Consultation closed on 16 Mai 2014
“Good Governance and Accountability for Africa’s Transformation”
The African Development Bank Group (AfDB) is inviting comments from stakeholders on its forthcoming Governance Strategic Framework and Action Plan 2014-2018 (GAP II). Your insights and recommendations are valuable to the AfDB and will be a critical input to the final GAP II.
AfDB’s new governance strategy builds on the achievements of its first “Governance Strategic Direction and Action Plan (GAP I)” for 2008-2012. Based on the Bank Group’s Medium-Term Strategy (MTS), 2008-2012, the Bank’s key focus has been on improving economic and financial governance in the continent by supporting actions which strengthen Public Financial Management (PFM) and by improving Business Enabling Environment (BEE) at the country, sector and regional levels.
With the central objective of assisting African countries to build capable and responsive states, the Bank’s work in governance has also targeted the specific needs of fragile states by encouraging them to increase transparency and accountability in the management of public resources. During the GAP I period, the Bank financed 76 program based operations worth USD 6 Billion and 43institutional support projects worth USD 313.5 million. In countries where the AfDB provided support, governance indicators have shown steady improvements.
According to the “Development Effectiveness Review on Governance”, published in 2012, across the 14 countries where the African Development Bank invested in revenue systems, tax revenue rose from 10.5% to 14.7% of GDP, while tax rates for businesses declined from 94% of commercial profits to 54%.
Why a New AfDB Governance Strategy for Africa?
Over the past decade, Africa has been undergoing economic and social transformation, with sustained economic growth, more peaceful transitions of power through democratic elections; and an increase in the middle class who pay taxes and demand improved services.
Revenues from natural resources as well as inflows from remittances and Foreign Direct Investment (FDI) vastly dwarf aid. Increasingly, Africa is almost at the point where it can use its own resources for development, but it now needs a strong governance framework to put them into effective use.
This underscores the need for African countries to become more self-reliant, and capable of mobilizing and utilizing their resources for their own development, in line with the demands and expectations of their citizens.
To respond to the continent’s accelerating transformation, the new AfDB’s Strategy for 2013-2022 has two core objectives: (i) achieving inclusive growth; and (ii) gradual transition to green growth. The Bank aims to support Africa’s transformation through five core operational priorities (see chart), one of which is Governance and Accountability (G&A) which provides the strategic platform for GAP II.
Vision, Core Objectives, and Strategic Orientation of GAP II
The vision of GAP II is that Africa is governed by transparent, accountable and responsive governments including strong institutions capable of driving inclusive and sustainable growth.
GAP II has three core objectives:
- Strengthening governments’ capacity for transparent and accountable use of public resources and citizens’ ability to hold Governments to account;
- Improving outcomes in the sectors and citizen’s’ ability to monitor them; and
- Promoting a business enabling environment which supports Africa’s socio-economic transformation, job creation and financial inclusion.
A cross-cutting objective supporting these three objectives aims to reduce corruption in both the public and private sectors.
GAP II is built around three strategic pillars: (a) public sector and economic management, (b) sector governance, and (c) investment and business climate.
The Bank values broad consultation and encourages all stakeholders to provide input and comments.
The objective of this web consultation is to solicit stakeholders input into the AfDB’s proposed Governance Strategic Framework and Action Plan, 2014-2018, and specifically to receive feedback on three key issues: