TUNIS23 MARCH 2012PRESENTER: DOUGLAS BARNETT

GREEN GREEN GREEN

African Development Bank Group

“Green” : NOT just carbon production. It is also … about resource use, people, their livelihoods and habitat.

If green growth does not generate jobs/ incomes/ support entrepreneurship and economic opportunities and if it only relies on grants and ODA investments over the long term, then it’s NOT sustainable

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For Africa, Green Growth is about maintaining economic momentum in the face of population growth, urbanization, natural resource scarcity and climate change.

The absolute priority for Africa is to develop.

This requires food and livelihood security, access to education, health services, energy, resources and capital, and access to JOBS.

Meeting these conditions in a world undergoing many changes is a significant challenge.

INCLUSIVE GROWTH

African Development Bank Group

Additional Challenges

Demographic Urbanization Transportation Infrastructure Environmental DegradationPollutionClimate Change Unbalanced Growth Models Business Environment Weak Institutions

Inclusive growth: Growth that results in enhanced (a) economic opportunity for

the majority (broad-based) and for vulnerable groups (bottom of the

pyramid) and (b) through improved governance to enhanced access to social services.

Some Current Models 

Knowledge operations Financial Operations

Jobs and income generation

TA linked to transaction or not (FAPA) Skills and labour markets

development Entrepreneurship development

(franchising programme), business development services, capacity building of SME representative institutions (ABR, RPSF)

Different models for NSO (non-sovereign opertns):•Financial intermediation (can include special needs group- GOWE program)•Private Equity Funds•Direct lending•Business-linkages program (e.g. out-grower schemes)

Financial services

Micro-finance Trust-fund (OPSM) Remittances Trust Fund (OPSM) FAPA TA linked to transactions 

• Micro-finance operations – e.g. K-Rep, Advans Bank, MicroCred

• LOCs, PCGs• Apex facility through Tunisian Central Bank for

SME lending• Shelter-Afrique, Africa-re (insurance market)

Health and education

•Promotion /Development of Social Businesses, including incubators

• Health Funds• Inconclusive (as yet) experience with AKU

(sovereign/non-sovereign),• Trustco (also, financial services)

Basic infrastruc-ture

•Promotion /Development of Social Businesses, including incubators

• NSO Projects tend to focus on large scale activities

• Example of smaller scale projects, mainstreaming climate change issues include Cabeolica, E+CO (rural clean energy fund)

GREEN GROWTH – Inclusive JOBS

African Development Bank Group

Green jobs are decent jobs that: - Reduce consumption of energy and raw materials- Limit greenhouse gas emissions- Minimize waste and pollution- Protect and restore ecosystems

How can AfDB private sector address green growth & inclusive job generation?

Infrastructure – Cabeolica UA 21.6 million

CIFs – at least $900 million

SEFA Sustainable Energy Fund For Africa (up to USD $58 million)

Banking

GREEN JOBS?

African Development Bank Group

Cabeolica – UA 23 million ADB & ADF23 MW Installed13 GWh generated in 201125 full time employees of which 6 femaleAbout $500,000 / year payments to local suppliers

and local salariesSave on imported diesel fuel costsTax exempt for 5 yearsConclusion: Benefits in renewable energy

generation are mainly indirect and knowledge transfer, not direct employment

Inclusive Jobs through Banking

African Development Bank Group

SDG – Summit Development Group –

Banking transformation for the unbankable …Use of mobile banksUse of container banking

Microfinance – 200,000+ loans / persons employed

GREEN JOBS

African Development Bank Group

Social BusinessesSocial Enterprises

Envirofit.org

Wood-based cooking

Human Impacts• 1.6 million people die from wood smoke related diseases each year. • Smoke from wood fire is one of the WHO’s top 10 threats to human health.• Depleted wood resource causes political instability. Wood Consumption• Half of all world harvested wood used for fuel. • 75% of wood harvested in LDC is burned for fuel.

GREEN GROWTH – Inclusive JOBS

African Development Bank Group

What’s missing? How can we optimize?

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