AfDB plays a key role in donor coordination in Mali
The African Development Bank (AfDB) has been engaged in Mali for nearly 40 years with an active portfolio amounting to 100 billion CFA francs.
At the Brussels conference on Mali’s reconstitution in May 2013, the AfDB made a commitment of 240 million euros for 2013-2014. By the end of the year 2013 the Institution would have disbursed 50% of this amount.
Within the implementation framework of the Paris Declaration, the AfDB is playing a vital role in aid coordination in this country. The Institution led the Group of technical and financial partners in Mali in 2011, and was member of the Troika from 2010-2012.
Presently, the Bank is the leader of the Economy and Finance Group and at the forefront of political dialogue with the government on macro-economic management, improving public finances and most of all the Joint Budgetary Review, the keynote of discussions on budgetary aid to Mali.
The AfDB is equally, co-leader of the « Infrastructure » Group made up of the energy, transport and urban development sub-groups. It is leader of the energy group, conferring to the AfDB a aramount role given the energy situation in Mali. The government’s keen interest, as well as that of the other technical and financial partners, make the AfDB a key player in the sector.
The Institution is an active member of the new Post Conflict Rehabilitation Zones Group. The role of the latter is to see orderly transectoral interventions in post-conflict areas and the definition of strategic and operational orientations. The AfDB is a member of the agricultural economy and rural development group given its position as the leading player in the sector. Finally, the Bank is leader of the Private Sector sub-group and involved in giving fresh impetus to the private sector, the engine for economic growth.
AfDB strategy and portfolio :
For the sake of flexibility and performance, the AfDB adopted a support strategy to transitional management in 2013. The two major areas of intervention are: (i) reducing the effects of the crisis and strengthening the resilience of the most vulnerable populations, and (ii) consolidating the groundwork for the stability of a State of Law and thus lay the fundaments for economy recovery. Although time-bound, this strategy is in line with Mali’s national development policies, especially with regard to the Strategic Framework for Growth and Poverty Reduction (SFGPR 2012-2017) and the Sustainable Reconstruction Plan for Mali (SRP 2013-2014). The Bank has also re-structured its portfolio, adapting it to socio-political and economic changes for greater impact on the country’s development.
To date, AfDB active portfolio in Mali comprises eleven (11) operations for a total amount of UA 136.05 million (102 billion CFAF). The portfolio is divided into five sectors : i) four projects in support to rural development (UA 74.32 million or 54.6% of the portfolio), ii) two projects for water and sanitation UA (33.11 million or 24.2% of the portfolio), iii) two social sector projects (UA15.65 million or 11.5% of the portfolio), iv) one transport sector project (UA 12 million or 9% of the portfolio), and v) two energy sector projects( UA 0.96 million or 0.7% of the portfolio).
It should be noted that some rural development projects concern the infrastructure and energy sectors, thus contributing to the opening up of rural areas and providing them with electricity, as is the case with the Bani Basin and Selingué Irrigation Development Program.
The AfDB has approved four other projects awaiting implementation and they are : i) a line of credit amounting to UA 4.8 million (or 3.6 billion CFA loan) granted to the «Banque Malienne de Solidarité» (BMS), ii) the Emergency Support Program to Economic Recovery (UA40 million or 30 billion CFAF) disbursement is underway, the Economic Management Support Project ( UA10 million or 7.5 billion CFAF exclusively in grants) approved in July pending signature, and the Bamako drinking water supply project through the Kabala pumping station (UA 50 million or 37.3 billion CFAF) approved in October 2013 ( a leading project, the Bank is group leader with a consortium of about 10 Economic and Finance Groups).
In due course, the AfDB will be approving the Food Security Strengthening for Irrigated Agriculture Development Project (PRESA/DCI). This project will help consolidate the achievements of these operations, increase production and agricultural productivity in new locations.
The AfDB is the lead donor in the agricultural sector in Mali. It is present in this sector since the 1970s and has approved funding for about forty projects for a total amount of UA 366.56 million. These projects have helped to increase food security, boost local economy, strengthen the populations’ resilience and provide security to agricultural products in the face of climatic hazards.
Presently, AfDB portfolio in this sector comprises 4 operations two of which are multinational and the other two are national projects. Two projects concern the livestock sub-sector and the other two the agriculture sub sector. The total amount of commitments in the agriculture sector stands at UA 74.32 million or about 55.75 billion CFAF. The growth rate in the primary sector was 8.6% in 2012 as against -1.3% in 2011. Agriculture (13.9%) was the mainstay of this growth.
Collaboration perspectives in this sector concern the following operations: i) the food security project through irrigated agriculture development (PRESA-DCI) ; ii) resilience and strengthening of food and nutritional security in the Sahel (P2RS) ; iii) Proposition GAFSP : Mali’s proposal to the Global Agriculture and Food Security Program (GAFSP). GAFSP fund, prepared with the support of the AfDB, was accepted by the pilot committee of the GAFSP at its last sitting in September 2013.
Thus GAFSP has provided Mali with a grant of 37.21 million USD for the implementation of a food and nutritional security project. Prospects at the identification phase concern: i) support to the agriculture sector in the northern regions of the country - as a back drop the Douentza rural development project which studies were funded by the AfDB - and the support project to livestock and fisheries infrastructure.
Growth rates in the primary sector stood at 5.8% in 2012 and 5.3% in 2013. Growth in this sector will be supported mainly by rice and cotton in 2013. The sectors of rice and cotton should continue to receive support from the government through subsidized inputs, reorganization and upgrading of agricultural mechanization.