A Decade of NEPAD - Economic Commission for Africa - uneca

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22 A Decade of NEPAD: Deepening African Private Sector and Civil Society Ownership and Partnership However, most of the Bank’s assistance to support NEPAD focused on the funding of infrastructure projects. Through 2005, 11 regional projects (including three in the financial sector, one for trade facilitation, three related to HIV/AIDs, and three in the power sector) valued at US$555 million had received finance commitments. From 2006 to 2007 the Bank committed another US$278.6 million in financial support to promote NEPAD regional infrastructure projects, including: the West and Central Africa Air Transport Safety Project, the Senegal River Basin Multipurpose Water Development Project, and the West Africa Power Pool. Simultaneously the Bank helped develop a pipeline of strong infrastructure projects valued at roughly US$ 1.7 billion in transport, trade, energy, water, telecoms, the financial sector and agriculture for funding in the period 2007 – 2009. Six projects worth $915 million were scheduled for Board Approval, including: a) supporting the implementation of the STAP priorities (regional transport and trade facilitation projects in Central Africa, Regional Communications Infrastructure Program in East and Southern Africa, the Second Phase of the Southern Africa Power Pool project, and grid interconnection between Ethiopia and Sudan; the implementation of the CAADP in West Africa (West Africa Agriculture Productivity Program) and the management of water resources at basin level (Niger River Basin). Several regional diagnostic studies were also carried out to undertake gap analyses of African regional infrastructure (trade corridors, regional power systems and international communications links). The Bank continued to support REC development providing capacity development resources to: the Southern Africa Development Community (SADC), the Common Market of East and Southern Africa (COMESA), the Economic Community of West African States (ECOWAS), the Union Economique et Monitaire Ouest Africaine (West African Monetary Union)(UE- MOA), Communauté Économique des États d’Afrique Centrale (Economic Community of Central African States) (ECCAS) and the East African Community (EAC). 20 The Bank has approved US$700 million for NEPAD programmes and priorities in FY 2009 supporting eight 20 World Bank, Support to NEPAD Period of Report: July 2006 to June 2007 priority projects in energy, ICT, transport, water and agriculture. Support has also been provided for the development of the COMESA and ECOWAS Infrastructure funds, regional trade integration assessments, mineral production studies and a multi-sector investment in the Zambezi Basin. In addition, the Bank administers a donor trust fund for CAADP. 21 In support of the private sector and with support from a fairly broad group of other multilateral and bilateral donors, the World Bank’s International Finance Corporation agreed to serve as the host of the Private Enterprise Partnership Africa (PEP-Africa) initiative with the key aim of integrating and harmonising donor funded private sector and SME support programmes across the continent. Building upon the achievements of the Africa Project Development Facility, PEP-Africa was established with the following three objectives: 1) improving the enabling business environment for private sector growth and development, 2) strengthening the growth and competitiveness of SMEs, and 3) stimulating private sector related investment. Key programmes of PEP-Africa involve the provision of advisory services to African governments in relation to private enterprise development, providing capacity building services to “business development service providers” across the continent and to financial institutions serving SMEs. 22 The World Bank is also a lead partner in the Public-Private Infrastructure Advisory Facility (PPIAF) 23 that was launched in 1999 as a joint initiative of Japan and the UK working closely with the Bank. It was based on the Bank’s Infrastructure Action Program and its mission is to help eliminate poverty and achieve sustainable development through public-private partnerships (PPPs). Toward this end, the PPIAF offers technical assistance to countries to support public-private project development and it identifies and shares best practice around public-private partnership related infrastructure project development in developing countries. Through grants, the PPIAF finances a range of country specific and multi-country advisory and related services. 21 World Bank, Support to NEPAD Period of Report July 2008 to June 2009 22 UNECA (2009) The Role of the Private Sector and Civil Society: Review of NEPAD after 8 Years, November 2009, p. 24 23 www.ppiaf.org – PPIAF’s Mission and Governance
Also in furtherance of African infrastructure development, and as a result of deliberations held at the first Infrastructure Consortium for Africa meeting in October 2005, the World Bank launched a research project called the Africa Infrastructure Country Diagnostic (AICD) that assessed the state of infrastructure in 24 countries in electricity, water, roads, and ICT. The AICD is a “knowledge programme” to improve understanding of Africa’s infrastructure situation and is intended to assist policy makers in setting priorities for current infrastructure investment and to provide a baseline for monitoring progress. NEPAD and the African Union are key partners of the AICD along with the French Development Agency, Department for International Development of the UK, the European Union, and the Public-Private Infrastructure Advisory Facility 24 . The first report under the programme, entitled “Africa’s Infrastructure a Time for Transformation” 25 was released on November 12, 2009 and indicated that to meet the Millennium Development Goals and achieve national development targets in Africa within 10 years, annual spending of US$93 billion would be required. Nearly 50% of the investment would be needed to boost the continent’s electricity supply. The study also found that Africa is already spending US$45 billion annually on infrastructure, most of which is coming from domestic resources. The study’s analysis indicated that more efficient utilization of existing resources could release a further US$17.4 billion in finance for infrastructure annually. However, the study assesses that there is still a shortfall of US$31 billion that needs to be addressed – by contribution from the international financial community and the private sector. To support infrastructure development on the continent, the World Bank is targeting lending of US$100 billion over the next three years 2010-2012, making available US$42 billion in International Development Association grants and interest free loans to poor countries, and supporting 24 Foster, Vivian, Executive Summary, Africa Infrastructure Country Diagnostic, Overhauling the Engine of Growth: Infrastructure in Africa, September 2008 25 www.web.worldbank.org/Africa European Union Support The European Union (EU) is a key partner of the African Union and of NEPAD. EU assistance covers all areas of 3. Public Sector Support for NEPAD A Decade of NEPAD the private sector through trade, bank and infrastructure projects 26 . In addition to the Bank’s direct lending and financial support of NEPAD, the World Bank has been a key partners of the African Union in supporting efforts to engage with and mobilize resources from within the African Diaspora: ӹ In November 2007, an Open House for the African Diaspora was held at Bank headquarters in Washington, D.C. Several hundred participants spent a full day discussing ways in which the Diaspora could aid in African development; ӹ A high-level seminar of the African Diaspora under the auspices of the Joint African Institute (JAI) and the World Bank was held in South Africa in February 2008; ӹ In May 2008, a workshop for Diaspora entitled “Understanding the World Bank Group – How to do Business Together”, was held at the Bank in Washington, DC to provide Diaspora with relevant information on engaging with the World Bank. The response was very encouraging; ӹ In June 2008, the Development Marketplace for the African Diaspora in Europe (D-MADE) was held in Brussels, Belgium. Over 500 businesses submitted proposals. A jury awarded nearly $1 million to sixteen projects in 11 African countries; ӹ In July 2008, the Bank signed an agreement with the AU in Washington, D.C., to assist in the development of the AU’s capacity to focus on Diaspora issues. ӹ In September 2008, the AU launched the African Diaspora Health Initiative aimed at linking specific health expertise among Africans in the Diaspora with health needs in designated geographical locations in Africa; ӹ Also, in September 2008, World Bank Group President Zoellick and Dr. Jean Ping, Chairperson of the AU, signed a Memorandum of Understanding that includes partnering on Diaspora engagement; ӹ The Development Marketplace for the African Diaspora in North America (D-MADA) is under preparation for the North American Diaspora. 26 AU/NEPAD African Action Plan 2010-2015: Advancing Regional and Continental Integration in Africa, Strategic Overview, Oct. 16, 2009, p. 14 the sectoral priorities of NEPAD. The support is primarily channelled through EU regional and national programmes 23
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