For the past ten years, Africa has recorded some of the world’s strongest rates of economic growth. At the same time, many African economies continue to function at well below their full potential. Structural transformation is needed to create more jobs, reduce poverty and accomplish sustainable development objectives.
The African Development Bank’s High 5 priority areas are intended to support African countries’ achievement of the SDGS. They are: Feed Africa; Light up Africa; Industrialise Africa; Integrate Africa; and Improve the Quality of Life for the people of Africa.
Atta Abdul, Fatima-Zahra, Shuaibu, and Daniel are the faces of a continent that is being transformed. By betting on Africa’s youth, the Bank is banking on the future to make the continent a land of progress, prosperity and hope.
Since 2015, 74 million Africans have benefited from improved agricultural technologies through the Bank’s efforts to support increased food security on the continent.
In western Mauritania, for example, the Brakna-Ouest irrigation infrastructure improvement project, supported by the Bank in the amount of $12 million, enabled 1 500 farming and livestock-producing families to return to cultivating their fields.
“We come from a farming and livestock-producing family and we grew up in that environment. Our harvest was very poor. We wanted to move somewhere else,” explains Atta Abdul Seck, a project beneficiary in Louboudou in western Mauritania. “As a farmer’s son, what I liked most when I returned was being able to continue farming. Farming is in my blood,” he says proudly.
Light up Africa
Without electricity, agriculture cannot effectively meet the growing challenge of food security in Africa. The Bank has made investment in energy a priority. Since 2016, it has mobilised $12 billion for its “Light Up Africa” strategic priority. Through this investment, 13.4 million people have gained access to electricity.
Morocco has made significant progress in widening access to electricity. In just the past twenty years, the electricity system has expanded to cover almost the entire country. The national rural electrification program, supported by the Bank with 155 million euros, has connected nearly 12.8 million Moroccans to the national power grid.
In Dar El Aïn, a village twenty kilometres from Marrakesh, the arrival of electricity has opened new doors for the women of the “Al Amal” cooperative. They use electricity to process their wheat into couscous or create other barley or wheat-based products. “The cooperative processes local crops into added-value products. Now, with electricity, the women are much more efficient, and their products are of better quality. It creates hope,” says Fatima-Zahra, a thirty-year-old member.
As part of the Bank’s “Industrialise Africa” priority, 9 million people have gained access to private financing. In Nigeria, for instance, where more than 70 percent of the population depends on agriculture, fluctuating harvests have significant repercussions on yields, income and food security.
One solution is fertilizer, particularly if locally produced. The Bank provided $100 million to support construction of a modern fertilizer plant in Port Harcourt.
Shuaibu Yusuf, a farmer in his thirties who live near Port Harcourt, has experienced the impact of this project in his daily life. “When I used this fertilizer, I saw the difference. My harvest increased by more than 40 percent. I can feed myself, pay for my children’s education, and even their medical expenses,” he says. “I’m going to encourage my children, my neighbours and members of my community to increase their farming activities so we can all progress together,” Shuaibu continues.
To derive more benefit from industrialisation, Africa must become better integrated in terms of trade and markets. Through integration, African countries can gain access to larger markets and thereby increase incomes for millions of residents through new opportunities.
Since 2015, 69 million people have benefited from the Bank’s support for new transport infrastructure that has advanced integration. Gaps in the primary transport corridors have been filled, links between countries have been strengthened, and intra-African trade has been revitalised.
A good example of this is The Nairobi-Addis-Ababa corridor, which received$670 million in Bank financing and which has enhanced the potential for trade and job growth in Ethiopia and Kenya.
Daniel Yatta, a forty-year-old Kenyan lorry driver, has been transporting goods between Nairobi and Addis-Ababa for 15 years, and has seen the new road’s impact on his business. “ Back in the day, it would take more than two weeks to drive between Addis and Nairobi,” he says. The new road has made his life much easier. “With the new road, the trip takes only a few days. With 30 tonnes of freight, it only takes about 24 hours to drive to Addis!” he continues.
Improve the quality of life for the people of Africa
An important part of improving living conditions is providing better access to essential services such as health, water and sanitation. Since 2015, Bank-supported projects have given 43 million people access to water and sanitation
What will a path to an inclusive and sustainable economic recovery from COVID-19 look like?
The manufacturing sector is facing its most significant challenge yet in the form of COVID-19 disruptions to both supply and demand side. As governments and business are trying to react and mitigate the short-term impact of the pandemic, the United Nations Industrial Development Organization (UNIDO) has taken a look at the potential long-term changes to industry.
An online event, organized by UNIDO, the Kiel Institute for the World Economy (IfW Kiel), and the Kiel Centre for Globalization (KCG), addressed the challenges and opportunities of industrializing for developing countries in these unprecedented times. The webinar brought together over 300 participants from over 80 countries, and it marked the first event in a series on the Future of industrialization in a post-pandemic world, led by UNIDO’s Policy Research and Statistics Department.
UNIDO’s Deputy to the Director General, Hiroshi Kuniyoshi, introduced the series and remarked on the impact of the pandemic, which “has been immediate and ubiquitous, leaving people, businesses and entire economies struggling to deal with the fallout.” He reinforced UNIDO’s commitment to continuing the close collaboration with its Member States and partners, “We must respond with equal speed, moved by a sense of joint purpose.”
Kuniyoshi also set the scene for the series, posing the question that both governments and companies need to answer now: “What will a path to an inclusive and sustainable economic recovery look like?”
The true problem of our time is “the erosion of trust between nations”, remarked the President of the Kiel Institute, Gabriel Felbermayr, which he said is the “indispensable lubricant of global production chains.” Felbermayr noted that “the crisis will profoundly affect the global economy even if production and demand bounce back quickly. The crisis is likely change the structure and patterns of the global division of labour and in particular to affect the global production networks.”
Will the pandemic usher the end of globalization as we know it?
Opening the panel, Beata Javorcik, Chief Economist at the European Bank for Reconstruction and Development, warned of the “danger that the world will sleepwalk into protectionism.” She also stressed that “we need international commitment to free trade (…) The restructuring of global production networks should be providing opportunities for less popular investment destinations and for export of services in countries with inexpensive skilled labour.”
How is the transition towards the Fourth Industrial Revolution impacted by COVID-19?
Three trends in the adoption of 4IR technologies as a consequence of the COVID-19 crisis were outlined by Svenja Falk, Managing Director at Accenture Research: acceleration of platformization and ecosystem governance, the continued diversification of the supply chain, and digital infrastructure at the core of the changes. Falk remarked we are at a tipping point for the adoption of Industry 4.0 technologies, however “we will see that the Fourth Industrial Revolution is changing at the same time,” and it is too early to talk about winners or losers.
What can we learn from past crisis to increase resilience of global production networks?
Drawing on lessons learned from past crisis, Izumi Ohno, Director of JICA Ogata Research Institute, talked about the implications for developing countries’ participation in global production networks in the aftermath of COVID-19. “We must find a way to co-exist with the virus. A “new normal” world urges our behavioural change, beyond efficiency.” Ohno reinforced the urgent need to increase the resilience of global production networks, as this will contribute towards a resilient society,
What do the early lessons from the COVID-19 crisis mean for the future of industrialization?
“Developing countries will need to become more active in managing foreign direct investment to seize opportunities in the aftermath of COVID-19,” said Ha-Joon Chang, Director of the Centre of Development Studies at the University of Cambridge. Chang also talked about developing countries’ needs, citing the necessity to “identify strategic sectors, target firms and take into account sectoral needs in building infrastructure.”
Panelists agreed that while the current crisis is fueling uncertainty about the future, it also provides an opportunity to closer align our recovery to the Sustainable Development Goals and Agenda 2030, taking policy action with long-term inclusive and sustainable results at its core. New production models might pave the way forward, but we must ensure inclusiveness, as well as account for societal and environmental factors, not only the economic.
Ursula von der Leyen: Next six months crucial for the EU
The College of Commissioners met today via videoconference the Government of Germany for the beginning of the German Presidency of the Council of the EU. President of the European Commission Ursula von der Leyen said that the start of the German Presidency came at a crucial point in time as the next six months would, to a large extent, determine the future of the EU.
“Not only must we overcome the crisis, but rather we want to and we must also continue courageously along the path of modernisation within the European Union”, she said at the press conference following the meeting. “Europe’s most significant challenges before the crisis will remain the same once this crisis is over: climate change, digitalisation, and Europe’s position in the world.”
She reminded of the urgency of the task to forge an agreement on the NextGenerationEU and the long-term EU budget in the European Council, saying it was the crisis that ‘sets the pace’. “Every day we lose, we will be seeing people losing their jobs, companies going bust, and the weakening of our economies.”
In a statement issued earlier today, President von der Leyen invited David Sassoli, the President of the European Parliament, Angela Merkel, German Chancellor, in her capacity as rotating Presidency of the Council, and Charles Michel, the President of the European Council, to a meeting on 8 July to take stock of progress and prepare the intensive political negotiations that lie ahead.
Von der Leyen also noted that the priorities of the German Presidency and the priority projects the Commission adopted were fully aligned – from climate change to digitalisation to resilience. She said the Commission would also be closely working with the German Presidency during the ‘decisive phase’ of the Brexit negotiations, as well as on external relations.
She stressed that the two sides working together can help Europe navigate its way through this crisis with strength and unity, as well as make NextGenerationEU a catalyst for modernisation in Europe.
Vietnam: New WB Support for Higher Education and Urban Development
The World Bank Board of Executive Directors today approved financing for two projects worth a total of US$422 million to help build a climate-resilient city in the Mekong Delta and improve the quality of Vietnam’s three national universities.
The Vietnam University Development Project, financed through a US$295-million credit, will improve teaching and research capacity at Vietnam National University-Hanoi, Vietnam National University-Ho Chi Minh City and the University of Danang. Through investments in modern infrastructure, cutting-edge equipment and knowledge transfer, it will help accelerate the transformation of these three universities into regionally competitive institutions with advanced teaching and research capabilities.
The Vinh Long City Urban Development and Enhanced Climate Resilience Project in Vinh Long Province, financed through a US$127 million credit, will improve access to infrastructure and connectivity and reduce flood risks in Vinh Long City’s urban core. By building flood control and wastewater management systems and developing key transport links, it will better equip Vinh Long to function as an economically and physically integrated metropolitan area.
“Investing in human capital and urban development are among the top priorities of the World Bank’s engagement in Vietnam,” said Ousmane Dione, World Bank Country Director for Vietnam. “These two projects will help accelerate real progress in areas critical to sustainable growth for Vietnam: skilled workers and more efficient and greener infrastructure.”
The university development project aims to address some key challenges faced by the higher education system. With the new funding, university infrastructure, once overcrowded and obsolete, will be upgraded to be modern, integrated, green and digital ready. The project, implemented in the three flagship universities, is also expected to enhance institutional capacity and to adopt new digital technology, in line with the national goals identified in the recently amended law on higher education and the upcoming 10-year higher education strategy.
The Vinh Long City development project will invest in resilient infrastructure and improved disaster risk management of Vinh Long City – a secondary city strategically located along the economic corridor that connects Ho Chi Minh City to the Mekong Delta. The project will help improve access to basic services such as drainage, wastewater collection and treatment and other green infrastructure and reduce the flooding risk exposed to 60 percent of the city’s population. It will also develop three strategic roads that will serve as critical links in the city’s road network.
These two credits are provided by the International Development Association (IDA).
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