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AAAP in the Media

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Conakry city climate stress test

Submitted by Trine Tvile on
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AAAP upstream status
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AAAP facility upstream
40000
PAC date
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Context

Currently, Africa’s infrastructure needs are around USD 130–170 billion a year, with an investment gap of over 50–60% of that amount. Making Africa’s infrastructure resilient adds only an average of 3% to total costs, but every $1 spent could yield $4 of benefits. 

The Africa Infrastructure Resilience Accelerator (Pillar 2 of the Africa Adaptation Acceleration Program (AAAP)) focuses on accelerating infrastructure resilience efforts on the continent. It will strengthen the enabling environment and provide the technical support to scale up investment in resilient infrastructure. It will also ensure that new and existing infrastructure uses nature-based solutions and create positive socioeconomic impacts and green jobs. By 2025, Pillar 2 of the AAAP aims to scale up investment at national and city level for climate-resilient infrastructure in key sectors such as water, transport, energy, and waste management, and integrate resilience in up to 50% (by value) of new infrastructure projects.

The City Adaption Accelerators (CAAs) are carrying out Rapid Climate Risk Assessments in target cities, which aim to improve climate adaptation and build resilience in urban areas.

GCA Focal Point
Task manager
Climate Change Officer
Project category
Project type
Show on front
On
Example results indicator
Strengthened urban climate risk management in cities and their hinterlands
Objectives

The primary purpose of the RCRAs is to inform the identification and preparation of AfDB projects.

The RCRAs will inform the development of a comprehensive climate adaptation strategy and prioritization plan and are a crucial step towards the development of the CAA for each of the target cities. The overarching objective of the CAA is to create a shared strategic framework for GCA’s engagement in climate adaptation and resilience building in urban areas. The development objective of the CAA is to support cities and countries to strengthen their urban climate adaptation and resilience outcomes through enhanced (1) understanding; (2) planning; (3) investments; and (4) governance and capacity building.

AAAP added value
  • Outputs will inform future discussions surrounding climate adaptation investments 
  • GCA is demonstrating its unique value add in its ability to provide technical guidance to firms towards developing well-informed analyses
  • Literature review of vulnerability and adaptive capacity assessments of cities to climate change
  • Scoping of past and current initiatives and key stakeholders relevant for adaptation and resilience building in cities
Expected Outcomes
  • City Scan: rapid review of actions around climate hazard and risk assessments and more locally focused assessments of vulnerability and adaptive capacity
  • Rapid Climate Risk Assessment: an overview of the key climate hazards and associated risks; will indicate whether an in-depth climate risk assessment is required.
  • City Scoping: provides insight into past and current initiatives relevant for adaptation and resilience building and identifies key stakeholders and relevant initiatives
Expected impacts

As part of the CAA, the RCRAs will contribute to the following impacts:

  • Strengthened urban climate risk management in cities and their hinterlands
  • Improved climate adaptive spatial planning at the municipal and regional levels
  • Enhanced water resources management for more equitable access to ecosystem benefits
  • Enhanced resilience, consistency, inclusiveness and integration of urban drinking water, sanitation and solid waste management services
  • Improved urban liveability and public health due to a reduction in climate risks stemming from heat stress and disease
Start Date
End Date
Fincial instrument
Grant
AAAP Focus Areas
Infrastructure
Project Value

€40,000

Unique identifier
376082

Reinforcing Resilience to Food and Nutrition Insecurity in the Sahel (P2-P2RS)

Submitted by Trine Tvile on
AAAP upstream status
Sector
AAAP facility upstream
500000
PAC date
MDB board date
Sub-sector
Project stage
Context

The Sahel, which lies between the Sahara Desert to the north and tropical savannas to the south, is one of the largest semi-arid/arid sub-regions globally. As such, the region is highly vulnerable to climate change and other uncertainties. The impacts of climate change may have critical socio-economic consequences for the Sahel, including poor agricultural yields, increased frequency of natural disasters. Already, the number of people in the Sahel suffering from chronic food and nutrition insecurity, poverty and vulnerability to the effects of climate change is rising steadily. 

A lasting solution to food and nutrition insecurity in the Sahel requires building resilience to climate change, long-term agricultural sector financing and developing trade and regional integration. Sustained, longer-term investments in household resilience can significantly reduce the cost of emergency assistance, ultimately breaking the cycle of recurring famine. This is the most cost-effective intervention option which meets the basic needs and preserves the dignity of the populations of the Sahel. This idea is central to the Programme to Build Resilience to Food and Nutrition Insecurity in the Sahel (P2RS)

GCA Focal Point
Task manager
Project category
Project type
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Investment value
300000000
Example results indicator
5 million smallholders have access to climate services
Objectives

The overall objective of the P2-P2RS is to contribute to the substantial improvement of the living conditions and the food and nutritional security of the populations of the Sahel region. 

Specifically, the program aims to i) strengthen the resilience to climate change of agro-sylvo-pastoral producers, including through promotion of climate-smart agricultural technologies in the Sahel and the development of climate intelligent villages; ii) develop the agro-sylvo-pastoral value chains, including through the development and improvement of hydro, meteorology and climate services; and iii) support regional institutions (CILSS, APGMV, CCRS) to strengthen adaptive capacity in the Sahel.

AAAP added value
  • Design digital adaptation solutions (Digital Climate Advisory Services, DCAS) for the Sahel context
  • Investment readiness and infrastructure, institutional and farmer capacity needs for DCAS
  • Feasibility study to integrate DCAS into agricultural extension and agrometeorological advisory to smallholder farmers and  pastoralists
Expected Outcomes
  • 1 million rural households have access to digital or data-enabled climate-smart technologies
  • 500,000 smallholders have adopted adaptation practices
  • 5 million smallholders have access to climate services;
  • Development and improvement of hydro, meteorology and climate services
  • The development of climate-intelligent villages
Expected impacts
  • Promotion of climate-smart agricultural technologies in the Sahel
  • Resilience to food and nutrition security built for the targeted populations
Start Date
End Date
Fincial instrument
Loans
Grant
AAAP Focus Areas
Agriculture
Project Value

USD 300 million

Unique identifier
271379

Staple Crops Processing Zone (SCPZ): funding proposal to the Green Climate Fund

Submitted by Trine Tvile on
AAAP upstream status
Sector
AAAP facility upstream
40000
PAC date
MDB board date
Sub-sector
Project stage
Context

The target countries of Democratic Republic of the Congo, Ethiopia, Togo and Zambia are regions experiencing high deforestation, poor agriculture yield and increasing poverty exacerbated by climate change. Across all four countries, climate variability and change has become a major threat to sustainable development. 

As part of efforts to address these challenges, the four countries are implementing national projects to establish Staple Crops Processing Zones: initiatives designed to concentrate agro-processing activities within areas of high agricultural potential to boost productivity and integrate production, processing and marketing of selected commodities. These initiatives are purposely built shared facilities, to enable agricultural producers, processors, aggregators and distributors to operate in the same vicinity to reduce transaction costs and share business development services for increased productivity and competitiveness.

Developing adequate infrastructure (energy, water, roads, ICT) in rural areas of high agricultural potential should attract investments from private agro-industrialists/entrepreneurs to contribute to the economic and social development of rural areas.

GCA Focal Point
Task manager
Project category
Show on front
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Investment value
427000000
Example results indicator
Increased resilience and enhanced livelihood of about 55% of highly vulnerable people and communities.
Objectives

The Staple Crops Processing Zone (SCPZ) development program aims to transform agriculture production in regions experiencing high deforestation, poor agriculture yield and increasing poverty exacerbated by climate change, including the target countries of Democratic Republic of the Congo, Ethiopia, Togo and Zambia. 

The specific objectives of SCPZ are: (i) improving access to seed capital through grants and matching grants; (ii) supporting productivity enhancement through introduction of new technologies and agricultural inputs; (iii) improving access to infrastructure by supporting investment; (iv) improving the capacity of producer cooperative through training and TA, especially for targeted women and youth groups; (v) facilitating market linkages throughout-growers’ schemes; and (vi) facilitating on-farm value addition by targeting limited value chains and linking farmers to the supply chain. 

GCF financing is sought to strengthen one of the project components of SCPZ in Democratic Republic of the Congo, Ethiopia, Togo and Zambia.

AAAP added value
  • Through the technical assistance program, AAAPwill accelerate the mobilization of adaptation finance.
Expected Outcomes
  • Increased carbon sinks in soil and above-ground biomass
  • Reduced carbon dioxide/other greenhouse gas emissions from farms due to efficient energy use
  • Increased renewable energy production from biomass, either as a substitute for fossil fuels or as a replacement for burning of fuel wood or crop residues
  • Fewer incidents of bare soils, reduced soil erosion and increased water percolation.
  • Reduced emissions through low-emission energy access and power generation 
  • Reduced emissions due to improved waste management, including by recycling waste and use of waste in biogas systems
  • Reduction of emissions from land use and deforestation, and enhancement of forest carbon stocks.
Expected impacts
  • Increased resilience, including to extreme events such as droughts and floods, and enhanced livelihood of about 55% of highly vulnerable people and communities

  • Increased access to better health and wellbeing, and food and water security to over 100,000 beneficiaries, in addition to provision of alternative sources of energy

  • Increased resilience of ecosystems and ecosystem services in forests and savannas

Start Date
End Date
Fincial instrument
Grant
Loans
Counterpart financing
AAAP Focus Areas
Agriculture
Project Value

USD 427 million:

  • Funding proposal to GCF seeking USD 174.02 million (USD 130.02 million grant and USD 44 million loan)
  • AfDB providing USD 111.2 million (USD 85.2 million loan and USD 26 million grant)
  • Co-financiers:

European Union, USD 10.4 million (grant)

BOAD, USD 17.6 million (loan)

Korea Exim Bank, USD 50 million (loan)

Korea Fund, USD 5 million (grant)

Islamic Development Bank, USD 31 million (loan)

Governments of target countries, USD 28 million (counterpart financing)

Unique identifier
558892

Global Center on Adaptation, AfDB host regional forum on the future of resilient food systems in Africa

Submitted by Trine Tvile on
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The Global Center on Adaptation (GCA) in collaboration with the African Development Bank and the Wangari Mathai Institute have concluded a three-day regional forum on the future of resilient food systems in Africa.

The Forum, called the Future of Resilient Food Systems in Africa – AAAP Digital Solutions for a Changing Climate provided training aimed at strengthening the capacity of stakeholders from across Eastern Africa to design and implement solutions to improve food security and climate resilience and to facilitate knowledge sharing among farmers on approaches to scale up the use of Digital climate-informed advisory services, or DCAS.

Digital climate-informed advisory services are tools and platforms that integrate climate information into agricultural decision-making. These services range from digital mobile apps, radio, and online platforms to digitally enabled printed bulletins based on climate models and extension services that utilize climate information platforms.

DCAS offers crucial opportunities to build the resilience of small-scale producers in the face of worsening climate change impacts. From seasonal forecasts to pest advisories, effectively designed services provide producers with the resources to adapt to climate shocks and plan for new climate conditions.

Globally, more than 300 million small-scale agricultural producers have limited or no access to such services because service provision is still fragmented, unsustainable beyond project cycles, and not reaching the last mile.

Speaking at the opening ceremony of the forum, Professor Patrick Verkooijen, CEO of Global Center on Adaptation called for urgent financial support to put Africa on the path of food sovereignty.

“Africa needs urgent support to scale up the implementation of adaptation solutions that are already yielding good results for irrigation, developing drought-resistant seeds, crops and livestock diversification, “ he said. 

“Through the African Adaptation Acceleration Programme, AAAP, we are rolling out a $350 million project to build resilience for food and nutrition security in the Horn of Africa towards mobilising new digital climate technology for market information, insurance products, financial services that can and must be tailored to smallholder farmers’ needs”, he added.

Speaking on behalf of the African Development Bank’s East Africa Regional Director General,  Nnenna Nwabufo, Dr Pascal Sanginga, Regional Sector Manager for Agriculture and Agro-Industries noted that the forum was timely, coming hot on the heels of the recently concluded Dakar 2 Feed Africa-Food Sovereignty and Resilience summit , organised by the African Development Bank.

“The Africa Adaptation Acceleration Program (AAAP) is already contributing to closing Africa’s adaptation gap by supporting African countries to make a transformational shift in their development pathways by putting climate adaptation and resilience at the center of their policies, programs, and institutions. There is no doubt that AAAP will be a strong component of the Country Food and Agricultural Delivery Compacts to accelerate the transformation of Africa’s food systems and build a more resilient Africa”, he said.

Professor Stephen Kiama Gitahi, Vice Chancellor of the University of Nairobi, reiterated the relevance of the forum pointing out that 70% of the population in Eastern Africa live in rural areas and depend on agriculture for their livelihoods. He encouraged the trainers to simplify the modules in a manner that removes the fear for technology and accelerate adaptation for rural farmers. Citing the legacy of late Professor Wangari Maathai he stated:  

“We acknowledge that gaps exist on climate adaptation in the rural communities and those can be smartly bridged with the use of digital smart agriculture and climate innovations to create great conservation impact in our region.”

The forum brought together stakeholders from ministries of agriculture, related government agencies, public research institutions, farmer organizations, universities and non-profit organizations working on climate adaptation for food security in Eastern Africa. These included participants from Djibouti, Eritrea, South Sudan, Burundi, Rwanda, Mauritius, Tanzania, Seychelles, Sudan, Ethiopia, Rwanda and Kenya.  

 

About Global Center on Adaptation
The Global Center on Adaptation (GCA) is an international organization which works as a solutions broker to accelerate action and support for adaptation solutions, from the international to the local, in partnership with the public and private sector. Founded in 2018, GCA operates from its headquarters in the largest floating office in the world, located in Rotterdam, the Netherlands. GCA has a worldwide network of regional offices in Abidjan, Cote d’Ivoire; Dhaka, Bangladesh and Beijing, China.

About the Wangari Maathai Institute, University of Nairobi
The Wangari Maathai Institute (WMI) for peace and environmental studies is a global centre for teaching and research on environmental management, governance, peace and conflicts and the nexus between peace and democracy. The centre was founded in 2009 with the support of the Government of Kenya (GoK), the African Union(AU) and the African Development Bank(AfDB) to celebrate and immortalize the work of the late Nobel Laurete
Prof.Wangari Maathai who was a global champion on environmental conservation and governance. The centre trains future leaders and Champions for environment. The Centre is located in the serene environment in Upper Kabete suburb of Nairobi City.

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Ethiopia: African Development Fund approves $13.95 million grant for Borana Resilient Water Development for Improved livelihoods program

Submitted by Trine Tvile on
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The Board of Directors of the African Development Fund has approved a $13.95 million grant to the Government of Ethiopia to implement the first phase of a livelihood improvement project for pastoralist communities in Ethiopia’s drylands.

The Borana Resilient Water Development for Improved Livelihoods Program will enhance access to climate-resilient, gender-sensitive integrated and sustainable water and sanitation services. Phase one of the program will focus on developing well-field infrastructure and a transmission pipeline to a storage tank.

The Global Center on Adaptation (GCA) will contribute €300,000 to the program to strengthen adaptation and resilience, under the Africa Adaptation Acceleration Program, a partnership with the African Development Bank.

GCA will provide technical assistance for the development of an in-depth understanding of climate related risks to improve the climate resilience of the catchments. It will also design a strategy and approach to involve local communities, and carry out a gender climate vulnerability and resilience assessment as an integral part of climate adaptation.

The scheme will bolster access to water supplies in Elweya, Dubluk, and Yabel districts, covering 62 rural villages and 12 towns with an estimated population of 308,576 people—half of them women – and 975,750 livestock.  

Osward Chanda, Director of Water Development and Sanitation at the African Development Bank, said: “The Bank’s support is a coordinated response with the Government of Ethiopia to mitigate water, sanitation and climate challenges, develop sustainable water structures, and improve socioeconomic outcomes in Borana.”

Phase one of the program will be implemented over four years. The Borana Resilient Water Development for Improved Livelihoods Program will lead to improved health outcomes, nutrition and food security.

In the last 15 years, Ethiopia has suffered eight major droughts with adverse consequences for its economy and the livelihoods of its people, resulting in forced migration and displacement of humans and livestock. Droughts in the Borana area have been linked to increased violent conflict and boundary disputes, and unsafe drinking water, and inadequate sanitation, which remain critical health concerns in the Ethiopian lowlands.

The Borana program aligns with the Bank’s Strategy for Addressing Fragility and Building Resilience in Africa as well as its Gender Strategy, Jobs for Youth in Africa Strategy, Multi-Sectoral Nutrition Action Plan, and the Bank’s Climate Change Policy which seeks to invest in programs which boost climate resilience and adaptation.

 

Contact: 

Olufemi Terry, Département de la communication et des relations extérieures, medias@afdb.org(link sends e-mail)

Article type

Ethiopia Wheat Value Chain Development Project (EWVCDP)

Submitted by Trine Tvile on
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AAAP upstream status
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PAC date
MDB board date
Sub-sector
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The wheat demand gap in Ethiopia is 0.6 million MT per year and is growing. As a result, the country is faced with a huge import bill estimated to be USD 540 million annually to satisfy the local demand for wheat. In addition, wheat productivity is only at 3.0 MT/ha. Increasing wheat production is a core part of Ethiopia’s Ten-Year Development Plan (2021-2030) to accelerate economic progress and ensure national food security. 

To achieve self-sufficiency and be a net exporter by 2025/26, the Government of Ethiopia launched the National Wheat Flagship Program (NWFP) for wheat self-sufficiency and import substitution, a program to expand and promote irrigated wheat production on a total area of one million Ha in 2022/23 season and expand it by 5-10% annually. To support achieve this target, the African Development Bank financed the Ethiopia Wheat Value Chain Development Project (EWVCDP) to contribute to meeting Ethiopia’s wheat demands, sustain the import substitution goal and produce surplus for export.

GCA Focal Point
Project category
Show on front
Off
Investment value
82600000
Example results indicator
Increased wheat production through mechanisation, extension and advisory services
Objectives

The objective is to improve production and productivity of wheat in Ethiopia with the aim of promoting national wheat self-sufficiency, regional trade, and exports, at the same time, increase incomes and improved livelihoods for wheat value-chain actors.

AAAP added value
  • Conduct a suitability analysis to assess local climatic conditions and food security, the structure of the local economy and access to resources, and to identify parts of the country that are performing below potential in terms of agricultural productivity
  • Using a hybrid of climate risk assessment tools to generate micro-region climate risk maps and information to highlight local enabling conditions for particular interventions to accelerate adaptation in agriculture 
  • Facilitate the production of a feasibility and blueprint of the integration of digital adaptation solutions
  • Integrate digital climate adaptation solutions in the wheat farmer registration system 
  • Support capacity building of extension agents and stakeholders to deploy digital climate advisory services and digital adaptation solutions in the delivery and implementation of agricultural extension services
Expected Outcomes
  • Facilitate access to farm inputs (seeds and fertiliser)
  • Improve the efficiency of existing irrigation schemes through rehabilitation and maintenance of infrastructure –desilting, drainage, extend canals
  • Strengthened and established full package mechanization service centres in the wheat growing areas
  • Delivered extension and advisory services to farmers on agricultural practices (soil, crop and water management packages, disease and pest management and post-harvest handling)
Expected impacts
  • Increased wheat production through mechanisation, extension and advisory services 
  • Enabled market linkages, Agri-Finance and private investments
  • Rehabilitated and expanded Irrigation Infrastructure by increasing the efficiency of existing  irrigation  schemes
Start Date
End Date
Fincial instrument
Loans
AAAP Focus Areas
Water
Infrastructure
Project Value

AfDB Investment USD 54 million 

Total of USD 94.30 Million

Unique identifier
225069

AAAP webinar: Innovation essential for climate-smart future, but it's not enough

Submitted by Trine Tvile on
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The 2022 United Nations Climate Change Conference, COP27, is dubbed ‘African COP’ as the impact of climate change on African countries will be a key theme of discussions. Agriculture and food systems will also be a critical focus of COP27, with Saturday, 12 November, dedicated to both themes, in addition to adaptation. Also high on the climate agenda is the role of the youth, as 10 November is dedicated to their participation.

Ahead of COP27 and in line with their commitment to this youth agenda, the African Development Bank and the Global Center on Adaptation hosted a webinar to examine ways to make agriculture attractive to the youth.

The webinar titled, Are Climate-Smart and Digital Agriculture Solutions the Silver Bullet to Attract Youth, highlighted the potential of climate-smart and digital agriculture in attracting young people and thereby rejuvenating an aging global agricultural sector.

Dr. Kevin Kariuki, African Development Bank’s Vice President for Power Energy, Climate and Green Growth, pointed out the challenges the agriculture sector faces due to the changing climate change.

“Agriculture across most of sub-Saharan Africa is still predominantly rain-fed and therefore extremely vulnerable to both short-term fluctuations and long-term changes in climate conditions. It is the most exposed sector with estimates indicating that climate change will cause a decrease in yields of 8 – 22% for Africa’s rain-fed staple crops over the next 20 years,” Kariuki said.

Dr. Beth Dunford, African Development Bank’s Vice President for Agriculture, Human and Social Development, noted that while agriculture holds tremendous potential for job creation in Africa, its current traditional form is not attractive to young people for various reasons, including negative perceptions.

“Who wants to wear overalls, dig the field with a hoe or drive a tractor when we can do it in a suit and dust coat, right? However, technology makes agriculture cool enough to motivate them to use tech-enabled enterprises to be part of agricultural value chains,” Dunford said.

Prof. Anthony Nyong, Senior Director for Africa at the Global Centre on Adaptation, said: “There is a gap in the agriculture sector in Africa, and that is in the use of digital solutions.”

AAAP’s Climate Smart Digital Technologies for Agriculture and Food Security Pillar is scaling up access to digital technologies and associated data-driven agricultural and financial services for at least 30 million African farmers.

In the African Development Bank’s Program to Build Resilience for Food and Nutrition Security in the Horn of Africa (BREFONS), currently ongoing in Djibouti, Ethiopia, Kenya, Somalia, South Sudan, and Sudan, the AAAP is facilitating the integration of climate-smart digital technologies for adaptation and resilience.

“The project will increase the productivity of crops and livestock by 30%, reaching about 1.3 million farmers and pastoralists using climate services such as index insurance. About 55,000 additional jobs will be created for youth and women,” said Oluyede Ajayi, Africa Program Lead, Food Security and Rural Well Being, Global Centre on Adaptation.

Panelists said the youth must utilize their digital skills to accelerate the transformation of the agricultural sector, which forms the central pillar of Africa’s economy. They urged participants to contribute to solutions that enhance market linkages to promote agribusiness.

“Africa’s significant youth population faces rising unemployment with myriad negative consequences. These challenges are further exacerbated by climate shocks, skill gaps & limited preparedness to address the effects of climate change,” said Andre-Marie Taptue, Principal Economist at the African Development Bank's Jobs for Youth program.

AAAP’s YouthAdapt program promotes sustainable job creation through entrepreneurship in climate adaptation and resilience in Africa by unlocking $3 billion in credit for adaptation action.

Last year, the first set of ten young African entrepreneurs and Micro, Small, and Medium-sized Enterprises offering innovative solutions and business ideas that can drive climate change adaptation and resilience were awarded at COP26 in Glasgow. This year the Africa Youth Adaptation Competition 20 enterprises across Africa will each receive up to $100,000 in addition to mentorship and coaching to support their climate change adaptation innovation.

Panelists included Claude Migisha from the African Development Bank, Dr. Fleur Wouterse, and Aramide Abe from the Global Center of Adaptation. They shared their views on how AAAP was shaping and adding value to the Bank Digital Agriculture Flagship program, ways to accelerate investor engagement in agriculture adaptation, and how the YouthADAPT was moving the needle on entrepreneurship, unlocking finance and job creation.

Gislaine Matiedje Nkenmayi from Mumita Holdings, a recipient of the 2021 YouthADAPT Challenge award, shared her experience on how the $100,000 grant transformed her enterprise.

“With the grant, we were able to reach out to more than 10 cooperatives with a total of 257 smallholder farmers, to whom we offer free advisory services, low-cost greenhouses and solar-powered irrigation systems. We have been able to expand production from 100kg to 1000kg of fresh vegetables weekly,” Nkenmayi said.

In her concluding remarks, Edith Ofwona Adera, Principal Regional Climate Change Officer and AAAP coordinator at the Bank stressed the need to strengthen adaptation and resilience measures and expedite mainstreaming climate adaptation for transformation at scale. She called for the engagement of the private sector, given the role they can play in adapting to climate change, financing adaptation, and supporting others through products and services for resilience.

Article type

Speech by Dr. Akinwumi A. Adesina President, African Development Bank Group at the Thirty-Fifth Ordinary Session of the Assembly of the African Union Addis Ababa, 5-6 February 2022

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  • Mobilizing Financing for Africa’s Accelerated Economic Recovery, Development and Integration

  • Your Excellency Macky Sall, President of the Republic of Senegal and Chairperson of the African Union
  • Your Excellency Abiy Ahmed, Prime Minister of the Federal Democratic Republic of Ethiopia, Our Gracious Host
  • Your Excellencies Heads of State and Government
  • Your Excellency Moussa Faki Mahamat, Chairperson of the Africa Union Commission
  • Your Excellency Amina Mohammed, Deputy Secretary General of the United Nations, Representing the Secretary General of the United Nations
  • Your Excellency Monique Nsanzabaganwa, Deputy Chairperson of the African Union Commission
  • Honorable Ministers
  • Honorable Commissioners of the African Union Commission
  • The Executive Secretary of the UN Economic Commission for Africa
  • The Secretary General, the African Continental Free Trade Area Secretariat
  • Heads of African Union Organs and Institutions
  • Chief Executives and Heads of Regional Economic Communities
  • Permanent Representatives to the African Union
  • Members of the Diplomatic Corps
  • Distinguished Ladies and Gentlemen
     

I deeply appreciate this honor and opportunity offered me by the Chairperson of the African Union Commission, the Deputy Chairperson, Commissioners, and the Permanent Representatives Committee.

I wish to congratulate His Excellency, President Macky Sall upon his election as the Chairperson of the African Union. Your Excellency, President Macky Sall, you have taken on the baton from His Excellency, President Felix Antoine Tshisekedi, with whom we have had the distinguished pleasure of working closely during his tenure as Chairperson.

Thank you, President Tshisekedi, for your remarkable leadership and outstanding service at the helm of our Union.

Your Excellencies, I will be speaking to you today on “Mobilizing Financing for Africa’s Accelerated Economic Recovery, Development and Integration”.

This is a very important and timely discussion, given that the African Development Bank has been given the mandate by a decision of the African Union to lead the mobilization of resources for Africa, to achieve Agenda 2063.

As this is the first time that I have had the opportunity to address you since my re- election, Your Excellencies, I wish to express to you, individually and collectively, my deep appreciation for your strong and unanimous support, and those of your Ministers of Finance and Foreign Affairs, for my re-election as President of the African Development Bank in August 2020. I thank H.E. President Muhammadu Buhari, my President, especially, for his trust, confidence, and unflinching support during this assignment which he sent me on to accomplish for Africa. I also wish to thank all our former heads of state for their steadfast support.

As always, I will continue to serve our beloved continent, and work with you to relentlessly accelerate the achievement of Agenda 2063: the Africa we want.

Your Excellencies, meeting today, physically, is itself an important milestone; a welcome relief following two years of the Covid-19 pandemic that has upended the world in an unprecedented manner.

It has been a global economic cyclone. Africa witnessed a decline in GDP growth of 2.1% in 2020, its lowest in twenty years. Africa’s GDP fell by $165 billion. Over 30 million jobs were lost and over 26 million people fell into extreme poverty.

I wish to commend the leadership efforts of the African Union, and our Heads of State and Government, for the critical roles you have played in dealing with the pandemic and the socio-economic challenges in its wake. Today, thanks to these efforts 11% of the population has been fully vaccinated, and another 16% has been partially vaccinated.

However, while developed countries have moved to booster shots, Africa is still struggling with basic shots.

Your Excellencies, we must learn from this experience. Africa can no longer outsource the security of the lives of its 1.4 billion people to the benevolence of others.

We must secure African lives!

It is time your Excellencies, to build Africa’s healthcare defense system. This must be based on three strategic priorities.

First, building Africa’s quality healthcare infrastructure. Second, building Africa’s pharmaceutical industry and Third, building Africa’s vaccine manufacturing capacity.

Africa needs $600 million to $1.3 billion to meet its goal of attaining 60% vaccine production by 2040. Investing in health is investing in national security.

The African Development Bank plans to invest $3 billion to support pharmaceutical and vaccines manufacturing capacity for Africa.

To address the socio-economic impacts of the pandemic and support economic recovery, Africa will need some $484 billion over the next 3 years. To eliminate extreme poverty by 2030, the continent will need $414 - $784 billion per year. Africa will need $7-$15 billion a year to deal with climate change. The continent will also need between $68 -$108 billion per year to fix the infrastructure financing gap.

Your Excellencies, we must drastically mobilize a lot more resources!

The African Development Bank, as the premier development financing institution in Africa, has been mobilizing resources to meet this challenge. Thanks to your support, the general capital of the Bank was increased in 2019 by 125%, rising from $93 billion to $208 billion, the highest since its establishment in 1964.

These resources have allowed the African Development Bank to scale up support to African economies to tackle the pandemic. The Board of Directors of the Bank approved a Crisis Response Facility of up to $10 Billion. The Bank also launched a $3 Billion Fight COVID-19 Social Bond on the international capital markets, which was the largest ever US- dollar denominated social bond in world history. The Bank provided $ 27 million as grants to the African Centers for Disease Control.

Your Excellencies, over the past six years, the African Development Bank has provided about $39 billion in financing to the continent in support of its High5 priorities to: light up and power Africa; feed Africa; integrate Africa; industrialize Africa; and improve the quality of life of the people of Africa.

These High5s are the accelerators for achieving Agenda 2063.

An assessment of these High5s by the United Nations Development Program indicated that the High5s would lead to the achievement of 90% of the Agenda 2063 goals and 90% of the Sustainable Development Goals targets.

Your Excellencies, so much has been achieved on the High5s. In the past five years, the work of the African Development Bank Group has impacted the lives of 335 million people – fast tracking the move towards achieving the Agenda 2063 goals. Close to 21 million people have gained access to electricity. Nearly 76 million people have benefitted from agricultural technologies for food security. More than 12 million people have gained access to finance through private sector investee companies. Over 69 million people have been provided with improved transport. And 50 million people have gained access to improved water and sanitation.

Your Excellencies, Feeding Africa remains a top priority. Our Technologies for African Agricultural Transformation which we call TAAT, has provided drought tolerant technologies for 12 million farmers across Africa. The Bank is supporting the creation of special agro-industrial processing zones in 18 countries to help drive the transformation of agriculture as a major source of wealth and jobs.

Your Excellencies, the African Development Bank, the International Fund for Agricultural Development, and the African Union Commission launched the Facility for African Food Security and Nutrition at the UN Food Systems Summit. Now dubbed Mission 1 for 200, this financing facility will help to mobilize $1 billion, provide climate resilient and nutrition-rich technologies for 40 million farmers, produce 100 million metric tons of food, and feed 200 million people. This will help to reduce food insecurity in Africa by 80%.

This is particularly crucial in 2022, the Year of Nutrition in Africa.

Your Excellencies, the Bank is investing heavily in renewable energy. This includes the world’s largest concentrated solar power system in Morocco and the Lake Turkana energy project, the largest windfarm in Africa. Together with Africa50, we have co-financed the 3,000 MW Ben Ban solar power project in Egypt. The Bank is also implementing a $20 billion Desert-to-Power initiative to develop 10,000 MW of solar power for the Sahelian zone of Africa, to provide electricity for 250 million people. This will become the largest solar zone in the world.

Your Excellencies, Africa faces a huge challenge with energy transition, and with climate change. The Bank is working to establish an African Just Energy Transition Facility that will support transition from coal and heavy fuel oil into clean energy. However,

Africa will need an energy mix that includes natural gas, to ensure stability of its energy systems, power industries, and ensure competitiveness.

Your Excellencies, we must go beyond “a just energy transition” to “a just energy system.

Africa cannot be poor in an environmentally sustainable manner.

To support Africa's adaption to climate change, the African Development Bank and the Global Centre for Adaptation have launched the African Adaptation Acceleration Program (AAA-P) with the goal of mobilizing $25 billion for climate adaptation for Africa.

We must revive the Lake Chad Basin!

We must save the Sahel from desertification! We must complete the Great Green Wall!

The African Development Bank has committed $6.5 billion towards the Great Green Wall. I would like to thank UN secretary General, Antonio Guterres, and my dear sister, Amina Mohammed, Deputy UN Secretary General, for their exceptional support for this initiative.

As we move from COP26 in Glasgow to COP27 in Sharm El Sheikh, to be hosted by President El Sisi, developed countries need to meet their $100 billion commitment on climate finance to support developing countries. This will help Africa.

Promises made must be promises kept.

The issuance of Special Drawing Rights (SDRs) of $650 billion by the International Monetary Fund has helped substantially, but Africa only received $33 billion worth of SDRs. African Heads of State at the Paris Summit on African Economies, with the strong support of President Emmanuel Macron, called for a re-allocation of $100 billion to Africa. You also asked that the re-allocated SDRs pass through the African Development Bank, as a prescribed holder of SDRs.

Your Excellencies, I will appreciate your continued strong support for this. Passing the re-allocated SDRs for Africa through the African Development Bank will serve Africa very well.

First, as a AAA-rated financial institution, the African Development Bank will be able to leverage the SDRs by 3-4 times. For example, a $50 billion re-allocation through the African Development Bank will be leveraged to deliver $200 billion to African economies.

Second, the African Development Bank will help to recapitalize other African financial institutions, many of which the Bank helped to establish, including the Afreximbank, the West African Development Bank, the East African Development Bank, the Development Bank of the Central African States, the Africa Guarantee Fund, Africa-Reinsurance Company, Shelter Afrique, Trade and Development Bank, Africa50, as well as the Development Bank of Southern Africa.

I wish to also use this platform to advocate for additional shareholder funding for these institutions to play their mandated roles.

Your Excellencies, to protect Africa from future economic shocks, it is now critical to establish an African Financial Stability Mechanism. Africa is the only region of the world that has no liquidity buffers to protect the continent against shocks. Europe has … Asia has… Latin America has … The Middle East has. These regions had more protection from the economic effects of the pandemic.

Africa did not.

This has led to widespread regional spill-over contagion effects, and instability.

African economies must be protected. The African Financial Stability Mechanism will protect African economies.

Your Excellencies, we need more resources to finance Africa’s low-income countries, especially those facing fragility. The African Development Fund, the concessional institution of the African Development Bank Group, has helped to support these countries with $8.5 billion in the past five years.

The African Development Fund has delivered impressive results. The Fund financed the landmark Senegambia bridge.

It financed the Rosso bridge between Mauritania and Senegal.

It financed Corridor 13 road between Central African Republic and the Republic of Congo.

It financed the road network rehabilitation project for Comoros. It financed the Revenue Authority project for Togo.

It financed the Bas Mangoky rice irrigation project for Madagascar.

The Fund is also financing the Kandadji multipurpose dam project for Niger. However, more resources are needed to meet the rising needs of low-income

countries. I wish to request the strong support of Your Excellencies, African Heads of State and Government, and of the African Union Commission, for the 16th Replenishment of the African Development Fund later this year.

Your Excellencies, with its $25 billion in equity, the African Development Fund can leverage up to $33 billion of additional financing for low-income countries. To achieve this, we need your support to change the article in the charter of the African Development Fund that does not allow it to go to market to leverage resources. This is top priority.

We are also leveraging private investments into Africa, in innovative ways. Your Excellencies, the Africa Investment Forum, established by the African Development Bank and its partners, has helped to secure investment interests worth more than $78 billion. This spectacular level of interest includes a $24 billion transaction for the liquefied natural gas project in Mozambique. We are proud that that this project will make Mozambique the third-largest producer of liquified natural gas in the world.

The project experienced challenges from insecurity, but thanks to your collective leadership, all is now back on track.

Your Excellencies, we must now link security, investment, growth, and development closely together. To enhance the security of Africa, the African Development Bank is currently developing Security Indexed Investment Bonds. Proceeds from these bonds, when developed, will support countries and regional economic communities to do four things. First, to upgrade security architecture. Second, to repair damaged infrastructure in conflict-affected zones. Third, to rebuild social infrastructure. And fourth, to protect zones with strategic investments.

Your Excellencies, we must build a better future for our youth. It is time to create youth- based wealth all across Africa. To boost financial support for the businesses of our youth, the African Development Bank Group is exploring with countries the establishment of Youth Entrepreneurship Investment Banks. They will be first rate financial institutions run by the youth for the youth.

Your Excellencies, to unleash the business potential of women, the Bank’s Affirmative Finance Action for Women in Africa (AFAWA) is mobilizing $5 billion for women businesses.

AFAWA is now working at scale. Over $425 million was disbursed in 2021 to banks for lending to women businesses. This year, we will disburse $500 million for women businesses.

Our vision is clear: When women win, Africa wins!

Your Excellencies, the African Continental Free Trade Area offers the continent incredible opportunities to accelerate Africa’s development. To achieve this goal, the African Development Bank has invested massively in infrastructure, from roads, transport corridors, airports, seaports, railways, and digital infrastructure. Over the past 10 years, we have invested over $40 billion in infrastructure. We are connecting nations, connecting businesses, connecting people.

Your Excellencies, with Agenda 2063, Africa’s glorious future beckons! Politically, we are ready.

Financially, we are strong and prepared.

Last year, the African Development Bank was ranked the Best Multilateral Financial Institution in the world by Global Finance, the leading US Financial Magazine.

The sun is shining!

Now let us surge forward, overcoming challenges in our way, with our eyes firmly focused on the goal: the Africa we want.

An Africa prosperous, peaceful, and stable. An Africa where the youth thrive and prosper.

An Africa where our women can reach their full potential. An Africa supported by strong financial institutions.

An Africa that develops with pride, looking inwards to mobilize domestic resources, and ending illicit capital flows.

Your Excellencies, with your bold and visionary leadership, a new Africa is emerging. Just as the eagle soars above the storms, so will Africa soar and achieve its destiny.

Africa is destined for greatness!

Thank you very much Your Excellencies.

Click here for the entire speech - Illustrated version

Article type

Building resilience for food and nutrition security in the Horn of Africa (BREFONS)

Submitted by Trine Tvile on
Pillars
Regions
AAAP upstream status
Sector
AAAP facility upstream
331914
PAC date
MDB board date
Sub-sector
Project stage
Context

The target countries of this project (Djibouti, Ethiopia, Kenya, Somalia, South Sudan, and Sudan) are located in the arid and semi-arid lands, which comprise more than 70% of the Horn of Africa (HOA) region, receive less than 600 mm of annual rainfall and are characterized by recurrent droughts and unpredictable rainfall patterns. 

Despite the region’s considerable range of natural resources, with their huge potential for wealth and progress, the HOA countries are struggling to cope with their worsening ecological circumstances. Droughts are increasing in severity and frequency and their impacts are exacerbated by advancing desertification, land degradation, global warming, and climate change. These circumstances have created chronic vulnerability in the HOA, with persistent food insecurity, widespread economic hardships, conflicts, and migration. The strategic priorities of countries in the HOA are defined by their urgent need to build resilience to environmental and socio-economic shocks, through investing in sustainable development and optimizing the productivity of their resources.

GCA Focal Point
Task manager
Project category
Project type
Show on front
On
Investment value
210000000
Example results indicator
1.3 million farmers and pastoralists using climate services, e.g. index insurance with a gender focus
Objectives

Through building resilience to climate change, the overall objective of this program is to increasing, on a sustainable and resilient basis, productivity and agro-sylvo-pastoral production in the HOA, increase incomes from agro-sylvo-pastoral value chains and enhance the adaptive capacity of the populations to prepare for and manage climate change risks.

AAAP added value
  • Provide upstream technical assistance to ensure climate smart digital technologies for adaptation and resilience are integrated into the project.
  • Identifying key agriculture adaptation constraints that can be addressed by digital technologies and develop solutions
  • Assessing the conditions and opportunities for digital applications for drought index insurance 
  • Identifying opportunities for digital agricultural adaptation solutions through the preparing of climate risk and digital agriculture profiles 
  • Supporting stakeholders to identify and implement opportunities through the preparation of a digital agricultural adaptation toolkit 
  • Building the capacity of policymakers and enable policy interventions to ensure uptake of digital solutions using the toolkit. 
  • Feasibility studies and assessment on building resilience for food security in Africa; 
  • Feasibility studies to assess integration of adaptation and mitigation measures for the sustainability of nutrition and food security interventions;
  • Quality assurance and advisory services for results and evidence-based planning, management and M&E of the Youth Enterprise Development project interventions
Expected Outcomes

The programme will contribute to improving living conditions, including for women and the youth; improving food and nutrition security; increasing resilience; and peace and security in the HOA. Specifically it will: 

  • Productivity (crops and livestock) increased by 30%
  • 50% increase in digital literacy for actors across value chains, of which 80% are women and youth
  • 30% de-risked credit as a result of use of Digital Climate Advisory Services and Digital Financial Services
  • 30% increase in use of index insurance products by smallholders across target value chains
  • 55,000 additional jobs created (primarily for women and youth)
Expected impacts
  • 1.3 million farmers and pastoralists in the six countries use climate services (e.g. index insurance with a gender focus), allowing them to benefit from:

- Increased productivity and agro-sylvo-pastoral production in the Horn of Africa, on a sustainable and resilient basis

- Increased incomes (by 40%) from agro-sylvo-pastoral value chains

  • More broadly, the population of the Horn of Africa have enhanced adaptive capacity to better prepare for and manage climate change risks and variation.

 

Start Date
End Date
Fincial instrument
Loans
Grant
AAAP Focus Areas
Agriculture
Project Value

USD 210 million

Unique identifier
220559

Ethiopia - Borana Resilient Water Development for Improved Livelihoods Program (Phase 1)

Submitted by Trine Tvile on
Countries
Regions
Sector
AAAP facility upstream
300000
PAC date
MDB board date
Sub-sector
Project stage
Context

Ethiopia, with an estimated population of 120.8 million, is Africa’s second most populous country and the third-largest economy in Eastern and Southern Africa. Persistent water scarcity, lack of access to basic infrastructure, and limited adaptability of agro pastoral systems to climate shocks are constraints to resilient livelihoods, which will require specific attention in the context of recovery from the COVID-19 crisis. The country is endowed with abundant water resources (both ground-and surface-water). However, the spatial and temporal  (within  and  between  years)  distribution  of  this  resource  is  exceptionally  variable  and unpredictable, which is manifested in endemic, devastating droughts and floods.

GCA Focal Point
Task manager
Project category
Project type
Show on front
Off
Investment value
28400000
Example results indicator
Increased the availability of sustainable water resources for food production and improved nutrition, including improved agropastoral water management investments
Objectives

The objective is to improve access to climate resilient and gender sensitive integrated and sustainable water and sanitation services to pastoralist communities in dryland areas of the Borana area of Oromia region, for improved health, livelihoods, and nutrition and food security.

AAAP added value
  • Conduct climate risk screening of the infrastructure project at design and at operation and maintenance stages
  • Build resilience into infrastructure projects, prioritizing nature-based solutions, where feasible
  • Design a strategy and approach to involve local communities, tapping into local knowledge and   traditional arrangements for water resources management
  • Carry out a gender climate vulnerability and resilience assessment and develop measures to address these gender gaps as an integral part of climate adaptation
Expected Outcomes

 

  • Benefit an estimated 308,576 people and 975,750 livestock
  • Provide access to integrated, sustainable, climate-resilient and gender-sensitive water and sanitation services to pastoralist communities in the drylands of the Borana region of Oromia
  • Enhance adaptation and resilience building measures such as protection and restoration of ecosystem functions, improving access to potable water, and watershed management
  • Improve  access  to  clean  water  and sanitation  services 
  • Enhance water  resources  management
  • Increase gender equality  and  women economic empowerment 
  • Improve national infrastructure and Feed Africa priority with a target on increasing agricultural productivity
  • Increased job opportunities 
Expected impacts
  • Integrated  and sustainable water resources management (WRM), through assessment of the resource and its ecosystems, as well as supporting institutions and  enabling environment
  • Strengthen delivery of resilient water supply, sanitation, and hygiene services
  • Increased the availability  of  sustainable  water  resources  for  food  production  and  improved  nutrition,  including improved agropastoral water management investments
Start Date
End Date
Fincial instrument
Grant
AAAP Focus Areas
Infrastructure
Water
Project Value

AfDB investment of 14.1 million of total of USD 36.1 million

Unique identifier
309622