Financing Africa’s Transformation: Billions to Trillions
Tuesday, 26 May 2015 – 15:30 - 17:00
This year, the global community will adopt the post-2015 Sustainable Development Goals (SDGs), the platform to support global development aspirations for the next 15 years. The SDGs go well beyond the Millennium Development Goals (MDGs), highlighting a comprehensive vision of sustainable and inclusive development that embraces the economic, social and environmental dimensions. The transformative vision of the SDGs is to meet the dual challenge of overcoming poverty and protecting the planet. Investment needs for the SDGs are estimated at USD 5 to 7 trillion per year globally and USD 3 to 4 trillion per year for developing countries alone, mainly for basic infrastructure, food security, climate change mitigation and adaptation, health, and education. In order to mobilize the financing resources needed to achieve the SDGs, the global community needs to move the discussion from “billions” in Official Development Assistance (ODA) to “trillions” in investments of all kinds: public and private, global and national, in both capital and capacity. Prior to the adoption of the SDGs, on 31 January 2014, the African Union established a Common African Position (CAP) on the Post-2015 Development Agenda, based on six pillars: structural economic transformation and inclusive growth; science, technology, and innovation; people-centred development; environmental sustainability, natural resources management and disaster risk management; peace and security; and finance and partnerships.
The financial resources needed to achieve the SDGs in Africa are well above what can be financed from ODA flows and other current development financial flows. The financing requirement to close Africa’s infrastructure deficit alone is estimated at USD 48 billion annually over the next ten years. The estimated investment requirements to adapt to climate change in Africa are USD 18 billion per year. If other needs required for reaching the SDGs—such as agriculture and human development— are included, financing requirements would increase significantly (estimates for Africa’s financing needs post 2015 are being prepared).
This event will discuss how Africa is responding to the Post-2015 Financing for Development Agenda and the role that the African Development Bank Group (AfDB) is playing to support the continent in achieving the related goals. It will also serve to disseminate the CAP. It covers areas such as global financial flows for Africa’s development, global and regional public goods, particularly climate finance, and the landscape of development financing solutions including public and private sector roles in financing Africa’s development, and initiatives and areas of engagement that will be needed to achieve the SDGs. The event will also contribute to the Third International Conference on Financing for Development that will take place in Addis Ababa, Ethiopia in July 2015. This trajectory will continue with the WBG-IMF Annual meetings in Lima in October 2015, and with the 21st Conference of the Parties (COP21) to the United Nations Framework Convention on Climate Change (UNFCCC) in Paris in December 2015, which seeks a new international agreement on climate change.
Venue : Palais des Congrès, Sofitel Abidjan Hôtel Ivoire
Issues for discussion :
Financing Africa’s development post 2015 will require a diversity of policy responses depending on the ability of each country to leverage available resources. The AfDB and other Multilateral Development Banks (MDBs) help to design and implement demand-based, country-driven, cross-sectoral technical and financial development solutions. Financing solutions therefore need to be tailor-made to each regional member country’s circumstances. In this context, the following issues may be worth exploring:
- At the national level, what are the priority actions to be undertaken by the regional member country and by the AfDB and other MDBs to harness the necessary resources to finance the post-2015 national development?
- What are the key impediments to scaling up the role and engagement of the MDBs, and in particular the AfDB? How can regional member countries as shareholders alleviate these impediments?
- How can the AfDB and other MDBs add value to their existing products and services to support African countries in financing their post-2015 development agenda?
- Is there a more significant role for the Regional Economic Communities in supporting their individual member states to achieve the SDGs? How can this be articulated at the outset?
- Did African countries have sufficient statistical monitoring capabilities in order to accurately report progress on the MDGs? Is there sufficient awareness of this handicap for monitoring the SDGs?
Rapporteur: Mr. Kapil Kapoor, Director, AfDB