Transcript Document 7267773

AFRICA DAY SYMPOSIUM 2007
United Nations University
May 25, 2007
“The World Bank – Strategy for Promoting
Infrastructure, Trade and Investment
in Africa”
Lester Dally, Acting Special Representative, Japan
The World Bank
1
Private sector is key to growth…



The private sector must play a leading
role in ramping up growth in Africa.
Without a strong indigenous base, it is
hard to imagine that the African private
sector can become a strong political
constituency locally, that can protect its
stakes and push for the type of changes
e.g. in the investment climate, that will
spur its development and influence.
Growing the indigenous private sector is
thus fundamental to the overall private
sector expansion and development.
2
Economic performance has improved…
8
GDP per capita growth
6
4
2
0
1990
1992
1994
1996
1998
2000
2002
2004
2008
Ye ar
-2
-4
2006
De v e loping Countrie s
De v e loping e xcluding China and India
High-Income Countrie s
Sub-Saharan Africa
3
…and is becoming more diverse
GDP growth, annual average %
(1995-2005)
8
7.4%
7
5.5%
6
5
4
3
2.1%
17 Countries
8 Countries
21 Countries
36% of Africa's population
36% of Africa's population
29% of Africa's population
Slow growing countries
Sustained growing countries
Oil countries
2
1
0
 Natural Resources have gained new importance
4
Social Outcomes are improving…
 Gross primary enrollment rose from 71.5%
in 1991 to 96% in 2004
 90% of countries have primary enrollment rates
above 75%
 70% of Africans live in countries where
under-five mortality has dropped to
between 100 and 200
 Only 16% live in countries with under-five
mortality rates above 200
5
…but progress toward the MDGs remains too slow
Number of Countries
No Data
Off Track
On Track
Number of People
No Data
Off Track
Poverty
Poverty
Education
50
-50
40
-40
30
-30
Education
Gender
Gender
Child mortality
Child mortality
Water
Water
20
-20
10
-10
On Track
0
10
800 700
-700 600
-600
20 -800
500
-500
400
-400
300
-300
200
-200
100
-100
0
100
6
The aid architecture is changing
20
US$ billions
16
12
12
8
8
4
5
4
0
1992


1997
2002
Re maining ODA
Te chnical Coope ration
Humanitarian and Food Aid
De bt Forgiv e ne ss Grants
Scaled up aid has not yet been delivered
New development partners are emerging (China, Foundations,
7
Private Sector)
Trends provide opportunities




Targeting opportunities for accelerated
economic growth
Increasing support for good governance
and capacity development in resource rich
and slowly growing countries
Using innovative instruments to crowd in
resources (e.g. private sector,
commerical lending, concessional,
grants)
Integrating vertical programs and new
partners into sustainable country based
institutions
8
Implementation - summary assessment



Good Progress
• Private sector development, closing the
infrastructure gap, HIV/AIDS, malaria
• Capable states - - EITI and public financial
management
• Partnerships
On Track
• Regional integration
• Primary education
• Results framework
More Progress Needed
• Agricultural productivity
• Connecting the poor to markets
• Economic empowerment of women
9
Infrastructure



Country results

Average penetration rates for telecommunications doubled between 2004
and 2006

20 countries are undertaking reform agendas in the water sector

$6b in private provision and management of infrastructure in 2006 (roads,
energy, telecom)
Development partners’ efforts

20% increase in OECD resources in 2006 with 78% from multilaterals

Increased activity in large scale projects

10% allocated to regional infrastructure projects
World Bank Support

Delivered: 1.7 million with access to water, 28,000km roads, and several
thousands of jobs

On track to deliver: Low cost international telecommunications access in
24 countries, additional 2.5 million people per year with access to water,
30,000 km of roads
10
Modifications to the AAP - More Selectivity and Focus for Increased Impact
AAP PILLARS
FLAGSHIP BUSINESS LINES
I. ACCELERATING SHARED
GROWTH
Drivers of Growth
1. Identify the drivers of growth
2. Develop an African private sector
3. Create an export push
4. Close the infrastructure gap
 Energy
 Transport
 Water
5. Support regional integration
6. Build skills for competitiveness and growth
7. Make agriculture more productive and
sustainable
Participating in Growth
8. Connect the poor to markets and reduce
vulnerability to shocks
9. Scale up Human Development
 HIV/AIDs
 MalariaCAPABLE STATES
II. BUILDING
 Primary
education
and gender
10. Strengthen
capacity
and public
expenditure
equality
in
education
management
11. Build capacity of post conflict states to
deliver
essential
services FOCUS ON
III. SHARPENING
SELECTIVITY
FILTERS
Relevance in light of
experience
Progress toward results
WB comparative
advantages relative to
development partners
Global Priorities
DEVELOPMENT PARTNERSHIPS
14. Strengthen partnerships and deliver more
effective aid
3. Build skills for competitiveness in
a global economy
4. Raise agricultural productivity
5. Improve access to and reliability of
clean energy
6. Expand and upgrade road
networks in transit corridors
7. Increase access to safe water and
sanitation
8. Strengthen national health systems
to prevent and treat malaria and
HIV/AIDS
RESULTS
12. Help countries build outcome driven
national
strategies
IV. STRENGTHENING THE
13. Measure and report on progress
1. Strengthen the African Private
Sector
2. Increase the economic
empowerment of women
Instruments to achieve better results
•
•
•
Governance and effective public sector
Environmental management
Effective development partnership
11
Approach to Scaling up: Three Main Mechanisms



Sector Wide Approach and
Programmatic Approach
Development Finance
Packages and Syndications
Resource and Results
Processes
12
Accelerating Development Outcomes in Africa

Development trends and implementation progress give
rise to optimism

The country-based model will be maintained

WBG to help countries make the right choices and help
countries help themselves

The AAP strengthens results by focusing on outcomes


Alignment budget/staffing with priorities – number of
international staff to Africa country offices doubled over
FY04-08.
A more focused and effective World Bank role in Africa
13
Financing Packages to Accelerate Results




The growing demand for large scale infrastructure investments to spur
economic growth requires a mix of sequenced, coordinated development
finance products – private and public – to achieve and sustain results.
The Bank Group’s analytic skills, operational experience, and country
knowledge can be used to identify opportunities where resources from
multiple sources can fill funding gaps and achieve sector wide
development targets. In sectors such as energy, roads, or water supply,
where governments have clearly defined sector strategies focused on a
range of outcomes and a sound regulatory framework, sector wide
programs or “syndications" can be developed to sale up development
financing. Syndications will be prepared by the Government and
supported by a lead partner, normally a multilateral or bilateral donor.
In countries with well-developed national strategies and clearly defined
financing needs, the Bank Group will continue to use R7R processes to
provide more comprehensive coverage of development financing needs.
In all cases, the Bank Group will support countries in ensuring debt
sustainability.
IDA and the Africa Catalytic Growth Fund (ACGF) will be principal means
by which the Bank Group seeks to crowd in other donor support.
14
WBG: Pushing the frontier of private investments
IFC
MIGA
IBRD/IDA
Equity
A&B Loans
Guarantees
(partial credit structures
usually for local financing)
Advisory
Political Risk Insurance
(expropriation, transfer restriction,
breach of contract, war & civil
disturbances)
Guarantees
-Partial Risk
-Partial Credit
-Policy Based
IBRD Loan
IDA Credit

Similar requirements on safeguards,
development impact

Joint transactions (e.g., MIGA/IFC/PFG)
15
IFC Activity Supported by the AAP
Much of the progress in growth is due to the joint efforts of IDA, IFC
and MIGA in private sector development.

IFC began its Strategic Initiative for Africa three years ago based
on three objectives: bettering investment climates; improving
support for SMEs; and supporting project development for
potential IFC projects.

IFC has introduced new services and products including the SME
Solution Centers, local currency lending, trade finance, and the
Post-Conflict and IFC Against AIDS Initiatives. During the
Strategic Initiative’s first three years, IFC’s commitments in
Africa grew by 400 percent. Four sectors drove this growth:
finical markets; oil, gas, mining and chemicals; information and
communications technology; and telecommunications.

IFC reached 15,000 beneficiaries in MSME programs in three
countries and trained 4,000 managers (2005-2006). It has
strengthened its partnerships throughout the region, and the
Private Enterprise Partnership for Africa (PEP) was
oversubscribed.
16
MIGA Activity Supported by the AAP





In FY06 and 07, Sub-Saharan Africa has been MIGAs most
important regional priority. MIGA issued 28 guarantees for
17 new projects resulting in additional gross exposure of
$245 million.
Guarantees covered projects in ten countries: Angola,
Burkina Faso, Cameroon, Ghana, Kenya, Madagascar,
Mozambique, Nigeria, Sierra Leone and Uganda.
Priorities were regional integration, conflict-affected
countries and infrastructure.
MIGA also built its outreach program and cooperated
closely with the African Development Bank (AfDB) and
other institutions to identify and facilitate infrastructure
projects.
Increasingly, MIGA works upstream with IFC and the Bank
to improve national legal frameworks for FDI, and with
investors to structure transactions and improve
development impacts.
17
G8 Action Plan for Good Financial
Governance in Africa (Potsdam, May 19, 2007)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Contributing to good financial governance through bilateral
and multilateral development assistance.
Strengthening African tax systems.
Establishing transparent and comprehensive budgeting
procedures.
Promoting accountability and transparency,, enhancing
budgetary control.
Increasing accountability for revenues from extractive
industries.
Securing public debt sustainability.
Supporting fiscal decentralization.
Promoting donor harmonization through knowledge
management.
Enhancing capacities for governance in fragile states and
situations.
Developing local bond markets in emerging market
18
economies
Why TICAD is so Important?
1.
2.
3.
4.
5.
6.
Strategic Partnership among African Countries,
Japan, UNDP, UNOSS, and the World Bank
Solid and unique global platform dedicated to
the African agenda
Opportunity to draw international attention to
Africa on the move
Conduit for Asia-Africa knowledge sharing,
investment and development assistance
Process to mobilize widespread sustainable
international support for Africa
TICAD IV is stepping stone to G8 2008 in
Hokkaido
19