INDUSTRIALIZE AFRICA Highlights of AfDB’s Strategy

Industrial and Trade Development Department (PITD)

Thursday May 3rd, 2018

Africa Business Day at JSE

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AfDB is accelerating delivery of its industrialization strategy

Strategic Vision Operationalization Delivery

Definition of strategy rationale and

vision

• AfDB "High 5" and "industrialize

Africa"

Description of AfDB industrialization

flagship programs

Definition of strategy objectives and

principles

Identification of industrialization

priorities

Definition of main AfDB intervention

modes

Elaboration of industrialization

business / investment plan & KPIs

Definition of internal roles and design

of business development missions

Mobilization of key resources

Business development

Acceleration of initiatives and

actions

Regular monitoring of realizations

and KPIs

2016 2017 2018

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Foster successful

industrial policies Policy Advise and Technical Assistance to governments (regulatory and institutional framework,

implementation and monitoring) and funding of key PPP projects

Supportive policy,

legislature and

institutions

Catalyse funding into

infrastructure and

industry projects

Increase and channel funding into GDP catalytic programmes (infrastructure and industrialisation

projects, by public and private operators)

• Raise own investment

• Foster investment by others (domestic and foreign) as strategic investor or MLA1

Conducive eco.

environment and

infrastructure

Develop efficient

industry clusters across

the continent

Support governments in developing efficient industry clusters across Africa, through Technical

Assistance and funding in implementation and monitoring Access to markets

Promote and drive

enterprise development

Drive enterprise development (large, small and medium businesses)

Scale-up investment and financing to lend to SMEs

• Technical Assistance support to strengthen SME-focused entities

• Establish linkages of SMEs to domestic projects/companies and provide training of a strong

talent pool

Promote strategic

partnerships in Africa

Link up African enterprises and major projects with potential partners and investors, through

promotional activities, notably African Investment Forum (AIF)

Facilitation and management of investor relations (e.g. contract negotiations)

Competitive

talents, capabilities

and entrepreneurship

Grow liquid and effective

capital markets

Improve access to market finance for African enterprises

• Advise governments, stock exchanges and regulators on development of liquid capital markets

• Invest directly in capital markets to increase liquidity Access to capital

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6 flagship programs within Industrialization High 5

1. Mandated Lead Arranger

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Date Project Country Sector AfDB Tranch ($m)

2017 Boke Mine Rail & Port Guinea Mining 100

2017 Tekcim Morocco Building materials 50

2017 SNIM Mauritania Mining 50

2014 Moma Mineral Mozambique Mining 30

2014 Kalagadi South Africa Mining 150

2014 Dangote Industries Limited Nigeria Fertilizers 300

2012 Derba Cement Ethiopia Building materials 55

2012 Indorama Nigeria Fertilizers 100

2011 Nyumba Cement Plant DRC Building materials 60

2011 OCP Morocco Fertilizers 250

2011 Kempinski Hotel Ghana Hospitality 16

2009 SNIM Mauritania Mining 175

2008 Ambatovy Madagascar Mining 150

Total 1486

Industrial Portfolio (2008-2017) excluding trade finance and LoC > USD 2bi..

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AfDB industrialization

objectives

Key principles of AfDB

industrialization strategy

Strategic objectives

Foster the emergence of

regional champions

Create sustainable jobs and

increase productivity

Play a leading and pivotal

development role in Africa

AfDB "High 5" goals to 2025

Light up & power Africa

Feed Africa

Industrialize Africa

Integrate Africa

Improve quality of life

Support global trade integration

and regional value chains

Grow co-financing and mobilize

private sector investment

• Be a renown leader in Africa &

a pulling force for additional

investments and partners Catalytic

• Adopt a differentiated sector

and country approach with a

variety of intervention tools Differentiated

• Focus on areas where AfDB can

deliver highest economic, social

and environmental impacts Impactful

• Push pragmatism in project

identification, pursue concrete

opportunities & clear roadmap Actionable

• Analyze value chains to

identify opportunities and

bottlenecks Fact-based

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• Large connectivity infra

projects (telco, towers,

datacenters, etc.)

• Large ICT players

(telco, e-commerce,

apps and services, etc.)

• Integrated plants in

countries with strong

demand and reserves

• Grinding stations in

countries with strong

demand and low

reserves

• Large hotel projects in

fast growing markets

• Business hotels in

African economic

centers

• Fertilizer production

units in countries with

existing reserves

• Blender networks in

consumption countries

• Transport & logistics

companies' growth and

expansion (ports

concessions, truck

fleets, warehouses, etc.)

ICT Building materials

Transport & logistics

Hospitality Fertilizers

• MNC & African

champions

manufacturing capacity

regional expansion

• Exploration and

exploitation in countries

with complex set-ups

• Beneficiation projects

for existing mining

facilities

• Global players

investments in Africa

• Modernization of

regional champions'

machinery and

equipment

• Retail space capacity

development (shopping

malls, outlets, etc.)

• Retail chains expansion

in Africa, especially

regional champions

• MNC & African

champions generics

manufacturing capacity

increase, upgrade to

GMP and regional

expansion

Consumer Goods

Mining Pharmaceuticals Textile Retail

Strategic objectives by sector

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Examples of industrial projects from 2018 pipeline

Fertilizer Long term relationship with an African

champion

Total project cost: USD 1.1bi

AfDB role: - USD 100mi debt

Project description

- New production line

- Increase fertilizer production

capacity

Telecommunication

satellite Support connectivity infrastructure

development and transformative project

Total project cost : USD 1.1bi

AfDB role: - USD 150-200mi debt

Project description

First low orbit network of connectivity

satellites covering Africa

Potash mine Transformative mining project in fragile

country

Total project cost : USD 350mi

AfDB role : under discussion

Project description

- Development of mine and export

infrastructure

Support industrial

policies Technical assistance to African countries to

develop and implement sound industrial

policies

Partnership with UNIDO

Pilot countries

- Ethiopia

- Senegal

- Morocco

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Examples of industrial projects from 2018 pipeline

Steel Plant Support an expanding African industrial

champion and availability of

construction/ manufacturing material

Total project cost: USD 125mi

AfDB role: - USD 65mi debt

Project description

- Construction and operation of steel

plant

- Use of new technology to directly

process iron ore

Industrial Park Industrial park developed by leading

African mining company to develop local

content in the mining sector

Total project cost : USD 45mi

AfDB role: - USD 13mi

Project description

Support a leading African mining company

to develop a local ecosystem to service

the mining sector and increase local

content

Fertilizer production Partner with African champion to develop

market on the continent

Total project cost : > USD 1bi

AfDB role : corporate loan TBC

Project description

- Increase production capacity to

develop regional market

Invest in Private Equity

funds

Provide seed funding to PE funds in the

industrial sector

Support African SMEs with high growth

potential in the industrial sector

THANK YOU

Contact :

a.mukhtar@afdb.org

www.afdb.org