@AfDB_Group #AfDBAM2018 afdb.org/am AFRICAN DEVELOPMENT BANK GROUP ANNUAL MEETINGS BULLETIN - MAY 23, 2018
Korea to work with African Governments on smart technologies for continent’s rapid industrialization Korean and African counterparts forged a new cooperation mechanism for the future where both sides will benefit.
“We can jointly think outside the box and leapfrog the development of Africa,” he said.
Dong Yeon Kim, Deputy Prime Minister and Ministry of Strategy and Finance of the Republic of Korea, said the cooperation between Africa and Korea has continued to grow over the years.
The President of the African Development Bank, Akinwumi Adesina, stressed that Africa’s industrialization would be a win-win for the world.
“Cooperation between us and Africa is clear and sincere,” he said, commending the African Development Bank for providing clear direction for the development of the continent through its High 5 development priorities. He noted that Africa has made tremendous progress in reducing poverty and had become a growth engine. frican Governments and the Republic of Korea have pledged to work together to explore smart technologies to boost the continent’s rapid industrialization and make it a major player in the 4th Industrial Revolution.
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IN THIS EDITION
The Korean Government has assured that it would provide support for innovative solutions, including customized drones to help African countries develop faster.
The 2018 KOAFEC Ministerial Roundtable held at the Annual Meetings of the African Development Bank in Busan, Korea, on Tuesday under the theme, “Africa and the Fourth Industrial Revolution: Opportunities for Leapfrogging?” provided a unique platform for Finance and Economic Ministers from African countries and Korea to discuss policy suggestions and the way forward for the relationship between the two regions.
Korea, an inspiration for Africa’s Green Revolution by Vice-President Jennifer Blanke p. 3 Focus: African Development Bank’s Youth Advisory Group sets path for job creation in Africa p. 6
Africa and the future of work by Kapil Kapoor p. 9 Making a difference: Increased access to affordable and reliable electricity in Kenya p. 11
Tribute to Babacar Ndiaye p. 8
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However, though Africa has vast natural and human resources, food shortage and the absence of energy has slowed down it development, Kim said, stressing innovative solutions were needed for Africa to effectively industrialize and improve the lives of its people. He was optimistic that KOAFEC would provide the platform for greater collaboration.
“It would help raise productivity by spurring technological progress and innovation while simultaneously creating higher-skilled jobs in the formal sector in advanced economies, Adesina said. “Korea is a partner of choice for the continent and for the African Development Bank. Together, I have no doubt that we will help lift the continent out of poverty, and in doing so, contribute in no small measure to global peace and prosperity.” He described Africa’s partnership with Korea through KOAFEC as a powerful example and motor for generating co-prosperity, and for building social peace among nations of the world. The Administrator of the United States Agency for International Development To be continued on p. 3
Regional cooperation, structural reforms key to economic transformation frica’s development agenda must focus on the socio-cultural and commercial interests of Africans and the upliftment of Africa’s trade and economic ecosystem, said Muhammadu Sanusi II, the Emir of Kano and a former governor of Nigeria’s central bank, during his address at the 2018 Annual Meetings of the African Development Bank Group in Busan, Korea.
The Emir shared insight about revamping African regional integration, trade and economic relations with Executive Directors and Governors of the Bank, com-
“Africa’s economic transformation will be best achieved through fast-tracking re-
To be continued on p. 3
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gional cooperation and the execution of hardnosed structural reforms that focus on the development of the continent’s human capital and material resources,” said Emir Sanusi II.
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Korea inspires the African Green Revolution Editorial
and developing the necessary human capital and capacity. Its Technologies for African Agricultural Transformation initiative is one example of its work. This continent-wide initiative aims to bring technologies from research institutes to farmers at scale to fuel Africa’s Green Revolution, which will make a huge difference in production and productivity and serve as the basis for developing African agribusiness and agroindustry.
by Jennifer Blanke, Vice-President for Agriculture, Human and Social Development, African Development Bank
y investing billions to boost African agriculture and agroindustry, the African Development Bank seeks to increase income and improve livelihoods for Africans.
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The Bank’s Agriculture, Human and Social Development complex is working to strengthen the foundations of Africa’s industrialization by expanding agroindustry
We are also developing an initiative for the underutilized African savannahs. Despite their potential, less than 10% of these lands are used for agricultural production today. Converting a small percentage of the savannahs to agricultural use could make them a locomotive for a high protein value chain – maize, soybean, and livestock production. We are also inspired by Brazil’s experience of turning what was largely viewed as unusable and undesirable land into one of the world’s most productive agricultural hubs. We
aim to adapt Brazil’s best agricultural production technologies to transform Africa’s savannahs so that Africa can feed itself and help feed the rest of the world. The Agriculture, Human and Social Development Complex is also investing in the creation of Staple Crop Processing Zones to bring the hard and soft infrastructure needed for rapid transformations to rural areas and transform them into thriving areas of commerce. Successful zones will boost high quality businesses, job creation, and family incomes. Lastly, we need to develop the skills to underpin these development efforts and prepare Africa for the 4th Industrial Revolution. The Bank is therefore eager to create the next generation of agriprenuers, agricultural innovators, and entrepreneurs. Korea’s excellent education and training systems, rapid development and increased agricultural production provide rich examples to draw upon for our efforts in Africa.
Korea continued from p. 1
(USAID), Mark Green, pledged support for the collaboration between Africa and Korea. “All of the countries here today can chart that same course. And the United States will navigate it with you,” he said. He stressed that the U.S. and the Government of Korea were on
the verge of signing an agreement to put substantial money towards further investment in Africa. He described the continent as a place of incredible resources, stressing that USAID is proud to have worked with the African Development Bank on its development priorities.
“The African Development Bank – under the visionary leadership of President Adesina – plays a leading role in the continent’s development through its High 5s for development. The United States looks forward to working more closely with African countries, the African Development Bank, and the Government of Korea,” he said.
Regional cooperation continued from p. 1
Pro verb
tion of resources: “We need to begin to ask ourselves, ‘what do we do with the available funds in our coffers?’”
An economist and financial risk expert, the monarch traced Africa’s post-colonial economic woes to the continent’s fiscal indiscipline and endemic disregard for its competitive advantages. For these reasons, he asserted, Africa’s development was stunted and its global trade ties lopsided in favour of offshore trading partners.
“Perceptions matter. So there is an urgent need for improved transparency, as this is clearly linked to good governance,” he said. “We need to accept that we have a perception problem that we must address. We need to tackle corruption, block leakages and create opportunities for new jobs.”
“Nine out of every 10 countries in Africa have huge trade deficits with China, but Asia developed mostly on domestic investments and resources,” he noted, underscoring the need for African governments to invest in and promote creativity and indigenous enterprise.
“Private sector capital is crucial for sustained economic growth but so is government’s intervention in guaranteeing business externalities like power, water and waste management, roads, housing and the legal and regulatory environment for innovation, commerce and industry.”
Executive Editor Dr Victor Oladokun
The Emir advocated a series of structural reforms, including strategic investments in key sectors including agriculture, infrastructure, education, and small and medium enterprises. He called for deliberate industrial diversification noting that China has begun to move its mega-sized manufacturing capabilities out of low-cost industries.
On trade, the Emir called for a regional and pan-African approach to trade negotiations, a tactical model which should be led by the Bank.
Editors Mina Mammeri, Jennifer Patterson, Faïza Ghozali
Africa’s debt burden continues to inhibit capital investment in industrialization, he observed, lamenting the misalloca-
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President Adesina recalled the Emir’s progressive posture during his time in public service. “As governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi was pro-development. He channeled significant investments into agriculture, infrastructure and SMEs.”
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– Nigeria
Production Coordinators Chawki Chahed, Solange Kamuanga-Tossou Contributors (in alphabetical order): Seidik Abba, Kennedy Abwao, Cecilia Amaral, Emeka Anuforo, Yuna Choi, Andie Davis, Deborah Glassman, Saori Kodama, Muyiwa Moyela, Ivan Mugisha,
Olivia Ndong-Obiang, Liam Neumann, Felix Njoku, Hyun Young Ryu, Stephen Yeboah Photo Guy-Roland Tayoro, Thierry Gohore, Florentin Nando Digital version Simon Adjatan, Christiane Moulo Design and Layout Yattien-Amiguet L., Justin Kabasele, Guy-Ange Gnabro, Phillipe Mutombo Luhata, Selom Dossou-Yovo © African Development Bank/PCER, May 2018
Busan Bulletin Team
African governments also need to eradicate constitutional provisions and structures that increase the cost of governance at national and sub-national levels, manage demographic growth, and revamp and harmonize moribund and ineffective customs and excise duties that promote cross-border smuggling and revenue losses to governments, he said.
e Da y
If you think you are too small to make a difference, you haven’t spent a night with a mosquito
prising finance, budget and economic planning ministers from member nations.
“The African Development Bank has the intellectual resources and clearly is better positioned to negotiate with China on behalf of Africa as a bloc of nations,” he said. “Europe approached global trade as a bloc so why can’t African nations do the same? This is clearly another area in urgent need of the Bank’s intervention.”
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Daily News
The Africa of my Dreams Writing Contest
Young Africans were invited to submit an essay or creative writing piece describing their hopes and dreams for the continent in the Africa of my Dreams writing contest, promoted by the Bank between February and March 2018. Recognizing the energy, creativity and innovative thinking they bring to the table, the initiative sought to tap into the tremendous potential of Africa’s youth to drive the continent’s development. Participants were challenged to share their aspirations, focusing them on the theme “Accelerating Africa’s Industrialization.” More than 2,000 entries were received from students, architects, engineers, designers, artists, entrepreneurs, agripreneurs, visionaries, IT gurus, tech experts and many others from all over Africa and from the diaspora. They were pessimists, realists, optimists and idealists, but all had one thing in common: love for the continent they are all working towards improving every day. A panel of judges from the Bank reviewed the entries and selected four outstanding essays – two in English and two in French. The four finalists’ contributions were selected for addressing the theme skillfully, and with originality and creativity.
Meet the finalists! Ayi Renaud Dossavi-Alipoeh is a Togolese writer (poet, essayist and novelist) and blogger. Born in Lomé in 1993, he graduated with a Biology degree. He’s published five books including poetry collections Rosées Lointaine (2015) and Chants de Sable (2018) and an essay about African history, Nous et l’histoire (2018).
Geraldine Mukumbi is from Ngezi, Zimbabwe. She is a member of the African Leadership Academy's 2011 graduating class. She attended the University of Notre Dame as a Hesburgh-Yusko Scholar and graduated with a BA in English and Africana Studies. She currently serves as a Teaching Fellow at Leaf Academy in Bratislava. Geraldine credits her love for stories to the rebel women who raised her.
Muhammadu Sanusi II, Emir of Kano and former Governor of the Central Bank of Nigeria, flanked by Bronwyn Nielsen, CNBC journalist, and Victor Oladokun, Director of Communication at the Bank.
Dong Yeon Kim, Korean Minister of Strategy and Finance, Deputy Prime Minister and Governor of the Bank; Catherine Cudré-Mauroux, Administrator for Germany, Luxembourg, Portugal and Switzerland; and Raymund Furrer, Swiss Minister of Finance and Governor of the Bank.
Ramatou Ly was raised in Abidjan, Côte d’Ivoire. She earned a Master’s degree in Materials Science and Engineering in France and is currently pursuing a Ph.D. in the same field at Texas A&M University (USA). Her research involves investigating effects of different manufacturing processes on the structure, mechanical properties, and integrity of metallic materials. Cedric Some is from Burkina Faso. After graduating from high school with a Philosophy and Literature diploma from Prytanée Militaire de Kadiogo, the 25-year old earned a degree in International Management in Morocco, and a degree in Human Resources Management in Senegal. Since September 2016, he has been working as a Human Resources Assistant at Deloitte Senegal. The winner and runner-up in each category (French and English) will be announced during the Africa Day Celebration on Friday, May 25 at 3pm in the BEXCO Auditorium. Find out more: https://am.afdb.org/en/the-africa-ofmy-dreams-writing-contest
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Soraya Mellali, Executive Director representing Algeria, Guinea Bissau and Madagascar, with Algerian Minister of Finance Abderrahmane Rayoua.
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Jacob Jusu Saffa, Minister of Finance, Sierra Leone.
A robot generate curiosity among participants.
Participants arrive at the check-in desk for registration and tags.
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Warm reunion between Audu Ogbeh, Nigerian Minister of Agriculture and Rural Development, and Akinwumi A. Adesina, President of the Bank and former Nigerian Minister of Agriculture.
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FOCUS
African Development Bank’s Youth Advisory Group sets path for job creation in Africa
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f the more than 13 million African youth that enter the labour market each year, only 3 million (about 33%) are in wage employment, while the rest are underemployed or in vulnerable situations.
It is in that context that members of the African Development Bank’s Presidential Youth Advisory Group (PYAG) met Tuesday on the sidelines of the Bank’s Annual Meetings in Busan. The Bank’s Annual Meetings are taking place from May 21-25, under the theme “Accelerating Africa’s Industrialization.” PYAG members met in Busan is to discuss strategic issues that shape youth development in the context of industrialization in Africa, including jobs for the future, investment in entrepreneurship, communications and outreach and private-sector partnerships. The discussions will also focus on the operations of the group.
Launched last year by the President of the Bank, Akinwumi Adesina, the Presidential Youth Advisory Group offers expert insight and innovative solutions for job creation for Africa’s youth, as outlined in the Bank’s Jobs for Youth in Africa Strategy (JfYA). Jobs for Youth in Africa initiative aims to create 25 million jobs and benefit 50 million youth over the next 10 years by equipping them with the right skills to get decent and meaningful jobs. It is currently the largest effort for youth employment in Africa today.
Jeremy Johnson, co-founder of Andela and a member of the group, indicated that Africa’s youth are the single most under-leveraged resource on the continent and also the most important. “Africa needs to get it right. Youth that are able to build companies, write codes and continue pushing their countries and companies forward are the ones that will be able to send us to work. We have to support them and we have to do it now!” For her part, Clarisse Iribagiza, Chief Executive Officer of Hehe, a Rwanda-based company, said, “The Presidential Youth Advisory Group is creating the right environment for the youth to thrive.”
“This is a huge opportunity for Africa. If we fix the youth unemployment challenge, Africa will gain 10-20% annual growth. That means Africa’s GDP will grow by $500 billion per year for the next 30 years. Africa’s per capita income will rise by 55% every year to the year 2050,” Akinwumi Adesina said at the inauguration of the Group.
The Presidential Youth Advisory Group comprises nine members under the age of 40 who have made significant contributions to the creation of employment opportunities for African youth.
Members of the advisory group have indicated their readiness to contribute to the Bank’s effort at investing in Africa’s youth.
Ashish Thakkar
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The PYAG members are: Ashish Thakkar, CEO, Mara Group, Uganda (Chair); Uzodinma Iweala, award-winning author, Nigeria; Mamadou Touré, Founder / CEO, Africa 2.0 / Ubuntu Capital, Cameroon; Vanessa Moungar, Director Gender Women and Civil Society Department, Chad; Francine Muyumba, President, Panafrican Youth Union, Democratic Republic of Congo; Jeremy Johnson, Co-founder, Andela, USA; Clarisse Iribagiza, CEO, Hehe, Rwanda; Ada Osakwe, CEO, Agrolay Ventures, Nigeria; and Monica Musonda, CEO of Java Foods, Zambia; and Yana Kakar, Global Managing Partner of Dalberg, Canada.
“This is our time. Our continent is truly ready for transformation. Our governments are realizing more and more that the youth are not the leaders of tomorrow. They are the leaders of today. And truly empowering and inspiring young entrepreneurs is the only answer to job creation in the long run,” said Ashish Thakkar, CEO of Mara Group and PYAG Chair. “The African Development Bank platform is phenomenal. The connectivity is so strong and the President’s leadership is so amazing.”
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African Economic Outlook innovates in 2018
The 2018 edition of the African Development Bank’s flagship publication African Economic Outlook marks several major firsts Firstly, it is the first time since its inception in 2003 that the publication African Economic Outlook, which reviews the economies of 54 African countries, was released in January and not in May. The report launch took place on January 17, 2018 at the headquarters of the African Development Bank in Abidjan. Next, it is also the first time that the publication, this year under the title African Economic Outlook: Innovative financing for infrastructure development, has been produced by the Bank’s economists and experts on their own, whereas previously it had been produced in collaboration with the OECD, UNDP and UN Economic Commission for Africa. “African Economic Outlook is one of the Bank’s flagship publications, highly valued by decision-makers, researchers and experts for the quality of its analysis and practical recommendations on how to tackle crucial development issues,” explains Célestin Monga, Chief Economist and VicePresident, Economic Governance and Knowledge Management. The Bank’s experts have now reviewed upwards the continent’s infrastructure needs, which they estimate, in the 2018 edition, at between $130 billion and $170 billion per year, higher than the $93 billion estimated previously. Another great first in the 2018 edition: it is enriched by the five regional reports – North Africa, West Africa, Central Africa, East Africa and Southern Africa. And to highlight this unprecedented dimension, these specific regional analyses had the benefit of their simultaneous launch, on March 13, from the Bank’s regional offices in Tunis, Abidjan, Nairobi and Pretoria.
“By providing a regional approach for the first time, we hope to benefit from the Bank’s expertise and give greater depth and relevance to the analysis in this publication,” said Monga on the occasion of the launch. Finally, the last unprecedented fact: For the first time in the Bank’s history, summaries of African Economic Outlook have been published in three languages spoken by over 300 million Africans: Arabic, Hausa and Swahili. These are just some of the major firsts intended to become a permanent feature of future editions and which cannot help but strengthen the relevance and significance of one of the Bank’s benchmark publications. This Wednesday, May 23, African Economic Outlook 2018 will be the subject of a dedicated session, including presentations and discussions, in the Grand Ballroom of the BEXCO Centre, from 2:15pm. Find out more: www.afdb.org/aeo
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East African Banks dominate this year’s African Banker Awards Winners of the 2018 African Banker Awards have been announced at a prestigious Gala Dinner in Busan. The Awards, held annually on the fringes of the Annual Meetings of the African Development Bank, celebrate excellence in banking and finance on the African continent. East Africa dominated the awards this year. The CEO of Equity Group Holdings Plc in Kenya, James Mwangi, won Banker of the Year. His bank has seen impressive growth through a series of innovations and diversified investment channels away from consumer loans. Kenya’s Equity Group also beat off strong competition from four other shortlisted nominees to win the coveted 'African Bank of the Year Award'. Tanzania’s Benno Ndulu, former central bank governor who finished his second term last year won Central Bank Governor of the year for his work in pushing for financial inclusion as well as for sound macroeconomic management. CRDB, also from Tanzania was named the 'Best Regional Bank in East Africa'.
South African banks dominated the investment banking and deals of the year categories. Standard Bank Group swooped three awards, including the one for 'Investment Bank of the Year'. Standard Bank and Rand Merchant Bank in South Africa took the 'Infrastructure Deal of the Year' for the $5bn Nacala corridor rail and port project in Mozambique and Malawi, one of Africa’s largest private sector funded infrastructure projects. The project covers 912km of railway running from the Tete province in western Mozambique to Nacala port on the east coast through a section of Malawi. A deep sea port at Nacala also features in the project. Rand Merchant Bank in South Africa was also recognized for the listing of Steinhoff Africa Retail that took place last year.
2018 African Banker Award winners
Innovation in Banking Ecobank
African Banker of the Year James Mwangi, Equity Group Holdings Plc, Kenya
Deal of the Year – Equity Steinhof Africa Retail Listing – Rand Merchant Bank (South Africa)
African Bank of the Year Equity Group Holdings Plc, Kenya Best Retail Bank in Africa Ecobank Investment Bank of the Year Standard Bank Award for Financial Inclusion Groupe Crédit Agricole (Morocco) Socially Responsible Bank of the Year BMCE Bank of Africa Group (Morocco)
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Deal of the Year – Debt $300m Diaspora Bond, Nigeria Standard Bank / FBNQuest Merchant Bank (Nigeria) Infrastructure Deal of the Year Nacala Railway and Port Corridor Standard Bank / Rand Merchant Bank (South Africa) Best Regional Bank East Africa - CRDB (Tanzania) West Africa – BDM (Mali) North Africa – CIB, Egypt Southern Africa – State Bank Mauritius (SBM) Central Africa – BGFI, Gabon
governors speak
Hadizatou Rosine Sori, Burkina Faso
Tribute to Babacar Ndiaye, fifth President of the African Development Bank
Africa is a continent of potential. We have heard a lot about the awakening of Africa in recent years. The potential is there. What we need is support. It's as simple as that. As a continent, we are capable of reversing negative trends.
Margaret Mwanakatwe. Zambia Why can’t I add value to maize and turn it into corn flakes? Why am I bringing somebody else that already makes cornflakes into my country? I say let’s go from maize to corn flakes. We can do it. That is agriculture and agribusiness.
Mohammed Bousaid, Morocco The industrialization of Africa is one of the Bank’s High 5 priorities. Having industry makes it possible for our countries to deepen this quest for economic diversification. Economic diversification means economic resilience.
Felix Molousa, Central African Republic Our country is coming out of a long period of acute crisis. If it is now starting to arise out of the ashes. This is due in part to its partnership with the African Development Bank.
Henry Rotich, Kenya We know that we need about US$ 117 billion to finance the High 5s over the next three to four years. It is a huge resource requirement. But there are many ways, and we have to find a way to raise this capital.
“Farewell to the ambassador of Africa’s development. May you rest in peace.” With these words, African Development Bank President Adesina Akinwumi paid tribute to his predecessor, Babacar Ndiaye, who passed away on July 13, 2017, in Dakar, Senegal.
through the ranks to become the fifth President of the Bank Group in 1985, and then served a second term in 1990. In 1984, during his tenure as Vice-President of Finance, the pan-African financial institution obtained its first AAA rating in 1984.
During the Annual Meetings, a tribute to the late former Bank President will be the highlight of the third edition of “The Africa Road Builders – Babacar Ndiaye Trophy.”
He also spearheaded the Bank’s capital increase in 1987, which jumped over 300 per cent from nearly USD 8.7 billion to about USD 32 billion.
Launched in 2016 by Acturoutes, an Ivorian platform providing information on transport and roads, the Babacar Ndiaye Trophy recognizes the best initiatives in road and transport infrastructure in Africa.
That same year, he began the process of opening the capital of the Bank to non-African States, and successfully brought the Bank into the international financial markets.
Last year's prize was shared by the Presidents of Rwanda, Paul Kagame, and Senegal, Mack Sall.
A builder of institutions
“This year, the presentation of the trophy takes on a very special character: it is the very first edition following the death of Babacar Ndiaye," observed Barthélemy Kouamé, Commissioner General of Africa Road Builders. "We thank his successor for agreeing to sponsor this edition, and to pay homage to him.” “Babacar Ndiaye was an icon of the African Development Bank,” said Adesina. “With his passing, Africa has lost one of its greatest sons.” Among the first African executives to join the institution, Ndiaye rose
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Ndiaye worked to set up large panAfrican institutions such as the African Export-Import Bank, Afreximbank, the African Business Round Table, and Shelter Afrique. Although housing and living conditions were not yet at the top of urban and development priorities in Africa, he encouraged the creation of Shelter Afrique, an institution dedicated to the financing of affordable housing on the continent. During a recent memorial ceremony, President Adesina announced that the auditorium of the Bank’s headquarters would henceforth bear the name of Babacar Ndiaye.
Industrialization he nature of work is changing. Driverless trucks are transporting goods from factories to warehouses. Vehicles are driving themselves. 3-D printers are producing T-Shirts and sneakers faster than their human counterparts can. Robots are replacing humans in industrial assembly lines in food processing plants, automobile factories, and aviation plants. Farms are being automated; advanced robot prototypes are planting and harvesting a range of crops. Stores are being replaced with online sites where we can buy clothes, book airline tickets, order pizza, and pay for everything electronically. Alexa, your virtual assistant developed by Amazon, can turn on the television to your favorite channel and then play soothing music to help you fall asleep. And, yes, she will also turn off the lights.
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This is not the brave new world of the future, but our world today. These changes have profound implications for how we work and live. Welcome to the 4th Industrial Revolution (4IR), where the confluence of artificial intelligence, robotics, 3D printing, the Internet of Things, biotechnology, and block chain technologies are modifying how we have worked since the previous industrial revolutions. It is all about jobs. Each year, 10-12 million African youth enter a workforce where only 3 million formal new jobs are created annually. Youth fill less than a quarter of all jobs created; the youth unemployment rate is double that of the rates for adults. High youth unemployment has created challenges. Forty percent of the young people who have joined the ranks of rebel and terror groups cite lack of economic opportunity as their key motivation. Many youth also migrate in search of jobs, especially to Europe, often illegally aided by criminal smuggling networks. In 2015, over 3,500 people, many of whom were young, died in the Mediterranean while trying to make this perilous journey. The poor jobs situation for African youth is rooted in three main factors. First, job growth in Africa’s formal sector has not matched the pace of graduation from secondary and tertiary institutions. Second, many youth are ill-prepared for the jobs that are available because they have not acquired the skills that employers require, either because their education is of poor quality or because they are specialized in areas other than those demanded by employers. Third, youth lack the social capital, networks and experience needed to compete in the labour market.
Africa and the Future of Work by Kapil Kapoor, Director for Strategy and Operational Policies, African Development Bank Recent evidence from the US suggests that this leads to a loss of roughly 126 African jobs per reshored company; between 2010 and 2015, approximately 250,000 jobs were re-shored to the US. The expectation of Asian manufacturing moving to Africa because of rising labour costs in Asia no longer appears to be a viable long-term job creation strategy. The opportunities. Rapid technological progress provides a unique opportunity for Africa to leapfrog and quickly reach higher levels of productivity. Technological developments in agriculture are particularly relevant as a large percent of employment in Africa is in agriculture. New developments in precision agriculture, based on automation and the Internet of Things, offer great potential for increasing productivity and speeding up structural transformation. In addition, Africa is already the world’s second-largest mobile phone market, and the pool of mostly young, successful entrepreneurs using these technologies is growing. At the same time, while the estimated costs of operating a robot, now between USD 10 and USD 30 per hour depending on its sophistication, remains relatively high, these costs are dropping. Given existing wage rates in Africa, a significant window of opportunity exists before robots become competitive. For example, an Overseas Development Institute study estimates that robots will become competitive in the furniture sector in Kenya only in 2032. There is, therefore, an important opportunity to train future workers.
duates with a degree in science, technology, engineering or mathematics. Business and entrepreneurship skills, complex problem-solving skills, social skills, process skills, system skills and cognitive skills are also in high demand. There is a need for job centres that can raise awareness about job opportunities, help job-seekers write résumés and prepare for interviews, and match job-seekers with employers seeking employees. Infrastructure is a key enabler of 4IR and higher Internet penetration rates can contribute to higher youth employment and greater productivity. Jobs are a top priority for the African Development Bank. The need to create productive jobs is well recognized, but policy-makers are less aware of 4IR technologies, their challenges and opportunities. The role of the African Development Bank as a provider of knowledge and technical assistance, a catalyst for private-sector development and investment, and as a financier of strategic job-related investments is therefore critical. The Bank’s Jobs for Youth in Africa strategy seeks to help the continent create 25 million jobs by 2025. This is an urgent priority. The future of Africa’s youth must not be to perish in the Mediterranean, but to transform their continent.
Policies matter. Creating decent jobs requires policies that increase productivity and enable the reallocation of labour from traditional to modern sectors. Governments, in partnership with the private sector and the development community, must make high-quality education and skills development a top priority. Africa cannot meet the challenges associated with 4IR if only two percent of the total university-age population gra-
What implications will the 4th industrial revolution have on the continent’s already challenging jobs situation? The challenges. Jobs are more likely to be automated in developing countries because they tend to be more routine in industries that tend to be more labour-intensive. As robots and artificial intelligence change the economics of manufacturing, automation is eliminating the advantages of cheap labour and leading to the relocation of operations to developed countries. Falling prices for robots are making them more easily available for manufacturing. As the cost of capital falls, industries will find it more efficient to re-shore manufacturing activities from Africa and elsewhere.
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Jobs for youth initiative: Insuring Africa’s demographic dividend
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f all the wealth and untapped potential of Africa, its greatest asset may well be its youth. The youth population, estimated today at 420 million people aged 15-35 years, will nearly double by 2050 to 830 million. They are smart, dynamic, digitally adept, and eager to put their skills and talents to work. Each year, 10 to 12 million young Africans enter a job market that adds only three million formal jobs annually. Women seeking
"This is a huge opportunity for Africa,” says Akinwumi Adesina, President of the African Development Bank. “If we solve the problem of youth unemployment, Africa will gain 10% to 20% in annual growth. This means that Africa's GDP will grow by US$ 500 billion a year over the next thirty years. Per capita income will increase by 55% per year until 2050.”
ported 128,000 micro, small and medium-sized enterprises, including providing training opportunities for 625,000 youth. “Youth are not Africa’s future, they are our present,” says Oley Dibba-Wadda, Director of Human Capital, Youth and Skills Development at the Jobs for Youth initiative. “When youth have the chance to succeed, economies across Africa will grow, job opportunities will increase, and the quality of life for the people of Africa will improve.”
Currently, 66 million young Africans earn under US$ 2 a day, “less than the price
Recently, the Bank hosted the 2018 AgriPitch Entrepreneurship Competition, which rewards innovative solutions to enhance productivity in the agriculture and agribusiness sector. The competition offers young entrepreneurs a unique platform to connect with other small and medium-sized enterprises, mentors and potential investors, and to show that agriculture can be lucrative and exciting. The 27 participants included Ngozi, coowner of Frotchery Farms, a fish-processing business that supplies dried fish products to hotels and supermarkets in Ibadan, Nigeria. After a rocky start in 2017, Frotchery Farms now sells about six tons of fish per month, and has received certification to supply supermarkets. Aboubacar Karim, from Côte d’Ivoire, studied agricultural engineering in Canada and decided to return to his country to apply his knowledge to industry. In 2017 he founded Investiv Group, which surveys and maps crops using drone y technology, helping farmers quickly DA trouE bleshoot pests, diseases, andh crop-related T issues. The company employs a team of 30 staff under 30 that it deploys to various regions of Côte d’Ivoire. formal and informal jobs are particularly affected, as they often face greater barriers to opportunities.
s In focu
The African Development Bank initiative, Jobs for Youth in Africa is designed to create 25 million jobs and benefit 50 million young people over the next ten years, giving them the skills they need to get decent and sustainable jobs.
Busan Bulletin printed on recycled paper - May 23, 2018
of a hamburger," Adesina points out. To put that into perspective, 66 million people is equivalent to eight times the population of Switzerland, six times the population of Belgium, and equal to the population of the United Kingdom, France, or Italy.
As Ashish Thakkar, Chair of the Presidential Youth Advisory Group advising the Jobs for Youth initiative, puts it: “We are really lucky to be young people today on our amazing continent, where technology is growing at such a rapid pace and the digital transformation is taking place. This is our time to think creatively, to think innovatively, and to empower, inspire, and enable each other to transform. This is our time.”
Since the launch of the initiative in 2016, the Bank has created 1.6 million jobs in various African countries and has sup-
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Making a difference
AFFORDABLE, RELIABLE ELECTRICITY FOR 500,000 KENYAN HOUSEHOLDS AND 300,000 BUSINESSES Access to electricity in Kenya remains relatively limited. only half of the population has access at costs that are much higher than in other African economies. When the Menengai Geothermal Project is fired, supply is expected to improve remarkably. Anika Kariuku, Nakuru District resident
T
Having electricity soon is going to make our lives easier. It is will be easier for us to cook and light the house. I’m really looking forward to it, because it will help me manage household tasks better. I will able to quickly make breakfast and get my children off to school on time.
Joseph Mbugua, school teacher
Many of our school children are interested in learning, but lack of electricity is a limiting factor. This has reduced their school performance, because the students can only study for few hours.
Busan Bulletin printed on recycled paper - May 23, 2018
he project received US $502.9 million in funding support from the African Development Bank and partners to provide reliable, clean, affordable electricity to thousands of households and industries.
500,000 households, including 70,000 in rural households, and 300,000 small businesses. It will also provide 1000 GWh of energy to businesses and industries. The project will also reduce CO2 emissions by close to 2 million tons per annum.
At 400 MW, the Menengai Geothermal Project raises power generation by 26% per cent of the current total installed generation capacity. Kenyan households, businesses and industries, will all benefit.
Greater access to clean energy is expected to significantly improve health and education opportunities, particularly for women and girls in the area. The project will also ensure an employment ratio of 30%, which is considerably higher than that of small towns in the region.
The electricity that will be generated is equivalent to the consumption needs of nearly
Lucy, 14-year-old schoolgirl
If we have electricity, my brothers and I will be able to study at night at home and in school.
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AGeNdA
the day
10:00 12:00 14:15 15:30 17:00 18:00 18:30
Formal Opening Ceremony Special Event 2: High Level Panel Dialogue African Economic Outlook Dialogue First Sitting of the Boards of Governors High Level Panel Session on Climate and Disaster Risk Financing Press Cocktail The Africa Road Builders – Trophée Babacar Ndiaye 2018
More info: https://am.afdb.org/en/programme
Discover Busan
Seo-Gu: Explore traditional Korean life Jagalchi Market. Start your day early at Korea’s largest seafood market where you can buy both live and dried fish including mackerel, see squirts, and whale meat. Enjoy fresh sashimi-style fish at Chungmu Hoetjip, or a familyfriendly seafood buffet at OASE Seafood Buffet. You can also enjoy fresh fish at the historical tented street restaurants called Pojangmacha. After a fish-based brunch, proceed to the renowned Gukje Market (also known as the Dottegi Market), one of Korea’s largest and most unusual flea markets created by refugees after the Korean War. It is also connected to other small markets such as Bupyeong Market and Kkangtong Market. Join Busan residents at the lively local food markets in Seomyeon Eatery Alley, and enjoy a variety of traditional dishes such as Topokki (stir-fried rice cake), Eomuk or Oden (fish cake), Sundae (Korean sausage), and Dwaeji-gukbap (pork rice soup). Stalls open after 5pm.
Korean Proverb of the Day 돌다리도 두들겨 보고건넌다 Literal Translation: Even when crossing a stone bridge, hit it first. Meaning: You should proceed with caution in everything you do.
Busan Bulletin printed on recycled paper - May 23, 2018
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