Presented by Sylvie Anne CONDE Lead Specialist Partnership and Cooperation Unit, ORRU 25 March, 2010 Tunis

1. ADB Partnership Forum 2010South-South Cooperation Multi-Donor Trust Fund Presented by Sylvie Anne CONDE Lead Specialist Partnership and Cooperation Unit, ORRU 25 March, 2010 Tunis Partnerships & Cooperation Unit (ORRU)

2. Presentation Overview • Rationale for engaging in SSC • Objectives of a SSC Trust Fund and ADB’s role • Establishment of SSC Trust Fund: Time frame, resources and potential donors • SSC : Intra Africa, Africa-Asia and Africa and Latin America Partnerships & Cooperation Unit (ORRU)

3. Rationale for engaging in South-South Cooperation • There is definitely a wealth of experiences and knowledge available within developing countries crucial and relevant for overcoming development challenges. • The financial crisis and the consecutive reduction of Official assistance are leading International Institutions to explore opportunity for South-south cooperation, among african countries namely between less developed countries (LDCs) to Middle Income countries (MICs) with Asia and Latin America ; • The main advantage relies in the replicability of development solutions and the greater willingness to take business risks in a different environment • Common context of development • Geo-climatic conditions • Socio-cultural similarities • South south cooperation is seen as aid without political ties. The Five leading countries (Brazil, China, India, Mexico and South Africa ) decided in 2007 to engage in a structured dialogue on several issues including development, particularly in Africa. Partnerships & Cooperation Unit (ORRU)

4. Current Constraints to SSC for development • Disconnect of demand and supply side • RMCs faced with limited institutional capacity are not fully informed of the expertise and technology and foreign direct investments, available in the South (Africa, Asia, Latin America) • Inadequate structure to facilitate SSC for development • Few countries of the South have a strategy on how to engage in SSC and/or institutional capacity to deal with this. • Lack of international focal point to coordinate south south cooperation and lead the implementation • Developing countries generally meet if forums dedicated to others Agendas Partnerships & Cooperation Unit (ORRU)

5. Objective of SSC Trust Fund for Africa Objective of SSC TF will be to support african countries in mobilizing and taking advantage of development solutions and technical expertise available in the South. The fund will be used to finance SSC initiatives and activities to benefit the Bank’s RMCs such as knowledge sharing, learning from best practices, know-how and approaches developed, applied and proven useful by countries in the South Strong demand by our Regional Member Countries (RMCs) for ADB to play a catalyst role: • In the promotion of expertise and experiences in the South • In the support of technology transfers • In setting up development of partnerships with emerging economies • In broadening the development cooperation resources Partnerships & Cooperation Unit (ORRU)

6. Role of ADB in SSC ADB as catalyst for SSC through Multi-Donor Trust Fund Country in need of relevant development solution Country with development solution to share SSC for Sustainable development ‘win-win-win’ Partnerships & Cooperation Unit (ORRU)

7. South-South Cooperation Multi-Donor Trust Fund • Vehicle for donors to pool resources through ADB for SSC under a structured framework Donor ADB selects relevant projects and identifies potential SS solutions among RMCs and the South Donor SSC Projects for Sustainable development in Africa Donor Donor Partnerships & Cooperation Unit (ORRU)

8. Objective, Activities, Areas of Focus Examples of activities: Transfer of technology: Exchange of brevets and South-South knowledge sharing on experiences of development Promoting Business opportunities area of finance, microfinance and direct investment Common position: in international fora Areas of focus: Infrastructure, Private sector aand/ PPP, Governance, Higher Education and Science and Technology, Agriculture, Water and Environment, International trade and regional integration Main objective: Support African countries in mobilizing and taking advantage of development solutions and technical expertise available in the South Partnerships & Cooperation Unit (ORRU)

9. Examples of concretes experiences of trilateral cooperation A positive trilateral experience between Tunisia, JICA and ADB since 2006 on the promotion of public finance management program for five years course • There is an interesting experience where Egyptians are helping Ethiopian cotton farmers. The Banks objectives is to disseminate these triangular cooperation • Discussion are ongoing with Egyptian and Brazilian government to sign a MOu to cooperate in areas of transfer of technology, trade facilities and African business environment • Since of year 2009 consultation with South African government and with Singapore lately • …………………… Partnerships & Cooperation Unit (ORRU)

10. Timeframe, resources, donors….. Actually, it was in 2008 during a MIC Conference co-organized by the ADB and World Bank in Cairo and under the request of emerging donors that the Bank was asked to play a more leading and more proactive role in the promotion of south south cooperation Because of the convergence of South south cooperation objective and Banks strategy geared toward knowledge sharing and promotion of regional integration. Indicative timeframe: The launch of the Fund was due since 3rd quarter of 2009 Resource requirements: US 6 million for 2010-2012 (initial estimation) Potential donors: Contributions by traditional and emerging donors as well as by MICs in Africa. Management: ORRU, an inter-departmental technical review committee and oversight committee consisting of representatives of contributing donors, partners and the ADB. Eligibility: RMCs including National Institutions, Regional organization and civil society and Bank organizational units.

11. Thank You Partnerships & Cooperation Unit (ORRU)