INDUSTRIALIZE AFRICA Highlights of AfDB’s Strategy
Industrial and Trade Development Department (PITD)
Thursday May 3rd, 2018
Africa Business Day at JSE
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AfDB is accelerating delivery of its industrialization strategy
Strategic Vision Operationalization Delivery
Definition of strategy rationale and
vision
• AfDB "High 5" and "industrialize
Africa"
Description of AfDB industrialization
flagship programs
Definition of strategy objectives and
principles
Identification of industrialization
priorities
Definition of main AfDB intervention
modes
Elaboration of industrialization
business / investment plan & KPIs
Definition of internal roles and design
of business development missions
Mobilization of key resources
Business development
Acceleration of initiatives and
actions
Regular monitoring of realizations
and KPIs
2016 2017 2018
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Foster successful
industrial policies Policy Advise and Technical Assistance to governments (regulatory and institutional framework,
implementation and monitoring) and funding of key PPP projects
Supportive policy,
legislature and
institutions
Catalyse funding into
infrastructure and
industry projects
Increase and channel funding into GDP catalytic programmes (infrastructure and industrialisation
projects, by public and private operators)
• Raise own investment
• Foster investment by others (domestic and foreign) as strategic investor or MLA1
Conducive eco.
environment and
infrastructure
Develop efficient
industry clusters across
the continent
Support governments in developing efficient industry clusters across Africa, through Technical
Assistance and funding in implementation and monitoring Access to markets
Promote and drive
enterprise development
Drive enterprise development (large, small and medium businesses)
Scale-up investment and financing to lend to SMEs
• Technical Assistance support to strengthen SME-focused entities
• Establish linkages of SMEs to domestic projects/companies and provide training of a strong
talent pool
Promote strategic
partnerships in Africa
Link up African enterprises and major projects with potential partners and investors, through
promotional activities, notably African Investment Forum (AIF)
Facilitation and management of investor relations (e.g. contract negotiations)
Competitive
talents, capabilities
and entrepreneurship
Grow liquid and effective
capital markets
Improve access to market finance for African enterprises
• Advise governments, stock exchanges and regulators on development of liquid capital markets
• Invest directly in capital markets to increase liquidity Access to capital
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6 flagship programs within Industrialization High 5
1. Mandated Lead Arranger
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Date Project Country Sector AfDB Tranch ($m)
2017 Boke Mine Rail & Port Guinea Mining 100
2017 Tekcim Morocco Building materials 50
2017 SNIM Mauritania Mining 50
2014 Moma Mineral Mozambique Mining 30
2014 Kalagadi South Africa Mining 150
2014 Dangote Industries Limited Nigeria Fertilizers 300
2012 Derba Cement Ethiopia Building materials 55
2012 Indorama Nigeria Fertilizers 100
2011 Nyumba Cement Plant DRC Building materials 60
2011 OCP Morocco Fertilizers 250
2011 Kempinski Hotel Ghana Hospitality 16
2009 SNIM Mauritania Mining 175
2008 Ambatovy Madagascar Mining 150
Total 1486
Industrial Portfolio (2008-2017) excluding trade finance and LoC > USD 2bi..
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AfDB industrialization
objectives
Key principles of AfDB
industrialization strategy
Strategic objectives
Foster the emergence of
regional champions
Create sustainable jobs and
increase productivity
Play a leading and pivotal
development role in Africa
AfDB "High 5" goals to 2025
Light up & power Africa
Feed Africa
Industrialize Africa
Integrate Africa
Improve quality of life
Support global trade integration
and regional value chains
Grow co-financing and mobilize
private sector investment
• Be a renown leader in Africa &
a pulling force for additional
investments and partners Catalytic
• Adopt a differentiated sector
and country approach with a
variety of intervention tools Differentiated
• Focus on areas where AfDB can
deliver highest economic, social
and environmental impacts Impactful
• Push pragmatism in project
identification, pursue concrete
opportunities & clear roadmap Actionable
• Analyze value chains to
identify opportunities and
bottlenecks Fact-based
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• Large connectivity infra
projects (telco, towers,
datacenters, etc.)
• Large ICT players
(telco, e-commerce,
apps and services, etc.)
• Integrated plants in
countries with strong
demand and reserves
• Grinding stations in
countries with strong
demand and low
reserves
• Large hotel projects in
fast growing markets
• Business hotels in
African economic
centers
• Fertilizer production
units in countries with
existing reserves
• Blender networks in
consumption countries
• Transport & logistics
companies' growth and
expansion (ports
concessions, truck
fleets, warehouses, etc.)
ICT Building materials
Transport & logistics
Hospitality Fertilizers
• MNC & African
champions
manufacturing capacity
regional expansion
• Exploration and
exploitation in countries
with complex set-ups
• Beneficiation projects
for existing mining
facilities
• Global players
investments in Africa
• Modernization of
regional champions'
machinery and
equipment
• Retail space capacity
development (shopping
malls, outlets, etc.)
• Retail chains expansion
in Africa, especially
regional champions
• MNC & African
champions generics
manufacturing capacity
increase, upgrade to
GMP and regional
expansion
Consumer Goods
Mining Pharmaceuticals Textile Retail
Strategic objectives by sector
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Examples of industrial projects from 2018 pipeline
Fertilizer Long term relationship with an African
champion
Total project cost: USD 1.1bi
AfDB role: - USD 100mi debt
Project description
- New production line
- Increase fertilizer production
capacity
Telecommunication
satellite Support connectivity infrastructure
development and transformative project
Total project cost : USD 1.1bi
AfDB role: - USD 150-200mi debt
Project description
First low orbit network of connectivity
satellites covering Africa
Potash mine Transformative mining project in fragile
country
Total project cost : USD 350mi
AfDB role : under discussion
Project description
- Development of mine and export
infrastructure
Support industrial
policies Technical assistance to African countries to
develop and implement sound industrial
policies
Partnership with UNIDO
Pilot countries
- Ethiopia
- Senegal
- Morocco
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Examples of industrial projects from 2018 pipeline
Steel Plant Support an expanding African industrial
champion and availability of
construction/ manufacturing material
Total project cost: USD 125mi
AfDB role: - USD 65mi debt
Project description
- Construction and operation of steel
plant
- Use of new technology to directly
process iron ore
Industrial Park Industrial park developed by leading
African mining company to develop local
content in the mining sector
Total project cost : USD 45mi
AfDB role: - USD 13mi
Project description
Support a leading African mining company
to develop a local ecosystem to service
the mining sector and increase local
content
Fertilizer production Partner with African champion to develop
market on the continent
Total project cost : > USD 1bi
AfDB role : corporate loan TBC
Project description
- Increase production capacity to
develop regional market
Invest in Private Equity
funds
Provide seed funding to PE funds in the
industrial sector
Support African SMEs with high growth
potential in the industrial sector