AfDB investments in Africa hit a record Shs40 trillion

Kampala.

The African Development Bank Group (AfDB) has invested more than US $10.80 billion (about Shs39.6 trillion) worth of projects and programmes in Africa during the year 2016 through the roll-out of its High-5 priorities and the new Development and Business Delivery Model.

According to the group’s Annual Development Effectiveness Review 2017 released recently during an annual meeting in Ahmedabad - India, the projects have created 1.6 million jobs for Africans in 2016, particularly benefitting youths and women.

Operations in 2016 rose to 305 up from 241 operations in 2015.
The operations are core contributions to the implementation of the bank’s High-5 priorities (Light up and power Africa, Feed Africa, Industrialise Africa, Integrate Africa, and Improve the quality of life for the people of Africa) and the bank’s agenda to “transform Africa.”

“The mixed economic performance among African countries underscores the urgency for structural economic transformation on the continent to build resilience and drive sustainable, inclusive growth. Fulfilling its role and mandate, the Bank stepped up its support to regional member countries through higher levels of lending and more policy-relevant knowledge products and support,” said AfDB President Akinwumi Adesina.

The hank’s High-5s serve as vehicles for the delivery of its Ten Year Strategy 2013–2022, which aims to foster inclusive growth and help the continent transition to green growth.

Approvals for Light up and power Africa increased 72.8 per cent to $2.0 billion (Shs7.2 trillion), operations targeting the Feed Africa priority rose by 66 per cent to $1.2 billion while approvals for Industrialise Africa were up 43.5 per cent to $1.3 billion (Shs4.6 trillion).

More than $650 million (shs2.3 trillion) was approved to expand and integrate African markets.

The highest amount, $5.6 billion (Shs20.1 trillion), went to improving the quality of life of the people of Africa priority through various initiatives, representing 52.3 per cent of the total approvals.

Approvals to infrastructure comprising water and sanitation, energy, communication, and transport, went up by 43.7 per cent to $4.72 million (Shs16.9 trillion) in 2016.

The financial sector came second with 23.3 per cent, while projects grouped under multisector activities received 17 per cent of the investments.

Agriculture and rural development and the social sector received 9.3 per cent and 6.7 per cent of the total investments, respectively.

On financing windows, loans and grants were the key financing instruments, accounting for 92.1 per cent of total approvals in 2016, followed by guarantees at 3.3 per cent, equity participation at 2.6 per cent, and special funds at 2 per cent.

The substantial 55 per cent increase in disbursements is attributable to a range of systemic changes and institutional reforms, which effectively slashed the time between approval and first disbursement by 96 days.