOTSWANA

2040 SOUTH SUDAN SUDAN LIBERIA MALAWI BURUNDI

2042 SUDAN SWAZILAND SOMALIA SIERRA LEONE LESOTHO

2044 SWAZILAND TANZANIA UGANDA ERITREA NAMIBIA

2046 TANZANIA UGANDA ZAMBIA SEYCHELLES BOTSWANA

2048 UGANDA ZAMBIA ZIMBABWE KENYA GAMBIA,THE

2050 ZAMBIA ZIMBABWE UGANDA BURUNDI LIBERIA

2052 ZIMBABWE BOTSWANA LIBERIA SUDAN RWANDA

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Annex 8: Rotation Schedule for Constituency Representation on the Development Committee

FIRST ROUND 2010 -2052

YEAR DC REPRESENTATIVE ALTERNATE ASSOCIATES

2010 ZIMBABWE ZAMBIA TANZANIA ERITREA RWANDA GAMBIA,THE

2012 ZAMBIA UGANDA GAMBIA,THE MALAWI LESOTHO KENYA

2014 UGANDA TANZANIA NAMIBIA MOZAMBIQUE ZIMBABWE SIERRA LEONE

2016 TANZANIA SWAZILAND LESOTHO RWANDA BURUNDI LIBERIA

2018 SWAZILAND SOUTH SUDAN SIERRA LEONE SOMALIA LESOTHO UGANDA

2020 SOUTH SUDAN SUDAN NAMIBIA ZIMBABWE GAMBIA,THE BURUNDI

2022 SUDAN SOMALIA KENYA ZAMBIA SWAZILAND SIERRA LEONE

2024 SOMALIA SIERRA LEONE ZIMBABWE LESOTHO NAMIBIA GAMBIA,THE

2026 SIERRA LEONE SEYCHELLES SWAZILAND ETHIOPIA BOTSWANA TANZANIA

2028 SEYCHELLES RWANDA SUDAN TANZANIA ZIMBABWE SWAZILAND

2030 RWANDA NAMIBIA KENYA SUDAN ZAMBIA SIERRA LEONE

2032 NAMIBIA MALAWI BURUNDI KENYA SIERRALEONE SOUTH SUDAN

2034 MALAWI MOZAMBIQUE TANZANIA GAMBIA ETHIOPIA BURUNDI

2036 MOZAMBIQUE LIBERIA LESOTHO ZAMBIA ERITREA SEYCHELLES

2038 LIBERIA LESOTHO GAMBIA,THE MALAWI NAMIBIA RWANDA

2040 LESOTHO KENYA MOZAMBIQUE ZAMBIA ZIMBABWE UGANDA

2042 KENYA GAMBIA, THE BOTSWANA NAMIBIA ETHIOPIA RWANDA

2044 GAMBIA, THE ETHIOPIA ZAMBIA ZIMBABWE LIBERIA MALAWI

2046 ETHIOPIA BURUNDI SIERRA LEONE LIBERIA LESOTHO SOUTH SUDAN

2048 BURUNDI ERITREA LIBERIA SOMALIA SWAZILAND NAMIBIA

2050 ERITREA BOTSWANA KENYA SIERRALEONE SEYCHELLES RWANDA

2052 BOTSWANA GAMBIA, THE SIERRA LEONE KENYA ETHIOPIA MOZAMBIQUE

NOTES: 1. Avoids duplication with the other Panel membership 2. DC Representative and Alternate Members accorded opportunity in descending alphabetical order (Z to A) 3. Associate Members are selected on basis of providing regional balance 4. Schedule revised to include South Sudan following the Country’s membership to the Constituency in October 2012

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Annex 9: Rotation Schedule for Executive Director and Alternate Executive Director

FIRST ROUND 2010 - 2052

Year Executive Director Alternate ED

2010 SUDAN ZAMBIA

2012 ZAMBIA SEYCHELLES

2014 SEYCHELLES ZIMBABWE

2016 ZIMBABWE BOTSWANA

2018 BOTSWANA UGANDA

2020 UGANDA BURUNDI

2022 BURUNDI TANZANIA

2024 TANZANIA ERITREA

2026 ERITREA SWAZILAND

2028 SWAZILAND ETHIOPIA

2030 ETHIOPIA SOUTH SUDAN

2032 SOUTH SUDAN SOMALIA

2034 SOMALIA GAMBIA, THE

2036 GAMBIA, THE SIERRA LEONE

2038 SIERRA LEONE KENYA

2040 KENYA RWANDA

2042 RWANDA NAMIBIA

2044 NAMIBIA LESOTHO

2046 LESOTHO MOZAMBIQUE

2048 MOZAMBIQUE LIBERIA

2050 LIBERIA MALAWI

2052 MALAWI

NOTES:

1. Sudan and Zambia accorded special dispensation to serve their turn under rotation system of the erstwhile Africa Group I Constituency

2. Seychelles which has never served the Constituency as Executive Director is accorded special dispensation on the rotation system

3. The rest of the countries follow an Alphabetical rotation alternating between Z and A until the first round is completed, taking into account South Sudan’s membership of the Constituency in October 2012

4. This schedule proposed with a view to avoid duplication with IMF Rotation for EDs and AEDs