2 0 1 3 A N N U A L R E P O R T: C E O ’ S L E T T E R
Addendum to the 2013 CEO Letter... The letter you are about to read was written
We must also be clear in the face of the crisis
in the first part of 2014 before the outbreak
that Ebola is not affecting the whole of Africa.
of the Ebola virus had begun to spread
It should not be the only story being told about
across Guinea, Sierra Leone and Liberia.
the continent, and we must not allow it to
The retrospective nature of an Annual Report
stigmatise those within or outside it. Our work
always feels strange when life moves so quickly,
in Nigeria, Rwanda and Ethiopia continues,
especially at AGI. This year, looking back on
including our role in President Obama’s Power
our activities in 2013, it feels more strange
Africa initiative which will bring electricity to
than ever. Indeed, to reflect on the fact that
tens of thousands of schools, hospitals and
just a matter of months ago we were planning
businesses. We also hope to announce new
optimistically for the continued progress we
projects in the coming months.
expected to make on the priorities that matter most – access to electricity, building roads,
I decided to leave my take on our year in 2013
investment into jobs and growth – is a painful
intact, as a reminder of where we were less
reminder of the reality and the cost of the
than a year ago. It is a point in time that I hope
Ebola crisis.
Sierra Leone, Liberia and Guinea can return to as soon as possible – in the best case, with
We remain steadfast in our belief that the
a rapid and urgent scale up in the response
future can be bright for our West African
the outbreak could be coming under control
partners, but as – at the time of writing – the
by the end of 2014. In the meantime we will
crisis continues to spread faster than the
continue to work in each of the affected
international response, the optimism of my
countries, alongside partner governments and
letter and the progress which justified it are
in coordination with others, to ensure that the
in jeopardy. Those battling to contain the
crisis is contained and that when the work
outbreak continue to struggle. AGI is playing a
begins to rebuild the affected communities
small part in that fight. Our teams have begun
they have more reason than ever before to
to work on the response, truly living the AGI
look to the future with hope and optimism.
value of working shoulder-to-shoulder with our partner governments. In Sierra Leone we are embedded in the national emergency structures and helping coordinate ambulances to collect new cases, in Liberia we’re working
Nick Thompson, Chief Executive
closely with partners to manage the logistics
Tony Blair Africa Governance Initiative
of a growing international operation and in
September 2014
Guinea we’re helping plan for the future, allowing for the impact of Ebola on the economy. I’m very proud of the work of our teams.
2 0 1 3 A N N U A L R E P O R T: C E O ’ S L E T T E R
“We work at the sweet spot between political authority and administrative capability; between the leadership and the system, because by improving effectiveness here we can support reforms that improve the lives of millions. That’s what we mean by our mission to make government work for the world’s poorest.” NICK THOMPSON, CHIEF EXECUTIVE
“Why do some of the best ideas on structural
Implementation Team since 2012. Our ability
transformation — shifting economies from
to build trust and support change at the
low- to high-productivity sectors — often fail
heart of government decision-making rests
or fall short of their goals?”
on ‘getting the politics’. As our independent evaluators concluded on our work to the
This was the question Ngozi Okonjo-Iweala,
Ministerial taskforce: “other capacity-building
Nigeria’s Finance Minister posed recently.
1
organisations would struggle to get invited
Her answer: because they don’t take account
into a body that is as strategic”. We work
of political economy. Doing just that has
at the sweet spot between political authority
been a guiding principle of ours ever since
and administrative capability; between the
we started AGI five years ago. All reform is
leadership and the system, because by
political – to quote our Patron Tony Blair’s
improving effectiveness here we can support
version of Ngozi’s challenge: “if you miss the
reforms that improve the lives of millions.
politics, you miss the point”.
That’s what we mean by our mission to make
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government work for the world’s poorest. That’s why I’ve included a case study on Nigeria in this report, describing our work with
In
2013,
Minister Ngozi and her Economic Management
effectiveness in seven countries: Sierra Leone, Rwanda,
1 https://www.devex.com/news/for-structural-transformationconsider-political-economy-83743 2 Blair, T (2010) Not Just Aid, Centre for Global Development, http://www.cgdev.org/publication/not-just-aid-how-makinggovernment-work-can-transform-africa-tony-blair
we Liberia,
supported Guinea,
government South
Sudan,
Malawi, and, of course, Nigeria. Each has unique challenges and opportunities and in each case for us an immense and enduring
“The work comes at a critical stage in Sierra Leone’s development. I believe together we have an opportunity to ensure that Sierra Leone puts in place the policies, people and institutions to achieve real and lasting change.” ERNEST BAI KOROMA, PRESIDENT OF SIERRA LEONE
privilege to work with reforming leaders at the
user fees, a landmark achievement of his first
political level and in the public service alike.
term that we had also supported. And to see the shift not just in system but in culture as
2013 was our fifth anniversary, a personal
the Government worked with civil society for
highlight for me was returning to Sierra Leone,
the first time in the development of Ministerial
where my own AGI journey began back in
performance contracts – an example of how
2008 when I set up our first programme there,
delivering policy outcomes can create the
working in the office of President Ernest bai
momentum for the design and reform of local
Koroma. At that time, to be honest, AGI was
institutions. For in our model of support these
more of an experiment than an organisation.
two goals of delivering government priorities
To be back five years later and to see the
and
change was inspirational. To visit the local
always go hand in hand – that too is what it
power station that has been made operational,
means to ‘get the politics’ of reform.
strengthening
government
capacity
with the generous support of donors and others, but also because of decisions taken
Other highlights of our year for me included
at the “Presidential stocktake” process we
supporting the Strategic Capacity Building
established to channel Koroma’s authority
Initiative in Rwanda, another programme
in a timely and effective manner. To visit the
which brings together high level leadership
hospital in Freetown where more mothers
and reforms to the public service, which saw
now give birth in safety since the removal of
100 MW of power generation developed and
more people than ever connected to the grid. In Liberia we supported the development of 100kms of new roads as a result of better oversight of delivery from the centre and we saw thousands of jobs created through a more strategic and targeted approach to investment promotion in the freight and horticulture sectors. And in Guinea we launched to
a
support
diaspora-based sustainable
programme
change
and
to
consolidate improvements in their fledgling democracy, in particular using the window of reform once the legislative elections finally took place in September 2013 to support improvements in electricity supply and infrastructure. In all cases it was about working with the grain and adapting to the local context to understand what reforms were possible and what systems could be built around them. Of course, the reason getting the politics is difficult is that politics are often complex and messy. Politics and political leadership can be a force for good, and are a prerequisite for true, country-led development. That is what we mean when we say in AGI that Africa’s future lies in the hands of Africa’s leaders. But we only have to turn on our TV screens to see that politics can also be destructive; the year ended on a tragic note for us and all who consider themselves friends of South Sudan when fighting broke out in Juba and engulfed the country last December. We have since put our programme there on hold, and as with many others we hope for an end to the violence, progress towards a stable transitional government and humanitarian support to the unfolding famine for the good of all the people of South Sudan. The events in South Sudan reminded me of Mo Ibrahim’s challenge:
“Neither Afropessimism nor Afrooptimism do justice to modern Africa. This is now the age of Afro-realism — an honest outlook on our continent. It’s about a celebration of its achievements but also a pragmatic acknowledgement of the challenges that lie ahead.” MO IBRAHIM, CHAIR OF THE M O I B R A H I M F O U N D AT I O N 3
Even beyond the tragic circumstances of South Sudan and other countries still blighted by conflict, his words are a salient reminder for all of us engaged in supporting Africa’s development. I read into them a sense of urgency. We started AGI as unashamed proponents of the ‘Africa rising’ story. We still are. And it is without doubt a different crowd that one meets today, not just at conferences for investors and philanthropists in London and New York, but in the coffee shops and restaurants of capital cities from Kigali to Freetown. But the ‘pragmatic acknowledgement of the challenges’ calls for us to see that these are moments in time, windows of opportunity that need to be seized for Africa’s potential to be realised. And nowhere is that more apparent right now than in the power sector. It is the
3 Mo Ibrahim, 2013 launch of Ibrahim Index on African Governance, http://www.moibrahimfoundation.org/downloads/pressreleases/2013/2013-iiag-global.pdf
priority at the top of every leader’s list, where urgent action is required whether your goal
Credit: Travis Lupick
“The first step that we’re going to take is to try to bring electricity to 20 million homes and businesses.” PRESIDENT BARACK OBAMA4
is job creation, reducing poverty, providing
So what of our plans for 2014? The year is
health and education, or protecting the
based on three goals:
environment, for none of these will happen without access to power.
Ensuring impact – we will stay focused on helping governments change lives. By
That is why I was so pleased to be invited
supporting economic development and job
to travel to Dar-es-Salaam to hear President
creation in Sierra Leone; the establishment
Obama announce the launch of PowerAfrica,
of a modern regulatory framework for the
the US Government’s flagship policy to
nascent oil sector in Liberia; the roll out of
stimulate investment into 10,000 MW of new
agricultural innovations in Rwanda designed
electricity generation and to see 20 million
to
people and businesses connected to the
evaluation of the Strategic Capacity Building
grid. I’m excited that AGI will play our part
Initiative; as well as vital power sector reforms
in making this happen, having signed a co-
such as the development of the Kaleta dam
operative agreement with USAID earlier this
in Guinea.
increase
crop
yields,
alongside
the
year. We will bring together a new Senior Advisors’ Group that evolves AGI’s model of
Achieving growth – we will respond to
support to political leadership and to provide
increasing demand from African governments
informal advice and support to Africa’s
and leaders for our work. We are exploring
leaders as they work through difficult power
new partnerships with the Governments
sector reforms. It’s a big step forward for us
of Ethiopia and Senegal and others too, on
and I look forward to sharing our progress
which we hope to say more by the end of the
next year.
year.
4 Barack Obama speech at the Ubungo Symbion power plant, Dar Es Salaam, 2013 http://www.whitehouse.gov/the-press-office/2013/07/02/ remarks-president-obama-ubungo-symbion-power-plant
“The biggest single problem in societies aspiring to be democratic has been their failure to provide the substance of what people want from government: personal security, shared economic growth and the basic public services […] proponents of democracy focus, for understandable reasons, on limiting the powers of tyrannical or predatory states. But they don’t spend as much time thinking about how to govern effectively. They are, in Woodrow Wilson’s phrase, more interested in “controlling than in energizing government.” PROFESSOR FRANCIS FUKUYMA5
Strengthening the foundations – finally, we will
the Wall Street Journal this April reminded
continue to strengthen our own organization
me of why we started: because “energized
in order to make all this possible and to share
government” providing the substance of what
our lessons with others. We have already
people want is the only way for Africa’s future
published the second in our new series of
to be realized. As we stand on the verge
case studies, this time exploring the Strategic
of our next five years – contemplating new
Capacity Building Initiative in Rwanda.
countries, new partnerships, new thinking –
6
Professor Matt Andrews at Harvard described
this remains our passion.
this as “oddly revolutionary”, and we see ourselves as practitioners of the new school
Our mission in AGI is to make government
of thought that he and others are leading
work for the world’s poorest people – if you
around “problem driven iterative adaption”.
share it, do join us.
We’ll also launch an ambitious fundraising drive for our Rapid Action Fund so that we
Best wishes,
can quickly and fully meet the needs of our partner governments and ultimately improve people’s lives. As our first five years in AGI comes to a
Nick Thompson, Chief Executive
formal end with this Annual Report, reading
Tony Blair Africa Governance Initiative
the words of Professor Francis Fukuyama in
June 2014
5 AGI 2014, Two steps at a time: Rwanda’s Strategic Capacity Building Initiative http://blair.3cdn.net/070696761f1cf5e930 _gum6bc5l3.pdf
6 Fukuyama, F (2014) Wall Street Journal http://online.wsj.com/ articles/at-the-end-of-history-still-stands-democracy-1402080661
A NOTE FROM OUR CHAIR
“It is the quality of our people that will always determine the success of AGI and, seeing them all together, reminded me how fortunate we are to continue to attract and retain such impressive and committed staff.” LIZ LLOYD, CHAIR OF THE BOARD OF TRUSTEES
At the end of 2013 I joined the AGI team
in countries where success is not always
at their all-staff event. 2013 was our fifth
guaranteed. It is a credit to Nick and the
anniversary and as I looked around the
rest of the organization that they have been
room it hit home to me how much AGI has
so determined to learn the lessons available
grown since we began in 2008. We’ve grown
from shorter-lived engagements in South
not just in the number of countries we have
Sudan and Malawi. Over the last five years
the privilege of working with, or the number
we have built up real institutional knowledge
of people that work for us, but also in the
in this field that equips the projects to be
diversity, experience and knowledge of our
more effective. The development of the
teams. We have a clear view on how we work
Insights series of work shows a commitment
best, what we should focus on and what not
to sharing AGI’s experience in a way which
and we are open to debate and discussion
can benefit the wider development sector.
about this. It is the quality of our people that will always determine the success of AGI and,
The Trustees would also like to pay tribute
seeing them all together, reminded me how
to AGI’s funders who continue to make the
fortunate we are to continue to attract and
organization’s work possible. The successes
retain such impressive and committed staff.
you will read about in this year’s annual report would never have happened without
Our teams have continued to deliver the
them. And my congratulations go to Nick and
results we care about most this year: making
all of the staff at AGI for marking their fifth
government work for the world’s poorest
anniversary in the way that matters most –
people. Whether that’s getting roads built
looking forward to a period of growth in a
in Liberia, helping boost energy generation
way which suggests the next five years can
in Rwanda or improving infrastructure in
change even more lives than the last.
Nigeria. We also know that our work carries risks and we have to be willing to work
Liz Lloyd, Chair of the Board of Trustees
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D O W N LO A D AN N UA L R E P O R T ( PD F )