VISION: Preferred Partner for High Impact, Well-focused Development Assistance 1 The Medium Term Strategy – Progress and Challenges AfDB PARTNERSHIPS FORUM.

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Presentation transcript:

VISION: Preferred Partner for High Impact, Well-focused Development Assistance 1 The Medium Term Strategy – Progress and Challenges AfDB PARTNERSHIPS FORUM Hotel Ramada Plaza-Gammarth COBS/ORPC March 2010

VISION: Preferred Partner for High Impact, Well-focused Development Assistance Outline of the Presentation 1. Policy Context of Bank Group Operations 2. Responses to the Crises 3. Addressing Climate Change 4. MTS Achievements 5. Challenges and Outlook

VISION: Preferred Partner for High Impact, Well-focused Development Assistance Policy Context of Bank Group Operations (1/2) Africa grew by over 6% per year in the past decade… prospects for reaching MDGs improved Structural and Macroeconomic Reforms were key FDI increased tenfold to about USD 70bn and remittances fourfold to USD 40bn. Social Policy Reforms including Universal Primary Education and better health care

VISION: Preferred Partner for High Impact, Well-focused Development Assistance Policy Context of Bank Group Operations (2/2) Global financial and food crises exacerbated Africas needs… FDI and remittances declined by over USD 10bn in 2009 alone. Plans to access capital markets through international bond issues were abandoned Investors in Africas emerging Stocks Exchanges flew to safety

VISION: Preferred Partner for High Impact, Well-focused Development Assistance Responses to the Crises Frontloading ADF Resources … over 80% of ADF resources committed by December 2009 Portfolio Restructuring and Reprogramming…. Priority was given to areas affected by the financial crisis Emergency Liquidity Facility (ELF) Trade Finance Initiative (TFI) 5

VISION: Preferred Partner for High Impact, Well-focused Development Assistance Addressing Climate Change Response to Climate Change Inbuilt in MTS -Dedicated Unit -Bank as spokesperson for RMCs -Safeguards -Mitigation/Adaptation Strategies -Advisory Services -Climate Proofing

VISION: Preferred Partner for High Impact, Well-focused Development Assistance MTS Achievements (1/6) High Level Panel Report The VISION: AfDB Preferred Partner in Africa The Strategic Framework in 5 Areas 1 Operational Selectivity 2 Results and Performance 3 Decentralization 4 Streamlined Internal Processes 5 Staffing, Knowledge, Financials, and Partnerships as Foundation 7

VISION: Preferred Partner for High Impact, Well-focused Development Assistance MTS Achievements (2/6) Core Priorities Set Out in MTS Infrastructure Governance Private Sector Higher Education Regional Integration Fragile States MICs Agriculture Gender Environment Climate Change Knowledge Management Sector focus Special applicability to… Cross-cutting

VISION: Preferred Partner for High Impact, Well-focused Development Assistance MTS Achievements (3/6) FOCUS ON PRIORITIES MAINTAINED (End 2009) Private Sector 36% Governance (Programmatic Lending) 22% Others (incl. Higher Education) 10% Infrastructure (Sovereign) (32%)

VISION: Preferred Partner for High Impact, Well-focused Development Assistance MTS Achievements (4/6) IMPROVING DELIVERY CAPACITY IMPROVING DELIVERY CAPACITY Decentralisation - Decentralisation Strategy - Enhanced Country Dialogue and Portfolio Management Operations Business Processes - Creation of COO, SMCC and OPSCOM - Greater Strategic Alignment and Delivery Human Resources - Increased recruitment Budget Reforms - Strengthened link between priorities and resource allocations

VISION: Preferred Partner for High Impact, Well-focused Development Assistance MTS Achievements (5/6) AfDB MTS AfDB MTS AfDB approved Work Programmes & Outputs AfDB Resources & Budget AfDB Resources & Budget Key Performance Indicators Strategy Drives Resource Allocation Alignment Process

VISION: Preferred Partner for High Impact, Well-focused Development Assistance MTS Achievements (6/6) Expanded Operations Bank Group Lending More than 100% increase b/w 2006 to 2009 Problematic Projects Dramatic Reductions since

VISION: Preferred Partner for High Impact, Well-focused Development Assistance Challenges and Outlook (1/2) High Risk environment with limited resources Increased demand for funds from RMCs Capacity for delivery and corporate business efficiency Strategic Alignment MTS is undergoing a Mid-Term review: Ensure the adequacy of the Banks strategic framework for the remainder of the MTS period....confirm/revise targets and projections

VISION: Preferred Partner for High Impact, Well-focused Development Assistance Challenges and Outlook (2/2) The Bank is demonstrating progressive achievements towards its vision in 2012 in three key areas: GrowthGrowth Increases in lending, staffing and advanced stages for GCI and ADF replenishments Responsiveness Responsiveness Quick action prevented the financial crisis from becoming a development crisis by acting in a countercyclical way to liquidity availability as well as the accelerated resource transfer and policy support Relevance Relevance Aligning the Banks current priorities with those of RMCs lays foundation for recovery on the continent once global recovery sets in

VISION: Preferred Partner for High Impact, Well-focused Development Assistance