Latest news with #AfDB
Zawya
15 hours ago
- Business
- Zawya
World Youth Skills Day: African Development Bank to introduce systems reforms to prioritize investing in Africa's youth
The African Development Bank ( in partnership with the International Labour Organization, has launched a transformative system to mainstream youth employment, skills development, and entrepreneurship across its investments. The approach, called the Youth, Jobs and Skills Marker System, is aligned with the Bank's latest Ten-Year Strategy, which places Africa's young people at the center of development efforts to maximize the impact of every dollar invested, turning demographics into a dividend. The Marker System ensures that Bank projects spanning diverse sectors, such as agriculture, transport, energy, water, and education, systematically incorporate components that enhance youth employability, foster entrepreneurship, and build market-relevant skills. 'The Youth, Jobs and Skills Marker System is about ensuring Africa's young people have a real say and active role in building sustainable economies and creating jobs - not as passive recipients of youth programs,' said Dr. Beth Dunford, the Bank's Vice President for Agriculture, Human and Social Development. 'This transformation of Bank practices and systems is a step toward making sure our investments have a positive impact on Africa's young women and men.' The integrated system has three focus areas: Youth: Supporting youth-led micro, small, and medium-sized enterprises through targeted investments and operational integration. Skills: Expanding access to practical, market-driven training and apprenticeships to enhance career prospects. Jobs: Ensuring Bank-funded projects create sustainable job opportunities, particularly by developing youth skills for employability and the promotion of youth-led businesses in priority value chains. Each year, around 10 to 12 million young Africans enter the labor market, which offers only three million formal jobs annually. The Bank will prioritize youth entrepreneurship and mobilize private sector partnerships to strengthen industry-oriented skills training as well as job creation over the coming decade. '[This initiative] is very important because it allows us to significantly contribute to the United Nations Sustainable Development Goal #8 that includes decent work for all,' said Peter van Rooij, Director of Multilateral Partnerships and Development Cooperation at the International Labour Organization. 'It also allows the International Labour Organization to influence the Bank's work, to support their lending that is more geared toward more job creation and better jobs in a sustainable way.' The Youth, Jobs and Skills Marker System is modeled on the success of the Bank's Gender Marker System and its online dashboard, which categorize Bank projects based on their contribution to gender equality and women's empowerment. Similarly, the new system will feature an online platform enabling Bank staff and consultants to access real-time data for preparing country strategy papers, mid-term reviews, annual reports, project supervision, and reporting on youth-related skills, businesses and jobs outcomes. The Bank has just launched a pilot version of the Youth, Jobs and Skills Marker System in readiness for the full implementation in 2026. This system will enhance data tracking, improve estimates of youth skills attainment and employment, strengthen labor market information systems, and support policymakers in making evidence-based decisions that drive meaningful change. The International Labour Organization provided technical support for the system's development with financial support from the Bank's Youth Entrepreneurship and Innovation Multi-Donor Trust Fund. The Youth, Jobs and Skills Marker System is the first deliberate action of its kind developed by a development finance institution worldwide. Distributed by APO Group on behalf of African Development Bank Group (AfDB). To learn more about the Youth, Jobs and Skills Marker System, watch this video: Media Contact: Alphonso Van Marsh Chief Digital Content and Events Officer media@
Zawya
08-07-2025
- Business
- Zawya
AfDB awards South Africa $1mln grant to boost green jobs
South Africa is facing a growing youth unemployment crisis. But developing its green economy may be a way out. Recently, the African Development Bank (AfDB) awarded South Africa's National Business Initiative (NBI) a $1m grant to establish a skills ecosystem that will provide the country's young people with emerging job opportunities in the green economy. Sustainable job creation The funding will support the country's Just Energy Transition Skilling for Employment Programme (JET SEP), led by the National Business Initiative in partnership with the management consultancy Boston Consulting Group. The initiative coordinates private sector efforts to prepare the workforce for the energy transition, in tandem with the government's JET Skilling Implementation Plan, focused on inclusive workforce development and sustainable job creation. Specifically, the grant will finance the programme's first phase, including feasibility studies for the design of skills development zones and capacity building within the public technical and vocational education and training system. Skills development zones will anchor the delivery of inclusive skills and foster local economic growth during the country's just-energy transition. Launched in 2024 and endorsed by the JET Project Management Unit under the presidency of the Government of South Africa, JET SEP has garnered support from over 30 influential South African CEOs, public sector leaders, and civil society leaders in the past year. Investing in energy The grant builds on the African Development Bank's significant investment in South Africa's energy sector. Since 2007, the bank has invested $3.4bn to support energy infrastructure, including renewable energy. The current grant will support the government's efforts to identify the skills needed for the sector, with a particular focus on renewable energy. Shameela Soobramoney, CEO of the National Business Initiative, said: 'This grant from the African Development Bank is a critical step toward turning vision into action, strengthening the national skills system, and ensuring that all South Africans are equipped to seize new opportunities in the green economy. 'We are proud to continue working alongside our partners and stakeholders to build an inclusive future-ready workforce and to stimulate local economies in a way that leaves no one behind.'
Zawya
07-07-2025
- Business
- Zawya
Global agency to push funding of African nuclear power plans
The International Atomic Energy Agency (IAEA) has offered to help African countries unlock financing for nuclear power projects. IAEA's Director-General Rafael Grossi, who spoke at the Nuclear Energy Innovation Summit for Africa in Kigali this week, said there is renewed appetite for financing nuclear energy projects in Africa by international lenders.'Nuclear was there against a playing field that was not levelled. Until now, the doors for international finance institutions involved in any nuclear projects were closed. There was nowhere for African countries could turn to. I am looking forward to this new phase. We are going to be helping countries in Africa prepare bankable nuclear financing documents,' Mr Grossi said. He added that once countries approach the World Bank, the lender would reach out to the IAEA to work with that country and prepare a rejection-proof nuclear energy funding proposal. On the fears of banks, activists and ordinary people over safety, standards and practices to mitigate disasters, Grossi said: 'There have been misconceptions and unfavourable narratives about nuclear energy. Sometimes there is amalgamation of nuclear energy with weapons.'The AfDB has been averse to funding nuclear power projects partly because of the massive capital investments required – between $1.5 billion to $8 billion for a 1GW plant, with completion timelines of up to 15 years. These costs are prohibitive for countries with constrained budgets and high debt levels, with the continent's debt-to-GDP ratio averaging 65 per cent in 2024. Egypt's El Dabaa nuclear plant, for instance, cost $28.75 billion, largely financed by a Russian loan. The AfDB's energy portfolio is heavily weighted towards renewables and energy access programmes, such as the Sustainable Energy Fund for Africa (Sefa), which focuses on solar, wind and hydro-power. But the lender is now part of the broader conversation around energy access, including the World Bank's Mission 300 to provide electricity to 300 million Africans by 2030, which may indirectly influence nuclear financing considerations. The nuclear energy discussion has been mainstreamed in East Africa. Uganda has signed a deal with Korea Hydro and Nuclear Power Company Ltd to begin site assessment for the development phase of its programme in Buyende. The plant is billed to initially generate 1GW by 2031 and eventually scale up to 8.4GW, Energy Minister Ruth Nankabirwa said. Buyende is the first candidate for Uganda's nuclear power programme, along with sites in Nakasongola, Kiruhura and Lamwo, all expected to generate a total of 24GW – nearly half of the 52.481GW demand by 2040 – according to the country's Energy Policy of 2023 and Vision 2040.'Nuclear is no longer an option, it is a necessity,' Ms Nankabirwa said. Tanzania's Energy Minister Doto Biteko said this week that Dodoma is looking forward to using nuclear energy for development programmes.'Nuclear energy offers a promising path for Tanzania to meet growing electricity demand sustainably and cost-effectively,' Dr Biteko told the summit in Rwanda's capital. On May 24, President Samia Suluhu Hassan directed the ministry to speed up the development of uranium projects and make Tanzania energy secure.'We have the raw material. It is important to oversee our uranium project in Tunduru so that investors can start working and we can benefit from that resource,' the President said. Tanzania has a uranium development project in Ruvuma. In Kenya, the proposed nuclear plant has been moved from the Coast to the Lakeside region. Residents and local leaders have embraced the project that will be in Bondo, Siaya County. Energy Cabinet Secretary, Opiyo Wandayi and Orange Democratic Movement leader Raila Odinga have calmed residents' fears and smoothed the implementation of the project. However, nuclear projects face risks of cost overruns, delays and uncertain returns as seen in South Africa's abandoned 9,600MW expansion plan in 2018. As the landscape changes and the World Bank tests the waters, other multilateral lenders might follow suit. From the look of things, funding for nuclear power projects in Africa will continue to come from external sources, especially China, Russia or South Korea. Africa's energy poverty rate remains significant – 43 percent of the continent's population (600 million) lacks access to electricity. Additional reporting by Apolinari Tairo and Kassim Adinasi © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Business Insider
03-07-2025
- Business
- Business Insider
Kenya loses $1.5 billion annually to corruption, says AfDB
Kenya is losing up to Sh194 billion annually due to corruption, illicit financial flows, and inefficient public spending, according to a new report by the African Development Bank (AfDB). Kenya is losing up to Sh194 billion annually due to corruption, illicit financial flows, and inefficient public spending, according to the African Development Bank report. Despite challenges, the AfDB projects Kenya's economy to grow by five percent in 2025, albeit with persistent inequality concerns. Public spending inefficiencies and tax waivers are causing significant financial drain, estimated at Sh650 billion per year. The African Economic Outlook Kenya Country Focus Report, launched in Nairobi, sheds light on how mismanagement, tax exemptions, and weak oversight mechanisms are eroding Kenya's revenue base and undermining its capacity to finance critical sectors of the economy. Public spending inefficiencies and tax waivers take a toll The report estimates that inefficiencies in public expenditure cost the country approximately Sh650 billion each year, roughly five per cent of its Gross Domestic Product (GDP). Meanwhile, losses from tax incentives and exemptions are pegged at Sh105 billion annually. These persistent financial leakages are deepening Kenya's debt crisis, with the government now allocating more funds to interest payments than to essential services such as education and healthcare. 'Corruption and illicit financial flows cost the East African nation as much as $1.5 billion (Sh193.6 billion) annually, funds that could transform health, education, and infrastructure development,' the report states. State capture and weak rule of law hindering progress The AfDB highlights state capture, where political elites shape legislation and enforcement for personal or political gain, as a major obstacle to governance reforms. This undermines the legal environment, discourages both domestic and foreign investment, and creates a climate of uncertainty. 'Investors fear biased rulings, delays, and lack of transparency, increasing operational risks and deterring investment,' the report notes. 'Ultimately, the rule of law, upheld by robust law enforcement and an independent judiciary, remains the foundation for sustained economic growth, social equity, and public trust in governance.' While the AfDB estimates corruption-related losses at $1.5 billion annually, Kenya's own Ethics and Anti-Corruption Commission (EACC) places the figure much higher—at Sh608 billion or 7.8 per cent of GDP. Kenya's performance on Transparency International's Corruption Perceptions Index also remains weak. The 2024 index ranks the country 121st out of 180 countries, with a score of 32 out of 100, just one point higher than the previous year, and still below both the African (33) and global (43) averages. A five-year review shows minimal improvement, and historical data since 1996 reveals a persistent struggle with corruption, with Kenya's best ranking at 52 in 1996 and the worst at 154 in 2010. AfDB projects growth but warns of inequality Despite these challenges, the AfDB maintains a cautiously optimistic outlook, forecasting Kenya's economy to grow by five per cent in 2025, buoyed by agriculture and services. However, growth is expected to slow slightly to 4.8 per cent in 2026. 'Rising poverty, high unemployment, and growing inequality indicate that Kenya's economic growth has not been fully inclusive,' the report warns. AfDB's projections are more optimistic than those from the World Bank and the International Monetary Fund, both of which expect Kenya's growth to slow to 4.8 per cent.
IOL News
03-07-2025
- Business
- IOL News
AfDB slashes SA's growth forecast by half amid structural challenges, trade war concerns
The bank said priority actions should include enhancing governance and operational efficiency of State-Owned Enterprises, particularly of Eskom and rail, ports and pipelines operator Transnet, to restore service reliability and unlock growth. Image: Leon Lestrade/ Independent Newspapers The African Development Bank (AfDB) has drastically cut South Africa's gross domestic product (GDP) forecast for 2025 below 1%, saying that the economy continued to be weighed down by a range of structural constraints and could take a hit from Trump's trade war. In its Country Focus Report for South Africa published on Wednesday, the AfDB lowered its forecast for Africa's most-industrialised economy to a meager 0.8% this year from a previous estimate of 1.6%. This forecast by the AfDB is more pessimistic than the National Treasury's growth forecast of 1.4% for the year, which was revised down from a prior 1.9% on the back of geopolitical tensions including Trump's trade levies. It is also less than the South African Reserve Bank's latest projection of 1.2% this year amid declining mining and manufacturing output and rising unemployment, though it is expected to rise to 1.8% by 2027. S&P Global also recently lowered its 2025 GDP growth projection for South Africa to 1.1% from 1.3% previously due to weaker-than-expected GDP print for the first quarter. AfDB country economist Akhona Peter said South Africa's economy was vulnerable to external shocks particularly from the United States, its second largest export destination after China. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The Trump administration is expected to implement its hefty 31 import tariffs on a number of exporting countries next week, including South Africa, which exports a variety of minerals and commodities to the US. US President Donald Trump said on Wednesday that he was not considering delaying implementing the tariffs again after he temporarily suspended them for 90 days in April. 'This is mainly on the fact that we expect trade tensions to pretty much affect net exports negatively,' Peter said. 'Industries such as agriculture, which rely heavily on US market access, will be particularly vulnerable. In the short-term, this could slow economic activity, decrease firm profitability, and constrain job creation in export-linked industries.' The South African government is keen to ensure that the new requirements by the US do not unduly disadvantage local enterprises, hence the appeal for strategic patience from the South African industry. South Africa's proposed Framework Deal, which was submitted to the US Trade Representative in May, aims to tackle a range of US concerns including non-tariff barriers and longstanding market access issues. It seeks specific exemptions from Sections 232 duties for key export products such as automobiles, auto parts, steel, and aluminium, ensuring these critical sectors can remain competitive in the US market. Meanwhile, the AfDB recommended that the South African government should accelerate structural reforms to offset global challenges. The bank said priority actions should include enhancing governance and operational efficiency of State-Owned Enterprises, particularly of Eskom and rail, ports and pipelines operator Transnet, to restore service reliability and unlock growth. It also called for strengthening local government capacity, addressing spatial inequality, advancing digital government, promoting public-private partnerships (PPPs), and reducing wasteful expenditure through fiscal consolidation are also essential to improve service delivery and public trust. 'To accelerate domestic capital mobilization, reforms must focus on improving governance, enhancing institutional effectiveness, and fostering transparency and accountability. At the same time, promoting industrialization, deepening trade and investment, and building a competitive export base can drive higher growth and employment,' recommended the report. 'Tackling youth unemployment requires focused skills development and capacity building initiatives, aligned with labor market demands, to take full advantage of the country's human capital. 'Trade needs to be diversified under AfCFTA and into new Asian markets. Lastly, improving the business environment by cutting red tape, ensuring fair market access for Small and Medium Enterprises (SMEs), and increasing labor market flexibility will support entrepreneurship, firm growth, and job creation — essential ingredients for sustainable economic transformation.' BUSINESS REPORT
