AFRICA GROUP I CONSTITUENCY A NEWSLETTER FROM THE OFFICE OF THE EXECUTIVE DIRECTOR

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1 AFRICA GROUP I CONSTITUENCY A NEWSLETTER FROM THE OFFICE OF THE EXECUTIVE DIRECTOR V o l u m e 1, I s s u e 2 2 n d Q u a r t e r, I n s i d e t h i s i s s u e : Message from the Executive Director Feature Story - The Challenges and Opportunities of Public Private Partnerships (PPPs) in Development Eleventh Cohort of the 2015 Voice Secondment Program Ends Highlights of Selected Meetings Ugandan Minister of Health, Hon. Elioda Tumwesigye, Visits the Office of the ED Zimbabwe Private Sector Representatives visit the WBG Highlights of the Executive Director Outreach Visits to Constituency Countries Snapshot of Approved Projects (April-June, 2015) Constituency - Pipeline Projects Africa Group I Constituency List of Governors and Alternate Governors Message from the Executive Director I am pleased to share with you the Second Edition of our Newsletter for the year From the first edition to the second, time has moved very fast indeed, and also new developments have taken place in this changing world. As Mr. Peter Larose, Executive Director the year continues to unwind, we recognize that our office needs to keep our authorities up-to-date, more often, with the latest developmen ts through our Newsletter instead of waiting for the Annual Report. Besides, the Change Process, which is still on-going in the World Bank Group (WBG), the current buzzword is Financing for Development (FfD). This topic has taken center stage in our Boardroom meetings. It is primarily discussed in the context of how the Multilateral Development Banks (MDBs), other development partners and Governments will finance future developments in line with the Post-2015 Agenda. This is an era, which calls for and requires all development partners to focus on t h e i m p l e m e n t a t i o n o f a comprehensive framework to meet the proposed targets set by the United Nations (UN) for Sustainable Development Goals (SDGs). In addition to the discussions on SDGs, the framework will enable all stakeholders to lay the ground work for the Climate Change Conference scheduled to take place in Paris in December 2015 (COP21). It is expected that the 3rd Conference on Financing for Development in Addis Ababa, Federal Democratic Republic of Ethiopia in July 2015 will present a unique opportunity for all stakeholders to redefine the global trade and financial architecture for future development. It is a challenge, which will necessarily involve the c l o s e c o l l a b o r a t i o n o f a l l stakeholders. One particular aspect worth noting in the context of FfD is the focus on Domestic Resource Mobilization

2 P a g e 2 We look forward to the Conference deliberations yielding concrete and pragmatic action-oriented results (DRM) to finance long -term development. While donors will continue to support us, our countries ought to take ownership of financing our own development through domestic resources. The message from the donors community to the developing countries is very clear. In this regards, much emphasis is being made at various fora that the resource allocation should come from the public and private sectors. Admittedly, many of our countries have shown encouraging signs in DRM growth during the recent years. However, a number of challenges still remain for us to tackle. They include improving our tax collection system and managing illicit financial flows, amongst others. It is estimated that Africa loses approximately US$50 b i l l i o n p e r a n n u m t h r o u g h m i sinvoicing, t ax avoidance, remittances to offshore accounts, and natural resource exports. In view of the magnitude of the task ahead, the continued support of the MDBs, development partners and the international community for capacity building for our countries is very crucial if we are to achieve the SDGs. In this regard, we look forward to the Conference deliberations in Addis to yield concrete and pragmatic actionoriented results. In this Edition of the Newsletter our feature story briefly discusses Public- Private Partnership (PPP), providing general insights and highlighting its relevance. The thrust of this instrument is important as a mechanism and approach to augment other financing resources involving the public and private sectors. This Edition also covers news of interest, primarily to our Constituency and Africa in general. Specifically, it includes the following: Ending of the Eleventh Cohort of the 2015 Voice Secondment Program; Highlights of the 2015 IMF-World Bank Spring Meetings, the African Development Bank Annual Meetings; the visit of the Republic of Uganda s Minister of H e a l t h, H o n o r a b l e. E l i o d a Tumwesigye to the Office of the Executive Director and the Republic of Zimbabwe s Private Sector Representatives visit to WBG. In addition, it includes, the Executive Director s visits to some of the Constituency countries. As usual, a quarterly snapshot of projects approved by the WBG Executive Board together with a list of projects in the pipeline is presented. Furthermore a list of the Constituency s current Governors and Alternate Governors is inserted. In view that this year s IMF/WBG Annual Meetings will be held outside Washington DC, I look forward to see all Honorable Governors, Alternates and delegations of our Constituency countries in Lima, Peru in October. I take this opportunity to wish you all safe travel.

3 P a g e 3 Feature Story The Challenges and Opportunities of Public Private Partnerships (PPPs) in Development Introduction This partnership is even more important in developing countries, where infrastructure services and facilities are often of low quality, reliability and coverage, and are inadequate to meet demand The discussion of Financing for Development (FfD) has gained momentum with the imminent transition from the Millennium Development Goals (MDGs) to the Sustainable Development Goals (SDGs). The huge investment needs essential for the achievement of the SDGs will require funding from Official Development Assistance (ODA) as well as private and other public sources at national and global levels. The Multilateral Development Banks (MDBs) and the International Monetary Fund (IMF) have committed to promote and catalyze private investment, by providing channels to mobilize resources from non-traditional sources including pension funds, insurance companies and sovereign wealth funds. In the Post-2015 development era, the partnership between the public and private sectors is set to become more important. In the proposed framework the 12 th SDG has as one of its targets the implementation of reforms to ensure stability of the global financial system and encourage stable, longterm private foreign investment. There are ongoing discussions on strengthening channels and identifying innovative financial instruments, as well as appropriate support systems including financial institutions, policies and laws, to link the savers, who hold the billions and the investors who need them. There are as well suggestions to use the public money - ODA - to catalyze and scale up private financing for sustainable development. Further, the private sector will also be expected to participate in efforts to improve data and statistics, to help governments track progress, make evidence-based policy decisions and strengthen accountability. Over the years, the private sector has partnered with the public sector to provide infrastructure and services, in both developed and developing countries. This partnership is even more important in developing countries, where infrastructure services and facilities are often of low quality, reliability and coverage, and are inadequate to meet demand. Consequently, congestion or service rationing is becoming common, and it poses a major constraint on economic growth. 1 See From Billions to Trillions: Transforming Development Finance Post-2015 Financing for Development: Multilateral Development Finance discussed at the April 18, 2015 Development Committee Meeting.

4 P a g e 4 Some Global Generic Features of PPPs Contract: Ranges from medium- to long-term, i.e. 15 to 35 years. Public service provision: The public and private sector actors agree on the terms of the delivery of a service to the government, or to the public, including quality and quantity. Finance: The private To catch the reader's attention, finance place an component interesting sentence or quote from the story here. must be repaid by the public sector and/or users pay over the life of the contract. Responsibilities: The private sector company commits to specific deliverables that vary over the contract period, such as finance, construction and operation. These entail associated risks. Ownership: Upon completion of construction or at the end of the contract term, ownership of the asset reverts to the public sector. Source: Romero, M. J. What lies beneath? A critical assessment of PPPs and their impact on sustainable development. As an illustration of this dire situation, the World Bank estimated that Sub-Saharan Africa (SSA) needs to spend US$93 billion a year on infrastructure, of which government spending, user charges, private sector investment, and other external sources meet only US$45 billion, leaving a funding gap of US$48 billion 2. In its Strategy approved in October 2013, the WBG acknowledged the criticality of the private sector resources and expertise in the achievement of the twin goals. In recognition of this fact, the WBG committed to expand its efforts to mobilize private partners, including through IFC s new client relationship model. This article looks at the role of Public Private Partnerships (PPPs) in development, first with a description and brief history of PPPs. Second, it discusses the benefits of PPPs for the different partners, as well as the challenges and the opportunities that PPPs present. Third, it provides a summary of the WBG experience with PPPs in SSA and concludes with some thoughts on the way forward for developing countries. What are PPPs? PPPs range from informal and short-term arrangements to more complex, formal and long-term contractual arrangements, between the public and private sectors to implement specific programs or projects. While, there is no universally agreed definition of a PPP, it is generally agreed that the PPP is a medium to long-term contractual relationship between the public sector and the private sector in which the later participates in the provision of goods and services that are traditionally within the ambit off the public sector. Thus, according to the World Bank, a PPP is a long-term contract between a private party and a government agency for providing a public asset or service in which the private party bears significant risk and management responsibility. The service or asset is either new or an existing one and the private sector company receives compensation from the beneficiaries, the Government or both. PPPs cover a range of services and assets in transport including surface (roads, tunnels, bridges, and rail), airports, ports, mass transit systems; water and waste management including water treatment, distribution and sewerage systems, solid waste management; power generation and distribution; 2 The World Bank, Africa s Future and the World Bank s Support to It (March 2011)

5 P a g e 5 and social infrastructure such as education and health facilities and services, prisons, urban regeneration and housing. Benefits of PPPs PPPs present an alternative source of income for the private sector, especially when interest rates are low and the global economy is uncertain Proponents of PPPs posit that with limited financial, human, and physical resources, Governments cannot provide all the public goods and services. In addition, the bureaucracy and size of Government preclude efficient use of the scarce resources, and tend to result in the pursuit of political gain and corruption, spending on the wrong projects, poor maintenance and subsequently, increased costs and reduced benefits. In many developing countries, there is lack of the expertise that is required to execute major infrastructure projects, yet demand for reliable and quality power, water, health, telecommunications and education services far outpaces the supply. Therefore, collaboration with the private sector is key for the provision of these goods and services for accelerated development. The private sector augments the available finances and helps institute prudent management; improves planning, coordination and strong project selection; and ensures timely and within budget delivery of projects, adequate maintenance of assets, and provision of efficient services. While the private sector shares the burden of risk, the public sector often backs the PPP with a guarantee. PPPs present an alternative source of income for the private sector, especially when interest rates are low and the global economy is uncertain. Challenges and opportunities of PPPs The opportunities and benefits of collaborating with the private sector notwithstanding, implementation of PPPs often faces challenges and as a result, evidence on PPP performance remains mixed. For example, some Private Finance Initiative (PFI) projects in the UK have delivered cost savings, improved completion time and cost of delivery, and better services. However, PFI projects have tended to be unsuitable for specialized IT. In France on the other hand, PPPs have resulted in higher water prices than traditional procurement. Further, in Central and Eastern Europe, PPPs have been less successful than in other countries due to high transaction costs and unrealistic demand expectations. In Latin American and Caribbean (LAC) countries, Government s failure to enforce contracts, as well as adverse institutional conditions have led to the abandonment of projects. 3 See Public-Private Partnerships Version 1.0 Reference Guide from wbi.worldbank.org.

6 P a g e 6 The Eurodad 5 analyzed PPPs using four factors; (i) budgetary affordability, (ii) efficient service delivery, (iii) impact on poverty reduction, and (iv) requisite project management framework. The Report noted that PPPs significantly increase the cost of services and ultimately leave the public sector with contingent liabilities such as those arising from risks incurred by the private sector and due to consumer expectations. The perceived risk in developing countries tends to lead to higher costs as the private sector returns tend to be higher than in more developed countries. Moreover, negotiations for PPPs are often not transparent and competitive leaving Governments with higher financial risks for the future. The perceived risk in developing countries tends to lead to higher costs as the private sector returns tend to be higher than in more developed countries Evidence on efficiency gains varies across sectors, country contexts and types of project. In addition, risk sharing is often uneven, and Governments end up guaranteeing the private sector against losses related to demand, political and regulatory risks. Similarly, the impact of PPPs on poverty and inequality is not clear. Often users might not afford the fee or charge for using the service. Due to limited budgets, higher public spending related to PPPs leads to cuts elsewhere, thus depriving citizens of those services. Project selection might not reflect country priorities when profitability for the private sector is the main consideration, leaving out needs such as job creation. Overall, project management capacity in due diligence, regulation, negotiation, implementation, and monitoring in most developing countries is weak relative to what is required, hence limiting the successful implementation of PPPs. Related to this, is the lack of transparency surrounding negotiations, often due to secrecy obligations and lack of consultation with stakeholders. The challenges associated with PPPs show that they might not solve all problems. Therefore, there is need for engaging in well negotiated contracts, flexibility where possible and complementary measures including increased fiscal resources for infrastructure, better decision-making by the public sector, and improved regulation and governance. World Bank Group PPP experience in Sub-Saharan Africa (SSA) The WBG has been a major partner of the developing countries in the development of PPPs. This partnership will become even more important in the future with the increased focus on PPPs and the necessity to provide infrastructure especially in SSA. 4 Iossa, E. and David Martimort, The Simple Microeconomics of Public-Private Partnerships. Journal of Public Economic Theory 17 (1), 2015, pp 4-48.

7 P a g e 7 The Independent Evaluation Group (IEG) review of IFC Investment and Advisory Services in Sub-Saharan Africa, acknowledged the benefit of effective government and high quality regulatory frameworks in the successful implementation of PPPs. The Report also noted that WBG upstream activities such as sector reform, capacity building and building consensus for PPPs, support to the legal and regulatory framework in which PPPs operate were important for downstream success. The Report further observed that Africa PPPs yielded victories, setbacks and turnarounds, with better results compared to the rest of the portfolio. The results of the analysis showed that while PPPs broadly delivered infrastructure, there was no concrete evidence that the quality of life improved or that poverty declined. The goals to end extreme poverty and promote shared prosperity in a sustainable manner should be at the forefront of all decisions Conclusion This article has attempted to examine PPPs as a source of funding for economic development. The challenges associated with the use of PPPs for development notwithstanding, the developing countries and their development partners should maximize the benefits. There will be need to consult the citizens as users of the services and consumers of the goods in the planning stages for ownership, and consideration of their concerns. This is often the missing link. In addition, development partners such as the WBG should provide technical assistance such as the development of requisite human capacity, as well as support for the development of legal and regulatory frameworks so that countries can successfully negotiate contracts and properly account for the PPPs. Governments should focus on value-for-money, transparency and accountability, as well as governance throughout the project life cycle. This is particularly important for the assessment of the impact on poverty. The goals to end extreme poverty and promote shared prosperity in a sustainable manner should be at the forefront of all decisions. 6 IEG, Transforming Africa Through Public Private Partnerships: IEG Cluster Review of IFC Investment and Advisory Services in Sub-Saharan Africa

8 P a g e 8 Eleventh Cohort of the 2015 Voice Secondment Program Ends The three participants of the Voice Secondment Program (VSP), 11th Cohort, from our Constituency successfully completed their assignments with the World Bank in June As part of the assignments and in addition to a customized work program as well as orientation and operational training, the Secondees spent a week working in our Constituency s ED s Office, at the beginning and towards the end of their assignments. During that time, the Secondees attended Board Meetings and technical briefings. The Advisors in the ED s Office held discussions with them on a wide range of topics including the Middle-Income Country (MIC) Agenda, the Fragile and Conflict-Affected States (FCS), the Post Development Agenda, Illicit Financial Flows (IFF), and the Role and Activities of the African Caucus. A summary of their bios, assignments, and perspectives about the program is provided below. Ebrima Darboe The Gambia Said Nyenge Tanzania Mr. Ebrima Darboe, is the Director, Loans and Debt, Management Directorate, Ministry of Finance and Economic Affairs in the Republic of the Gambia. He worked with the Integrity Vice Presidency (INT), where he contributed to the Final Investigatory Reports of INT External Investigators Reports (FIR) on alleged corruptions, fraud, collusions, false representation and bribery in World Bank funded projects. Mr. Darboe also worked with the Bank s Treasury Government Debt and Risk Management Advisory Unit (FABDM). While in this unit, he was involved in the World Bank Debt Management Office review of the Gambia Medium Term Debt Management Strategy. Mr. Said Nyenge, is an Economist, World Bank Desk, Ministry of Finance and Economic Affairs, in the United Republic of Tanzania. He worked in the Finance and Markets Department of the Finance and Markets Global Practice, where he contributed to the work on the Fragile, Conflict and Violence (FCV) Agenda and on the Pitch Book. The Pitch Book is a business engagement tool tailored to facilitate better understanding of the sequencing and impact of the Global Practice (GP) interventions, with the objective to customize its products and coordinate better with other GPs and development partners. This is key for success in the FCV context, given the projections, which indicate that by 2030 approximately two thirds of the poor population will live in FCV countries.

9 P a g e 9 Crane Muleya Zambia Mr. Crane Muleya, is the Director, Monitoring and Evaluation Department, Ministry of Finance, in the Republic of Zambia. Mr. Muleya worked in the Urban, Rural & Social Development Department, Global Partnership on Output Based Aid (GPOBA). He contributed to the GPOBA Energy Sector Study, which evaluates the impact of GPOBA subsidy schemes to draw lessons and inform the scale-up and replication of Output Based Aid (OBA) approaches. These lessons will offer insight to successes and failures of project design and implementation as well as provide solutions to more complex projects, and/or, less tested environment. He also assisted with finalizing documentation for the GPOBA Zambia Electricity Access Project. At the closing event hosted by the Office of the ED, each participant expressed his gratitude for the opportunity to be a part of the Eleventh Cohort of the 2015 Voice Secondment Program. They noted, in general, that the Program was useful and rewarding. The ED congratulated them for their good performance and reiterated the expectation that their experience gained would be beneficial to them, their individual offices and the Office of the ED.

10 P a g e 10 Highlights of Selected Meetings WBG/IMF 2015 Spring Meetings The World Bank Group (WBG) and the International Monetary Fund (IMF) held their joint 2015 Spring Meetings from April 17 April 19 in Washington DC. As usual these Meetings and the Annual Meetings discuss the progress, evolving activities and challenges of the two institutions. The Meetings also feature development oriented s e m i n a r s i n c l u d i n g situations in the global financial markets and related matters as side events. Highlights of this year Spring Meetings are generally reflected in the Development Committee Communiqué. Specific issues raised by the Africa Group One Constituency (EDS14) are highlighted in the DC Member Statement, which was presented by the Republic of Uganda Minister of Finance, Planning and Economic Development. Both documents are provided on the following pages, 11 to 20. Honorable Matia Kasaija The seminars held included the following: (a) the Power of Faith to Help End Extreme Poverty; (b) the Future of Food: A Conversation with Dr. Jim Yong Kim and David Chang; (c) the Duality of Falling Oil Prices: Boom or Bust; (d) Water Security for All in a World of Scarcity; (e) Ebola: The Road to Recovery; (f) Universal Financial Access 2020; (g) A Conversation on the Global Economy; (h) The Why, Where and How of Infrastructure Investment; (i) Financing for Development: The Way Forward; (j) Falling Commodity Prices: What it Means for Emerging Markets; and (k) the Political Economy of High Debt; amongst others.

11 P a g e 11 DEVELOPMENT COMMITTEE (Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund On the Transfer of Real Resources to Developing Countries) NINETY-FIRST MEETING WASHINGTON, D.C. APRIL 18, 2015 Many of our countries are still facing a number of challenges, including high unemployment, shortage of energy, food insecurity, climate change, lack of access to trade opportunities, and recently, low prices for oil and non-oil commodities Statement by Hon. Matia Kasaija Minister of Finance, Planning and Economic Development 1. Introduction Uganda 91st Meeting of the Development Committee April 18, 2015 Washington, D.C. For Africa Group 1 Constituency DC/S/ April 18, 2015 Sub-Saharan Africa (SSA) has continued to show impressive growth rates, though well below rates necessary to effectively reduce poverty and address income inequalities in the countries. Many of our countries are still facing a number of challenges, including high unemployment, shortage of energy, food insecurity, climate change, lack of access to trade opportunities, and recently, low prices for oil and non-oil commodities. All these factors add to our existing development challenges, which translate into poverty. To attain necessary growth rates and improve livelihoods, our countries continue to focus on economic transformation to tap into their natural and human resources potential and comparative advantages in various sectors, including agriculture and energy. Against this backdrop, we cannot overemphasize the value we place on building stronger collaboration with our development partners to attract quality long-term investments with a view to modernize our economic structures, and boost real GDP growth rates in our countries.

12 P a g e Development Financing and the Post-2015 Development Agenda We welcome the Development Committee (DC) paper on the Post-2015 Financing for Development. Indeed, the focus of the Multilateral Development Banks (MDBs) and the International Monetary Fund (IMF) on partnering with developing countries to move beyond the traditional financing framework is a welcome paradigm shift to unlock resources needed to achieve the Sustainable Development Goals (SDGs). we call on development partners to deliver on their ODA commitments in support of sustainable development in developing countries This partnership is very important for Africa - a continent that has a large financing gap to support its current economic growth and fund its transformation. In the face of limited Official Development Assistance (ODA) flows, we reiterate our call for flexibility in the MDBs and IMF financing and lending policies. Specifically, for the World Bank Group (WBG), we urge that actions be taken to increase access to IBRD enclave lending to our countries. We also call on WBG to exploit its Balance Sheet to extend IBRD lending to performing IDA-only countries and leverage the equity on IDA s Balance Sheet to scale up support to all IDA clients. In the same vein, while recognizing the need to maintain debt sustainability, we call for flexibility in the debt limits and in the WBG s non-concessional borrowing policy. Relatedly, we call on development partners to deliver on their ODA commitments in support of sustainable development in developing countries. We cannot overemphasize the need for expanding access by our countries to available resources as well as for the establishment of instruments and mechanisms that would help our countries build resilience to adverse shocks, including for social protection. In this regard, climate-related financing must be protected from any associated conditionality. The current debate on resource mobilization also seems to be overlooking the full extent of the problem of illicit financial flows, which constitute a major leakage of vital resources and untapped source of funding for our countries. The estimated annual loss of over $50 billion by Africa in illicit financial flows, as reported in the recent Mbeki Report, should receive urgent global attention and concerted actions especially in the context of the Continent s dire poverty indicators and glaring financing gaps. The Mbeki Report makes clear recommendations on the role institutions such as the WBG can play in this matter. We find merit in the recommendations for multilateral institutions to bring their global knowledge on tax transparency and expertise in building national capacities to monitor and curb tax base erosion. Therefore, as we focus on domestic resource mobilization, we call on the Management of Multilateral Development Institutions, especially the WBG, to take the lead in global efforts to reversing and curbing these flows which are depriving our countries of much needed resources to end poverty.

13 P a g e Implications of Declining Oil and Other Commodities Prices we call upon the WBG and other development partners to step up engagements with these countries (oil producing countries facing major internal challenges) to facilitate their efforts in adjusting to the evolving dynamics of the oil market During the past year, we have witnessed an unprecedented drop in the prices of oil, as well as those of some minerals. Non-mineral prices, especially for agriculture commodities have, however, remained strong though prospects of the prices remaining high could be undermined by falling incomes, particularly in countries that have experienced a negative price shock in key export commodities. Regarding the low oil prices, we remain cautiously optimistic about their long term impact on our economies, given also the decline in major primary commodity prices. That notwithstanding, we are concerned about the impact of the drop in oil prices on our oil-producing countries, as they are likely to experience a huge deterioration in their fiscal and external accounts. The latter affects the delivery of urgently needed economic and social services in countries still facing internal challenges, such as Sudan and South Sudan, which entirely depend on oil revenue to meet their fiscal commitments. This development has also the potential to reverse gains realized so far in some of our countries that are struggling to emerge from conflict. In this regard, we call upon the WBG and other development partners to step up engagements with these countries to facilitate their efforts in adjusting to the evolving dynamics of the oil market. We strongly urge the WBG to assist South Sudan and Sudan to diversify their economies away from oil, partly through budgetary support and investments in their private sector, whereby IFC and MIGA can play an important role. 4. World Bank Support to Health and Other Emergencies and Risks We appreciate the WBG response to the Ebola crisis in Guinea, Liberia and Sierra Leone. With the unprecedented scale of the outbreak in these countries, the relatively weak national health systems and the unpreparedness of the international community, the disease has had a devastating impact on human lives and their economies. While progress has been made in combatting the disease, the general situation offers lessons for the international community and national authorities. Efforts to combat the disease must be sustained in order to avoid a recurrent outbreak. Enhancing the preparedness of developing countries and the international community deal with future pandemics must be strengthened for a much more effective, efficient and timely response. We concur with the evolving consensus that success in such endeavors critically depends on the availability of robust health systems in our countries and adequate financing.

14 P a g e 14 we reiterate that it is imperative to simplify and streamline internal processes and procedures to ensure quicker and efficient flow of human and financial resources We, therefore, welcome the WBGs commitment to invest in strengthening public health capacities throughout the developing world by continuing to frontload IDA/ IBRD and Trust Funds resources, as well as develop new instruments with private sector participation. We also note that the WBG has initiated the articulation of a Pandemic Emergency Facility (PEF), with the capacity and design to disburse funds speedily to countries and other entities to carry out critical and timely response functions to the outbreak of pandemics in the future. We urge the WBG to fast track the setting up of the PEF. In this regard, and more specifically, we call on the WBG for the actualization of the Marshall Plan, which the affected countries need to complete the recovery from the crisis as well as for their economic development. More generally, the WBG needs to allocate more resources, enhance and fast-track support to help our countries manage natural risks, including drought and flood, as well as to ensure food security. In the same vein, we call on the WBG to strengthen its partnership with the relevant UN agencies to help overcome security challenges that some of our countries are confronted with at the moment. 5. The World Bank Group Change Process We take note of the progress on the WBG Change Process. We also note that the Bank s new model of engagement with client countries through Country Partnership Framework (CPF) and Systematic Country Diagnostics (SCD) is taking shape. The Global Practices (GPs) are in place and the Monitoring and Evaluation Framework (MEF) has been finalized. Mindful that it may take some time for these structures to be operational to their full potential, we reiterate our expectation for the Change Process to deliver in terms of shortening the project cycle. We also expect the Process to strengthen decentralization so as to empower managers and staff in the field to become more efficient and flexible in terms of service delivery. Moreover, we urge the WBG to prioritize the implementation of regional projects that would promote regional integration and help our countries pool resources towards promoting development and shared prosperity. We understand that the Expenditure Review (ER) and the New Budget Framework (NBF) are aimed at strengthening WBG s financial capacity and improving resource utilization across the institution. Notwithstanding this, we reiterate that it is imperative to simplify and streamline internal processes and procedures to ensure quicker and efficient flow of human and financial resources. As we proceed with the discussions on 2015 voice reforms in the WBG, we continue to call for principles and processes that would lead to a balanced outcome which does not dilute the gains of the 2010 reforms, especially with regard to the voice and representation of small, poor and underrepresented member countries

15 P a g e Other Recurring Development Issues We also welcome the commitment expressed by the President to raise the share of African managers in the WBG and the specific timeline within which the WBG intends to meet the set targets Diversity and Inclusion: We are encouraged by President Kim s positive response to our call in the 2014 Memorandum of African Governors to the President of the WBG for concrete measures to achieve the set diversity targets for SSA nationals at all levels in the institution. We also welcome the commitment expressed by the President to raise the share of African managers in the WBG and the specific timeline within which the WBG intends to meet the set targets. Similarly, we note the additional measures the WBG is taking to identify and recruit staff from SSA through the Fellowship Program (FP) targeted at talented Africans and the efforts to diversify the pool of candidates for the Young Professional Program (YPP) and the Youth Recruitment Programs (YRP). We look forward to tangible targets and results being delivered going forward. Support to Africa s Middle Income Countries (MICs) and Small Island Developing States (SIDS): Middle Income countries in SSA continue to face major development challenges, including high levels of poverty, poor social standards, especially in education and health sectors. While we recognize the WBG s interventions in some of the African MICs, we would like to, once again, call on the WBG to come up with a clear strategy tailored for long-term solutions to address the challenges these countries are facing. Similarly, we welcome the WBG s Small Island States Resilience Initiative, and look forward to the effective implementation of this initiative. Relatedly, we note the call on the WBG made at the Small States Forum 2014, to leverage climate change funds more effectively for sustainable development. Debt Relief: We are greatly concerned about the continued delays and indecision by the development community to complete the debt resolution process for heavily indebted countries namely, Eritrea, Somalia, Sudan, and Zimbabwe. It is the right thing to do, and a matter of fairness, not to leave any country behind as we all strive towards the achievement of the WBG s twin goals. We thus call on the Bank to urgently champion the debt relief initiative for these countries using the provision set aside in IDA 17 Replenishment. Indeed, we strongly believe that action should be taken now in favor of full debt cancellation, including for the recently Ebola-affected countries to enable them use freed-up resources for supporting their development efforts.

16 P a g e 16 We, however, cannot overemphasize the need to recognize the heterogeneity among the WBG s member countries, with the view to avoiding unintended negative consequences if the policy is applied in a one -size-fits all approach WBG s Environmental and Social Safeguards Policies: We recognize and agree with the objective of the WBG s safeguard policy, which is to protect people and the environment, and welcome the consultative process in the review of the Environmental and Social Safeguards Policy. We, however, cannot overemphasize the need to recognize the heterogeneity among the WBG s member countries, with the view to avoiding unintended negative consequences if the policy is applied in a one-size-fits all approach. In particular, we expect that our countries distinct values and cultures as well as national Constitutions be respected. In this regard, we urge the WBG to give due consideration to the views and opinions expressed by our countries on the issue of Indigenous Peoples. 7. Conclusion Africa needs sustainable development financing, to fund its development strategies which define the aspirations of our people in the 21st century. In this context, we, as African policymakers, reaffirm our commitment to strengthen our efforts on domestic resource mobilization, including reversing illicit financial flows and in leveraging private capital, as a means to complement ODA, and with the aim to diversify the sources of our development finance. We reiterate our resolve to continue to coordinate our efforts and engage with different development partners, and call on the WBG to spearhead efforts in finding innovative instruments to finance our development initiatives.

17 P a g e 17 DEEVELOPMENT COMMITTEE JOINT MINISTERIAL COMMITTEE OF THE BOARDS OF GOVERNORS OF THE BANK AND THE FUND ON THE TRANSFER OF REAL RESOURCES TO DEVELOPING COUNTRIES We urge the WBG and the IMF to help countries hit hard by falling export receipts, tax revenues, or remittances, and to advise on energy pricing and the use of clean energy 1818 H Street, N.W., Washington, D.C Telephone: (202) Fax: (202) Washington, DC April 18, The Development Committee met today, April 18, in Washington, D.C. 2. The global economy is growing slightly faster than in 2014, although growth rates vary widely among countries. We remain vigilant to the risks from potential financial market volatility, movements in exchange rates and oil and other commodity prices, and sluggish global trade. While some middle-income countries (MICs) are experiencing easing of growth, low-income countries, as a group, continue to record good growth rates. We call on the World Bank Group (WBG) and the International Monetary Fund (IMF) to support countries efforts to spur inclusive growth and job creation and build resilience to adverse shocks, in order to reduce poverty, and enhance shared prosperity in a sustainable manner, and protect hard-won gains in these areas. 3. In aggregate, cheaper oil and commodities will result in a significant real income shift from oil exporters to oil importers, with a net positive effect on growth in developing countries. This creates challenges for policy makers in oil exporting countries, but also provides a favorable environment for subsidy and tax reforms for more inclusive and sustainable growth. We urge the WBG and the IMF to help countries hit hard by falling export receipts, tax revenues, or remittances, and to advise on energy pricing and the use of clean energy. 4. In this critical year, the international community will set the development vision and agenda for the next 15 years. We look forward to the Third Conference on Financing for Development in Addis Ababa in July, as one of the key steps in determining the framework for financing the Post-2015 development agenda, including the Sustainable Development Goals (SDGs). We commend the WBG, the IMF and the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, European Investment Bank and Inter-American Development Bank for their close cooperation on this agenda.

18 P a g e 18 We also welcome the special participation of the Secretary-General and high level officials of the United Nations, and the Heads of the Multilateral Development Banks at this Development Committee meeting. We encourage the WBG to ensure the technical robustness of the goals and targets and to strengthen countries data capacity, to enable development and to monitor progress towards the WBG s goals and the SDGs. We commend the IMF for its support to Ebola-affected countries and for creating the Catastrophe Containment and Relief Trust 5. The WBG s goals of ending extreme poverty and boosting shared prosperity, set in the broader context of social, economic and environmental sustainability, are fully in line with the SDGs. Achieving the SDGs requires a transformational vision that builds on lessons from the MDGs and combines all potential sources of financing, including more effective and catalytic use of ODA, particularly for the poorest; strengthening domestic resource mobilization, sound public financial management, and addressing the challenge of illicit 2 finance; promoting private finance and investment; and coordinating action on global issues. We expect the WBG and the IMF to continue to work in partnership with governments, the UN, multilateral institutions, bilateral agencies, civil society and the private sector, as well as with the new development institutions, within their respective mandates. 6. We welcome efforts to deepen local financial markets and improve the policy and regulatory environments to address risk, and catalyze investment from traditional and non-traditional, institutional and other public and private investment sources and the development of innovative solutions to global challenges. IFC and MIGA have a distinct and critical role in engaging the private sector to implement this ambitious agenda. 7. We urge the WBG to enhance its support for sustainable infrastructure development and financing, an enabling environment to mobilize private longterm finance for commercially-viable projects, and strengthening public and private partnerships, including through the recently approved Global Infrastructure Facility (GIF). 8. IDA and IFC s rapid response, in coordination with other partners, was critical to contain and mitigate the Ebola outbreak and we encourage the WBG to continue to support the affected countries in the recovery. Looking ahead, we encourage the WBG to explore, in coordination with other international actors, the potential of a Pandemic Financing Facility to mobilize and leverage public and private resources, including insurance mechanisms, to help countries receive rapid funding in the face of an outbreak based on strong preparedness plans. We commend the IMF for its support to Ebola-affected countries and for creating the Catastrophe Containment and Relief Trust. We welcome the approach of the Global Financing Facility in Support of Every Woman Every Child to be launched in Addis Ababa. We also note the importance of addressing hunger and malnutrition.

19 P a g e Enhancing and accelerating gender equality is central to a comprehensive vision of sustainable development. We look forward to the renewed gender strategy later this year and its implementation in the context of the one WBG approach. 10. Achieving the SDGs will also require countries to deal with the challenges and consequences of climate change and natural disasters. We commend the WBG commitment to mainstream low-carbon development and Disaster Risk Management while maintaining focus on its poverty eradication mandate. We encourage the WBG to further enhance its efforts and financing to contribute to the success of the 21st Conference of the Parties of the UNFCCC in Paris. We take note of the WBG and IMF work on appropriate market-based solutions and energy policy reforms. Achieving the SDGs will also require countries to deal with the challenges and consequences of climate change and natural disasters 11. We encourage the WBG to continue to implement its new strategy and complete the associated reforms, including the Expenditure Review, in order to effectively deliver knowledge and financing to its clients. We also welcome the ongoing consultations on the proposed World Bank Environmental and Social Framework and the new Procurement Framework. We emphasize the importance of effectively implementing the new frameworks with sufficient resources, building country capacity, and protecting communities and the environment. 12. We ask the WBG to continue to monitor carefully the quality of its portfolio, to strengthen collaboration across the Group focusing on development results, to promote South-South cooperation and to provide effective support to fragile situations, small states, and regional cooperation. We emphasize the importance of the WBG and IMF in providing significant support, where feasible, for countries in turmoil in the Middle East and North Africa and in other regions. We also urge the WBG to enhance its engagement with MICs to help them end extreme poverty and boost shared prosperity in a sustainable manner. We look forward to the exploration of different options to generate additional IDA financing capacity, while focusing on the poorest countries. 13. We take note of the progress made by the Board so far on the 2015 Shareholding Review. We attach great importance to these regular reviews,1 in line with agreed principles. We look forward to further work by the Board on the 2015 Review and commit to its completion by the time of the Annual Meetings in October. 14. The next meeting of the Development Committee is scheduled for October 10, 2015 in Lima, Peru. 1In 2010 Governors agreed to conduct periodic IBRD and IFC Shareholding Reviews, every five years, beginning in 2015, noting that: In each review, the Board of Governors would review the weight of all members in the world economy; review contributions to the WBG development mission; and assess progress towards equitable voting power between developed and developing members. While reviews would take place regularly, shareholding realignment would not necessarily be required with each review, but only when shareholders, through the Board

20 P a g e 20 The next meeting of the Development Committee is scheduled for October 10, 2015 in Lima, Peru

21 P a g e 21 African Development Bank 2015 Annual Meetings The Executive Director (ED) Mr. Louis René Peter Larose attended the African Development Bank (AfDB) Annual Meetings May 2015 in Abidjan, Republic of Cote d Ivoire. He was accompanied by the Alternate Executive Director (AED), Mr. Andrew Bvumbe, Senior Advisor, Mr. Anthony Barclay, and Advisor, Mr. Allan Ncube. The theme of the Meetings was Africa and the New Global Landscape The theme of the Meetings was Africa and the New Global Landscape. The Meetings also commemorated the Fiftieth (50th) Anniversary of the AfDB and marked the second year of the implementation of AfDB s Ten Year Strategy. Elections were also held to elect the next President, who would be succeeding the outgoing President, Dr. Donald Kaberuka from the Republic of Rwanda. Regarding the elections results, Dr. Akinwumi Adesina, Nigeria's Minister of Agriculture and Rural Development, won the elections. He is now the 8th President of the AfDB. On other developments, Finance Minister of the Republic of Zambia, Honorable Alexander Chikwanda assumed the chairperson of the AfDB Board of Governors for the period In addition, the Republic of Zambia was confirmed as the host of the 2016 Annual Meeting of the AfDB to be held in Lusaka in May, According to an official report, there were about 4520 participants at the Meetings. They included Finance and Economy Ministers representing 54 regional members and 26 officials representing non-regional members. There were also high level dignitaries including Presidents, H. E. Alassane Ouattara of the Republic of Côte d Ivoire, H. E. Ellen Johnson Sirleaf of the Republic of Liberia, H. E. Mahamadou Issoufou of the Republic of Niger, H. E. Filipe Nyusi of the Republic of Mozambique, and H. E. Ali Bongo Ondimba of the Republic of Gabon. Representatives of multilateral finance and development institutions, non-governmental and civil society organizations and chief executives of private-sector establishments also attended. The media, individual development experts, researchers, technicians and many others also participated. Besides the formal meetings of the AfDB s Board of Governors and related meetings, including the presentation and discussion of the Flagship Report African Economic Outlook, 2015, there were a series of high-level seminars relevant to the socio-economic development of Africa. The ED, Mr. Larose, and his team individually and as a group participated in a number of these seminars.

22 P a g e 22 The seminars including relevant side events were as follows: (i) the Ebola epidemic in the Mano River Union member countries; (ii) the launching of the Joint AfDB and the World Bank Group s support for Post Ebola Recovery; (iii) general challenges in the Health Sector; (iv) financing Africa s development Post-2015; (v) climate change reforms; and (vi) enhancing Africa s investment climate. In general, these events provided thought-provoking insights on critical development issues and opportunities for engagement with other participants and professional networking. For side meetings directly related to matters of our Constituency, the ED and Mr. Allan Ncube met with Honorable Berhane Habtemariam, the Minister of Finance and World Bank Governor for the State of Eritrea. Their discussions focused on improving Eritrea s relationship with the World Bank Group and the clearance of its outstanding arrears amounting to about $39 million. The Governor indicated Eritrea s willingness to reengage with the WBG with a view to clearing the arrears and enhancing the partnership. The ED and the Governor also agreed to meet in Eritrea at a time to be mutually agreed in the future. The ED held another side meeting with Honorable Partick Chinamasa, the Minister of Finance and Economic Development and World Bank Governor for the Republic of Zimbabwe. The meeting was a wrap up of the ED s visit to the Republic of Zimbabwe in May The ED thanked the Governor for inviting him to visit the Republic of Zimbabwe and highlighted the challenges and opportunities he had observed during that visit. He commended the Government of the Republic of Zimbabwe for taking positive steps to reengage with the International Financial Institutions (IFIs) and to tackle the issue of outstanding arrears.

23 P a g e 23 Ugandan Minister of Health, Honorable Elioda Tumwesigye Visits the Office of the ED The overall goal of this program (Support of Every Woman Every Child) is to contribute to ending preventable maternal, newborn, child and adolescent deaths by 2030 Honorable Elioda Tumwesigye, Minister of Health for the Republic of Uganda, accompanied by Her Excellency, Ms. Oliver Wonekha, Ambassador of the Republic of Uganda to the USA, paid a courtesy call on the ED, Mr. Louis René Peter Larose, on June 16, The ED and the Minister discussed several matters relating to WBG support including the health sector of the Republic of Uganda. The Minister appreciated the initiation of the Results Based Project for maternal health and looked forward to continued support from WBG specifically for this sector. He informed the ED that the Government of the Republic of Uganda was considering applying for funding from the Global Financing Facility (GFF) in Support of Every Woman Every Child program. The overall goal of this program is to contribute to ending preventable maternal, newborn, child and adolescent deaths by 2030, and to improve the health and quality of life of women, adolescents and children. It was noted that the next round of recipient countries would be announced during the launch of the GFF at the margins of the Third International Conference on Financing for Development in Addis Ababa, the Federal Democratic Republic of Ethiopia during July 13-16, The Minister, Hon. Elioda Tumwesigye and Her Excellency, Ms. Oliver Wonekha with ED Larose and AED Bvumbe.

24 P a g e 24 This was evidenced by IFC s willingness to engage in preparatory technical work in the Republic of Zimbabwe, while awaiting the resolution of the issue of debt and the clearance of outstanding arrears with IFIs Zimbabwe Private Sector Representatives Visit the WBG Representatives of the Republic of Zimbabwe Private Sector visited the United States on a trade mission to consult with the US Government and WBG. Their consultations focused on normalizing trade relations with the US and promoting Zimbabwe s investment opportunities. The discussions also included a briefing on the challenges facing the economy. Prior to meeting with WBG officials, the private sector representatives met with the Deputy Director, Office of African Nations, in the US Treasury Department, Mr. Patrick Stuart. Their discussion focused on ways and means of addressing the lingering challenges for the normalization of relations. Meetings with WBG officials were very cordial. In particular, IFC sounded positive on many fronts. This was evidenced by IFC s willingness to engage in preparatory technical work in the Republic of Zimbabwe, while awaiting the resolution of the issue of debt and the clearance of outstanding arrears with IFIs. Apart from IFC, the delegation met with MIGA s senior management and the Africa region representatives. The delegation apprised the Bank Group s officials on progress with reforms to boost socio-economic development and revitalize the private sector as an effective partner in the process. The delegation also paid a courtesy call on the Executive Director during the course of their visit. The ED articulated the Office s initiatives to help the Constituency countries, including the Republic of Zimbabwe, with special needs and to meet other related challenges. He informed the delegation that he expects the forthcoming IMF/WBG Annual Meetings in Lima, Peru in October 2015 to be a defining moment for the Republic of Zimbabwe as arrangements are being made to hold a round-table meeting with other MDBs and development partners to discuss various options to clear arrears with IFIs. Zimbabwe Trade Delegation with the ED Larose, AED Bvumbe and Advisor, Allan Ncube

25 P a g e 25 Picture 1: ED with the Governor for Swaziland at the World Bank H.R.H. Hlangusemphi Dlamini Picture 2: ED with the PS, Ministry of Health, Dr. Simon M. Zwane Picture 3: ED with the Governor of the Central Bank of Swaziland, Mr. Majozi V. Sithole Highlights of the Executive Director Outreach Visits to Constituency Countries The Executive Director (ED), Mr. Louis René Peter Larose made official visits to the Kingdom of Swaziland, the Kingdom of Lesotho, the Republic of Namibia and the Republic of Zimbabwe during the period May 11 19, These visits were the continuation of his outreach activities to members of the Constituency. The main purpose of the visits was to consult with the authorities on key development issues facing the countries and to explore ways and means through which engagement and cooperation with the World Bank Group could be strengthened. Highlights of the visits are provided below. Kingdom of Swaziland (May 11-12, 2015) On the ED s visit to the Kingdom of Swaziland, May 11-12, the Senior Advisor for Swaziland, Ms. Solome Lumala accompanied him. The ED held discussions with H.R.H. Hlangusemphi Dlamini, the World Bank Group Governor and Minister of Economic Planning and Development; Hon. Martin G. Dlamini, Minister of Finance; Mr. Majozi V. Sithole, the Governor of the Central Bank of Swaziland; Dr. Simon M. Zwane, Principal Secretary, Ministry of Health; and other senior Government Officials. He also met the representatives of the private sector, Ms. Bonisiwe L. Ntando, CEO; and Mr. Themba Dlamini, Director for Trade and Commerce at the Federation of Swaziland Employers and Chamber of Commerce. Picture 4: A light moment with the Minister of Finance, Hon. Martin G. Dlamini Picture 5: Meeting the Management of the Federation of Swaziland Employers and Chamber of Commerce Picture 4 Picture 1 Picture 2 Picture 3 Picture 5

26 P a g e 26 The discussions centered on the challenges faced by the country including the slow growth and lingering effects of the financial crisis, intermittent drought, lack of sufficient power supply and the volatility and heavy reliance of the economy on Southern African Customs Union (SACU) receipts. The authorities observed that these challenges would slow down the progress towards realization of the dream, through which the Kingdom of Swaziland aspired to become a First World nation by the year The thrust of this vision is to ensure that all Swazis have access to all basic services by The authorities called for support from WBG for capacity building in Public Private Partnerships (PPPs) projects. They also advocated for a strong partnership with IFC and MIGA to support private sector development. Picture 1: At Mbabane Hospital Maternity Ward Picture 2 & 3: Urban infrastructure: including roads and community market projects Representing the private sector, the CEO and the Director of Trade at the Federation of Swaziland Employers and Chamber of Commerce (FSE&CC), informed the ED that while the macroeconomic environment was conducive for business, there were challenges. He outlined the challenges as the high cost of doing business, intermittent power supply, underdeveloped ICT, and slow settlement of commercial cases before the Courts, amongst others. The ED visited two WBG-supported projects. At the Mbabane Government Hospital, management and construction engineers took the ED around the Maternity Ward. This ward is under renovation and expansion with the support of WBG financing. The work commenced in November 2014 and is on schedule to be completed in November The Project Manager for the Local Government Project under the Ministry of Housing and Urban Development, Mr. Thulasizwe Dlamini, led the ED to visit various national projects. The aim of these projects is to assist the Kingdom of Swaziland to develop its institutions, strengthened local governments capacity and develop urban infrastructure including roads. The pictures below show the ED with authorities. Picture 1 Picture 2 Picture 3

27 P a g e 27 Kingdom of Lesotho (May 14-15, 2015) Picture 1: ED with Honorable Mothetjoa Metsing, Deputy Prime Minister of the Kingdom of Lesotho In the Kingdom of Lesotho, May 14-15, Mr. Antonio Fernando, Advisor for Lesotho, accompanied the ED on this mission. The ED held meetings with WBG Governor for the Kingdom of Lesotho and Minister of Development Planning, Honorable Francis Mokoto Hloaele and the First Deputy Governor of the Lesotho Central Bank, Dr. Masilo Philemon Makhetha. The ED also paid a courtesy call on Honorable Mothetjoa Metsing, Deputy Prime Minister of the Kingdom of Lesotho. Picture 1 Picture 2 Picture 2: ED with the First Deputy Governor of the Lesotho Central Bank, Dr. Masilo Philemon Makhetha Following his welcome remarks, Honorable Francis Mokoto Hloaele provided an overview of the Kingdom of Lesotho s development opportunities and challenges. He expressed the Government s commitment to do everything it could to meet the current development challenges, particularly those related to job creation and diversification of the economy. He also thanked the World Bank Group for supporting the Kingdom of Lesotho in its endeavors and stressed the need for the scaling up of WBG financial assistance particularly to facilitate speedier project implementation and capacity building including urgent support for the preparation of an upcoming Summit on Jobs later this year. He welcomed the ongoing discussions with WBG towards the completion of the Systematic Country Diagnostic (SCD) and the Country Partnership Framework (CPF). He also requested the ED to follow up with Management on the recruitment of the new WBG Country Representative as this position was vacant. In his response, the ED thanked the Minister and, through him, the Government and people of the Kingdom of Lesotho for their warm reception accorded him and his Advisor. He commended the authorities for the efforts towards eradicating poverty and promoting shared prosperity. He promised to do his best in supporting the development agenda of the Kingdom of Lesotho at the Boards of the WBG. The ED also encouraged the authorities to seize the opportunities for accelerated development. He expressed his appreciation for

28 P a g e 28 witnessing first-hand how high altitude can influence greater agricultural productivity and yield of crops. He noted the importance of the huge employment generating potentials offered by the Private Sector Competitiveness and Economic diversification Project as well as the Smallholder Agricultural Development Project. He urged the authorities to strive to increasingly facilitate access to market by building appropriate institutional linkages, logistical support and financial mechanisms. Picture 1 & 2: ED with the WBG Governor for the Kingdom of Lesotho and Minister of Development Planning, Honorable Francis Mokoto Hloaele, visiting the Orchards Private Sector Competitiveness and Economic Diversification Project at Sehlabeng. The ED also visited World Bank Group-supported projects, namely the Private Sector Competitiveness and Economic Diversification Projects (Orchards at Sehlabeng and Mahobong) and the Smallholder Agriculture Development Project at Sehlabeng. Honorable Francis Mokoto Hloaele, Minister of Development Planning, Mr. Lerotholi Pheko, Principal Secretary of the Ministry of Development Planning and other Government officials accompanied him to the projects sites. The ED also met with staff from the WBG Country Office to discuss HR-related matters. Picture 1 Picture 2

29 P a g e 29 Republic of Namibia (May 18-19, 2015) On the visit to the Republic of Namibia from May 18-19, Senior Advisor for Namibia, Mr. Chris Hoveka, accompanied the ED. He met with Ministers and senior Government officials from the Ministry of Finance, Ministry of Public Enterprises and the Governor of the Bank of Namibia.... the Namibian Government was currently in the process of developing Public-Private Partnership (PPP) legislation and would like to engage the WBG for advice to ensure that the legislation adopted by the country is of international standard In his meeting with the Minister of Finance and Governor of the World Bank Group for the Republic of Namibia, Mr. Calle Schlettwein, the ED was briefed on the Namibian Government's economic challenges and policy priorities, with the main focus on promoting economic growth and addressing poverty and high unemployment, especially among the youth. In this context, the Minister said that the Government would like to engage the WBG in two areas: (1) improving the Government s capacity to design, implement and monitor policies on strategic issues, including debt management and expenditure review; and (2) increasing the private sector capacity to generate jobs and incomes. To this end, the Government was currently in the process of developing Public-Private Partnership (PPP) legislation and would like to engage the WBG for advice to ensure that the legislation adopted by the country is of international standard. In his response, the ED thanked the Minister for the briefing and concurred with the identified areas of focus as critical in helping the Republic of Namibia to promote economic growth and shared prosperity as the country attempts to address high unemployment and inequality. The ED informed the Minister that one of his priority areas is to urge the WBG to come up with a comprehensive strategy for Middle-Income Countries (MICs). He assured the Minister that his Office will be unrelenting in the pursuit of this initiative. As for the specific issues where the Minister signaled a desire to engage the WBG, the ED assured him that he will consult with the relevant units across the WBG. The Minister responsible for SOEs informed the ED that the Government was in the process of engaging consultants to review the significance of SOEs in the Namibian economy and to propose a new structure to make them more efficient and effective. He expressed his intent to solicit advisory assistance from the WBG in the restructuring process. The ED thanked the Minister for the briefing and commended the Government for taking this challenging but necessary initiative to make the SOEs more efficient and effective. The ED said that SOEs are supposed to contribute to economic development and to the financial position of the Government, but what tends to happen in many countries is the opposite. He was very supportive of the Government s initiative. The ED then informed the Minister that WBG, including IFC, has vast experience in restructuring SOEs. He promised to consult with the appropriate units within the Bank and IFC so that the Government gets the necessary assistance it needs to ensure a successful restructuring process of SOEs.

30 P a g e 30 Republic of Zimbabwe (May 19-22, 2015) Picture 1: ED Larose and AED Bvumbe with Minister Chinamasa at a Press Conference On the ED s mission to the Republic of Zimbabwe during May 19 22, the Alternate Executive Director (AED), Mr. Andrew Bvumbe and Advisor, Mr. Allan Ncube, accompanied him. In Harare, the Executive Director representing the Republic of Zimbabwe at the African Development Bank Group (AfDB), Mr. Mohamed Rafique, and Mr. Mateus Magala, Resident Representative of AfDB. joined the team. Picture 1 Picture 2: ED Larose visit to a Cold Storage Company Picture 3: ED visits the Archer Clothing Company During their visit, the Executive Directors met with key Government Ministers directly responsible for the economy, Honorable Ministers of Finance & Economic Development and of Industry & Commerce, the Chief Cabinet Secretary and, senior Government officials. The EDs also traveled to the industrial cities of Bulawayo and Gweru, where they met with managers and toured State-owned Enterprises and private sector companies; 1) private firms; Dunlop Tyre Manufactures, Archer Clothing, Bata Shoe Company and ZimGlass; 2) State-owned Enterprises; the National Railways of Zimbabwe (NRZ) and a Cold Storage Company (CSC). In addition, they visited and toured Mpilo Hospital in Bulawayo to appreciate the impact of the challenges facing Government institutions in service delivery to the general public. Picture 2 Picture 3

31 P a g e 31 Picture 1: EDs Larose, and Rafique meet with the Mayor of Bulawayo, His Worship Cllr Martin Moyo. The EDs and their teams consulted with the Zimbabwean authorities and other key stakeholders on Zimbabwe s development challenges and opportunities as well as other issues having the potential to give additional impetus to both the economic reforms being undertaken by Government, and to the recently inaugurated Quadripartite Committee tasked to deal with the arrears clearance for the Republic of Zimbabwe. The visit afforded both EDs an excellent opportunity to appreciate firsthand the current development challenges facing Zimbabwe s Private and State-owned industries and its Public Sector institutions. The visit also provided critical insights about the economic opportunities available that can bring the much needed Foreign Direct Investments (FDIs) into the country. While the EDs commended the Government for taking bold decisions towards the country s development aspirations, they seized the opportunity to underscore to the authorities the importance of clearing financial arrears with the Multilateral Development Banks (MDBs). They also emphasized the need to continue with the implementation of economic reforms with a view to changing the economic trajectory, which will allow the country to attract FDIs. The EDs paid a courtesy visit to His Worship, the Mayor of the City of Bulawayo and his Town Clerk. The City authorities highlighted the challenges of providing clean and adequate water for the city s residents. While in Harare Mr. Larose took the opportunity to meet with staff at the new World Bank Group Country Office. A number of human resource issues were discussed. Picture 1