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The African Development Bank and the Global Environment Facility - 2014 Annual Report
04/05/2015 10:58
The African Development Bank and the Global Environment Facility - 2014 Annual Report
Working Paper - 212 - Diversification and Sophistication of Livestock Products: the Case of African Countries
30/12/2014 09:42
Working Paper - 212 - Diversification and Sophistication of Livestock Products: the Case of African Countries
Working Paper - 209 - What is driving the African Growth Miracle
04/12/2014 16:57
Working Paper - 209 - What is driving the African Growth Miracle
Working Paper 206 - Growth and Distributional Impact of Agriculture, Textiles and Mining Sectors in Lesotho
22/08/2014 15:00
Working Paper 206 - Growth and Distributional Impact of Agriculture, Textiles and Mining Sectors in Lesotho
July 2014 - Implementation Update- Action Plan to Improve Statistics for Food Security, Sustainable Agriculture and Rural Development in Africa
08/08/2014 16:53
July 2014 - Implementation Update- Action Plan to Improve Statistics for Food Security, Sustainable Agriculture and Rural Development in Africa
Nigeria - 2013 - Country Profile - Leveraging Partnerships for Economic Transformation and Inclusive Growth
14/05/2014 11:26
Nigeria - 2013 - Country Profile - Leveraging Partnerships for Economic Transformation and Inclusive Growth
Gabon - 2014 - Profil Pays - Ensemble pour bâtir le présent et mieux assurer l’avenir
14/05/2014 11:26
Gabon - 2014 - Profil Pays - Ensemble pour bâtir le présent et mieux assurer l’avenir
Rwanda - 2014 - Country Profile - Improving economic competitiveness to bring about shared growth - Full Report
14/05/2014 09:40
Rwanda - 2014 - Country Profile - Improving economic competitiveness to bring about shared growth - Full Report
Rwanda - 2014 - Country Profile - Improving economic competitiveness to bring about shared growth - Summary Report
14/05/2014 09:40
Rwanda - 2014 - Country Profile - Improving economic competitiveness to bring about shared growth - Summary Report
Tracking Africa’s Progress in Figures
09/05/2014 09:12
Tracking Africa’s Progress in Figures
African economies have sustained unprecedented rates of growth, driven mainly by strong domestic demand, improved macroeconomic management, a growing middle class, and increased political stability. As the continent continues to evolve, the African Development Bank’s <a href="t3://page?uid=6814"><strong>Tracking Africa’s Progress in Figures</strong></a> publication looks at the key megatrends of the last few decades that will shape Africa’s future. <h3>Human Development</h3> <a href="t3://file?uid=47718"><img align="left" height="100" src="uploads/RTEmagicC_1-Human-Development-tracking.png" alt="" /></a>Over the last 20 years the continent’s population has grown rapidly and in 2011 exceeded the 1 billion mark. Of all global regions, Africa will lead population growth over the next 50 years. Linked to this megatrend of rapid population growth is that of urbanization. The people of Africa will increasingly be city dwellers. Since 1960, the urban share of Africa’s population has doubled from 19 to 39 percent, equivalent to an increase of more than 416 million people in 2011. This means that Africa will have some of the largest mega-cities in the world. With a large population, Africa can harness and build on the expanded workforce to spur economic growth. However, this is conditional on Africa improving access to and equity within health systems, articulating right education policies, and creating employment opportunities. <h3>Economic Performance, Inclusiveness, and Structural Transformation</h3> <a href="t3://file?uid=47715"><img align="left" height="100" src="uploads/RTEmagicC_2--Economic-structural-transformation-tracking.png" alt="" /></a>Africa is on the rise. On aggregate, the region’s GDP growth is expected to average more than 5 percent over 2013–2015. Average inflation in Africa stood at 8.9 percent in 2012 and has since edged down to 6.7 percent in 2013, having been largely contained in most African countries. Macroeconomic stability, trade and exchange rate liberalization, and new policies and incentives supportive of the private sector have helped drive private sector development. Supported by the strong economic growth, the proportion of people living in poverty has fallen from over 50 percent in 1981 to less than 45 percent in 2012. This is coupled with the continent’s emerging middle class, grown to some 350 million people and projected to reach 1.1 billion by 2060. Africa’s growth, however, has not been even across all countries. Six of the ten most unequal countries in the world are in Africa, and there is not yet any evidence of progress in reducing income inequality. With the endowment of a young growing workforce on the one hand and natural resources on the other, Africa has an important opportunity for inclusive growth. The challenge is to seize it through wellexecuted investment in infrastructure, increased access to education and relevant training, the development of capable institutions, and support for private investment and job creation. Structural economic change is indispensable to achieve the desired progress of Africa and to bring prosperity to the continent’s populations. In order to alleviate poverty and reduce income inequalities, Africa will need to embrace structural transformation while maintaining robust economic growth. Fostering diversification through transition to high-productive sectors will be a catalyst for industrial upgrading and technological innovation which in turn will increase job creation. The path toward obtaining the status of middle-income and high-income countries will necessitate diversifying African economies away from dominant sectors such as agriculture and commodities. <h3>Governance, Fragility, and Security</h3> <a href="t3://file?uid=47717"><img align="left" height="100" src="uploads/RTEmagicC_3-Governance-Fragility-tracking.png" alt="" /></a>Africa’s rapid economic growth is transforming the lives and livelihoods of Africans at an unprecedented<br />pace. Such growth is underpinned by improvements in governance: over the period of 2000-2012, around 89 percent of African countries have improved their capacity to deliver economic opportunity and human development; 67 percent of countries made progress in fostering political participation, gender equality, and human rights; and 40 percent of countries strengthened their safety and rule of law. Tackling corruption remains an essential part of Africa’s development agenda. Africa is growing, creating both opportunities and risks. Change is intrinsic to the development process; if managed effectively, they can help unlock Africa’s development potential. Yet change can also be disruptive: urbanization and slum development, the youth bulge, inequality and social exclusion, climate pressures, environmental damage, new resource rents and resource scarcity, and weak governance all have the potential to place African societies under considerable strain. Fragility comes about where these pressures become too great for countries to manage within the political and institutional process, creating a risk that conflict spills over into violence. Despite tough challenges posed by fragility, progress is possible. While various fragile states have lost ground in terms of economic growth during earlier periods of conflict—such as the case of Liberia where GDP dropped by as much as 90 percent in 20 years—many of them, with peace and stability, are now on the path of growth and recovery. More effective and better coordinated efforts, tailored to each individual situation, must be made to assist countries affected by fragility and conflict, and countries in transition in managing political, security, economic, and environmental stresses that make them and their citizens vulnerable. <h3>Regional Integration, Trade, and Investment</h3> <a href="t3://file?uid=47721"><img align="left" height="100" src="uploads/RTEmagicC_4-Regional-integration-tracking.png" alt="" /></a>In recent years, Africa has emerged as a frontier market, having increasingly attracted the attention of investors. In 2012, Africa’s foreign direct investment (FDI) inflow grew to USD 50 billion while exports amounted to USD 641 billion. At the same time, intra-African trade remains low. Integration remains essential for Africa to realize its full growth potential, to participate in the global economy, and to share the benefits of an increasingly&nbsp; connected global marketplace. With plans to establish regional- and continental-wide free trade areas well underway, political commitment will be required to translate the trade agendas into sound policy and regulatory reforms to maximize the benefits. <h3>Infrastructure Development</h3> <a href="t3://file?uid=47719"><img align="left" height="100" src="uploads/RTEmagicC_5-Infrastructure-Tracking.png" alt="" /></a>As Africa continues to urbanize, the importance of public investment in infrastructure becomes increasingly evident. Basic amenities such as housing, drinking water, and sanitation facilities are needed to provide Africa’s growing population with a better standard of living. Investments in energy and transport will also help increase access to affordable and reliable electricity, improve transport connectivity, and reduce transport cost and time. At the same time, Africa’s rising consumer class has resulted in a surge in mobile-cellular subscriptions and internet usage. As it stands, broadband coverage is at 16 percent and will likely reach 99 percent by 2060. <h3>Agriculture, Food Security, and a Greener Environment</h3> <a href="t3://file?uid=47714"><img align="left" height="100" src="uploads/RTEmagicC_6-Agriculture-tracking.png" alt="" /></a>Agricultural production has increased, but mainly by bringing more land under cultivation rather than by<br />improvements in yields. Feeding the expanding urban population will present a challenge that will entail<br />adoption of the latest technologies and high-yielding crop varieties as a way of raising productivity. Strengthening agriculture and food security through an integrated value chain approach can improve the livelihoods of Africans who live in rural areas. Many are reliant on subsistence farming, and a sizable proportion is chronically vulnerable to climatic uncertainty. Africa lives off its land, and more than 227 million Africans work on the land, which too often fails to provide for their needs. By continuing to invest in rural infrastructure (such as rural roads, irrigation, electricity, storage facilities, access to markets, conservation systems, and supply networks), countries can increase their agricultural productivity and competitiveness.Read more
Compendium of Statistics on AfDB Group Operations 2014
06/05/2014 13:16
Compendium of Statistics on AfDB Group Operations 2014
April 2014 - Implementation Update- Action Plan to Improve Statistics for Food Security, Sustainable Agriculture and Rural Development in Africa
10/04/2014 15:44
April 2014 - Implementation Update- Action Plan to Improve Statistics for Food Security, Sustainable Agriculture and Rural Development in Africa
Working Paper 193 - Large Scale Agribusiness Investments and Implications in Africa- Development Finance Institutions' Perspectives
03/01/2014 10:26
Working Paper 193 - Large Scale Agribusiness Investments and Implications in Africa- Development Finance Institutions' Perspectives
Agriculture is the dominant source of livelihood in Africa, especially in low-income rural areas.&nbsp; About 70% of the population is directly employed in the sector, and it accounts for approximately 30% of the region’s GDP.&nbsp; Therefore growth in agricultural productivity is likely to have a direct impact on economic growth with strong effects on poverty.&nbsp; Furthermore, agricultural productivity growth resulting from increased investments (both public and private), when coupled with input and output market development, can set the stage for the same structural transformation of agrarian economies that has immensely benefitted other developing regions, most recently Southeast Asia. The paper’s focus is agribusiness and encompasses the whole spectrum of the agriculture value chain. This includes mainly, inputs (seeds, fertilizer, pesticides, herbicides and animal feed), primary production (crop and livestock husbandry), processing (milling, storage, packaging and handling), marketing and distribution.&nbsp; We define an agribusiness as any operation along this value chain that is conducted on a commercial basis. It must be acknowledged that agribusiness is necessarily a subset of agriculture since other aspects of the latter, such as extension services and land registration, are usually public in nature. The total size of agriculture, including agribusiness, in sub-Saharan Africa was approximately USD 313 billion in 2010, and is expected to reach USD 1 trillion in 2030. The paper analyses the additionality that DFIs bring to the agribusiness sector. By additionality, we mean the specific features that DFIs bring to private sector projects that commercial banks are unable or unwilling to bring. Such “additional” aspects of DFIs’ support are important not only to ensure that highly developmental projects are fully funded, but also, to enhance the development outcomes of supported projects through the introduction of well-rounded design and improved operation. One of the salient aspects of the growth of the agribusiness sector in recent years has been the attendant increase in demand for land in Africa. Investment trends in the agribusiness sector have affected both the scale and complexion of the demand for land in Africa in recent years. In West and Central Africa, approximately 7.8 million hectares (2% of total agricultural land in 2009) were awarded to foreign investors between 2006 and 2010.&nbsp; East Africa, in particular Ethiopia and Sudan, has similar quantities of land allocated to investors. This scale of demand for land in Africa is unprecedented. Africa’s share of global arable land is only 16%. However, only about 20% of its arable land is under cultivation at a given point in time. On the other hand, future expansion outside of Africa is limited. Consequently, the African region will continue to attract investments in the agribusiness sector. While this demand represents an opportunity, it often comes with risks such as land tenure insecurity, land market distortions, increased vulnerability to food price shocks, loss of biodiversity and environmental degradation. This means that the potential benefits expected from foreign direct investments in the sector are not always guaranteed.&nbsp; Using the Principles of Responsible Agricultural Investments that have been agreed by several international organization, this paper identifies the following areas where DFIs can bring additionality in the projects they finance: (i) proper land valuation; (ii) ensuring food security; (iii) improving land tenure security (especially for smallholders); (iv) generating local linkages (e.g. out-grower schemes) and (v) ensuring environmental and social safeguards. Bringing such additionalities ensures that private sector projects financed by DFIs are better aligned with their poverty reduction mandates. Beyond land governance aspects, DFIs bring other forms of additionality, including direct (providing equity and debt financing) and indirect resource mobilization (reducing political and commercial risk), as well as political risk mitigation. This paper’s main contribution to the debate on large agribusiness projects and land concessions in Africa is the fact that it draws from the actual experiences of the African Development Bank in the field to demonstrate how DFIs can maximize development outcomes of projects without compromising commercial viability.&nbsp; As a result, its recommendations are grounded in actual experiences so that these private investments can be leveraged in to the continent’s benefit.Read more
Working Paper 192 - Empirical Analysis of Agricultural Credit in Africa: Any Role for Institutional Factors
24/12/2013 13:40
Working Paper 192 - Empirical Analysis of Agricultural Credit in Africa: Any Role for Institutional Factors
A strong and efficient agricultural sector has the potential to enable a country feed its growing population, generate employment, earn foreign exchange and provide raw materials for industries. It is however ironical that despite the great potentials Africa has in agricultural production; the continent is a net importer of food. Aside from the problem of poor access to land and modern technology, African agricultural is afforded inadequate access to credit and characterized by low investment. It is in the light of the above that this study examined the extent of agricultural credit and the factors responsible for the level of agricultural credit in Africa. The study equally analyzed the factors responsible for the low level of agricultural credit in Africa, with a special consideration given to institutional factors. Greater access to credit facilities has often been identified as the direct solution to increasing investment agriculture in Africa. The paper estimates an agricultural credit model using data covering 1990-2011 and covering ten countries: Mali, Nigeria, Burundi, Rwanda, Chad, Sudan, Egypt, Lesotho, South Africa and Kenya. The study investigates the determinants of access to credit using panel data techniques. Fixed and random effects models were estimated and compared with the Pooled OLS and examines the importance of individual and period effects explaining differences in access to credit across the selected countries. The data used for this paper were obtained from World Development Indicator (WDI) World Bank, the African Development bank Database, FAOSTAT and the Annual Reports of the Central Banks of the selected countries.&nbsp; &nbsp; The empirical estimates revealed that higher savings rate produce greater agricultural credit on the continent. Although, savings rate are generally low in Africa, the impact of savings on agricultural credit is still large. All four governance variables- Corruption index, Rule of Law index, Regulatory quality index, and Government Effectiveness index- included in the model produces negative impact on agricultural credit in the continent. Interest rates charged by the various financial institutions, especially commercial banks, have been prohibitively high. Limited availability of farm land is another potential factor that determines the magnitude of agricultural credit on the continent. Land available for agriculture has positive significant impact on agricultural credit in Africa. Overall governance issues are crucial to addressing the challenges of low and dwindling agricultural credit in Africa. The results of the study have important policy implications. First, agricultural banks on the continent (in countries where there is one) should ensure a reduction in lending rate to guarantee better access to credit but also to dilute the pool of creditors they face. Formation of Cooperative Societies, Thrift and Credit societies among the farmers in the continents should be encourages in order solve the problem of credit denial by banks on the account of collateral securities. Institutions should be strengthened to enhance reduction in corruption and enforce accountability across the continent. Efforts towards poverty reduction and implementation of the MDG policy should be intensified. Provision of agriculture based infrastructural facilities like good roads, tractors and others will complement and enhance judicious use of agricultural credit in Africa.Read more
September 2013 - Implementation Update: Action Plan to Improve Statistics for Food Security, Sustainable Agriculture and Rural Development in Africa
24/09/2013 07:58
September 2013 - Implementation Update: Action Plan to Improve Statistics for Food Security, Sustainable Agriculture and Rural Development in Africa
Sénégal - 2013 - Profil pays - Un aperçu des interventions du Groupe de la BAD
18/09/2013 13:37
Sénégal - 2013 - Profil pays - Un aperçu des interventions du Groupe de la BAD
Compendium of Statistics on Bank Group Operations 2013
03/05/2013 09:42
Compendium of Statistics on Bank Group Operations 2013
Working Paper 163 - Food Prices and Inflation in Tanzania
26/12/2012 18:53
Working Paper 163 - Food Prices and Inflation in Tanzania
This paper presents an econometric model of headline Tanzanian inflation and its principal components for the period since 2000.&nbsp; Inflation is modeled in terms of deviations from a set of ‘anchors’ reflecting long-run demand-side and monetary determinants, on the one hand, and supply-side and open economy factors on the other.&nbsp; Five main conclusions derive from our analysis. In the last five years Tanzania, along with the other major economies of East Africa, has experienced a period of high and volatile inflation.&nbsp; In mid-2008, year-on-year headline inflation edged above 10 percent per annum for the first time since the early 1990s, and while it dropped back to low single digits in 2009 it rose again sharply towards the end of 2010, reaching close to 20 percent per annum in the final quarter of 2011. Much of this rise in inflation and inflation volatility reflects developments in the global economy, most obviously the sharp rises in global food and fuels prices in 2008 and again in 2011. With food accounting for 51% of the consumption basket in Tanzania and energy and transport costs accounting for a further 9 percent each, these global developments may be expected to have a powerful impact on overall inflation, both directly and, in the case of energy prices, indirectly through the high share of transport and distribution costs in retail prices. First, money growth and hence the stance of monetary policy matters for inflation both in the long run and in the short run.&nbsp; The transmission from the monetary stance, through aggregate demand, to headline inflation is principally through core inflation but not exclusively so; monetary or demand-side effects also feed food and fuel price inflation, particularly in the short run.&nbsp; Second, however, the principal component of overall inflation -- food price inflation -- is predominantly driven by supply-side factors including both domestic agricultural output shocks and by the pass-through from world prices for food and fuel.&nbsp; The inflation transmission from world food prices is, however, relatively weak and attenuated, and is much stronger when world prices rise than when they fall.&nbsp; This is consistent with an environment in which retailers and distributions enjoy significant market power and are able to pass on price rises to consumers but to cushion their own margins when world prices fall. Third, the effect of domestic supply conditions on food price inflation points to the asymmetric effects of trade policy in Tanzania; while food imports appear to respond reasonably rapidly to domestic production short-falls, the capacity to export surplus food production is much more muted so that market adjustment in this case occurs through falling prices, other things equal.&nbsp; This result has important implications for trade policy and production incentives in agriculture although, as noted below, a much closer analysis of cross-border prices is required before firm policy conclusions can be drawn. Fourth, headline inflation exhibits strong seasonality, consistent with weak price-stabilizing effects of trade and incomplete storage.&nbsp; Non-food inflation is, by contrast, broadly non-seasonal.&nbsp; Finally, prices in Tanzania in general are flexible, more so for the food and energy sub-components but even in the traditionally sticky-price domain of core inflation there is little evidence of inflation persistence overall.&nbsp; Some channels of price adjustment are take time – notably the effects of monetary disequilibrium -- but in general inflationary shocks dissipate rapidly with half-live being little more than one month. The analysis points to three priority areas for further research.&nbsp; First, a better understanding of the supply-side (cost-push) determinants of core inflation is required.&nbsp; Second, and related, the role of movements in the nominal exchange rate remains poorly understood.&nbsp; Once the effects operating through the pass-through from world food and fuel prices – and the role it plays in determining the equilibrium demand for money – there appears to be only a surprisingly weak independent short-run role for the nominal exchange on any of the principal components of inflation.&nbsp; Finally, the concept of ‘world food prices’ used throughout this analysis needs to be revisited to reflect the impact of cross-border food prices, particularly in Kenya to the North and Zambia and Malawi in the South West of the country. At present, our models include measures of the deviation of domestic food and fuel prices from world price indices derived from the World Bank global commodities database.Read more
Economic Brief - Towards Sustaining Malawi's Farm Input Subsidy Program
24/05/2012 08:43
Economic Brief - Towards Sustaining Malawi's Farm Input Subsidy Program
Economic Brief - Distortions to Agricultural Policy Incentives in Tunisia: A Preliminary Analysis
12/04/2012 11:19
Economic Brief - Distortions to Agricultural Policy Incentives in Tunisia: A Preliminary Analysis
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