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ADB Approves $400 Million Loan to Support Philippines’ Capital Market Development

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The Asian Development Bank (ADB) has approved a $400 million policy-based loan to support the Philippine government’s efforts to strengthen domestic capital markets and reach its development goals of high, sustained economic growth and poverty reduction.

The Support to Capital Market-Generated Infrastructure Financing Program, subprogram 1, aims to address key constraints that have limited the growth of domestic capital markets, especially government and corporate bond markets. It also focuses on building a vibrant domestic institutional investor base that will become a sustainable source of long-tenor infrastructure finance. By boosting infrastructure finance, the capital market development program will support higher public infrastructure spending for years to come.

The government’s flagship “Build Build Build” (BBB) infrastructure development program targets an increase in public spending on infrastructure towards 7.0% of gross domestic product by 2022, up from 5.5% in 2018 and an average of 2.8% in the last three decades.

“Resilient and vibrant capital markets are key to achieving economic development, growth, and poverty reduction as set out in the government’s long term strategy AmBisyon Natin 2040,” said ADB Vice-President Ahmed M. Saeed. “By developing domestic capital markets, funds are generated to support higher levels of long-term investments and sustainable quality job creation. The program approved today will support the Philippine government’s development goals, including its response to the COVID-19 pandemic.”

The capital markets development program has supported various reforms in recent years, including the launch and implementation of the first government-led, comprehensive domestic bond market development plan. The Philippines also has modernized its government debt trading infrastructure and provided a reliable yield curve to support the pricing of private sector debt instruments.

Other reforms have helped build an enabling environment for private sector debt instruments. These reforms will boost outstanding corporate bonds to an estimated 12% of gross domestic product by 2021, up from 7.5% in 2017. The government also has upgraded the Personal Equity and Retirement Account system, which makes it easier for Filipinos to tap into the capital markets to save for the future.

This latest assistance builds on decades of ADB support to financial sector reforms in the Philippines, including strengthening governance and investor protection measures in the wake of the 1997 Asian financial crisis. Since 2013, ADB has been supporting reforms in the domestic capital market, which aimed to build a more diversified institutional investor base to encourage the development of long-term finance for infrastructure.

This new loan brings ADB’s total lending to the Philippines to $2.1 billion so far this year. ADB approved a $1.5 billion loan for the COVID-19 Active Response and Expenditure Support Program on 23 April and $200 million in additional financing for the Social Protection Support Project on 27 April.

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Finance

ILO and LinkedIn launch data insights partnership

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The International Labour Organization (ILO), the Partnership for Action on Green Economy (PAGE)  and LinkedIn have launched a two-year data insights partnership that aims to improve government decision-making, promote green jobs and build the capacities of governments to identify and provide training opportunities.

Through the Memorandum of Understanding (MoU) signed between the ILO and LinkedIn on 15 January 2021, the partners hope to support the development of deep, cross-sector partnerships that benefit governments, the private sector, employers’ and workers’ organizations and civil society organizations. This partnership also supports the achievement of the Sustainable Development Goals (SDGs)  and meeting the unique challenges posed by the COVID-19 pandemic.

LinkedIn’s real-time view into the global labour market will enable partners to leverage its insights into the skills, jobs and occupations that are quickly rising in demand. For example, LinkedIn’s granular, skills-based understanding of green jobs will also detect emerging trends by analysing occupations whose titles may not identify them in a traditional “green” role but are increasingly reliant upon green skills. Complementary LinkedIn data on hiring trends by gender and region will also provide unique insights into the world of work. 

Thanks to its MoU with the ILO, these data can now help inform policy recommendations as well as further research and analysis, with a particular focus on supporting governments to transition to green economies within the context of PAGE’s work on green jobs as well as helping governments and labour market institutions become more responsive to the needs of workers and employers through the promotion of targeted skills training.

The LinkedIn-ILO partnership also welcomes the strategic collaboration of UNEP  and UNITAR , whose complementary mandates and expertise will help translate rich labour related data insights into informed policies and practical capacity building activities.

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Africa Today

Sudan: 250 killed, over 100,000 displaced as violence surges in Darfur

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Intercommunal violence in Darfur has left millions in need of assistance. Pictured here, an IDP settlement in Sortoni. (file photo) UNAMID/Mohamad Almahady

A sharp uptick in intercommunal violence in Sudan’s Darfur region has forced more than 100,000 people to flee their homes in search of safety, including many into neighbouring Chad, the UN refugee agency (UNHCR) reported on Friday.

According to the agency, 250 people – including three humanitarian workers – also lost their lives in the clashes that started on 15 January in West Darfur province, and spread into South Darfur the next day. 

Boris Cheshirkov, a UNHCR spokesperson, told journalists at a regular press briefing in Geneva on Friday, that about 3,500 new Sudanese refugees have arrived in eastern Chad. 

“These refugees – the majority of them women and children – have been hosted in four very remote locations that lack basic services or public infrastructure, where they have been sheltering under trees,” he said. 

“Due to the COVID-19 situation, Chadian local authorities are directing the new arrivals to a transit site, where they will undergo quarantine before being relocated to an existing refugee camp, away from the border,” the UNHCR spokesperson added. 

He said that the UN agency is rushing supplies to the area to respond to their needs, as well as mobilizing resources as part of an inter-agency response. 

‘Break the cycle of violence’ 

Authorities in the region have been attempting to contain the situation and have deployed security forces to the area but “severe gaps” in protection remain, according to the UN human rights office. 

However, an “imminent risk” of further violence remains, in an environment “where decades-old ethnic and tribal tensions that were further stoked by the previous regime continue to fester”, OHCHR spokesperson Ravina Shamdasani said at the same briefing. 

There are reports that local health facilities are unable to cope with the high number of casualties, she added. 

The OHCHR spokesperson called on the Government of Sudan to protect of civilians as well as restore public order and the rule of law in Darfur. 

She also called for thorough and effective investigations into the violence to bring the perpetrators to justice and “to break the cycle of armed citizens taking the law into their own hands to avenge attacks on members of their communities.” 

A vast, strife-torn region  

Darfur, a vast region roughly the size of Spain and plagued by violence for years, was the site of a United Nations-African Union hybrid peacekeeping mission (UNAMID) that was deployed to protect civilians, facilitate aid delivery, and support efforts to address root causes of the conflict.  

The mandate of UNAMID ended last year and it ceased operations on 31 December 2020, roughly two weeks before the latest round of violence.  

The mission is currently drawing down, a process that includes repatriation of troops, their vehicles and other equipment; the separation of civilian staff; and the closure of its offices.  

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Africa Today

COVID ‘vaccine hoarding’ putting Africa at risk

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Photo: Xinhua

Africa is in danger of being left behind in the rollout of COVID-19 vaccines as countries in other regions strike bilateral deals, thus driving up prices, the World Health Organization (WHO) warned on Thursday. 

Although vaccines have been administered in 50 wealthier nations, Guinea is the sole low-income country on the continent to receive doses, with only 25 people being inoculated so far.  Meanwhile, Seychelles is the only African country to start a national vaccination campaign. 

‘We first, not me first’ 

“We first, not me first, is the only way to end the pandemic. Vaccine hoarding will only prolong the ordeal and delay Africa’s recovery. It is deeply unjust that the most vulnerable Africans are forced to wait for vaccines while lower-risk groups in rich countries are made safe”, said Dr Matshidiso Moeti, WHO Regional Director for Africa. 

“Health workers and vulnerable people in Africa need urgent access to safe and effective COVID-19 vaccines.” 

An international coalition known as the COVAX Facility was established to ensure all countries will have equal access to any vaccines against the new coronavirus disease. 

It is co-led by the Coalition for Epidemic Preparedness Innovations (CEPI), Gavi, the Vaccine Alliance, and WHO. 

The COVAX Facility has secured two billion doses of vaccine from five producers, with options for over one billion more.  Delivery is set to begin soon, according to Thabani Maphosa, Managing Director, Country Programmes at GAVI. 

“This massive international undertaking has been made possible thanks to donations, work towards dose-sharing deals and deals with manufacturers that have brought us to almost two billion doses secured. We look forward to rollout in the coming weeks”, he said. 

Vaccination commitment  

COVAX has committed to vaccinating at least 20 per cent of the population in Africa by the end of this year. 

Priority will be given to health workers and other vulnerable groups, such as older persons and those with pre-existing health conditions. 

An initial 30 million vaccine doses are expected to begin arriving in countries by March.  Overall, a maximum of 600 million doses will be disbursed, based on two doses per person. 

WHO said timelines and quantities could change, for example if vaccines fail to meet regulatory approval or due to challenges related to production, delivery and funding.

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