By Akinwumi Adesina, President of the&nbsp;<a rel="noreferrer noopener" href="https://www.afdb.org/en" target="_blank">African Development Bank</a>



These are very difficult days, as the world faces one of its worst challenges ever: the novel coronavirus pandemic. And it seems almost no nation is spared. As infection rates rise, so does panic across financial markets, as economies drastically slow down, and supply chains are severely disrupted.&nbsp;



Extraordinary times call for extraordinary measures. As such, it can no longer be business as usual.&nbsp;



FOR MORE ON COVID-19 VISIT:&nbsp;<a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>



Each day, the situation evolves and requires constant reviews of precautionary measures and strategies. In the midst of all this, we must all worry about the ability of every nation to respond to this crisis. And we must ensure that developing nations are prepared to navigate these uncharted waters fully.&nbsp;



That&#8217;s why I support the UN Secretary-General Antonio Guterres&#8217; urgent call for special resources for the world&#8217;s developing countries.&nbsp;



In the face of this pandemic, we must put lives above resources and health above debt. Why? Because developing economies are the most vulnerable at this time. Our remedies must go beyond simply lending more. We must go the extra mile and provide countries with much-needed and urgent financial relief &#8211; and that includes developing countries under sanctions.&nbsp;



For decades, sanctions have decimated investments in public health care systems in quite a number of countries<a href="#_ftn1">[1]</a>.&nbsp;Today, they are unable to face up to a clear and present danger that now threatens our collective existence<a href="#_ftn2">[2]</a>.



Only those that are alive can pay back debts.&nbsp;&nbsp;



Sanctions work against economies but not against the virus. If countries that are under sanctions are unable to respond and provide critical care for their citizens or protect them, then the virus will soon &#8220;sanction&#8221; the world.



In my Yoruba language, there is a saying, &#8220;be careful when you throw stones in the open market. It may hit a member of your family.&#8221;&nbsp;&nbsp;



That&#8217;s why I also strongly support the call by the UN Secretary-General that debts of low-income countries be suspended and in these fast-moving and uncertain times.&nbsp;



But I call for even bolder actions, and there are several reasons for doing so.&nbsp;



First, the economies of developing countries, despite years of great progress, remain extremely fragile and ill-equipped to deal with this pandemic. They are more likely to be buried with the heavy fiscal pressure they now face with the coronavirus.&nbsp;



Second, many of the countries in Africa depend on commodities for export earnings. The collapse of oil prices has thrown African economies into distress. They simply are not able to meet budgets as planned under pre-coronavirus oil price benchmarks<a href="#_ftn3">[3]</a>.



The impact has been immediate in the oil and gas sector, particularly affecting eight countries -Algeria, Angola, Chad, Egypt, Equatorial Guinea, Gabon, Nigeria, and the Republic of Congo- that between them generate nearly half of Africa&#8217;s GDP<a href="#_ftn4">[4]</a>.&nbsp;



Those exporting other commodities besides oil, such as agricultural produce or minerals and metals, are facing drastic cuts in demand<a href="#_ftn5">[5]</a>. In the current environment, there is an acute shortage of buyers who, for understandable reasons, have re-allocated resources to addressing the COVID-19 pandemic. African countries that depend on tourism receipts as a key source of revenue are also in a straight-jacket.&nbsp;



Third, while rich countries have resources to spare, evidenced by trillions of dollars in fiscal stimulus, developing countries are hampered with bare-bones resources.&nbsp;



The fact is, if we do not collectively defeat the coronavirus in Africa, we will not defeat it anywhere else in the world. This is an existential challenge that requires all hands to be on deck. Today, more than ever, we must be our brothers and sisters&#8217; keepers.&nbsp;&nbsp;



Around the world, countries at more advanced stages in the outbreak are announcing liquidity relief, debt restructuring, forbearance on loan repayments, relaxation of standard regulations and initiatives. In the United States, packages of more than $2 trillion have already been announced, in addition to a reduction in Federal Reserve lending rates and liquidity support to keep markets operating. In Europe, the larger economies have announced stimulus measures in excess of 1 trillion Euros. Additionally, even larger packages are expected.&nbsp;



As developed countries put in place programs to compensate workers for lost wages for staying at home for social distancing, another problem has emerged &#8212; fiscal distancing.



Think for a moment what this means for Africa.&nbsp;



The African Development Bank estimates that COVID-19 could cost Africa a GDP loss between&nbsp;$22.1 billion (see attached Bank report), in the base-case scenario, and $88.3 billion in the worst-case scenario. This is equivalent to a projected GDP growth contraction of between 0.7 and 2.8 percentage points in 2020. It is even likely that Africa might fall into recession this year if the current situation persists.



The Covid-19 shock will further squeeze fiscal space in the continent as deficits are estimated to widen by 3.5 to 4.9 percentage points, increasing Africa&#8217;s financing gap by an additional $110 to $154 billion in 2020.&nbsp;



Our estimates indicate that Africa&#8217;s total public debt could increase, under the base case scenario, from $1.86 trillion at the end of 2019 to over $2 trillion in 2020, compared to $1.9 trillion projected in a no-pandemic scenario. These figures could reach $2.1 trillion in 2020 under the worst-case scenario.



This, therefore, is a time for bold actions. We should temporarily defer the debt owed to Multilateral Development Banks and International Financial Institutions. This can be done by re-profiling loans to create fiscal space for countries to deal with this crisis.&nbsp;&nbsp;



That means that loan principals, due to International Financial Institutions in 2020, could be deferred. I am calling for temporary forbearance, not forgiveness. What&#8217;s good for bilateral and commercial debt must be good for multilateral debt.



That way, we will avoid moral hazards, and rating agencies will be less inclined to penalize any institution on the potential risk to their Preferred Creditor Status.&nbsp; The focus of the world should now be on helping everyone, as a risk to one is a risk to all. There is no coronavirus for developed countries and a coronavirus for developing and debt stressed countries. We are all in this together.&nbsp;&nbsp;



Multilateral and bilateral financial institutions must work together with commercial creditors in Africa, especially to defer loan payments and give Africa the fiscal space it needs. We stand ready to support Africa in the short term and for the long haul. We are ready to deploy up to $50 billion over five years in projects to help with adjustment costs that Africa will face as it deals with the knock-on effects of COVID-19, long after the current storm subsides.&nbsp;



But more support will be needed. Let&#8217;s lift all sanctions, for now. Even in wartime, ceasefires are called for humanitarian reasons. In such situations, there is a time to pause for relief materials to reach affected populations. The novel coronavirus is a war against all of us. All lives matter. For this reason, we must avoid fiscal distancing at this time. A stitch in time will save nine.&nbsp;&nbsp;



Social distancing is imperative now. Fiscal distancing is not.&nbsp;&nbsp;&nbsp;







<hr class="wp-block-separator"/>



<a href="#_ftnref1">[1]</a>&nbsp;(<a href="https://www.odi.org/publications/384-impact-economic-sanctions-health-well-being" target="_blank" rel="noreferrer noopener">https://www.odi.org/publications/384-impact-economic-sanctions-health-well-being</a>, page 15)



<a href="#_ftnref2">[2]</a> (<a href="https://www.ghsindex.org/" target="_blank" rel="noreferrer noopener">https://www.ghsindex.org/</a>)



<a href="#_ftnref3">[3]</a> AEO 2020&nbsp;<a href="https://www.afdb.org/en/knowledge/publications/african-economic-outlook" target="_blank" rel="noreferrer noopener">https://www.afdb.org/en/knowledge/publications/african-economic-outlook</a>)



<a href="#_ftnref4">[4]</a> (AEO 2020&nbsp;<a href="https://www.afdb.org/en/knowledge/publications/african-economic-outlook" target="_blank" rel="noreferrer noopener">https://www.afdb.org/en/knowledge/publications/african-economic-outlook</a>)



<a href="#_ftnref5">[5]</a> <a href="https://www.opec.org/opec_web/en/press_room/5870.htm" target="_blank" rel="noreferrer noopener">https://www.opec.org/opec_web/en/press_room/5870.htm</a>&nbsp;&#8211; <a href="https://edition.cnn.com/2020/03/08/investing/oil-prices-crash-opec-russia-saudi-arabia/index.html">https://edition.cnn.com/2020/03/08/investing/oil-prices-crash-opec-russia-saudi-arabia/index.html</a>

adesina

Op-Ed: Why the COVID-19 pandemic is no time for fiscal distancing

By Victor Oladokun April 3, 2020



Two days ago, I received an urgent plea from Massimo, a good friend and a highly respected Italian journalist based in Rome. His message was simple, urgent and straight to the point.



 “Please Victor, pay attention” he urged. “This virus is not ‘just a flu’ as some still insist it is. Keep your distance. Wash your hands regularly. Don’t touch your face, eyes and mouth. Avoid crowded places where you cannot maintain the required social distance … pay attention my friend!”



Italy has given the rest of the world a tragic glimpse of what a lockdown needs to look, especially for countries that blink and fail to take action fast. Italy’s experience is an urgent wake-up call about the importance of swift and decisive action.



Massimo knows first-hand what’s at stake. A few hours earlier, he had lost a professional colleague. His country, which has a social culture very similar to Africa’s, now has more than 13,000 deaths from COVID-19. It is the highest number of fatalities anywhere in the world. And the body count is still rising.



Africa has had some lead time to learn important lessons and proactively engage&nbsp; the World Health Organization, the Centers for Disease Control and Prevention, and other multilateral institutions, to hell put containment and preventative measures in place.



While others have wasted precious early moments, some countries and cities have been exemplars of what it takes to counter the spread of COVID-19. Rwanda for example, was the first country to take swift containment actions by placing portable sinks with running water in public spaces in its capital city and backing it up with a public awareness campaign. The Governor of Lagos State, Nigeria’s commercial hub, was also quick to convert a local stadium into an isolation and recovery area. Last week, Nigeria’s President Muhamadu Buhari placed the Federal Capital Territory of Abuja, Lagos and two neighbouring States, under lockdown for two weeks. Ultimately, Nigeria with a population of 180 million, will have to lock down for an even longer period of time. 



Several other countries are following suit. But many others are woefully lagging behind. There is still an unwillingness to acknowledge that not taking decisive and painful short-term action, will have devastating long-term consequences. 



Exposing systemic weaknesses



In spite of Africa’s best efforts, more must be done. The outlook for the continent is grim unless swift proactive actions are taken. For now, the pandemic is exposing deep cracks and systemic weaknesses across the board including a general lack of emergency preparedness, weak governance, and political, economic, social, cultural and health threats.



Millions of Africans live on less than two dollars a day. The implication is simple. A lack of access to money, food, water and electricity, means extended lockdowns will not be easy to implement. High levels of poverty and other communicable diseases were already impacting health and wellbeing long before the arrival of the coronavirus. A shortage of well-equipped and well-funded healthcare facilities is just the tip of the iceberg. Everything from doctors, clinics, hospitals, beds, medical supplies and intensive care units are in chronic short supply.



However, the Ebola outbreak in Sierra Leone and Liberia and collaborative action by African leaders and global partners, shows that where there is a will, there is always a way.



COVID-19 could not have arrived at a worse time for Africa. A crash in global commodity prices and a glut in the oil and gas markets has seen revenues drop precipitously. Further threats from nature, including the impact of devastating weather patterns such as Cyclone Idai and Henry and a recent plague of locusts, have to be managed alongside the pandemic.



Economically, the private sector and financial markets have taken a beating. The sudden reversal of fortunes is in stark contrast to a more positive projection in the African Development Bank’s 2020 African Economic Outlook when it was released in January 2020. The bandwidth of fiscal headroom is very thin. Commodity-sensitive economies are reeling under the effects of sudden price drops and the altered market reality of reduced global demand. Crude oil prices which now hover at $22 a barrel, have fallen more than 68% since January 2020. Non-oil commodity prices in natural gas and metals have also taken a nosedive.



Acting Fast and Thinking Authentically



Extended lockdowns carry inherent potential threats of their own and these must be managed. Along with underlying systemic weaknesses, the pandemic could unleash social unrest, the explosions of which will be as unprecedented as the virus itself.



We must therefore act fast and think authentically. Africa has its own particularities and to a certain extent, local contexts will require locally suited solutions, while drawing from global lessons. Recent videos of local communities forcefully resisting law enforcement and sanitation teams are already emerging. Such scenes are inevitable, for reasons of poverty, a lack of knowledge, and a chronic mistrust of authorities.



Concerns about informal settlements, some of the largest in the world, are a cause for worry, as is terrorism, economic and social exploitation and fragility.



Psychological impacts of a pandemic



Along with business and financial challenges, Africa’s leaders must prepare to address the social, physical and mental health fallouts from unavoidable lockdowns, social disruptions, the loss of basic human dignity, threats to civil life, and worse, the loss of life itself.



Several governments have grasped this and are stepping up, although time is not on their side. In many cases they have imposed limited two-week lockdowns in the first instance. The goal is not to alarm citizens. But this is unlikely to be sufficient as the virus apparently has its own agenda, pattern and timing! Realistically, beating COVID-19, is likely to require 6-10 weeks of total nationwide lockdowns, at a minimum.



 To not do so, is to sell an illusion. To not do so, is to delay the inevitable. To not do so, is to raise false hopes. To not do so, is to be complicit and irresponsible in the spread of this most virulent and devastating virus. Worse, it will be suicidal, not just for countries but for the continent.



Dealing with harsh realities



We must therefore deal with hard reality, scientific facts, current simulations and real global lessons. Cosmetic approaches will not work when surgical precision is required. We must marshal every resource in order to save lives … every life and especially those already living on the margins of society. The underlying ethos of Ubuntu which says – “I am, because you are,” must be unleashed with full force to save lives. We have to be brutally honest, in order to be kind to ourselves! The bottom line is that this is not a time for test runs.



Urgent action is needed now, not tomorrow. This includes –



<ol type="1"><li>Making tough and seemingly unpopular leadership decisions that will ultimately save lives and society.</li><li>Using every communication platform possible to increase public awareness and promote containment and preventative measures.</li><li>Stepping up testing and reducing the wait time between tests and test results.</li><li>Mobilising the support of public influencers including traditional, religious, civil society, entertainment celebrities, women and youth leaders.</li><li>Introducing measures to secure food and medical supply channels, fixing basic food prices, and curbing hoarding and panic-buying.</li><li>Re-purposing public spaces including conference centres, stadiums and open spaces for use as isolation and recovery centres.</li><li>Leveraging every available advantage, by focusing on low hanging fruits. For example, regional economic communities could re-organise manufacturing and target the supply of critically needed medicines, equipment and medical supplies, as well as food packaging and processing.</li><li>Delaying debt obligations and buying time with global creditors through forbearance or payment postponements. Prior to the COVID-19 pandemic, an estimated one third of African countries were at risk of debt distress. Post-crisis, the numbers will be significantly higher.</li></ol>



Pandemics and other global crises do not respect boundaries, titles or positions, creed, faith, gender, culture or hierarchy.



Abiy Ahmed, the Ethiopian Prime Minister and 2019 Nobel Peace Prize Laureate rightly tells us: “COVID-19 teaches us that we are all global citizens connected by a single virus that recognises none of our natural or man-made boundaries.” We are in this together, regardless of where we call home. “Umuntu ngumuntu ngabantu.” I am because you are.



Dr. Victor Oladokun is the former Director of Communication and External Relations, African Development Bank Group.



For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a>

AFRICA LOCKS DOWN: No Time For Lockdowns

Op-Ed: Africa locks down: No time for test runs

By Dr Victor Oladokun, outgoing Director of Communication &amp; External Relations at the African Development Bank Group



Why
Africa Urgently Needs an Ubuntu Plan



Africa urgently needs a globally
coordinated Ubuntu Plan in response to COVID-19, a fiscal stimulus that
recognises our shared and connected humanity, as we find ourselves in the midst
of an unprecedented crisis.



The
world&#8217;s largest cities are eerily silent. One virus has disrupted the whole
world in a manner never seen before in history.



COVID-19,
a term that did not exist in our vocabulary a couple of months ago, has brought
virtually everything to a grinding halt. It&#8217;s a surreal almost cinematic scene.
Except that we are all living through it.&nbsp;




With governments balancing economies and
the welfare of their citizens, entire industries and institutional systems find
themselves fighting for survival in the midst of mandatory lockdowns. Food
supply chains, transportation networks, educational systems, governance and
judicial systems are either strained or barely functioning with medical
services being the worst hit.



Unlike
any other pandemic, COVID-19 will alter the way we live, work, and
socialise.&nbsp; The financial costs and the
economic devastation are already of epic proportions. This is why Africa in
particular urgently needs an Ubuntu Plan. A globally coordinated fiscal
stimulus plan that recognises our shared and connected humanity. 



The
case for an Ubuntu Plan



This
past week, America passed a 2 trillion Dollar stimulus package that will keep
markets operational, support Americans out of work, and help reduce Federal
Reserve lending rates. It is the largest bailout in the history of the United
States. European economies likewise have announced stimulus measures in excess
of 1 trillion Euros. Chinese factories are ramping up again, backed by a $344
billion stimulus package.



In
contrast, Africa&#8217;s economies are already buckling. Global demand for oil and
gas and commodity products &#8211; the mainstays of Africa&#8217;s leading economies &#8211; has
stalled. Revenues which were already overextended have dried up and small,
medium, and large enterprises are at risk of total collapse.



Last
Thursday, the United Nations Conference on Trade and Development (UNCTAD)
estimated that the pandemic could reduce the growth of the region&#8217;s gross
domestic product (GDP) from 3.2% to 1.8% in 2020. On 27th March, The Secretary
General of the UN Antonio Guterres said: “Africa is a continent with very
little capacity to respond and I am extremely worried that in those situations,
we might have millions of cases with millions of people dying”.



Lockdowns
are not equal



Even
though the United States, Europe and many parts of Asia are better suited
economically and infrastructurally to a lockdown, they are struggling to cope
with the burden of this sudden pandemic. A situation that will likely will be
worsened by the duration and unpredictability of the pandemic.



If
these societies are struggling, the impact on Africa is best imagined.



Prior
to the crisis, 41% of sub-Saharan Africa’s population lived on less than $1.90
a day which is very little to survive on. Seven out of ten persons (70%) in
Africa are in vulnerable and precarious forms of informal employment eking
their living on a daily basis. Lockdown, homeworking and teleconferencing is
therefore not an option. Family support systems from blue and white-collar
workers and the diaspora, are themselves under threat. Job losses will&nbsp; strain these critical informal support
systems to breaking points.



 In Africa, formal social safety nets rarely exist. Therefore, stockpiling food items for extended periods of isolation is out of consideration. Linked with this, Africa requires vast food supplies to meet the needs of the continent&#8217;s poorest who can barely afford a decent mmeal. 



Recent
cyclones, Kenneth and Idai, and a&nbsp;
plague of locusts, have already put considerable pressure on&nbsp; immediate food supplies for the continent.



Which
is why an Ubuntu Plan is now critical in order to cushion the harsh
social and economic impacts of the COVID-19 pandemic in Africa. Such a plan
would include a fiscal stimulus package, the development of critical
infrastructure and support for the continent&#8217;s most vulnerable populations. 



The
fact is that in the 21st century, clean water supplies and access to
electricity are the stuff of dreams for millions of Africans. Globally, almost
800 million people are without access to clean water. Of these, 40% live in
sub-Saharan Africa.&nbsp; The simple act of
hand washing which the pandemic requires for prevention is still not possible
for millions. Linked with this, less than 58% of Africa&#8217;s population has access
to modern healthcare facilities. 



A
race against time



Africa
and its partners have already been striving hard to tackle the challenge of
eradicating poverty with measures such as the UN’s Sustainable Development
Goals, and the African Development Bank&#8217;s High5 strategy. 



The
COVID-19 pandemic however shines the spotlight on Africa’s&nbsp; poor healthcare delivery systems and
facilities and its vast challenges. Africa has one of the highest population
densities in the world. For people living in tens of thousands of informal
settlements, the idea of social distancing is inconceivable. Millions of
vulnerable low-income people live in cramped communal houses and rooms and
in&nbsp; areas that lack basic amenities,
especially water and sanitation. 



In
the short term, to effectively combat COVID-19, we urgently need self-testing
kits, personal protective equipment (PPEs), makeshift living spaces and
hospitals, recovery units and inexpensive easy-to-operate ventilators. 



The
World Health Organisation (WHO) has already issued a ten-point strategy that
calls for the creation of corridors on the continent to facilitate emergency
deployments and material shipments.&nbsp; The
plan also calls on governments and the private sector to help increase
supplies, medical equipment and care, and to strengthen surveillance and public
awareness, in order to prevent&nbsp;
continent-wide community transmission.



In
the short window available, global cooperation is imperative.



&nbsp;The African Union&#8217;s Vision Agenda 2063 and
action plan states among other things, that “We are part of the global drive
through the United Nations and other multilateral organisations to find
multi-lateral approaches to humanity’s most pressing concerns including human
security and peace, the eradication of poverty, hunger and disease &#8230;”&nbsp; 



Rethinking
the future



In
the mid to long term, we must urgently rethink social life, urban and rural
planning and our budgetary priorities, if life is to be preserved. We must&nbsp; decongest informal settlements rapidly and in
their place&nbsp; develop&nbsp; affordable housing that is suitable for
isolation&nbsp; and quarantine, in the event
of future pandemics.



There
is no better time for a globally coordinated Ubuntu Plan. To stop the
global spread of COVID-19 and its global devastation, it must be stopped in
Africa. The world must pay attention and lend a helping hand by strengthening
global cooperation, now more than ever before.&nbsp;




Ubuntu
&#8211; The preservation of human dignity, health, lives and wellbeing, demands
nothing less.

Victor

Op-Ed: Victor Oladokun on why Africa urgently needs an Ubuntu Plan

African Development Bank President bids farewell to Victor Oladokun, Director of Communication



Abidjan, Cote d’Ivoire, 30 March 2020 &#8211;
Outgoing Director of Communication &amp; External Relations, Dr. Victor
Oladokun’s received commendation from President of the African Development
Bank, Dr Akinwumi Adesina, for his exceptional leadership.



Dr. Oladokun, who joined the Bank in 2017, is
a veteran communications expert, and leaves the Bank on reaching the mandatory
retirement age.



“Victor joined the Bank two and half years
ago, and has provided exceptional leadership on communication. He has led an
outstanding team. &nbsp;We have built a structure that is able to support us,
to get our news out globally and at the regional level and to make sure that
our member countries and shareholders are fully aware of what we are doing. We
never had that.”



The President praised the communication team
for their tremendous work in training local and regional African journalists to
help understand the Bank’s work and to report better on getting the message of
the Bank across African countries.



“I must say that the quality of the support
that the communication team has provided to the Bank for our Annual Meetings
has been simply remarkable. &nbsp;We have now reached a bar,” Adesina said,
adding that the Board of Directors commended Oladokun at their last meeting.



“I would like for all of us to thank Victor
Oladokun for being an outstanding professional, for being such a dedicated
staff, for being somebody who mentored and supported all of his staff. Victor,
as you leave the Bank, please go well. Our thoughts and blessings are with
you.”



Responding, Victor Oladokun said it was
&#8220;a singular honor&#8221; of his professional life to have worked at the
Bank. 



Addressing members of the communication team,
he said, “you are a stellar and innovative team that has always gone the extra
mile. Well done. &nbsp;I encourage you to continuing reaching for new heights
in the months and years ahead.”



Dr. Oladokun acknowledged President Adesina&#8217;s
visionary leadership and his role in helping re-shape the narrative of a new
and resurgent Africa.



To staff, he concluded, &#8220;As I leave the
bank, I take with me our shared memories, challenges, and successes. Thanks for
allowing me to be a part of this journey and for the excellent support you have
given me as your Director of Communication. I will forever be grateful.&#8221; 



Contact: Emeka Anuforo, Communication and
External Relations Department, African Development Bank, email: <a href="mailto:e.anuforo@afdb.org">e.anuforo@afdb.org</a>

AfDB President bids farewell to Victor Oladokun, Director of Communication

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AU Summit 2020: Africa’s youth are our greatest asset & we have to invest in them – Adesina

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AU Summit 2020: “By enhancing efficiency

AU Summit 2020: “By enhancing efficiency, Africa can reach universal primary education” – AfDB’s Hanan Morsy

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Is Africa doing enough to achieve inclusive growth?

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How the border closure

How the border closure, Coronavirus outbreak impacts Nigeria’s economy

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AfDB inaugurates Shango power substation in Rwanda

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The theme of this year&#8217;s African Economic Conference focuses on jobs, entrepreneurship and capacity development for African youths. This was jointly organised by African Development Bank (AfDB), United Nations Economic Commission for Africa (UNECA) and United Nations Development Programme (UNDP) in Sharm el-Sheikh, Egypt. Hanan Morsy, Director for Macroeconomic Forecasting and Research at AfDB joins CNBC Africa to discuss the ways to build capacity development for African youths.

African Economic Conference: Hanan Morsy on how to build capacity development for African youths

LAGOS, Nov 30 (Reuters) &#8211; The African Development Bank (AfDB) has approved a $210 million loan to help Nigeria upgrade its dilapidated electricity transmission and distribution network.



The loan to Transmission Company of Nigeria (TCN) will support construction of 330KV double circuit quad transmission lines and sub-stations across the country, the bank said in a statement late on Friday.



The AfDB funded project will run across seven states and will improve the capacity of power grid where it is most constrained.



Nigeria privatised most of its power sector in 2013 but retained control of its monopoly grid, operated by TCN. Most of the country&#8217;s power generation is from thermal power stations that use gas.



The creaking power grid has often been blamed for hobbling growth in west Africa&#8217;s largest economy.



AfDB&#8217;s acting vice president for Power &amp; Energy, Wale Shonibare said implementing the project would increase evacuation from the south towards the north, where power supply is limited.



The project would also improve power export and regional power system integration to the West African Power pool, especially through Niger and Benin interconnections, he said.



The country&#8217;s power output stands at around 4,000 MW, the Nigeria Electricity System Operator has said. Total power generation capacity is about 7,000 MW but the transmission network cannot cope if plants operate at full tilt.



Nigeria&#8217;s privatized power sector typically does not use meters to provide invoices, bill collections are low and energy tariffs have remained fixed for three years.



The effect, say industry experts, is that electricity distribution companies recover so little revenue from customers that they pay less than a third of what they owe to generating companies &#8211; leaving the sector with ballooning debts. (Reporting by Alexis Akwagyiram Writing by Chijioke Ohuocha Editing by Christina Fincher)

AfDB approves $210 million loan for this West African nation’s power transmission project

Kigali, Rwanda, 25 November 2019 – African Development Bank President Akinwumi Adesina has called for greater access to finance for African women when he addressed the inaugural session of the Global Gender Summit.



&#8220;When women borrow, they
always repay. And 90% of them repay their loans without the least problem. So,
where is the risk? The problem is prejudice and the banks&#8217; lack of flexibility.
We must leave this behind to allow women access to financing,&#8221; President
Adesina urged.



The session headed &#8220;Unlocking women&#8217;s access
to finance in Africa&#8221; had a panel of high-level speakers,
including Salimata Diop Dieng, the Senegalese Minister of Women, Family and
Gender; Andrew Temu, President of the African Guarantee Fund; Kennedy Uzoka,
President and CEO of United Bank of Africa (UBA); Joséphine Anan-Ankomah, CEO
of Ecobank Group; and Christine Ngiriye, an entrepreneur.



Salimata Diop Deng said,
&#8220;It is important that financial institutions support initiatives from
women. They have the market gardens and produce to process. They create
start-ups in innovative areas. But they lack resources and collateral, and the
procedures for accessing loans are complicated. These women have relatively
moderate finance needs, just enough to create projects and jobs. They need
support from the private sector and the banks to help them weave their way into
the economy.&#8221;



Andrew Temu advocated
&#8220;holding discussions with countries to improve the business environment.
What is especially needed is legislation that reassures the banks. There are a
number of actors, banks, investors, entrepreneurs and clients operating within
the economic market. Everyone needs to be in communication to address the
risks.&#8221;



For Anan-Ankomah, ECOBANK is
already making big strides to gender parity. The pan-African bank has signed up
to the African Union gender parity principle of 50/50. “Currently we are at 46%
and out of that, 30% of those women are in senior management positions,” she
said.



Ngiriye said that she had seen
little change in nearly 30 years: &#8220;The problem that comes up again and
again is that of collateral.”



According to Adesina the
financial sector had a responsibility to the women of Africa. And he made an
announcement: &#8220;From now on, we shall be grading every African financial
institution for how well it helps women. Every financial ecosystem must evolve
to support women. And we are going to put pressure on the guarantee
banks.&#8221;



The African Development Bank and the government of Rwanda are hosting the Global Gender Summit from 25 to 27 November in Kigali. The Summit is being organised by the Multilateral Development Banks’ (MDBs) Working Group on gender for the first time in Africa.



Content provided by African Development Bank

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Global Gender Summit 2019: “Put prejudice behind us and give women access to finance” says Akinwumi Adesina

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The Affirmative Finance Action for Women in Africa (AFAWA) has set its target on bridging the $42 billion finance gap women face on the continent, CNBC Africa&#8217;s Arnold Kwizera spoke to Director of Gender, Women and Civil Society at the African Development Bank, Vanessa Moungar for more.

Global Gender Summit: AFAWA targets $42bn to bridge finance gap for African women

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Statistics indicate that women make up over 40 per cent of African business owners yet a trivial 2 per cent are able to access finance according to figures from Mckinsey. Director of Macroeconomics, Forecasting and Research at African Development Bank (AfDB), Hanan Morsy joins CNBC Africa to discuss women economic participation and empowerment.

Global Gender Summit: AfDB’s Hanan Morsy on how to improve economic participation for women in Africa

By Vanessa Moungar, Director of Gender, Women and Civil Society 



If you are a gender champion,
then you are familiar with the discussions around the glass cliff.&nbsp; The story of women eager to defy the odds, accepting leadership roles at times of crisis, when
the chance of failure is the highest. The truth is that many bold glass
cliff climbers have succeeded without falling off. 



Two of such champions come to my
mind: the former Xerox CEO Anne
Mulcah and Tokunboh Ishmael, co-founder of
Aliethiea IDF.



Mulcah, Ishmael and likeminded
agents of change have already shattered the status quo. So, when the first
Global Gender Summit held in Africa kicks off on November 25th in
Kigali, Rwanda, the international community will hurtle towards heeding the
calls to dismantle barriers to women’s full participation and advancement
economic development on the continent. 



Women make up over 40%
of African business owners yet only 2% are able to access finance according to
a Mckinsey report. One in four women globally who start in a business come from
Africa (Global Entrepreneurship Monitor).



The Summit, organised by the
Multilateral Development Banks’ (MDBs) Working Group on gender, will be held in
Africa for the first time ever, from the 25th to 27th
November 2019 in Kigali, Rwanda. This year’s summit is hosted by the African
Development Bank in partnership with the Government of Rwanda and supported by
other multilateral development banks as key partners. 



Under the theme “Unpacking
constraints to gender equality,” the Global Gender Summit will share best
practices and seek innovative solutions that can be harnessed to empower women
and girls in Africa and around the world.



We are excited to be bringing the
world to Rwanda, a country that has set a strong example when it comes to
promoting women’s rights and representation. 



Rwanda&nbsp;was the
first country in the world with a&nbsp;female&nbsp;majority
in&nbsp;parliament, currently at
67.5 %, following October parliamentary polls. Out of a total parliamentary
membership of 80, women occupy 54 seats. This feat puts the nation ahead of
even the most developed nations. 



From the massive financing gap
for women-led enterprises, inadequate data, laws and cultural norms that
negatively affect women, to a lack of representation in business and politics,
the challenges are great.



But the opportunities are there
too.



Discussions will focus on the
main barriers to achieving gender equality and women’s empowerment, namely:
scaling up innovative financing, fostering an enabling environment and ensuring
women’s participation and voices. Sectors to be addressed will include climate
change, the digital revolution, private sector and human capital and productive
employment.



In Africa, women-led enterprises
face a whopping $42 billion financing gap. One of the Bank’s flagship gender-focused projects is its Affirmative
Finance Action for Women in Africa (AFAWA), which seeks to accelerate growth
and employment creation across African economies, by closing the financing gap
for women. 



Over the next 5 years, AFAWA is
expected to unlock $3 billion in private sector financing to empower female
entrepreneurs through capacity-building development, access to finance as well
as policy, legal and regulatory reforms to support enterprises led by women.



Our Fashionomics Africa
initiative supports the African textiles and fashion industries by building the
capacities of small and medium-sized enterprises in the textile and clothing
sector, especially those run by women and youth. By using technology as a driver for the development of skills and
capacity in Africa’s creative industries, the African Development Bank aims to
stimulate job creation on the continent. At the summit, we will unveil an
innovative online marketplace for designers across the continent.



That’s just some of the exciting
news. We will use the opportunity of the Global Gender Summit to launch a
number of initiatives to dramatically transform the landscape of access to finance for women
across the continent.



These include the
Africa Gender Index- a joint African Development Bank and the United Nations
Economic Commission for Africa (UNECA) report that assesses African countries on
gender equality.



The launch of the AFAWA/AGF Risk Sharing Facility, which will de-risk lending to women through AGF’s partial, guarantees to financial institutions and its capacity development to women entrepreneurs. As well as these continent-wide initiatives, we at the African Development Bank understand that change begins at home. That is why in 2018, the Bank rolled out its gender marker system to process, monitor, and promote gender mainstreaming in all its operations, with gender specialists as part of project teams and Bank operations.



By the end of last year, 40% of
public sector Bank operations had been organised under the gender marker
system, a major shift in the Bank’s way of doing business and commitment to
gender mainstreaming. 



We continue to
support and build the individual power of girls and women across the countries
we work in and never has the time been more urgent.



We expect the Global Gender Summit, to
be a milestone event in the empowerment of women in Africa and beyond. &nbsp;See you there.



* This year’s Global Gender Summit, is hosted by the African Development Bank in partnership with the Government of Rwanda and supported by other multilateral development banks as key partners.

Op-Ed: Gender equality: It’s time for disruption, time to shatter the status quo. We can’t afford to wait!

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The African Development Bank (AfDB) says the second edition of the Africa Investment Forum recorded $40.1 billion in investor interest from its boardroom dealings. CNBC Africa’s Chris Bishop and Kenneth Igbomor spoke to Africa Investment Forum’s Head and Senior Director, Chinelo Anohu-Amazu about the interests secured.

Africa Investment Forum: Anohu-Amazu: The real work starts after the forum

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The United States International Development Finance Corporation (USIDFC) and the African Development Bank (AfDB) have signed a Memorandum of Understanding (MoU) to mobilize private capital in support of development in Africa. Adam Boehler, CEO of DFC spoke to CNBC Africa’s Kenneth Igbomor about this and more on the sidelines of the 2019 Africa Investment Forum.

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