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Partnerships to Strengthen Reform - How Do They Work? African Development Bank Group AfDB Symposium on WTO Trade Facilitation for African Countries Nairobi,

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Presentation on theme: "Partnerships to Strengthen Reform - How Do They Work? African Development Bank Group AfDB Symposium on WTO Trade Facilitation for African Countries Nairobi,"— Presentation transcript:

1 Partnerships to Strengthen Reform - How Do They Work? African Development Bank Group AfDB Symposium on WTO Trade Facilitation for African Countries Nairobi, Kenya November 13-15, November

2 Structure of Presentation How Priorities are Determined: AfDBs Approach AfDB Funding Instruments Conclusion Friday, February 14, 2014ONRI- NEPAD Regional Integration & Trade2

3 How Priorities are Determined The potential benefits of TF are substantial – Transport & NTBs account for 14% of trade costs in Africas 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 communities (RECs) and regional member countries (RMCs) in the area of TF represents a sound intervention for the Bank Therefore, provision of TA & Capacity Building to regional economic communities (RECs) and regional member countries (RMCs) in the area of TF represents a sound intervention for the Bank Transforming landlocked into LAND-LINKED countries…? Friday, February 14, 2014ONRI- NEPAD Regional Integration & Trade3

4 How Priorities are Determined Trade Facilitation Framework: Provides an approach to mainstream TF in the Banks 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 Friday, February 14, 2014ONRI- NEPAD Regional Integration & Trade4

5 How Priorities are Determined RIS: At the highest level, the Banks approach to TF assistance is anchored in the Regional Integration Strategy RISP: At the meso level the Bank has in place Regional Integration Strategy Papers CSPs: At the country level, the Bank has Country Strategy Papers Friday, February 14, 2014ONRI- NEPAD Regional Integration & Trade5

6 AFDB FUNDING INSTRUMENTS Friday, February 14, 2014ONRI- NEPAD Regional Integration & Trade6

7 Differentiated Products by Category Middle Income Countries (MICs) Low Income Countries Private Sector Friday, February 14, 2014ONRI- NEPAD Regional Integration & Trade7

8 MICs -Non-concessional loans -MICs with sovereign guarantee -Private sector operations without sovereign guarantee ADB Window Technical assistance fund for MICs Aimed at addressing critical needs of borrowers -Project/programme preparation -Economic Sector Work -Capacity Building, etc. MIC Fund Friday, February 14, 2014ONRI- NEPAD Regional Integration & Trade8

9 Low Income Countries ADF Fund (ADF-12: UA6.1 Bn, approx USD9.4 Bn) Regional Operations Envelop -20% of ADF ADF is the concessional window of the African Development Bank Group ADF takes a three year outlook: ADF 12 covers the period Focused on infrastructure, governance, fragile states and Regional Integration ADF-13 currently under negotiation Friday, February 14, 2014ONRI- NEPAD Regional Integration & Trade9

10 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 ) Friday, February 14, 2014ONRI- NEPAD Regional Integration & Trade10

11 Step 1 Ensuring Alignment & Ownership: Included in RISP Country allocations confirmed Step 2 3 indicators related to countries CPIA; portfolio performance; commitment to regional integration 2 indicators related to projects Development outcomes Quality & readiness Regional Operations Selection and Prioritization Framework - Prioritisation of RO projects follow the RO operations Selection & Prioritisation Framework, a 2 State process

12 Examples of Projects funded under the RO Envelope in 2011 Project Name Approved Region RO envelope UAm PBA + FSF contrib. UA m Total Amount UA m 2011 Mombasa-Nairobi-Addis Ababa Road Corridor Phase III YesEast Kazungula BridgeYesSouth Electrical interconnection: Boali, RCA – RDC Central Abidjan-Lagos corridor Road corridorYesWest Trans Gambia River BridgeYesWest65267 CGIAR Support to Agricultural ResearchYesAll40RPG40 EAC Payment system development projectEast15RPG15 Managing for Development ResultsYesAll9RPG9 African Virtual University, Phase 2YesEast10RPG10 Friday, February 14, 2014ONRI- NEPAD Regional Integration & Trade12

13 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 – Africas framework to implement infrastructure projects until the year 2040, estimated at US$360 billion – PIDA Priority Action Plan ( )- first set of immediate priorities - contains 51 projects and programmes – Multi-donor funded: AfDB, Nigeria Technical Cooperation Fund, Islamic Development Bank, DfID, EU/AU Friday, February 14, 2014ONRI- NEPAD Regional Integration & Trade13

14 Conclusion The potential benefits of TF to developing countries are substantial & its 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 Banks approach to TF support is key for accessing assistance for your needs Alignment with agreed strategies is critical Friday, February 14, 2014ONRI- NEPAD Regional Integration & Trade14

15 Patrick KANYIMBO NEPAD, Regional Integration & Trade Division African Development Bank 13 rue de Ghana, B.P , Tunis Belvedere Tunisia Tel: Fax: website: Friday, February 14, 2014ONRI- NEPAD Regional Integration & Trade15


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