"The initiative covers the eight countries in the Horn of Africa --
Djibouti, Eritrea, Ethiopia, Kenya, Somalia, South Sudan, Sudan, and
Uganda"
http://www.un.org/sg/offthecuff/index.asp?nid=3692
Notes to correspondents
Note to correspondents - Visit to Horn of Africa by UN
Secretary-General, Presidents of World Bank and Islamic Development
Bank Group and others
Addis Ababa, Ethiopia, 27 October 2014
Leaders Commit Billions in Major New Development Initiative for the
Horn of Africa
UN Secretary-General, WBG and IsDBG Presidents, and other Agency Heads
Visit Region to Link Peace Efforts with Economic Progress
Addis Ababa, Ethiopia, October 27, 2014—Leaders of global and regional
institutions today begin an historic trip to the Horn of Africa to
pledge political support and major new financial assistance for
countries in the region, totaling more than $8 billion over the coming
years. UN Secretary-General Ban Ki-moon, the World Bank Group (WBG)
President, Jim Yong Kim, as well as the President of the Islamic
Development Bank Group and high level representatives of the African
Union Commission, the European Union, the African Development Bank,
and Intergovernmental Agency for Development (IGAD) are combining
forces to promote stability and development in the Horn of Africa.
On the first day of the joint trip, the World Bank Group announced a
major new financial pledge of $1.8 billion for cross-border activities
in a Horn of Africa Initiative that will boost economic growth and
opportunity, reduce poverty, and spur business activity.
The initiative covers the eight countries in the Horn of Africa --
Djibouti, Eritrea, Ethiopia, Kenya, Somalia, South Sudan, Sudan, and
Uganda.
“This new financing represents a major new opportunity for the people
of the Horn of Africa to make sure they get access to clean water,
nutritious food, health care, education, and jobs,” said World Bank
Group President Jim Yong Kim. “There is greater opportunity now for
the Horn of Africa to break free from its cycles of drought, food
insecurity, water insecurity, and conflict by building up regional
security, generating a peace dividend, especially among young women
and men, and spurring more cross-border cooperation.”
Leading the trip to the Horn of Africa, the United Nations
Secretary-General, Ban Ki-moon said "The countries of the Horn of
Africa are making important yet unheralded progress in economic growth
and political stability. Now is a crucial moment to support those
efforts, end the cycles of conflict and poverty, and move from
fragility to sustainability. The United Nations is joining with other
global and regional leaders to ensure a coherent and coordinated
approach towards peace, security and development in the Horn of
Africa."
The European Union also announced that it would support the countries
in the region with a total of around $3.7 billion until 2020, of which
about 10 percent would be for cross-border activities; the African
Development Bank announced a pledge of $1.8 billion over the next
three years for countries of the Horn of Africa region; while the
Islamic Development Bank committed to deploy up to $1 billion in new
financing in its four member countries in the Horn of Africa
(Djibouti, Somalia, Sudan and Uganda).
The Horn is diverse, with some of the fastest growing economies and
huge untapped natural resources. However, it also has many
extraordinarily poor people and populations that are now doubling
every 23 years. Unemployment is widespread among growing numbers of
young people. Women, in particular, face huge obstacles because of
their gender, including limited land rights, limited education, and
social customs that often thwart their ability to pursue economic
opportunity, and improve living conditions for their families and
communities.
Countries in the region are also vulnerable to corruption, piracy,
arms and drug trafficking. Terrorism, and related money flows are
significant and interconnected threats in the Horn of Africa.
People-trafficking is also a growing problem in the region. However,
there are commendable efforts being made through regional cooperation
in parts of the Horn to tackle the root causes of these problems.
The new financing announcement will support those efforts and comes on
the first day of the trip led by UN Secretary-General Ban Ki-moon, to
discuss peace, security, and resilience. In addition to the UN
Secretary-General, other leaders making the trip are World Bank Group
President Jim Yong Kim; Islamic Development Bank Group President Ahmad
Mohamed Ali; African Union Commission Deputy Chairperson Erastus
Mwencha; Intergovernmental Agency for Development (IGAD) Executive
Secretary, Ambassador Mahboub Maalim; African Development Bank Group
Special Advisor to the President, Youssouf Ouedraogo; Deputy Director
General for Development and Cooperation, European Commission, Marcus
Cornaro and European Union Special Representative for the Horn of
Africa, Alexander Rondos.
The World Bank Group said its new $1.8 billion packaging, which is in
addition to its existing development programs for the eight countries,
would create more economic opportunity throughout the region for some
of the most vulnerable peoples, including refugees and internally
displaced populations and their host communities. Wars and instability
have generated more than 2.7 million refugees along with over 6
million internally displaced people. The Bank Group will also help the
region build up its communicable disease surveillance, diagnosis, and
treatment capacity.
Many of these diseases are associated with or exacerbated by poverty,
displacement, malnutrition, illiteracy, and poor sanitation and
housing. Increased cross-border trade and economic activity in the
Horn of Africa will necessitate simultaneous investments in
strengthening disease control efforts and outbreak preparedness.
The Bank Group will also support greater regional links between
countries with regional transport routes, stronger ICT and broadband
connectivity, more competitive private sector markets, increased
cross-border trade, regional development of oil and gas through
pipeline development, and the expansion of university and other
tertiary education.
The Bank Group’s pledge includes $600 million from the IFC, its
private sector arm, which will support economic development in the
countries of the Horn. IFC investments under the new Horn Initiative
will include a regional pipeline linking Uganda and Kenya; greater
investment in agribusiness expansion in storage, processing, and
seeds; possible public-private partnerships in pharmaceuticals,
renewable energy and transport; and financial advice and support to
government and companies to improve business confidence and
investment, access to markets, and access to private finance. Another
$200 million is for guarantees against political risks from the
Multilateral Investment Guarantee Agency.
A new World Bank Group paper forecasts that the Horn will undergo
dramatic and lasting change when oil production starts in Kenya,
Uganda, and possibly Somalia and Ethiopia.
For its part, the European Union’s Horn of Africa approach is based on
a strategic framework adopted in 2011. Support programs for 2014-2020
will be guided by the same analysis that underpins the World Bank’s
Horn of Africa Initiative and will focus on the development challenges
that must be tackled to unlock the region's considerable potential. EU
support will mostly target the three pillars of the Horn of Africa
Initiative: boosting growth, reducing poverty by promoting resilience,
and creating economic opportunities.
“The EU stands ready to further deepen its long-standing partnership
with the Horn of Africa – helping to build robust and accountable
political structures, enhancing trade and economic cooperation,
financing peace keeping activities and providing humanitarian
assistance and development cooperation,” said European Development
Commissioner Andris Piebalgs prior to the trip.
Other leaders on the trip said that the Horn of Africa region needs
new development assistance in order to secure peace and opportunity to
thrive and prevent future conflicts.
The Islamic Development Bank Group said its new financing for
Djibouti, Somalia, Sudan and Uganda over 2015-2017 would focus on
critical infrastructure development, food security, human development,
and trade. A further $2 billion could be provided by the Arab
Coordination Group over the same period.
Commenting on this announcement, Islamic Development Bank Group
President Ahmad Mohamed Ali said "The Horn of Africa is an important
gateway to Africa and a bridge to Western Asia. Bringing stability and
sustainable development to the Horn of Africa will undoubtedly
significantly contribute to stability across the entire African
continent. The Islamic Development Bank Group salutes this renewed
focus on the Horn of Africa and stands ready to work with all
partners, including the Arab Coordination Group, to support regional
cooperation and the economic revival of the Horn of Africa, especially
in its four member countries."
“Given the complexity of the environment prevailing in the region, we
must convince ourselves that it is not the financial means that will
win in the Horn of Africa region, but our commitment and determination
to act under the leadership of the countries in a united and
coordinated manner,” said African Development Bank Group
Representative, Youssouf Ouedraogo, Special Advisor to the President.
African Union Commission Deputy Chairperson, Erastus Mwencha, added,
“Our efforts to create peace and stability must be reinforced by
investments in the peoples and countries of the Horn.”
A new WBG regional study on the Horn of Africa released today at the
start of the trip found reasons for hope for the region: “Despite the
challenges the Horn of Africa faces, there are encouraging signs of
political momentum for enhanced regional economic interdependence.
Increasingly, Horn of Africa countries are members of the East African
Community, IGAD in Eastern Africa, and the Common Market for East and
Southern Africa. Some countries are showing strong political will to
solve both security and development issues through increased
cooperation—for example, many have sent troops to participate in
peace-keeping efforts and have participated in diplomatic
initiatives.”
“This mission is the apex of an ambitious partnership approach that
will provide the necessary instruments to strengthen the resilience
agenda in the IGAD region," said IGAD Executive Secretary, Ambassador
Mahboub Maalim.
For the UN’s Ban and World Bank’s Kim, this is their third trip in 18
months together to Africa. In 2013, the two travelled to the Great
Lakes and Sahel regions, drawing attention to the need to promote both
peace and development. During the two previous trips, Kim pledged $2.7
billion for regional projects for programs to improve health,
education, nutrition, access to energy, and job training. To see the
results of these previous peace and development regional initiatives,
visit:
http://www.worldbank.org/en/region/afr/brief/world-bank-group-sahel-and-great-lakes-initiatives
To see the new WBG regional paper on the Horn of Africa, please visit:
http://documents.worldbank.org/curated/en/2014/10/20316926/
World Bank Contacts: Phil Hay mobile: +1 (202) 492-7238, phay_at_worldbank.org
In Addis Ababa: Gelila Woodeneh, work: +223 20 22 2283/22 3201,
mobile: +223-76 04 7373, gwoodeneh_at_worldbank.org
UN Contacts: Vannina Maestracci, phone: 1-917-367-0293, mobile:
1-917-855-3143, maestracci_at_un.org
EU Contacts: Sven Ruesch, phone: +32 2 295 87 59, Sven.Ruesch_at_ec.europa.eu
Islamic Dev Bank: Muhammad Jameel Yusha'u, phone: +966-12-646
6492; mobile: +966-59-11 88 844, myushau_at_isdb.org
AUC Contacts: Habiba Mejri-Cheikh, habibam_at_africa-union.org
AfDB Contacts: Joel Serunkuma Kibazo, work: +225-20262024, mobile:
+225-01229898, j.kibazo_at_afdb.org
Received on Mon Oct 27 2014 - 08:28:34 EDT