Latest news with #African Development Bank
Zawya
a day ago
- Business
- Zawya
2025 Country Report on Cameroon: the African Development Bank urges the country to strengthen capital mobilization for sustainable growth
The African Development Bank Group ( officially launched its 2025 Country Report on Cameroon in Yaoundé on 22 July 2025. The launch ceremony featured frank and wide-ranging discussions on the country's economic challenges. Country reports form part of the African Development Bank's African Economic Outlook 2025 which provides an annual assessment of the economic performance and outlook of the continent's 54 countries by examining growth trends, socio-economic challenges, and development progress. The 2025 AEO report was released last May during the Bank Group's Annual Meetings held in Abidjan, Côte d'Ivoire, under the theme 'Maximizing Africa's Capital for Sustainable Development. "Making Cameroon's Capital Work Better for its Development," highlights the levers that will enable the country to strengthen domestic resource mobilization and boost inclusive and resilient growth. It calls on the government, the private sector, civil society, and development and financial partners to collectively re the drivers of the country's structural transformation. The ceremony was attended by members of the Cameroonian government, notably representatives from the Ministry of the Economy, Planning and Regional Development, the Ministry of Finance, the Ministry of Trade as well as the business sector. The report paints a picture of an economy in recovery, with estimated growth of 3.6 percent in 2024, mainly by continued investment in infrastructure and strong momentum in manufacturing industries, which have benefited from efforts to transform local agricultural and textile products. The country paper relies on a detailed analysis to identify sectors where Cameroon can make progress, particularly in mobilizing domestic resources, strengthening governance, improving the business climate, digitalization and optimizing its natural capital potential. The report also identifies several priority reforms to enable Cameroon to transform its potential into concrete growth drivers, including reducing tax exemptions and accelerating digitalization, restructuring strategic public corporations, particularly in the energy and refining sectors. Report findings also stress the importance of strengthening governance, transparency and the rule of law through greater accountability and the publication of the financial statements of public corporations. This includes the need to adopt the National Integrated Financing Strategy (SNFI) to diversify funding sources and leverage carbon market opportunities. Consolidating the financial sector, processing commodities locally and developing regional infrastructure round out the list of priorities. Finally, the report calls for preserving macroeconomic balances by gradually reducing fuel price subsidies at the pump while supporting investment spending, prioritizing concessional financing, accelerating development in insecure areas and strengthening budgetary capacity to better absorb shocks. Ameth Saloum Ndiaye, African Development Bank Senior Country Economist for Cameroon and Godwill Kan Tange, Country Economist for Cameroon, presented the report's main findings. They emphasized the report's concrete proposals to optimize the use of budgetary resources, as well as the country's natural, human and financial capital, with a view to stimulating more inclusive and sustainable growth. The presentation also explored key issues such as public corporation reform, governance, debt management, industrial development, vocational training and the challenges of mobilizing innovative financing, as well as sovereign debt ratings for African economies. "The African Development Bank Group commends the Cameroonian authorities for their commitment to implementing a National Integrated Financing Strategy, which is currently being adopted and should enable the country to diversify financing sources for its development agenda. This means that the report is fully aligned with the government's priorities," said Mamadou Tangara, Head of Operations, speaking on behalf of the Bank's Director General for Central Africa. The Secretary General of Cameroon's Ministry of the Economy, Planning and Regional Development, Jean Tchoffo, representing the Bank's Governor for Cameroon, welcomed the Bank's recommendations, which are aligned with the National Development Strategy 2030 (SND30). "This report comes at a key moment, as we are conducting a mid-term review of the implementation of our National Development Strategy 2020-2030,' Tchoffo said. 'We are convinced that its recommendations will enrich our thinking and strengthen our efforts to return to solid, sustainable and inclusive growth and accelerate the structural transformation of our economy." Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Mail & Guardian
7 days ago
- Business
- Mail & Guardian
South Africa must unlock financial sector for growth, says African Development Bank
The African Development Bank (AfDB) says South Africa's well-developed financial sector has the potential to be the continent's powerhouse. The African Development Bank (AfDB) says South Africa's well-developed financial sector has the potential to be the continent's powerhouse if structural constraints are addressed. 'South Africa has a well-developed and large financial sector with an asset-to-GDP ratio of 88%, well above that of most emerging markets. The financial system consists of banking institutions, pension funds and a dynamic stock exchange,' the bank said Accounting for 20% of GDP, the country's financial sector provides broad access to financial services. More than 90% of the adult population uses formal financial services, with 81% holding bank accounts and 78% using non-bank financial institutions. 'The country needs a concerted focus on enhancing domestic capital mobilisation, more efficient public expenditure, and a stronger overall business environment to unlock greater investment and foster sustainable growth,' the AfDB said. It urged the government to follow through with plans to enhance business growth by reducing red tape, fostering a supportive environment for small and medium enterprises, improving infrastructure, strengthening multilateral cooperation, clamping down on crime and promoting skills development. 'While the financial system is stable, non-performing loans rose from 4.7% of total loans in 2023 to 5.7% in 2024 due to weak business growth. Household financial distress from rising interest rates since late 2021 has led to mortgage defaults, but easing borrowing costs are expected to support the sector,' it said. The development bank forecasts that South Africa's real GDP growth will remain subdued at 0.8% in 2025, with a likely uptick to 1.2% in 2026, depending on 'improved energy supply, freight rail and port management'. It identifies some of the continued domestic risks as 'ongoing infrastructure deficits, unresolved problems in electricity provision, 'South Africa is one of Africa's most dynamic economies, underpinned by a diversified economic base, strategic geographic location and ongoing commitment to structural transformation,' the report said, noting however that economic growth has underperformed in the past three years to 2024, averaging 1.1%. Factors such as China's economic slowdown, geopolitical tensions, climate vulnerabilities and trade disruptions are projected to further add uncertainty to the country's growth outlook. The AfDB highlights strengthening institutions as essential to improving tax administration, corporate governance and capacity-building to make full use of natural, human, financial and private sector capital. Although the country has many advantages because of its location, targeted training, regional staff exchanges and international collaboration are vital to improving performance and resilience. 'GDP growth The bank said South Africa's income inequality remains among the highest globally, with a Gini coefficient of 0.67 recorded in 2018. 'Government spending remains highly redistributive, with up to 61% of the budget allocated to the social wage — spending on health, education, social protection, community development and employment programmes,' the report said. South Africa funds about 'To meet its Vision 2030 targets and the sustainable development goals, South Africa requires about $254 billion to $329 billion in financing for transport, water and sanitation and education between 2022 and 2030,' the report said. Inefficiencies in public spending and underuse of business and natural resources limit the country's financial capacity. 'Unlocking South Africa's natural capital requires good governance, stronger institutional coordination, adherence to the rule of law, infrastructure development, and capacity development,' the AfDB said.
Zawya
21-07-2025
- Business
- Zawya
AfDB offers Morocco $116mln loan to support sustainable agriculture
The African Development Bank said on Monday it approved a loan worth 100 million euros ($116.4 mln) to support sustainable farming led by women and young people in Morocco. The financing is intended to boost food security, and strengthen the resilience of small-scale farming against climate change, the AFDB said in a statement. "Women who have the ambition to undertake and succeed in agriculture are our priority," said Achraf Tarsim, the head of the AfDB office in Morocco. Over five decades, the AfDB has invested 15 billion euros ($17.46 billion) in projects, including transport, water, energy, farming, social protection, governance and finance. ($1 = 0.8590 euros) (Reporting by Ahmed Eljechtimi, Editing by Louise Heavens)
Zawya
18-07-2025
- Business
- Zawya
African Development Fund supports climate-resilient rice value chains across West Africa
The Board of Directors of the African Development Fund (ADF) ( the concessional funding window of the African Development Bank Group ( on 17 July 2025 approved a $9.44 million grant for the Africa Rice Center (AfricaRice) to strengthen the climate resilience of rice value chains across West Africa. Funded through ADF's Climate Action Window ( the project will support rice producers and processors in 13 countries: Benin, Burkina Faso, Côte d'Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Senegal, Sierra Leone, and Togo. The initiative, part of the Regional Resilient Rice Value Chains Development Project in West Africa (REWARD), and specifically its adaptation component (REWARD-Adaptation), aims to scale up the adoption of climate-smart agricultural practices and technologies throughout the rice production and processing sectors. "The strategy for this project is to reduce the vulnerability and strengthen the resilience of rice value chains, from production to processing and marketing, while lowering greenhouse gas emissions through the dissemination and adoption of climate-smart practices and technologies," said Marwan Ladki, Senior Irrigation Engineer at the African Development Bank, who is responsible for the project. Key project interventions include the distribution of climate-resilient rice seeds to 11,000 farmers, including 4,950 women and 6,600 young farmers. It will train 12,600 farmers and processors, support 65 small and medium-sized enterprises with equipment and improved access to business networks, and facilitate the provision of climate services and early warning systems through digital platforms and radio broadcasts, reaching up to 2 million beneficiaries. The project will also deploy four automatic weather stations per country to improve spatial coverage and climate monitoring. It is projected to create 47,000 employment opportunities, including 8,000 permanent and 39,000 seasonal jobs. Distributed by APO Group on behalf of African Development Bank Group (AfDB). Media contact: Alexis Adélé Department of Communication and External Relations media@ About AfricaRice: The Africa Rice Center (AfricaRice), based in Côte d'Ivoire, is a pan-African centre of excellence for rice research, development and capacity building. It contributes to reducing poverty, ensuring food and nutrition security, and improving the livelihoods of farmers and other actors in the rice value chain in Africa by increasing the productivity and profitability of rice-based agri-food systems, while ensuring the sustainability of natural resources. About the African Development Bank Group: The African Development Bank Group is Africa's leading development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Represented in 41 African countries, with an external office in Japan, the Bank contributes to the economic development and social progress of its 54 regional member countries. For more information:
Zawya
17-07-2025
- Business
- Zawya
African Development Bank Approves $17 Million to Rebuild Conflict-Affected Northern Mozambique
The Board of Directors of the African Development Bank ( has approved a $17 million grant to support recovery and resilient-building efforts in conflict-affected northern Mozambique's Cabo Delgado province. The funding will support the Resilient Investment for Socio-Economic Empowerment, Peace, and Security (RISE-PS) Project, a bold new initiative to tackle the root causes of fragility through targeted economic empowerment. It will directly create 24,000 jobs, with 60% of opportunities earmarked for young people aged 18 to 35, and 50% reserved for women. Cumulatively, over 100,000 people are expected to benefit from the initiative. Since 2017, violent extremist attacks in Cabo Delgado have killed at least 4,500 people and displaced more than one million. Approximately 4,965 small businesses have been destroyed, leaving communities without livelihoods. Youth unemployment currently stands at 25% in the province, with 35% of young women neither employed nor enrolled in education or training. "This is about more than economic recovery – it's about giving young people a reason to believe in their future,' said Babatunde Omilola, Manager for Human Capital, Youth and Skill Development at the African Development Bank's Regional Office for Southern Africa. 'The project emphasizes youth as peacebuilding agents, unlocking their potential through skills development, entrepreneurship, and decent work opportunities to drive economic stabilization efforts.' A cornerstone of the RISE-PS project is the creation of a Peace and Security Investment Hub, coordinated by Mozambique's Northern Integrated Development Agency (ADIN). "This hub will coordinate development work across the region and create investment opportunities for both public and private partners," said Macmillan Anyanwu, the Bank's Acting Country Manager for Mozambique. "By including local communities in planning and implementing projects — such as letting them choose which infrastructure gets rebuilt — we ensure development truly serves those who need it most." Comprehensive Support for Vulnerable Populations Rehabilitation of 150 community facilities, including 30 schools, 45 youth centers, 14 health posts, 10 rural markets, and 33 water systems -- providing immediate employment for 4,500 vulnerable youth and women Training for over 9,200 individuals in market-oriented vocational skills, with 2,000 women and youth-led enterprises receiving grants to restart destroyed businesses, and 5,400 local micro-enterprises equipped to expand or consolidate operations. Construction of a climate-smart SME village in the Afungi Industrial Hub, designed to accommodate 100 small and medium enterprises with modern facilities, including warehouses, workshops, and business incubation centers Private sector partnerships, including TotalEnergies and ExxonMobil, to provide 1,055 youth with 6-month internships, targeting 70% permanent job placement The total value of the project stands at $28 million, including the African Development Bank's $17 million grant through its Transition Support Facility, $4.2 million from the United Nations Development Programme (UNDP), $2.4 million from Germany, $3.1 million in parallel financing from private sector partners, and $1.3 million counterpart contribution from the Government of Mozambique. MozParks, the national developer of sustainable economic zones, will lead the SME village construction, drawing on 23 years of experience that has attracted $4 billion in investments and created over 12,000 jobs nationwide. The project's conflict-sensitive design specifically targets the drivers of violent extremism. Research shows that 40% of young men join rebel movements due to a lack of economic opportunities. At the same time, women face additional vulnerabilities, including limited education and high rates of gender-based violence. Implementation begins on 1 September 2025, under the leadership of the Government, with UNDP as the implementing partner. The project will run until August 2029. ADIN will serve as the executing agency, with enhanced institutional support to strengthen its coordination role across northern Mozambique, which is home to 11.6 million people. Recent security improvements, and a reduction in the number of internally displaced persons from over one million to 635,000 present an opportunity for sustained development investments and renewed investor confidence. The RISE-PS project aligns with Mozambique's National Development Strategy (2025-2044) and the African Union's Agenda 2063, contributing to Sustainable Development Goals (SDG 1 - No Poverty; SDG 4 - Quality Education; SDG 5 - Gender Equality; SDG 8 - Decent Work and Economic Growth). It also aligns with the African Development Bank's Strategy for Addressing Fragility and Building Resilience (2022-2026), the Bank's Country Strategy Paper 2023-2028 for Mozambique, its Ten-Year Strategy 2024-2033, and many other strategies or action plans on jobs, gender, skills, private sector development and nutrition. In particular, the Bank's Jobs for Youth in Africa strategy 2016-2025 aims to create 25 million jobs and positively impact 50 million African youth by 2025. Distributed by APO Group on behalf of African Development Bank Group (AfDB). About the African Development Bank Group: The African Development Bank Group is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information:
