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Uganda presents priorities as AfDB calls for accountability
African Development Bank (AfDB) urges transparency in handling mega projects. PHOTO/EDGAR R BATTE
What you need to know:
- The AfDB currently finances 25 active projects to a tune of about $2.2billion.
Nairobi was abuzz as it hosted some 3,000 delegates, including presidents, ministers, governors and international observers at the Annual Meetings of the African Development Bank (AfDB), a multilateral institution that contributes to the sustainable economic development and social progress of the African countries.
The five-day meetings held under the theme, ‘Driving Africa's Transformation: The Reform of the Global Financial Architecture,’ observed that East Africa is the fastest growing region ahead of West Africa and Southern Africa.
This was disclosed during the launch of the African Economic Outlook on Thursday by AfDB president Akinwumi Adesina, stating that East Africa will see real Gross Domestic Product (GDP) growth rising from an estimated 1.5% in 2023 to 4.9% in 2024 and 5.7% in 2025.
According to the International Monetary Fund (IMF), after four turbulent years, the outlook for sub-Saharan Africa is gradually improving.
The African Economic Outlook (AEO) 2023 projected that Uganda’s Gross Domestic Product (GDP) was projected to grow by 6.5% in 2023 and 6.7% in 2024, assuming any global growth slowdown will be short lived.
In an interview with Monitor, Patrick Ocailap, the Deputy Secretary to Treasury at Ministry of Finance, Planning and Economic Development, listed Uganda's priority areas for funding under the AfDB’s African Development Fund (ADF) concessional financing window, human resource development, health, and education.
“The AfDB has been giving us concessional loans to invest in those areas because the returns are certainly very low, and are paid over a long time. I made a very strong case for increased ADF allocations to health, education, water and sanitation, research and development under innovation. Research can be informed by the pandemic of Covid-19,” he said.
African Development Bank observer Dominic Adeeda noted that a lot of the bank's lending portfolio is aligned with the country’s National Development Plans in the areas of infrastructure and agriculture.
Ocailap further explained that: “Now that Uganda can mobilise enough resources, we should compete favourably in public sector investments, add value to all our produce for both agricultural and minerals. We should be able to invest in industrial parks and export within the region, to Africa and the rest of the world.”
He also highlighted need for infrastructure that promotes integration in East Africa such as development of the Standard Gauge Railway (SGR) which he views as “a worthy commercial enterprise whose loan would be easy to pay back once transportation of goods and services to and from Tanzania, Kenya, Democratic Republic of Congo (DRC) and beyond commences.”
However, Adesina stronger accountability and transparency would be required for the region to attract serious investors, following reports of corruption in implementation of some African Development Bank’s projects in Uganda.
The bank reported that it on March 24 concluded an agreement with China Henan International Cooperation Group Company Limited.
“Pursuant to the negotiated settlement agreement, China Henan International Cooperation Group Company Limited, registered in China, will be debarred for a period of 12 months, effective March 28, 2024. An investigation conducted by the Office of Integrity and Anti-Corruption of the African Development Bank Group, established that China Henan International Cooperation Group Company Limited engaged in a fraudulent practice when it failed to disclose the use of a commission agent while submitting a bid in the context of a tender for the procurement of civil works for upgrading Rukungiri-Kihihi-Ishasha/Kanungu Road to bituminous standard, a component of the Road Sector Support Project in Uganda,” a bank statement reads in part.
Adeeda explains that there are (indeed) questions of accountability regarding the management of the projects, but the bank has its integrated operational safeguards.
The AfDB currently finances 25 active projects to a tune of about $2.2billion. The continental bank’s 10-year strategy is focused on improving the quality of Africa's growth: inclusive growth, and the transition to green growth.
