SOLUTIONS

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specifics on how governance will be improved
and what better patterns of expenditure would
be. None of the CSPs address issues such as
worker safety or environmental pollution issues
of oil and gas governance, artisanal mining
and their health impact. These are important
in several countries, including Ghana, DRC,
and Nigeria. There is also little discussion of
the governance arrangements of large-scale
foreign investment in mining in countries such
as Guinea or Cameroon.
There is scope for ADB to support broader crosssectoral
governance reforms that will facilitate
the transition to inclusive green growth. 41 A
key area includes improved environmental
and social management of investments in the
infrastructure and natural resources sectors,
both non-renewable and renewable. Although
not termed as such, in the Mauritius CSP
ADB supports the government’s program
towards a greener, more inclusive economy.
The Bank provides budget support initiatives
in gender (principally education), land use
41 The WB, for example, has supported Morocco through a US$ 300 million
Green Growth Development Policy Reform, which supports revenue
diversification in rural areas, improved natural resource management,
and a transition to lower carbon growth. It succeeds a Solid Waste
Management policy loan, which supports enhanced sector governance,
sustainability and management.
PSD Support to South Africa CSP 2103-17: Challenges and Opportunities
South Africa’s own development strategy emphasizes the need to create jobs and to promote
inclusive green growth, raising GDP growth through structural reforms, reducing inequality,
and promoting rural development and green/environmentally sustainable, inclusive growth.
The key objective is to reduce unemployment and associated poverty by generating 5 million
new jobs by 2020 and 11 million by 2030. Currently the 11th largest GHG emitter in the world,
South Africa aims to transition to a lower carbon economy, investing in solar and wind energy
and cleaner coal, and more efficient transport and water management.
ODA represents only 1% of South Africa’s budget, so the private sector has a key role. With
the largest, most sophisticated private sector in Africa, there are good opportunities for ADB
to align its PSD support with its own LTS.
Job growth is the stated focus of ADB's private sector arm's investments in mining,
manufacturing, SME support and PPPs, which account for over 50% of CSP support, through
investments, lines of credit and green finance (South Africa has received US$ 500 million
from the Clean Technology Fund 1 ). Emphasis will be given to environmentally sustainable
(green) and inclusive investments, but the extent to which the ADB program, concentrated in
capital-intensive infrastructure projects, can have a near-term impact on green and inclusive
growth is not elaborated. It would also be helpful to understand how support to PSD and
governance will help create the conditions for job intensive growth and less inequality. The
political, governance and structural challenges to creating more flexible labor markets, though
well understood, are extremely difficult to address. The CSP also includes analytical work on
manufacturing, and it finances Middle Income Country grants. 2
The CSP includes a matrix which provides a summary of lessons learned from the previous
CSP. These included the need to reduce the number and spread of operations, problems with
efforts to provide microcredit to SMEs, the need to focus more attention on capacity building,
particularly at the local level, to focus on regional infrastructure programs, the need to better
prepare staff to work on green growth initiatives, and the need to post more private sector staff
in the new field office, given the large number of direct private sector investments in the ADB
portfolio. Also, much more work is needed to assist the government in developing PPP projects.
1 The CTF is one of the Climate Investment Funds and supports countries’ transitions to low carbon economies. Generally for middle income
countries, funds are highly leveraged with public and private funding sources. Other African beneficiaries include Morocco and Nigeria.
2 The broader CSP QEA 2 review found that MIC grants have been very challenging to implement in a number of countries, with procedures that
are poorly understood by member countries, and often inadequate implementation support from ADB.
eVALUatiOn Matters