the african development bank cannot be held …...57,000 have been protectively vaccinated against...
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The African Development Bank cannot be held responsible for errors, or any consequencesarising from the use of information contained in this publication. The views and opinionsexpressed herein do not necessarily reflect those of the African Development Bank.
Published by the Communications & External Relations Department (CERD) in association with the Resource Mobilisation, Partnerships and External FinanceDepartment (FRMB)African Development Bank GroupRue Joseph Anoma01 BP 1387 Abidjan 01 (Côte d’Ivoire)T. (225) 20 20 48 22 F. (225) 20 21 31 00www.afdb.org
Copyright © 2015 African Development Bank
The African Development FundChanging the lives of Africa’s
most vulnerable people
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E stablished in 1974, the African Development Fund (ADF) has a proven track record in
reducing poverty and improving the lives of people in low-income and vulnerable countries
on the Africa continent. It does so by providing them development assistance on
concessional terms.
The ADF places a premium on development impact and is regarded as a transparent, cost-effective
platform for achieving results. It has provided more than US$ 45 billion over its 40 years of operations
for projects and programs that have helped poor families and communities escape poverty.
Through its work in energy, transport, water and sanitation, agriculture, governance and
accountability, education, skill and technology, the ADF has helped transform the lives of millions of
poor and vulnerable people in Africa, including women and children.
The ADF complements the African Development Bank (ADB) which was established in 1964 to
provide loans and advice to Africa’s middle-income and credit-worthy poor countries. The ADB and
the ADF share the same staff and headquarters, and evaluate projects with the same rigorous
standards.
This publication sheds light on some of the recent work of the ADF. All ADF projects are based on
the strategic priorities of the various partners involved, including donor countries, recipient countries,
and the AfDB Group.
Some of the work highlighted here includes projects in various sectors covering Djibouti, Gambia,
Ghana, Guinea, Kenya, Malawi, Mozambique, Rwanda, Senegal, Sierra Leone, Tanzania and
Zambia.
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Rwanda Skills, Employabilityand Entrepreneurship Programme (SEEP)
Where? The Masaka ‘incubator’ Kicukiro District, near Kigali, Rwanda. How much? ADF US$ 73.5 million loan.With whom? Co-financiers - World Bank, UK (DFID), France, Germany (GIZ,KfW), Netherlands, the Government of Rwanda.How long? 3 years (2014-2016).
Outputs & Outcomes
• Increase the share of Technical and Vocational Education andTraining (TVET) enrolment as percentage of upper secondarystream from 38% (2011) to 50% (2016);
• Increase the proportion of employers who are satisfied with theperformance of TVET graduates from 72% (2010) to 77%(2016);
• Increase the proportion of TVET graduates employed after sixmonths of graduation from 30% (2013) to 40% (2016);
• Increase the share of independent non-farm employment intotal employment from 9.7% (2011) to 11.5% (2016), and thenumber of MSMEs created annually as startups from 9,000(2012) to 13,500 (2016).
The project, the context
With an estimated 40% average skills deficit and limited jobgrowth and expansion, Rwanda’s government needed to takeaction to tackle the skills deficit and the low labour productivityacross the economy. These fuelled underemployment and stifledprivate sector growth and competitiveness.
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In April 2013, the Government of Rwanda received approvalfor an ADF grant of US$ 39.44 million for the Rwanda Skills,Employability and Entrepreneurship Programme (SEEP). Theprogramme, which was designed in collaboration with theGovernment of Rwanda, the World Bank, the EuropeanCommission, Germany, the UK, the Netherlands, Belgium,France, Sweden and the United States. It supported specificsector budget lines in the 2012-13 fiscal year budget.
The program’s overarching goal is to support the Government’spolicy reform efforts aimed at promoting inclusive growth andaccelerating poverty reduction. The program seeks to supportcatalytic initiatives in the education, employment and enterprisedevelopment sectors, by focusing on two areas: Skills andEmployability, and Entrepreneurship Development. In particular,the program contributes to the Government’s efforts to reducecritical skills gaps, improve the relevance of education to thelabour market, and create an environment where innovativeentrepreneurship can flourish.
SEEP specifically targeted young people, women and small andmedium enterprises (SMEs). Youth and women comprise 40%and 52% of the population respectively, while SMEs account forover 90% of private sector organisations and employ the majorityof the population.
The SEEP is aligned with Rwanda’s national developmentplan, which seeks to generate the rapid economic growthwhich is required to drive the country towards attainingmiddle-income status by 2020, and reducing poverty to 30%by 2015.
Faces & voices
Instructors at the Masaka ‘incubator’ Kicukiro District, near Kigali,where where people are helped to create or develop their ownbusiness ideas and skills.
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A shoemaker uses the skills he picked up at the Masakaincubator to fashion a pair of men’s shoes. The incubator wasopened in 2011 as part of the Rwandan Development Board’splan to create “a critical mass of viable and dynamic SMEs whichare significantly contributing to national economic development.”
Celestin Kabera, the director of the business incubator, poses infront of shoes made by the students. “Our objective”, Celestinsays, “is to make sure that people improve the quality of theirproducts, and increase revenue through different services suchas marketing and business plan development. We are here tohelp very small businesses to grow.”
Virginie Mukakabano’s small ‘Nice Dream Candles’ company ismaking good progress. The 65-year-old woman, though retired,has undertaken a new challenge. Along with a partner, she isproducing scented candles and essential oils.
Step-by-step training in entrepreneurship has seen the projectimprove at each stage. It was finally able to acquire the necessarybank loans to invest in equipment.
Her idea was to take ingredients from locally grown plants knownto ward off insects, and incorporate them into candles which,when burned, could repel mosquitoes. It was an idea withtremendous potential, given the prevalence of malaria in Rwanda.
With support from the African Development Fund and theRwandan government’s entrepreneurship developmentprogramme, Virginie’s idea came to life.
She worked to refine her business plan and received a $38,000loan to purchase the land and equipment she needed to build her candle production facility. ‘Nice Dream Candles’ has been operationalsince 2013, and has many Kigali restaurants and hotels among its loyal customers.
Says Virginie: “We were looking for someone to lend us the money to buy these machines, but we weren’t able to find anyone. In theend it was the program that agreed to guarantee 75% of the loan. It was a real opportunity, as we had no other means.”
Celestin Kabera
Virginie Mukakabano
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Management of Transboundary Animal Diseases in the Southern African Development Community(SADC) Region
Where? Angola, Malawi, Mozambique, Tanzania, Zambia. How much?ADF US$ 23 million.With whom? Co-financiers – USA (USAID), European Union, World Bank (IDA),UN Food and Agricultural Organization, UN International Fund forAgricultural Development, UN Development Programme,Netherlands, the governments of Angola, Malawi, Mozambique,Tanzania, Zambia.How long? 5 years (2008-2013).
Outputs & Outcomes
• Safeguarding a healthy environment for human beings andanimals.
• Promoting livestock trade.• Promoting food security.• Enhancing economic growth.• Strengthening regional integration.
The project, the context
Large swathes of Angola, Malawi, Mozambique, Tanzania andZambia have long been stricken by various Trans-boundaryAnimal Diseases (TADs), including rinderpest, contagious bovinepleuropneumonia (CBPP), foot-and-mouth disease (FMD), Africanswine fever, Newcastle disease, avian influenza, Rift Valley fever,
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and lumpy skin disease. Collectively, these diseases account forsignificant economic, trade and food losses.
Using an ADF grant along with resources from other partners, thecountries affected agreed on a joint initiative aimed at improvingfood security and promoting wealth creation through theprogressive control of transboundary animal diseases in theSouthern African Development Community (SADC) region. Themain beneficiaries who were targeted included livestock ownersand government officials in the five project countries, as well assurrounding areas affected by TADs.
The programme sets out a framework for the Southern AfricanCommission for the Control of TADs, including funding sources,sustainability, legal set-up, membership and level of authority. Itintroduces the Digital Pen Technology for animal diseasesurveillance, and provides training to Digital Pen Technologycountry focal persons. It holds numerous training coursesfocused on building capacity for improved risk analysis andmapping within the five project countries. It also analyzes andharmonizes national TAD preparedness plans, and strengthensearly warning systems and responses.
The capacity of national and regional epidemio-surveillancenetworks has been strengthened, through the introduction ofinnovative mobile data communication technologies. Decisionmakers at headquarters level can now receive animal diseasedata in almost real time, enabling prompt implementation ofcontrol measures. Through training on risk analysis andemergency response simulation exercises, the five targetedcountries are better prepared to manage TAD outbreaks.
Faces & voices
Flanked by two of his herdsmen, Jaspine Hibajene is a typicallivestock farmer in the Monze district. He owns 40 cows and spends the equivalent of $25 a month to have them vaccinated. He isone of the many who have experienced the bad times. In 2004 almost half of all the cattle in the Southern province were affected byfoot and mouth disease, and had to be destroyed.
Jaspine Hibajene
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Jaspine with one of his 40 Tongas, a sturdy breed of cattle valuedfor their milk and their meat, and also for being work animals.Fully grown, the animal can weigh 210 kilos. A veterinary assistantusing the latest technology visits his herd regularly. Any outbreakcan be recorded, reported and controlled in a matter of hours.Altogether there are some 137,000 cattle in the district today.57,000 have been protectively vaccinated against foot and mouthdisease, which still represents the greatest threat to the health ofthe livestock industry. The project also provided funding forlaboratory equipment, hardware and software. The CentralVeterinary Research Institute Laboratory in Lusaka aims toproduce its own vaccines, thereby replacing expensive imports.Here, too, strains of the various animal diseases can be analysedand identified.
For the young generation of cattlemen, ensuring their future bymonitoring the health of their families’ herds is one of the project’smain aims. This was carried out in collaboration with authoritiesin neighbouring Malawi, Tanzania, Angola and Mozambique thatshare the project. Early reporting and containment of TADs acrossthe Southern African Development Community was the ultimateobjective, and has largely been implemented through a regionalsurveillance network.
Anthony Muntanga is a driver for the Best Beef Company. Thecompany has doubled its distribution of beef and beef productsin three years. Potentially, livestock and related exports could beworth $40 million to Zambia. Thousands of cattle are nowprocessed in the Best Beef Company’s abattoirs. One of thelargest in the country, it has 120 employees.
Consumer confidence in beef has risen since extended and moremodern health controls were introduced by the project.Processing plants near the capital Lusaka have had a difficult pastdecade, as failure to deal with outbreaks of animal disease turnedpotential consumers away from beef products of all kinds. Across-boundary outbreak of foot and mouth in 2008 is estimatedto have cost the industry more than $15 million. Thanks to theAnthony Muntanga
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TADs project, Zambian officials say they have been able to reducethe risk of a serious outbreak by 70%.
Company owner Trevor Kalidis is hoping he will be able to hireeven more staff as he continues to expand his business. “Wewere able to increase production by 30%, we have a newprocessing plant, and we have given 60 people new jobs”, hesays.
Best Beef Company employees relax during a tea break. Asrecently as 2012 the abattoirs were shut down for a month byanother outbreak of contagious disease. Twenty of thecompany’s principal clients looked elsewhere, but since then tenhave returned and production is now 90 tons a month, up by athird in five years. Employment seems more secure for thoseinvolved in Zambia’s meat and livestock industry, although itremains relatively small in comparison to neighbouring nationssuch as Tanzania and Zimbabwe.
Trevor Kalidis
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West African Monetary Zone Payment System Development Project (The Gambia, Guinea and Sierra Leone)
Where? The Gambia, Guinea, Sierra Leone.How much? ADF US$ 28.17 million grant.With whom? Co-financiers – Nigeria (NTCF), Islamic Development Bank,Economic Commission for West African States, African CapacityBuilding Foundation, and the Governments of The Gambia,Guinea and Sierra Leone.How long? 3 years (2008-2011)
Outputs & Outcomes
• Full economic and financial integration of the WAMZ region.• Increased participation of the citizens of the four WAMZcountries in the formal financial sector.
• Enhanced efficiency of funds transfers across the four WAMZcountries.
The project, the context
The West African Monetary Zone project was established in 2008using a grant of US$23 million from the African DevelopmentFund (ADF) along with additional support from other developmentpartners. The primary objective of the project was to standardizethe payment systems in The Gambia, Guinea and Sierra Leonethrough the development of a Real-Time Gross Settlement(RTGS) payment system in the three countries. RTGS is a largevalue funds transfer system in which financial intermediaries can settle interbank transfers for their own account, as well as for theaccount of their customers. It links with SWIFT for sending and receiving payment messages.
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As a result of this project, the performance of the financialsystems in these countries has greatly improved, therebyboosting their general economic efficiency. The project alsoassisted the harmonization of the payment systems in the rest ofthe other WAMZ member countries (Ghana and Nigeria) byfacilitating the creation of a Monetary Union in the Zone.
The project also assisted the three countries in automating theirretail payments through the development of an AutomatedClearing House (ACH) and Automated Check Processing (ACP).The project was designed to upgrade the banking applicationsystems, incorporating Scriptless Securities Settlement System(SSSS). It also financed the upgrade of telecommunication andpower facilities to operate the systems.
The West African Monetary Zone (WAMZ) is a group of fivecountries within Economic Community of West African States(ECOWAS) working toward introducing a common currency,greater economic integration and trade among themselves. Thisis in line with the broader goal of creating a single monetary zonein West Africa under the Economic Community of West AfricaMonetary Cooperation Program adopted in 1987.
Faces & voices
The Gambia witnessed a small monetary revolution. The smallWest African nation reached a milestone in radically changing itspayment systems and banking infrastructure. Now most financialtransactions are faster and safer both for big business and theman in the street.
The traditional way - thousands of Dalasi bank notes awaitcounting, recounting and processing in the back office of theCentral Bank. Carrying or storing large amounts of cash may notbe as necessary in future, cutting back on the risk of being robbed.
The modern way - An employee at the Central Bank checks hercomputer screen as transactions are logged through the Real
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Time Gross Settlement (RTGS) system. The software can handlevirtually all transfers or collection operations instantaneously.
Banjul Standard Chartered Bank’s Head of CommunicationKaralang Jaiteh confidently says, “Manual transactions go witherrors. This project means this will be thing of the past… there isno room for error, any error…”
The new system means customers can now withdraw cash fromany bank’s ATMs.
Fatou Sinyan Ergan heads the Banjul Breweries Limited company.Like many business people she’s delighted with the bankingreforms, “We pay huge amounts to our big suppliers like theelectricity and petroleum companies. Those bills are large, sousing the RTGS facilitates the payment and it’s faster…”
With the reform in the methods of payment, the Gambia is in theprocess of joining the five other nations of West Africa who arecommitted to creating a monetary union, namely Nigeria, SierraLeone, Guinea, Liberia, and Ghana.
Karalang Jaiteh
Fatou Sinyan
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Ghana Rural Enterprises Programme
Where? 161 out of 170 rural districts of Ghana. How much? ADF US$ 74.54 million loan.With whom? Co-financiers – International Fund for Agricultural Development,the Government of Ghana.How long? 4 years (2013-2017).
Outputs & Outcomes
• Creation of 100,000 new jobs.• Creation of business development services.• Development of agricultural commodity processing infra -structure.
• Creation of an enabling business environment.
The project, the context
Ghana’s agriculture is characterized by subsistence productionunits, low technology, low productivity, and low returns. Linkagesto industry are weak. The government maintains that 11 millionGhanaians who live in the country’s rural districts have oftenbeen left behind in the process of modernisation, forcing manyof them to abandon ancestral lands and head for the cities andan uncertain future. Therefore, the government sought ADF’stechnical and financial support for the Rural Enterprise Project(REP), in order to reduce poverty and improve living conditionsin the rural areas of the country. The project has already had twoADF funding phases, and is now in its third one (REP III) whichwill run until 2017. This brings total support from the AfDB toover $70 million.
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Agricultural transformation through agro-based industrialdevelopment, value addition, and the expansion of employmentand technological capacity are among Ghana’s key developmentobjectives. The government also strives to ensure thegeographical distribution of industrial development, across allregions. The design of the project also took into account thefindings and recommendations of two studies financed by theBank in 2012, on promoting youth employment in agriculture, andon competitiveness of Rural Technology Facilities (RTFs). Thedevelopment objective is to increase the number of rural microand small-scale enterprises that generate profit, growth andemployment opportunities.
Faces & voices
Age and sex are no barrier to success. Grandmother AgnesAcheampang’s soap business near Donkorkrom is thriving. Shereceived technical training for her home-based enterprise. Agnessays profits from her business, which are showing a 150% returnon initial investment, have allowed her not only to send two of hergrandchildren to one of Ghana’s best universities, but also to takeon four full time staff.
Joseph Minta’s mushroom farm is benefiting not just his familyof five, but others keen to learn from the manager. Joseph sayshe has been able to pass on the skills he learned through theproject to almost 900 others. He and his wife now say they canlive what they describe as a comfortable life. Joseph says thatone key to success is that he was taught more than how tocultivate mushrooms. “They helped me in management trainingand record-keeping. They’ve also taught me to go the banks andget financial assistance”, he says. Such training will help Josephkeep his success long-term.
Prince Asamoah Boateng was selected as the best rabbit farmerin Ghana’s Kwahu Afram Plains North District. Aged just 20 whenhe enrolled with the project’s training facilities, Prince says hisexperience taught him how to help himself and also how to help
Agnes Acheampang
Joseph Minta
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others. He says he has become a popular young man. “Peoplefrom far away come here to learn about rabbit farming. It’scertainly made a big improvement in my family.” Prince says hehas helped cousins and nephews and nieces through school andis an active contributor to local charities, donating rabbits to thepoor and underprivileged in his home region.
Rebecca Minta stands beside a mountain of sawdust-basedfertiliser used in the family’s mushroom and snail farm. She says:“My husband is gainfully employed and we can pay workers. Wecan pay the school fees and we have a house and everything weneed”. In fact the Minta’s mushroom business keeps more thana dozen people employed at least part-time. An estimated150,000 rural Ghanaians have taken part in the project’s varioustraining programmes.
Nana Beatrice Ansah Akua owns the Cassava Processing Group.The new and improved machinery has allowed her to produce alot more cassava flour, as well as providing jobs in her flourishingenterprise. An astute businesswoman, training in businessmanagement has converted her company into an efficientproduction line where the cassava is grated, pressed, fried, dried,sieved and finally packaged. The first stage, the peeling, is stillcarried out manually, however.
Prince Asamoah Boateng
Rebecca Minta
Cassava Processing Group Nana Beatrice Ansah Akua
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Malawi project for sustainable ruralwater and sanitation infrastructure forimproved health and livelihoods
Where? Rumphi, Nkhotakota, Ntcheu, Mangochi and Phalombedistricts, Malawi. How much? ADF US$ 35 million loan.With whom? Co-financiers – Nigeria (NTF), Rural Water Supply and SanitationInitiative (RWSSI), Government of Malawi.How long? 5 years (2014-2019).
Outputs & Outcomes
• 1.3 million people provided access to clean water in rural areasof Machinga, Mulanje, Lilongwe and Zomba districts.
• Over 238,350 people accessing improved sanitation from thefacilities constructed at 100 schools, 19 health centres and in21 markets.
• Over 1.3 million trees planted across 100 hectares andcatchment areas.
• 4 new District Water Offices and 12 staff houses constructedand handed over to the District Councils.
The project, the context
The project – funded with an ADF loan and the Rural WaterSupply and Sanitation grant – is designed to promote Malawi’ssocial and economic growth by improving the health andlivelihoods of people in rural areas, through a clean water supplyand improved sanitation. This can be achieved throughincreased access to clean and sustainable water and improved
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and inclusive sanitation; improved resilience of water resources;and sustainable community management of water supply andsanitation facilities.
The essential works include the rehabilitation of 12 gravity-fedwater supply schemes; the construction of 450 new boreholes;reforestation; training on climate change adaptation;strengthening of the monitoring of water resources; theconstruction of institutional sanitation facilities; trainingcommunities on improved sanitation and hygiene; improving thecapacity of district councils; and reviewing National WaterPolicy.
The project, which will be completed in June 2019, willconsolidate the outcome of the National Water DevelopmentProgramme (NWDP) in the districts of Lilongwe, Machinga,Mulanje, Mzimba, Ntchisi and Zomba. The NWDP, a national-level programme, was co-financed by the Malawi government,beneficiary communities and other development partnersincluding the World Bank, Australia, UNICEF/Netherlands, theUK, the European Investment Bank and the European Union.The programme addressed many areas of Malawi’s water andsanitation sector, including rural water supply, sanitation andwater resources management.
Faces & voices
In Mulanje District, where the project has funded the constructionand rehabilitation of over 350 boreholes and six gravity-fedschemes, women reported that they had previously spent up totwo hours to fetch water, walking nearly 2½ kilometers, each trip.Now, these women have more time for farming, and girls canget to school on time. People also say that they use more water,and that it is of better quality. They have observed fewer casesof diarrhea. One woman, when asked how access to animproved water source had affected her life, said: “I am a freewoman, now,” implying that she has significantly more time forher daily activities.
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With the ADF support, in Zomba Westa a village was connectedto an improved water source for the first time in over ten years.The beneficiaries reported that they will soon start collecting fundsto pay for the service, and they are aware that it will not be free.Elsewhere in Zomba District, a small community of thirteenhouseholds had recently begun collecting 600 Kwacha/month tocover operation and maintenance costs of the new water supply.
In Lilongwe District, two women employed during theconstruction of the Nsalu Water User Association Office said thatthey were paid to draw water for mixing cement as well as forsome construction activities. They had learned new skills, andenjoyed being employed there. One of the women is a memberof the General Assembly of the WUA.
At the Kasiya water point in Lilongwe District, an Environment andHealth Officer, who had also been trained through the program,explained that the new access to clean water has had an impacton communities’ health. He said that the last cholera outbreakwas in 2009 and 57 people had died then, but there have beenno outbreaks since then, and no loss of life.
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Senegal Rural Drinking Water and Sanitation Program (PEPAM)
Where? Kaffrine, Tambacounda, Kolda, Sédhiou and Ziguinchor regionsof Senegal.How much? ADF US$ 115 million.With whom? Co-financiers – African Development Bank, InternationalDevelopment Associa tion, Germany (KFW), Netherlands (NDF),Luxembourg, Belgium, Arab Bank for Economic Development inAfrica, Saudi Fund for Development, Islamic Development Bank,European Union, Government of Senegal.How long? 4 years (2009-2013).
Outputs & Outcomes
• Programme benefitting 800,000 people,• Target is to provide drinking water to more than 80% of thepopulation by the end of 2015.
• Target is to reduce the time spent fetching water in mosthouseholds by up to 70%.
• A big boost to agricultural production and gainful employment.• Improved hygiene and massive net reduction in water-borne(diarrhea) diseases.
The project, the context
Until recently, 40% of Senegal’s rural population did not haveaccess to drinking water. Hundreds of thousands of ruraldwellers, mostly women, had to walk several kilometers eachday to find water, which was often of poor quality. The lack of drinking water posed a direct threat to the lives and wellbeing ofseveral million people in the Kaffrine, Tambacounda, Kolda, Sédhiou and Ziguinchor regions in East, central and SouthernSenegal.
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Using resources from the African Development Fund, the Government of Senegal partnered with the African Development Bank aswell as other development agencies on the Rural Drinking Water Supply and Sanitation Programme (PEPAM) to improve the healthconditions of approximately 1.8 million inhabitants in the affected areas. The project transformed the lives of various communities byproviding potable water and sanitation infrastructure for over 150,000 people. It also provided maintenance equipment to privateoperators and established several Borehole Water Users’ Associations. In addition, the project introduced new hygienic practicesamong the entire population of 1.8 million.
The project is a component of the Millennium Drinking Water Supply and Sanitation Programme, which was put in place by thegovernment in 2005 to achieve the Millennium Development Goals (MDGs) by 2015. As Senegal’s first development partner forPEPAM’s financing, the Bank’s crucial contribution to its launch facilitated the mobilization of other donors. It also forms part of theAfrican Rural Water Supply and Sanitation Initiative which is improving living conditions in rural parts of the continent.
Faces & voices
The tower – a component of the water supply and sanitation programme – was the response to a situation in which there were justthree bore holes and 32 wells serving 15,000 people living in 54 villages, in addition to large herds of cattle and livestock. The watershortage had a negative effect on the local economy, and on education, and many farmers left the region and headed for Senegal’scities.
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Available water relieves women of domestic chores and lifts agricultural production
A member of a women’s cooperative watering her produce inSakal village in Louga Province. The investment in the projectwent beyond providing water: in this case, it encouraged womento set up business for themselves. In the ‘Great Green Wall’ pan-African project, some associations number up to 200 women.While some cooperatives existed before the mains water arrived,they were generally small and provided very little additionalincome, since women still found themselves tied to the time-consuming chore of fetching water from the nearest source,which was often quite distant from their villages.
Building sustainable water management practice
Yacine Diop stands at the front of a queue to pay water bills at Ndiobene Mbatar. A mother of two, Yacine recalls that until the watertower was built, she and her children had to leave the village early to fetch water. “When I got to the well”, she says, “I had to waitfor hours to collect only a little water. The water from the bore hole is much better. It’s clearer, and there is no more diarrhea orwater-borne diseases.
A member of a women’scooperative
Ndiobene Mbatar
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The collection of water rates and the maintenance of the boreholes, pumps and standpipes is the responsibility of the User’sAssociation, whose President in the village of Ndiobene Mbatar is Dame Diop. He says his association has a committee of ninemembers, of whom three are women. He adds, “At the end of the month we pay off the driver and other employees, we buy dieseland the rest of the money is deposited… and used for the maintenance of the standpipes and the pumps which are crucial to waterdistribution”.
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Djibouti Geothermal Exploration Project in Lake Assal Region
Where? Fiale area north of Lava Lake, Tadjourah region.How much? ADF US$ 7.5 million.With whom? Co-financiers – Nigeria (NTCF), Islamic Development Bank,African Capacity Building Foundation, Sustainable Energy Fundfor Africa, World Bank (IDA, ESMAP); Global Environment Fund,OPEC Fund for International Development, France (AFD),Government of Djibouti.How long? 3 years (2013-2016).
Outputs & Outcomes
• 20-megawatt geothermal power plant constructed. • 88 percent of people in Djibouti connected to the national grid. • 11 million fewer tonnes of national carbon dioxide emissions.
The project, the context
Bubbling away under Djibouti’s Lake Assal, in the Great Rift Valley,lies a reservoir of potential geo-thermal power that could beenough to power Djibouti three times over. Tapping this potentialis expensive.
In late 2013, the ADF provided Djibouti with a $7.5-million grantto help expand geothermal exploration. This will support thegovernment’s ambitious plan to construct a 20-megawatt powerplant by 2020, in partnership with the private sector.
The project is supporting the construction of a 20-megawattgeothermal power plant, which could be expanded up to 50-
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megawatts. It aims to connect 88 percent of the people in Djiboutito the national grid, up from 50 percent now. It will reduceDjibouti's carbon dioxide emissions by 11 million tonnes. It willhelp reduce the price of electricity in Djibouti, which is three timesmore expensive than Kenya and six times higher than inneighbouring Ethiopia.
The funding will help the government pinpoint the best wells, trainfuture geologists and attract private sector financing for a 20-megawatt power plant, scheduled to come online by 2020. Oncompletion, the plant is expected to help Djibouti reduce itsreliance on electricity imports and pricey fossil fuels, which makepower in the country six times more expensive than inneighbouring Ethiopia.
The plant is also expected to help bring electricity to the nearly50 percent of people living in Djiboutian who are not connectedto the national grid. A third phase of the project would expandthe plant to 50-megawatts, which would be enough to cover two-thirds of Djibouti's present-day energy needs.
Faces & voices
Geologist Ali Barreh Adaweh is scrambling through a sea ofblackened lava rock when he stops and points to a fissure thelength of a football field. Rising from one end is a column ofsteam.
Below this desert sauna is a hotbed of geothermal activity thatAdaweh and other scientists believe could power resource-poorDjibouti and drive economic development in the tiny Horn ofAfrica state.
“There is so much potential here,” says Adaweh. “It could have atremendous impact on the country's social and economicdevelopment.”
Ali Barreh Adaweh
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Djibouti, a sun-scorched nation of 800,000 people, sits atop theGreat Rift Valley. The depression is laden with super-heatedunderground reservoirs of water and steam, the ingredientsneeded for geothermal energy.
Scientists believe there are 200 mega-watts of potential powerunder Djibouti, much of it concentrated around the salt-water-filled Lake Assal.
But getting at the energy is costly and the government of Djibouti- heavily reliant on imported fossil fuels - has been trying toharness the reserves for 40 years.
The African Development Bank is now helping speed thatprocess along. In late 2013, it gave Djibouti a $7.5 million grantto ramp up geothermal exploration, part of raft of donor funding.The money will support an ambitious plan by the government toconstruct a 20-megawatt power plant by 2020, with privatesector support.
“Geothermal energy is clean and renewable, the exact oppositeof fossil fuels,” says Donatien Kouassi, the African DevelopmentBank's Country Programme Officer for Djibouti. “This ties in withthe Bank's Ten Year strategy, which focuses on supporting greengrowth.”
The funding for geothermal exploration was part of a larger effortby the Bank to bolster Djibouti's power sector and spur economicdevelopment in the country. It has provided US $95 million tosupport the construction of power lines between Djibouti andEthiopia, which helped lower the cost of electricity. It has alsoinvested in the Doraleh port, which is rapidly becoming one ofthe leading container terminals in the Red Sea.
“Djibouti is a small country but it has sizeable potential”, saysKouassi. “It has several major investment projects in the worksto bolster its development, and the availability of energy isessential.”
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Back on the shores of Lake Assal, geologist Ali Barreh Adawehand his colleague Djama Robleh Djama approach a weathered,metre-high metal pipe jutting out of the desolate Djiboutian plain.It is a trial well, sunk decades ago, when the idea of geothermalpower first captivated the nation. Today, these wells cost aboutUS $1 million, and Djama said support from the AfDB is vital tomaking the geothermal dream a reality.
“If there was no money coming through, there would not be asingle hole drilled,” says the engineer.
The money will help geologists pinpoint the best wells, train futuregeologists and ultimately, it is hoped, attract private sectorfinancing for a power plant.
The influx of funding has Adaweh bullish about the future. Anenvironmentalist by trade, he says geothermal energy, which iscarbon neutral, will help Djibouti do away with polluting fossilfuels. He also believes a cheap, stable supply of power will lurenew business to Djibouti.
Ali Barreh Adaweh and his colleague Djama Robleh Djama
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Kenya Menengai Geothermal Development Project
Where? Menengai, Kenya.How much? US$ 145 million ADF loan & Scale-up Renewable Energy Fundgrant.With whom? Co-financiers – African Development Bank (ADB), World Bank,France (AFD), European Investment Bank, Government ofKenya.How long? 5 years (2011-2016).
Outputs & Outcomes
• 400 MW of power added to Kenya's national grid.• 500,000 homes and 300,000 businesses gain reliable accessto power.
• 2 million tons of CO2 emission avoided every year.
The project, the context
In 2010, around 84 percent of Kenyans had unreliable access topower. But their country had substantial geothermal potential,and the government made exploiting this green-energy resourcea priority in its 2030 vision. The government aims to develop 5000MW of geothermal energy. The Menengai field, in the Rift Valley,has a potential of up to 1600 MW.
In 2010, the African Development Fund provided the Kenyangovernment a grant to fund geothermal exploration and steampower generation in the Menengai field, using resources fromthe African Development Fund. The overall aim is to add 400MW of electricity to Kenya's national grid. The additional energy
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is set to provide power to 500,000 households and 300,000businesses, thereby boosting residents' access to reliableelectricity.
By adding 400 MW of power to Kenya’s national grid, it isexpected that 500,000 homes and 300,000 businesses will gainreliable access to electricity. Technical assistance and riskassessment services are being provided to Kenya's GeothermalDevelopment Company, and jobs are being created forcommunity members and Kenyan infrastructure companies.There are currently seven active steam wells, in addition to fivestill being analyzed and another four that are in the drillingstages.
Menengai used to be a hotbed of volcanic eruptions and fluid lavaflows where the African continent is gradually separating alongthe East African Rift Valley. Now what remains is a vast networkof super-heated water and steam vents, thousands of metersunderground. Experts believe the caldera could produce as muchas 1,200 MW of energy. During the first phase of this project(2011-2016), 400 MW will be tapped. For Kenyans, this wouldmean dependable access to electricity at less than half thecurrent price.
This effort includes assisting the Geothermal DevelopmentCompany (GDC) – a corporation owned by the Government ofKenya – to build a bankable financial model for the project. Thiswork carries out the drilling risk that the private sector is reluctantto take on, and lays the ground for private sector involvement inpower generation.
In collaboration with the African Development Bank, GDC is alsoworking to create a geothermal training center to promoterenewable energy initiatives across Africa. Countries like Tanzania,Djibouti, Comoros and Rwanda, which are exploring geothermalenergy options inside their borders, will be able to train underGDC experts and learn how to tap into their own geothermalpotentials.
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This is one of many geothermal development projects which theBank is spearheading regionally. The Bank is also working withgovernment officials in Ethiopia, Djibouti, Comoros and Tanzaniato explore the Rift Valley's green energy and geothermalpotential.
The Kenya project is co-financed by the African DevelopmentBank (US$ 120 million), the Climate Investment Fund hosted bythe African Development Bank Group (US$22.5 million), theFrench Development Agency, the European Investment Bank,and the Government of Kenya.
Faces & voices
Caleb Indiatsi, Kenya’s Geothermal Development Companymanager of corporate planning and projects
“The electricity generated is expected to reduce the current priceof electricity, which is KSh 16 per kilowatt per hour, to betweenKSh 7 and KSh 9 ... Cheaper electricity will spur economicactivities both at local and national levels, resulting in job creationand improved livelihoods.”
Youssef Arfaoui, the African Development Bank’s chief renewable expert
“The Menengai reservoir has high resource potential... In order toexploit the resources wisely, GDC prepares studies continuouslyas it moves forward with drilling to avoid surprises and determinehow to manage the Menengai reservoir properly during theproduction of electricity.”
“The African Development Bank’s energy strategy puts emphasison assisting regional member countries to make the transition togreen growth by exploiting their natural resource potential. Kenyahas a high resource potential in geothermal and wind power.Therefore the Bank as an African development institution iscommitted to assisting Kenya.”
The power of steam is on display with seven wells
now in action.
Geothermal power is cleaner and green thanother methods. By exploiting the Menengaisite, Kenyan authorities expect to avoid 2million tonnes of CO2 emissions per year.
During the first phase of the project, the vast Menengai Caldera in the RiftValley is expected to add 400 MW of green electricity to Kenya’s power grid.
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Tanzania Support to Maternal Mortality Reduction Project
Where? Mara, Tabora, Mtwara and Zanzibar.How much? ADF US$ 22.5 million loan.With whom? Arab Bank for Economic Development in Africa (BADEA),Government of Tanzania.How long? 5 years (2011-2016).
Outputs & Outcomes
• 14% increase in births attended by skilled personnel by 2011in three regions.
• 13% decrease in home births by 2011 in three regions.• 36 dispensaries, eight health centres and three district hospitalsrehabilitated.
The project, the context
Even though the Tanzanian healthcare system has experienced improvements in recent years, the rate of deaths among mothers andnew-borns remains high. Almost seven percent of new-born babies died shortly after birth (as of 2005), and six percent of womenperished during or after delivery. Many of these deaths were from preventable diseases, like malaria, emergencies that could havebeen treated with better care, or complications that could have been avoided altogether with prenatal monitoring.
To help reduce the high rate of death among mothers and new-born babies, the African Development Fund has invested US$ 60million since 2007 to support the Tanzanian government bolster healthcare services for pregnant women and new mothers. This effortis focused on the regions of Mtwara, Tabora and Zanzibar.
Six health clinics have been renovated, and 40 nearby staff houses built in Zanzibar, giving pregnant women and mothers betteraccess to pre-natal and birthing support in the region. Several health centres covered by the project now have ambulances,
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while many are now linked by radio, improving response timesand care. The annual enrolment at Zanzibar’s main medicalschool has doubled to 800 students, providing desperatelyneeded nurses and lab technicians for the archipelago's healthcenters.
Upgrading facilities and encouraging mothers
This effort has empowered officials to upgrade districthospitals, health clinics and dispensaries. At the same time,staff housing is being built near health facilities. This means thatthousands of pregnant women and mothers across the threeregions now have better access to pre-natal checks, birthingfacilities and other pregnancy-related services. The Bank’sinvestment has also helped hospitals to buy ambulances andto link facilities by radio.
Healthcare workers have also been able to raise awareness aboutthe benefits of the new upgraded services and facilities, which iscrucial in rural Tanzania where many women still give birth athome.
More trained professionals
Providing training opportunities is also a key element of this effort,and one that is now showing results. For example, the College ofHealth Science in Zanzibar has undergone a majortransformation. Funding from the Bank helped build two newwings, provide laboratory equipment and computers, andconstruct dormitories for scores of students. That helped theschool increase its annual enrolment to 800 students, providingdesperately needed nurses and laboratory technicians for thearchipelago's health centers.
National healthcare managers and decision-makers are takingthe lessons learned from this effort to work out ways ofexpanding similar services to more pregnant women and newmothers.
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Pili Ali Mosi and her baby attend the Matemwe Second Line Dispensary in Zanzibar. The clinic was refurbished with financial support from the AfDB.
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Faces & voices
For most of her life, Pili Ali Mosi gave birth unassisted. The 40-year-old gave birth to her first three children at home, with littleassistance from a traditional birth attendant. She knew therecould be complications, but the nearest hospital was far awayand the local clinic was often closed at night, making homedelivery the only option.
When she became pregnant last year, Mosi was facing apotentially risky pregnancy because of her age, so she went tothe Matemwe Second Line Dispensary, a clinic that had recentlybeen modernized by Zanzibar’s health department with financialsupport from the African Development Bank (AFDB).
Nurses provided Mosi with prenatal vitamins, monitored herpregnancy, and when the day came, provided her with a safe,clean space to deliver her baby.
“It was much more comfortable … than giving birth at home,” shesays, clutching her one-year-old son, Ali. “This is really useful for the community.”
The renovation of the Matemwe clinic is part of a wide-ranging effort by Tanzanian health officials, with financial support from theAFDB, to improve healthcare across the country and reduce the number of mother and new-born deaths. Many of those deathswere from preventable diseases, like malaria, emergencies that could have been treated with better care, or complications thatcould have been avoided altogether with prenatal monitoring.
To address these issues, since 2007 the AFDB has since 2007 loaned the Tanzanian government US$ 60 million, empowering officialsto upgrade six clinics and build 40 staff dorms in Zanzibar alone. The funding has also helped the health department buy ambulances,link health centers by radio and double the intake at the archipelago’s main medical school. Healthcare workers were able as well toreach out to the community, raising awareness about the benefits of clinics like Matemwe.
“Maternal mortality has an impact on almost all other aspects of healthcare,” says Mohammed J. V. Dahoma, Zanzibar's Director ofPreventative Services and Health Education. “Without our mothers, we would not be here, and without kids, there would be no future.”
The government is now looking to apply the lessons from the project to other parts of the healthcare sector. “The challenges of thehealth sector are very broad,” says Dahoma. “This was a focused intervention with definite results. What we need is to scale it up.Through the health system, we can help realize our other development goals.”
Zaujat Abu Omar, 26 a nurse at the Matemwe Second Line Dispensary.
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Every month, 12,000 patients stream through the doors of the Mwera Second Line Dispensary, a clinic shoe-horned into a colonial-era building in Zanzibar. This is the first stop for everyone from expectant mothers to HIV patients, but it is cramped, it is hot, and itcloses by late afternoon.
Next door, the Zanzibari health department is building a sprawling new clinic with support from the Bank. It will offer a wider range ofservices, including delivery, and contain staff dorms, ensuring medical professionals are available 24/7. That is crucial for pregnantwomen, who often give birth at home because the nearest well-equipped clinic is far away, according to local residents.
“The community will benefit a lot because they will havegood health services close to them,” says Tunza Ali Shaali,a village leader.
Residents are hoping the new clinic will transform thecommunity in the same way that the second line dispensaryhas changed Matemwe.
About 16,000 patients were treated at the clinic last year,including 113 new mothers.
Among them was Rehama Abdullah Abdullah. Shedeveloped an infection after giving birth and went to theclinic for treatment. A nurse was able to get her the medicineshe needed.
“It’s close by, and people can get services at night,” shesays of the new facility. “The staff is always available.”
Twenty-two-year-old Maecho Mwambile Makame agrees.Nine months ago, she gave birth to her second child at theclinic, where she received information on how to care forherself and her baby.
“Our community has access to more services now,” she says. “It’s most important to have this access during delivery in case there isa problem.”
Maecho Mwambile Makame, 22, and her baby, eight-month-old Kassim SuliemanHamza, attend the Matemwe Second Line Dispensary in Zanzibar.
The clinic was refurbished with ADF financial support.
About the African Development Fund
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Who we are
The African Development Fund (ADF) is a multilateral source of concessional assistance dedicated exclusively to the needs of Africa’spoor and vulnerable people. The ADF is the oldest and largest of existing special funds managed by the African Development Bank(AfDB). It was established in 1972 and became operational in 1974. Resource allocations from the 27 countries which support theFund are used to finance projects and programmes in 34 countries which are eligible for ADF funding. These include countries that areincreasing their economic capacities and heading toward becoming the new emerging markets—as well as those that remain fragileand need special assistance for basic service delivery. Nearly half of ADF clients are countries emerging from difficult economicconditions due to conflict and external shocks.
What we do
ADF is designed to contribute to poverty reduction and economic and social development by providing loans on concessional termsand grants to the AfDB’s regional member countries (RMCs) that have low incomes per capita and limited or low creditworthiness.ADF funding is used for projects and programs, as well as technical assistance for studies and capacity-building activities.
In addition to concessional loans and grants, the ADF provides significant levels of debt relief through the Multilateral Debt Relief Initiative(MDRI), which complements the Heavily Indebted Poor Countries (HIPC) led by the Bretton Woods institutions.
How we are funded
The Fund’s resources consist of contributions from internal Bank resources and periodic replenishments by donor countries, usuallyon a three-year basis. Initial contributions to ADF were pledged in 1972. The first replenishment – ‘ADF 1’ – took place in 1974 andcovered the period 1976-1978. The ADF has been replenished thirteen times. Cumulatively, the top five subscribing countries to theADF are France, Germany, Japan, the United Kingdom and the United States of America.
The current ADF period is ADF 13. Consultations on the thirteenth replenishment were successfully concluded in September 2013,when deputies agreed on US$ 7.3 billion replenishment for the Fund’s activities for the period 2014-2016. The top 10 contributors toADF 13 were the Canada, France, Germany, Italy, Japan, Netherlands, Norway, Sweden, the United Kingdom and the United Statesof America.
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Eligibility for ADF assistance
Borrowers' eligibility for the ADF is based on two criteria: per capita gross national income (GNI), and creditworthiness to borrow fromthe ADB’s ordinary capital resources. The AfDB uses the World Bank’s per capita GNI estimates based on the Atlas method, and theInternational Development Association’s operational cut-off for eligibility.
Currently, there are 34 borrowers that have access to ADF resources. These Regional Member Countries of the Bank Group fall intotwo categories: “ADF-only” countries, and “blend” countries, which have access to both the ADF and ADB’s ordinary capital resources.
How ADF resources are allocated
The main instrument for distributing ADF resources is the performance-based allocation (PBA) system, introduced in 1999. Based ona formula that includes a number of key development variables, the policy is designed to allocate ADF support fairly among the manycompeting needs, and to direct the funds to where they will be used most effectively.
Under the current ADF framework, the proportion of assistance provided as grant financing is contingent on the country's risk of debtdistress. This is determined by the outcome of a forward-looking Debt Sustainability Analysis when available, or by a comparison ofthe country's latest available external debt indicators. High-risk countries receive 100% of ADF funding as grants, moderate-riskcountries receive 50% of funding as grants, while low-risk countries will receive only loans. Countries classified as ‘gap’, ‘blend’ and‘graduating’ are not eligible for grants, regardless of their DSA status. To avoid rewarding poor performance, a 20% volume discountis applied to the grant portion of a country's performance-based allocation.
How ADF resources are utilized
ADF-financed operations serve many of the economic, strategic, and humanitarian interests of contributing members in a cost-effectivemanner. No other multilateral fund is as directly and broadly involved in the economic and social development of poor and lesscreditworthy countries on the African continent.
AfDB member countries see ADF financing as important for achieving the institution’s vision of a continent free from poverty. In supportof this overarching objective, ADF financing is used to support development projects and programs prioritized in the Bank Group’scurrent 10-Year Strategy for 2013-2022, which include: infrastructure, private sector development, regional integration, governanceand accountability, skills and technology. The ADF Board approves all projects selected for support.
How ADF performance is evaluated
During negotiations for ADF, donors collectively set out detailed activities and milestones for implementation. A donors’ report, whichoutlines in detail the major initiatives to be undertaken over the course of the replenishment period, is produced and disseminated atthe end of the negotiation process.
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Also built into the ADF replenishment process is a mid-term review. A meeting is generally convened halfway into the 3-year ADFperiod: it provides the opportunity for donors to take stock of progress made and challenges facing the ADF and the AfDB.
The AfDB has adopted a results management approach to improve the planning, monitoring, and evaluation of all its operations in aneffort to achieve and sustain intended development results. Using its Bank-wide Results Management Framework, the AfDB alsolaunched its Development Effectiveness Review series, which assesses the progress of implementing the Bank’s 10-Year Strategyand covers all operations financed by ADF and the AfDB’s ordinary capital resources. Within this approach, AfDB management regularlyreports to the Board of Directors about the operational progress of planned and actual use of ADF resources, as well as evaluationsof ADF-financed projects and programs. Lessons learned are then integrated into future operational planning for ADF borrowers.
Since its inception, the following countries have contributed to the African Development Fund:
Angola Argentina Austria Botswana
Belgium Brazil Canada China
Denmark Egypt Finland France
Germany India Italy Japan
Korea Kuwait Luxembourg Libya
Netherlands Norway Portugal Saudi Arabia
South Africa Spain Sweden Switzerland
Turkey United Arab Emirates United Kingdom United States of America
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