The African Development Bank’s Contribution to Aid for Trade (AfT)

1. The African Development Bank’s Contribution to Aid for Trade (AfT) Kennedy Mbekeani NEPAD, Regional Integration and Trade Department 3rd Meeting of Trade Ministers of Landlocked Countries Swaziland, October 21-22, 2009

2. Outline • Specific Issues for LLDCs 2. The AfDB’s Contribution to AfT • Financial and Technical Assistance: • Operational Activities • Capacity Building • Knowledge Products • Institutional Support to AfT Process • Monitoring and Evaluation • Advisory Groups 3. The Way Forward

3. Specific Issues for LLDCs • Challenges • Infrastructure • Roads • Rail • Maritime • Transit and Trade Facilitation

4. Infrastructure Missing Links Road Network

5. African Ports

6. Solutions • Potential Solutions • Regional approach to deal with cross-border constraints • Road and rail network • Port infrastructure • Rationalization of the RECs • Harmonization of policies

7. The AfDB’s Contribution to AfT AfDB’s Contribution to AfT Financial and Technical Assistance Institutional Support to AfT Process Operational Activities Capacity Building Knowledge Products Monitoring and Evaluation Advisory Groups

8. Financial and Technical Assistance:Operational Activities • Infrastructure accounts for over 75% of the AfDB’s activities. • In 2008, the AfDB invested nearly US$ 2.2. billion in infrastructure: • 45.4% on transport • 37.8% on power supply • 16.8% on other infrastructure • Multinational infrastructure also supports regional integration. • Investments in infrastructure have been scaled up. • The AfDB has supported projects such as the North-South Corridor, as well as projects within corridors. • North-South Corridor: US$ 600 million for 2009-2012 to support activities in the corridor. • Nacala Corridor US$181 million.

9. Financial and Technical Assistance:Capacity Building and Knowledge Products • Capacity Building • Training of trade policy officials, especially through the African Development Institute. • Support to trade facilitation programs to increase cross-border trade and regional integration. • Productive Capacity building • Agriculture Sector: 2006 in US$336 million; 2007 US$230 million

10. Financial and Technical Assistance:Capacity Building and Knowledge Products • Trade Development • Trade Finance Initiative: Provision of emergency funds to support trade: • US$ 500 million in the form of lines of credit to African financial institutional to support trade finance operations. • US$ 500 million in the Global Trade Liquidity Programme, which will be jointly implemented with the IFC and other DFIs. • Knowledge Products • The AfDB conducts studies and reports on markets and trade in Africa (i.e. African Competitiveness Report).

11. Institutional Support to AfT Process • Monitoring and evaluation • Monitor and report AfDB’s financial commitments. • Finalized the OECD donor questionnaire • Assisted member countries in completing the OECD questionnaire • Participate and support national and regional AfT reviews • First regional review was held in Tanzania in 2007. • Eastern and Southern Africa sub-regional review was held in Lusaka in April 2009. • Regional reviews are planned for West, Central, and North Africa • Participate in the AfT Global Review conducted by the WTO • Advisory Groups • WTO AfT Advisory Group • Africa AfT Working Group

12. The Way Forward • The AfDB recognizes the importance of Aid for Trade in support of the trade liberalizationagendaand its capacity to foster economic growth. • The AfDB is committed to playing a leadership role in the implementation of the AfT in Africa by: • Addressing soft and hard infrastructure constraints through operational activities; • Assisting in institutional capacity building; • Providing knowledge; • Enhancing the monitoring and evaluation agenda to show the impact of AfT; • Sharing lessons with other donors, member countries and regional economic communities.