The Forum in AfricaLeveraging Public-Private Cooperation to improve the State of Africa – Presentation by Elsie S. Kanza, Head of Africa at the European Parliament Public Hearing on Africa Rising?

13 July 2016

African states aspire to raise average GDP growth from about 5% to 10%

by 2030-2050; it is estimated that this high economic growth needs

investment rates of approximately 25% of GDP consistently for 40 years

Major goals:

Boost regionalization and global brand

Objective: To increase growth and development

Strengthen public-private cooperation

Objective: To enhance regional integration

Objective: To improve food security

Improve governance and resilience systems

Objective: To strengthen institutions

Objective: To foster peace and stability

2

Forum Focus - Regional Engagement Strategy

2014-2016

Mission: Improve the

State of Africa – by

accelerating Africa’s

growth & transformation

agenda

3

The Forum in Africa

- Theory of change for Public-Private Cooperation in Africa

Identify Regional Challenges that the Forum can add value to

Build Community of Stakeholders

Demonstrate Thought Leadership

Mobilise community to demonstrate new model

“Proof of Concept”: scale and replicate

Embed into regional and international cooperative architecture or

institutions

Sustainability of systems change: policy and programmatic frameworks

(regional/national)

4

Case Study: Global Agenda Council on Africa, 2014-2016

- Visa Free Africa for Africans

To tackle the challenge of regional integration and free

movement of people, the Council implemented the Visa

Openness project, resulting in the following:

Launch of the Visa Openness Index by the African

Development Bank in February 2016

Series of blogs, including Why is traveling in Africa so

difficult for Africans?

Social media buzz: Infographic on Visa Openness (left) was

retweeted over 1,200 times

Case Study: Africa Strategic Infrastructure Initiative, 2012-2015

- Accelerating infrastructure development

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Severe infrastructure gap in Africa

• Infra gap costing the continent ~ 2% GDP growth p.a.

• Significant economic and population growth by 2040

• Low Inter regional trade; only about 10 to 12 per cent

of African trade takes place among African countries

PIDA created as a mega plan to address issue

• Continent-wide, aligned platform for priority regional

infrastructure

programs to be realized by 2040

• Four key sectors: Energy,

Transportation, Water, ICT

• Priority Action Plan (PAP): Subset of 51 transnational

infrastructure programs to be implemented by 2020,

with > $US 67B of capex

African Strategic Infrastructure Initiative:

Accelerate PIDA with Private PartnershipsProblem: Infrastructure deficit in Africa limiting

economic growth and prosperity

Core Public Partners

• African Union Commission

(AUC)

• NEPAD Agency

• African Development Bank

(AfDB) as core partners for ASII

of the World Economic Forum

• Development Bank of Southern

Africa and General Electric Africa

act as Co-Chairs to the initiative

Business Working Group for private sector input

(40+ regional and global companies); Project management

support by BCG

6

Case Study: Africa Strategic Infrastructure Initiative, 2012-2015 - Strong impact delivered across all relevant dimensions of the Central Corridor pilot

Political Support and

Pressure Secured

• Interest from highest levels of government and private leaders assured ownership and delivery to tight timeline

• Davos 2015 and Presidential Round Table in Dar es Salaam-4 presidents attended and 10+ ministers

• Quarterly presidential roundtable institutionalised focusing on corridor development

Public Agencies Enabled

and Trained

• CCTTFA enabled to understand what is required for projects to be 'bankable'

• Trainings on financial modelling & project development to be offered to CCTTFA

• Methodologies and enabling processes developed

• Repository of tools created for replication

Technical Support &

Funding Mobilized

• Mobilised and managed independent technical experts to package 23 projects for market sounding

• Through the BWG, DBSA sponsored ~$400K

• 23 projects grouped into 4 groups —depending on type of finance

• World Bank indicated $450M in support to lakes and inland waterways

Stakeholders Aligned

and Engaged

• 10+ workshops in 8 months• 4 private sector roundtables

hosted to elicit private sector suggestions for project packaging

• Visibility and interest from industry created - Industry and Investors Forum held on 26 March in Dar(200+ participants, all countries represented)

• Extensive press coverage

Acceleration Strategy and

Roadmap Defined

• Developed implementation strategy

• Created phased approach Phase 1 for marketing of

corridor, industrial development plan and showcasing of key cornerstone projects

Phase 2 focusing on detailed project preparation and securing finance for implementing

Projects Decomposed,

Understood and Prioritized

• Clarifying the scope of the corridor ($18bn)

• Decomposed Programme into 121 sub projects

• Consolidated and standardised data into xls-based, automated project fiche tool and template

• Prioritised cornerstone projects for phase 1 (23 selected from 121 -$9.7bn) rep. 5 countries, 3 sectors

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Case Study: Africa Strategic Infrastructure Initiative, 2012-2015

- Next Steps

— The initiative has been handed over to NEPAD Agency for replication on 3 June 2015

— Handover includes all relevant reports, frameworks and tools developed over the 3 years

Project

Prioritisation

Project

Management

Project

Preparation

Project

Acceleration

Managing

Transnational

Infrastructure

Programmes in

Africa –

Challenges and

Best Practices

A business

approach to

project

acceleration:

PIDA

prioritisation

A Principled

Approach to

Infrastructure

Project

Preparation

Facilities

Accelerating

Africa

Infrastructure

Development:

Process,

impact and

lessons

The World Economic Forum will continue its contribution by facilitating public-private collaboration for infrastructure through the

Sustainable Development Investment Partnership: an initiative managed by the Organization for Economic Cooperation and Development (OECD) and the World Economic Forum, was established in late 2015 to provide a platform for financial institutions,

governments, donors, DFIs and MDBs, to collaborate on unlocking financing for projects that can contribute to development

outcomes in emerging and frontier markets. Specifically, SDIP aims to mobilize USD100 billion in financing and investment through 2020 to help close the financing gap required to achieve the Sustainable Development Goals (SDGs).

The Forum in Africa – Driving Transformation

- Insights & Initiatives

Improve the State of Africa

Agriculture

Environment

Competitiveness

Skills and Jobs

Internet

Water

Circular Economy

Governance

Health

Trade

Infrastructure

Energy

The Africa Competitiveness Report seriesFocus on Africa since 1998

Provides a deep-dive analysis into the competitiveness strengths and

challenges in Africa based on findings from the Global Competitiveness

Report.

Since 2007, joint effort by the African Development Bank, the World Bank

and the World Economic Forum. Joined in 2015 by the OECD.

The latest African Competitiveness Report 2015 was released in June

2015 under the theme “Transforming Africa’s Economies”, highlighting the

bottlenecks to improving performance in the agriculture, manufacturing

(GVCs), and services sector.

An Action Agenda for Africa’s Competitiveness

Background

Why the initiative? What is the

context?

Partners

Who is involved?

Impact

What has changed? What is

expected to change?

Description

What is it? (Countries, activities,

commitments, timeline)

• Outreach activities across Africa’s regions

• A Series of Public-Private Sector Dialogues

• Publication of the 8 point Action Agenda for Africa’s Competitiveness

• Report includes 37 African countries

• Report published on a biennial basis

• Followed-up by a series of workshops to improve competitiveness

• 2015-2017 and 2017-2019

• World Bank, OECD and African Development Bank

• Network of Partner Institutes

• Improve competitiveness in Africa

• The Report as a reference on areas requiring policy action and investment to ensure that

Africa lays the foundation for sustained growth

• Taking the long standing Africa Competitiveness Report to the next level

Background

Why the initiative? What is the

context?

Partners

Who is involved?

ImpactWhat has changed? What is

expected to change?

Description

What is it? (Countries, activities, commitments, timeline)

• Regional Partners, incl. MMI and Yellowwoods, Strategic Partners, incl. GE, Google, Agility,

and Global Systems Partners, incl. the Rockefeller Foundation

• Education & training sector, incl. Wits University, which is currently chairing the African

Research Universities Association, and civil society, incl. the Rockefeller Foundation

• Provides a platform that maps existing initiatives and programmes to help structure the

fragmented nature of the employment and skills landscape in Africa and identify

collaboration opportunities

• Helps stakeholders understand skills gap and Future of Jobs in the region and how

multistakeholder collaboration can help to scale some of the existing initiatives

• Connects stakeholders from business, government, civil society and the education & training

sector

• Provides insights on the issue as well as a platform to share best practices and lessons learnt

• At least 10 million young people join the labour force every year in Africa

• 2.5 million engineers are needed throughout Africa

• 70% of employers report inadequate employee skills at the time of recruiting

Africa Skills Initiative

Background

Why the initiative? What is the

context?

Partners

Who is involved?

Impact

What has changed? What is

expected to change?

Description

What is it? (Countries, activities,

commitments, timeline)

• Northern corridor member countries (Kenya, Rwanda, South Sudan, Uganda), SMART

Africa and local organizations

• Members of the Future of Digital Economy and Society steering committee

• 25 million new users in Northern corridor countries by 2019

• Deliver a digital and social platform where leaders from government, donors, the private

sector, and civil society can collaborate to scale and replicate internet inclusion activities.

• Country-owned process that will also document the processes and methodologies

developed to allow countries and regions to launch similar projects on their own.

• Internet penetration is among the lowest worldwide in most of Africa.

• 10% increase in penetration was correlated with a 1.35% increase in GDP for developing

countries (World Bank). Connectivity has great potential for Africa to reap related economic

and social benefits.

Internet for All

Background

Why the initiative? What is the

context?

Partners

Who is involved?

Impact

What has changed? What is

expected to change?

Description

What is it? (Countries, activities,

commitments, timeline)

• African governments from 12 countries, committed to improving business enabling

environment

• 50 international and 150 African agribusinesses, committed to invest sustainably

• Development Partners, supporting a market-led approach

• Over $2.3 billion in private-sector investments have been implemented to date by

Grow Africa partners

• These investments reached over10 million smallholder farmers and created 88,000

jobs since 2012

• Aligns private sector investment to host-country strategies

• Connects commercial partners, including smallholder farmers

• Captures best practice in innovative, responsible business models

• Facilitates measurable responsible and inclusive investments

• Transform African agriculture sector

• Achieve food security on the continent through increased investment, partnership and

improvements to the enabling environment

• Create jobs and improve livelihoods and incomes of smallholder farmers

Grow Africa

BackgroundWhy the initiative? What is the

context?

PartnersWho is involved?

ImpactWhat has changed? What is

expected to change?

DescriptionWhat is it? (Countries, activities,

commitments, timeline)

— Host organizations - the Center for International Private Enterprise, the International

Chamber of Commerce and the World Economic Forum

— Donors - Canada, Germany, Australia, the United Kingdom and the United States as well

as GIZ, the German government’s enterprise for international cooperation

— Business - of all sizes and in all parts of the world, including in West and East Africa

— Pilot projects in 10 countries to start in 2016, including Kenya, Tanzania & Ghana

— Diagnostics activities have started in Kenya, Tanzania & Ghana

— Currently expanding and consolidating the Alliance Network and structures

— 70 million USD over 7 years have been pledged by Donors to support the Alliance

— Expects to support efforts in 12 to 15 countries on an annual rolling basis

— Builds understanding of the benefits of TF within public & private sectors

— Establishes sustainable multi-stakeholder dialogues on trade facilitation

— Mobilizes public-private partnerships to drive change, engaging local business and

associations

— Provides technical assistance in support of capacity building in developing countries

— Benchmarks & Evaluates trade facilitation reforms based on established metrics

— More than 5% of GDP lost due to inefficient border procedures in Africa

— 3 times more costly to move a container from Kenya to S. Sudan than to China

— Can help boost intra-African trade, create jobs and increase trade and economic growth

Global Alliance for Trade Facilitation

Thank you

for your attention