Africa’s fertilizer sector and the Bank’s High 5s

AfDB NEWS & EVENTS

13-Jul-2020

Introduction

According to the UN’s  2019 State of Food Security and Nutrition in the World, hunger is on the rise in almost all African sub-regions, making the continent the region with the highest prevalence of undernourishment, at nearly 20%. The continent is still not able to feed itself, and there is an urgent need to improve agricultural productivity. Although fertilizer is one of the most needed inputs in agriculture, its use remains below the 2006 Abuja Declaration objective of at least 50 kg of nutrients of fertilizer use per hectare of arable land. Through this Declaration on Fertilizer for the African Green Revolution, African leaders resolved to fast-track farmers’ access to affordable fertilizers as well as to increase the level of fertilizer use.

From manufacturer to farmer, the fertilizer value chain must become an integral part of the entire agricultural value chain. With the support of stakeholders in the public and private sector and from within and outside the Bank, the Africa Fertilizer Financing Mechanism can contribute to achieving four of the African Development Bank’s High 5 objectives, namely Feed Africa, Industrialize Africa, Integrate Africa and Improve the Quality of Life for the People of Africa. This paper aims to show the connections that exist between the development of the fertilizer sector and the advancement of these priorities of the Bank. 

Feed Africa

Despite its vast agricultural potential, and the fact that the majority of the labour force works in agriculture, Africa remains a net food importer and has a food trade deficit. This increases Africa’s vulnerability, especially in crisis times. Moving away from an unsustainable food system in which Africa spends $64.5 billion annually on importing food that could be produced by African farmers, is an important goal.

Feeding our soils to feed Africa

The African Development Bank, through its Feed Africa strategy, is working to achieve this. The strategy aims to transform African agriculture into a globally competitive, sustainable, inclusive and business-oriented sector, creating wealth, generating employment, and improving quality of life.[1]. Ensuring food security for a growing population can only happen if measures are taken to increase large scale production in Africa. This requires that farmers have access to vital agricultural inputs including fertilizer, seeds, irrigation and crop protection products. In this regards, the African Development Bank developed the Technologies for African Agricultural Transformation (TAAT) programme, with the objective of raising agricultural production and productivity through the deployment of appropriate technologies, including nutrient-dense crop varieties and outreach training and campaigns.

As we enter a new decade, access to and use of critical agricultural inputs remains underdeveloped in Africa. For example, the average application of fertilizer per hectare of cultivated land in sub-Saharan Africa is 17 kg of fertilizer nutrients, compared to a global average of 135 kg.

Supporting the fertilizer value chain

Strong support to the fertilizer value chain will accelerate the Bank’s journey towards a more competitive agriculture sector. Success depends on smallholder farmers being able to access inputs which requires adequate finance as recommended by the 2014 Malabo Declaration on Agriculture through which regional member countries “commit to enhance investment finance, both public and private, to agriculture”.[2]

While the TAAT programme is focused on promoting the use of improved seeds, the Africa Fertilizer Financing Mechanism (AFFM), hosted by the Bank, seeks inclusive financial solutions to help all the actors along the fertilizer value chain. The Mechanism intends not only to facilitate access to quality inputs but also to ensure farmers have the knowledge to apply them effectively. Collaboration between Bank departments, regional member countries, the financial and fertilizer sectors will have a significant impact in efforts to achieve the Feed Africa priority.

Industrialize Africa

The low use of fertilizer in Africa is also due to Africa’s failure to establish a strong and powerful fertilizer value chain to meet the needs of the agriculture sector. A fast-growing population requires large-scale fertilizer production to ensure better productivity. In line with the African Development Bank’s industrialization strategy 2016-2025, the mission of the Africa Fertilizer Financing Mechanism is to attract and channel funding into infrastructure and projects related to the fertilizer sector. The strategy aims to develop the fertilizer value chain in Africa, which still largely depends on imported raw materials to manufacture fertilizer locally. This is due to the lack of low-cost raw materials for fertilizer production, low domestic demand, low capacity utilization and high capital requirements for investment in production facilities.[3] 

Supporting large scale production of fertilizer

With the continent’s vast reserves of mineral and gas resources needed to produce different fertilizers, there is a need to design and support projects to improve Africa’s capacity to produce straight and blended fertilizers. For example, in 2018, the Bank lent $100 million to Nigeria’s Indorama Eleme Fertilizer & Chemicals Limited for the production of 1.4 million metric tons of urea per year from natural gas, boosting fertilizer production, a foundation of agricultural growth. In the same vein, the Bank approved a loan of $200 million in 2018 to Morocco’s OCP Africa for the expansion of its activities.

 Large-scale production will allow economies of scale, and hence make fertilizers more affordable within countries and at the regional level.

Supporting the development of fertilizer SMEs

Also needed is specific support to small and medium scale enterprises (SMEs) in fertilizer production in Africa. These are constrained by the lack of affordable financing to purchase raw materials for blending. The fertilizer blending industry must be developed to ensure that the necessary blended or compound fertilizer is produced and brought closer to farmers. As recommended by the fourth pillar of the Bank’s industrialization strategy 2016-2025, investment and lending to SMEs as well as the provision of technical assistance to strengthen SME-focused entities, are essential.

The availability and accessibility of affordable fertilizer will lead to increased food production and hence will have a significant impact on food processing industries. 

Integrate Africa

The free movement of people, goods and services is critical for Africa’s development. It is also crucial for a vibrant fertilizer industry in Africa. Recognized as a “strategic commodity without borders” in the Abuja Declaration on Fertilizer for the African Green Revolution, fertilizer movement across Africa should be promoted. This will expand markets for African producers and improve the access of landlocked countries to fertilizers. Transportation costs represent 30% to 60% of the farm gate price of fertilizer, therefore improving road and railway networks will contribute to making fertilizer more affordable.

Promotion of regional road infrastructure

The Bank’s objective of enhancing the construction or rehabilitation of 10,000[4] kilometers of cross-border roads to improve intra-continental connectivity will go a long way to benefit fertilizer movement across Africa. It also represents a huge opportunity to improve the service provision and to boost fertilizer trade in Africa. However, all this can only be efficient if the main transport corridors can facilitate linkages to smallholder farmers who struggle to access fertilizer. Therefore, African governments should also make the development of rural infrastructure a priority.

Harmonization of regional policies on fertilizers

Integration also requires the harmonization of fertilizer standards and regulations at a regional level. As a joint African Union, AFFM and UN Economic Commission for Africa study in 2018 showed, “If fertilizer policies are harmonized at a regional level, a regional inspection of fertilizer will allow for shipments to be approved once upon entry into a region.” Where it is not the case, fertilizer is subject to pre-shipment inspections at ports and border crossings, which introduces delays due to multiple controls. Harmonization of standards is also key in the context of the implementation of the African Free Trade Continental Area launched in 2019. Intra-Africa trade will increase the flow of fertilizers throughout regional economic communities according to their agricultural calendar.

Building regional platforms to strengthen the fertilizer value chain

A regional perspective also has the potential to contribute to the better organization of the fertilizer sector in different regions of the continent. AFFM is working to bring together fertilizer sector stakeholders to develop sustainable financing solutions to the fertilizer value chain at a regional level. Creating a regional platform where the sector can meet and discuss is an opportunity to advance the industry further. For example, the 2019 West Africa Fertilizer Financing Forum brought together about 60 fertilizer companies to discuss their priorities and connect with different financing possibilities in the region.  

Improve the Quality of Life for the People of Africa

Access to quality fertilizer can accelerate efforts to improve the quality of life for the most vulnerable people in our societies.

Increasing smallholder farmers’ revenue

The majority of sub-Saharan farmers are subsistence and smallholder farmers and the use of fertilizers and improved seeds to increase their agricultural productivity would have a tremendous impact on their yields, and therefore their revenues.

Closing the gender gap in the fertilizer value chain

An efficient fertilizer value chain can also improve the quality of life of Africans by closing the gender gap in the agriculture sector. According to UN Women, gender gaps in productivity arise because women have unequal access to agricultural inputs.[5] All interventions should, therefore, work towards creating an inclusive fertilizer value chain where access to financing to buy inputs is facilitated for women. The Bank’s flagship pan-African initiative, Affirmative Finance Action for Women in Africa (AFAWA) can also play a significant role in ensuring that women in the agricultural sector have access to finance to purchase key inputs like fertilizers and seeds.

Improving food nutrition on the continent

Adequate fertilizer use can also improve the quality of soil health, which, in turn, will help produce quality food to ensure people’s health. Indeed, improving the quality of food through its intake of micronutrients can accelerate Africa’s efforts towards ending malnutrition. The application of mineral fertilizers to soils or plant leaves can increase micronutrient content, essential for human growth and development.[6] Supporting the sector can go a long way in fighting malnutrition, a scourge which affects millions of African children.

Conclusion                                                                                    

Increased support to the fertilizer sector could be the game-changer for Africa – accelerating its objectives in the areas of food security and nutrition, as well as in other key development areas. Access to quality and affordable fertilizer is essential to transforming the agriculture sector and improving smallholder farmers’ livelihoods. Interventions for integrated support to the fertilizer value chain should prioritize capacity building among farmers, to ensure their ability to use agricultural inputs to achieve the potential increased productivity. The AFFM can play a role in channeling Bank’s support to smallholder farmers and SMEs and in bridging financing through commercial banks involved in fertilizer sector financing.

First flood, then drought: climate-resilience project helps farmers thrive in Mozambique

09-Jul-2020

Mozambican farmer Alima Matusse is the head of a household of six and she used to worry that her children would go without nutritious food because her small plot of land was bone dry in the hot season and waterlogged when it rained.

Thanks to a climate-resilience project providing irrigation and drainage in her home province of Gaza, Matusse has been able to increase the area she cultivates from a quarter to three quarters of a hectare and has added kale, cabbage, carrots to her staple crop, maize.

In 2013, Gaza Province was devastated by heavy floods, with almost 200,000 people uprooted from their homes. Just three years later, Mozambique was struck by severe drought, affecting nearly half a million people and leaving 400,000 people in need of food assistance.

With the aim of bolstering the resilience of farming communities to these recurrent climate shocks, the African Development Bank-supported the Baixo Limpopo Irrigation and Climate Resilience Project (BLICRP) implemented in Xai-Xai District of Gaza Province.

The extra income Matusse has generated through the project has allowed her to save money through a savings and credit association, build her house, pay for school fees and purchase two goats with the aim of transitioning to cattle farming in the future.

Since BLICRP was started in 2013, she has noticed that many of her neighbours have returned home after migrating to the capital Maputo or even South Africa in search of work. This reverse migration was accelerated in the 2017/18 planting season, when more than 400 farmers received intensive training in new technologies for rice production.

Matusse’s ambition now is for her children to go to university, and to construct a house of bricks so she does not have to repair her reed house every year.

“The project gives an opportunity to the unemployed youth to make a living through farming. This project is our real dream,” she said.

The seven-year BLICRP project provided around 9,000 smallholder farmers in Xai-Xai with climate-resilient infrastructure, including two pumping stations to improve drainage and irrigation, and a 52 kilometre drainage network servicing a total area of 2,000 hectares. Nearly 48 km of rural roads were rehabilitated to a climate-resilient design.

The project also added value to agricultural production, mainly in rice and horticulture, with the construction of an agro-processing centre, CEPHOL in Xai-Xai city, which opened in June 2019 to purchase farmers’ produce and provide primary processing – washing, sizing and packaging – as well as cold storage and conservation to reduce post-harvest losses.

With agreements to supply the wholesale and retail markets in Maputo and sweet potatoes to the South African market, CEPHOL has allowed local farmers to reach buyers way beyond their usual markets.

Another beneficiary is 57-year-old farmer António Gaveta, who owns 10 hectares of land within the BLICRP scheme area. A surge in his agricultural productivity has allowed this proud father to invest $3,200 per year in the education of three of his six children.

His daughter Aurora is following in her father’s footsteps by studying agricultural economics, his son Antonio is on a healthcare management course and his younger daughter Mira is studying public administration.

According to Gaveta, “the BLIRCP project has allowed me to move forward with my own project, which is slightly different from that of the members of my community. In fact, I have what I like to call an education project”.

Within the project area, Agro Sumbunuca, a family-run company, opened to supply approximately 1,000 farmers with seeds, herbicides, equipment, animal feed and poultry chicks – the first private-sector operation under the BLIRCP scheme.

The major challenge now lies in attracting more private sector companies to engage with farmers and to cement this “farm-to-fork” value chain success story.

Total funding for BLIRCP was an estimated $44.08 million; $25.79 million was provided by a loan from the Bank Group’s African Development Fund. The Strategic Climate Fund extended $15.98 million in financing and the Government of Mozambique $2.31

Weather data helps authorities respond to deadly floods in Abidjan

AfDB NEWS & EVENTS

09-Jul-2020

When torrential rains and flash floods deluged parts of Côte d’Ivoire’s economic capital, Abidjan, an African Development Bank investment in weather data was critical in the disaster response efforts.

While heavy rainfall is not unusual for Abidjan from May to July, the sheer volume experienced recently caused significant damage. At its peak, water levels reached half the height of a commuter taxi vehicle, leaving the metropolis struggling to cope.

According to Daouda Konate, Côte d’Ivoire’s Director of Meteorology at the national agency SODEXAM, some areas experienced the heaviest rains in decades.

“In the Abobo and Cocody neighborhoods near Abidjan, communities experienced the highest recorded rainfall levels over the last 45 years,” said Konate.   

Strengthened early warning systems, put in place in 2014, included the creation of an inter-ministerial and multi-sectoral Disaster Risk Management Platform, a group of about 50 representatives from various ministries and public bodies, districts and departments, the national assembly and the union of NGOs, tasked to lead emergency responses.

In 2018, the Bank also approved a grant of 480,000 euros through the ClimDev Fund to help the country rebuild its climate and weather information services, following a post-electoral crisis in 2010-2011, and to further strengthen Côte d’Ivoire’s extreme weather preparedness capacity.

Côte d’Ivoire used the grant funding to acquire six automatic weather stations that collect rainfall data and forward it to SODEXAM, where experts use high-performance computers to process the data and produce real-time weather reports and flooding risk alert bulletins for distribution through the Platform.

Under the coordination of the Minister for Environment and Sustainable Development, the Platform uses data to develop models that help predict weather conditions in real time. So, as it became clear that a catastrophic event was approaching Abidjan, the Platform kicked into action with an email alert via various channels, including a mailing list of 200 journalists, and SODEXAM’s social media accounts.

All alerts up to amber are issued through Government Information Broadcasts. When events reach an emergency level beyond amber, the Platform escalates the issue to the level of government, the only body empowered to issue a red alert and to implement the shutdown of services, including transport.

Konate, in his capacity as President of the World Meteorological Organization’s Regional Association for Africa, has a vision to build the region’s capacity in data modelling and to move away from its dependence on models designed for Europe. Reaching that goal needs more investment in the antennas that collect and analyze data for Africa to produce context-specific weather predictions.

Cape Verde: Cabeólica wind farms open new perspectives for the energy mix

07-Jul-2020

Helder Andrade is a mechanical engineer, specializing in wind energy. He did his higher studies far from Cape Verde but then decided to put his know-how at the service of the archipelago. His project, funded by the African Development Bank, aims to strengthen Cape Verde's energy autonomy by developing its capacities.

“I was born in Portugal. I arrived in Cape Verde at the age of two and grew up in São Vicente with a modest family, says Helder. My father, who has always been a worker, instilled in us a sense of effort. After my primary and secondary studies in Cape Verde, I went to Brazil to learn mechanical engineering. While still a student, he learned of the Cabeólica project; he later returned to Cape Verde to take part. He is now the technical director.

Cabeólica operates four wind farms on the Cape Verdean islands of Santiago (9.35 MW), São Vicente (5.95 MW)), Sal (7.65 MW) and Boa Vista (2.55 MW). Its objective: to diversify the energy matrix of Cape Verde, stabilize the network and reduce the energy import bill from the archipelago.

“The four wind farms total around 25.5 MW of installed capacity. Thanks to this project, the penetration rate of renewable energies has increased from 2% to 20% in Cape Verde, notes Bruno Lopes, chief financial officer of Cabeólica.

The project occupies around 28% of the national market share in terms of energy production. The overall penetration rate is estimated at 15% in 2019 against 18% in 2018. The project availability rate is around 97.5% in 2019 and 98.88% in 2018 against a contractual availability of 95%. On the environmental level, the impacts on greenhouse gas emissions were significant as well as on sustainable energy resources. " In terms of jobs generated, the development results at the end of 2018 show around 40 jobs, including 06 women. 

For the implementation of the project, the African Development Bank provided a long-term loan guarantee of 15 million euros, or almost a quarter of its total cost, which amounts to 64 million euros. . Bruno Lopes also stresses that the Bank's expertise has proved fundamental for the conduct of the project. From a social point of view, Cabeólica has had a direct impact on job creation: all the maintenance tasks for the wind farms are carried out by local teams and new commercial opportunities have been associated with the project itself.

In addition, the project has a teaching program dedicated to teaching clean energy sources and energy efficiency to fourth year students with the aim of improving the value of the existing natural resources of Cabo Verde . The program has been implemented in six of the country's islands, reaching more than 4,800 Cabo-Verdean students. Cabeolica has sponsored a number of important programs and initiatives aligned with the company's environmental values, as well as programs focused on community development and inclusion.

Across its territory, Cape Verde has doubled its installed capacity to around 200 MW, thereby contributing to the reduction of power cuts and increased access for populations by extending the electricity network.

Ana Monteiro is responsible for environment, social and administration of Cabeólica. This native of the island of Santiago left for the United States at the age of eight when her parents moved to New York. “During my final internship, I contacted the developer of the project, and back in Cape Verde, I was able to integrate it. I wanted to come back here, to my country and the Cabeólica project really suited my aspirations. "

For Ana Monteiro, working at Cabeólica represented a “very important opportunity”. With both professional and personal progression. “I work for my country. I am developing a project for the future, in which I am 100% involved, ”she concludes with satisfaction.

Data-driven advisory services key for Africa’s agricultural development

07-Jul-2020

What are some of the barriers preventing small farmers in Africa from adopting digital advisory services? What do we mean by big data? What can governments do to encourage greater digital uptake?

These were some of the questions addressed during the second of four Transforming Agriculture in Africa Through Digitalization webinars hosted by the African Development Bank and the Food and Agriculture Organization’s Investment Centre. During the most recent webinar, panelists explored how data-driven technologies can transform the agricultural ecosystem and contribute to policy-making and investment.

Event moderator Ed Mabaya, Manager of the Bank’s Agri-business Division, said that COVID-19 had accelerated the use of digital technologies in the global economy, including in agriculture. “Digital innovation is new and exciting. Ten years ago, we didn’t hear buzzwords like data platforms and blockchains. But all of this digital innovation is meaningless unless it is converted and utilized by farmers, especially small-scale farmers across Africa,” Mabaya said.

Going digital

The webinar looked at the challenges and opportunities for meaningful adoption of digital advisory, peer-to-peer and knowledge dissemination services in Africa.

Some of the barriers discussed included a lack of access to reliable and affordable internet connectivity and limited smartphone ownership. Panelists discussed improving digital literacy rates among farmers, and increasing customized content for them to use.

Digital advisory services need to be accessible to farmers through simple technologies like Short Message Service (SMS), Unstructured Supplementary Service Data (USSD) - sometimes referred to as "Quick Codes," Interactive Voice Response (IVR), chatbots and other user-friendly mobile apps to aid learning and improved productivity.

Services should meet farmers’ needs by allowing them to send and receive messages in local languages. Knowledge sharing between farmers and service providers can significantly increase the quality of tailored content, panelists said.

Enhancing outreach

Investing in formal adult education and digital literacy in rural communities, as well as providing incentives for more tech-savvy youth to enter agriculture - including better access to financing and opportunities for interesting jobs and entrepreneurial activities along the supply chain – are crucial to improving these advisory services.

Panelists also called for greater competition among telecommunication companies, improving rural area network coverage and bulking up services that are relevant and affordable to farmers.

Digital Agriculture Profiles

The Bank has partnered with the Food and Agriculture Organization (FAO), the World Bank and the International Centre for Tropical Agriculture (CIAT) to develop Digital Agricultural Profiles (DAP) for Rwanda, South Africa and Cote d’Ivoire. DAPs give an overview of the current landscape, including challenges and opportunities for quick-win digital solutions for agriculture value chains in specific contexts.

“Accelerating agriculture’s transformation in Rwanda, for example, calls for a combination of low-tech and high-tech solutions alongside supportive policies and hard and soft infrastructure investments from the public and private sectors,” said Kemi Afun-Ogidan, Coordinator for the Bank’s Digital Agriculture Flagship.

Big data

FAO Senior Economist Carlo Bravi informed participants about the four “Vs” of big data – volume, variety, velocity and veracity – and championed big data as a public good.

“Enormous amounts of data are being generated so quickly that near-real-time predictions can be made. There’s traditional data, like official statistics and surveys, and non-traditional data from the digital footprints we leave behind daily on social media, mobile phone use and geolocalisation,” he said.

Analyzing datasets can reveal trends that can assist government policy-making, as well as providing farmers with advice, such as when to plant, where to access markets, or how to optimize water resources.

Fairer, more equitable future

The webinar also explored concerns about data privacy and security. For example, participants discussed how, in sub-Saharan Africa, there are no specific regulations related to agriculture data; thus, regulating data flows is difficult.

Looking to the future, panelists said access to digital solutions must be inclusive and that governance and regulatory policies must keep pace with growing data markets.

Webinar participants agreed to a common goal of establishing farmer-tailored digital solutions that allow farmers across Africa to improve their livelihoods and well-being.

* Panelists and presenters

• Ed Mabaya, Manager, African Development Bank
• Carlo Bravi, Project Coordinator, FAO Investment Center
• Georgia Barrie,Co-founder, Farm.ink
• Martha Haile, VP Africa, WeFarm
• Emmanuel Bakirdjian, Africa Regional Director, Precision Agriculture for Development
• Tawiah Agyarko Kwarteng, Sustainable Sourcing Manager, Ghana, The Hershey Company
• Kemi Afun-Ogidan, Digital Agriculture Flagship Coordinator, African Development Bank
• Dejan Jakovljevic, Deputy Director, Information Technology Division, FAO
• Foteini Zampati, Data Rights Research Specialist, Global Open Data for Agriculture and Nutrition (GODAN)
• Winnie Karanu, AI Country Plan Program Manager, Microsoft
• Christophe Bocquet, AgriTech Lead, Office for East Africa, Dalberg Group
• Stuart Tippins, Digital Agriculture Specialist, FAO Country Office, Kenya

Madagascar receives more than $ 2 million from ARC to cover drought risks

AfDB NEWS & EVENTS

04-Jul-2020

The government of Madagascar received, on July 2 in Antananarivo, a check for 2.13 million US dollars from the Insurance Company of the Pan African Risk Management Mutual (ARC Ltd) to cover the loss of livelihoods of its population caused by climatic disasters.
This ARC payment represents the premium for drought insurance taken out by Madagascar, with the support of the African Development Bank, through the African Disaster Risk Financing Initiative (ADRiFi), which financed the the entire premium for 2019-2020 for the sovereign transfer of drought risk to the Big Island.

The settlement is intended to protect 600,000 vulnerable people hit by climatic disasters, including the drought, which affected crops during the last season. 
"The ARC is a lasting solution to strengthen the efforts of the government and partners in the Great South of Madagascar and demonstrates the mutual aid between friendly African countries to cope with natural disasters, especially drought," said the minister. Madagascan of Economy and Finance, Richard Randriamandrato, during the ceremony of presentation of the check.   

Interventions will focus on cash transfer under the ACT (“cash for work”) scheme for 15,000 vulnerable households, nutritional support for 2,000 children under the age of 5 and water supply for 84,000 households. . Strengthening this insurance mechanism promotes the implementation of the national risk and disaster management policy and strategy in Madagascar. 

Madagascar is facing devastating climatic hazards, which are added to a general food insecurity. In addition to cyclones, the Indian Ocean island faces floods and droughts, which affect its public finances and economic growth.

According to the African Development Bank, natural disasters in Madagascar caused about 420 million U.S. dollars in damage in 2017. In 2019, Madagascar joined Group VI of countries insured by the ARC against the risks of drought for the 2019-2020 agricultural campaign, under the pilot countries of the ADRiFI program.

"The payment of compensation made by the ARC to support the population affected by the drought in the Great South of Madagascar was made possible by the leadership and commitment of the Government of Madagascar to protect its population," said the Deputy Secretary General of the United Nations and Director General of the Pan African Risk Management Mutual, Mohamed Beavogui. We also thank the African Development Bank for its commendable support through the ADRiFi program. This is a testament to the fact that collaboration between African governments and development partners can preserve development gains on the continent. "

The ARC and the African Development Bank signed, in March 2017, a memorandum of understanding to help African states manage the risks of natural disasters and provide an effective response. The Bank thus supported Madagascar for the payment of its insurance premium between 2019 and 2023 through the ADRiFi program.

“The payment of compensation is timely, Madagascar is also facing the challenge of the Covid-19. This shows that risk transfer programs can help countries manage climate-related disasters and reduce pressure on public finances during multiple crises, "said Jennifer Blanke, Vice President of Agriculture, of human and social development at the African Development Bank.

With the United Kingdom, Germany, Sweden, Switzerland, Canada, France, the Rockefeller Foundation and the United States, the ARC helps African Union member states to reduce their risks in the face of events extreme climate affecting the African populations, by providing, by sovereign insurance, targeted responses in a more timely, economical, objective and transparent manner. The CRA is now using its expertise to help fight other major threats such as outbreaks.
Since 2014, 45 insurance contracts have been signed by CRA member states for $ 83 million in premiums paid out of total insurance coverage of $ 602 million, in support of 54 million vulnerable people.     

Appointment of Acting Vice President Agriculture, Human and Social Development, African Development Bank Group: Wambui Gichuri

04-Jul-2020

The African Development Bank Group is pleased to announce the appointment of Wambui Gichuri as Acting Vice President- Agriculture, Human and Social Development, effective 5 July 2020.

Wambui joined the African Development Bank Group in 2018 as Director, Water Development and Sanitation. She currently oversees the Bank’s water sector program of over $ 4.5 billion covering 44 countries and multinational projects.

Wambui supervises two divisions: the Water Development, Coordination and Partnerships, and Water Security and Sanitation divisions, as well as the African Water Facility divisions, a project preparation facility.  She also leads the development and coordination of the technical program, manages the department’s human resources and budget and the development of extensive partnership activities. Her leadership role includes water sector policy dialogue, strategy and business development, and spearheading innovations.
 
Before joining the African Development Bank, she worked for the World Bank where she served in various capacities for twenty-years, including 17 years in water resources management, supply, sanitation, irrigation and drainage, with vast experience in Africa, Latin America and the Caribbean.

Wamgui holds a Master’s Degree in Economics from the University of Nairobi, Kenya (1988); a Bachelor of Philosophy degree in Economics (1986) and a Bachelor’s degree in Economics and Sociology from (1983) from the same university.

Commenting on her appointment, the President of the African Development Bank Group, Akinwumi Adesina said “I am very pleased that Wambui agreed to step into this role as Acting Vice President. The Vice Presidency Complex on Agriculture, Human and Social Development has some of our largest programs and flagship initiatives. With her extensive experience, leadership, people management skills, and strong execution capacity, I am confident that she will help strengthen the team and accelerate execution on critical programs and initiatives”.

Madagascar receives more than $ 2 million from ARC to cover drought risks

AfDB NEWS & EVENT

04-Jul-2020

The government of Madagascar received, on July 2 in Antananarivo, a check for 2.13 million US dollars from the Insurance Company of the Pan African Risk Management Mutual (ARC Ltd) to cover the loss of livelihoods of its population caused by climatic disasters.
This ARC payment represents the premium for drought insurance taken out by Madagascar, with the support of the African Development Bank, through the African Disaster Risk Financing Initiative (ADRiFi), which financed the the entire premium for 2019-2020 for the sovereign transfer of drought risk to the Big Island.

The settlement is intended to protect 600,000 vulnerable people affected by climatic disasters, including the drought, which affected crops during the last season. 
"The ARC is a lasting solution to strengthen the efforts of the government and partners in the Great South of Madagascar and demonstrates the mutual aid between friendly African countries to cope with natural disasters, especially drought," said the minister. Madagascan of Economy and Finance, Richard Randriamandrato, during the ceremony of presentation of the check.   

Interventions will focus on cash transfer under the ACT (“cash for work”) scheme for 15,000 vulnerable households, nutritional support for 2,000 children under the age of 5 and water supply for 84,000 households. . Strengthening this insurance mechanism promotes the implementation of the national risk and disaster management policy and strategy in Madagascar. 

Madagascar is facing devastating climatic hazards, which are added to a general food insecurity. In addition to cyclones, the Indian Ocean island faces floods and droughts, which affect its public finances and economic growth.

According to the African Development Bank, natural disasters in Madagascar caused about 420 million U.S. dollars in damage in 2017. In 2019, Madagascar joined Group VI of countries insured by the ARC against the risks of drought for the 2019-2020 agricultural campaign, as pilot countries of the ADRiFI program.

"The payment of compensation made by the ARC to support the population affected by the drought in the Great South of Madagascar was made possible by the leadership and commitment of the Government of Madagascar to protect its population," said the Deputy Secretary General of the United Nations and Director General of the Pan African Risk Management Mutual, Mohamed Beavogui. We also thank the African Development Bank for its commendable support through the ADRiFi program. This is a testament to the fact that collaboration between African governments and development partners can preserve development gains on the continent. "

The ARC and the African Development Bank signed, in March 2017, a memorandum of understanding to help African states manage the risks of natural disasters and provide an effective response. The Bank thus supported Madagascar for the payment of its insurance premium between 2019 and 2023 through the ADRiFi program.

“The payment of compensation is timely, Madagascar is also facing the challenge of the Covid-19. This shows that risk transfer programs can help countries manage climate-related disasters and lower pressure on public finances during multiple crises, "said Jennifer Blanke, Vice President of Agriculture, of human and social development at the African Development Bank.

With the United Kingdom, Germany, Sweden, Switzerland, Canada, France, the Rockefeller Foundation and the United States, the ARC helps African Union member states to reduce their risks in the face of events extreme climate affecting the African populations, by providing, by sovereign insurance, targeted responses in a more timely, economical, objective and transparent manner. The CRA is now using its expertise to help fight other major threats such as outbreaks.
Since 2014, 45 insurance contracts have been signed by CRA member states for $ 83 million in premiums paid out of total insurance coverage of $ 602 million, in support of 54 million vulnerable people.      

Appointment of Acting Vice President Agriculture, Human and Social Development, African Development Bank Group: Wambui Gichuri

AfDB NEWS & EVENTS

The African Development Bank Group is pleased to announce the appointment of Wambui Gichuri as Acting Vice President- Agriculture, Human and Social Development, effective 5 July 2020.

Wambui joined the African Development Bank Group in 2018 as Director, Water Development and Sanitation. She currently oversees the Bank’s water sector program of over $ 4.5 billion covering 44 countries and multinational projects.

Wambui supervises two divisions: the Water Development, Coordination and Partnerships, and Water Security and Sanitation divisions, as well as the African Water Facility divisions, a project preparation facility.  She also leads the development and coordination of the technical program, manages the department’s human resources and budget and the development of extensive partnership activities. Her leadership role includes water sector policy dialogue, strategy and business development, and spearheading innovations.
 
Before joining the African Development Bank, she worked for the World Bank where she served in various capacities for twenty-years, including 17 years in water resources management, supply, sanitation, irrigation and drainage, with vast experience in Africa, Latin America and the Caribbean.

Wamgui holds a Master’s Degree in Economics from the University of Nairobi, Kenya (1988); a Bachelor of Philosophy degree in Economics (1986) and a Bachelor’s degree in Economics and Sociology from (1983) from the same university.

Commenting on her appointment, the President of the African Development Bank Group, Akinwumi Adesina said “I am very pleased that Wambui agreed to step into this role as Acting Vice President. The Vice Presidency Complex on Agriculture, Human and Social Development has some of our largest programs and flagship initiatives. With her extensive experience, leadership, people management skills, and strong execution capacity, I am confident that she will help strengthen the team and accelerate execution on critical programs and initiatives”.

Ethiopia: African Development Fund approves $165 million grant for national COVID-19 emergency response

AFDB NEWS & EVENTS

03-Jul-2020

The Board of Directors of the African Development Fund (ADF) on 3 July approved a grant of $165.08 million to support Ethiopia’s response to the health and economic impacts of the COVID-19 pandemic, including helping to ease fiscal pressures on the economy.

The grant, awarded from the country’s ADF-15 Performance-Based Allocation, will help bolster Ethiopia’s COVID-19 National Emergency Response Plan (NERP).  The NERP outlines a reliable, multi-sector approach to tackling the pandemic. It aims to expand social protection coverage for the most vulnerable, enhance capacity to contain the virus outbreak, and address macro-fiscal imbalances as well as cushioning the effects of the crisis on the private sector.

“This Bank’s support will especially help local businesses and vulnerable households, particularly the urban poor,” said Abdul Kamara, the Bank’s Country manager for Ethiopia. “The program will increase the number of COVID-19 testing laboratories, train 45,000 healthcare workers in COVID-19 response, and aid in rolling out a risk-communication and community engagement strategy to raise awareness on transmission and prevention.”

The country’s health system remains weak, with only three hospital beds per 10,000 persons. The package will assist in refurbishing 300 isolation centers, 34 treatment centers and 100 quarantine centers.

The program will also support the government to offset unplanned expenditures deployed to stabilize the economy under the NERP, and funds will be apportioned to protect small businesses in the formal and informal economy in order to preserve approximately 26,000 jobs.

Ethiopia, along with the rest of Africa, is feeling the impact of the COVID-19 pandemic, which is threatening to reverse recent economic gains. Apart from existing food security issues heightened by COVID-19, the agricultural sector is facing complex and multiple shocks, including the desert locust invasion and climate risks, which pose a threat to productive farmers.

On 8 April, Ethiopia’s parliament declared a state of emergency and national elections, which were scheduled for 29 August, were postponed.

Ethiopia’s robust economic growth, averaging around 10% annually from 2004/05, is expected to slump as a result of the adverse impact of COVID-1. The country’s 2020 GDP growth has been revised downwards from initial projections of 7.2% to between 2.6% and 3.1%.

The pandemic is also expected to negatively impact the private sector, especially in the construction, exports, and tourism and travel sub-sectors. Ethiopia’s tourism sector accounts for about 9.4% of GDP and employs some 2.2 million people. COVID-19 is expected to further reduce inflows, constraining the importation of raw materials.

The proposed program is aligned with the Bank Group’s Ten-Year Strategy 2013-2022, in particular the High 5 priority “Improve the quality of life of the people of Africa”, and Pillar II of the Ethiopia Country Strategy Paper 2016-2020, “Promoting Economic Governance”. The NERP is being supported in partnership with several development institutions such as the World Bank, the IMF and the Korean Exim Bank.