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AfDB Trade Facilitation Agenda & State of Implementation

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Presentation on theme: "AfDB Trade Facilitation Agenda & State of Implementation"— Presentation transcript:

1 AfDB Trade Facilitation Agenda & State of Implementation
African Development Bank Group AU/EC Forum on Trade Facilitation Brussels, BELGIUM December 11-13, 2012 AfDB December 11, 2012

2 What’s the AfDB Group? Selected Fast Facts
African Development Bank (“ADB”) African Development Fund (“ADF”) Nigeria Trust Fund (“NTF”) Est, 1964 79 member countries Authorized capital: US$ 101 billion Triple A rated by all major ratings agencies 0% risk weighting under Basel AfDB Sovereign Operations: 15 middle-income countries eligible for AfDB funding Concessional financing Est, 1972 Financed by 24 donors Subscription: US$ 34 billion 38 low income countries Replenished every 3 years (ADF12 has US$9.5 billion) Financially and legally independent from AfDB Blend Countries Established in 1976 Targeted at low-income countries Maturing in 2018 US$ 242 million Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade

3 ONRI- NEPAD Regional Integration & Trade
Quick Facts Cont’d… 31 field offices; 2 regional centres Increased operations, lead continental initiatives for increased regional integration e.g. PIDA Triple A rating enables Bank to leverage scarce resources Our work on Customs and Trade Facilitation is guided by the RIS, RISPs and TF Framework The Bank pursues strategic partnerships with key stakeholders Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade

4 How the Bank Supports Trade Facilitation:
RIS Pillars and Cross Cutting Issues Pillar 1: Regional Infrastructure Formulation and review of strategic frameworks & Project Prioritisation Support to Development Corridors NEPAD-IPPF: Bring projects to “bankable stage” Investment Pillar 2: Institutional Capacity Building Rationalization of Regional Economic Communities (RECs) Strengthening of Regional and National Institutions Trade Facilitation and Capacity Building KEY FOCUS AREAS: FORMULATION AND REVIEW OF STRATEGIC FRAMEWORKS SUPPORT FOR DEVELOPMENT CORRIDORS. This will be accompanied by parallel investments in Trade Facilitation IPPF INVESTMENT: EMPHASIS ON CATALYTIC ROLE OF ADB GROUP SUPPORT TO IMPLEMENTATION OF NEPAD STAP AND CAADP PROGRAMS PROMOTION AND FACILITATION OF PRIVATE SECTOR PARTICIPATION Areas of Strategic Partnerships and Cross-cutting Issues Aid for Trade Programme for Africa Regional Financial Infrastructure 4 4

5 How the Bank Supports TF….Cont’d
Enhance Trade & Transport Facilitation (TTF): Pursue interventions that enhance the cross border free flow of trade along the transport corridors right from the ports of entry through regional infrastructure roads, railways etc., Guided by the principles of OWNERSHIP by Regional Member Countries, SELECTIVITY and DEVELOPMENT EFFECTIVENESS to only focus on TF projects and programmes with measurable and higher impact. Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade

6 TTF Takes the Lion’s Share of the Bank’s Financing Approvals
Source: AfDB Annual Report, Table 2.1. Total Approvals: UA5.72 Billion; Infrastructure:UA1.57 Bn (38.1%) of which Transport: UA1. Billion (US$ 1.54 Bn) or 24.4% of total approvals Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade

7 What Areas do we Focus On?
Behind the Border Collaborate with national institutions and RECs to address human capacity and institutional weaknesses. Support elimination of NTBs along transport & transit corridors At the Border Operational issues: support documentation and process harmonisation including STR Legal issues: Push for agreements/protocols. Weak Border Infrastructure: One Stop Border Posts After the Border Public policy issues: sudden shift in tariffs; Non Tariff Measures, i.e. support studies & workshops on Sanitary & Phytosanitary Standards, Non Tariff Barriers etc; Political & Commercial Risks: support for strengthening of RECs… mechanism Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade

8 Selected Initiatives on TTF
Programme for Infrastructure Development in Africa(PIDA): A blueprint of Africa’s infrastructure needs until the year 2040 (est. at US$360 Bn.) 51 projects have been identified as priorities under the PIDA Priority Action Plan (PAP) to be implemented between (24 PAP projects are transport related projects). PIDA also emphasizes that for these projects to be effective, regulations, processes and bottlenecks must be addressed This is where TRADE FACILITATION initiatives to tackle the “Soft” issues become imperative NEPAD-IPPF: Assist RMCs, RECs & related institutions A comprehensive portfolio of trade & transport facilitation projects is annexed in the 4 RISPS Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade

9 Selected TTF Projects (2011-2015 RISP Period)
SOUTHERN AFRICA Kazungula Bridge Project (Zambia-Botswana, focus OSBP construction & operationalisation) Nacala Road Corridor: Feasibility studies on possible construction of OSBP at Malawi/Zambia & Mwi/Moz borders EASTERN AFRICA Arusha-Namanga-Athi River Corridor – OSBP operationalisation Enhancing knowledge in modern customs practices and revision of the Customs Management Act etc. Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade

10 Selected Initiatives on TTF….Cont’d
WEST AFRICA Lomé-Ouagadougou corridor road rehabilitation and transport project Trans-Gambia Road Bridge and Cross-Border Improvement Project– Study on OSBP design CENTRAL AFRICA Doussala (Gabon)- Doumblise Road project Kribi-Campo Road Project Congo-Cameroon Road Project NORTH AFRICA RISP currently being developed Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade

11 Outcomes Tuesday, March 28, 2017
Customs Modernization and Reforms Reduction in time for border crossing Reduced costs & enhanced competitiveness Increased volumes and values of cross border trade Improved Regional integration Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade

12 Partnerships/Collaboration
We seek seek to build & cement focused partnerships with key stakeholders Partnerships based on the Bank’s comparative advantage & overall strategic focus to deliver its work programme Examples of Partners: RECs (i)Continental level institutions (ii) Multilateral donors- EU etc (iii)International Institutions –UNDP (iv) Corridor Hubs (in West and Southern Africa) Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade

13 ONRI- NEPAD Regional Integration & Trade
Partnerships…Cont’d MOU with WCO  Knowledge products and Capacity Building Design & implement Customs Modernization Action Plan(CMAP) AUC & ECA: Executing Agency for PIDA, an AUC-led programme Collaboration on “Boosting Intra-African Trade” Bank’s role: Identification of missing links in Africa’s transport, ICT & energy infrastructure Development of a prog. to fill missing links (NEPAD-IPPF has contributed to that) Collaboration through the AfDB, AUC, ECA Joint Secretariat Trade finance initiatives for Boosting Intra-African Trade Resource mobilisation for Africa under the Aid for Trade Initiative Joint capacity building Forums, e.g. recent TF Symposium for Africa Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade

14 Addressing the Challenge of Resources
There’s a recognized need to scale up investments to implement TF measures in order to reap the benefits (Matching commitment with recourses) CREATION OF AFRICA TRADE FUND (AFTRA): Strengthening capacity of national and regional African institutions to effectively support trade facilitation and market access; and Supporting increased trade competitiveness and performance among RMCs. CAD 15 million provided by Canada, in seed funding for 3-years AfDB intends to expand AfTra to $50Million by 2014, and ultimately make it the largest Fund for TF in Africa Tuesday, March 28, 2017 ONRI- NEPAD Regional “Integration & Trade

15 ONRI- NEPAD Regional Integration & Trade
AfTra Cont’d… Already generating enthusiasm among development partners that are ready to channel their resources through the Fund for utilisation in addressing Africa’s trade needs Significant optimism from African countries on potential impact of AfTra: “African countries welcomed creation of the Africa Trade Fund which will focus on trade-related capacity-building,…and urge donors to provide generous new funding for this important facility dedicated to meeting Africa’s needs” Summary of Outcome by the Host Country, Kenya: Symposium For TF for Africa, Nairobi, Nov 2012 Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade

16 What Addition Funds Could Do for TF
Supporting Customs Reforms and Modernization Supporting more projects on OSBP development (Africa has the greatest number of landlocked countries: 16) Capacity building for trade facilitation agencies Development of ICT infrastructure in TF Development of legal and regulatory tools to eliminate non-tariff barriers etc. Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade

17 Key Messages/Lessons Learnt
TF involves reforms: Therefore, requires political will to undertake reforms & implement protocols Partnerships are vital: TF requires cooperation and collaboration at various levels Knowledge products – ex ante and post construction evaluation essential (e.g. Trans-Gambia OSBP study) Need to matching ambition with resources: to improve both physical & soft infrastructure Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade Division

18 ONRI- NEPAD Regional Integration & Trade
THANK YOU Tuesday, March 28, 2017 ONRI- NEPAD Regional Integration & Trade


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