Partnerships to Strengthen Reform - How Do They Work? African Development Bank Group AfDB Symposium...
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Transcript of Partnerships to Strengthen Reform - How Do They Work? African Development Bank Group AfDB Symposium...
Partnerships to Strengthen Reform - How Do They Work?
African Development Bank Group
AfDBSymposium on WTO Trade Facilitation for African Countries Nairobi, Kenya
November 13-15, 2012
14 November 2012 1
Structure of Presentation
• How Priorities are Determined: AfDB’s Approach
• AfDB Funding Instruments• Conclusion
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How Priorities are Determined
• The potential benefits of TF are substantial– Transport & NTBs account for 14% of trade costs in Africa’s landlocked
countries, compared to a developing country average of 8.6% (AfDB)
– Costs prohibitively higher for some land locked countries: • Malawi (56%); Chad (52%); Rwanda (46%), etc…
– Implementing TF measures requires substantial investment in human resources, hard and soft infrastructure
Therefore, provision of TA & Capacity Building to regional economic Therefore, provision of TA & Capacity Building to regional economic communities (RECs) and regional member countries (RMCs) in the communities (RECs) and regional member countries (RMCs) in the area of TF represents a sound intervention for the Bankarea of TF represents a sound intervention for the Bank
Transforming landlocked into “LAND-LINKED” countries…?
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How Priorities are Determined
• Trade Facilitation Framework: Provides an approach to mainstream TF in the Bank’s regional & country operations
• Adopts a holistic approach that includes the ports, transport corridors, border posts
• Is anchored around a set of guiding principles: Ownership, Prioritisation, Selectivity, Developmental Effectiveness & Results, Strategic Partnerships, Alignment with relevant international standards
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How Priorities are Determined
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AFDB FUNDING INSTRUMENTS
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Differentiated Products by Category
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MICs
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Low Income Countries
• ADF is the concessional window of the African Development Bank Group
• ADF takes a three year outlook: ADF 12 covers the period 2011-2013
• Focused on infrastructure, governance, fragile states and Regional Integration
• ADF-13 currently under negotiation
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RO Envelop
• A dedicated envelop within the ADF for operations in ADF eligible countries only
• Critical for supporting regional integration initiatives: In ADF-12, the RO envelop represents 20% of ADF resources
• In terms of value, it is estimated at UA1.163 billion (approx. US$1.8 billion)
• Example of initiatives: Capacity Building for Tripartite (C-E-S Tripartite )
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Regional Operations Selection and Prioritization Framework-Prioritisation of RO projects follow the RO operations Selection & Prioritisation Framework, a 2 State process
Examples of Projects funded under the RO Envelope in 2011
Project Name Approved RegionRO
envelope UAm
PBA + FSF
contrib.UA m
Total AmountUA m
2011
Mombasa-Nairobi-Addis Ababa Road Corridor Phase III
Yes East 150 75 225
Kazungula Bridge Yes South 34 17 51
Electrical interconnection: Boali, RCA – RDC
Central 48 12 60
Abidjan-Lagos corridor Road corridor Yes West 52 26 78
Trans Gambia River Bridge Yes West 65 2 67
CGIAR Support to Agricultural Research Yes All 40 RPG 40EAC Payment system development project
East 15 RPG 15
Managing for Development Results Yes All 9 RPG 9
African Virtual University, Phase 2 Yes East 10 RPG 10
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Thematic Trust Funds• Focused on thematic areas such as trade capacity• Africa Trade Fund (AfTra): focusing on trade related capacity building• NEPAD IPPF: focused on design of infrastructure projects to ensure
quality and entry• PIDA – Africa’s framework to implement infrastructure projects until
the year 2040, estimated at US$360 billion – PIDA Priority Action Plan (2012-2020)- first set of immediate priorities - contains 51 projects
and programmes– Multi-donor funded: AfDB, Nigeria Technical Cooperation Fund, Islamic Development Bank,
DfID, EU/AU
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Conclusion
• The potential benefits of TF to developing countries are substantial & it’s in the best interest of African governments to invest in TF initiatives to boost their competitiveness & trade
• Regional Integration is a major priority for the Bank and this is reflected in all key strategies
• Hence, support to RECs & RMCs in TF Technical Assistance and Capacity Building is key, backed by a number of funding products such as the dedicated: RO Envelop, AfTra
• Understanding the Bank’s approach to TF support is key for accessing assistance for your needs
• Alignment with agreed strategies is critical
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Patrick KANYIMBONEPAD, Regional Integration & Trade Division
African Development Bank13 rue de Ghana, B.P. 323-1002, Tunis Belvedere
TunisiaTel: +216-71101683 Fax: +216.71254295
[email protected] website: www.afdb.org
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