At an extraordinary shareholders’ meeting on Friday November 1, in Abidjan, Governors of the African Development Bank (AfDB), representing shareholders from 80 countries, approved a landmark USD 115 billion increase in capital for the continent’s foremost financial institution.
“The capital increase, the largest in the history of the African Development Bank since its establishment in 1964 is a remarkable show of confidence by shareholders” according to a statement from AfDB.
With the approved increase, the capital of the Bank will more than double from USD 93 billion to USD 208 billion.
The statement further said that the boost in capital ensures that the Bank will continue to maintain a sterling AAA rating, all stable, from the top rating agencies.
The African Development Bank launched discussions on the request for a general capital increase two years ago, to help fast track the delivery of its High 5 development strategies, the sustainable development goals and the Africa Union’s Agenda 2063.
Speaking at the opening ceremony, the President of Ivory Coast, Alassane Ouattara said “the integration of the continent’s priorities into the High 5s indicates that the African Development Bank group is a strategic partner for African governments.”
In the past four years, the Bank’s High 5 priorities have delivered impressive results on the ground, including helping to connect 16 million people to electricity, 70 million people provided with agricultural technologies to boost food security; 9 million people given access to finance through private sector investee companies; 55 million people provided improved access to transport services; and 31 million people with access to water and sanitation.
According to African Development Bank President, Akinwumi Adesina “We have achieved a lot, yet there is still a long way to go. Our responsibility is to very quickly help improve the quality of life for the people of Africa. This general capital increase represents a very strong commitment of all our shareholders to see better quality projects that will significantly have an impact on the lives of the people in Africa – in cities, in rural communities, and for millions of youth and women.”
With the new general capital increase, the Bank plans to do more, with the following expected results: 105 million people to have access to new or improved electricity connections; 244 million people to benefit from improvements in agriculture; 15 million people to benefit from investee projects; 252 million people to benefit from improved access to transport; and 128 million people to benefit from improved access to water and sanitation.
Adesina noted that “the Bank will continue its leadership role on infrastructure development, strengthening regional integration, helping to realize the ambitions of the African Continental Free Trade Area, supporting fragile states to build resilience, ensuring sustainable debt management, addressing climate change and boosting private sector investments. We will do a lot more. This is a historic moment.”
African Development Bank shareholders approve $115 billion capital increase
Arrests take place after recent unrest
Four hundred and nine people have been arrested in connection with violence which took the lives of 78 people last week largely in the Oromia region. Although not limited to these cities, places like Dire Dawa and Harrar saw massive property damage and civilian casualties after a Facebook post by Jawar Mohammed concerning removal of his security team.
The Prime Minister’s Press Secretary, Nigussu Tilahun, said there would have been more fatalities if some social groups hand not worked to calm the situation down.
Many of the attacks were based on ethnic and religious identity. Nigussu said the government acted immediately to control the situation.
Anarchy was observed in the violations, according to Nigussu. He said it may seem the government does not have the capacity to control problems. “The government has the capacity but instead prefers to be tolerant instead of prosecuting people like was done in previous times.” We have observed attempts to create disparity between groups of people. This problem is best solved by using wisdom by including elders, religious leaders and influential social groups.
The Press Secretary criticized the involvement of non patricians in the ruling coalition agenda. “The coalition issue is an internal issue and no one can give guidance for its strategy and operation,” he added. The coalition that has four ethnic based parties is working to create a single party by including five regional based ethnic parties that were considered supporters of the ruling collation, EPRDF.
The formation of single party has been a long term goal and the Mekele EPRDF congress agreed to undertake study stressing that the Hawassa congress that held after the assignment of Abiy Ahmed as chair of the coalition.
Conference focuses on health, science
The 15th Grand Challenges Annual Meeting, jointly hosted by the African Union, Ethiopia’s Ministry of Health, the African Academy of Sciences, Grand Challenges Canada, the United States Agency for International Development, Welcome and the Bill & Melinda Gates Foundation Meeting was held in Addis Ababa, Ethiopia, from October 27– 30, 2019.
The Grand Challenges Annual Meeting is a convening of over 1,000 key leaders from across the global community to share best practices, encourage collaboration and seek solutions for common challenges. It aims to build momentum for global health and development innovation and foster scientific collaboration among international groups and researchers.
The sessions placed an emphasis on the importance of scientific collaborations in improving lives and creating sustainable economic growth and provide an opportunity to put science and innovation at the top of domestic agendas and secure the political and financial commitments needed to give everyone a chance at a healthy, productive life.
The Grand Challenges family of initiatives seeks to engage innovators from around the world to solve science, technology and innovation, health and developmental challenges. Grand Challenges initiatives are united by their focus on fostering innovation, directing research to where it will have the most impact, and serving those most in need.
AU representative Albert Muchanga, applauded key stake holders for their efforts towards modernizing the African health system through research, science, innovation and technology.
The meeting in Addis created opportunities for participants to attend diverse scientific tracks with the focus ranging from the African research and developmental ecosystem to leveraging pathogen Genetic sequencing in Africa to agriculture pest and dieses surveillance and epidemiology as well as three plenary meeting featuring African heads of states, global scientific and research leaders and researchers across the continent.
The Grand challenge meeting back to Africa for the first time in 10 years – following meetings in Tanzania (2009) and South Africa (2007).
The meeting focuses on ways to to go faster together, as the 2030 Sustainable Development Goals (SDG) deadline just over a decade away and finding ways to work together more efficiently to accelerate progress on key priorities.
Across the African continent, a strong, integrated research and development ecosystem will be crucial to unlocking the solutions needed to meet SDG targets and tackling the continent’s biggest health and development challenges, ultimately improving the lives of more than a billion people on the fastest growing continent panelists stressed adding that the enormous potential in the African scientific community, with established leaders and talented young researchers across the continent focused on developing innovative solutions to save and improve lives.
Logistics professionals gather to improve sector
A logistics conference organized by the Ethiopian Logistics Community of Practice (ELCoP), Ethiopian Freight Forwarders and Shipping Agents Association (EFFSAA), Ethiopian Maritime Affairs Authority (EMAA), WFP, and Ethiopian Logistics and Supply Chain Management Professionals Association, gathered stakeholders from Ethiopia, Djibouti and around the globe.
Papers were presented evaluating the current logistics situation mostly in Djibouti. One entitled: ‘city logistics and its performance challenges’ compared Addis Ababa with other cities’ logistical experiences.
After the paper presentation, participants divided into three groups to explore: how to improve railway systems, challenges in import, export and city logistics.
Mekonnen Abera, Director General at EMAA, told Capital that these types of events are crucial to look at a wide variety of views. According to Mekonnen, they want to get as much feedback as possible to improve logistics. 
The logistics guru said concerns arising at the conference will be sorted and tabled at the council established to guide the logistics sector. Under the recommendation of national logistics strategy, the country also formed the Logistics Transformation Office, which organizes the sector.
“This is the first conference for ELCoP that mainly targets to meet stakeholders at the same platform,” Elizabeth Getahun, President of ELCoP and EFFSAA, told Capital.
She said this is the way to solve problems. “ELCoP was formed last year with the aim of solving issues faced by many in the logistics sector. The conference has given a chance to gather challenges which will then be incorporated into the logistics strategy and solved,” Elizabeth added.
Ethiopia is one of the least performing countries in the logistics sector with a rank of 131 from 160 counties according to the World Bank Logistics Ranking.
The poor performance in the logistics sector is also one of the factors in the country’s poor ranking in doing business.
About a year ago, the country decided to open up the sector to foreign investors. Previously, the logistics sector was only allowed for Ethiopians or the diaspora. The government now permits foreign investors to hold up to 49 percent in the logistics business. Now companies like CMA CGM and Bollore Logistics, two dominant players in the logistics sector have signed deals with local firms to operate in the country.
Mekonnen said that opening up the sector in the process has been tabled in the national logistics strategy that concluded in 2015, but it was not applied. “Opening the sector in different stages and process may give a chance for the country to improve its performance and learn from other’s experiences,” he told Capital.
He said that foreign companies are expanding or starting business in the country.
