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The French Development Agency (Agence Française de Développement - AFD) started its activities in Mozambique in 1981, and set up its office in Maputo in November 1985. During these thirty years, AFD first focused its activities on basic infrastructure rehabilitation (telecommunications, energy, water) and rural sector development, supporting traditional (livestock farming) or export industries (cotton, cashew nuts, copra), and then broaden its financing to health and environment sectors. Photo © IcyU2
News
African Agriculture Fund, a first in the fight against hunger
European, African and international partners have set out to tackle the threats to Africa’s food security by pooling their resources and expertise for the first time in a single investment fund (African Agriculture Fund, AAF). The aim is to promote agricultural investments in Africa and increase agricultural production for domestic consumption.
Increasing threat to food security for Africans
The 2008 food riots revealed the number of challenges facing Africa in terms of food security:
- the uncontrolled increase in urban populations, which rely on food imports subject to price volatility in agricultural raw materials;
- the chronic dependence on emergency food aid, particularly in destabilized regions such as the Sahel zone;
- the practice of land grabbing by speculative investment funds to the detriment of the interests of village producers;
- the lack of political will to establish regional strategies based on farmers’ production sectors;
- private agricultural companies and cooperatives’ lack of own resources to increase their production and modernize industries.
African Agriculture Fund: a first
The international community has mobilized to address these issues via various initiatives. For the first time, European partners (AFD, European Union, Spanish Agency for International Cooperation and Italian cooperation), African partners (ADB, BOAD, EBID, DBSA and the AGRA Foundation) and UN agencies (IFAD and UNIDO) have pooled their resources and expertise within a single investment fund (African Agriculture Fund or AAF) in order promote agricultural investments in Africa.
A palm plantation in Ghana, © AFD Agency in Ghana
Anti-money laundering and sound land management
This pan-African fund was quoted in the Final Declaration of the G20 Agriculture Meeting in June 2011. It is expected to total over $200m by July 2012 and operates throughout the agricultural value chain (production, processing and distribution), with priority given to the primary sector (cereals, livestock, aquaculture, fruit production…).
The fund’s procedures cover compliance with strict social and environmental standards, systematic due diligence on anti-money laundering and corruption and the application of a code of sound land management.
Two AAF projects already underway
AAF has already invested in two projects: the first aims to refurbish a palm oil processing plant in Sierra Leone via a $10m investment alongside financing from Finnfund . This project is part of the international community’s post conflict initiative. It involves over 8,000 independent planters and will increase production destined for the domestic market.
The fund’s second investment, worth $20m, will extend an egg production farm in Zambia and develop the different sector stakeholders (from soya production for poultry feed to distribution points, including storage improvement).
The next investments are expected to be made in French-Speaking West Africa ( Côte d’Ivoire ) and in a wide range of sectors (mineral water, sugar, crop protection…).
The fund has two instruments which more specifically target small producers or entrepreneurs: a $30m subsidiary fund earmarked for agricultural SMEs and a $15m technical assistance facility to subsidize the professional integration of small producers, capacity building and the development of services for SMEs.
Developing an African broadband telecoms network in 29 countries
During the signing, Ibrahim Mayaki, Chief Executive Officer of the NEPAD Planning and Coordinating Agency (NPCA) and former Prime Minister of Niger, and Yves Boudot, Director of AFD’s Sub-Saharan Africa Department, had the opportunity to discuss – in addition to ICT development in Africa – the headway made by the Programme for Infrastructure Development in Africa (PIDA), an initiative led by the African Union Commission, NEPAD and African Development Bank.
AFD’s long-standing support to NEPAD’s New Information Technologies initiatives
Since 2003, AFD has been supporting NEPAD’s activities in the telecoms sector (e-Africa Program) via an earmarked grant and the joint AFD-DBSA Project Preparation and Study Fund. These funds have cofinanced preparatory services for NEPAD’s ICT operations and have provided a residential technical assistant (on assignment since July 2009) to support the project for the UMOJANET (“umoja” means “union” in Swahili) broadband transmission virtual network.
This new financing has been delegated from the European Infrastructure Fund (EU-ITF) and follows on from an €850,000 AFD grant (allocated in 2006) to support NEPAD’s initiative to develop a continent-wide broadband transmission virtual network.
Umojanet is extending Uhurunet
The grant that has been allocated will finance the study program that results from the technical assistant’s research to finish off the design of the concept and of the UMOJANET network. The aim is to extend it to the 29 countries in North, West and Central Africa. This will complete both coverage on the continent and the UHURUNET project for Southern Africa.
This project aims to offer African operators a pan-African network of fiber-optic transmission channels. The resulting interconnection offer is required to meet criteria for comprehensiveness, guaranteed quality, open access, non-discrimination and lowest possible cost. The bid invitations will be published in February 2012.
AFD’s approach in supporting NEPAD’s activities is based on its research on promoting regional integration via the construction of major communication networks as a complement to the private sector. This strategy is in line with those adopted by other donors (World Bank, ADB, EIB, KfW, DBSA…). It previously prompted AFD to provide USD9.5m of cofinancing alongside other donors in 2007 for the Eastern African EASSy submarine cable project.
The signing of this additional financing for the implementation of the UMOJANET project should allow NPCA to present an effective implementation plan for a fiber-optic broadband network in West, Central and North Africa over the next 12 months. This will complete both coverage on the continent and the UHURUNET project for Southern Africa.
Investissements verts au Mozambique, quel potentiel ? | Présentation d’une étude de marché financée par l’AFD
La Banque du Mozambique et l'AFD ont organisé le 8 novembre 2011 à l’hôtel VIP de Maputo un séminaire de présentation d’une étude analysant le potentiel d’investissements verts au Mozambique. Ces investissements verts, à réaliser par des entreprises, doivent se matérialiser dans les secteurs de l'énergie et de l'environnement (énergies renouvelables, efficacité énergétique, protection de l'environnement et réduction de la pollution).
Ce séminaire, qui a vu la participation d'une cinquantaine de personnes, a permis de valider les principales conclusions de l’étude. Le potentiel a été déclaré important mais a besoin pour se concrétiser d’un cadre réglementaire incitatif.
Cette étude, réalisée par
Verde Azul
et
PPL International,
a permis de fournir des informations importantes sur le développement durable au Mozambique aux différentes institutions, ministères, entreprises et banques du pays.
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