Africa Diaspora Linkage with the Motherland - Focus on ...africa diaspora linkage with the...

African Development Bank GroupAfrican Development Bank Group

AFRICA DIASPORA LINKAGE WITH THE AFRICA DIASPORA LINKAGE WITH THE MOTHERLAND MOTHERLAND FOCUS ON AFEA AND FOCUS ON AFEA AND AfDBAfDBMOTHERLAND MOTHERLAND –– FOCUS ON AFEA AND FOCUS ON AFEA AND AfDBAfDB

JOHN JOHN C. ANYANWU*C. ANYANWU*LEAD RESEARCH ECONOMISTLEAD RESEARCH ECONOMIST

DEVELOPMENT RESEARCH DEPARTMENTDEVELOPMENT RESEARCH DEPARTMENTAFRICAN DEVELOPMENT BANKAFRICAN DEVELOPMENT BANK

TEMPORARY RELOCATION AGENCYTEMPORARY RELOCATION AGENCYBP 323, 1002 TUNISBP 323, 1002 TUNIS

TUNISIATUNISIA

EE--MailMail:: [email protected]

KEYNOTE SPEECH AT THE AFEA PRESIDENTIAL ADDRESS AND DINNER DURING ASSA MEETINGS IN SAN DIEGO, CALIFORNIA

JANUARY 5 JANUARY, 2013

* * The views expressed here are those of the author and in no way reflect The views expressed here are those of the author and in no way reflect those of the Bank and those of the Bank and its Executive Directors.its Executive Directors.

Outline of PresentationOutline of PresentationOutline of PresentationOutline of PresentationII AN INTRODUCTION TO THEAN INTRODUCTION TO THE AfDBAfDBI.I. AN INTRODUCTION TO THE AN INTRODUCTION TO THE AfDBAfDB

II.II. POTENTIAL AREAS OF LINKAGE POTENTIAL AREAS OF LINKAGE BETWEEN BETWEEN AfDBAfDB & AFEA& AFEA

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I. I. INTRODUCTION TO THE INTRODUCTION TO THE AfDBAfDB• Permit me first to bring you felicitations from the African Development

Bank, particularly from our Chief Economist & Vice President, Prof.Mthuli Ncube, who I am representing.

• The AfDB is a multilateral development bank established in 1964 and• The AfDB is a multilateral development bank established in 1964 andofficially began operations in 1967. The Bank’s headquarters is inAbidjan, Côte d’Ivoire. However, as a result of political instability in thecountry, the AfDB Board of Governors in February 2003 decided toy, ymove the Bank to the current Temporary Relocation Agency (TRA) inTunis, Tunisia.

• The overarching objective of the African Development Bank Group isto spur sustainable economic development and social progress in itsregional member countries (RMCs), thus contributing to povertyreduction. The Bank Group achieves this objective by: (i) mobilizingand allocating resources for investment in RMCs; and (ii) providingand allocating resources for investment in RMCs; and (ii) providingpolicy advice and technical assistance to support developmentefforts.

• End-2011: Authorized Capital (UA 66.05 billion); Subscribed Capital

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p p(UA 37.32 billion); Shareholders: 54 African countries (regional membercountries) & 25 non-African countries (non-regional member countries)

I. I. INTRODUCTION TO INTRODUCTION TO THE THE AfDBAfDB ((contdcontd.).)

• The AfDB Group comprises of three windows: the AfricanDevelopment Bank (ADB), the African Development Fund (ADF),and the Nigerian Trust Fund (NTF).Th ADB i d id l t it li t i l• The ADB window provides loans to its clients on non-concessionalterms while the ADF (established in 1972 and became operationalin 1974) provides low-income RMCs with concessional loans andgrants for projects and programs and support through technicalgrants for projects and programs and support through technicalassistance for studies and capacity-building activities. The NTF isa special AfDB fund created by agreement between the BankGroup and the Government of the Federal Republic of Nigeria onGroup and the Government of the Federal Republic of Nigeria on26 February 1996 to assist the development efforts of low-incomeRMCs whose economic and social conditions necessitateconcessional financing.g

• The goal of AfDB Group’s recently developed 10-year Long TermStrategy is to support Africa’s ambitions to transform into a stable,integrated and prosperous continent based on the pillars of

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inclusive and green growth.

I. I. INTRODUCTION INTRODUCTION TO THE TO THE AfDBAfDB ((contdcontd.).)

• The AfDB is African countries’ first choice for development financing and for leveraging external resources.

Cumulative Bank Group Loans and Grants Approvals by Institution (%), 1967-2011

Cumulative Operations of the Bank Group (UA

million)

0.50%

50000

60000

70000

million)

58.90%

40.60%

ADB

ADF

NTF 20000

30000

40000

5

Approvals

Disbursements

0

10000

5

I. INTRODUCTION TO THE I. INTRODUCTION TO THE AfDBAfDB ((contdcontd.).)

Cumulative Bank Group Loans and Grants Approvals by Sector (%), 1967-2011

Multi-sector

Transport

Sector (%), 1967 2011

Agriculture

Finance

Energy

Industry

Water supply and sanitation

Social

0 2 4 6 8 10 12 14 16 18 20

Other sectors

Communication

y

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0 2 4 6 8 10 12 14 16 18 20

POTENTIAL POTENTIAL AREAS OF LINKAGE BETWEEN AREAS OF LINKAGE BETWEEN AfDBAfDB & AFEA& AFEA

AFEAAFEA membersmembers cancan havehave careerscareers atat thethe AfDBAfDB• The African Development Bank (AfDB) uses an online application process.

The online application process will enable you to:

h iSearch current vacancies

Create or update your candidate profile

Apply for a vacancy

Monitor Ongoing Status Updates on Applications Monitor Ongoing Status Updates on Applications

Attach a resume or other file(s) to an application

Send a job listing to a colleague

Contact us

• To apply for a position in the AfDB

You must be a national of a member country

You must not be less than 18 years of age and not older than 57 years

S b i li i f h i i i d i d Submit application for a vacancy as soon as the position is advertised, but no later than 11.59 pm (23.59 hrs) on the vacancy closing date. Vacancy closing dates are based on GMT.

http://www.afdb.org/en/careers/current-vacancies/7


Th B k’ Th B k’ SS CC i i Si i i Si VVi i PP id i l id i l The Bank’s The Bank’s SStructure tructure CComprising Six omprising Six VVice ice PPresidential residential Complexes: A Guide to Areas of InterestComplexes: A Guide to Areas of Interest

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THE THE CHIEF ECONOMIST’S CHIEF ECONOMIST’S COMPLEX: A DEEPER GUIDE TO CAREER IN THE COMPLEX: A DEEPER GUIDE TO CAREER IN THE AfDBAfDB

POTENTIAL AREAS OF LINKAGE BETWEEN POTENTIAL AREAS OF LINKAGE BETWEEN AfDBAfDB & AFEA& AFEA

CHIEF ECONOMIST

(ECON)

• Provide economic intelligence for Senior Management, Operations & RMCs

DEVELOPMENT RESEARCH

(EDRE)

AFRICAN DEVELOPMENT

INSTITUTE(EADI)

STATISTICS(ESTA)

Depts.-Knowledge generation-Knowledge dissemination- Knowledge support to

- Statistical database- Knowledge measurement

- Learning modules- Operations training- Knowledge and i f ti i(EADI)

ECONOMIC & STATISTICALTHE KNOWLEDGE

- Knowledge support to country and sector operations departments

t- Statistical capacity building

information services

RESEARCH(EDRE.1)

PROGRAM DESIGN AND

DEVELOPMENT(EADI.1)

ECONOMIC &SOCIAL

STATITICS (ESTA.1)

STATISTICAL CAPACITY BUILDING

(ESTA.2)

DEVELOPMENT MANAGEMENT

AND POLICY(EADI.2)

THE KNOWLEDGE AND

INFORMATION SERVICES

(EADI.3)

NETWORKING & RESEARCH

PARTNERSHIPS(EDRE.2)

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•• AFEA members can consult at the AFEA members can consult at the AfDBAfDB•• AFEA members can consult at the AFEA members can consult at the AfDBAfDB• The Bank may engage consultants to supplement its staff for limited

periods where recruitment is for shorter periods ranging between 6 to 12 weeks and often at short notice. – long-term consultancy is to 12 weeks and often at short notice. long term consultancy is also possible. These are usually individual consultants, self employed or provided by consulting firms.

• In order to enable the Bank to judge the acceptability of consultants proposed by Borrowers as well as those intended for its own assignments, the Bank maintains information concerning the qualifications, capabilities and experience of consultants in its Database on Consultants (DACON) system Database on Consultants (DACON) system.

• Any individual consultant can register in the DACON, provided he / she meets the following criteria for registration:

Be a national of a Bank’s member country;

Have at the minimum, a Masters Degree in the relevant specialization;

Have at least ten (10) years of work experience in the relevant specialization; and

Have relevant expertise and regional work experience normally required for Bank financed projects.

http://www.afdb.org/en/projects-and-operations/procurement/consultancy-services-dacon/

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POTENTIAL AREAS OF LINKAGE BETWEEN POTENTIAL AREAS OF LINKAGE BETWEEN AfDBAfDB & & AFEAAFEA

•• Younger AFEA Younger AFEA members can members can also be engaged as Junior also be engaged as Junior •• Younger AFEA Younger AFEA members can members can also be engaged as Junior also be engaged as Junior Consultants Consultants at the at the AfDBAfDB• Various organizational units of the Bank often require the services of

Junior Consultants to work with more senior colleagues in their work.

• Eligibility criteria for the recruitment of a Junior Consultant are:

At least a Master’s degree (or its equivalent) in a relevant discipline related to the assignment;

Be a national of one of the member countries of the Bank;Be a national of one of the member countries of the Bank;

Minimum of two years and a maximum of five years of relevant experience;

Be under 32 years of age;

Competent in the use of Bank standard software (Word, Excel, Access, PowerPoint, and web tools);

Fluent in French or English, with preferably a working knowledge of the other language.the other language.

The Bank will offer to selected individuals a contract that will not normally exceed six months duration.

http://www.afdb.org/en/about-us/corporate-procurement/expression-of-interest-for-junior-consultants/

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•• Student members of AFEA Student members of AFEA can can do Internship at do Internship at the the AfDBAfDB• The broad objectives of the program are to:

Provide students with an opportunity to acquire professional and practical experience at the African Development Bank.

Provide the Bank with a pool of potential candidates for future recruitment purposes.

However applicants should not expect the internship to lead to immediate l t ith th AfDB employment with the AfDB.

• To be eligible for internship, applicants must meet the following criteria:

Be students, aged between eighteen (18) to thirty (30) years, and currently enrolled in a master’s level degree program or its equivalent in a recognized public or private institution of higher learning The candidate can apply for an internship private institution of higher learning. The candidate can apply for an internship within one year of having obtained such a degree.

Provide a letter from their school confirming their enrollment.

Be citizens of one of the Bank’s member countries.

Be fluent in at least one of the Bank’s working languages (English or French) Be fluent in, at least, one of the Bank s working languages (English or French).

• Applicants are required to apply through this link: http://www.afdb.org/en/careers/internship-programme/

• Internships will initially be for a period of three months, renewable for up to six months (maximum). months (maximum).

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•• AFEAAFEA membersmembers cancan contributecontribute toto knowledgeknowledgegeneration,generation, collaboration,collaboration, andand disseminationdisseminationthroughthrough thethe AfDBAfDB platformsplatformsgg pp

Conferences and Seminars

Annual African Economic Conference (AEC):Annual African Economic Conference (AEC): Contribution to policy with the participation of policy makers Speakers at Knowledge Seminars- For internal and external debates and policy dialogues (especially regional policy dialogues)g p y g )Eminent Speakers Series

Collaborative Research on African Development & Policy p yIssues

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•• AFEAAFEA membersmembers cancan contributecontribute toto knowledgeknowledge generation,generation,collaboration,collaboration, andand disseminationdissemination throughthrough thethe AfDBAfDB platformsplatforms

Publication Outlets

African Development Review

AfDB Working Papers

Africa Economic BriefsAfrica Economic Briefs

Policy Briefs

Africa Emerging Issues

Inclusive Growth SeriesInclusive Growth Series

Studies/Books (for the Bank and collaborative), especially on emerging issues

• Contribution to the Bank’s Flagship PublicationsContribution to the Bank s Flagship Publications

African Development Report (ADR)

African Economic Outlook (AEO)

African Competitiveness Report (ACR)African Competitiveness Report (ACR)

Annual Report

– http://www.afdb.org/en/knowledge/publications/ 14


African Development ReviewThe African Development Review is a professional development economics Journal that provides a platform forJournal that provides a platform for expressing analytical and conceptual views, and encouraging debate among development specialists, policy makers, scholars and other professionals on pAfrican economic and developmental issues. The Journal publishes articles that reflect innovative thinking and analysis of key developmental challenges and policy issues facingchallenges and policy issues facing Africa. Up to end-2009, it was published three times a year in April, September and December. From 2010, 4 issues per annum are being published. Weannum are being published. We encourage submissions from AFEA members.

Submit manuscripts through: http://mc.manuscriptcentral.com/adrev

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p // p /


Working Paper Series (WPS)The Working Paper Series (WPS) report preliminary findings of research relevant to African development policy issues. The WPS has been published since 1983, under its old name ‘Economic Research Working Papers (ERWP), which was changed in 2007 to broaden its coverage. Since inception, over 164 papers have been published under the series. Authors of the WPS are encouraged to further develop their ideas and findings in

ftheir papers to the standard of journal articles, which would be submitted to the African Development Review, or published elsewhere.

Development Research Briefs/Africa EconomicDevelopment Research Briefs/Africa Economic Briefs

The Development Research Briefs/Africa Economic Briefs highlight recent research work of the Bank, or summaries of recent development issues relevant for Af i Th t t di f th B i f i l dAfrica. The target audience of these Briefs includes policy makers, politicians and development practitioners who cannot be reached through journals articles and other Bank publications.

16To publish in Working Papers and AfDB Africa Economic Briefs, submit your papers to [email protected]


•• AFEA members can AFEA members can have access to data/statistics, which have access to data/statistics, which they can use to advance knowledge and policy in Africa:they can use to advance knowledge and policy in Africa:• Access to Statistical Data Portal

• Access to Open Data for Africa

• Access to Statistics publications

• The AfDB Statistics Pocketbook• The AfDB Statistics Pocketbook

• African Statistical Yearbook

• Selected Statistics on African Economies

ill i l l• Millennium Development Goals Report

• African Statistical Journal

• Handbook on Infrastructure Statistics

• Compendium of Statistics on Bank Group Operations

• Gender, Poverty and Environmental Indicators on African Economies

• http://www.afdb.org/en/knowledge/statistics/ 17

POTENTIALPOTENTIAL AREASAREAS OFOF LINKAGELINKAGE BETWEENBETWEEN AfDBAfDB && AFEAAFEA

•• AFEA members can contribute to AFEA members can contribute to capacity capacity •• AFEA members can contribute to AFEA members can contribute to capacity capacity development in Africa through development in Africa through the the AfDBAfDB

• The Chief Economist’s Complex (ECON) of the Bank, apart from providing knowledge products and statistical information in Africa and for Africa, also engages in capacity development, training and also engages in capacity development, training and research dissemination in Africa. This is enhanced through collaboration within and outside the B k Bank.

• AFEA members can play an important role here, thus enhancing the development effectiveness of g pthe AfDB-funded operations and fostering policy dialogue and development management.

• http://www afdb org/en/knowledge/african development• http://www.afdb.org/en/knowledge/african-development-institute/

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•• AFEA members can AFEA members can contribute to the enhancement of contribute to the enhancement of projects and operations in regional member countries projects and operations in regional member countries (RMCs):(RMCs):(RMCs):(RMCs):

• Participation in missions and preparation of Country Strategy Papers (CSPs) and Regional Integration Strategy Papers (RISPs) etcStrategy Papers (RISPs), etc

• Participation in missions and preparation of project and program financing for inclusive and green growth,

i ll i i f t t i t t i lt especially in infrastructure, private sector, agriculture, human capital development as well as good governance, gender equity and regional integration.

i i i i d i l li di l• Participation in country and regional policy dialogues

http://www.afdb.org/en/projects-and-operations/http://www.afdb.org/en/projects and operations/

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•• AFEA members can participate in and support the African AFEA members can participate in and support the African Diaspora Diaspora Development Development Fund , the Fund , the Migration and Development Migration and Development Fund (MDF) Fund (MDF) created by the created by the AfDBAfDB ..

• Over 30 million Africans have migrated to other countries in Africa or • Over 30 million Africans have migrated to other countries in Africa or to other continents and group holds tremendous potential for the development of Africa as indicated by a strong flow of remittances. Remittances are the continent's largest source of net foreign inflows

f f i di i R i fl Af i d l d after foreign direct investment. Remittance flows to Africa quadrupled between 1990 and 2011, to nearly $42 billion (see charts).

• Evidence has shown that remittances support economic growth and increased spending on health, education and nutrition, which p g , ,contribute to long-term productivity gains, diversify sources of household income and function as insurance against shocks, thus reducing poverty.

• However the cost of sending remittances to Africa is the highest in the • However, the cost of sending remittances to Africa is the highest in the developing world.

• The MDF addresses this cost by encouraging competition among money transfer operators, by supporting a regulatory framework and by backing the introduction of innovative technologies.

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Remittances inflows have steadily increased and are the most stable Remittances inflows have steadily increased and are the most stable

Inflow of External Finances to Africa Inflow of External Finances to

Remittances inflows have steadily increased and are the most stable Remittances inflows have steadily increased and are the most stable foreign inflowsforeign inflows

60000

70000

(US$m), 1981-2011

5

6

Africa (% of GDP), 1981-2011

40000

50000

Net ODA (US$m)

FDI I fl 3

4

Net ODA (% of GDP)

20000

30000FDI Inflows (US$m)

Remittances (US$m) 2

3FDI Inflows (% of GDP)

Remittances (% of GDP)

0

10000

198

0

198

3

198

6

198

9

199

2

199

5

199

8

200

1

200

4

200

7

2010

0

1

21


• The MDF works to support community development in Africa. Specifically, the fund provides financing for innovations that:provides financing for innovations that:

Improve knowledge about migrant remittances in Africa

Support reforms of the regulatory framework that governs money transfer conditions

Develop new financial products Develop new financial products

Support productive investment in migrants’ countries of origin g

Support local development in migrants’ countries of origin

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• Institutions and individuals who apply for financing through the MDF will be able to contribute to the reduction of informal financial practices, wealth-building, and job

i i Af i M i l b f h Af i creation in Africa. More importantly, members of the African diaspora will build on the social capital of their countries of origin in their local communities as well as their host societiessocieties.

Social CapitalSocial CapitalThe fund aims to encourage and facilitate diaspora engagement in their home countries Migrant ties engagement in their home countries. Migrant ties between their origin and destination societies constitute transnational exchange that plays a fundamental role in the social and economic aspects of each country, and of the social and economic aspects of each country, and of globalization. This exchange can take the form of knowledge-sharing or investment, for example.

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Reduction Reduction of Informalityof InformalityFinancial institutions, particularly microfinance institutions (MFIs), play a critical role in reducing informal financial practices. Such practices are seen in the use of unlicensed or unauthorized foreign p gcurrency transfer mechanisms for remittances, or in saving money at home rather than in a financial institution, both prevalent in many African countries, particularly in rural areas. Some research suggests that an average of 27% of remittances received in rural suggests that an average of 27% of remittances received in rural areas is channeled through the use of informal mechanisms. Further, while an estimated 50% of Africans save money, only 12% use formal savings accounts to do so. These practices are tied to a low presence of institutions that handle money transfers in rural low presence of institutions that handle money transfers in rural areas, pointing to the potential of microfinance institutions in taking part of the payout network and offering financial services to remittance recipients and other members of their communities.

WealthWealth--building and Job Creationbuilding and Job CreationGrantees will be able to implement projects that create wealth and jobs for Africans in local communities and the diaspora, thus alleviating poverty.alleviating poverty.

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•• Financing ActivitiesFinancing Activities

• The MDF is financing activities in the first phase in North Africa, West Africa, and Central Africa. In a second phase, it will expand financing to the entire African continent. Activities in the following areas are funded:

Development of new financial products

Support to productive investment in migrants’ countries of origin

Support to local development in migrants’ countries of pp p gorigin

Improvement of knowledge about migrant remittances in Africa

Support to reforms of the regulatory framework that governs money transfer conditions.

• http://www.fundsforafrica.org/mdf/http://www.fundsforafrica.org/mdf/

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