ADB to support projects in South Sudan
By Larco Lomayat in Busan South Korea and Jale Richard in Juba
The President of African Development Bank, Dr. Akinwumi Adesina has expressed readiness to support South Sudan in some projects such as power, roads, fragility, agriculture and food security, telecommunication, mining, industry and others.
This was revealed in the sideline of the 53rd Annual Meeting of the Board of Governors of the African Development Bank Group and 44th Meeting of the Board of Governors of the African Development Fund, the concessional arm of the Bank Group, which ended on Friday in Busan, South Korea.
The meeting was held under the theme “Under the theme “Accelerating Africa’s Industrialization” South Sudan delegation headed by the Minister of Finance and Planning, Salvatore Garang Mabiordit attended and participated in the meetings.
The Finance Minister was accompanied by the newly appointed Governor of Central Bank of South Sudan, Dier Tong Ngor, The First Undersecretary, MoF&P, Biel Jock Thich, Director General for Budget, MoF&P, Mr. Ocum Genes Karlo, Director General for Macroeconomic and Aid Coordination, Mr. Moses Mabior Deu Awuol, Executive Director to the Minister, Mr. Lino Deng Wek, Economist – AfDB Desk Officer, Madam Lwiza M. K. Deng and Mr. Peter Anthony Osis, Executive Secretary to the Governor of Central Bank of South Sudan.
In his meeting with the president of African Development Bank, Minister Mabiordit said under his leadership, the Ministry will ensure the close monitoring of all the African Development Bank projects with the donor requirement and the expectation of the people of South Sudan.
This African Development Bank annual meetings are one of the largest economic gatherings on the continent. Thousands of delegates, Heads of State, public and private sectors stakeholders, development partners and academics joined by more than 4000 (Four Thousand) Participants will reflect on Africa’s industrialization, one of the Bank’s High 5 Strategic Priorities and an avenue to improve the living conditions of Africans.
In another development, minister Mabiordit also held sideline meetings with the President and Chairman of the Board of Directors of African Exim Bank, Dr. Benedict Okey Oramah who assured the minister that the Bank will follow and speed up to finalize the process of the facility (Loan) to the government of South Sudan that will be disbursed to South Sudan in weeks to come. The meeting also discussed trade finance to support the local banks.
South Sudan became the latest nation to join African Exim bank as a participating state in this trade finance regional multilateral institution.
After South Sudan joined the bank, the President of Afreximbank, Dr. Benedict Okey Oramah, said as a qualified member, the world’s youngest nation would now have access to the range of products and facilities offered by the bank.
Another important meeting also was with the President of Eastern and Southern African Trade and Development Bank, Mr. Admassu Yilma Tadesse who also expressed willingness to work and support the government of South Sudan in a number of developmental projects.
Minister Mabiordit also held a number of short meetings with the Minister of Finance and Economic cooperation of Ethiopia, Dr. Abraham Tekeste.
He also met with Mr. Nyamajeje Calleb Wegoro, the Executive Director for The Eastern Africa Regional Center who delivered good news about South Sudan acceptance and admission to the Constituency which includes the countries of Tanzania, Eritrea, Kenya, Rwanda, Uganda, Seychelles and now South Sudan as the newest member.
Other dignitaries that met with minister Mabiordit included Mr. Gabriel Negatu, Director General, Eastern Africa Regional Center.
While the 2018 Annual Meetings focuses on accelerating Africa’s industrialization, Africa has enjoyed strong economic growth for almost two decades. The continent has not seen a commensurate rise in industrialization. On average, African industry generates merely US$700 of GDP per capita, which is barely a fifth in East Asia (US$3,400). In addition, African exports consist of low technology manufactures and unprocessed natural resources, which represent more than 80 percent of exports from Algeria, Angola or Nigeria, for example.
Africa’s rapid industrialization holds the potential for a win-win scenario – for the world, and certainly for the continent. It would also help raise productivity by spurring technological progress and innovation while creating higher-skilled jobs in the formal sector; promote linkages between services and agricultural sectors; between rural and urban economies; and among consumers, intermediates and capital goods industries.
Industrialization will also make the prices of manufactured exports less volatile or susceptible to long-term deterioration than those of primary goods, as well as help African countries escape dependence on primary commodity exports.
The theme is generating a lot of interest at a time when Korean and Asian companies are increasingly active in Africa.
The African Development Bank Group (AfDB) is a multilateral development finance institution founded in 1964 which its mission is to fight poverty and improve living conditions on the continent through promoting the investment of public and private capital in projects and programs that are likely to contribute to the economic and social development of the region and a financial provider to African governments and private companies investing in the regional member countries.
The primary function of AfDB is making loans and equity investments for the socio-economic advancement of the RMC. Second, the bank provides technical assistance for development projects and programs. Third, it promotes investment of public and private capital for development. Fourth, the bank assists in organizing the development policies of Regional Members Countries (RMCs). The AfDB is also required to give special attention to national and multinational projects which are needed to promote regional integration. Mobilizing financial resources from the Government or the foreign financial institutions with a view to lending the money for development of specific sectors of the economy.
Following the end of the colonial period in Africa, a growing desire for more unity within the continent led to the establishment of two draft charters, one for the establishment of the Organization of African Unity (established in 1963, later replaced by the African Union), and for a regional development bank.
A draft accord was submitted to top African officials, then to African Ministers, before being cosigned by twenty-three African governments on August 4th 1963, in the form of an agreement establishing the African Development Bank. The agreement came into force on 10 September 1964. Although established officially in under the auspices of the Economic Commission for Africa, the AfDB began operation in 1966.
Although originally only African countries were able to join the bank, since 1982 it has allowed the entry of non-African countries as well.
During its forty years of operations, AfDB has financed 2,885 operations, for a total of $47.5 billion. In 2003, it received an AAA rating from the major financial rating agencies and had a capital of $32.043 billion.