The Board of Directors of the African Development Bank Group (www.AfDB.org) has approved a grant funding of $8.6 million to South Sudan to advance the second phase of the Non-Oil Revenue Mobilization and Accountability Project (NORMA II).

The African Development Fund (ADF), the Bank Group’s concessional window, will provide $6.62 million, while $1.98 million will come from the ADF’s Transition Support Facility.

Themba Bhebhe, the Bank’s Country Manager for South Sudan, said NORMA II will enhance the capacity of South Sudan’s National Revenue Authority (SSRA) to boost non-oil revenue mobilization and accountability. This phase complements the ongoing Bank-supported NORMA I project and the Institutional Support Project for Strengthening Economic Governance in South Sudan. The two initiatives seek to address inefficiencies in broader public finance management, including budget framework, public sector spending efficiency, financial controls, reporting and accountability. Both projects are supported by ADF resources.

Key interventions of the NORMA II include developing the SSRA’s IT systems to improve revenue administration, tax collection, promoting tax compliance, and enhancing tax audits and investigations, among them studies of taxpayer perceptions. The project also aims to expand the implementation of existing tax policies while exploring new areas to broaden the tax base, particularly value-added tax, hotel tax, and property tax. It will also consolidate training for project personnel from the first phase.

The project is expected to procure IT equipment for the tax authorities, whereas officials will receive technical assistance and on-the-job support from embedded advisors. They will also benefit from capacity building at the local and regional levels. South Sudan’s National Revenue Authority and the Ministry of Finance and Planning will also receive technical assistance to improve their ability to mobilize non-oil revenue and acquire equipment for internal training.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media contact:
Alexis Adélé
Communication and External Relations Department
media@afdb.org

About the African Development Bank Group:
The African Development Bank Group (AfDB) is the premier multilateral financing institution dedicated to Africa’s development. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NSF). The AfDB has a field presence in 41 African countries, with an external office in Japan, and contributes to the economic development and social progress of its 54 regional member states. For more information: www.AfDB.org

African Export-Import Bank (Afreximbank) (www.Afreximbank.com) today launched its African Trade Report 2024 and African Trade and Economic Outlook Report 2024 at the Afreximbank Annual Meetings (AAM) 2024 in Nassau, The Bahamas.

The latter report forecasts that African economies will grow on average by 3.8% in 2024 – slightly ahead of predicted global growth of 3.2% – prior to increasing by 4% in 2025. The Report, titled ‘A Resilient Africa: Delivering Growth in a Turbulent World,’ provides an analysis of the economic environment, trade patterns, debt scenarios, and future projections for African economies.

Dr. Yemi Kale, Afreximbank’s Group Chief Economist and Managing Director of Research and International Cooperation, said ongoing global challenges undermined the performance of Africa’s trade, which contracted by 6.3% in 2023 after expanding by 15.9% in 2022, while intra-African trade expanded by 3.2% over the same period.

The Chief Economist said: “This performance is reflective of the resilience of the African economy and the potential impact of the African Continental Free Trade Area’s (AfCFTA) single market for the continent as a tool to protect them from global shocks,” adding, “Our analysis in the report also revealed large untapped potential in intra-African trade, especially with respect to machinery, electricity, motor vehicles, and food products.”

The report also revealed that African economies face several downside risks, including increasing levels of sovereign debt and associated sustainability risks, excessive exposure to adverse terms-of-trade shocks, escalating geopolitical tensions in some cases, volatile domestic political environments in certain African countries, high commodity prices and inflationary pressures, and potential food insecurity.

The outlook for the African Continent in 2024 remains positive despite the challenging economic environment of 2023. Most macroeconomic indicators are expected to improve in 2024 and 2025. Growth in the Continent is projected to be higher than the global average, and although inflation is currently high, it is expected to decrease, with this downward trend continuing into 2025.

In the African Trade Report 2024, titled “Climate Implications of the AfCFTA Implementation,” the Chief Economist stated that the report concludes that the AfCFTA offers a path to achieving the developmental goals of African nations while also addressing climate change concerns.

Dr. Kale indicated that while the benefits of the AfCFTA can be seen, the debate on its impact on climate change is still ongoing. He said: “One group believes that increased urbanisation and industrialisation associated with the AfCFTA will worsen carbon emissions, and the second group believes that by emphasising intra-African trade and reducing extra-African trade, carbon emissions will be eliminated through shorter shipping distances.”

Overall, the report states that optimising the AfCFTA can result in potential gains through increased intra-African trade and investment, creating economic prosperity and fulfilling the vision of the founding fathers.

Distributed by APO Group on behalf of Afreximbank.

Media Contact:
Vincent Musumba
Manager, Communications and Events (Media Relations)
Email: press@afreximbank.com

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About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance, facilitate and promote intra and extra-African trade. For over 30 years, the Bank has been deploying innovative instruments to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the AfCFTA, Afreximbank has in partnership with the African Union Commission and AFCFTA Secretariat launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the Free Trade Agreement. The AFCFTA Secretariat and the Bank have created a USD 10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA.

At the end of December 2023, Afreximbank’s total assets and guarantees stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”). The Bank is headquartered in Cairo, Egypt. For more information, visit: www.Afreximbank.com

The African Development Bank Group (www.AfDB.org) has launched a series of training programmes to support 22 Transition or fragile states in Africa to manage their debt more effectively.

The Public Finance Management Academy for Africa (PFMA), an initiative of the Bank Group’s African Development Institute, kicked off the maiden edition of the PFMA Spotlight on Public Debt Management in Transition States – a two-day policy dialogue on sustainable debt management tailored to the needs of Africa’s 22 most vulnerable countries in Addis Ababa on Tuesday.

The programme will help countries build their institutional capacity to better manage debt and achieve the financial resilience needed for development.

The series brings together heads of debt management offices, treasurers and accountants general, heads of revenue authorities, representatives of central banks, supreme audit institutions, anti-corruption agencies, civil society organisations, academia, the private sector, lawmakers, and other relevant stakeholders in transition states.

Ethiopia’s Minister of State for Finance and Economic Cooperation, Semereta Sewasew, said that while there have been positive strides in debt management on the continent, debt challenges, and vulnerabilities persist, especially in most transition countries.

These countries face a wide range of political, economic, security and environmental challenges, she noted. “I am pleased that the African Development Bank has designed this training programme to help develop and strengthen the capacity of these countries to manage their debt more prudently, to make their debt more productive, and restore resilience, stability, and growth to their economies.”

Sewasew told participants that the Government of Ethiopia had made substantial progress in improving the country’s economy, particularly in addressing debt challenges. She commended the African Development Bank as a steadfast partner in this process.

“Our government will continue to work with the African Development Bank and support its programmes not only for Ethiopia but for the entire continent, especially in improving debt management, transparency, and sustainability,” Sewasew said.

Public debt vulnerability remains a persistent challenge for Africa. According to the IMF, of 54 African countries, 38 low-income countries were classified as being either in debt distress, with high debt distress, or with moderate debt distress. Of these 38, 23 are transition states.

Mounting debt is compounded in transition states by fragility, the absence or shallowness of domestic debt markets, and weak institutional capacity for governance, public finance, and debt management.

The African Development Bank’s Deputy Director General for East Africa and Director General designate for Nigeria, Abdul Kamara, said the training was part of the implementation of the Bank’s Special Project – Strengthening the Capacity of Transition States for Effective Management and Mitigation of Debt Distress Risks. The project is being implemented from April 2023 to March 2026, for 22 transition countries in Africa under the Bank’s Transition Support Facility.

“We believe that together we can do even more for our countries,” Kamara said. “We expect that at the end of these two days, participants will have, among other things, an understanding of best-practice solutions tailored to their particular debt management circumstances.”

Director of the African Development Institute, Eric Ogunleye, said: “African transition countries should not be mere loan takers  – they are disadvantaged. Hence, they need to be empowered to contract, negotiate and use loans to improve the quality of life of their citizens.”

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Photos (https://apo-opa.co/4bY1LXo)
Minister of State Sewasew’s remarks (https://apo-opa.co/4bVAIM9)

Media Contact: 
Emeka Anuforo
Communication and External Relations Department
media@afdb.org

About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org  

The African Development Bank Group (www.AfDB.org) and the government of Ethiopia, in partnership with the Netherlands, fertilizer company OCP-Africa, and the Global Center on Adaptation (GCA), have launched an ambitious project to transform Ethiopia from a wheat importer to a self-sufficient producer and exporter.

The total cost of the Climate Resilient Wheat Value Chain Development (CREW) Project is $94 million. The African Development Fund (ADF), the concessional arm of the African Development Bank Group, is providing a grant of $54 million. The Netherlands will contribute a grant of $20 million, while OCP-Africa and the Government of Ethiopia will each provide grants of $10 million. Additionally, the Global Center on Adaptation (GCA) will extend a grant of $300,000 for the project as part of the Africa Adaptation Acceleration Program (https://apo-opa.co/4b8Oo5y) initiative (AAAP). AAAP is integrating climate risk assessment and digital adaptation solutions into the wheat value chain, supporting capacity building through deployment of digital climate advisory services (DCAS),  and co-designing digital adaptation solutions in a wheat farmer registration system.

The financing will support 500,000 smallholder farmer households in the Ethiopian states of Afar, Amhara, Oromia, and Somali, to increase wheat productivity from three  to four tons per hectare, generating an additional 1.62 million tons of wheat. The project will also support expansion of irrigation into the lowlands of Afar and Somali regions. It is expected to benefit 2.3 million people, 50 percent of them women, by increasing household incomes, creating jobs and entrepreneurship opportunities, and strengthening food and nutrition security.

The CREW project has two main components. The first focuses on improving wheat farming using climate-friendly methods through the development of better seeds, improving soil health, rehabilitating and building irrigation systems and access roads, and enhancing private sector-led sustainable farm mechanisation.

The second component entails the expansion of post-harvest and market infrastructure and enabling access to agri-finance through innovative mechanisms.

The launch took place in Semera, Afar Regional State in May. The country’s Minister of Agriculture, Dr Girma Amente, officially launched the project. In his statement, he emphasised the importance of agriculture for the Ethiopian economy; the sector contributes over one-third of GDP and employs 65 percent of the population. He stressed that wheat is a priority crop in the Government’s Agricultural Development Plan, and noted that “the CREW project is aligned with over 80 percent of the objectives of Ethiopia’s Ten-Year Development Plan, the overarching development agenda for the country,” he said.

The President of Afar Regional State, Mr Awol Arba was also present. He welcomed the project, which he said has great potential for irrigated wheat development in his state.

The Bank Group’s Deputy Director General for East Africa, Dr Abdul Kamara, who also attended, said: “The CREW project will complement the Bank’s current investments of about $1.2 billion in Ethiopia, across the key sectors of energy, transport, agriculture, water and sanitation, and economic governance. It is designed to scale up and sustain the impressive results of the Wheat Revolution in Ethiopia. Following the successful and nationwide deployment of heat-tolerant wheat varieties, irrigated wheat areas rapidly expanded, and wheat yields increased on average from two to four tons per hectare. The Bank is proud to be a leading financier in these critical areas seeking to accelerate Ethiopia’s economic transformation and development.”

Mr Tiest Soondal, Deputy Head of Cooperation at the Netherlands Embassy in Ethiopia, said: “The Kingdom of the Netherlands is the largest EU investor in Ethiopia and is committed to addressing the nexus of humanitarian, development, and food security goals. The CREW project is designed to address these objectives.”

 “OCP Africa support for this project will address, among others, the salinity and acidity issues affecting tens of millions of hectares,” said OCP-Africa CEO Dr Mohamed Anouar Jamali. “This includes developing site-specific soil health and fertility solutions based on comprehensive assessments of soil, climate, and cropping systems to provide science-based recommendations, and conducting a comprehensive programme of capacity building and farmer training in best agricultural practices, based on the principles underlying 4R+ and Integrated Soil Fertility Management.”

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media contact: 
Olufemi Terry
Communication and External Relations Department
media@afdb.org

About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). With offices in 29 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 53 regional member states.

For more information: www.AfDB.org