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World Bank to support reconstruction plan for Cabo Delgado in Mozambique

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Image source: Wikipedia

The World Bank will provide US$100 million (€86 million) to support the Mozambican government in the reconstruction plan for Cabo Delgado, a province affected by incursions by armed groups since 2017, an official source announced Monday.

“With the recently reconquered areas, we have realised that there are many people who want to return to their areas of origin. But they cannot return without the basic conditions being in place. As a result, we have an additional 100 million dollars for support,” said Idah Pswarayi-Riddihough, World Bank Country Director for Mozambique.

She was speaking to the media, moments after a meeting between the Mozambican prime minister, Carlos Agostinho do Rosário, and heads of diplomatic missions to discuss the Cabo Delgado Reconstruction Plan.

According to her, the new World Bank support comes on top of a first donation (also totalling US$100 million), announced in April and which was earmarked for the Northern Integrated Development Agency (ADIN), which is promoting social and economic projects for youth inclusion across northern Mozambique.

In the new donation, which is expected to be disbursed in January, the World Bank wants the money to be invested in the reconquered areas in the north of the province, and psychosocial support, reconstruction of public buildings and restoration of basic services are among the priorities.

“The idea is to give the affected people a decent place to live after the traumas they have suffered,” she said.

The Reconstruction Plan for Cabo Delgado, approved in September by the Mozambican government, is budgeted at US$300 million (258 million euros), of which almost US$200 million (172 million euros) is earmarked for the implementation of short-term actions, which include restoring public administration, health units, schools, energy, water supply, amongst other aspects.

According to the deputy minister of Industry and Trade, Ludovina Bernardo, the priority of the executive is to ensure a gradual and safe return of the inhabitants to the reconquered areas, at the same time as basic conditions are created.

“We want to make interventions on the ground, but safeguarding security. Our forces are on the ground and as soon as they ensure that the return of families to their areas of origin is possible, the process will begin”, he said, pointing, as an example, to the return of families from Palma, which has already begun.

The United Nations resident representative in Mozambique, Myrta Kaulard, also gave assurances that the organisation would continue to support the Mozambican government in the process, highlighting the importance of the “classic interventions” of the entity in cases of humanitarian crises.

“I would like to remind you that on the humanitarian side, international partners have contributed, in the year 2021 alone, a total of 160 million dollars (137 million euros). It is important to continue with this humanitarian support, while promoting reconstruction,” she stressed and highlighted the importance of creating a working group among international partners to combine actions and broaden appeals in the face of the humanitarian crisis in Northern Mozambique.

Cabo Delgado province is rich in natural gas but has been terrorised since 2017 by armed rebels, with some attacks claimed by the extremist group Islamic State.

The conflict has led to more than 3,100 deaths, according to the ACLED conflict registration project, and more than 824,000 displaced people, according to updates from Mozambican authorities.

Since July, an offensive by government troops with support from Rwanda, later joined by the Southern African Development Community (SADC), allowed for an increase in security, recovering several areas where there was rebel presence, including the town of Mocímboa da Praia, which had been occupied since August 2020.

Africa Today

Africa Industrialization Week 2021 at UNIDO

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A series of webinars on themes such as the Fourth Industrial Revolution, climate-related challenges in industrialization, and opportunities for Japanese and other international investors on the African continent, marked the beginning of Africa Industrialization Week 2021 at the United Nations Industrial Development Organization (UNIDO).

Africa Industrialization Week, observed by the United Nations system each year in November, focuses on raising awareness of the importance of Africa’s industrialization and the challenges faced by the continent.

“The African Continental Free Trade Area  – AfCFTA – agreement, which came into being this year, opens up a huge market of 1.3 billion people and is a US$3.4 trillion economic bloc with the potential to lift 30 million Africans out of extreme poverty. Coupled with the African Union’s Agenda 2063 and the 2030 Agenda for Sustainable Development Goals, it will help focus on addressing the existing challenges and opportunities to accelerate the industrial development of the continent,” said UNIDO Director General, LI Yong, in his message on the occasion.

“The Fourth Industrial Revolution (4IR) has deep implications for sustainable development of Africa, and governments’ policymaking approach towards new technology and innovation needs to be more agile, flexible and resilient,” according to Bernardo Calzadilla-Sarmiento, UNIDO Managing Director of the Directorate of Digitalization, Technology and Agribusiness at UNIDO.

At a webinar on ‘Road to 4IR for Africa,’ Calzadilla-Sarmiento said that by 2030 Africa’s potential workforce will be among the world’s largest and there is a massive opportunity for growth when this is coupled with the needed infrastructure and suitable skills for innovation and technology use.

Other panellists from the field of robotics, Artificial intelligence and the Internet of Things also discussed the potential strengths and opportunities, as well as the challenges for African industrialization.

In a separate webinar, hosted by UNIDO’s Investment and Technology Promotion Office (ITPO) in Tokyo, the panelists discussed ways to facilitate and promote investment and technology transfer, especially from Japan, for industrial development in Africa. Panelists emphasized that there was a need to increase manufacturing capabilities and improve capacity building, especially in sectors like pharmaceuticals, both for domestic consumption and for export.

“There are projected business opportunities valued at US$ 5.6 trillion by 2025 due to the increased spending capacity of US$ 3.5 trillion and growth in household consumption to US$2.1 trillion. This creates great business opportunities for investors from Japan, as well as from the rest of the world,” opined Mansur Ahmed, Vice President of the Africa Business Council.

In a webinar on “Carbon-Neutral and Resilient industrialization in Africa,” the panelists discussed ways of addressing the challenges of climate change and ensuring an inclusive and sustainable industrial development on the continent. They agreed there is a need for a policy environment that allows private sector participation in energy generation, and a need to develop pathways aligning industrial policy goals with national climate action priorities and policies.

In 2016, the United Nations proclaimed the period 2016-2025 as the Third Industrial Development Decade for Africa (IDDA III) and tasked UNIDO with leading the implementation of the Decade, in collaboration with a range of partners. According to Victor Djemba, chief of UNIDO’s Africa division, UNIDO coordinated the development of a Joint Roadmap to better streamline international efforts into programmes and projects for the continent’s industrial development activities. “The vision for the implementation of IDDA III is to firmly anchor Africa on a path towards inclusive and sustainable industrial development,” he added.

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Africa Today

Ethiopia: Humanitarian aid needed as situation deteriorates in Tigray

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Food is distributed in Zelazle in northern Ethiopia, after a convoy reached the region on Monday. © WFP/Claire Nevill

With the dire humanitarian situation in Tigray, Ethiopia, continuing to deteriorate, it is critical to establish a regular flow of humanitarian aid into the region, the Deputy Spokesman for the UN Secretary-General said on Wednesday. 

Yesterday, almost 40 trucks with humanitarian supplies, including food, left the Afar capital of Semera for Tigray – the first convoy to do so since 18 October.  

Meanwhile, trucks containing fuel and medical supplies are still waiting for clearance in Semera. 

Around 500 trucks of humanitarian supplies are required per week, Farhan Haq informed journalists at a regular press briefing. 

Seven million food insecure 

In November 2020, heavy fighting between central Government troops and those loyal to the Tigray People’s Liberation Front (TPLF) have left Ethiopia’s northern regions of Tigray, Amhara and Afar in dire need of humanitarian assistance. 

And after months of killings, looting and destruction of health centres and farming infrastructure, including irrigation systems that are vital to the production effort, those needs have only surged. 

Currently, some seven million people throughout the country are suffering acute food insecurity. 

Growing needs 

Meanwhile following their suspension on 22 October, UN Humanitarian Air Service flights to Mekelle have resumed, allowing the UN and humanitarian partners to rotate staff in and out of Tigray and transfer a limited amount of operational cash.  

However, said the Deputy Spokesperson, “humanitarian partners on the ground continue to report significant challenges due to cash shortages for operations”. 

Despite a $40 total injection of new resources to Ethiopia – $25 million from CERF and $15 million from the country-based Ethiopia Humanitarian Fund (EHF) –  the country still faces a funding gap of $1.3 billion, including $350 million for the response in Tigray. 

Despite an extremely challenging operating environment, humanitarian partners continue to respond to urgent and growing needs across northern Ethiopia, including in Amhara and Afar. 

In Amhara, a major food assistance operation kicked off in Kombolcha and Dessie towns, targeting more than 450,000 people over the next two weeks. 

Relocate families 

Yesterday, the UN announced that given the security situation in the country, and out of an abundance of caution, it is reducing its footprint in Ethiopia by temporarily relocating all eligible dependents.  

“It is important to note that staff will remain in Ethiopia to deliver on our mandates”, said Stéphane Dujarric, Spokesman for the Secretary-General.  

The UN will monitor the situation as it evolves, keeping in mind the safety of the staff and the need to continue its operations and support all those who need assistance. 

Earlier this month, the Organization confirmed that at least 16 UN staff and dependents had been detained in the Ethiopian capital, Addis Ababa, and that it was working with the Government of Ethiopia to secure their immediate release.

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Africa Today

Ghana Can Create Better Jobs through Accelerated Economic Transformation

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Ghana has an opportunity in the coming decades, to accelerate economic transformation and create more and better jobs, after navigating through the heights of the pandemic. It can achieve this through fostering greater global integration, technological transformation, macroeconomic stability, and financial sector development, says the World Bank’s latest economic analysis for the country.

The newly released Country Economic Memorandum, Ghana Rising – Accelerating Economic Transformation and Creating Higher Quality Jobs says Ghana has all it takes to continue being an economic development star, if it takes the right steps to nurture growth and job creation.

“Ghana faces an acute challenge of generating more and better jobs and has a ‘missing middle’ of employment in mid productivity sectors”, notesPierre Laporte, World Bank Country Director for Ghana, Liberia and Sierra Leone. “This is the time for Ghana to fill that ‘missing middle’ by cultivating export-oriented activities in both manufacturing and services and harnessing the transformative potential of trade; it faces an historic opportunity to do so with the Africa Free Trade Continental Area (AfCFTA).”

The report highlights four main pillars for accelerating economic transformation and improving jobs outcomes:

  • To create jobs, Ghana will need to drive sectoral transformation through the movement of workers into higher productivity firms and sectors and spatial transformation through trade, urbanization, and connectivity. ‘Global innovator’ services, in particular ICT and business services, could play a critical role.
  • To deliver productivity growth and boost innovation and entrepreneurship, it will need to drive technological transformation through the adoption of digital and complementary technologies in domestic firms. To enable this change it will be key to improve internet connectivity, invest in foundational skills and advanced digital skills, and facilitate technology adoption for firms.
  • To support more inclusive private sector development, Ghana will need to leverage the financial sector to facilitate firm expansion, technology adoption and innovation.
  • To enable long-term inclusive growth, Ghana will need to double down on macro-fiscal stability, natural resources management and revenue mobilization (to generate the revenues to fund reforms for economic transformation). Environmental taxation can boost revenues while helping to minimize the impact of climate change on households and incentivize sustainable land-use.

This report lays out three scenarios for an accelerated economic transformation for better jobs” adds David Elmaleh, World Bank Senior Economist, and co-author of the report. “Without reforms, in a ‘business as usual’ scenario, Ghana’s economy is currently projected to reach upper middle-income status by 2037, while under a ‘bright horizons’ scenario, which includes the adoption of some key reforms to drive economic transformation, Ghana’s economy could reach upper-middle-income status by 2032. However, under a ‘pitfalls’ scenario, Ghana would have to wait until 2040. The greatest impact on GDP would be from reforms to raise the productivity of export-oriented global innovator services and manufacturing. This can start now, under the new budget.”   

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