Ey dynamics-doorway-to-development

Doorway to development

Nigerian know-how Planning for sustainable growth

Next stop, Brussels Charting Serbia’s way to the EU

Under the Tanzanian sun Bridging the energy gap with solar

DynamicsSupporting international development around the world

December 2014Issue 10

WelcomeDynamics Issue 10 December 2014

As 2014 draws to a close, it’s only natural to look up and take stock. It’s been quite a

Dynamics, EY’s

Africa rising…

why.

EU’re on track…

A doctor in the house… Rohan Malik

and Dynamics

01Dynamics Issue 10 December 2014

Dynamics Issue 10 December 201402

ContentsWe meet ...

Nigerian know-how

08

Life in the hot seat

22

Next stop, Brussels

16

Under the Tanzanian sun

24

Dynamics Issue 10 December 2014 03

About EY

ey.com

EY

Features Regulars

Contacts

40

Country spotlight: Chile

38

Round up, refresh

06My story, my views...

3226

Moving forward, moving up

Accelerating Africa’s progress

12

Better management boosts economic growth in Africa

Dr. Caleb Fundanga, who took over as director of the Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI) in July, said that Africa’s recent

management. According to her, although the organization was established to help countries manage their

management. Speaking at MEFMI’s combined forum in Washington, DC on October 6, he said: “Unless economies are properly managed, the debt problem will continue recurring. Much of the growth that we’ve seen in our countries has been because there has been an improvement in the way we manage our economies.”

MEFMI, which celebrates its 20th anniversary this year, had played its part in these improvements, he added, by organizing courses in macroeconomic management, monetary policy, reserves management and bank supervision. As a result, central banks in MEFMI member countries were now able to spot emerging problems in the banking sector and take the necessary actions.

04

hard to access and use.

speeches there are around openness, a

Donors urged to improve information sharing

Africa’s economic growth set to pass 5%

Economic growth in Africa could exceed 5% in 2015-16, according to fresh projections from The World Bank. Economies across the continent continue to rise at a moderately quick pace, with regional growth estimated to strengthen to 5.2% in the next two years, from 4.6% in 2014.

Francisco Ferreira, the WBG’s Chief Economist for Africa, said the continent is projected to remain one of the world’s three fastest growing regions and maintain “its impressive 20 years of continuous expansion.” But he added: “Downside risks that require enhanced preparedness include

economic fallouts from the activities of terrorist groups such as Boko Haram and Al Shabaab and, most urgently, the onslaught of the Ebola epidemic in West Africa.” The

in infrastructure, increased agricultural production and expanding services in African retail, telecoms and transportation to continue to boost the growth in the region.

Meanwhile, a separate WBG study, Africa’s Pulse, noted that economic transformation would become more critical, as it found the region “was largely bypassing industrialization as a major driver of growth and jobs.” Instead, the study said, extractive industries in the natural resources sector and a surging services industry were behind Africa’s growth.

Co-author of Africa’s Pulse and WBG lead economist for Africa, Punam Chuhan-Pole, added: “Nearly two decades of strong growth is transforming Africa’s economies, but the structural change is not what the world expected. The majority of Africa’s jobs continue to be in agriculture and is surging into services — but not into industry and manufacturing. The good news is that in Africa, this growth in agriculture and the services sector has been more effective in reducing poverty than growth in industry. In the rest of the world, by contrast, industry and services have a larger impact on reducing poverty.”

Round up, refresh


Regular |


Afghan women and girls poised for USAID boost

USAID sustains peacebuilding partnership in central Africa

The US Agency for International Development (USAID) has announced an extra US$7m in funding for the Central African Republic (CAR) Peacebuilding Partnership.

The public-private partnership will support and strengthen locally led peacebuilding and atrocity prevention efforts in the

support is focused on empowering interreligious leaders, as well as women and youth, who are critical players in promoting peace and reconciliation in communities affected by violence.

“In the midst of unprecedented humanitarian challenges across the globe, we cannot and have not, lost sight of the urgent situation in the Central African Republic,” said Assistant

Assistance Nancy Lindborg. “The Peacebuilding Partnership is a vehicle for public and private donors to invest their resources around a common purpose of promoting a more resilient, peaceful and inclusive future in the Central African Republic.”

In addition to making the US$7m donation, USAID is

to reach a total of US$15m. The initiative will build on current USAID programs in the CAR, including US$7.5m in peacebuilding programs to empower local voices for peace, promote interreligious and other community dialog, and improve access to accurate information in local media.


The Ebola outbreak in West Africa is impairing the ability of governments to raise revenues, increasing their exposure to domestic and foreign debts and may make them more dependent on aid, according to the latest study on the socioeconomic impact of the crisis carried out by the the United Nations Development Programme (UNDP).

“We need to make sure that the Ebola outbreak does not lead to socioeconomic collapse,” said Abdoulaye Mar Dieye, the Director of the UNDP’s Regional Bureau for Africa. “This crisis is already taking a toll on budgets and reducing the governments’ policy leeway to make much-needed investments in critical areas such as health and education for their citizens.” He added that the effects of the Ebola crisis will last long after the epidemic is brought under control.

In total, the governments of Guinea, Liberia and Sierra Leone are experiencing a shortfall of US$328m to be able to function at pre-crisis levels, the study shows. The gaps are caused by increased spending to tackle

a slowdown of economic activities such as tourism, mining and trade. Because of Ebola, government expenses have risen by about

are rising.

the three countries are resorting to domestic and international borrowing and have

International Monetary Fund and the World Bank. “These countries were heavily reliant on aid but beginning to see healthy rates of economic growth and opportunities for

domestic resource mobilization,” said Dieye. “We need to avoid a situation where these countries increase their dependence on

In recent weeks, West African and global development leaders have appealed for a massive coordinated reinforcement of international health teams to the three countries in order to contain the epidemic. The health workers are needed to treat and care for patients, boost local health capacity, manage Ebola treatment centers, and resume essential health services for non-Ebola conditions. Current estimates by the United Nations indicate that about 5,000 international medical, training and support personnel are needed in the three countries

over the coming months to respond to the Ebola outbreak, including 700-1,000 foreign health workers to treat patients in the Ebola treatment centers. “The world’s response to

recent weeks, but we still have a huge gap in getting enough trained health workers to the areas with the highest infection rates,” said World Bank Group President Jim Yong Kim.

barriers to the deployment of more health workers.”

Ebola draining development budgets in West Africa

US and El Salvador agree investment compact


Regular |

07

Round up, refresh

to understand whether its anti-corruption

DFID’s anti-corruption approach set for Philippines mission

A team of meteorologists and senior

is heading to the Philippines to help develop their national weather center. One year on from the devastating Typhoon Haiyan, the UK team is tasked with helping the country to better plan evacuations, put in place life-saving public warning services and build infrastructure that can withstand natural disasters.

Weather scientists from the Philippines will also be brought to the UK to be trained in how to use the supercomputers and sophisticated software behind the Met

systems. “By sending a team of specialists from

of British expertise and weather know-how to strengthen the Philippines’ resilience to future disasters,” said the UK’s International Development Secretary, Justine Greening.

and farming industries so thousands of the poorest women-led households can get their livelihoods back. It will not happen overnight, but the sooner people can get back to work and get on with their lives the sooner the country as a whole can fully recover.”

The World Bank (WBG) and the Australian Government have teamed up with Myanmar to improve the quality of education provided to millions of poor students. Both have pledged US$100m to the country’s Decentralizing Funding School Project and the World Bank is providing an US$80m credit agreement through its International Development Association, which provides concessional loans and grants to the world’s poorest developing countries.

“The project provides direct support to the Ministry of Education to expand funding

Education, and a student stipends program that will focus on 40 townships,” it said in a statement. “The project will also strengthen the ministry’s capacity to monitor and implement these programs.”

World Bank and Australia back Myanmar education program

8 Dynamics Issue 10 December 2014

underpinned by abundant natural resources and a

Ngozi Okonjo-Iweala is

Nigerian know-how


We meet ... |

Npowerhouse blessed with rich natural

her career has, in addition, taken her to

Lessons from change went about it was to look at where it was

I think that all countries


Going for growth

Africa Attractiveness Survey


We meet ... |

and interest has also been boosted by the

that can boost their technical capacity otherwise we will not be able to create

tribute to its ability to create jobs.

Spending solutions

bad person who doesn’t want to support

The issue is within the priority set and

poised to continue its ascent in the years


Accelerating Africa’s progress

says EY’s Joe Cosma

13

Feature |

C

cycle.

do not yet operate in the continent. Those with an established

continent’s prospects, while those with no business presence in

destination.

Five priorities for inclusive, sustainable growth


action.I. Embracing a philosophy of shared value

II. Promoting entrepreneurship

III. Accelerating regional integration

1988 - 2000 2001 - 2012 2013 - 2030

Ab

GDP growth CAGR

The African growth story is real


Feature |

11 11

1 2 1 1

4

21

24

Source: Oxford Economics Database, EY analysis

Joe Cosma is EY’s Government & Public Sector Partner in Africa

[email protected]

Download EY’s report, Africa 2030: Realizing the possibilities at www.ey.com/za

IV. Bridging the infrastructure gap

projects to the point at which they are bankable.V. Forging productive partnerships

Eyes on the horizon

story.

work.

Number of economies growing at a rate greater than 5%

2001 - 2012


Next stop, Brussels European Union, Tanja

Tpolitical union continues to enjoy substantial allure.

way.

accession process.


We meet ... |


On the road to accession

1 October 05

3 May 06


We meet ... |

Making the case for Europe

into their backyard and we need to ensure

eastern European countries when they

13 June 07

7 November 07


properly.

not because we are not enthusiastic, but

Beyond bordersacross European capitals. The two nations

1 January 08

18 February 08


We meet ... |

In part, this is due to the EU’s

decision on what will happen with this

Between Brussels and Belgrade

because now we are in a phase where we

are on the phone on a daily basis and

dedicated, enthusiastic and educated

her.

29 April 08

19 December 09

Stephen Fish is EY’s Country Leader in Serbia

Ioanna Kokkinou is an Associate Director in EY’s EU Account Team

[email protected]


prosperity in an unequal world is hardly

Dr. Jim Yong Kim. He tells us about his

T

Medical matters

Life in the hot

seat

23

We meet ... |

Eyes on the prize

A “bumpy road” to progress


Under the Tanzanian sun

Patrick Ngowi’s L

Moving on up

2014 Africa Attractiveness Survey


Feature ... |

in rural areas where the people

phones and accessories direct

Reach for the sky

couldn’t abide that, no way, but I

least, that was the plan.

Spreading the word

slow down.

opportunity


Fisn’t bad.

stability.EY recently launched our latest Kazakhstan

Attractiveness Survey

Moving forward,

moving upsays EY’s Erlan Dosymbekov. Here,

years ahead.


Feature ... |

Building “brand Kazakhstan”

trade partners.

Macroeconomic stability

Stable political and social environment

Telecommunication infrastructure

Domestic market

Corporate taxation

81.2%

79.6%

72.8%

63.4%

56.8%

17.7%

16.8%

17.8%

30.9%

20.1%

1.1%

3.6%

9.4%

5.7%

23.1%

Attractive Non-attractive Can't say

Source: EY's 2014 Kazakhstan attractiveness survey (total respondents: 211; established in Kazakhstan: 78 and not established: 133).

Local labor costs

Telecommunication infrastructure

Domestic market

Macroeconomic stability

Entrepreneurial culture

46.5%

40.6%

37.4%

35.9%

35.4%

36.0%

42.7%

50.5%

53.0%

51.4%

17.5%

16.7%

12.1%

13.2%

11.1%


question.

Global Competitiveness Report 2014–2015

and European countries, will also enhance trade

Maintaining momentum


Feature ... |

Growth and opportunity in the industrial sector

Action plan for success

1. Create a consistent business environment

established operations in the country, are


Erlan Dosymbekov is EY’s Managing Partner, Kazakhstan and Central Asia

[email protected]

Download EY’s 2014 Kazakhstan attractiveness survey 2014, The brand paves the way, at www.ey.com/attractiveness

2. Invest in infrastructure

3. Develop human capital

4. Ensure judicial independence

5. Adopt a proactive approach to attracting investors

Three investment enablers

1. International integration

2. An innovation-driven economy

industrial sector.

3. Focus on green technologies

A bright future …

the world around us.


Feature ... |


Sir Suma Chakrabarti’s career has

he looks back on his career and

my views ...My story,


D

Beginnings

the UK.

We meet ... |


Moving up Whitehall’s ladder

I then returned to the UK and joined

ownership, accountability and results.

heart and head was. I was appointed to be


We meet ... |

To the EBRD

and we’re now well underway. I think it is

we operate in and

how our projects are

policy issues are and

those countries are

under that president’s watch and so we


an outsider has. In our case, we’re not

Blending the public and private

need public sector solutions. Indeed,

direction with shareholders. To be


We meet ... |

to help.

If you ask me…years later how a place that was in the


Population (census 2012): Projected annual GDP growth rate, 2014 in October 2014: Projected annual GDP growth rate, 2015 in October 2014: Total FDI in 2013 (Banco Central de Chile):

Total FDI: Life expectancy (world health statistics 2014, OMS):

GNI per capita in 2014: Ethnic groups:

Size: Number of states:

EY contact

Charles Bunce Jones

[email protected]

Jorge Vio Niemeyer

[email protected]

ChileCo

untr

y sp

otlig

ht


Regular | Chile

Cand is endowed with abundant natural resources and wildernesses, such lakes,

as well as the driest desert in the world.

as the wine industry which has been

years.

This is why EY has recently created

clients.


a project.

For more information, visit ey.com/international-development. Contacts

Development: why EY?

International development is a priority for EY. We have extensive experience working on international development projects around the world and we’d like to hear more about your needs. Contact one of our professionals today.

40


Regular | EY contacts

AmericasMarc E. AndersenUS

Cherie Anne FaiellaUS

Switzerland

Dan KaplanUS

Michael BeaulieuUS

Olaf SmuldersUS

Charles-Antoine St JeanCanada

Claudia ValenzuelaBrazil

Moises AlcaldeMexico

Carlos GallegosCosta Rica

AfricaJoe CosmaSouth Africa

Baïdy DiengSenegal

Laban GathunguKenya

Adekunle SalauNigeria

Lindsey DomingoDemocratic Republic of the Congo

Djabanor NarhGhana

Julius Ngonga Kenya

Brunhilde BarnardSouth Africa

Mildred TanSingapore

Bill BanksSydney

Lynn ThoSingapore

Zaqy MohammedSingapore

EuropeAlessandro CenderelloBelgium

Dave ReadUK

Michael CupitUK

Maryam HussainUK

Petr MedvedevUK

Ioanna KokkinouGreece

Dexippos AgouridesBelgium

Daina BelickaLatvia

Anton AnitsevRussia

Olesya MelnykUkraine

Middle East and North AfricaNelson JorgeJordan

Abbas AliPakistan

Aqueel Merchant Pakistan

IndiaSiddhartha DasIndia

Guru MalladiIndia

Discover how we’re building a better working world.

For more information, visit ey.com.

CHANGING THE WORKING WORLD IS A LONG-TERM PROJECT.BUT WE’RE STARTING TO LAY THE FOUNDATIONS.

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M Lim

ited. All R

ights Reserved. ED

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