African Development Bank Research Articles

Environmental quality in Africa and infrastructure development: The mediating impact of the knowledge economy

AbstractThe study investigates the impact of infrastructure development on environmental quality and the mediating impact of the knowledge economy in 48 African economies from 2000 to 2020. The Generalized Method of Moment is adopted to control for error term‐related problems and potential endogeneity through an instrumentation process. The following findings are established: First, Infrastructure development enhances environmental sustainability in Africa, through the reduction of greenhouse gasses. Second, it contributes to reducing CO2 emissions in liquid, solid and gaseous states of fuel consumption. These results hold after considering the infrastructure development indicators of the African Development Bank. Third, the findings further reveal that the transport, energy, water supply, and technology sectors all contribute to enhancing environmental quality. Fourth, taking into account differences in factor endowment, the findings indicate that infrastructure development helps reduce CO2 emissions in both lowly and highly endowed African countries, except for electricity and water supply in the lowly endowed economies, indicating that the development in these sectors needed to be speeded‐up to enhance environmental quality in these countries. Fifth, the findings indicate that the knowledge economy mediates with infrastructure development to promote environmental quality through the reduction CO2 emissions. The findings recommend policymakers promote infrastructure development for environmental efficiency in Africa. This is particularly enhanced through the mediation impact of the knowledge economy.

AFRICAN DEVELOPMENT BANK: New Loans

AFRICAN DEVELOPMENT BANK: New Loans

Organizational learning capacity and international development project success in West Africa: A case study

Very few studies have focused on organizational learning within a team as a key success factor for international development projects. In particular, the relationship between organizational learning capacity, organizational efficacy, and project success has received little attention. This is the objective of this case study. It explores this relationship based on 23 semi-structured interviews with project coordinators, team members, and beneficiaries of two projects financed by the West African Development Bank (WADB) in Benin and Senegal. The results show that the social process of developing organizational learning capacity within a project team is a crucial issue for organizational efficacy and project success. Points for practitioners Within a team, establishing a framework for developing organizational learning capacity, characterized by autonomy, experimentation, and interaction with stakeholders, is a key project success factor. Flexible and adaptive approaches may foster organizational learning and help explore, through action, new project capacities. Such approaches may help increase the odds of project success in terms of international development and, thus, create value for stakeholders including beneficiaries.

International financial institutions and the development of Nigeria

The study investigated the existing relationship between International Financial Institutions concerning the World Bank, International Monetary Fund, African Development Bank, and the development of Nigeria. The historical design was used to organize and analyze secondary data derived from books, articles, official journals of international financial institutions, government/official documents and internet sources related to the problem of the study. The study adopted the Modernization theory of development as its theoretical framework in explaining Nigeria's development from the perspective of her affiliation with the international financial institutions (Bretton Woods Institutions and African Development Bank)'s loan policies and initiatives and their implications for Nigeria's development. The findings revealed that the policies and initiatives of the Bretton Woods Institutions and African Development Bank influenced the Nigeria development project, which has resulted in the constant granting of loans to Nigeria. Based on the findings, the study recommends that the Nigerian government should quickly look inward at other internally generated revenues from custom duties, sales of crude oil, sales of refined crude (Petro), maritime and other agricultural products' revenues and re-channel them towards Nigeria's development instead of wholly depending on loans and otherwise set up independent, as well as strong institutions to oversee and manage funds from foreign loans to avoid mismanagement and diversification that may lead Nigeria into more foreign debts thereby further retarding development in Nigeria.

An Investigation of the Cause of Delay in the Operationalization of Industrial Clusters in Zambia

The Zambian government, through the Citizens Economic Empowerment Commission (CEEC), sourced funding from the African Development Bank and constructed eight Industrial clusters in 2018, one in each of the following towns, Kafue, Chipata, Mongu, Ndola, Kitwe, Solwezi, Mansa and Kasama. These clusters were to be operational by 2019. However, as at June 2023, only three industrial clusters in Chipata, Kasama, and Mongu were operational. This paper reports the findings on the causes of the delay in operationalizing the constructed industrial clusters. A qualitative research design was used to identify the factors causing delay in the operationalization of the industrial clusters. The findings revealed that, inadequate funding by government was a major impediment on the operationalization of the industrial clusters accounting for about 42%, while management of CEEC, due to being politically inclined, accounted for 22.7%. The other factors are: change in government support strategy to small businesses, which necessitated remodelling of cluster buildings to accommodate cooperatives in the industrial clusters (19%), industrial clusters located in the outskirts of the central business districts (9.7%), and lack of engineering and information technology services (6.3%). This study recommends an industrial cluster implementation which is devoid of political influence, and independent management body.

Analysing governance‐led infrastructural development nexus in sub‐Saharan Africa: Does the moderating role of institutional quality matter?

AbstractGovernments engage in infrastructural developments across the globe, and the level of success often colligates with institutional quality levels. However, despite the presence of governance, the lack of well‐developed infrastructure has bedevilled sub‐Saharan African (SSA) countries for decades. Therefore, this study investigates the governance‐led infrastructural development hypothesis for the SSA region from an institutional quality perspective towards addressing the infrastructural deficit challenges of the region. A combination of advanced panel econometric techniques was applied to data collected from the African Development Bank, World Bank World Development Indicator, and International Monetary Fund (IMF) to investigate the governance‐led infrastructural development hypothesis in SSA while controlling for financial development, economic growth, and industrialization in the region. The findings show that the interaction of institutional quality measures and governance indicators significantly and positively induces infrastructure in sub‐Saharan Africa (SSA). Additionally, while economic growth and financial development yield no expected significant influence on infrastructural developments, industrialization plays a crucial role, as its spillover effects are not confined to boosting economic growth alone but also to infrastructural transformations. Thus, the provision of policy frameworks by authorities to strengthen institutions and promote good governance is vital for articulating and facilitating infrastructural development plans for SSA.

Localized Multilateralism: Examining the African Development Bank

Abstract: This paper critically examines post-crisis efforts by focusing on the African Development Bank's (AfDB) role in facilitating recovery and poverty reduction across the African continent. Case studies include the COVID-19 crisis, migration, and efforts to battle regional hunger. The analysis contrasts the approaches of the AfDB's strategies with that of the World Bank's Structural Adjustment Programs (SAPs), underscoring the former's unique successes and efficiencies in addressing the specific needs of the continent to reduce poverty. The analysis begins by contextualizing the historical and socio-economic landscape, highlighting African countries' distinct challenges with structural adjustment and debt, and then delves into a detailed assessment of the AfDB's initiatives. This paper suggests that the AfDB's customized strategies could be more effective for Africa's development agenda due to their alignment with the continent's varied cultural, political, and economic landscapes. This approach, prioritizing contextual relevance over a sole focus on economic growth, is argued to be more conducive to addressing Africa's unique developmental challenges.

Harnessing the job creation capacity of young rural agripreneurs: A quasi-experimental study of the ENABLE program in Africa

With evidence of increasing investment in youth agribusiness empowerment programs across Africa, employment discussions and strategies are increasingly focusing on how youth-owned agribusinesses can facilitate long-term job creation and contribute to revitalizing rural economies in the coming years. In light of these changing employment dynamics, we assessed the evolving role of youth and small agribusinesses in employment creation in rural areas. Further, we assessed the impact of agribusiness empowerment programs in unlocking the job creation capacity of young agribusiness owners, taking evidence from the youth component of the African Development Bank (AfDB) Technologies for African Agricultural Transformation (TAAT) program, Empowering Novel Agribusiness-Led Employment (ENABLE) implemented in Kenya, Nigeria, and Uganda. A total of 1435 respondents, comprising 737 participants and 698 non-participants were surveyed across the three countries. An Endogenous Switching Regression (ESR) model was used to identify factors that determined program participation, and factors influencing job creation, and assess the program's impact on job creation. The results validate our assumption of changing employment dynamics in the rural areas where youth-owned small agribusinesses hired an average of 4 employees. The ESR results show the significance of the program on the job creation capacity of participants across the three countries. Also, we found that non-participants could potentially increase their job creation capacity if they had participated in the program. Factors that influence job creation include socio-economic, such as age and marital status, business attributes including agribusiness experience, business level, income, and access to land. These results indicate that continuous concerted efforts on agribusiness empowerment will have a notable impact in generating more jobs and reducing the rates of unemployment, particularly among young people. Thus, more investment should be directed towards empowering young people in agribusiness in the study countries, and elsewhere in Africa.

Advancing minigrid clusters in Ethiopia: A Multi-Tier Framework for optimal planning and sizing

This paper introduces an innovative approach to promote sustainable electrification in Ethiopia through the strategic development of minigrid clusters. In collaboration with Ethiopian authorities, technical and economic barriers obstructing the large-scale deployment of minigrid clusters are systematically identified. A novel Multi-Tier Framework (MTF)-based energy access matrix is presented, facilitating the creation of hybrid load profiles prioritizing affordability and reliability. The most suitable multi-criteria optimization strategy tailored to the Ethiopian context is explored, emphasizing the need for scalable and adaptable solutions. The proposed approach is rigorously validated through case studies in three villages within the Southern Nations, Nationalities, and Peoples' Region (SNNP). The research findings reveal the remarkable techno-economic advantages of minigrid clusters when compared to single minigrids, establishing the practicality and significance of the methodology. Sensitivity analysis is conducted to assess the impact of varying techno-economic scenarios on optimal sizing, providing essential insights for decision-makers. As a result, this paper significantly contributes to the upcoming deployment of four planned large-scale minigrids in the SNNP region, funded by the African Development Bank. Valuable guidance for stakeholders and decision-makers involved in minigrid cluster development in Ethiopia is offered, underscoring the critical role of such systems in achieving sustainable energy access and fostering socioeconomic progress.

Eastern and Southern African Trade and Development Bank

Eastern and Southern African Trade and Development Bank

Mycelium Composites for Sustainable Development in Developing Countries: The Case for Africa

AbstractThe socio‐economic struggles in Africa are partly attributed to the low productivity of the agricultural sector. The Sustainable Development Goals Centre for Africa (SDGC/A) and the African Development Bank Group (AfDBG) both agree that the continent needs sustainable interventions to boost agricultural productivity, employment, and income. In this regard, mycelium composite production can present one potential solution. The added value to agricultural waste used to produce mycelium composites can generate additional revenue for farmers, serving as an incentive to increase agricultural productivity. Furthermore, the establishment of mycelium composite start‐ups can increase employment and income, especially for women and the youth. Mycelium composites can also aid in mitigating environmental and health challenges caused by some of the current waste management practices in Africa. This review offers valuable insights into the potential use of mycelium composites as a sustainable alternative for Africa. It explores the potential use of locally accessible resources, the potential applications for the composites in Africa, and the potential challenges that may arise with this technology. It further assesses the potential contribution of this technology to sustainable development in Africa in line with the Sustainable Development Goals (SDGs) set by the United Nations (UN).

Editorial

Editorial

Accountability enablers? The role of transnational activism in the use of the multilateral development bank grievance mechanisms

Abstract The proliferation of concerns over the transparency, accountability, and democracy of international organizations has contributed to an increase in accountability mechanisms to hold global governors to account, by both state and non-state actors. Much of the scholarly focus on this subject has been on how levers of accountability can improve global governance for Member States and actors seeking to improve decision-making, and thus outputs. This article instead examines how individuals and communities, or neglected publics, are using accountability mechanisms designed to provide them with recourse for environmental and social harm. It probes the use of the grievance mechanisms for the multilateral development banks to examine what kinds of actors use them (e.g., international nongovernmental organizations, nongovernmental organizations, or project-affected people [PAP]) and to what effect. To explore these questions, we analyze 500 complaints submitted to the grievance mechanisms of the World Bank Group; the Asian, African, and Inter-American Development Banks; and the European Bank for Reconstruction and Development. The results demonstrate that claims for recourse come from a range of primarily local actors, but that PAP in developing countries will more often achieve positive outcomes from the grievance mechanism process if they receive assistance from international and national nongovernmental organizations. These findings therefore demonstrate that transnational activists can fulfill a facilitating role as “accountability enablers” and that domestic representatives are especially effective in problem-solving processes, while international representatives are especially effective in compliance processes.

Quality of Life of Children in Orphanages: A Study in Bamako, Mali

The Republic of Mali is among the poorest countries on both the African continent and in the world. Nearly 70% of the population resides in rural areas, and 10% lead a nomadic lifestyle. Data from the African Development Bank indicates that 48% of the population is under the age of 15, 49% falls between the ages of 15 and 64, and 3% is over 65. The fertility rate stands at 7.4 births per woman. From a sociological perspective, the concept of "quality-of-life" is often likened to lifestyle. Factors such as adequate nutrition, health conditions, educational levels, and access to cultural and developmental facilities have come to be recognized as indicators of quality-of-life. This paper delves into a field study that investigated the quality-of-life of children residing in orphanages in Mali. In-depth interviews were conducted with officials from three orphanages in Bamako, Mali's capital—comprising one privately owned and two state-owned institutions. A qualitative research approach was employed. The data obtained from these interviews were digitized using the NVivo software package. This data was then organized into nodes, creating a structured relationship between the nodes and the data. Content analysis was applied to interpret the qualitative data, with emerging concepts being categorized into nodes during the coding phase. Observations made during the interviews were duly noted. Additionally, quantitative data from sources like the African Development Bank, UNDP Human Development Index, World Health Organization, and Bulletin of Statistics were integrated to reinforce the qualitative findings. Based on the accumulated data, themes were developed in alignment with the three primary indicators of quality-of-life: 1) Physical welfare and social security, 2) Life expectancy, and 3) Opportunities for personal growth and education. The study's findings reveal that, regardless of the differences between state-owned and privately-owned orphanages, the overall quality-of-life of the children is below the expected standard across all three indicators.

AFRICAN DEVELOPMENT BANK

Africa Research Bulletin: Economic, Financial and Technical SeriesVolume 60, Issue 3 p. 24235C-24237A Policy and Practice AFRICAN DEVELOPMENT BANK First published: 05 May 2023 https://doi.org/10.1111/j.1467-6346.2023.11062.xRead the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL No abstract is available for this article. Volume60, Issue3May 2023Pages 24235C-24237A RelatedInformation

Investigating the Effect of Infrastructural Development on Economic Growth in Uganda

Aim: The study used quarterly time series data to investigate the effect of infrastructural development on Economic Growth in Uganda.
 Place and Duration of Study: the study utilized data for the period between 2005-2020 obtained from the 2022 World Bank’s World Development Indicators (WDI) and the African Development Bank for African Infrastructure Development Index (AIDI).
 Methodology: The study used the Autoregressive Distributed Lag (ARDL) model to analyze the relationship between infrastructure development and Economic Growth in Uganda.
 Results: The findings from the study indicated a positive relationship between AIDI and Economic growth in Uganda. Overall improvement in AIDI considering the four infrastructure components creates an enabling environment for other factors of production to operate effectively and efficiently hence spurring economic growth in the country.
 Conclusion: The findings therefore implies that investment in infrastructure should consider all the four infrastructure components that comprise the AIDI namely, Transport, Electricity, ICT and Water and Sanitation for Uganda to be able to fully benefit from its investment in infrastructure in both the short and long run.

Multilateral development banks investment behaviour in water and sanitation: Findings and lessons from 60 years of investment projects in Africa and Asia

Abstract Multilateral development banks (MDBs) play a pivotal role in financing water and sanitation infrastructure projects and thus have a major impact on the development of basic services. Although information about the MDBs' investments is publicly available, it is dispersed and not easily comparable. A comprehensive compilation of MDBs' water and sanitation investments has long been lacking. To address this gap, we assess water and sanitation financing by the three MDBs most relevant to Africa and Asia between 1960 and 2020: the World Bank, the African Development Bank, and the Asian Development Bank. We compile a new dataset by drawing on 3,639 water and sanitation projects and assess territorial trends, technology choices, distribution of financial burdens, and reforms to institutional arrangements. We find that MDBs' investments align with changing patterns of urbanization and increasingly finance sanitation infrastructures including non-sewered technologies. However, our results also suggest that institutional reforms have addressed utility efficiency through investment in equipment and skills rather than through increased commercialization and private sector participation. The leverage effect of MDB investment on private financing is negligible, whereas co-financing from local governments dominates.

Towards consistency of value and order: cooperation strategies of international water projects

ABSTRACT This article discusses the policy principles and strategy models for water resources projects around developing regions of the World Bank, the Asian Development Bank, African Development Bank, European Union, United States and Japan. To address conflicts and risks, they adapted different frameworks following a similar logic. A two-track sustainable model – value of isomorphism and order of symbiosis – is then identified, combining strategies of consistency, methodology diffusion, community participation and resource incentives.

AFRICAN DEVELOPMENT BANK: Stable Growth

Africa Research Bulletin: Economic, Financial and Technical SeriesVolume 60, Issue 2 p. 24199B-24200A Policy and Practice AFRICAN DEVELOPMENT BANK: Stable Growth First published: 05 April 2023 https://doi.org/10.1111/j.1467-6346.2023.11019.xRead the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat No abstract is available for this article. Volume60, Issue2April 2023Pages 24199B-24200A RelatedInformation

The African Development Bank and the Accountability Policy Norm

Abstract Established as a multilateral development bank (MDB) funded by African states, the African Development Bank (AfDB) is one of many similar international organizations (IO s) comprising the development finance regime complex. Arguably, states and policy elites recreate similar IO s that enable “norm conformance” within the complex. This is demonstrated through the AfDB’s adoption of the Independent Recourse Mechanism (IRM) in 2004. Despite no need or demand, the relatively insulated AfDB agreed to provide recourse for people adversely affected by AfDB-financed projects. This article argues that consensus among state and nonstate actors around an accountability policy norm led the AfDB to conform. Nonregional Member States, particularly the United States, used typical norm diffusion mechanisms: financial incentives, normative suasion, and voting on the AfDB’s Board. The concept of norm conformance highlights how behavioral expectations and organizational practices change based on what is socially appropriate.