AFRICAN COMPETITIVENESS:A FOCUS ON INFRASTRUCTURE

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AFRICAN COMPETITIVENESSA FOCUS ON INFRASTRUCTURE

• AFRICAN DEVELOPMENT BANK
• SYMPOSIUM ON MONITORING AND EVALUATION
• IDENTIFYING INDICATORS FOR MONITORING
• AID FOR TRADE
• September 15-16, WTO, Geneva

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Outline

• Introduction
• ACR-Pillars
• Infrastructure Situation in Africa
• Infrastructure in AfDB Interventions
• The Monitoring Agenda
• Other Areas of Focus in Future

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Introduction

• Africa is experiencing renewed optimism due to a
  much better
• regional economic climate despite recent
  challenges such as high food and oil prices.
• But question remain as to how sustainable this
  growth will be over the longer run?
• One of the key messages is that African
  countries must become more competitive.

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Africa Competitiveness Report (ACR) -The Nine
Pillars
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Pillar on infrastructure

• ? Major focus of Bank Quality of
  infrastructure connectivity
• ? Why infrastructure investment?
• Facilitates regional integration
• Enables intra-regional trade
• Connects regions to global markets
• Attracts private sector investment

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Infrastructure Situation in Africa

• Infrastructure remains one of the top business
  constraints in the region 30 of overall cost in
  some cases
• Only 30 of rural population in SSA have access
  to all-season road
• Transport costs amongst highest in world
• 28 countries affected by energy crisis
• Only 30 of African population have access to
  electricity

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ACR Infrastructure Scores, NA
Source African Competitiveness Report,, 2007
(ACR)
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ACR Infrastructure Scores, SSA
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ACR Infrastructure Scores, SSA
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Infrastructure in AfDB Interventions

• Approvals for infrastructure projects in 2007
  reached a record level of Appx US3 bn (UA 1.93
  billion), accounting for 74.8 percent of total
  loan and grant approvals.
• 48 (energy) 39 (transport) 13 (other)
• Infrastructure represents large portion of AfT
  Agenda
• 1st Global Review presents that infrastructure
  represented 96 of Banks AfT allocation

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Strong Regional Operations

• Regional activities important for Bank -
  increase competitiveness and productivity
• Multinational operations increased from USD290
  million in 2006 to USD661 million in 2007 and
  doubled in the recent replenishment
• Supporting development of intraregional and
  regional transport networks i.e. in East African
  Community
• Issaka (Tanzania) - Kigali (Rwanda) - Bujumbura
  (Burundi) Railway Line
• Kisumu (Kenya) - Busia (Uganda) - Jinja (Uganda)
  Northern Road Corridor
• Nyakanazi (Tanzania) - Kigoma (Tanzania)
  Bujumbura (Burundi) - Kigali (Rwanda)

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The Monitoring Agenda

• Internal processes
• ? Flagship publication African Competitiveness
  Report with WEF WB (2007) African
  Development Report 2009/2010 (Logistics) African
  Economic Outlook with the OECD
• ? Ex-ante Development Impact Assessment key
  indicators infrastructure, imports, exports,
  intra-regional trade
• ? Competitiveness trade indicators specified -
  Logical Framework of project documents
  evaluation reports
• ? Data collection activities by the statistics
  department Data Platform

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Other areas of focus

• Sanitary and Phytosanitary agenda
• Trade facilitation ports, customs, etc
• Capacity building for trade negotiations African
  Legal Support Facility (AfDB)
• Mainstream trade in Bank operations
• Establish Africa AfT Website
• Africa AfT Network -gt OECD Knowledge Network
• Work with RECs
• Promote Development Corridors Spatial
  Development Initiatives

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• Thank you