Udenrigsudvalget 2015-16
URU Alm.del Bilag 126
Offentligt
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STRATEGY FOR DENMARK’S
ENGAGEMENT WITH THE
AFRICAN DEVELOPMENT BANK
2016 – 2019
February 2016
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CONTENTS
EXECUTIVE SUMMARY
1 OBJECTIVE
2 THE AFRICAN DEVELOPMENT BANK AND DANISH ENGAGEMENT
3 STRATEGIC CONSIDERATIONS
4 PRIORITY AREAS AND INTENDED RESULTS FOR 2016-2019
5 FINANCIAL CONTRIBUTIONS (COMMITMENTS)
6 MAJOR RISKS AND ASSUMPTIONS
ANNEX 1
OUTLINE OF THE RESULTS MANAGEMENT
FRAMEWORK OF THE AFRICAN DEVELOPMENT BANK
3
4
5
9
13
15
16
18
ABBREVIATION LIST
ADF
ADER
AfDB
AFT
AGF
ATI
AU
ECOWAS
FIs
IGAD
MDBs
NEPAD
NTF
African Development Fund
Annual Development Effectiveness Report
The African Development Bank
Agricultural Fast Track Fund
African Guarantee Fund
The Aid Transparency Index
African Union
Economic Community of West African States
Financial Intermediaries
Intergovernmental Authority for Development
Multilateral Development Banks
New Partnership for Africa’s Development
Nigeria Trust Fund
OECD
PBA
RMCs
RMF
RRS
SE4All
SEFA
SMEs
TYS
UNECA
VfM
Organisation for Economic Co-operation
and Development
Performance-Based Allocation
Regional Member Countries
Results Management Framework
The Results Reporting System
Sustainable Energy for All
Sustainable Energy Fund for Africa
Small and Medium-sized Enterprises
Ten Year Strategy 2013-2022
United Nations Economic Commission for Africa
Value for Money
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EXECUTIVE SUMMARY
The African Development Bank (AfDB) extends loans and grants
to African countries to promote sustainable economic growth and
reduce poverty in Africa. Today, the Bank stands out as a preferred
partner for governments and private sector actors in Africa;
a status achieved through increased lending, a decentralisation
process and the Bank’s strong leadership and close relationship
with African leaders. Denmark’s relationship with the AfDB
was reinforced by former President Kaberuka’s engagement
in the Africa Commission (2008–2011) which confirmed a sense
of common values, in particular related to the importance of green
and inclusive private sector-led growth for political and economic
development in Africa. Denmark expects to further strengthen
the close and value-based relations with the Bank under the new
leadership of President Adesina.
AFRICAN DEVELOPMENT BANK
AfDB established
Member countries
Head quarters
Country offices
Cumulative loan and grant
approvals 1967-2014
Human resources
President
(from September 2015)
Danish voting power
1964
54 African member countries;
26 non-regional member countries
Abidjan, Cote d’Ivoire
36 country offices; 2 regional hubs
USD 114.82 billion
2065, incl. 6 Danish staff
Akinwumi A. Adesina
1.193 pct.
Denmark supports the AfDB because
• Its strategies share the Danish development policy’s focus
on poverty reduction, sustainable growth, and private sector
involvement;
• It is a significant and trusted financial actor in Africa;
• It has been instrumental in setting the African agenda
on green growth, sustainable energy and climate change
as well as private sector development;
• It addresses long term development needs crucial
for the prevention of migration;
• It is stepping up its engagement with situations
of fragility in Africa;
• As an African managed, pan-African institution it is
a preferred partner for African countries;
• It is an institution continuously striving for efficiency
and effectiveness.
Key challenges for the AfDB
• Finding the right balance between the non-concessional
AfDB window and the concessional ADF window;
• Slow implementation of projects;
• Maintaining relevance and status as preferred partner
as well as strong membership support.
Denmark will expect the AfDB to
• Become a transformative actor for achieving
inclusive, green and private sector driven growth;
• Promote stability in fragile situations;
• Lead the quest for good governance and the fight
against corruption in Africa;
• Mainstream gender equality across programmes
and in its own organisation.
Denmark will follow-up by
• Actively engaging in the constituency coordination;
• Monitoring the Bank’s performance through
the Annual Development Effectiveness Report;
• Promoting Danish priorities in the replenishment
cycle negotiations;
• Maintain level of engagement through regular
replenishments and acquisition of shares.
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1
OBJECTIVE
This Strategy for Denmark’s Engagement
with the African Development Bank Group
(AfDB) forms the basis for the Danish
contributions to the AfDB, and it is the
central platform for Denmark’s dialogue
and partnership with the Bank. Building
on the close cooperation between
Denmark and the AfDB, it sets out Danish
priorities for the Bank’s performance
within the overall framework established
by the Bank’s own Ten Year Strategy
2013–2022 (TYS), which pursues the two
overarching objectives of inclusive growth
and transition to green growth. The new
President of the Bank, Akinwumi Adesina,
has launched an ambitious work
programme and identified five areas
where the Bank will focus its business
in the coming years: light up and power
Africa, feed Africa, integrate Africa,
industrialise Africa and improve the
quality of life. The focus areas (named
the “high fives”) are an integral part
of the TYS. Denmark will work closely
with like-minded countries towards
the achievement of the priorities set
out for the Bank.
This first Danish Organisation Strategy
formulated for the AfDB will cover the
next three year replenishment cycle
of the African Development Fund (ADF)
through which Denmark‘s main financial
contributions to the Bank are channelled.
The negotiations for the ADF-14 replenish-
ment (2017–2019) will take place in 2016,
and the strategy will serve as a basis
for Denmark’s position throughout
the replenishment negotiations.
The overall priorities for Denmark’s
development cooperation include fighting
poverty and advancing security, enhancing
sustainable growth and employment,
preventing migration through long-term
development and advancing gender
equality. The present strategy will outline
how these priorities are taken forward
in the cooperation with the AfDB.
Four priority areas for Danish support
to the AfDB in 2016–2019 are identified
as follows:
1. Encouraging the AfDB to become
a transformative actor for achieving
inclusive and green growth champi-
oned by the private sector and leading
SE4All in Africa;
2. Advocating a continued strengthened
role of the AfDB in promoting stability
in fragile situations;
3. Supporting the AfDB in leading the
quest for good governance and fight
against corruption;
4. Monitoring the quality of implementa-
tion of its Gender Strategy across all
operations.
A new strategy for Denmark’s develop-
ment policy will be formulated in 2016.
As deemed necessary this present strategy
for the AfDB will be updated in light of
the new development policy as well as
in light of results of ADF-14 replenishment
negotiations.
The two following sections will provide
the background for these priority areas
by giving an overview of the AfDB as
an organisation, Danish cooperation
with the Bank and by analysing AfDB’s
strengths and challenges. Section 4
describes the priorities under each
area and the tools needed to follow-up.
A budget for the current and expected
future Danish support is provided
in section 5, before the final section
assesses the most central risks to AfDB’s
delivery on the Danish priorities.
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2
THE AFRICAN DEVELOPMENT BANK
AND DANISH ENGAGEMENT
2.1 MANDATE, MISSION,
MANAGEMENT AND FINANCIAL
SITUATION OF THE AFDB
AfDB is a multilateral development bank
that extends loans and grants to African
countries and private sector entities to
promote sustainable economic growth and
reduce poverty in Africa. It was founded in
1964 and has been supported by Denmark
since 1973. It has 80 member countries
in total, comprising 54 regional member
countries and 26 non-regional member
countries primarily from Europe, America
and Asia.
The African Development Bank Group
consists of three legally separate but
complementary institutions: the African
Development Bank (AfDB), the African
Development Fund (ADF) and the Nigeria
Trust Fund (NTF).
1. The AfDB is the non-concessional
window of the Group. It finances
projects through loans to sovereign
or private-sector counterparties,
guarantees and equity investments.
It also provides technical assistance.
Currently, the AfDB can only extend
loans to 19 of the 54 sovereign
governments of Africa, but it can extend
loans to private-sector counterparties
across the continent.
The institution’s resources come
from ordinary and special resources.
Ordinary resources comprise:
1) the subscribed shares of the
authorized capital, a portion of which
is subject to call in order to guarantee
AfDB borrowing obligations; 2) funds
received in repayment of AfDB loans;
3) funds raised through AfDB borrow-
ings on international capital markets;
4) income derived from AfDB loans; and
5) other income received by the Bank,
e.g. income from other investments.
Under the agreement establishing
the AfDB, the Bank is authorized
to form or be entrusted with adminis-
tering and managing special funds,
which are consistent with its purposes
and functions. In line with this
provision, the ADF was established with
non-African states in 1972 and the NTF
with the Nigeria Government in 1976.
2. The ADF is the concessional window
of the Bank Group. It finances projects
in low-income African countries that
are not normally eligible to borrow from
the AfDB. The Fund’s resources come
from periodic contributions by donor
countries. The 40 ADF-eligible countries
include those that are increasing their
economic capacities and heading
toward becoming the new emerging
markets as well as those that remain
fragile and need special assistance
for basic levels of service delivery.
The ADF is challenged as nearly half
its client countries are fragile states,
and thus the Fund is facing a situation
where even stable economies can
become fragile due to a single internal
or external shock.
The ADF contributes to poverty
reduction and economic and social
development in the least developed
African countries by providing
concessional funding for projects and
programs, as well as technical assis-
tance for studies and capacity-building
activities. The Fund has cumulatively
invested USD 45 billion over its
40 years of operationalisation on the
African continent. The Fund’s resources
are replenished every three years by
its donor countries.
3. The NTF is a comparatively small
fund that extends grants and loans
at concessional rates to projects
of no more than USD 10 million in
low-income countries. It is funded by
a contribution of USD 151 million from
the Government of Nigeria and expires
in 2018. Projects are selected based
on annual calls for proposals.
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According to the founding agreements
of the Bank, it shall base its decisions
on economic considerations solely, and
in the case of the ADF, economic as well
as social development considerations.
The Bank is the leading development
finance institution in Africa. It enjoys
a triple-A rating from Standard & Poor’s,
Fitch and Moody’s, who in September
2015 confirmed the stable outlook based
on a combination of financial strength/
capacity, prudent financial management
and policies, as well as very strong
shareholder support including the
guarantees put forward through capital
subscriptions by member states as
shareholders. These strengths offset
the generally low quality of AfDB’s loan
portfolio, which mainly results from
the challenging regional environment.
1
The Bank Group can also establish
and administer special funds, e.g. in
accordance with bilateral arrangements
with donors.
The main task of the Bank is to provide
financial support and technical advice to
governments and to implement projects
and programmes in order to promote
economic and social development in
Regional Member Countries (RMCs), e.g.
via Sector Investment Programs. In the
poorest countries it does so by extending
concessional loans and grants via the ADF.
In middle-income countries it primarily
extends loans at, or near, market terms.
Over the last ten years, the Bank has
increased its lending to private sector
operations, including Public-Private
partnerships.
2
In 2014, approved operations totalled
approximately USD 7.1 billion financed
as follows:
• AfDB: USD 4.5 billion
• ADF: USD 2.2 billion
• NTF: USD 16.2 million
• Special Funds: USD 343 million
About half of the proportion of the
Bank Group’s private sector lending
is channelled through financial inter-
mediaries (FIs) including commercial
banks, micro-finance institutions, private
equity funds, regional and national
development banks, and insurance and
leasing companies. The Bank utilizes
FIs to reach projects within sectors,
such as agriculture, industry, and small
or medium-scale enterprises, which are
either too small for the Bank’s supervision
capacity, or whose financing needs are
better addressed by private inter-
mediaries. AfDB’s guidelines for financial
management ensure that the Bank only
cooperates with economic accountable
institutions that are legal entities in the
country they operate, have a certain level
of credit rating and meet internationally
accepted standards for accounting
and auditing. The Bank also requires
that FIs continuously report on projects’
financial and development results,
as well as any violations of environmental
and social standards, as part of their legal
agreement with AfDB. Through the Private
Sector Strategy (2013–2017), the AfDB
seeks to refine its guidance on the use
of FI’s in order to address incidents of
weak reporting and insufficient monitoring
of operations through FIs, where develop-
ment objectives have not been sufficiently
defined. The strategy contains a number
of initiatives that include: 1) strengthening
the parameters for performance of this
type of operations; 2) strengthening FI’s
management practices through technical
assistance; and 3) ensuring that FIs are
held accountable for making sure that
the AfDB’s funding supports the targeted
development purposes. Denmark will
continuously monitor the implementation
to ensure that the Bank strengthens
its ability to demonstrate development
results vis-à-vis economic growth.
Initially, the Bank’s membership structure
included only African governments, but
it opened up to non-regional governments
like Denmark in 1982. Non-regional
members contribute to the AfDB’s capital,
but cannot borrow from it. The AfDB
currently has 76 shareholders being
54 African governments, 26 governments
1 Moody’s Investors Service. September 2015.
2 For instance the Lake Turkana Wind Power Project in Kenya, where inter alia the Danish Investment Fund for Developing Countries (IFU),
the Danish Export Credit Agency (EKF) and Vestas are engaged as investors and financial cooperation partners.
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from the OECD and Middle East. African
members account for 60 pct. of the AfDB’s
capital and non-regional shareholders for
40 pct.
The balance of participation between
regional and non-regional countries is
reflected in AfDB’s governance structure.
Its highest decision-making body is
the Board of Governors, which includes
one representative per member country.
It meets annually to review the
implementation of past policy decisions
and to deliberate on new policy issues.
The State Secretary for Development
Cooperation is the Danish member
of the governors’ board, while the Director
of the Africa Department is the Alternate
Governor. Decisions by the Board of
Governors require a two-third majority.
As each member’s number of votes
is based on the share of that member in
the capital stock of the Bank, the voting
rule ensures that any significant decisions
require support by both regional and
non-regional members.
A Board of Directors, which is responsible
for overseeing AfDB’s operations,
is elected by the Board of Governors.
The Board of Directors comprises
13 representatives elected by regional
countries, and 7 representatives
elected by non-regional countries.
Each representative acts on behalf of
a constituency comprised by a number
of member countries. Decisions in
the Board of Directors equally require
a two-third majority of votes, weighed
by the share of capital of the members
represented by each Director. Denmark
is represented in the Board of Directors
through the Nordic-Indian constituency,
consisting of Denmark, Norway, Sweden,
Finland and India. Finland currently holds
the post of executive director. Denmark
last held the rotating post of Executive
Director from 2010–2013. Currently,
a Danish advisor is placed in the Directors’
Board. The constituency has to vote as
a unit in the decisions taken in the Board
of Directors.
Notwithstanding the inclusion of
non-regional members, the AfDB
maintains an African character derived
from its geography and ownership
structure. It exclusively covers Africa.
It is also headquartered in Africa,
and its president is always an African.
The AfDB is generally regarded as a
preferred partner for African governments.
Its response to the global financial
crisis, support to national development
strategies, its fragile states strategy,
its global advocacy of African positions,
its leadership and staffing by Africans
and the decentralisation have contributed
to a clearer image of the Bank’s activities
and its performance.
As a regional development institution,
the AfDB increasingly holds an important
role in terms of advocacy, coordination of
information and policy initiatives, setting
the political agenda on the continent
as well as influencing the allocation
of financial resources due to the
size of the investments it undertakes.
In addition, the Bank also plays a vital
role in transforming development
needs into commercial opportunities,
including investments in large infra-
structure projects, which are increasingly
demanded by African member countries
and considered to be essential for
continuing growth on the continent.
This is also of great importance for Danish
companies that may have the capacity
and interest in investing and doing
business within Africa.
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2.2 SUMMARY OF DENMARK’S
ENGAGEMENT WITH THE BANK
Denmark became a member of the ADF
in 1973 and subsequently acquired the
first shares of the AfDB in 1982. Currently,
the relative Danish share value is 1.2 pct.
which positions Denmark as the 10th
largest shareholder among the 25
non-regional member countries, while
USA is the largest, followed by Japan
and Germany.
Links between Denmark and the AfDB
were deepened in 2008 when the then
Prime Minister Anders Fogh Rasmussen
appointed President Donald Kaberuka as
member of the Danish Africa Commission.
The Commission aimed at helping Africa
benefit more from globalisation. Drawing
on existing analyses and best practices,
it made specific policy recommendations
and devised concrete initiatives.
The Commission addressed ways to create
employment for young people through
private sector-led growth and improved
competitiveness of African economies.
There was special emphasis on creating
decent jobs, fostering entrepreneurship,
and providing greater opportunities for
young African women and men through
education, skills development and access
to finance. Two concrete initiatives
were subsequently launched under the
leadership and coordination of the AfDB,
i.e. the African Guarantee Fund (AGF) and
the Sustainable Energy for Africa Trust
Fund (SEFA). The continued success
of the funds remains a strong common
interest of Denmark and the AfDB. The
overall objective of the AGF is to increase
employment within the private sector
in Africa, including young people
and women, in order to contribute to
sustainable economic development
in the region. The fund, which today
is fully functioning on commercial terms,
provides guarantees to African financial
institutions’ lending to Small and Medium
sized Enterprises (SMEs). The objective of
the SEFA fund is to increase the production
of renewable energy (RE) and energy
efficiency (EE) through support to SMEs
within the RE/EE sector, thereby creating
economic growth and jobs as well as
reducing poverty. SEFA is a multi-donor
trust fund managed by the AfDB.
The contributors are Denmark, USA
and United Kingdom.
The joint engagement of Denmark and
the AfDB in the follow-up to the Danish
Africa Commission have served to
underscore a shared interest in private
sector development as a means to
promoting sustainable and inclusive
growth in Africa. Denmark expects to
further strengthen the close and value-
based relations with the Bank under
the new leadership of President Adesina.
Due to the recent membership of South
Sudan, new shares for subscription to the
capital of the Bank have been announced
along with a number of un-subscribed
shares from the latest capital increase.
Denmark has purchased its allocated
share in order to support the South Sudan
membership and maintain the relative
strength of Denmark’s position and the
Nordic-Indian constituency in the Bank.
Apart from the shares, Denmark’s financial
contribution mainly consists of regular
contributions to the ADF replenishments,
where the latest ADF13 (2014–2016) in
2013 was funded with DKK 630 million,
making Denmark the 17th largest
contributor.
In addition, Denmark currently provides
the following earmarked contributions
to special funds:
• Sustainable Energy Fund for Africa
(SEFA): DKK 300 million (2011–2018);
• Agricultural Fast Track Fund (AFT):
DKK 10.5 million (2013–17);
• Multi-donor trust fund for transition
in North Africa: DKK 20.3 million
(2012–2016).
The use of special funds/trust funds
to promote particular policy objectives
requires active engagement in the
individual trust fund’s governing board
and the funds are often administered in
a way that maintains Danish engagement
over a prolonged period of time.
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3
STRATEGIC CONSIDERATIONS
3.1 JUSTIFICATION AND RELEVANCE
The African Development Bank Group
is a suitable vehicle for advancing Danish
development priorities because:
• Its policies and strategies share the
Danish development priorities’ focus
on poverty reduction and sustainable
growth;
• It is a very significant and trusted finan-
cial actor in Africa, where Denmark has
considerable political and development
interests;
• It addresses long term development
needs crucial for the prevention of
migration;
• It is instrumental in setting the African
agenda on green growth, sustainable
energy and climate change;
• It is enhancing its engagement with
situations of fragility in Africa;
• As an African owned, African managed,
pan-African institution it holds a status
as preferred partner for African coun-
tries;
• It is an institution continuously striving
for efficiency and effectiveness.
To position the Bank as the partner of
choice in Africa, as a catalyst, adviser and
knowledge broker, and as Africa’s premier
development institution, it has adopted
the aforementioned Ten Year Strategy
2013–2022 (TYS), which pursues two
overarching objectives. The first is to make
growth inclusive by broadening access to
economic opportunities for more people,
countries and regions, while protecting
the vulnerable. The second, to make
growth sustainable by helping the
continent transition gradually to green
growth. The strategy reflects aspirations
of the entire African continent, firmly
rooted in an African understanding
and experience of how far the continent
has come in the last decade, and where
it wishes to go in the next. It assumes
that if the quality of growth is improved
it can put Africa on the path to structural
transformation.
The priorities of the TYS and the
abovementioned “high five” focus areas
of the new President corresponds well
with Danish development priorities, as
expressed in The Government’s Priorities
for the Danish Development Cooperation
2016. Through the Danish engagement
with the Bank at the level of the Board,
there are possibilities to further influence
the operationalization and prioritisation of
the Bank’s strategy. However, in a number
of specific areas there is already a close
harmonisation between the TYS and
Danish development priorities, including:
Inclusive growth and green growth
This includes environmental management
aspects, not least in the fields of
sustainable energy and climate change,
and infrastructure projects, which
underpin agricultural production.
The Bank takes part in initiatives to
address climate change in Africa and
works together, inter alia, with the African
Union (AU), the United Nations Economic
Commission for Africa (UNECA) and
the African Ministerial Conference on
the Environment. President Adesina
has recently made energy one of his top
five priorities for the Bank. Furthermore,
the Bank is championing Sustainable
Energy for All (SE4All) and works closely
with Denmark on the SEFA initiative,
which forms a basis for a continued strong
alliance between Denmark and the Bank
in the field of sustainable energy. SEFA,
coupled with related Bank operations
within sustainable energy, can step
up to become a transformative actor
for achieving SE4All in Africa. The Bank
has also launched its Green Growth
Framework: “Entry points for action for
transition to Green Growth in Africa”,
which opens possibilities for closer
engagement with a number of Danish
institutions and funds. With energy access
as a key driver for Africa’s economic
growth and human development and a top
priority of President Adesina, the Bank is
expected to provide a concrete dimension
to cooperation under the overarching
green growth agenda, in support of the
integration of energy into the 2030
Agenda for Sustainable Development.
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Stability and protection
Over the past decade, the AfDB has taken
several steps to adopt a more explicit
and systematic approach to fragile states.
It has endorsed the New Deal for Engage
-
ment in Fragile States. An evaluation of
the Bank’s assistance to fragile states
stressed that it has a strategic role to play
in fragile situations in Africa, including
the Horn of Africa, the Sahel, the Manu
River and the Great Lakes regions.
The Bank is well positioned to address
key challenges such as partnership and
alignment, roots of fragility and growth
strategies, regional dimensions, mechan-
isms and modalities of financing.
It operates at the advocacy and strategy
level by convening with other key
pan-African actors, at the coordination
level with key regional and international
actors, as well as at the operational level
by funding infrastructure projects etc.
Together with the AU and UNECA,
the AfDB is centrally placed in the regional
institutional structure in Africa. While the
AU addresses peace and security issues,
the AfDB holds a key role in the
follow-up of fragile situations in terms
of continuously supporting the further
development processes.
The AfDB’s Strategy for Addressing
Fragility and Building Resilience
(2014–2019) is designed to place it
at the centre of Africa’s efforts towards
fragility by making AfDB assume stronger
leadership and engage in strategic
alliances. Key elements of the strategy
include; 1) enhancing the understanding
of drivers of fragility; 2) applying a
fragility-lens to identify, respond to and
prevent fragile situations; 3) building
resilience at national and regional level,
also by integrating a gender perspective
in all programs; 4) assisting governments
to address capacity gaps; 5) strengthening
the role of non-state actors; and
6) working closer with partners at
country, regional, and international
levels. The Bank thereby seeks to address
fragility at different stages: pre-crisis,
during crisis and after crisis, with greater
flexibility for using its financial resources.
The Bank’s strategic prioritisation
of fragility is closely affiliated with
the Danish focus on peace and stability
in key areas of development engagements,
as expressed in Denmark’s Policy towards
Fragile States (2010–2015) as well as
the principles in Denmark’s Integrated
Stabilisation Engagement in Fragile
and Conflict-affected Areas of the World.
Governance is at the centre of challenges
in fragile states and the Bank’s
Governance Strategic Direction and Action
Plan – GAP II (2014–2018) is built around
three strategic pillars: 1) public sector
and economic management; 2) sector
governance; and 3) investment and
business climate. Combating corruption
in both the public and private sectors
is a crosscutting objective. These areas
correspond to the priorities of Denmark’s
development cooperation in the area
of human rights and democracy.
Gender equality and vulnerable groups
The Bank has with strong support and
engagement from donors, including the
Nordic-Indian Chair, over a long period
gradually increased its focus on gender
issues. The Bank’s approved Gender
Strategy for 2014–2018 is also in line
with Danish development priorities.
A notable aspect is that the Bank focuses
on gender-equality in its operations
as well as at corporate level. The former
president of the Bank also appointed
a Special Gender Envoy. In terms of
vulnerable groups, the Bank specifically
targets Africa’s least developed countries
with a clear pro-poor focus in areas such
as microfinance. However, it is recognised
by the AfDB that it should further enhance
its definitions of vulnerable groups and
its indicators for measuring the inclusion
of the poor and vulnerable in projects
and programmes.
Regional integration
Lastly, the intensified efforts of collabora-
tion with other key African actors such
as the AU, the New Partnership for Africa’s
Development (NEPAD) and the various
regional economic communities is well in
line with a Danish emphasis on regional
integration. In this sense, the Bank is well
placed to play a leading role in fostering
Africa’s economic integration to create
larger, more attractive markets, to link
landlocked countries, including fragile
states, to international markets and
support intra-African trade. Private
sector-led development has received
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more attention and financing volume
over the past five years and this trend
is foreseen to continue.
The Bank’s continued focus on efficiency
and effectiveness is demonstrated well
by the work done to develop a Results
Management Framework (RMF) and
strengthening the results-oriented culture.
framework covering the entire Bank Group,
new reporting tools at the organisation-
wide level and strengthened practices in
the area of human resource management.
The Danish Multilateral Development
Cooperation Analysis from 2013
commended the Bank for its reform
efforts, which were seen to have resulted
in improved levels of transparency, greater
focus on human resource and change
management, and a more strategic focus
in its overall operations. The Bank’s
prudent management of its funds during
the challenges of the financial crisis was
also praised. Keeping its triple-A rating
is paramount for the Bank to be able to
play the role as a financier and financial
intermediary as expected by its RMCs,
while ensuring continuous support
by member states through capital
subscriptions is also of utmost
importance.
The British Multilateral Aid Review of
2011 assessed the Bank very positively,
highlighting its role in assisting RMCs on
public financial management; its strong
focus on wealth creation (through
infrastructure and regional integration),
and on governance through budget
support instruments. In terms of results
reporting, the report considered the
results framework well focused and well
led. This was further articulated in a
follow-up in 2013, which noted that the
most notable achievement was the annual
reporting of the Bank’s results framework.
Other strong points highlighted in areas
of priority to Denmark was the fact that
the Bank increased its staff presence,
authority and performance in fragile
states, and that implementation of
the Climate Change Action Plan became
a more clearly defined objective.
The AfDB faced serious governance
issues in the 1990’s. Since then, it has
strengthened procedures and safeguards
and maintained a Triple-A rating from
international rating agencies. During
the leadership of the former President,
Donald Kaberuka, the Bank further
underwent significant organisational
changes, notably the delegation of
authority from headquarters to country
level. However, the Bank continues
to struggle with slow implementation
of projects and weak representation
at the country level. The Bank’s well
elaborated results framework strengthens
shareholders’ possibility for monitoring
overall performance and thereby
improving the basis for a structured
dialogue on these issues. In September
2015 Akinwumi Ayodeji Adesina took
office as new President for an initial
five-year term. As described above the
new president has launched an ambitious
programme for his term in office and
expectations for continued strong
leadership of the Bank from RMCs
and donors are high. Besides ensuring
the implementation of the ongoing
institutional reforms and consolidating
the return of the AfDB’s headquarters from
3.2 OPPORTUNITIES
AND CHALLENGES
AfDB stakeholders surveyed by MOPAN
in 2009 and 2012 largely considered
the Bank’s performance as adequate
in most areas assessed. In both years,
survey respondents indicated the need to
increase its delegation of decision-making
authority to the country level. Since 2012,
a comprehensive decentralisation process
has been underway, and today the Bank
is represented in 37 countries across
the African continent. This poses not only
new opportunities but also organisational
challenges, including ensuring that
employees have the relevant skill sets
and capacities to deliver the same quality
of partnership previously offered by
the headquarters. In recent years, the
AfDB has undertaken a reform process
to improve its effectiveness, efficiency
and corporate governance. Since the
creation of the Bank’s Quality Assurance
and Results Department in 2008, it has
implemented a number of initiatives,
including the development of a results
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Tunis to Abidjan, it will be crucial for
the new President to maintain the Bank’s
position as a preferred partner for African
governments, and increasingly also for
private sector actors.
The AfDB continues to play an important
role in the international development
cooperation architecture. The all-time high
ADF-12 replenishment in 2010 enabled
the Bank to consolidate its operations and
position itself as a trusted and preferred
partner for African nations. However,
even if future ADF replenishments would
reach the same high level, the Bank
would still only have a limited capacity to
respond to the growing financial needs
and future growth path scenarios of ADF
eligible countries. Recognising these
challenges, the Bank is currently
contemplating, at the request of donors,
innovative financing modalities such as
partial credit guarantees, which could be
used as levers for borrowers to increase
credit capital. Specific proposals to
this effect came out of the ADF-13
replenishment negotiations in 2013
resulting in new initiatives such as the
Africa50 Fund, which is not yet fully
operationalised. Furthermore, a priority is
to look into modalities for new trust fund
arrangements with bilateral donors and
other actors (e.g. The Bill and Melinda
Gates Foundation), who would be
interested in making capital available
for the Bank on commercial terms.
While the ADF-13 replenishment was
completed successfully the continued
economic and financial challenges
in donor countries remain a risk for
the coming ADF-14 replenishment.
Thus, it continues to be imperative
that the Bank identifies new modalities,
including innovative financing
mechanisms under the ADF, to enhance
its ability to respond positively to the
increasing demands for its financial
support. Further, attention must be paid
to the relative size of the ADF vis-a-vis
the AfDB window and the balance between
the two. While sources of concessional
funding are at risk of declining,
the demand on the contrary is rising.
Meanwhile, the AfDB window is
adequately sourced, but demand is
concentrated on few North-African
countries, even if the expansion of private
sector loans have resulted in AfDB
engagement in more countries than
traditionally seen. Given the diversity
of the Bank’s clients, it will be important
for its continued relevance to have access
to diversified funding instruments
and sources, as well as harbouring
the necessary capacity to guide its RMCs
to the most appropriate choices and
solutions. The Bank is fully aware of these
issues and its new Resource Mobilization
and External Finance Department has been
established with the aim of developing
a strategy for financing the TYS in the light
of the above challenges.
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4
PRIORITY AREAS AND INTENDED
RESULTS FOR 2016–2019
4.1 DANISH PRIORITIES
FOR 2016–2019
Given the size and the scope of the
Bank’s operations as well as its profound
engagement across the entire African
continent, four priority areas of interests
to Denmark have been identified. While
Denmark stays fully committed to the
Bank’s TYS as a whole, as well as the
“high five” priorities of president Adesina,
the priority areas are selected to highlight
the strategically most important agendas
from a Danish perspective.
An opportunity for consistently seeking
to inspire and influence the decision
making processes is offered through
the coordination in the Nordic-Indian
constituency. Currently, coordination
takes place through weekly tele-
conferences and through written
procedures as required. However,
the coordination could be more effective,
and Denmark is working on a proposal for
a more structured coordination between
constituents. Effective constituency
coordination is the basis for active
engagement by the Nordic-Indian
Executive Director’s Office in board
meetings. In addition, through the regular
replenishments of the ADF, and through
active participation in the SEFA fund,
Denmark will contribute to a strong
value-based profile of the Nordic-Indian
constituency and the AfDB by:
• Encouraging the Bank to become
a transformative actor for achieving
inclusive and green growth champi-
oned by the private sector and
leading SE4All in Africa;
• Participating in the ADF and
underpinning a strengthened role
of the Bank in promoting stability
in fragile situations;
• Supporting the Bank’s promotion
of good governance and the fight
against corruption;
• Monitoring the quality of implementa-
tion of its Gender Strategy across
all operations.
The motivation for prioritising these four
areas of interest is elaborated below.
Encouraging the Bank to become
a transformative actor for achieving
inclusive and green growth championed
by the private sector and leading SE4All in
Africa.
The key vehicle for Danish influence
in this area is the SEFA initiative, which
forms the basis of the alliance between
Denmark and the Bank in the field
of sustainable energy. Denmark will use
its favourable position with the Bank
as a founding donor to SEFA to leverage
its influence with the aim of strengthening
the Banks position as a major actor
in respect to climate change, green
and inclusive growth in Africa. Denmark
seeded the Trust Fund with DKK 300
million in 2011. It is the intention that
100 pct. of this initial funding will be
committed to a variety of projects that
increase prevalence of renewable energy
in the energy mix, stimulates gender
disaggregated job creation, especially
youth employment. Denmark will continue
to pay special attention to results
monitoring and will conduct a review
of SEFA in 2016. Furthermore, Denmark
will take special interest in continued
development of AfDB’s private sector
portfolio to advocate green solutions,
which hold great potential for job creation.
Advocating a strengthened role of
the Bank in promoting stability in fragile
situations.
The AfDB and Denmark share
a strategic focus on maintaining and
promoting stability and protection in
fragile states across the African continent.
This is most evident in two regions of key
priority to Denmark in Africa, namely
the Sahel and the Horn of Africa, where
longstanding conflicts have strong
regional ramifications. The Bank works
in a number of fragile situations at
the advocacy, strategy and coordination
level, convening with key regional and
international actors, including the AU, and
has also expanded operations in fragile
states, funding infrastructure projects,
providing crucial budget support and/or
sector budget support with stabilising
effects etc. Denmark will focus on
shaping and following the Bank’s planned
achievements and results, pursuing policy
dialogue in order to inspire operations
and seek synergies at the country level,
especially in countries of particular
interest to Denmark and where the Bank
plays a particularly active role in donor
coordination. At the international level for
example through the Somalia New Deal
Compact; at the regional level through
dialogue with relevant regional organi-
sations, e.g. IGAD and ECOWAS; and
at the local level through international
donor coordination groups, e.g. the
budget support donor group in Mali
and all other relevant coordination fora.
At the bilateral level, Denmark will
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encourage embassies to draw on the
Bank’s fragility analyses of individual
countries and provide feedback on
the experience.
Supporting the Bank’s promotion of good
governance and fight against corruption.
The Bank’s resources are allocated
through a Performance-Based Allocation
(PBA) system, which recognises that
investments will only be sustainable
in situations where good governance,
accountability and transparency standards
are met. This gives the Bank unique
legitimacy in its role as promoter of good
governance even if it could be more clearly
expressed. While appreciating that the
Bank plays a special role as preferred
development partner for many African
nations, Denmark will utilise the
constituency coordination network to
influence the Bank’s policies, including
on human rights and good governance.
Denmark will be a strong supporter of
the Bank’s oversight, control and quality
assurance systems, which are considered
very well developed. One of the Bank’s
strengths is indeed its control and
oversight environment. Fighting corruption
and illicit flows in its member countries is
an integral part of the Bank’s governance
work. Financial support to governance
generally happens through budget
support operations complemented by
institutional support projects. These help
RMCs to promote prudent macroeconomic
policies, efficient revenue mobilisation,
and sound financial management systems,
which reduce risks of corruption. Denmark
will support the implementation of the
Bank’s commitments by paying particular
attention to good governance, public
sector reform and anti-corruption in
countries where Denmark has special
interests and where the Bank plays
a particularly active role in donor
coordination, e.g. Mali and Ghana for
budget support.
Monitoring the quality of implementation
of its Gender Strategy across all opera­
tions.
Gender is a special focus area
in the TYS, which the Gender Strategy
for 2014–2018 indicates. However,
the Bank’s documented contribution to
promoting gender equality and women’s
rights still remains limited, even if
it continuously stresses that gender
concerns are actively taken into
consideration at the project/programme
level. The Gender Strategy, rightly,
recognizes that it is necessary with a
two-pronged approach that addresses
mainstreaming at the operational level
in all of the Bank’s country and regional
operations and strategies, but which
also addresses the Bank’s own internal
transformation to make it a more
supportive, gender-responsive institution.
Denmark will pay special attention to
implementation of the strategy, including
its rolling action plan and budget and
gender-disaggregated indicators, through
regular monitoring of the Bank’s Results
Matrix Framework.
In addition to the areas of special interest,
Denmark will also explore opportunities
for seconding specialists to the Bank,
increasing the number of Danish staff and
strengthening commercial ties between
the Bank and Danish companies.
4.2 PRIORITY GOALS
AND RESULTS
The AfDB measures results through
a corporate management tool known
as the Results Management Framework
(RMF), which is framed around 100
performance indicators and organised
into four interconnected levels, consistent
with good practices in other Multilateral
Development Banks (MDBs). Adjustments
are made from time to time in order to
ensure the relevance and utility of the
framework. Reporting on the RMF mainly
happens through the Annual Development
Effectiveness Report (ADER). Denmark will
monitor the overall performance through
the annual ADER reports. Reference
is made to Annex 1 for an overview of the
four interconnected performance levels
as well as specific indicators. Denmark will
continuously support the Bank’s efforts
at improving efficiency and effectiveness,
especially through a strengthened results
focus and evolution of the monitoring
and evaluation practices.
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5
FINANCIAL CONTRIBUTIONS
(COMMITMENTS)
Past and expected future Danish contributions
to the Bank are presented below:
DANISH CONTRIBUTIONS
IN MILLION DKK
General Capital Increase, AfDB
Extraordinary Capital Increase, AfDB
Replenishment, ADF
Ear marked (Trust Funds)
Total
2010
250.0*
2011
2012
2013
2014
2015
2016
6.0
630.0*
300.0***
880.0
300.0
9.3
9.3
630.0*
10.5
640.5
11.0
11.0
6.0
630.0
630.0**
* Not including discounts for accelerated payments.
** Estimated contribution for ADF-14 (2017–2019).
*** Contribution to the Sustainable Energy Fund for Africa.
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6
MAJOR RISKS AND ASSUMPTIONS
The Risk Assessment focuses on contextual
and institutional risks, but excludes
programme risks as programming takes
place at operational level, and due to
the character of our engagement does not
involve a direct risk for Denmark. Generally,
risks related to the Bank’s operations
are minimal. The main risks are summerised
on the matrix on the following page:
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RISK FACTOR
CONTEXTUAL RISKS
Political turmoil
leads to losses.
LIKELIHOOD
BACKGROUND
TO ASSESSMENT
(LIKELIHOOD)
IMPACT
BACKGROUND
TO ASSESSMENT
(IMPACT)
RISK
RESPONSE
Unlikely
Uuncertainty associated with Insignificant
Arab Spring in North Africa
did not lead to losses despite
the concentration of
borrowers in that region
Increased private sector
lending could lead to
increase of non-sovereign
non-performing loans
Insignificant
Exposure is small
compared to balance
sheet
Regularly assess
the Bank’s capacity for
context analysis and
monitoring of framework
conditions
Historically,
non-performing loans
have been associated
with a few sovereign
actors. Increased
attention to the situation
of arrears is needed
to monitor future
developments
Continued commitment
to demonstrate
support by honouring
replenishment calls
and opportunities to buy
new shares
Increase in
non-performing
loans
Likely
Non-sovereign loans
are still only a small
proportion of overall
assets.
Non-performance
unlikely to threaten
ability to service
own debt
Decreasing strength
of members' support
Likely
Latest general capital
increase (AfDB, 2010) and
replenishment (ADF-13,
2014) saw unwaivered
member support. Strong
contractual support in terms
of callable capital. Bank
maintains conservative
risk-management policy.
Still, reduced aid budgets
could affect members’
support
Significant
Strong members’
support is key to
MDBs and in the case
of AfDB contributes
significantly to
offsetting effects of
the Bank's challenging
regional environment
INSTITUTIONAL RISKS
Effectiveness
at country level
Unlikely
Continued decentralisation
and delegation of authority
could trigger institutional
uncertainties, if not well
managed
Major
Bank’s status as
preferred partner
for African nations
is at stake, if local
representations do not
deliver same quality
and relationship as
previously done at
the HQ level
Increased dialogue with
country based
representatives of Bank.
Continued support to
Bank’s positions on
decentralisation
Slower than foreseen
implementation
Almost certain
Mainly associated with trust
funds and/or low capacity in
some RMCs
Minor
Discourage the use
of trusts funds.
Increased dialogue with
representatives
at country level
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ANNEX 1
OUTLINE OF THE RESULTS MANAGEMENT
FRAMEWORK OF THE AFRICAN DEVELOPMENT BANK
In 2013 the Board approved a new One
Bank Results Measurement Framework,
which was designed to document how
the Bank meets its ambitions, as outlined
in the TYS (2013–2022). To improve the
way it measures the AfDB’s contribution
development, focus is on measuring
intermediate outcomes rather than
outputs and generally seeking to improve
the Bank’s understanding of development
impact. The Bank is equally working to
support member countries’ capacities for
evidence based policy making through
investments in national statistical capacity
and through the Africa Community of
Practice for Managing for Development
Results. The Bank is well under way in
the evolution from measuring to managing
for development results and generally
strengthening the results-oriented culture
in the organisation. It is re-enforcing
the tools, processes and systems that
underpin the Results Measurement
Framework. This includes: tracking
results throughout the project cycle;
monitoring results in real time; Mapping
the Bank’s portfolio of ongoing operations
(MapAfrica) and assessing the Bank’s
development effectiveness though
thematic and country Development
Effectiveness Reviews. These are
discussed in more detail below.
To better communicate results to diverse
stakeholders, the AfDB has developed
a new geocoding tool ‘MapAfrica’ which
was launched at the Annual meetings
in May, 2014. MapAfrica is an interactive
platform that maps the geographic
locations of AfDB’s investments in Africa.
It has mapped 5988 sub-national
locations and a total of 602 active
operations with project information.
It allows the institution to examine the
geographic allocations of its resources,
and will provide stakeholders with a better
understanding of the Bank’s activities as
well as their impact on local development.
Users of the MapAfrica platform are
able to filter projects by country, sector
and year. With different filtering options,
policymakers and citizens can gain
a better understanding of the scope
of a project’s implementation and the
distribution of resources for development
by location. The platform design also
includes various data layers to enable
users to look at socio-economic and
country specific indicators alongside
activity implementation locations on the
maps. The Bank has also commissioned
the development of detailed content in
the form of results stories from the field.
In this respect, over 50 results pages for
MapAfrica have been developed to show
the results of the Bank’s interventions,
including beneficiary stories, photos
and videos.
Going forward, the Bank plans to engage
actively with civil society in regional
member countries, by developing
a feedback loop that enables AfDB to
capture feedback on its operations and
incorporate this knowledge directly into
project design and implementation.
The Results Reporting System (RRS)
was developed in 2013 to provide
Management with real-time information
on the results of ongoing operations.
It also tracks portfolio performance by
sector, region and country, providing
management with critical information
to further improve portfolio performance.
The RRS will be fully rolled out when
the Bank’s SharePoint infrastructure
is completed. The remaining work to be
done includes: Integration into the live
Operations portal currently developed
by Corporate Information Management
and Methods Department and roll out
in partnership with operations.
The Aid Transparency Index (ATI) of
2014 shows that the AfDB is one of the
strongest performers on transparency,
ranking in the top 10 of 68 donors by
gaining over 10 percentage points from
2013.
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Value for Money (VfM) is a key concern for
MDBs underpinning their credibility and
guiding them in improving their efficiency.
In this connection, MDBs are working
together on developing a conceptual
framework that will guide and improve
MDBs’ approach to VfM. AfDB is lead in
this process and has commissioned this
work on behalf of the other MDBs, which
includes providing overall guidance
to the process. The framework aims to
achieve a shared understanding of VfM
in the context of MDBs and will outline
– collective and individual – actions
the MDBs can take to improve VfM.
In doing so, MDBs recognise that they
have different mandates, management
structures, governance requirements
and scopes of activities, which all have
implication on the way they track and
measure VfM.
Denmark will monitor the AfDB’s overall
performance through the annual
Development Effectiveness Frameworks
that captures to which extent Africa is
making development progress, to which
AfDB’s operations are making an impact,
if its operations are managed effectively
and the extent to which AfDB is an
efficient organisation.
INDICATORS AND RESULTS FROM THE 2015
DEVELOPMENT EFFECTIVENESS REVIEW
ARE EXTRACTED ON THE FOLLOWING PAGES
Table 1
This table summarises the continent’s development progress between 2010 and
2014. The indicators are those in the One Bank Results Measurement Framework
2013–2016, reflecting the Bank’s two strategic goals: inclusive growth and the
transition towards green growth. Inclusive growth has five dimensions: economic,
spatial, social, and political inclusion, and promoting sustainable growth through
improved competitiveness. The transition to green growth has three: building
resilience and adapting to a changing climate, managing natural resources sustainably,
and promoting sustainable infrastructure.
Table 2
This table presents the contribution the Bank is making to development through
its operations in Africa. The Bank’s performance is measured by comparing expected
and actual achievements for all operations that have been completed.
Table 3
This table presents the Bank’s progress in achieving its 2014 targets
for portfolio management.
Table 4
This table presents the Bank’s progress in achieving its 2014 targets
for organisational performance.
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Good progress:
On average the group improved over baselines or reference groups
Moderate progress:
Results are mixed: on average the group of indicators show moderate improvement
Progress stalled or regressed:
On average the group of indicators stalled or regressed
Progress could not be measured
SUMMARY PERFORMANCE SCORECARD 2014
LEVEL 1: IS AFRICA MAKING DEVELOPMENT PROGRESS?
Inclusive growth
Economic inclusion
Spatial inclusion
Social inclusion
Political inclusion
Sustaining growth
Transition towards green growth
Building resilience
Managing natural assets
Reducing waste and pollution
LEVEL 2: ARE AFDB OPERATIONS MAKING AN IMPACT?
Regional integration
Cross-border transport
Cross-border energy
Infrastructure development
Transport
Water
Energy
ICT
Skills & technology
Vocational training
Education
Health
Private sector development
Private sector
Agriculture
Governance & accountability
Financial management
Public sector transparency
Competitive environment
LEVEL 3: ARE AFDB OPERATIONS MANAGED EFFECTIVELY?
Country-level results
Country engagement
Aid effectiveness
Effective & timely operations
Quality of operations
Portfolio performance
Learning from operations
Gender & climate change
Gender-informed operations
Climate-informed operations
LEVEL 4: IS AFDB AN EFFICIENT ORGANISATION?
Moving closer to our clients
Decentralisation
Connectivity
Engaging & mobilising staff
Human resources
Gender
Value for money
Cost-efficiency
IT services
For Level 1 Africa’s relative performance is measured by comparing its progress with progress in Africa’s peer group (low-and middle-income countries around the world);
for Level 2 the Bank’s performance is measured by comparing expected and actual achievements for all operations that have been completed; for Levels 3 and 4 the Bank’s
progress is measured against its progress in achieving its 2014 targets set out in the Bank’s Results Measurement Framework.
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Progress is strong and better than peers
1
Progress is positive but less than peers or no progress against the baseline
Regression against the baseline
Data are not available to measure progress
TABLE 1: DEVELOPMENT IN AFRICA (LEVEL 1)
ALL AFRICAN COUNTRIES
INDICATOR
INCLUSIVE GROWTH
Economic inclusion: Reducing poverty and income inequality
Gross domestic product (GDP) growth (%)
GDP per capita (US$)
Population living below the poverty line (%)
Income inequality (Gini index)
Spatial inclusion: Expanding access to basic services
Access to improved water source (% population)
Access to improved sanitation facilities (% population)
Access to telephone services (per 1000 people)
Access to electricity (% population)
Road density (km per km
2
)
Share of population living in fragile countries (%)
Social inclusion: Ensuring equal opportunities for all
Life expectancy (years)
Enrolment in education (%)
Enrolment in technical/vocational training (%)
Unemployment rate (%)
Women’s participation in the labour market (%)
Political inclusion: Securing broad-based representation
Mo Ibrahim Index of African Governance (index)
Tax and non-tax fiscal revenues (% of GDP)
Index of effective and accountable government (index)
Country Policy and Institutional Assessment (CPIA) score
Gender-Sensitive Country Institutions (index)
Sustaining growth: Building competitive economies
Intra-African trade (billion US$)
Cost of trading across borders (US$)
Economic diversification (index)
Global competitiveness (index)
Time required for business start-up (days)
Access to finance (% population)
125
2090
0.6
3.6
42
..
145
2384
0.6
3.61
26.2
32.9
23.4
2338
0.6
3.4
39.5
..
32.4
2675
0.6
3.5
20.4
14.1
51
22
2.7
4.0
..
51.5
22.3
2.8
3.4
0.3
47.5
15.5
3.2
3.4
..
48.1
16.6
2.9
3.5
0.3
58
45
12.5
10.6
54.7
59
45
11.4
8.2
64.5
57
38
8.2
6.38
72.9
58
39
9.9
6.4
73.1
66.5
40
538
40
7.9
22
68.2
39.1
742.1
42.5
8.2
23.4
59.8
24.1
367.6
22.4
6.7
22.8
61.5
25.1
565.7
24.0
7.1
22.9
4.8
905
42.0
42.3
4.3
948
42.3
41.7
6.0
352
48.3
40.3
5.8
380
45.7
40.9
OF WHICH ADF COUNTRIES
BASELINE 2010 LATEST 2014
2
BASELINE 2010 LATEST 2014
2
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Progress is strong and better than peers
1
Progress is positive but less than peers or no progress against the baseline
Regression against the baseline
Data are not available to measure progress
ALL AFRICAN COUNTRIES
INDICATOR
THE TRANSITION TOWARDS GREEN GROWTH
Building resilience and adapting to a changing environment
Food insecurity (% of population)
Resilience to water shocks (index)
Managing natural assets efficiently and sustainably
Institutional capacity for environmental sustainability
(index)
Agricultural productivity (US$ per worker)
3.5
537
3.5
547
29
..
27.6
3.87
OF WHICH ADF COUNTRIES
BASELINE 2010 LATEST 2014
2
BASELINE 2010 LATEST 2014
2
27.8
..
25.9
1.72
3.3
290
3.4
303
Promoting sustainable infrastructure, reducing waste and pollution
Production efficiency (kg CO
2
emissions per US$ of GDP)
Renewable energy (% total electricity produced)
0.18
16
0.16
16.3
0.18
78
0.16
77.3
.. = data not available; ADF = African Development Fund; GDP = gross domestic product; US$ = United States dollars.
1 Peers refers to other developing countries around the world. For two indicators – the Mo Ibrahim index and institutional capacity
for environmental sustainability – Africa is not assessed against peers but rather on the basis of progress on historic trends.
2 Where data are not available for 2014, the latest available values are used.
Notes:
ADF countries are the 37 lower-income AfDB member countries that qualify for concessional funding: Benin, Burkina Faso, Burundi,
Cameroon, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, Côte d’Ivoire, Djibouti, Eritrea, Ethiopia, Gambia,
Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Niger, Rwanda, São Tomé and Principe,
Senegal, Sierra Leone, Somalia, Sudan, South Sudan, Tanzania, Togo, Uganda, Zambia, and Zimbabwe.
Source:
AfDB, Carbon Dioxide Information Analysis Center, Education Statistics, Food and Agriculture Organization, Freedom House,
International Finance Corporation, International Labour Organization, IMF, International Telecommunications Union, Mo Ibrahim Foundation,
Organisation for Economic Co-operation and Development, UN Population Information Network, UN Conference on Trade and Development,
United Nations Development Programme, United Nations Children’s Fund, World Bank, World Economic Forum.
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Bank operations achieved 95% or more of their targets
1
Bank operations achieved 60–94% of their targets
Bank operations achieved less than 60% of their targets
Data are not available to measure progress
TABLE 2: HOW AFDB CONTRIBUTES TO AFRICA’S DEVELOPMENT (LEVEL 2)
2012–2014
INDICATOR
INFRASTRUCTURE DEVELOPMENT
Transport – Roads constructed, rehabilitated or maintained (km)
Transport – Staff trained/recruited for road maintenance
Transport – People educated in road safety, etc
Transport – People with improved access to transport
– of which women
2
Energy – Power capacity installed (MW)
– of which renewable (MW)
Energy – Staff trained/recruited in the maintenance of energy
facilities
Energy – People with new or improved electricity connections
– of which women
2
Energy – CO
2
emissions reduced (tons per year)
Water – Drinking water capacity created (m
3
/day)
Water – Workers trained in maintenance of water facilities
Water – People with new or improved access to water and sanitation
– of which women
2
ICT – People benefiting from improved access to basic ICT services
REGIONAL INTEGRATION
Transport – Cross-border roads constructed or rehabilitated (km)
Energy – Cross-border transmission lines constructed
or rehabilitated (km)
PRIVATE SECTOR DEVELOPMENT
Government revenue from investee projects and subprojects
(US$ million)
SME effect (turnover from investments) (US$ million)
Microcredits granted (number)
Microfinance clients trained in business management
Jobs created
– of which jobs for women
2
People benefiting from investee projects and microfinance
– of which women
2
Agriculture – Land with improved water management (ha)
Agriculture – Land whose use has been improved:
replanted, reforested (ha)
Agriculture – Rural population using improved technology
Agriculture – People benefiting from improvements in agriculture
– of which women
2
1,095
345
20,198
312
1,260,950
..
2,903,380
..
76,644
452,090
1,188,680
9,762,940
4,219,800
1,680
386
17,958
311
1,239,670
338,040
2,989,180
1,395,910
53,004
441,270
2,305,670
9,696,310
4,191,000
153%
112%
89%
100%
98%
103%
69%
98%
194%
99%
1,085
1,392
50,607
35,130
1,194,740
439,810
3,801,340
..
181,770
393,050
1,306,330
41,726,070
19,521,820
23
2015–2017
EXPECTED
EXPECTED
DELIVERED
6,184
9,142
663,240
19,510,540
9,897,520
1,334
142
20
9,669,470
5,839,810
635,030
76,890
5,391
4,010,340
2,568,570
602,780
5,126
9,376
859,400
19,350,390
9,816,280
1,334
142
20
10,869,730
6,452,060
706,700
58,940
5,234
4,234,650
2,712,240
602,780
83%
103%
130%
99%
100%
100%
100%
112%
111%
77%
97%
106%
100%
21,529
26,814
1,505,762
43,593,280
15,479,310
3,730
1,849
3,982
22,087,750
7,134,630
6,208,740
1,213,460
88,121
41,036,130
27,315,520
4,616,960
695
..
680
..
98%
..
5,279
1,215
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1604474_0024.png
Bank operations achieved 95% or more of their targets
1
Bank operations achieved 60–94% of their targets
Bank operations achieved less than 60% of their targets
Data are not available to measure progress
2012–2014
INDICATOR
SKILLS AND TECHNOLOGY
People benefiting from vocational training
– of which women
2
Classrooms and educational support facilities constructed
Teachers and other educational staff recruited/trained
People benefiting from better access to education
– of which female
2
Primary, secondary and tertiary health centres constructed/
equipped
Health workers trained
People with access to better health services
– of which female
2
GOVERNANCE AND ACCOUNTABILITY
Countries with improved quality of budgetary and financial
management
Countries with improved quality of public administration
Countries with improved transparency, accountability
and corruption mitigation in the public sector
Countries with improved procurement systems
Countries with improved competitive environment
19
6
19
3
13
16
6
13
3
7
84%
100%
68%
100%
54%
8,695
5,868
1,871
40,390
2,196,600
1,046,880
807
13,879
55,326,350
31,649,580
5,435
3,669
1,478
33,747
2,159,210
1,029,060
755
14 661
48,557,860
27,777,650
63%
79%
84%
98%
94%
106%
88%
2015–2017
EXPECTED
EXPECTED
DELIVERED
78,747
34,008
1,025
22,661
1,116,690
502,510
260
30 417
12,930,390
6,992,410
..
..
..
..
..
.. = data not available; ha = hectares; km = kilometres; MW = megawatts; m3 = cubic metres; SME = small or medium-sized enterprise;
US$ = United States dollars; ICT = information and communication technology
1 The performance indicator for governance applies different thresholds. Given the nature and attribution distance, the levels for the traffic
lights are different from other indicators: green, 75% and above, yellow, 50%–75%, and red, below 50%.
2 Gender-disaggregated figures are extrapolated from a subset of projects that have available data with baseline and actual data built in.
As more projects have started to include gender-informed design, these data are expected to become increasingly robust and complete.
Note:
UA figures from material converted at 1 UA = $1.53.
Source:
African Development Bank
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1604474_0025.png
We have achieved or are within 90% of achieving the target
We are regressing against the baseline or are within 80% of achieving the target
We are not moving towards the target
Data points are missing
TABLE 3: HOW WELL AFDB MANAGES ITS OPERATIONS (LEVEL 3)
AFDB
INDICATOR
STRENGTHENING RESULTS AT COUNTRY LEVEL
Average CSP rating (1-6)
Timely CPPR coverage (%)
Development resources recorded on budget (%)
Predictable disbursements (%)
Use of country systems (%)
New ESW and related papers (number)
DELIVERING EFFECTIVE AND TIMELY OPERATIONS
Preparing high-quality operations
Time to first disbursement (months)
New operations rated satisfactory (%)
Time for approving operations (months)
Ensuring strong portfolio performance
Disbursement ratio of ongoing portfolio (%)
Time for procurement of goods and works (months)
Operations with satisfactory mitigation measures (%)
Operations no longer at risk (%)
Operations at risk (%)
Operations eligible for cancellation (%)
Learning from our operations
Completed operations rated satisfactory (%)
Completed operations with sustainable outcomes (%)
Completed operations with a timely PCR (%)
DESIGNING GENDER- AND CLIMATE-INFORMED OPERATIONS
New CSPs with gender-informed design (%)
Projects with satisfactory gender-equality outcomes (%)
New projects with gender-informed design1 (%)
New projects with climate-informed design (%)
75
67
78
65
89
78
89
75
85
71
83
90
85
71
83
90
100
71
91
80
75
81
91
94
82
66
77
85
95
77
85
95
94
77
69
22
8
60
28
19
9
19
9
72
59
11
13
22
8
68
30
17
7
22
8
68
30
21
7
18
9
80
57
12.5
12.4
13
96
7
10.6
100
6.5
11
> 95
6
11
95
6
10
100
6.3
4.7
25
67
72
58
27
5
56
68
75
69
32
4.9
26
74
76
60
27
4.7
19
67
72
58
..
5
60
51
72
65
18
ADF
TARGET
2014
BASELINE
2012
LATEST
2014
BASELINE
2012
LATEST
2014
.. = Data not available; AfDB = African Development Bank; ADF = African Development Fund; CSP = Country Strategy Paper; CPPR = Country Portfolio Performance Review;
ESW = economic and sector work; PCR = Project Completion Report.
1 This indicator builds on five dimensions: sector-specific gender analysis, a gender-equality-related outcomes statement, a gender-equality-related baseline,
specific activities to address gender gaps, and adequate budgets and human resources to implement the activities.
Source:
African Development Bank
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1604474_0026.png
We have achieved or are within 90% of achieving the target
We have not made enough progress but are within 80% of achieving the target
We are not moving towards the target
Data points are missing
TABLE 4: HOW EFFICIENT AFDB IS AS AN ORGANISATION (LEVEL 4)
BASELINE
2012
LATEST
2014
TARGETS
2014
2015
2016
INDICATOR
DECENTRALISATION: MOVING CLOSER TO OUR CLIENTS
Operational staff based in field offices (%)
Projects managed from field offices (%)
Connecting to field offices
(% successful videoconferences)
HUMAN RESOURCES: ENGAGING AND MOBILISING STAFF
Employee engagement index (%)
Managerial effectiveness index (%)
Operations professional staff (%)
Share of women in professional staff (%)
Share of management staff who are women (%)
Net vacancy rate – professional staff (%)
Time to recruit new staff (days)
VALUE FOR MONEY: IMPROVING COST EFFICIENCY
Administrative costs per UA 1 million disbursed
(UA 000)
Cost of preparing a lending project (UA 000)
1
Cost of supporting project implementation (UA 000)
1
Work environment cost per seat (UA 000)
Share of users satisfied with IT service delivery (%)
36
42
90
50
51
98.5
40
50
> 95
45
53
> 95
50
55
> 95
53
48
67
27
24
9
223
..
..
66
27
31
16
..
64
55
70
28
28
15
..
67
60
70
30
30
13
150
70
65
70
33
32
9
100
86
74
21
3.5
96
98
71
14
3.3
97
87
72
20
3.4
> 97
85
71
19.5
3.35
> 97
80
70
19
3.3
> 97
.. = Data not available; IT = information technology; UA = Units of Account.
1 Both the cost for project preparation and the cost for project implementation are still based on estimates.
Source:
African Development Bank
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STRATEGY FOR DENMARK’S ENGAGEMENT
WITH THE AFRICAN DEVELOPMENT BANK
2016 – 2019
February 2016
Publisher:
Ministry of Foreign Affairs of Denmark
Asiatisk Plads 2
1448 Copenhagen K
Denmark
Phone
Fax
E-mail
Internet
+45 33 92 00 00
+45 42 54 05 33
[email protected]
www.um.dk
Design: BGRAPHIC
Photo, frontpage: Jørgen Schytte/Danida
The publication can be downloaded or ordered from:
www.danida-publikationer.dk
The text may be freely quoted.
ISBN: 978-87-7087-922-4 (PDF version)
ISBN: 978-87-7087-923-1 (HTML version)
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