Trade Facilitation Agenda & State of Implementation African Development Bank Group AfDB AU/EC Forum...

Trade Facilitation Agenda & State of Implementation

African Development Bank Group

AfDBAU/EC Forum on Trade Facilitation

Brussels, BELGIUMDecember 11-13, 2012

December 11, 2012 1

What’s the AfDB Group? Selected Fast Facts

Monday, April 10, 2023 ONRI- NEPAD Regional Integration & Trade 2

African Development Bank (“ADB”)

African Development Fund (“ADF”)

Nigeria Trust Fund (“NTF”)

Est, 1964 79 member

countries Authorized capital:

US$ 101 billion Triple A rated by all

major ratings agencies

0% risk weighting under Basel

AfDB Sovereign Operations: 15 middle-income countries eligible for AfDB funding

Concessional financing

Est, 1972 Financed by 24

donors Subscription: US$

34 billion 38 low income

countries Replenished every

3 years (ADF12 has US$9.5 billion)

Financially and legally independent from AfDB

Blend Countries

Established in 1976 Targeted at low-

income countries Maturing in 2018 US$ 242 million

Quick Facts Cont’d…

• 31 field offices; 2 regional centres• Increased operations, lead continental initiatives

for increased regional integration e.g. PIDA• Triple A rating enables Bank to leverage scarce

resources• Our work on Customs and Trade Facilitation is

guided by the RIS, RISPs and TF Framework• The Bank pursues strategic partnerships with

key stakeholders


Pillar 1: Regional Infrastructure

Formulation and review of strategic

frameworks & Project Prioritisation

Support to Development

Corridors

NEPAD-IPPF: Bring projects to “bankable stage”

Investment

Pillar 2: Institutional Capacity Building

Rationalization of Regional Economic

Communities (RECs)

Strengthening of Regional and

National Institutions

Trade Facilitation and Capacity

Building

Areas of Strategic Partnerships and Cross-cutting Issues

Aid for Trade Programme for Africa

Regional Financial Infrastructure

4

How the Bank Supports Trade Facilitation:

RIS Pillars and Cross Cutting Issues

How the Bank Supports TF….Cont’d

• Enhance Trade & Transport Facilitation (TTF): Pursue interventions that enhance the cross border free flow of trade along the transport corridors right from the ports of entry through regional infrastructure roads, railways etc.,

• Guided by the principles of OWNERSHIP by Regional Member Countries, SELECTIVITY and DEVELOPMENT EFFECTIVENESS to only focus on TF projects and programmes with measurable and higher impact.


TTF Takes the Lion’s Share of the Bank’s Financing Approvals


What Areas do we Focus On?


Selected Initiatives on TTF• Programme for Infrastructure Development in Africa(PIDA): A

blueprint of Africa’s infrastructure needs until the year 2040 (est. at US$360 Bn.)

• 51 projects have been identified as priorities under the PIDA Priority Action Plan (PAP) to be implemented between 2012-2020. (24 PAP projects are transport related projects).

• PIDA also emphasizes that for these projects to be effective, regulations, processes and bottlenecks must be addressed

• This is where TRADE FACILITATION initiatives to tackle the “Soft” issues become imperative

• NEPAD-IPPF: Assist RMCs, RECs & related institutions• A comprehensive portfolio of trade & transport facilitation projects is

annexed in the 4 RISPSMonday, April 10, 2023 ONRI- NEPAD Regional Integration & Trade 8

Selected TTF Projects (2011-2015 RISP Period)

SOUTHERN AFRICA•Kazungula Bridge Project (Zambia-Botswana, focus OSBP construction & operationalisation) •Nacala Road Corridor: Feasibility studies on possible construction of OSBP at Malawi/Zambia & Mwi/Moz borders

EASTERN AFRICA•Arusha-Namanga-Athi River Corridor – OSBP operationalisation•Enhancing knowledge in modern customs practices and revision of the Customs Management Act etc.


Selected Initiatives on TTF….Cont’d WEST AFRICA•Lomé-Ouagadougou corridor road rehabilitation and transport project•Trans-Gambia Road Bridge and Cross-Border Improvement Project– Study on OSBP design

CENTRAL AFRICA•Doussala (Gabon)- Doumblise Road project•Kribi-Campo Road Project •Congo-Cameroon Road ProjectNORTH AFRICA•RISP currently being developed


Outcomes


Partnerships/Collaboration


Partnerships…Cont’d


Addressing the Challenge of Resources

• There’s a recognized need to scale up investments to implement TF measures in order to reap the benefits (Matching commitment with recourses)

• CREATION OF AFRICA TRADE FUND (AFTRA): – Strengthening capacity of national and regional African

institutions to effectively support trade facilitation and market access; and

– Supporting increased trade competitiveness and performance among RMCs.

• CAD 15 million provided by Canada, in seed funding for 3-years• AfDB intends to expand AfTra to $50Million by 2014, and ultimately

make it the largest Fund for TF in Africa

Monday, April 10, 2023 ONRI- NEPAD Regional “Integration & Trade 14

AfTra Cont’d…

• Already generating enthusiasm among development partners that are ready to channel their resources through the Fund for utilisation in addressing Africa’s trade needs

• Significant optimism from African countries on potential impact of AfTra:


“African countries welcomed creation of the Africa Trade Fund which will focus on trade-related capacity-building,…and

urge donors to provide generous new funding for this important facility dedicated to meeting Africa’s needs”

Summary of Outcome by the Host Country, Kenya: Symposium For TF for Africa, Nairobi, 13-15 Nov 2012

What Addition Funds Could Do for TF

• Supporting Customs Reforms and Modernization

• Supporting more projects on OSBP development (Africa has the greatest number of landlocked countries: 16)

• Capacity building for trade facilitation agencies

• Development of ICT infrastructure in TF

• Development of legal and regulatory tools to eliminate non-tariff barriers etc.


Key Messages/Lessons Learnt

• TF involves reforms: Therefore, requires political will to undertake reforms & implement protocols

• Partnerships are vital: TF requires cooperation and collaboration at various levels

• Knowledge products – ex ante and post construction evaluation essential (e.g. Trans-Gambia OSBP study)

• Need to matching ambition with resources: to improve both physical & soft infrastructure

Monday, April 10, 2023 ONRI- NEPAD Regional Integration & Trade Division 17

THANK YOUPatrick Kanyimbo Principal Regional Integration Officer Regional Integration and Trade Division(ONRI.2) African Development Bank B.P. 323-1002 Tunis Belvedere, TUNISIA (Tel) +216 71 10 1683 (Fax ) +216 71 25 4295


Trade Facilitation Agenda & State of Implementation African Development Bank Group AfDB AU/EC Forum...

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