Group ANGOLA: AFDB Perspective Treviso& Vicenza 18 July 2013 Mennella Luigi Regional Vice Presidency Office BUILDING TODAY A BETTER AFRICA TOMORROW
Number of Days to Open a Business 140 120 100 80 60 40 20 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2
GDP per capita (USD) 7000 6000 5000 4000 3000 2000 1000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 3
Investment (% of GDP) 18 16 14 12 10 8 6 4 2 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 4
Angola - Population By Age Groups 60000 50000 40000 30000 20000 10000 0 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065 2070 2075 2080 2085 2090 2095 2100 80+ 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 5
Imports of Goods and Services, billion $US 50 45 40 35 30 25 20 15 10 5 0 15.1 16.3 13.7 43.1 41.8 10.6 8.8 8.4 8.8 22.1 2.0 1.7 1.7 2.5 2.5 3.4 3.2 4.0 3.0 3.0 3.5 4.5 5.2 5.7 5.7 6.7 7.1 19.2 18.8 4.7 5.8 12.6 0.6 0.6 0.4 1.1 1.2 1.8 1.8 2.0 1.6 1.6 2.1 2.4 2.6 2.6 2.6 2.7 3.5 3.3 3.3 4.8 6.8 7.5 1.3 1.7 0.9 1.0 1.3 1.4 1.1 1.3 1.4 1.3 1.6 1.3 2.0 1.5 1.5 1.5 2.0 2.6 2.1 3.1 3.0 3.2 3.8 5.5 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 37.1 21.0 22.7 26.3 18.3 2007 2008 2009 2010 Goods and Services Services Goods 6
Land use - 2009 Arable land: 3.2% Permanent crops: 0.2% Other Land: 49.6% Forest area: 47.0% 7
What AFDB will cover in Angola in 2013-2015 POWER Combined Solar & Windfarm Power Generation 2nd Power Station Cambambe (4x130) Public-Private Partnership GTG 3 Cazenga Rehab Thermal Generation TRANSPORTATION Road Lucusse Zambia Railway Namibe Lubamgo Oshikango Lines Railways National Interconnection 8
ECCAS (POP. 124 MILL) ANGOLA BURUNDI CAMEROUN CENTRAFRIQUE CONGO Economic Community of Central African States GABON GUINÉE EQ. RD CONGO SAO TOMÉ ET PRINCIPE TCHAD SADC (POP. 277 MILL) ANGOLA BOTSWANA DEMOCRATIC REPUBLIC OF CONGO LESOTHO MADAGASCAR MALAWI MAURITIUS The Southern African Development Community MOZAMBIQUE NAMIBIA SEYCHELLES SOUTH AFRICA SWAZILAND UNITED REPUBLIC OF TANZANIA ZAMBIA ZIMBABWE 9
AfDB Private Sector Financial Instruments Senior Debt Up to 20 years (5 yrs grace period), foreign or local currencies, risk priced Guarantees partial risk, partial credit (long tenors) For specific credits or commercial bank SME programs, risk priced Subordinated Debt Subordinated loans or bonds local currency possible, maximum 15 years (10+5), risk priced Equity Direct investments in banks, DFIs, MFIs, etc, up to 25% With or without board seat, planned exit, commercial returns Technical Assistance grants for studies, Up to USD 1 mn for institutional capacity building programs 10
How to work with us 1. An enterprise/project must be located and incorporated in the Regional Member Countries (RMCs) of the Bank, whether promoted by African or non-african investors. 2. An enterprise/project must be majority-owned (51%+) by privatesector investors, or publicly owned with strong financial standing and proven managerial autonomy. 3. Projects for the establishment, expansion, diversification and modernization of productive enterprises (i.e. CAPEX). No direct financing of trade. 4. Investment size determined by Single Obligor Limit and other prudential considerations. 11
Private Equity Funds Participated by AFDB (1/2) South Africa Infrastructure Fund SAIF Infrastructure South Africa AIG African Infrastructure Fund AIG Infrastructure Pan-African ECP Africa Fund II PCC (EMP Africa Fund LLC) Pan African Infrastructure Development Fund Maghreb Private Equity Fund II (Mauritius) PCC ECP II Generalist Pan-African PAIDF Infrastructure Pan-African MPEF II Generalist MENA Atlantic Coast Regional Fund LLC ACRF Generalist Pan-African Growth Finance GROFIN SMEs Pan-African Emerging Capital Partners III ECP III Generalist Pan-African Agri-Vie Fund AGRIVIE Agribusiness Pan-African Pan African Investment Partners II Limited PAIP II Generalist Pan-African AfricInvest II Fund AIF II Generalist Pan-African 12
Private Equity Funds Participated by AFDB (2/2) African Infrastructure Investment Fund 2 (Mauritius) AIIF II Infrastructure Pan-African Investment Fund for Health in Africa IFHA Health Pan-African Emerging Africa Infrastructure Fund EAIF Infrastructure Pan-African Citadel Capital Joint Investment Fund L.P. (Africa Joint Investment Fund - AJIF) CITADEL Generalist MENA Argan Infrastructure Fund ARIF Infrastructure Africa Capitalization Fund ACF Financial Intermediation North & West Africa Pan-African African Agriculture Fund AAF Agribusiness Pan-African Catalyst Fund Catalyst Generalist Pan-African New Africa Mining Fund II NAMF II Mining Pan-African 13
ADF PARTIAL CREDIT GUARANTEE Assist LICs with low risk of debt distress and adequate debt management capacity to access capital markets Guarantee against the risk of sovereign default ADF UA 75 million PBA Deducted Leverage 4 X ADF Guarantee 2 X UA 300 million Guarantee Multiplier Investment UA 600 million investment
PRIVATE SECTOR FACILITY Credit enhancement to the ADB on a portfolio of transactions in LICs Extends ADB s ability to mobilize additional private investment in LICs PSF Leverage 4 X UA 165 million seed contribution ADB financing 5 X UA 660 million additional PSO Multiplier Additional LIC projects UA 3.3 billion additional LIC total projects investment
AFRICA 50 FUND Africa s infrastructure financing gap stands at USD 50 billion a year and is growing Africa 50 Fund will significantly narrow the gap Aim to attract approximately USD 100 billion worth of local and global capital and requires an investment of USD 10 billion Two Business lines: Project Development and Project Finance Funding Structure:
THANK YOU Please Visit: www.afdb.org 17