AfDB and AfDF How best to influence AfDB ? Multi-Bi Workshop Maputo 29. November – 3. December 2010 Nicolas Zingg

1. Federal Department of Foreign Affairs FDFASwiss Agency for Development and Cooperation SDCDAO – Division Afrique de l’Ouest Improving Cooperation with Multilateral Organizations, Maputo 29.11 – 03.12.2010 AfDB and AfDFHow best to influence AfDB ?Multi-Bi Workshop Maputo29. November – 3. December 2010Nicolas Zingg

2. Overview • Difference between AfDB and AfDF (History of AfDB / AfDF) • Governing / operational Structure • Operational Strategy • Influencing AfDB and AfDF • Optimizing Complementarity of Multi- and Bilateral Cooperation • Remarks on SDC’s Thematic Networks • D

3. AfDB and AfDF • All MDBs (i.e. RDBs and WB) have two windows: • Bank: providing loans to MICs • Development Funds (AfDF, IDA): providing concessional loans or grants to LICs • AfDB‘s history: • 1964: AfDB established by African Heads of States • 1972: AfDF established (to assist LICs) • End 1982: Membership opened up to non-regional Members • Switzerland as a shareholder: • 1.46% of capital (now USD 100 billion) • 2.47% burden share of AfDF-11 and pledged for AfDF-12

4. AfDB and AfDF Governing Structure • Board of Governors: institution‘s supreme organ • AfDB Executive Board: 20 Chairs (Constituencies), 13 regional chairs (60% shares) & 7 non regional chairs (40% shares) • AfDF Executive Board: 14 Chairs (Constituencies), 7 regional and 7 non-regional chairs (each group represents 50% of voting power) • Switzerland • Until June 2010: member of NIS – Constituency • Since July 2010: member of GPS - Constituency

5. AfDB and AfDF Governing / Operational Structure • Board Committees: • Committee on Operations and Development Effectiveness • Audit and Finance Committee • Committee on Administrative Affairs and Human Resource Policy • Committee on Admin Matters concerning Board of Directors • Staffing: about 1‘700 staff (about 1‘000 professional staff) • Decentralization: 25 Field offices(established since 2005)  Decentralization road map presently in Board discussions

6. AfDB and AfDF Operational Strategy • Medium Term Strategy (MTS 2008 – 2012): clearly focused • Infrastructure development • Governance • Private Sector Development  PPPs (role of honest broker) • Higher Education and vocational training • Promoting regional integration / operations (multi-national oper.) • Increasing assistance to Fragile States (FSF)  Transversal: gender equity, climate change

7. AfDB and AfDF Operational Strategy • Country Programming cycle (LICs) • Based on AfDF replenishment • Defining Country Frames  country allocations (According to country performance, PBA based on „CPR / CPIA“) • Special mechanism for FS • min. PBA allocation plus topping-up from FSF • Allocation of loans or grants • According to Debt sustainability ( traffic light)

8. Where + how best to influence AfDB/AfDF  Regularly: • Board ofDirectors: discussions / approvals(Policies, Strategies, CSPs, projects, etc.) • Board Committees (CODE)  Periodically: • Board ofGovernors (Governorsvotes, AMs) • AfDF Replenishmentsevery 3 years (AfDF-12) • AfDB: Capital increases (accordingto real needs)  Via specificPartnershipswith AfDB

9. Where + how best to influence AfDB/AfDF • PoliciesandStrategies • Policies, strategies, evaluations: CODE before Board disc. • CSPs: countryprogrammingmissions • Projects • Project identification, preparationand/orappraisalmissions • asearlyaspossible !!  Basic Articles: decisionsonlybased on economicconsiderations (nopoliticalreasoning)

10. Where + how best to influence AfDB/AfDF  Via Partnerships with AfDB: • Participation in MD TF (e.g. RWSSI TF, GTF) participating in steering committee meetings • Secondments: Fragile States Unit • Spec. Actions: support to OWAS (M+E system); or • Co-financing of spec. projects in spec. Countries • SDC COOF - IFI Partnership Fund • Secondment to WB Madagascar • Secondment to WB Burkina Faso • WB /SDC project in Mongollia

11. Moment Fort for influencing • AfDB GCI -6: 200% Capital Increase • Package of Institutional reforms (our main focus: comprehensive results measurement framework AfDB + AfDF, independent risk management, gender equity, climate change, and institutional reforms). • AfDF-12: 2011 – 2013 (plus MDRI and plus grant compensation)  Main focus: comprehensive results framework AfDB + AfDF, fragile states, regional integration / operaations (multinational operations), gender equity, climate change (e.g. specific target on renewable energy).  during these two exercises main possibilities to influence the organization with respect to policies, institutional reforms, etc.

12. Moment Fort for influencing Resourcing of AfDB and AfDF • AfDB GCI-6: capital increase by 200 % ( CH CHF 60 million / 8 years)  Loans for MICS, PSOs also in LICs (market rates) • AfDF-12 replenishment: total USD 9.4 billion, (donors about USD 3.8 billion), i.e. increase of 5.8% over AfDF-11 ( CH Pledge: CHF 165 million)  loans and/or grants for LICs  Regional Integration / operations: 20% set aside  Fragile States: about 13% set aside for FSF

13. Optimization of complementarity Multi- and Bi • REO: integrationof RDBs into bilateral cooperation (RC)  marriage à trois(Multi- and bilateral andthematiccoop) • Examples: • Scaling-up ofexperiencewithPrEst in BFwith WB and/or AfDB • Scaling-up ofexperiencewith„Education professionelle“ in Mali (a smallpilotactionwith AfDB and Swisscontact: on thejobtrainingofconstructionlaborers: constructionof an irrigationcanal) • Importantto fit planningintocountryprogrammingcycle ! • Importanttodiscuss on three different levels !

14. SDC Thematic Networks • Multilateral Network (IFI Network) • Political Economy and Development, PED Network • 3 basic tools (on web site) • PSIA: contribution to new PSIA MD TF at WB Poverty and social impact assessment of policy reforms (i.e. assessing and anticipating effects of policy reforms) (example: Tanzania Political Economy of Charcoal Sector)

15. AfDB and AfDF Thankyouverymuch foryourattention