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Partnerships to Strengthen Reform - How Do They Work?

Partnerships to Strengthen Reform - How Do They Work?. African Development Bank Group. AfDB. Symposium on WTO Trade Facilitation for African Countries Nairobi, Kenya November 13-15, 2012. Structure of Presentation. How Priorities are Determined: AfDB’s Approach AfDB Funding Instruments

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Partnerships to Strengthen Reform - How Do They Work?

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  1. Partnerships to Strengthen Reform - How Do They Work? African Development Bank Group AfDB Symposium on WTO Trade Facilitation for African Countries Nairobi, Kenya November 13-15, 2012

  2. Structure of Presentation • How Priorities are Determined: AfDB’s Approach • AfDB Funding Instruments • Conclusion ONRI- NEPAD Regional Integration & Trade

  3. How Priorities are Determined • The potential benefits of TF are substantial • Transport & NTBs account for 14% of trade costs in Africa’s landlocked countries, compared to a developing country average of 8.6% (AfDB) • Costs prohibitively higher for some land locked countries: • Malawi (56%); Chad (52%); Rwanda (46%), etc… • Implementing TF measures requires substantial investment in human resources, hard and soft infrastructure • Therefore, provision of TA & Capacity Building to regional economic communities (RECs) and regional member countries (RMCs) in the area of TF represents a sound intervention for the Bank • Transforming landlocked into “LAND-LINKED” countries…? ONRI- NEPAD Regional Integration & Trade

  4. How Priorities are Determined • Trade Facilitation Framework: Provides an approach to mainstream TF in the Bank’s regional & country operations • Adopts a holistic approach that includes the ports, transport corridors, border posts • Is anchored around a set of guiding principles: Ownership, Prioritisation,Selectivity,Developmental Effectiveness & Results, Strategic Partnerships,Alignment with relevant international standards ONRI- NEPAD Regional Integration & Trade

  5. How Priorities are Determined ONRI- NEPAD Regional Integration & Trade

  6. AfDB funding instruments ONRI- NEPAD Regional Integration & Trade

  7. Differentiated Products by Category ONRI- NEPAD Regional Integration & Trade

  8. MICs ONRI- NEPAD Regional Integration & Trade

  9. Low Income Countries • ADF is the concessional window of the African Development Bank Group • ADF takes a three year outlook: ADF 12 covers the period 2011-2013 • Focused on infrastructure, governance, fragile states and Regional Integration • ADF-13 currently under negotiation ONRI- NEPAD Regional Integration & Trade

  10. RO Envelop • A dedicated envelop within the ADF for operations in ADF eligible countries only • Critical for supporting regional integration initiatives: In ADF-12, the RO envelop represents 20% of ADF resources • In terms of value, it is estimated at UA1.163 billion (approx. US$1.8 billion) • Example of initiatives: Capacity Building for Tripartite (C-E-S Tripartite ) ONRI- NEPAD Regional Integration & Trade

  11. Regional Operations Selection and Prioritization Framework-Prioritisation of RO projects follow the RO operations Selection & Prioritisation Framework, a 2 State process

  12. Examples of Projects funded under the RO Envelope in 2011 ONRI- NEPAD Regional Integration & Trade

  13. Thematic Trust Funds • Focused on thematic areas such as trade capacity • Africa Trade Fund (AfTra): focusing on trade related capacity building • NEPAD IPPF: focused on design of infrastructure projects to ensure quality and entry • PIDA – Africa’s framework to implement infrastructure projects until the year 2040, estimated at US$360 billion • PIDA Priority Action Plan (2012-2020)- first set of immediate priorities - contains 51 projects and programmes • Multi-donor funded: AfDB, Nigeria Technical Cooperation Fund, Islamic Development Bank, DfID, EU/AU ONRI- NEPAD Regional Integration & Trade

  14. Conclusion • The potential benefits of TF to developing countries are substantial & it’s in the best interest of African governments to invest in TF initiatives to boost their competitiveness & trade • Regional Integration is a major priority for the Bank and this is reflected in all key strategies • Hence, support to RECs & RMCs in TF Technical Assistance and Capacity Building is key, backed by a number of funding products such as the dedicated: RO Envelop, AfTra • Understanding the Bank’s approach to TF support is key for accessing assistance for your needs • Alignment with agreed strategies is critical ONRI- NEPAD Regional Integration & Trade

  15. Patrick KANYIMBONEPAD, Regional Integration & Trade DivisionAfrican Development Bank13 rue de Ghana, B.P. 323-1002, Tunis BelvedereTunisiaTel: +216-71101683 Fax: +216.71254295p.kanyimbo@afdb.org website: www.afdb.org ONRI- NEPAD Regional Integration & Trade

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