Language version

Business

Public Development Banks Call For New Financing For Africa’s Recovery Post-Covid-19

Advertisement

Published

on

A global coalition of public development banks has emphasized the urgency of immediate resources for Africa’s recovery post-Covid 19. Together, they committed to deepening cooperation to boost investment opportunities across the continent.

Participants in the meeting, hosted by the African Development Bank on May 12, brainstormed on joint actions that could help boost a strong and inclusive recovery in Africa. This would be recovery grounded in a dynamic private sector.

The African Association of Development Finance Institutions co-organized the meeting in collaboration with the International Development Finance Club, which is hosted by the Agence Française de Développement.

The meeting was held virtually and follows the first Finance in Common Summit held in November 2020. At that summit, public development banks committed to work together to support the transformation of the global economy and society towards sustainable and resilient development.

During the three principal sessions of the meeting, heads of public development banks and international partners focused on concrete proposals and innovative financial solutions to unlock the potential of African financial institutions to promote sustainable development investments in Africa.

“The African Development Bank is strongly supportive of public development banks,” African Development Bank president Dr. Akinwumi A. Adesina said in opening remarks.

He added: “As public development banks, we must deepen our ability to reach all parts of Africa. To ensure financial inclusion, especially for the unbanked, and expand access to finance, savings and insurance products and services, we need to work as one unified system. Public development banks must strengthen their capacity to deepen domestic capital markets and stock exchanges. He said this would hasten access to financing and unlock new opportunities.”

Rémy Rioux, chairperson of the International Development Finance Club, said: “African challenges, more than anywhere else, require us all to go seek coordinated responses and actions. Because in Africa, we need to leave no one behind. Let’s Finance in Common and build now a common and positive story of innovation and investment in Africa, leveraging ODA and mobilizing all willing stakeholders. The days of pure aid are over. Africa is ready for sustainable investment.”

Public development banks have a key role to play in Africa. From the beginning of the Covid-19 pandemic, institutions like the African Development Bank have channeled resources to various sectors and clients, particularly underserved areas like health, social investments, housing, agriculture and climate.

The African Development Bank’s $10 billion Covid-19 Response Facility has been instrumental in mitigating macroeconomic shocks for African countries. The Bank also announced a $3 billion social bond to support its Covid-19 funding efforts.

The Covid-19 pandemic has led to an unprecedented global health and economic crisis, affecting African economies, particularly in sub-Saharan Africa, most deeply.  A historic recession of 2.1%, the largest contraction for the sub-Saharan region in more than half a century, is threatening gains made over the last decade and attainment of the UN Sustainable Development Goals.

The pandemic has negatively impacted the debt situation for African countries. Without a resolution of Africa’s $700 billion external debt, the continent’s economic recovery will be delayed and financial market stability will be affected in the short and medium term.

“Think of the impact that this debt is having: in 2019, Africa paid $221 billion for debt service, which is 44% of the total government revenue of $501 billion in the same year,” said Dr. Adesina.

Discussions covered measures that could be taken to strengthen the balance sheet of African public development banks and provide financing and additional tools to support the private sector in Africa. Participants also discussed challenges faced by African public development banks.

The African Development Bank president will convey the outcomes of the Spring Meeting to a May 18 Summit on Financing African Economies in Paris. That summit is being convened by French President Emmanuel Macron. It is expected that there will be further pledges and announcements of financial and technical assistance to support the commitments made by the African public development banks.

African public development banks, in a  joint declaration (https://bit.ly/3vZUTmP), called for the heads of state and international organizations to support our role in the African financial system and provide us with the necessary means and incentives: a clearer mandate for climate and SDGs, additional capacity building, greater access to concessional resources as well as reinforcement of our capital bases, taking advantage of the expected SDRs issuance by the International Monetary Fund (IMF)”.

The following public development banks and partners participated in the panel discussions:

Association of African Development Finance Institutions (AADFI), Association of European Development Finance Institutions (EDFI), African Development Bank, African Export-Import Bank (Afreximbank), Agence Française de Développement (AFD), Development Bank of Southern Africa (DBSA), European Commission (EC), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Foreign, Commonwealth and Development Office (FCDO), International Development Finance Club (IDFC), KfW Development Bank, Trade and Development Bank Group (TDB), and West African Development Bank (BOAD).

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Kagame Advocates For Investment Into Africa’s Agriculture Value Chain

Published

on

Agriculture and agri-business, especially in Africa, will drive the continent’s attainment of the Sustainable Development Goals, President Paul Kagame has said.

“This is especially true as we work to make
up for the time lost to the Covid-19 pandemic,” he said adding that, “Each country and region must chart its own pathway to transformation, but this is also a global challenge that we must address together.”

Kagame was speaking in his capacity as the Chair of the African Union Development Agency-NEPAD, Heads of State and Government Orientation Committee at the official ceremony of the UN Food Systems Summit 2021 Pre-Summit.

In Africa, he continued, 70% of the working-age population is employed in the agricultural sector.

“But our continent’s food markets are often fragmented, and links to food processing and value addition services are sometimes lacking,” the President said.

He noted that digital technologies and biotechnology are playing a greater role in African agriculture, but too many farmers do not yet have reliable access.

And that financial services and products for farmers, including insurance, are generally inadequate.

“As a result, Africa’s food producers do not earn the level of income that they deserve, and they must cope with high levels of economic risk and uncertainty,” Kagame added.

According to the Executive Director of the UN World Food Programme, David Beasley, 41 million people are on the brink of famine today.

“Planet earth, shame on us that we let a single person go to bed hungry,” said.

“We have the expertise to end hunger, but we urgently need the money. This is a global call to action – all hands on deck,” he added.

Transformation is a necessity, according to Presidemt Kagame.

This is why the African Union Development Agency, NEPAD, has worked to facilitate an African Common Position in advance of the Food Systems Summit, in line with the African Union’s Agenda 2063 and the SDGs.

Kagame offered two proposition.

Africa will pursue solutions in the following priority tracks:

One, adopt nutritious food policies, establish food reserves, and expand school feeding programs.

Two, support local markets and food supply chains, invest in agro-processing for healthy foods, and expand trade in food products within Africa.

The UN Secretary-General’s special envoy for the UN’ Food Systems Summit, Agnes M. Kaliba,  told participants that the summit is much very powerful than she thought.

“The energy,  and hopes in each room today were palpable!. We need to leverage the incredible power of food to deliver a step change in the SDGs- this is a one in a generation opportunity,” she said.

Myrna Cunningham, speaking for Indiginous People, said that, “Our current Food Systems is based on extreme irresponsibility; We need a food system that is based on rights including Economic empowerement and rights and rights to land.”

Continue Reading

Business

Airtel Rwanda MD Steps Down

Published

on

It is learnt through reliable sources that Amit Chawla has decided to step down after completing a three-year term as Managing Director for Airtel Rwanda.

Normally, he would have had his contract extended or rotated to another operation in the company’s footprints, but a source told Taarifa that he is leaving the industry to do other businesses.

A new executive will be announced soon, it is said.

Amit, who took over the newly merged entity on August 31, 2018, during which time he oversaw the achievements of several milestones.

Chief among his accomplishments include the consolidation of the brand Airtel after the takeover of Tigo, its people, products and services as well as modernization of the country’s network, a project that saw the expansion of the Airtel Rwanda Network and saw the consolidation of Airtel’s reputation as the internet provider of choice for Mobile Internet in Rwanda.

During his time with the organization as MD, Airtel Rwanda oversaw great changes. Under his leadership, programs grew and services became more easily available to all customers.

Chawla led the company’s pandemic response that saw Airtel Rwanda direct its CSR budget towards governments efforts to tackle the initial response to the Global pandemic.

Under his leadership, Airtel has gained a reputation for launching ground breaking and bold campaigns such as the recent Va Kugiti Campaign that generated a lot of buzz in the Rwandan market.

Chawla, also oversaw the successful roll out of the Airtel Money Branch (AMB) concept, with 71 shops opened in Kigali alone.

The AMB’s concept has completely revolutionized the proximity of a telecom operator to her network of Agents and Freelancers, enabling them to access up to Rwf5 million within walking distance.

Chawla was unavailable for comment.

 

Continue Reading

Business

First Chinese Electric Car To Reach Europe Disrupts Markets

Published

on

Chinese automaker Aiways has resorted to livestreaming its all-electric cars to potential clients across the globe.

“The design is very simple and uncluttered,” one of the presenters said as she detailed the U5’s design and capabilities. “The car is modern, and even the mode of distribution is modern.”

“Modern” distribution here means replicating the “live commerce” experience of Aiways’ home country — using livestreaming events to drum up interest and sales online. The company ships its cars through local partners to customers in Europe from its factory in the eastern Chinese province of Jiangxi.

That arrangement helps Aiways keep prices down. The U5 is priced from around 39,000 euros ($46,000), 10% to 15% cheaper than its rivals, according to the company.

Alexander Klose, the Aiways executive vice president in charge of overseas operations says, “We have some challenges, but overall, I would say it has been fairly positive for us, and we have seen a fairly positive recognition.”

Aiways is not alone: A growing number of Chinese EV makers are setting their sights on overseas markets — and they intend to compete on quality as much as price.

BYD, the Chinese automaker backed by U.S. investment guru Warren Buffett, is betting on Norway. It shipped its first 100 European-specification SUVs to dealers there this June, and it plans to deliver 1,500 by the end of the year.

Like Aiways, BYD is keen to take advantage of overseas consumers’ improving perception of Chinese products.

“We are not going to make the same mistakes as other Chinese brands did more than 10 years ago in the European theater. They tried to launch vehicles in a very cheap and rushed way, without being fully prepared,” a BYD spokesperson told Nikkei Asia.

“Most people haven’t heard of BYD until now, so it is more important to do things right than [to] start talking about [sales volume].”

Continue Reading
Advertisement

Canal+ Advert

Canal+ Advert
Advertisement
Advertisement
Advertisement

Trending