Annual Development Effectiveness Reviews 2017
Each year, the Annual Development Effectiveness Review (ADER) provides an update of Africa’s progress against its development goals, and assesses the contribution made by the African Development Bank (AfDB, or the Bank) to that progress. The ADER serves an important management function for the Bank, helping us to identify where we are performing well and where we need to do better. It also provides our stakeholders and partners with a better understanding of our objectives, our portfolio, and our performance against our targets.
In this ADER, the central theme is “feeding Africa through agricultural transformation” – a critical objective for achieving economic prosperity and job creation and for eliminating poverty and hunger. The ADER also assesses the Bank’s progress on the other four High 5s and on our cross-cutting priorities of governance, fragility, gender and climate change, highlighting their interlinkages and their contribution to our Feed Africa objectives.
This year, the ADER analysis is based on a new Results Measurement Framework, prepared to help the Bank sharpen its strategic focus and accelerate the pace of internal reforms. The framework is structured around the Bank’s “High 5s”—the five priority areas for achieving our Bank Strategy 2013–2022: Feed Africa, Light up and power Africa, Industrialise Africa, Integrate Africa, Improve the quality of life for the people of Africa, and examines cross-cutting and strategic areas. It also reflects our new Development and Business Delivery Model, which is designed to maximise development impact and value for money.
Chapter 1: Feed Africa
Agriculture is the cornerstone of Africa’s transformation. Eliminating poverty and hunger and creating prosperity depend crucially on the transformation of Africa’s agriculture sector, on which so many people depend for their food and livelihoods. Modernising and developing the agriculture sector will establish a foundation for achieving many of the Sustainable Development Goals.
Our interventions in agriculture over the last year have benefitted 5.6 million people. We met our target in assisting 597 900 people to increase their use of technology. For example, in Nigeria, we trained 733 people and provided irrigation pumps and agro-processing equipment. We built or rehabilitated 520 km of feeder roads, provided farmers with access to 2300 tonnes of inputs and delivered increased access to finance. We supported improved water management on 37 600 hectares. In Gambia, we improved land and water management practices for over 68 400 people, significantly reducing soil erosion, controlling salinity and increasing rice yields above our target. We also increased the yields of a wide range of crops through our assistance to agricultural research networks, training around 17 000 research and extension staff and benefiting an estimated 698 000 farmers.
Chapter 2: Light up and power Africa
Scaling up energy capacity, a key condition for sustainable development, is one of the most urgent challenges Africa faces today. Reliable and affordable energy enables industries and small businesses to compete and trade in regional and global markets. This promotes economic growth and creates jobs and livelihoods, so that people can lift themselves out of poverty. Increasing access to energy to meet the higher energy demand brought about by rapid economic growth will transform the lives of millions of people, ensuring that African countries make real and timely progress toward the UN Sustainable Development Goals.
Projects under the New Deal include our $1.34 billion syndicate loan in South Africa, as well as projects building transmission lines to connect 20 000 households to Côte d’Ivoire’s national grid and providing electricity to 36 Ethiopian towns and villages. We also manage the Africa Renewable Energy Initiative, launched at the 2015 Paris climate change conference, which will deliver over 300 GW of renewable energy capacity by 2030.
Last year, the Bank’s energy portfolio exceeded the previous year’s results but fell short of our higher targets. We installed 540 MW of total power capacity and 41 MW of renewable power capacity. We delivered 2830 km of new or improved power and distribution lines and provided 653 100 households with new or improved electricity connections. Our investments reduced carbon dioxide emissions by the equivalent of 69 000 tonnes per year
Chapter 3: Industrialise Africa
A dynamic industrial sector is a critical engine of inclusive growth and economic transformation. Industrial development has the potential to create the jobs required for large-scale poverty reduction and also to generate valuable export revenues for African economies. To sustain growth, Africa is diversifying its economies by adding value to its primary commodities.
Over the last year, the Bank’s industrialization-related projects benefitted 2.22 million people. We provided better access to transport services to 7 million people and constructed, rehabilitated or repaired 2200 km of road. Financial services were provided to 156 000 individuals and small- and medium-sized businesses, helping to improve their turnover from investments. In Zambia, we worked with partners to strengthen the capacity of small businesses and improve their access to finance from national financial institutions. In West Africa, we supported the cotton and textile sectors in four countries and expanded the textile industry.
Chapter 4: Integrate Africa
Greater integration of African economies is essential to economic growth and development that benefits most people across the continent. Regional infrastructure services and easier cross-border travel and trade create wider, more competitive markets that help businesses thrive and consumers access the goods they need. For agriculture, economic integration creates important opportunities for producers, agro-industries, traders and consumers.
Last year, the Bank constructed or rehabilitated 540 km of cross-border roads. We rehabilitated the Lome-Ouagadougou corridor and built a new container terminal at the Lome port, increasing trade, business activity and jobs. We constructed or rehabilitated cross-border power transmission lines. We provided eight grants for preparing bankable regional infrastructural projects, and already one of these projects—a major power interconnector project involving Nigeria, Niger, Benin and Burkina Faso—has received financial pledges to cover its full cost of $682 million. We also financed studies and convened workshops to develop consensus on future regional development needs
Chapter 5: Improve the quality of life for the people of Africa
The ultimate objective of all of our development assistance is to improve the quality of life for Africans. Quality of life has many components, and each of our High 5s contributes in different ways – whether through improvements in incomes and livelihoods; through quality public services such as health, education, water and sanitation; or by promoting environmental sustainability.
In 2016, the Bank created jobs and provided social services to improve the quality of life of Africans. We directly delivered 1.6 million jobs and trained 652 000 people, both women and men. In rural Malawi, we provided grants to small- and medium-sized agribusinesses, creating 948 skilled and 2110 unskilled jobs. Our projects in Côte d’Ivoire, Tanzania and Uganda provided access to finance and business advice. We provided new or improved access to water and sanitation to over 3.73 million people, a major accomplishment in this area. In Tanzania and Zimbabwe, we delivered irrigation for over 700 farms, and our support to the Southern African Development Community involved 23 community water-basin management projects, which increased access to irrigation. Our education projects benefitted 477 200 people, of whom 269 600 were women.
Chapter 6: Cross-cutting and strategic areas
The five previous chapters reviewed the Bank’s High 5 priority areas and their links to agricultural transformation. We turn now to a number of cross-cutting and strategic issues running across the Bank’s portfolio integral to Africa’s achievement of the Sustainable Development Goals. —the areas of governance and institution-building, fragility, climate change and gender—that are integral to Africa’s achievement of the Sustainable Development Goals.
Realising the High 5s calls for a profound transformation of African economies and societies. While delivering on these priorities, we strengthen the resilience of institutions, support gender equality on the continent and provide decisive interventions to encourage adaptation in the face of climate change. Our operations targeting cross-cutting issues are at the core of bringing better and inclusive growth, and helping countries transition toward green growth.
Chapter 7: Improving our development impact and efficiency
In this chapter we examine how well we manage our portfolio of projects across Africa to deliver sustainable development impact, and how efficient we are as a development finance institution in implementing our new Development Business and Delivery Model.
Overall, the Bank is making great strides in delivering on its new Development and Business Delivery Model. We are moving our staff closer to our clients, making us better placed to deliver on the High 5s. This involved effectively reorganising our organisational structure enabling staff to work across boundaries. More efficient processes and systems are leading the Bank to its highest disbursement rates and the completion of successful projects. With this, we expect to achieve greater value for money, better respond to our clients’ needs and deliver lasting development outcomes