·         Addressing fragility 

·         Delivering Impact  

·         Funding Innovation

IN THIS
  ISSUE

·         ADF Project of the Week: Focus on Somalia

·         ADF Donor of the Week: France

·         ADF Know It All: Transition Support Facility

·         Save the Date: March 19-21, 2019

FRAGILITY -  ADF’S RAISON D’ETRE

Did you know that for every three years a country is affected by major violence, poverty reduction lags by 2.7 percentage points? Did you know that based on current global trends, 80% of people living in extrem640e poverty will be in countries affected by fragility by 2030?

The above quote by President Adesina speaks to the heart of the African Development Fund’s mission – addressing fragility. The Fund believes a prosperous Africa is the antidote to poverty, terrorism, rising youth malaise and mass migration. The reality is that fragility negatively affects over 250 million Africans today and the number is growing. This is why, for example, we think it important to host the Africa Resilience Forum every year. There is good news. Partly because of the African Development Fund’s highly concessional and flexible resources, there have been successful transitions to peace and prosperity on the continent. The Fund was able to return to its headquarters in Cote d’Ivoire in 2014 after 10 years in Tunisia, just at the time when the latter was also beginning its own transition out of a fragile situation. Countries like Rwanda where we held our ADF Mid-Term Review meeting from October 24-26, 2018 is another incredible turnaround story. ADF believes this continent can move away from fragility when driven by committed governments working together with development partners to build resilience. The pillars of the Fund’s push towards resilience include:

Transition Support Facility
The African Development Fund is a tree with many branches but one of its chief success stories has been the mainstreaming of the concept of fragility into the corporate institutional structure through the funding and launch of the Transition Support Facility (TSF). The TSF is assisting countries to address drivers of fragility and strengthen sources of resilience, to prevent relapses into conflict and to lay the foundation for a return to sustainable and inclusive growth. The TSF’s main source of funding is the ADF.

Transition States Coordination Office (RDTS)
Following the initial success of the TSF, a dedicated office focused on fragility was born. The Transition States Coordination Office (RDTS) – opened in October 2016 – provides intellectual leadership, expertise, operational support and quality assurance for the implementation of the Bank’s High 5 agenda in countries facing situations of fragility. The office is leading the mainstreaming of the fragility lens across the institution.  

Fragility Lens
The Fund has launched innovative new tools like the new Country Resilience and Fragility Assessment (CRFA) that will help to identify, measure and monitor fragility, risks and sources of resilience, as well as provide evidence-based entry points for timely and effective action to address fragility and build resilience. The tool will highlight the best entry points for the Fund and partners’ interventions to maximize impact for sustainable and inclusive economic transformation. It is not intended to come up with a country list of ‘transition countries’, but rather to enable the Fund and the wider development community to track trends over time, and identify potential hotspots, opportunities for engagement, and a standardized framework to benchmarking results.

Partnerships for Resilience
To maximize its impact, the Fund has partnered with other key actors on the issue of fragility. These include the High Level Panel on International Migration in Africa (HLPM) and the MDB Platform on Economic Migration and Forced Displacement. Another example is the Sahel Alliance, a platform to deliver rapid development and stability to the most vulnerable communities in the Sahel region. By pooling resources and coordinating actions between key partners, the AfDB alone has committed USD 858 million for operations in the agriculture, infrastructure, water and energy sectors.

Between ADF-11 and ADF-14, resources allocated to transition countries for national, regional and private sector operations to support countries in their state-building efforts from the Transition Support Facility (TSF) increased by almost 250% . We look forward to scaling up this important work under the 15th replenishment of the African Development Fund.

ADF PROJECT OF THE WEEK: FOCUS ON SOMALIA

The STRERP project – financed with USD 34 million from the TSF and the ADF regional envelope – aims to provide emergency food assistance, fodder for pastoralists and medical supplies to about 800,000 Somalians, who are most vulnerable to the impact of the drought. It also puts in place the preliminary building blocks to strengthen links between the production, distribution and consumption hubs of the food systems in the affected regions, leading to increased system-wide efficiency and longer-term resilience.

Through the TSF, the Bank is reaching young people in conflict-affected bottom of the pyramid communities, and empowering them through education and increased economic opportunities. In 2016, the Bank approved TSF-funded Socio-Economic Reintegration of Youth at Risk project. This project is targeting 2,000 young Somalis who are either former combatants, or at risk of being recruited by extremist groups through vocational training, entrepreneurial training and rehabilitation, for example through centers such as the Baidoa Youth Student Center.

As part of the Somali New Deal Compact, the Bank has set up the Somalia Infrastructure Fund within the TSF framework, which supports the rehabilitation and development of infrastructure in the country. This financing is helping to tackle Somalia’s immense economic reconstruction and development challenges, which have resulted from devastating and prolonged armed conflict.

ADF DONOR OF THE WEEK: FRANCE

France became a member of the African Development Fund in 1977. The country is a long-standing partner and the fifth historical contributor to the Fund with total support exceeding EUR 3.6 billion. Africa is France’s number 1 recipient of overseas development assistance. Specifically, France provides significant support to the Sahel region where it aims to maintain stability and reduce fragility and poverty. As a show of their support to the Fund, in 2017, France was the first donor country to provide a concessional donor loan to the ADF. Overall, the French contribution to the ongoing 14th replenishment of the African Development Fund (ADF-14) is EUR 365 million in the form of grants and EUR 180 million in concessional loans

ADF KNOW IT ALL: GET TO KNOW THE FUND BETTER

 

 

SAVE THE DATE

March 19-21, 2019
First ADF-15 Replenishment Meeting, Abidjan


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