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

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1 African Development Bank Group AFRICA DIASPORA LINKAGE WITH THE MOTHERLAND FOCUS ON AFEA AND AfDB JOHN C. ANYANWU* LEAD RESEARCH ECONOMIST DEVELOPMENT RESEARCH DEPARTMENT AFRICAN DEVELOPMENT BANK TEMPORARY RELOCATION AGENCY BP 323, 1002 TUNIS TUNISIA KEYNOTE SPEECH AT THE AFEA PRESIDENTIAL ADDRESS AND DINNER DURING ASSA MEETINGS IN SAN DIEGO, CALIFORNIA 5 JANUARY, 2013 * The views expressed here are those of the author and in no way reflect those of the Bank and its Executive Directors.

2 Outline of Presentation I. AN INTRODUCTION TO THE AfDB II. POTENTIAL AREAS OF LINKAGE BETWEEN AfDB & AFEA 2

3 I. INTRODUCTION TO THE AfDB 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 officially began operations in The Bank s headquarters is in Abidjan, Côte d Ivoire. However, as a result of political instability in the country, the AfDB Board of Governors in February 2003 decided to move the Bank to the current Temporary Relocation Agency (TRA) in Tunis, Tunisia. The overarching objective of the African Development Bank Group is to spur sustainable economic development and social progress in its regional member countries (RMCs), thus contributing to poverty reduction. The Bank Group achieves this objective by: (i) mobilizing and allocating resources for investment in RMCs; and (ii) providing policy advice and technical assistance to support development efforts. End-2011: Authorized Capital (UA billion); Subscribed Capital (UA billion); Shareholders: 54 African countries (regional member countries) & 25 non-african countries (non-regional member countries) 3

4 I. INTRODUCTION TO THE AfDB (contd.) The AfDB Group comprises of three windows: the African Development Bank (ADB), the African Development Fund (ADF), and the Nigerian Trust Fund (NTF). The ADB window provides loans to its clients on non-concessional terms while the ADF (established in 1972 and became operational in 1974) provides low-income RMCs with concessional loans and grants for projects and programs and support through technical assistance for studies and capacity-building activities. The NTF is a special AfDB fund created by agreement between the Bank Group and the Government of the Federal Republic of Nigeria on 26 February 1996 to assist the development efforts of low-income RMCs whose economic and social conditions necessitate concessional financing. The goal of AfDB Group s recently developed 10-year Long Term Strategy is to support Africa s ambitions to transform into a stable, integrated and prosperous continent based on the pillars of inclusive and green growth. 4

5 I. INTRODUCTION TO THE AfDB (contd.) The AfDB is African countries first choice for development financing and for leveraging external resources. Cumulative Bank Group Loans and Grants Approvals by Institution (%), Cumulative Operations of the Bank Group (UA million) 0.50% % 58.90% ADB ADF NTF Approvals Disbursements

6 I. INTRODUCTION TO THE AfDB (contd.) Cumulative Bank Group Loans and Grants Approvals by Sector (%), Transport Multi-sector Energy Finance Agriculture Social Water supply and sanitation Industry Communication Other sectors

7 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB & AFEA AFEA members can have careers at the AfDB The African Development Bank (AfDB) uses an online application process. The online application process will enable you to: Search current vacancies Create or update your candidate profile Apply for a vacancy 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 Submit application i for a vacancy as soon as the position ii is advertised, d but no later than pm (23.59 hrs) on the vacancy closing date. Vacancy closing dates are based on GMT. 7

8 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB & AFEA The Bank s Structure Comprising i Six Vice Presidential i Complexes: A Guide to Areas of Interest 8

9 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB & AFEA THE CHIEF ECONOMIST S COMPLEX: A DEEPER GUIDE TO CAREER IN THE AfDB Provide economic intelligence for Senior Management, Operations & RMCs CHIEF ECONOMIST (ECON) Depts. DEVELOPMENT RESEARCH (EDRE) -Knowledge generation -Knowledge dissemination - Knowledge support to country and sector operations departments AFRICAN DEVELOPMENT INSTITUTE (EADI) -Learning modules - Operations training -Knowledge and information services STATISTICS (ESTA) - Statistical database -Knowledge measuremen t - Statistical capacity building RESEARCH (EDRE.1) NETWORKING & RESEARCH PARTNERSHIPS (EDRE.2) PROGRAM DESIGN AND DEVELOPMENT (EADI.1) DEVELOPMENT MANAGEMENT AND POLICY (EADI.2) THE KNOWLEDGE AND INFORMATION SERVICES (EADI.3) ECONOMIC & SOCIAL STATITICS (ESTA.1) STATISTICAL CAPACITY BUILDING (ESTA.2) 9

10 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB & AFEA AFEA members can consult at the AfDB 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 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. 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. 10

11 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB & AFEA Younger AFEA members can also be engaged as Junior Consultants at the AfDB 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; 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 Bank will offer to selected individuals a contract that will not normally exceed six months duration. 11

12 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB & AFEA Student members of AFEA can do Internship at the AfDB 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 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 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). Applicants are required to apply through this link: Internships will initially be for a period of three months, renewable for up to six months (maximum). 12

13 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB & AFEA AFEA members can contribute generation, collaboration, and through the AfDB platforms to knowledge dissemination Conferences and Seminars 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) Eminent Speakers Series Collaborative Research on African Development & Policy Issues 13

14 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB & AFEA AFEA members can contribute to knowledge generation, collaboration, and dissemination through the AfDB platforms Publication Outlets African Development Review AfDB Working Papers Africa Economic Briefs Policy Briefs Africa Emerging Issues Inclusive Growth Series Studies/Books (for the Bank and collaborative), especially on emerging issues Contribution to the Bank s Flagship Publications African Development Report (ADR) African Economic Outlook (AEO) African Competitiveness Report (ACR) Annual Report 14

15 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB & AFEA African Development Review The African Development Review is a professional development economics Journal that provides a platform for expressing analytical and conceptual views, and encouraging debate among development specialists, policy makers, scholars and other professionals on African economic and developmental issues. The Journal publishes articles that reflect innovative thinking and analysis of key developmental challenges 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. We encourage submissions from AFEA members. Submit manuscripts through: p// p / 15

16 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB & AFEA 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 their papers to the standard of journal articles, which would be submitted to the African Development Review, or published elsewhere. Development 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 Africa. The target t audience of these Briefs includes policy makers, politicians and development practitioners who cannot be reached through journals articles and other Bank publications. To publish in Working Papers and AfDB Africa Economic Briefs, submit your papers to a.salami@afdb.org 16

17 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB & AFEA AFEA members can have access to data/statistics, which 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 African Statistical Yearbook Selected Statistics on African Economies Millennium i 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 17

18 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB &AFEA AFEA members can contribute to capacity development in Africa through the AfDB 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 research dissemination in Africa. This is enhanced through collaboration within and outside the Bank. AFEA members can play an important role here, thus enhancing the development effectiveness of the AfDB-funded operations and fostering policy dialogue and development management. development institute/ 18

19 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB &AFEA AFEA members can contribute to the enhancement of projects and operations in regional member countries (RMCs): Participation in missions and preparation of Country Strategy Papers (CSPs) and Regional Integration Strategy Papers (RISPs), etc Participation in missions and preparation of project and program financing for inclusive and green growth, especially in infrastructure, t private sector, agriculture, human capital development as well as good governance, gender equity and regional integration. Participation i i in country and regional policy dialogues and operations/ 19

20 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB &AFEA AFEA members can participate in and support the African Diaspora Development Fund, the Migration and Development Fund (MDF) created by the AfDB. 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 after foreign direct investment. Remittance flows to Africa quadrupled d 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 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 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. 20

21 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB &AFEA Remittances inflows have steadily increased and are the most stable foreign inflows Inflow of External Finances to Africa (US$m), Inflow of External Finances to Africa (% of GDP), Net ODA (US$m) FDI Inflows (US$m) 4 3 Remittances (US$m) 2 Net ODA (% of GDP) FDI Inflows (% of GDP) Remittances (% of GDP)

22 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB &AFEA The MDF works to support community development in Africa. Specifically, the fund 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 Support productive investment in migrants countries of origin Support local development in migrants countries of origin 22

23 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB &AFEA 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 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 societies. Social Capital The fund aims to encourage and facilitate diaspora 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 globalization. This exchange can take the form of knowledge-sharing or investment, for example. 23

24 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB &AFEA Reduction of Informality Financial 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 currency 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 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 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. Wealth-building and Job Creation Grantees will be able to implement projects that create wealth and jobs for Africans in local communities and the diaspora, thus alleviating poverty. 24

25 POTENTIAL AREAS OF LINKAGE BETWEEN AfDB &AFEA Financing 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 origin Improvement of knowledge about migrant remittances in Africa Support to reforms of the regulatory framework that governs money transfer conditions. 25

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