African Development Bank Research Articles

Inclusive Economic Growth: Financial Opportunities. Case Study of the African Development Bank

The article examines the opportunities of the African Development Bank (the Bank) to stimulate inclusive economic growth (IEG) in African countries. The author analyses the definition of IEG, the main areas (clusters) of operations that affect it, indicators and indices that allow evaluating IEG. The obtained data on the clusters of operations that stimulate IEG allowed the author to hypothesize that the Bank’s projects in the relevant segments of the economy should (taking into account the current level of development, existing priorities and the level of current inclusiveness in the region or country), within the framework of the current strategy of cooperation with an African country, directly stimulate the IEG. The Bank’s projects reviewed by the author, aimed at providing IEG in selected African countries, confirm this hypothesis.

AFRICAN DEVELOPMENT BANK: Bi‐Annual Report

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An Index of African Monetary Integration (IAMI)

ABSTRACT This study improves the African Regional Integration Index (ARII) proposed by the African Union, the African Development Bank, and the United Nations Economic Commission for Africa by providing a theoretical framework and addressing shortcomings related to the weighting and aggregation of the indicator. This article measures monetary integration in the eight African Regional Economic Communities (RECs) by constructing an Index of African Monetary Integration (IAMI). It proposes an optimal currency area as a theoretical framework and uses a panel approach to appreciate the dynamics of the index over different periods of time.

AFRICAN DEVELOPMENT BANK

Africa Research Bulletin: Economic, Financial and Technical SeriesVolume 59, Issue 12 p. 24126B-24128A Policy and Practice AFRICAN DEVELOPMENT BANK First published: 11 February 2023 https://doi.org/10.1111/j.1467-6346.2023.10931.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. Volume59, Issue12February 2023Pages 24126B-24128A RelatedInformation

Earmarked Funding and the Control–Performance Trade-Off in International Development Organizations

AbstractSince the 1990s, the funding of multilateral development assistance has rapidly transformed. Donors increasingly constrain the discretion of international development organizations (IDOs) through earmarked funding, which limits the purposes for which a donor's funds can be used. The consequences of this development for IDOs’ operational performance are insufficiently understood. We hypothesize that increases in administrative burdens due to earmarked funding reduce the performance of IDO projects. The additional reporting required of IDOs by earmarked funds, while designed to enhance accountability, ultimately increases IDOs’ supervision costs and weakens their performance. We first test these hypotheses with data on project costs and performance of World Bank projects using both ordinary-least-squares and instrumental-variable analyses. We then probe the generalizability of those findings to other organizations by extending our analysis to four other IDOs: the African Development Bank (AfDB), Asian Development Bank (ADB), Caribbean Development Bank (CDB), and International Fund for Agricultural Development (IFAD). Using data on the performance of 7,571 projects approved between 1990 and 2020, we find that earmarked funding undermines both cost-effectiveness and project performance across IDOs. Donors seeking value for money may consider allocating more money to core funds rather than to earmarked funds.

Can young agripreneurs improve their skills through agripreneurship empowerment programmes? Evidence from Africa

This article examined the driving forces behind young agripreneurs' participation in agripreneurship empowerment programmes and estimates the causal impact of programme participation on agripreneurship skills using data from a random cross-section sample of 1435 young agripreneurs in Kenya, Nigeria, and Uganda. Specifically, the study took evidence from the youth component of the African Development Bank Technologies for African Agricultural Transformation (TAAT) programme, Empowering Novel Agribusiness-Led Employment (ENABLE). An endogenous switching model was used to identify factors that significantly informed participation decisions and assess the programme's impact on youth agripreneurship skills. Age, education, agripreneurship experience, business level, current residence, and training perception significantly influenced participation. Even though both programme participants and non-participants had high agripreneurship skills scores, participants had higher scores across the three countries than non-participants. The causal impact estimation from the switching regression model also indicates that participation has a positive and significant impact on agripreneurship skills, which implies that the higher score achieved by participants could be attributed to their involvement in the ENABLE-TAAT programme. These results suggest raising awareness of youth agribusiness empowerment programmes and encouraging youth to participate more actively. Additionally, the result suggests the need to implement strategies that could change young people's negative perception of agricultural interventions for increased participation.

AFRICAN DEVELOPMENT BANK

Africa Research Bulletin: Economic, Financial and Technical SeriesVolume 59, Issue 11 p. 24095A-24095B Policy and Practice AFRICAN DEVELOPMENT BANK First published: 11 January 2023 https://doi.org/10.1111/j.1467-6346.2022.10889.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. Volume59, Issue11January 2023Pages 24095A-24095B RelatedInformation

An Empirical Analysis of the Determinants of Resource Distribution by the African Development Bank Group

An Empirical Analysis of the Determinants of Resource Distribution by the African Development Bank Group

MDB Loans: A New Asset Class for CLOs

Use of structured financings for balance sheet management by multilateral development banks (MDBs) is still in its infancy. Three path-breaking deals by the African Development Bank (AfDB) and International Finance Corporation (IFC) are leading the way, however. The two AfDB deals are both synthetic, with the loans remaining on the balance sheet despite substantial risk transfers. The IFC transaction allows co-funding of private sector loans with other lenders. New insights and opportunities will certainly emerge with rising experience in MDB loan deals. A few imperatives for a robust MDB collateralized loan obligation (CLO) market are already evident: (i) public disclosure of the relevant parts of proprietary historical MDB loan performance data; (ii) more-transparent rating agency criteria for MDB securitizations, and (iii) greater management, investor, banker, and MDB expertise in this asset class.

AFRICAN DEVELOPMENT BANK: Africa Investment Forum

AFRICAN DEVELOPMENT BANK: Africa Investment Forum

Rethinking regional integration in Africa for inclusive and sustainable development: Introduction to the special issue

AbstractThis article is an introduction to this Special Issue on Rethinking in Regional Integration in Africa which is based on a collaborative research project, implemented by African Economic Research Consortium (AERC), the leading economic capacity building institution in Africa, and funded by the African Development Bank (AfDB). This project is very timely given the establishment of the African Continental Free Trade Area (AfCFTA) which came into force on 01 January 2021. In this introduction, we first provide a brief background on regional integration in Africa. We next describe the AERC project and the process of selection of the papers and then provide a quick summary of the ten published papers and their contributions.

AFRICAN DEVELOPMENT BANK

Africa Research Bulletin: Economic, Financial and Technical SeriesVolume 59, Issue 7 p. 23945C-23947B Policy and Practice AFRICAN DEVELOPMENT BANK First published: 05 September 2022 https://doi.org/10.1111/j.1467-6346.2022.10705.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. Volume59, Issue7September 2022Pages 23945C-23947B RelatedInformation

Higher education research, development agendas in Africa. Where is the convergence? A literature review

PurposeThis paper aims to examine the possible link among the African Development Bank (AfDB), Results Measurement Framework 2016–2025 and the research published at institutions of higher education on the continent in the last five years. The unregulated commercialisation of higher education in most African countries has been prone to large-scale abuse through wanting curriculum development and processes accruing to competence, skills needy and job market disoriented graduates.Design/methodology/approachThis study took a qualitative literature review analysis where research papers published in the last five years on higher education in Africa were searched. These were from Google and Semantic scholar and these were categorised in a detailed concept matrix.FindingsFindings indicate that there is hardly a connection between the AfDB Group development agenda on the continent and the research conducted and published by institutions of higher learning on the continent.Practical implicationsUniversities should prioritise a needs-based research agenda in their strategic planning and this implies commitment in terms of funding, human resource competency empowerment and partnerships with development agencies on the continent. African institutions of higher learning have not emphasised applied research practices to tackle pervading knowledge needs on the continent. Just like findings indicate, research in most of these institutions has been donor driven.Originality/valueThis study brings to speed the fact that if transforming Africa is going to take a strategic direction in the post-COVID-19 era, then partnerships between higher education institutions and development agencies operating on the continent will be an inevitable venture.

African Equity [women - Africa

There are cultural as well as socio-economic barriers for African women who want to start their own business, but a number of projects are under way to change that. Start-ups founded by a single female or all-female teams received just 0.95 per cent and companies started by mixed teams received 18 per cent of the total funding raised, according to Briter Bridges' Africa Investment Report. There are many reasons why women are prevented from accessing this financial support, according to the manager of the African Development Bank's Affirmative Finance Action for Women in Africa (AFAWA) programme. The International Labour Office has identified digitisation and fair competition as "fundamental levellers" in the challenges facing women entrepreneurs in Africa. AFAWA also encourages women to be trained in developing a business plan, understanding finance and the importance of keeping proper financial records.

African Development Bank: Experience in Assessing Inclusive Economic Growth in North Africa

The article discusses the African Development Bank (Bank), the features of its activities and the experience of assessing inclusive economic growth (IEG) in the countries of North Africa. The author reveals the structure of the EDI index (developed and tested for the countries of North Africa by the Bank’s specialists), based on the use of generally recognized social and economic indicators. The author concludes that the use of various indicators and weighting factors in the index will allow development banks (DBs) to objectively assess the impact of their activities on the EDI in regions and countries. The EDI index will complement the existing system for evaluating the activities of the BR, and will allow them to use their resources more efficiently, plan and implement projects and programs, considering current goals.

Financing Africa’s Post COVID-19 Sustainable Development: Domestic versus International Resources Mobilization

Even though the African continent has recorded the lowest deaths tolls caused by COVID-19, it is one of the slowest continents recovering from the pandemic. The effects of COVID-19 have crippled many developing progresses made prior to the pandemic and the government of many countries in the continent have already utilised the limited financial resources on the on-going crisis. Many African countries are seeking for financial assistance from institutions like the International Monetary Fund (IMF) the African Development Bank (AfDB), the World Bank and many other sources for post COVID-19 development. In financing Africa’s post COVID-19 development, this article will examines domestic public and private and international resource mobilization for Africa’s post COVID-19 development. It argues that both the revenues system of most African countries has to be restructured to ensure effective and efficient tax collection while reallocating more budgets for development. With regard to international resource mobilization, the Special Drawing Rights (SDRs) of the IMF, Foreign Direct Investment (FDI) were analysed. Similarly, the Strategy for Economic Governance in Africa (SEGA) of the AfDB and Agenda 2063 of the African Union (AU) were also examined as models for sustainable post COVID-19 development in Africa. Finally, it argues that financing post COVID-19 development will requires contributions from domestic, international private and public sources but the domestic financial sources should provide most of the funds because borrowing will enslave the borrower to the lender.

Factors Influencing Adoption of Agricultural Technologies amongst African Development Bank Community Based Agriculture and Rural Development Project Beneficiaries in Nigeria

The Nigerian agricultural sector is characterized by low level of technology adoption which in turn contributes to the low agricultural productivity in the country. This is indeed worrisome given the plethora of interventions by successive governments, multi-lateral and donor agencies working to implement several programmes aimed at promoting technology adoption among farmers. This study examines factors which influence adoption of modern agricultural production technologies among African Development Bank-Community Based Agriculture and Rural Development Programme (AfDB-CBARDP) beneficiaries in Nigeria. To achieve this objectives, Multi stage sampling technique was employed where a total of 1020 farmers/Project beneficiaries across the 5 Project Implementing Units were selected. The data was estimated using the logit regression. The use of the logit model for this analysis is consistent with the literature on adoption (see for instance Griliches, 1957). Result of the maximum likelihood estimates of the Logit regression model has indicated that the relationship between income and improved technology adoption was shown to be positive and statistically significant. Farming experience was also positively related to adoption of the improved technologies and statistically significant at 1% level. The study also reveals that adoption of improved farming technologies increases with credit availability. Farm size on the other hand was negatively related to adoption of fertilizer technology but positively related to seed, post-harvest and livestock improvement technologies at 1% significant level. Correspondingly, the coefficients for improved seed and livestock technologies were positively related to the farmer’s age at 5% significant level. The findings of the study further revealed that profitability of the enterprise is the major reason for technology adoption by the beneficiaries and is considered very important (3.7*). Output/yield and product marketability was the second and most important reasons for technology adoption having a weighted mean scores value of 3.1* and 3.3* respectively. Likewise, among the bundles of technology disseminated under crop sub sector, varietal attributes related to early maturity was adjudged to be important motive for the adoption (2.7*). Inaccessibility of the technology or high cost of production were cited prominently as the main reasons for non-adoption of a particular technology (*Reason ≥2.5). These findings have important implication. The availability of modern agricultural production technologies to end users, and the capacities of end users to adopt and utilize these technologies should always be consider when scaling up innovation practices.

Socio-economic Impact of Rural Road Infrastructure by African Development Bank Community Based Agriculture and Rural Development Project in Selected States of Nigeria

The study was carried out to assess the socio-economic impact of rural road infrastructure provided by the African Development Bank Community Based Agriculture and Rural Development Project (AfDB-CBARDP) in the States of Adamawa, Bauchi, Gombe, Kaduna and Kwara. Multi-stage sampling procedure was used to select samples for the study. A sample of 80 respondents were used for the study. The data was analyzed using descriptive statistics. The results revealed that the project had achieved 100% set target on the provision of road construction in each of the participating States. Also, 83.0%, 76.0%, 69.0%, 79.0% and 72.0% of beneficiaries’ communities in Adamawa, Bauchi, Gombe, Kaduna and Kwara States rated the roads quality as very good. The result has shown that in Adamawa, Bauchi, Gombe, Kaduna and Kwara States, there was reduction in time of waiting for motor vehicle by 160, 15, 50, 40 and 10 minutes. There was also a concurrent reduction in the transportation fare (Naira/passenger) to the nearby town by ₦50, ₦200, ₦100, ₦150 and ₦50, respectively. The study equally revealed that average yield per hectare of maize has increased from 1500 kg to 2500 kg before and after the project in Adamawa State. In the same vein, average yield in Bauchi, Gombe, Kaduna and Kwara States before the project were 1100 kg, 1200 kg, 1745.6 kg and 1223 kg, while after the project intervention the maize yields more than double to 2500 kg, 2800 kg, 2309 kg and 2309 kg, respectively. Likewise, average yield of cowpea per hectare has increased considerably across the five States of Adamawa, Bauchi, Gombe, Kaduna and Kwara by 69.8%, 65.9%, 51.6%, 73.8% and 46.5%, respectively. Percentage change in income of the sampled respondents indicates an average increase of 67.6% across the beneficiary States. The study concluded a strong positive NPVs and BCRs greater than 1 in all the States. The BCR in all cases indicates that the road projects were worth investing. The study recommended that a willingness to pay analysis to be undertaken as a way of gauging future tariff plan for the use of the road infrastructure to justify and attract private investment.

AFRICAN DEVELOPMENT BANK

Africa Research Bulletin: Economic, Financial and Technical SeriesVolume 59, Issue 4 p. 23839B-23840B Policy and Practice AFRICAN DEVELOPMENT BANK First published: 02 June 2022 https://doi.org/10.1111/j.1467-6346.2022.10571.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 onFacebookTwitterLinked InRedditWechat No abstract is available for this article. Volume59, Issue4June 2022Pages 23839B-23840B RelatedInformation

AFRICAN DEVELOPMENT BANK

Africa Research Bulletin: Economic, Financial and Technical SeriesVolume 59, Issue 3 p. 23805B-23806C Policy and Practice AFRICAN DEVELOPMENT BANK First published: 28 April 2022 https://doi.org/10.1111/j.1467-6346.2022.10525.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 onFacebookTwitterLinked InRedditWechat No abstract is available for this article. Volume59, Issue3May 2022Pages 23805B-23806C RelatedInformation