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The Transformative Power

of Partnerships

Report 2011

about the africa progress panel

The Africa Progress Panel brings together a unique group of leaders under the chairmanship of Kofi Annan. The
Panel monitors and promotes mutual accountability and shared responsibility for progress in Africa. Its three
focus areas are economic and political governance, finance for sustainable development, and achievement
of the Millennium Development Goals. The work of the Panel aims to track progress in these areas and draw
attention to critical issues and opportunities.

While the Panel does not purport to be speaking for Africa, it can speak with an African voice, with the
continents concerns and priorities as its guiding principles, and with the combined expertise, experience and
knowledge of its members. It calls for the fulfilment of commitments to Africa, without ever forgetting that the
main responsibility for progress rests with the continents leaders and that they themselves have entered into a
series of commitments that they need to fulfil.

about the africa progress REPORT

Every year, the Panel, with support from the Secretariat, draws on the expertise of a wide range of institutions
and actors to compile a concise overview of the progress Africa has made over the previous year. The report is
divided into two sections. The first highlights progress as well as the main obstacles to it in seven areas, namely
economic growth, governance, peace and security, social development, food and nutrition security, climate
change, and development cooperation and finance. The second section looks at the year ahead and identifies
key trends and obstacles. On that basis, the report provides a series of practical recommendations for policy
makers to catalyze action and accelerate much-needed progress.

SECRETARIAT This report may be freely reproduced,

in whole or in part, provided
Dawda Jobarteh, Acting Director
the original source is acknowledged
Violaine Beix

Sandra Engelbrecht

Benedikt Franke
Africa Progress Panel
Kwame Okyere P.O. Box 157
Temitayo Omotola 1211 Geneva 20
Carolina Rodriguez

For the purpose of this report we define
partnerships as voluntary and collaborative
relationships between various parties, both state
and non-state, in which all participants agree to
work together to achieve a common purpose
or undertake a specific task and to share risks,
responsibilities, resources, competencies and

The basic concept of partnerships is simple and

straightforward to identify common ground
between different actors and to combine their
skills, resources and expertise. Partnerships for
development focus on the many areas where
actors, including private and public institutions,
companies and civil society organizations,
can engage in winwin relationships around
development objectives such as poverty
reduction, health, education, access to
opportunities and service delivery.

Effective cross-sectoral partnerships can make

it possible to overcome challenges that are
too difficult or complex for one organization
or sector to address alone. Partnerships can
also make efforts more effective by combining
resources and competencies in creative ways.
Collaboration can enable governments,
companies and organizations to improve
achievement of their own individual objectives
through leveraging, combining and capitalizing
on complementary strengths and capabilities.
Source: Based on the definition used by the UN Global Compact.

table of contents
Economic Growth 10
Africas Swift Recovery from the Economic Crisis 10
The Low Quality of African Growth 11
Growth Outlook and Economic Potential 14
Governance 20
National Governance 20
Regional Governance 24
Global Governance 26
Peace and Security 27
Social Development 28
Poverty Alleviation 28
Education and Skills Formation 32
Gender Equality and Womens Empowerment 32
Health 33
Access to Water and Sanitation 37
Food and Nutrition Security 38
Volatility of Food Prices 38
Structural Barriers to Food Security 38
Agricultural Productivity 38
Climate Change 42
The Impact of Climate Change 42
Climate Change Politics 42
Climate Change Finance 42
Adaptation and Mitigation 43
Development Finance and Cooperation 46
Domestic Resource Mobilization 46
Traditional Bilateral Partners 46
Bilateral Partners from the Global South 47
Institutional Partners and Country Groupings 50
Philanthropy and Private Giving 51
Debt Relief 51
From Aid Effectiveness to Development Effectiveness 52

The Transformative Power of Partnerships


How Partnerships are Already Contributing to Development 54
How Partnerships could be Driving Further Progress 57
Basic Service Delivery 57
Access to Opportunities 58
Access to Finance 58
Access to Health 58
Infrastructure 58
Agriculture 60
Low-Carbon Growth 60
Obstacles to Success 61
The Trust Gap 61
The Information Gap 61
The Imagination Gap 61
The Resources and Capacity Gap 61
The Perceived Benefits Gap 62
Who Needs to Do What 63
African Governments 64
International Donors 64
Private-Sector Actors 65
Civil-Society Actors 65



T he last year has been particularly eventful for the

continent, and the world as a whole. A growing
debt mountain in the United States, uncertainty
jobs, incomes and irreversible human-development
gains; that the continents enormous wealth will be used
to foster equitable and inclusive growth and generate
around Europes common currency and the opportunities for all; that economic transformation
consequences of the earthquake in Japan are and social progress will drive further improvements
reordering the industrialized worlds priorities. This and in democratic governance and accountability as
the lingering repercussions of the global financial crisis, the middle classes grow and demand more of their
accelerating shifts in the balance of economic and politicians and service providers; and hope that rulers
political power, high food and fuel prices, and political who abuse their power to enrich themselves at the
change in North Africa have transformed the policy expense of the poor and of democratic processes
space in which African leaders and their partners are, at last, seeing the writing on the wall.
operate. By compounding existing challenges, but
also by creating new opportunities, these dynamics That many of these hopes actually seem attainable
are transforming prospects for ordinary Africans across shows how far the continent has come. Hope,
the continent. however, is not enough. Positive trends are being
offset in too many countries by structural governance
The events of the last year have also accelerated deficits. Violence, political turmoil, and uncertainty still
changes in how Africa is perceived and perceives scar too many parts of the continent and add to the
itself. The broader aftershocks of the financial crisis, challenges already at hand. The slow progress towards
including currency and price volatility, fiscal crises the Millennium Development Goals (MDGs), the
and asset-price collapse, have proved that no region, difficult task of providing productive employment for
for better or worse, can be seen as exogenous to rapidly growing numbers of young people, increasing
the world economy. They have also highlighted the inequalities and food insecurity, the risk of contagion
need for new growth poles and markets to sustain the through increasingly interconnected systems and
economic order in the developed world. As a result, the effects of climate change all threaten past and
countries and companies are increasingly shifting their future gains. Despite repeated promises of reform by
attention from Africas problems to its vast potential the worlds most powerful countries and institutions,
and abundant opportunities. In the process, they are Africans also remain heavily marginalized in world
redefining the continents image. affairs, with little say in and control over how decisions
affecting their countries are taken. The continents
On the continent, these shifts in perception are enormous potential remains constrained by unfair
accompanied by a heightened appreciation of the global rules and the ambivalent behaviour of many
need for African self-reliance in an uncertain world, partners, particularly with respect to tariff and non-
and by a palpable spirit of optimism despite some tariff barriers to trade, distorting quotas and bloated
high-profile setbacks. The fast recovery and strong subsidy regimes.
growth rates of many economies, plus numerous
examples of social and political progress, are feeding a Given these obstacles and challenges, it is all the more
remarkable can-do spirit. This is reinforced by events remarkable that some countries in Africa have shown
such as the Football World Cup in South Africa, the such solid progress towards sustainable growth and
peaceful referendum in South Sudan, the adoption of development. They offer clear proof that, with the right
new constitutions in Kenya and Niger, and unforeseen combination of leadership, focused development
political change in Egypt and Tunisia. plans, and international support, enormous advances
are possible in even the most difficult circumstances.
What was termed the hopeless continent ten years However, all African countries face the increasingly
ago has now unquestionably become the continent of difficult task of mobilizing resources in an age of
hope.1 Hope that strong growth rates will translate into austerity. As pressures on aid budgets increase, and

With the right combination of leadership, focused development plans,

and international support, enormous advances are possible.

The Transformative Power of Partnerships

climate change adds new financing demands, African The core elements of effective partnerships are well
leaders and international donors are realizing that established, even though their combination may vary:
they cannot drive development on their own. Official political leadership and vision from governments,
development cooperation remains vitally important along with a supportive regulatory, legal and fiscal
to build capacity, leverage other flows and achieve environment; a private sector incentivized to invest
specific results. Yet, there is also a growing need for capital and ideas not just for immediate returns but
partnerships harnessing a broader range of actors and for longer-term change that will strengthen markets,
their energy, creativity and resources to fill the gaps. value chains and social stability; civil society afforded
the space by business and government to keep
Such partnerships have already proven their both accountable for socially and environmentally
transformative power. Collaboration between the responsible behaviour; and international organizations,
private sector and international philanthropists African or otherwise, able to advocate global
has led to significant reductions in malaria deaths. standards and share best practices, especially from
Partnerships between mobile-phone providers and other parts of the global South.
governments have resulted in greater access to
credit in rural areas and transformed business across The idea of partnerships for development is hardly
entire regions. Partnerships between civil society new. For over a decade, MDG 8 has been calling for
and intergovernmental organizations have led to stronger partnerships as a basis for achieving all other
vastly improved agricultural methods and inputs for goals. Despite the existence of many encouraging
smallholder farmers. By mobilizing resources, improving examples, and valuable lessons learned, we are still not
efficiencies, or extending services, access and seeing enough success stories replicated or brought
opportunities to previously marginalized segments of to scale to effect lasting structural change. Too many
the population, partnerships can clearly complement, actors still see the risks of engaging in partnerships
expand and improve government-led development rather than the opportunities, and too many states
efforts. If scaled up, they can even affect sustainable still fail to harness the developmental potential of
structural change. their civil society organizations or to provide the
enabling environment and incentive structures to
Current dynamics are highly favourable for make partnerships attractive for private-sector actors.
strengthening cross-sectoral collaboration. Over the This results in missed opportunities to tackle problems
last years, new spaces have opened up for engaging and drive progress. Given the transformative power
actors around their comparative advantages and of partnerships, it will be crucial to overcome these
respective interests as the benefits of partnering blockages and convince all sides of the inherent
have become more obvious. The private sector benefits of partnering for progress. This is the main
understands that it needs the access and knowledge purpose of this report.
of local partners and national governments to
grasp the enormous commercial opportunities at
the bottom of the pyramid. Governments and civil
society organisations are recognizing the value of
the resources, capacities, and expertise the private
sector can bring to their development efforts. As the Kofi A. Annan
interests of the various sectors continue to converge Chair of the Africa Progress Panel
and improvements in regulatory environments make
cooperating easier and safer, opportunities for
partnerships continue to grow.

Partnerships have already proven their transformative power.



I n last years Africa Progress Report, we called for

Africas resources to be turned into results for its
people. This continues to be an imperative as the
financial and political commitments to the continent.
The continents capacity to drive inclusive and
sustainable growth depends on the fulfilment of these
continents enormous wealth of human and natural commitments, as well as on reformed global policies
resources, strong economic growth, and windfall and systems that support Africas special needs
from rising commodity prices are still not sufficiently particularly in climate change, international trade
converted into socially productive ends such as and technology transfer.
reduced poverty and inequality and the provision of
health, education and other public services. As domestic resource mobilization and international
aid budgets fail to keep up with multiplying needs,
We also argued that Africas progress needs to be African countries and international donors must
measured in tangible improvements to peoples look beyond traditional strategies and stimulate
lives, and not only in figures of GDP and the growth development efforts additional and complementary
of trade and foreign direct investment. We stand by to their own. Partnerships for development are a prime
this, and renew our call for African leaders to convert example of such efforts. Recent years have shown that
economic progress and natural wealth into social they can achieve tremendous results by pooling the
and political progress, achievement of the MDGs and capacities, resources and expertise of various actors
greater accountability to their people. around specific development challenges. If designed
and implemented carefully, such partnerships can
The way to do this is well charted. We know that deliver more than the sum of every partners input
peace, stability, and the rule of law are the basic and bring much-needed versatility, creativity and
conditions for progress. We also know that growth pragmatism to development efforts.
must lead to job creation and diversification of the
economic base; that greater regional integration Against this backdrop, we begin our report by looking
and better infrastructure provide the foundation for back to assess the progress Africa has made over
trade expansion and private-sector-led growth; that the last year, looking particularly at how partnerships
empowering women increases household incomes, have contributed. We then look ahead to assess how
nutrition and education levels, as well as agricultural to replicate and scale up successful partnerships and
productivity; that transparency helps to spread the how to create the policy framework and incentives
benefits of Africas natural wealth more widely; and needed to spur further collaboration for progress.
that good governance, strong institutions and political Given the diversity of Africas 53 states (soon to be
leadership are central to all of the above. 54 with South Sudan) and their economies, societies
and policy environments, these recommendations
The revolutions in Northern Africa show that the are broad and must be adapted and adjusted for
information age has changed the dynamics of each country. We are nonetheless convinced that, if
accountability and increased pressure on leaders implemented, they will accelerate progress by filling
to deliver results for all their citizens. But, of course, crucial gaps in existing efforts, increasing resources for
African leaders are not in this alone. They share some development, and spreading access to opportunities,
of the responsibility for progress with their international goods and services across the continent.
partners, many of whom have made extensive

Africas progress needs to be measured

in tangible improvements to peoples lives.

The Transformative Power of Partnerships

Looking back at the last year, we note that
impressive progress, stagnation and discouraging
regression continue to coexist on the continent.
Widespread advances in economic growth and
social development contrast with a dangerous
erosion of democratic governance as well as
the increasingly evident reluctance of major
international donors to fulfil their commitments on
aid and climate finance. This section summarizes
major developments in the areas of (1) economic
growth, (2) governance, (3) peace and security,
(4) social development, (5) food and nutrition
security, (6) climate change, and (7) development
finance and cooperation.


Economic Growth population, unencumbered by legacy technology

and systems.4

W hen it comes to economic growth, three

issues stand out: Africas comparatively swift
and broad recovery from the global financial and
The global financial and economic upheavals of
20082010 interrupted Africas impressive growth
spurt.5 While the impact through financial channels
economic crisis, its continuing dependence on was generally weak, given the continents limited
narrow, commodity-driven growth that has had only financial integration and low level of cross-border
limited social benefits, and its positive growth outlook. lending, many African countries were badly
affected by declining exports and foreign direct
investment (FDI).6 However, most countries proved
Africas Swift Recovery more resilient than during previous crises and the
from the Economic Crisis continent as a whole avoided recession due to
the prudent counter-cyclical policies of national

I n the 5 years before the financial crisis, Africa

grew faster than most other world regions, with
more than 40 per cent of its countries enjoying an
governments and well-targeted support from the
international community.

average annual GDP growth rate of 5 per cent or Propelled by the strong performance of several
more.2 While a favourable global environment of large economies, including Brazil, China, Germany,
strong external demand, ample liquidity, extended France and India, most of Africa is now resuming its
concessional financing and higher commodity growth spurt. While FDI inflows are recovering only
prices accounts for much of this growth, structural slowly from the global credit crunch,7 both total
changes within the continents economies exports and imports have picked up again, with
are beginning to take effect and are helping growth rates of 15.3 and 11.3 per cent respectively.8
accelerate growth across countries and sectors. Remittances, the continents second-largest source
of net foreign inflows after FDI, are also beginning to
Among the most significant changes are a broad- recover from the slump in 2009, reaching nearly $40
based surge in domestic demand for basic billion in 2010.9 Not least because of the Football
consumer goods as a result of growing middle World Cup in South Africa, tourism revenues have
classes and rapid urbanization, lower public debts, also rebounded, with the continent receiving more
increased openness to trade and higher investments visitors over the last year than ever before.10
into enabling infrastructure. Many African countries
have also continued with deregulation, privatization Based on these trends and global dynamics, the
and other structural reforms that have significantly International Monetary Fund (IMF) expects Sub-
improved the business environment (notably Saharan Africas GDP to grow by 5.5 per cent
Rwanda, Ethiopia, and Liberia), the financial sector in 2011 and 5.8 per cent in 2012 (in real terms).11
(Nigeria), as well as administration and governance However, this masks substantial differences
(Sierra Leone). Dynamic private sectors have between countries. While the Republic of Congo,
appeared across the continent, including the Ethiopia, Ghana, Mozambique, Nigeria, Tanzania
flower business in Uganda, leather processing and Zambia are all expected to be among the
in Ethiopia and the film industry in Nigeria, which worlds ten fastest-growing economies, the Central
have helped underpin growth driven by the export African Republic, Chad, Cte dIvoire, Equatorial
of primary commodities.3 Encouragingly, African Guinea and Eritrea are projected to grow at rates
as well as international companies are taking far below the average.12 There are, however, two
advantage of the improving enabling environment, notable economic realities that seem to apply to
and vantage points like direct access to natural most of the continent: the low quality of recorded
resources, a large labour force and a fast-growing growth, and the enormous untapped potential.

Most African countries proved more resilient than during previous

crises and the continent as a whole avoided recession.

The Transformative Power of Partnerships

The Low Quality of African Growth against Africa unbroken,18 the continent has little
opportunity to escape this pattern and drive much-

A fricas current economic growth is not all positive. needed economic transformation through trade
It is generally not accompanied by much- diversification.19
needed structural transformation and diversification,
and often does not translate into equitable human The one-dimensionality of Africas global trade
development and public services. is all the more harmful, because trade between
African countries remains too weak to offer sufficient
Because of the immediacy of benefits, a lack of viable alternative incentives for economic diversification.
alternatives and credit for long-term investments, as Slow regional integration, a lack of connecting
well as distorted incentives, many African countries infrastructure, and insufficient resource and production
continue to rely on export-led growth policies complementarities between countries currently limit
focusing on the extraction of natural resources intra-African trade to a mere 10 per cent of total
and raw materials rather than value addition and exports. In comparison, trade within the Association of
diversification.13 While natural-resource extraction South East Asian Nations (ASEAN) accounts for about
has accounted for only about a third of Africas real 60 per cent of the regions total exports, and trade
GDP growth in the last decade,14 more than 80 per within the North American Free Trade Agreement
cent of the continents export earnings come from (NAFTA) accounts for 56 per cent of total exports.20
primary, generally unprocessed commodities. The Without similar opportunities to profit from enlarged
economies of several countries are geared towards markets, greater economies of scale and prosper
the export of single commodities, including copper thy neighbour policies, African countries remain prey
(Zambia) and aluminium (Mozambique). This has to disadvantageous geographies and unfavourable
resulted in unbalanced development, with weak links global dynamics.
between export-orientated and other sectors. With
the notable exceptions of Egypt, Tunisia and South The lack of economic diversification, in terms of both
Africa, where manufacturing and services account export products and destinations, explains the high
for 83 per cent of combined GDP,15 non-extractive volatility of African trade in recent years, and the
sectors and competitive industries remain heavily strongly adverse impact of the global economic
under-developed in most African countries.16 crisis through trade. It also explains why so little of
the continents high GDP growth translates into
The problem is caused, driven and compounded by social development and tangible improvements to
the poor quality of Africas economic relationships, peoples lives. Driven by capital-intensive extractive
with both African and other countries. Despite the sectors, the current type of economic growth has little
increasing prominence of non-European partners, positive impact on employment and income levels
and China in particular, the disadvantageous pattern and virtually no effect on employment-intensive
of Africa exporting unprocessed commodities and sectors such as agriculture.21 It is thus hardly surprising
importing manufactured goods persists. In fact, it is that, despite a decade of strong economic growth,
becoming ever more entrenched as the resource poverty remains pervasive throughout the continent
thirst of emerging partners continues to grow.17 and only one of Africas 34 Least Developed
With FDI concentrating in extractive industries, Countries (Cape Verde) has managed to graduate
the Doha Development Round unresolved, and from this category since the adoption of the Brussels
protectionism and other discriminatory measures Programme of Action in 2001.

Many African countries continue to rely on export-led growth policies

focusing on natural resources rather than value addition and diversification.

economic growth IN AFRICA
African annual real GDP, 2008
USD billions 1,816* Compound annual
real GDP growth
Compound annual growth rate, %
%, constant exchange rates

Emerging 8.3%
5.6 1,561 Asia

1,483 Middle East 5.2%


5.5 1,400
Africa 4.9%

1,323 Central and

4.9 Eastern Europe
Latin 4.0%
3.6 1,191 America
2.4 1,144
4.2 1,108 World 3.0%
461 Developed 2.0%

1970 1980 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010* 2011*

Source: IMF, World Economic Outlook Database (2010); World Bank, World Development Indicators (2011); and McKinsey Global Institute (2010) Lions on the Move
*GDP figures for 2009-2011 are combined from actual, estimated and projected amounts from the IMF

AveraGE Projected Real GDP Growth for 2010-2011

(in per cent)

Below 0%

Between 0% and 2%

Between 2% and 5%

Above 5%

Insufficient data

Source: IMF (2010), World Economic Outlook: Rebalancing Growth

GDP per capita and Growth Rates 2000-2009 IN SSA
GDP per capita 2000 GDP 2000 GDP Growth Annual % GDP 2009 GDP per capita 2009
(Current USD) (USD millions) 2000 2009 (USD millions) (Current USD)
Angola 639 9,129 3.0 0.7 75,493 4,081

Benin 339 2,255 5.8 3.8 6,653 745

Botswana 3,270 5,632 5.9 -3.7 11,823 6,064

Burkina Faso 224 2,611 1.8 3.5 8,141 517

Burundi 110 709 -0.9 3.5 1,325 160

Cameroon 635 10,075 4.2 2.0 22,186 1,136

Cape Verde 1,211 531 6.6 2.8 1,549 3,064

Central African Republic 256 959 2.3 2.4 2,006 454

Chad 165 1.385 -0.9 -1.6 6,839 610

Comoros 374 202 0.9 12.3 535 812

DRC 85 4,306 -6.9 2.7 10,575 160

Congo 1,061 3,220 7.6 7.6 9,580 2,601

Cte dIvoire 603 10,417 -3.7 3.6 23,304 1,106

Equatorial Guinea 2,371 1,254 13.5 -5.4 10,413 15,397

Eritrea 173 634 -13.1 n/a 1,873 369

Ethiopia 125 8,180 6.1 8.7 28,526 344

Gabon 4,109 5,068 -1.9 -1.0 11,062 7,502

Gambia 323 421 5.5 4.6 733 430

Ghana 255 4,977 3.7 4.7 26,169 1,098

Guinea 371 3,112 1.9 -0.3 4,103 407

Guinea-Bissau 165 215 7.5 3.0 165.26 519

Kenya 404 12,691 0.6 2.6 29,376 738

Lesotho 395 746 5.7 0.9 1,579 764

Liberia 199 561 25.7 4.6 876 222

Madagascar 254 3,878 4.8 0.4 8,590 438

Malawi 147 1,744 1.6 7.7 4,727 310

Mali 230 2,422 3.2 4.3 8,996 691

Mauritius 3,861 4,583 9.0 2.1 8,589 6,735

Mozambique 233 4,249 1.1 6.3 9,790 428

Namibia 2,143 3,909 3.5 n/a 9,265 4,267

Niger 163 1,798 -1.4 1.0 5,383 352

Nigeria 368 45,984 5.4 5.6 173,004 1,118

Rwanda 218 1,735 8.1 5.3 5,216 522

So Tom and Prncipe n/a n/a n/a 4.0 191 1,171

Senegal 474 4,692 3.2 2.2 12,822 1,023

Source: World Development Indicators Database (2011)

Seychelles 7,579 615 4.3 -7.6 764 8,688

Sierra Leone 150 636 3.8 4.0 1,942 341

South Africa 3,020 132,878 4.2 -1.8 285,366 5,786

Swaziland 1,380 1,490 10.1 1.2 3,001 2,533
Tanzania 307 10,186 5.1 5.5 21,368 503
Togo 253 1,329 -0.8 2.5 2,855 431
Uganda 253 6,193 3.1 7.1 16,043 490

Zambia 309 3,238 3.6 6.3 12,805 990

Zimbabwe 530 6,607 -7.9 n/a 5,625 449


Growth Outlook and In the long-term, growth will increasingly reflect

interrelated social and demographic trends
Economic Potential particularly the rise of the African urban consumer

T he low quality of growth notwithstanding, Africas

pre-crisis boom and its surprisingly fast and strong
recovery have reiterated the continents immense
and the growth of affluent middle classes. McKinsey,
for example, estimates that, as a result of strong per
capita growth and rapid urbanization, 221 million
economic potential. While poor policies, conflicts, additional Africans will enter the market for basic
natural disasters and other seismic events may consumer goods by 2015.25 While growth trajectories
disrupt growth in individual countries and sub- will continue to differ substantially (especially between
regions and significant structural barriers remain to oil exporters and diversified economies), Africas
be overcome, the fundamental trends and drivers collective GDP is estimated to reach $2.6 trillion in 2020,
suggest a positive growth outlook for most of the and consumer spending $1.4 trillion.26 Based on this
continent. positive outlook, more and more African countries are
now regarded as promising investment destinations,
In the short-to-medium term, most African countries including Botswana, Cape Verde, Ghana, Kenya,
will continue to profit from recovery in the global Mauritius, Mozambique, Namibia, Nigeria, Seychelles,
economy, rising global demand for their resources, South Africa, Tanzania, Uganda and Zambia.27
growing interest in their markets and further
structural improvements in their business and Yet enormous risks remain. In the short-term, sovereign
regulatory environments. The IMF expects to see FDI debt defaults in advanced economies could affect
rise further and demand for African bonds increase, banking systems and economies worldwide and
which should help governments to address crucial threaten the continents fragile recovery. In the
infrastructure deficits.22 UNCTAD expects the dollar medium-term, insufficient economic diversification
value of remittances into Africa to grow by 4.5 may thwart Africas chances to move towards a path
and 6.7 per cent in 2011 and 2012, respectively, of sustainable, inclusive, and ideally green growth.
which would further support the strengthening of In the long-term, accelerating climate change,
household consumption.23 environmental degradation and unsustainable
pressures on finite resources may reverse economic
In the medium term, most countries have enormous and social progress.
potential for gains through targeting the informal
sector, easing labour-market rigidities, addressing The overarching message from this brief review of
infrastructure deficits, promoting regional Africas economic growth is straight forward. In order to
integration, enhancing fiscal systems, boosting make the most of the continents enormous potential,
administrative capacity and harnessing international and counter the risks in years ahead, African leaders,
cooperation to improve resource mobilization.24 with the help of their international partners, need to
Partnerships between public actors and with the accelerate economic diversification and structural
private sector offer enormous opportunities to transformation.28 Without such transformation, growth
address some of the structural barriers that have will remain inequitable jobless, volatile, and largely
been constraining Africas growth for decades. inadequate for achieving the MDGs by 2015.

The fundamental trends and drivers suggest a positive growth

outlook for most of the continent.

The Transformative Power of Partnerships

Partnering around Africas infrastructure deficit

Africas lack of energy, transport and communications infrastructure has given rise to a number of promising
partnerships between public actors, including the Infrastructure Consortium for Africa (ICA), the Programme
for Infrastructure Development in Africa (PIDA), and the EUAfrica Infrastructure Partnership. Given the
identified need for as much as $93 billion a year to close the continents infrastructure gap and increasing
pressure on public finances, many of these partnerships focus on mobilizing complementary resources.
They provide incentives for the private sector through: leveraging public flows; identifying opportunities for
publicprivate partnerships; helping to remove technical, political and knowledge barriers to investment;
providing risk-mitigation instruments; reducing inefficiencies in resource allocation; and coordinating the
rapidly proliferating initiatives around infrastructure development. Thus, partnerships have helped to refocus
much-needed attention on the sector and contributed to the significant increase of commitments from $7
billion in 2005 to nearly $40 billion in 2010.

Sources: World Bank (2009), African Country Infrastructure Diagnostic; PEI and ICA (2011), Infrastructure Investor: Africa An Intelligence Report.

diversification of african economies

CLUSTERS OF African economies

10,000 Libya

10,000 Libya

Equitorial Mauritius
Guinea Gabon Mauritius
Guinea Angola Gabon
Angola Botswana
Algeria Tunisia
Algeria South
Egypt Namibia Africa
1000 Namibia
Cte dIvoire
Cte dIvoire
Nigeria Zambia Morrocco
Chad Sudan Zambia Morrocco
Sudan Cameroon
Cameroon Senegal
Mali Ghana Kenya
Mali Ghana
100 Mozambique
100 Sierra Leone DRCDRC Madagascar
Sierra Leone Tanzania
Tanzania Uganda

2020 3030 4040 5050 6060 7070 8080 9090 100
Manufacturingand service
and sector
service share
sector ofof
share GDP, 2008,
GDP, %%
Clusters (only select countries represented)
Clusters (only select countries represented)
GDP perper
GDP capita
Oil exporters Size ofof
Oil exporters Transition Transition < $500
< $500 $2,000 - $5,000
$2000 - $5000 Size bubble
Diversified Pre-transition $500 - $1,000 > $5,000 proportional
Diversified Pre-transition $500 - $1000 > $5000
- - $2000

Note: Selected countries include those whose 2008 GDP is aproximately USD 10 billion or greater, or whose real GDP
growth exceeds 7% over 2000-2008. 22 countries that account for 3% of African GDP in 2008 are excluded.

McKinseys framework illustrates four main clusters: diversified economies, oil exporters, transition economies and
pre-transition economies. The framework highlights that despite important differences between the countries within
each category, they have similar economic structures and therefore share growth opportunities and challenges. This
framework, however general, provides insight for business and policymakers with a new categorization upon which
to make decisions.

Source: McKinsey Global Institute (2010) Lions on the Move: The progress and potential of African economies.
Radial charts (opposite page) World Bank Development Indicators (2011)

Algeria Algeria Angola
Angola Algeria Algeria Angola
Sierra Leone 0
Sierra Leone 0 Chad Chad Sierra Leone0.0
Sierra Leone 0 Chad Chad Sier
Mali Mali 0.1 10 Congo, Republic
Congo, Republic Mali Mali 10 Congo, Republic
Congo, Republic Ma
100.0 0.1
nea Ethiopia Ethiopia 20 EquatorialEquatorial
Guinea Guinea Ethiopia Ethiopia 20 EquatorialEquatorial
Guinea Guinea Ethiopia
0.2 0.2
DRC 30 Gabon Gabon DRC DRC 200.0 30 Gabon Gabon




0.3 0.3

40 40


0.4 50
Libya Libya 300.0 Libya Libya
geria Zambia Zambia 0.5 60 Nigeria Nigeria Zambia Zambia 60
0.5 Nigeria Nigeria
400.0 Zambia
70 70
0.6 0.6
Uganda Uganda 80 Uganda Uganda 500.0 80 Uganda
0.7 90 0.7
Cte d'Ivoire Tanzania Tanzania 0.8 100 Cte d'Ivoire Tanzania Tanzania
Cte d'Ivoire 600.0 100
0.8 Cte d'Ivoire
Cte d'Ivoire Tanzania
gypt Senegal Senegal Egypt Egypt Senegal Senegal Egypt Egypt Senegal
rocco Mozambique
Mozambique Morocco Morocco Mozambique
Mozambique Morocco Morocco Mozambique
bia Kenya Kenya Namibia Namibia Kenya Kenya Namibia Namibia Kenya
ica Ghana Ghana South Africa
South Africa Ghana Ghana South Africa
South Africa Ghana
CameroonCameroon Tunisia Tunisia CameroonCameroon Tunisia Tunisia Cameroon
Sudan Sudan BotswanaBotswana Sudan Sudan BotswanaBotswana
Rwanda Rwanda Madagascar Rwanda Mauritius
Rwanda Madagascar Madagascar
MauritiusMauritius Madagascar Mauritius Madagascar
Human Development
Improved Index(%
water source (HDI)
of population with access) HealthImproved
Human persource
water ofIndex US$) with access)
World average (=0.624) OECD average (=0.879;
World average (=86.8%) off scale)
OECD average (=99.0%) World average (=857.1; off average
WorldWorld scale)
average OECD average
(=86.8%) OECD(=4653.8;
OECD off scale)
average off scale)
(=99.0%) World av

Algeria Angola
Algeria Angola Algeria
Algeria Angola
Algeria Angola
0.0 Angola Angola
Sierra Leone
Sierra Leone0
Leone 0.0 Chad
Chad Chad Sierra
Sierra Leone
Sierra Leone Leone0.0 00
0.0 Chad ChadChad Sier
Mali Mali 100.0 Congo,
Congo, Republic
Congo, Republic Mali Mali
Mali 10 Congo,
Congo, Republic
Congo, Republic Republic Ma
10.0 5.0 10.0 Ma
nea Ethiopia
Ethiopia Ethiopia 200 Equatorial Guinea
Guinea Guinea Ethiopia
Ethiopia Ethiopia 200
20 EquatorialEquatorial
Guinea Guinea
Equatorial Guinea Ethiopia
20.0 20.0 Ethiopia
Gabon 10.0 30
DRC Gabon Gabon

DRC DRC 200.0
400 30.0 Gabon Gabon DRC DRC DRC
DRC 30.0 Gabon DRCDRC


40.0 Libya 15.0 40.0
(117) 300.0
600 50.0
Libya Libya (117) 50 600
Libya Libya
Libya (117)
20.0 60
geria Zambia
Zambia Zambia 400.0 60.0 Nigeria
Nigeria Nigeria Zambia Zambia
Zambia 60.0 Nigeria Nigeria
Nigeria Zambia
800 800
70.0 25.0 70.0
Uganda Uganda 500.0 80.0 Uganda Uganda 80
80.0 Uganda
1000 Uganda 30.0 1000 Uganda
90.0 90
Cte d'Ivoire Tanzania
Tanzania Tanzania 600.0
1200 100.0
Cte d'Ivoire
Cte d'Ivoire Tanzania Tanzania
d'Ivoire Tanzania 35.0 100
100.0 Cte
Cte d'Ivoire
Cte d'Ivoire d'Ivoire Tanzania
gypt Senegal
Senegal Senegal Egypt
Egypt Egypt Senegal Senegal
Senegal Egypt Egypt
Egypt Senegal
rocco Mozambique
Mozambique Morocco
Morocco Morocco Mozambique
Mozambique Morocco Morocco
Morocco Mozambique
bia Kenya
Kenya Kenya Namibia
Namibia Namibia Kenya Kenya
Kenya Namibia Namibia
Namibia Kenya
ica Ghana Ghana South Africa
South Africa Ghana Ghana
Ghana South
South Africa
South Africa Africa Ghana
CameroonCameroon Tunisia
Tunisia Tunisia CameroonCameroon
Cameroon Tunisia Tunisia
Tunisia Cameroon
Sudan Sudan Botswana
BotswanaBotswana Sudan
Sudan Sudan BotswanaBotswana
Rwanda Madagascar
Rwanda Mauritius Madagascar Rwanda Rwanda Madagascar
Rwanda Mauritius Madagascar
Mauritius Mauritius Madagascar Mauritius Mauritius Madagascar
Health ratio
Maternal mortality Expenditure
Mobile perestimate,
cellular Capita (Current
subscriptions US$)
per 100,000
(per 100live births)
people) MaternalImproved
Mobile water
Internet source
ratio (%estimate,
per 100
cellular ofinhabitants
(perper with access)
people) live births) Maternal m
World average (=857.1; off(=260)
scale) OECD
average(=4653.8; off scale) World average
World average
World average (=59.3) (=24.8)
OECD average (=100.0) World average
World average(=86.8%)
average (=260)
(=59.3) OECD
OECD average
OECD average
average (=99.0%)
(=100.0) Worl


Algeria Angola Algeria Angola
Sierra Leone 0.0
0.0 Chad Sierra Leone 0.0 Chad Sier
Mali Congo, Republic Mali 10.0 Congo, Republic Ma
nea Ethiopia Equatorial Guinea Ethiopia 20.0 Equatorial Guinea Ethiopia
10.0 30.0
DRC Gabon DRC Gabon DRC
15.0 40.0
Libya 50.0 Libya (117)
20.0 60.0
geria Zambia Nigeria Zambia Nigeria Zambia
25.0 70.0
Uganda Uganda 80.0 Uganda
Cte d'Ivoire Tanzania 35.0 Cte d'Ivoire Tanzania 100.0 Cte d'Ivoire Tanzania

gypt Senegal Egypt Senegal Egypt Senegal

rocco Mozambique Morocco Mozambique Morocco Mozambique
bia Kenya Namibia Kenya Namibia Kenya
ica Ghana South Africa Ghana South Africa Ghana
Cameroon Tunisia Cameroon Tunisia Cameroon
Sudan Botswana Sudan Botswana
Rwanda Madagascar Rwanda
Mauritius Mauritius Madagascar
Estimated Internet users per 100 inhabitants Mobile cellular subscriptions (per 100 people) Maternal m
World average (=23) OECD average (=23.9) World average (=59.3) OECD average (=100.0)

Structural barriers to economic growth
Widespread infrastructure Unfavorable global TIME TO EXPORT
deficit rules Denmark 5
This graph compares the number of
days required before an entrepreneur
can export. Denmark as the country
Despite the proliferation of programmes The unbalanced global economic Mauritius 13 with the least amount of time to
to remedy Africas infrastructure deficit, system and its out-dated set Seychelles 17 export is included as a benchmark.

Source: World Bank 2011, Doing Business Report: Making a

the continent remains plagued by a of rules heavily disadvantage Swaziland 18
crippling lack of energy, transport and Africa. Bloated subsidy regimes, Madagascar 21

Difference for Entrepreneurs. SADC Regional Profile

telecommunication infrastructure. Current quotas, as well as high tariff and
non-tariff barriers constrain its Mozambique 23
annual investment needs are estimated
potential to escape unfavourable Tanzania 24
at USD 93 billion, with more than one
trading patterns and diversify its Botswana 28
third remaining unfunded and insufficient
maintenance creating additional needs economies. Namibia 29
for expensive rehabilitation. The World South Africa 30
Bank estimates that if Sub-Saharan Africa Lesotho 31
could improve its infrastructure to the Poor market quality SADC Regional
levels comparable with those in Mauritius, The majority of African markets Malawi 41
its growth of real GDP per capita would are plagued by their small market DRC 44
increase by 2.3 per cent a year. sizes, ethnic segmentation, Zambia 44
high-percentage of informal Angola 52
activity, significant productivity
ROAD DENSITY Zimbabwe 53
gaps, skill mismatches, and low
500 461 competitiveness. Particularly 0 10 20 30 40 50 60
Kilometers per 100 square

Paved road density

kilometers of arable land

Total road density financial markets are still poorly Number of days
400 381
200 Malaysia* 450 This graph compares the cost per
Poor regulatory

Source: World Bank 2011, Doing Business Report: Making a

134 container to export. Malaysia as the
106 Mauritius 737 country with the lowest cost to export
34 29
environments Seychelles 876 is included as a benchmark.

0 Despite notable reforms in some Mozambique 1,100

African Other African Other
low-income low-income middle-income middle-income countries, Africa remains a Madagascar 1,197

Difference for Entrepreneurs. SADC Regional Profile

difficult place for entrepreneurs Tanzania 1,262
ELECTRICITY which face greater regulatory South Africa 1,531
700 Generation capacity 648 and administrative burdens,
Lesotho 1,680
Electricity coverage and less protection of property
Lines per thousand population

600 Namibia 1,686

and investor rights than in other
regions. Complex tax codes Malawi 1,713
and high compliance burdens Swaziland 1,754
400 imposed by an inefficient tax Angola 1,850
293 administration are powerful (SADC) Regional 1,856
300 average
incentives for small enterprises to Zambia 2,664
200 remain informal. Botswana 3,010
88 Zimbabwe 3,280
39 14 41 37 DRC 3,505
African Other African Other 0 1,000 2,000 3,000 4,000
low-income low-income middle-income middle-income
USD per container


100 Insufficient access to finance
Per cent of population covered

Improved water 91
Improved sanitation 82 82 With FDI concentrating in the extractive sectors of
80 72 a limited group of resource-rich countries, high
61 risk ratings driving the cost of credit, and poorly
60 53 53
developed financial markets, most Africans
40 34 have very limited access to finance. The
consequences are significant. Low rural
access to credit hampers agricultural
Source: Yepes, Pierce and Foster in World Bank and the Agence

0 productivity, inadequate access to

African Other African Other
finance by SMEs impedes private sector
Francaise de Dveloppment (2010) Africas Infrastructure

low-income low-income middle-income middle-income

development in industry or high-value
TELEPHONE added services, and limited access to trade
600 557
finance constrains the diversification of exports.
Main line density
By remodeling risk-weighted assets, Basel II, the new
Lines per thousand population

Mobile density
Internet density framework for banking supervision and regulation, may
further adversely affect the cost of financing and inhibit cross-
border financial flows to countries where public and private
277 borrowers are rated at a higher level of risk such as LDCs.
252 235
This figure shows the worldwide
142 distribution of deposit accounts in
Bank loans per 1,000 adults
institutions per thousand adults.
100 48 55 Predicted values are used when data
38 29 8.2
49 or fewer
9 2 are not available.
African Other African Other 50 - 299 Source: Kendall, Mylenko and Ponce (2010) Measuring Financial
low-income low-income middle-income middle-income 300 - 799 No data Access around the World

Structural DRIVERS to economic growth
Demographic change Spread of technology Renewable energy
In contrast to what is happening in much Whether by connecting people with Africa has enormous potential for
of the rest of the world, Africas labour each other, linking rural areas to the energy production from renewable
force is continuing to expand. The world, spreading knowledge, improving sources solar, hydro, wind and
continent currently has more than 500 healthcare delivery or providing a basis geothermal. Almost all Sub-Saharan
million people of working age. By 2040, for small businesses through mobile African countries have sufficient
their number is projected to exceed banking, the rapid spread of information renewable resources, exploitable
1.1 billion. Over the last two decades, and communication technologies has with current technologies, to satisfy
three-quarters of the continents changed how Africas people interact many times their current energy
increase in GDP per capita came and its economies function. But the demand. (See chart on page 45.)
from an expanding workforce, the rest benefits of new technologies are in other
from higher labour productivity. While sectors, such as manufacturing, where
population growth can create intense they are allowing African countries to
pressure on resources, public institutions leap frog development stages.
and social stability, it also provides an
enormous opportunity for the continent.
examples of growing Population Deepening regional integration holds
(ages 15-59) 450 enormous potential for economic
Route kilometers (thousands)

70 400
growth and social development
across the continent. According to
Per cent of total population

350 UNCTAD, an investment of $32 billion
300 to improve the main intra-African
60 road network alone could generate
around $250 billion in additional trade
55 200 over a period of 15 years. As part of
a broader development strategy,
50 regional integration can enhance
100 productive capacity, intensify
50 economic diversification, and
improve competitiveness. Pooled
0 0 resources and economies of scale
2005 2015 2025 2035 2045 1990 1995 2000 2005
would also allow African countries
Ghana Madagascar Fixed-line operators Mobile operators to participate more effectively in the
Namibia Uganda global economy.
Note: Data through 2050 are based on the United Na-
tions medium variant projection series.
Source: Ashford (2007) Africas Youthful Population: Source: Williams (2010), Broadband for Africa: Backbone
Risk or Opportunity? Population Reference Bureau. USA. Networks in Sub-Saharan Africa, World Bank, USA.

Rise in domestic consumption Rise in global demand

By 2014, the number of households with income Africa will continue to profit from rising global demand for oil, natural
of $5,000 or more is expected to reach 106 gas, minerals, food, and arable land. Fast growing demand for raw
million. Africa already has more middle-class materials has both positive and negative effects. On the negative
households (defined as those with incomes side, it may discourage or at least slow the build up of other sectors.
of $20,000 or above) than India. Africas rising On the positive side, it will induce FDI not only to explore the resources,
consumption will create more demand for local but also to develop infrastructure to reach and transport them which
products, sparking a virtuous cycle through are bound to have positive spill-over effects.
a growth in discretionary income. As a result,
consumer-facing sectors such as retailing, REGIONAL DISTRIBUTION OF FDI IN AFRICA
banking, and telecom are set to grow fast.
North Africa
Increasing urbanization USD 24 billion
(slight decrease from 2007)
The high urbanization rate of the African continent
which exceeds that of any other region can be
a great asset by boosting productivity, demand,
and investment by creating economies of scale.
West Africa
There is a clear need to avoid urban crowding USD 26 billion
and slumification. (increased from 2007) East Africa
USD 6 billion
(increased from 2007)
70 1,400
Urban population share of the total

60 1,200
The 2009 Revision in UN-Habitat (2010)

Central Africa
Source: World Urbanization Prospects:
African population (%)

Population (millions)

50 1,000 USD 4 billion

(increased from 2007)
40 800
The State of African Cities.

30 600

20 400 Southern Africa

USD 27 billion
10 200 (increase from 2007, mainly
driven by large inflows to South
0 0 Africa and Angola)
1950 1960 1970 1980 1990 2000 2010*2020* 2030* 2040* 2050*
*Projections Source: Adapted from UNCTAD World Investment Report 2009


Governance elections held over the last year were won by the
incumbents some of whom have been in power for
well over two decades.31 Unfortunately, this trend

T he last year has seen significant developments on appears set to continue as only four of the fifteen
all levels of political and economic governance. countries holding elections over the next year (not
Nationally, democratic recessions and leadership counting the planned elections in Egypt and Tunisia)
deficits are threatening to overshadow significant will not include the incumbent seeking re-election.32
improvements in economic governance in several As the Economists Democracy Index indicates, an
countries. Regionally, African states and their increased number of elections has not necessarily
organizations continue to pursue a growing array of translated into a greater choice of candidates or
cooperative and integrative efforts despite capacity more democracy for the majority of Africans.33
constraints. Globally, the drive for much-needed
systemic reforms has stalled despite high hopes and This trend compounds the continents chronic
repeated declarations to the contrary. governance problems, including state fragility,
endemic corruption and widespread lack of basic
freedoms.34 With several leaders having extended
their tenures indefinitely, including by adjusting
National Governance constitutions and removing term limits, the disconnect
between rulers and their citizens as well as between

O verall, the quality of national governance as

measured by indices like the Ibrahim Index
of African Governance has remained virtually
elites and the broader population remains an
unfortunate characteristic of many African countries.

unchanged this year.29 However, as with the But there are also signs of hope. Last year has seen the
continents economic growth, the averages hide adoption of new and improved constitutions in Kenya
significant variations and trends across various and Niger, a peaceful referendum in South Sudan, the
components. While many countries have seen first democratic elections in Guinea, and the fall of
impressive improvements in economic governance, autocratic regimes in Tunisia and Egypt. Together with
nearly two-thirds have also seen disconcerting the popular uprising in Libya, these transitions highlight
deteriorations in political participation, human rights, new dynamics of accountability and increased
physical security and the rule of law.30 pressure on governments to deliver tangible results
to their citizens. Several countries, including Liberia
The refusal of Laurent Gbagbo to relinquish power and Mauritius, have made remarkable progress in
to the recognized winner of last years presidential improving accountability, and more countries are
elections in Cte dIvoire and the heavy-handed implementing regional and global good-governance
response of Muammar al-Gaddafi to calls for political initiatives, including the African Governance Platform.
change in Libya are cases in point. However, while the By early 2011, 31 countries had acceded to NEPADs
attempt of some leaders to cling to power has been African Peer Review Mechanism (one more than last
the most visible expression of democratic recessions, year), and 14 countries had been peer-reviewed (two
others, including the dominance of the incumbent, more than last year) and were slowly implementing
are equally worrying. Six of the nine presidential the reviews recommendations.

South Sudan: Africas youngest nation

Following a peaceful referendum in January 2011, in which over 98 per cent of the voters endorsed
independence, South Sudan is set to become Africas newest nation on 9 July 2011. Governing the largely
undeveloped country will not be easy. Despite significant mineral wealth and great agricultural potential,
the new state will face challenges of public-service provision, economic governance, and peace and
security. It will also need to clarify important issues with North Sudan, particularly concerning demarcation
of the border (the longest in Africa), citizenship, and the sharing of oil revenues. While the government led
by President Salva Kiir and his successors will bear the main responsibility for tackling these challenges, it will
need significant support from within and outside the continent to ensure that South Sudan gets off to a good
start without further instability in the region.

The Transformative Power of Partnerships

M ost progress was undoubtedly made in the

area of economic and resource governance.
Many African countries significantly improved their
of total revenues, leaving these nations vulnerable
to shocks.37

domestic resource mobilization by deepening the Many countries have made progress in curbing
tax base, strengthening tax administration and corruption, particularly in the extractive sector. Twenty-
formalizing the informal sector. While the trend of tax one resource-rich African countries have now joined
revenues is positive, in some countries, like Burundi, the Extractive Industries Transparency Initiative (EITI)
the Democratic Republic of Congo, Ethiopia and and adopted its stringent standards on the verification
Guinea-Bissau, annual per capita taxes are still and publication of private-sector payments. The
as low as $11.35 Many countries still collect only Central African Republic, Ghana, Liberia, Niger, and
half of what would be expected given their living Nigeria are already fully compliant. Nonetheless, Sub-
standards and economic situation.36 Elsewhere, tax Saharan Africa continues to rank last in the Revenue
revenues are still dominated by taxes related to Watch Index, measuring governments willingness to
resource extraction, which can be up to 66 per cent disclose information on their resource revenues.38

Partnering around transparency in extractive industries

The Extractive Industries Transparency Initiative (EITI) is a partnership of governments, companies, civil
society groups, investors and international organizations that supports transparency and good governance
through verification and publication of payments and revenues from oil, gas and mining ventures. While
the responsible use of reported revenues naturally depends on national governments, EITI has already led
to improved investment climates, promoted economic and political stability for host governments, and
mitigated political and reputational risks for companies and investors. It shows how a partnership can help
define and advocate for sensible standards and then support their implementation. Given the importance
of commodity exports to many African economies, there is great scope to expand this type of initiative
beyond extractive industries.

A fricas international partners have continued to

make progress in controlling corruptive practices
of their companies operating on the continent. The
countries. Empowered by advances in information and
communication technology including social media
(such as Twitter and Facebook) and crowdsourcing
United States Dodd-Frank Wall Street Reform and platforms for social activism (such as Ushahidi), they
Consumer Protection Act of July 2010, for example, provide a crucial complement to governments and
requires all oil, mining and gas companies registered the private sector, and keep both sides accountable
with the US Securities and Exchange Commission to each other and to the people.
to report their payments to foreign governments by
country and by project. Hong Kong has recently However, parliaments, opposition parties and civil
introduced similar conditions for companies listed on its society organizations are still too weak in many
exchange, and France and the United Kingdom have African countries to provide effective checks and
recently revised their national anti-bribery laws and are balances to entrenched political elites.40 According
pushing for improved transparency laws at European to Transparency International, corruption also remains
level. At their November 2010 summit, G20 states widespread, costing the continent billions of dollars
agreed an ambitious anti-corruption action plan.39 a year.41 In many areas, the fight against quiet
corruption the failure of public servants to deliver
Another encouraging sign is the growing role of civil goods and services paid for by governments remains
society organizations and independent oversight an uphill struggle.42 Accelerating population growth,
institutions across Africa. While still unduly limited by organized crime, drug trafficking and illicit trade, as
some governments, such organizations are becoming well as climate change, are adding new pressures on
an increasingly vocal and essential cornerstone of local and national governance systems, particularly
democratization and anti-corruption efforts in many in fast-growing cities and remote rural areas.

Many countries have made progress in curbing corruption,

particularly in the extractive sector.

Country Name of leader Years Year of last Registered The leader Constitutional Constitutional Countries holding
(*incumbent president winner of last in power Presidential voters (1) originally change in change in the presidential
election) Election out of total came to the last 10 last 10 years: elections 2011-
(% won by) population (2) power years that Qualitative 2012
(million) through a favours the improvement (*incumbent
coup incumbent (3) of constitution seeking
(year) (years) (4) reelection)
Sources: International Institute for Democracy and Electoral Assistance (IDEA) Voter Turnout Database, Electoral Institute for the Sustainability of Democracy in Africa (EISA), BBC Country Profiles, CIA Factbook,

Algeria President Abdelaziz BOUTEFLIKA* 12 2009 18.1 / 35 2008


Angola President Jose Eduardo DOS SANTOS* 31 1992 4.8 / 13.3 2010 2012 (*)

Benin President Thomas YAYI BONI* 5 2011 (53%) 4.3 / 9.3 2011 (*)

Botswana President Seretse Khama Ian 3 0.7 / 2.1


Burkina Faso President Blaise COMPAORE* 23 2010 3.9 / 16.7 1987 2002

Burundi President Pierre NKURUNZIZA* 5 2010 3.5 / 10.2 2005


Cameroon President Paul BIYA* 28 2004 4.7 / 19.7 2008 2011 (*)

Cape Verde President Pedro Verona 10 2006 0.3 / 0.5 2011

Rodrigues PIRES* (51.2%)

Central African Republic President Francois BOZIZE* 8 2011 1.3 / 4.9 2003 2010 2011 (*)

Chad President Lt. Gen. Idriss DEBY 20 2006 5.7 / 10.8 1990 2005 2011 (*)
ITNO* (64.7%)

Comoros Ikililou DHOININE Will take 2010 0.3 / 0.8 2001

office (61.1%)
May 2011

Congo President Denis SASSOU- 13 2009 1.7 / 4.2 1997 2002

Nguesso* (78.6%)

DRC President Joseph KABILA* 10 2006 (58%) 25.4 / 71.7 2011 2011 (*)

Cte d'Ivoire President Alassane OUATTARA >1 year 2010 5.5 / 21.5

Djibouti President Ismail Omar GUELLEH* 12 2011 (80%) 0.2 / 0.8 2010 2011 (*)
African Election Project 14 Oct 2009 Rights Group Encourages Responsible Voting and IFES Election Guide.

Egypt Former President Mohamed Hosni 29 2005 31.8 / 82.1 2011

MUBARAK* (88.6%)

Equatorial Guinea President Brig. Gen. (Ret.) 31 2009 0.2 / 0.7 1979
Teodoro OBIANG NGUEMA (95.8%)

Eritrea President Isaias AFWORKI 18 1993 (95%) n/a / 5.9

Ethiopia President GIRMA 9 2007 (79%) n/a / 90.9


Gabon President Ali Ben BONGO 1 2009 0.5 / 1.6

ONDIMBA (41.7%)

Gambia President Yahya JAMMEH* 14 2006 0.7 / 1.8 1994


Ghana President John Evans Atta MILLS 2 2008 12.5 / 24.8


Guinea President Alpha CONDE >1 year 2010 5 / 10.6 2010


Guinea-Bissau President Malam Bacai SANHA 1 2009 0.5 / 1.6


Kenya President Mwai KIBAKI* 8 2007 (46%) 14.3 /41.1 2010

Lesotho King LETSIE III 15

Prime Minister Pakalitha MOSISILI 13 2007 0.9/ 1.9


Liberia President Ellen JOHNSON SIRLEAF 5 2005 1.3 /3.8 2011 (*)

Libya Revolutionary Leader Col. 41 n/a / 6.6 1969

Muammar Abu Minyar AL-

Madagascar Andry RAJOELINA 2 n/a /21.9 2009 2010 2011 (*)

Malawi President Bingu wa MUTHARIKA* 7 2009 (66%) 5.9 /15.9

Country Name of leader Years Year of last Registered The leader Constitutional Constitutional Countries holding
(*incumbent president winner of last in power Presidential voters (1) originally change in change in the presidential
election) Election out of total came to the last 10 last 10 years: elections 2011-
(% won by) population (2) power years that Qualitative 2012
(million) through a favours the improvement (*incumbent
coup incumbent (3) of constitution seeking
(year) (years) (4) reelection)

Mali President Amadou Toumani 9 2007 6.9 /14.2 2012

TOURE* (71.2%)

Mauritania President Mohamed Ould Abdel 1 2009 1.1 /3.3 2008

AZIZ (52.6%)

Mauritius President Sir Anerood JUGNAUTH* 7 2008 n/a / 1.3

Morocco King MOHAMMED VI 11

Prime Minister Abbas EL FASSI 3 n/a / 32

Mozambique President Armando GUEBUZA* 6 2009 9.9 / 23


Namibia President Hifikepunye POHAMBA* 6 2009 1 / 2.2


Niger President Mahamadou ISSOUFOU >1 year 2011 (58%) 5.2 / 16.5 2010 2011

Nigeria President Goodluck JONATHAN 1 n/a / 155.2 2011 (*)

Rwanda President Paul KAGAME* 11 2010 3.9 / 11.4 2003


So Tom and Prncipe President Fradique Bandiera 9 2006 (60%) 0.1 / 0.2 2011

Senegal President Abdoulaye WADE* 11 2007 4.9 / 12.6 2001 2012 (*)

Seychelles President James Alix MICHEL* 7 2006 0.1 / 0.1 2011 (*)

Sierra Leone President Ernest Bai KOROMA 3 2007 2.6 / 5.4 2008 2012 (*)

Somalia Transitional Federal President 2 2009 n/a / 9.9


South Africa President Jacob ZUMA 2 2009 (69%) 23.2 / 49

Sudan President Umar Hassan Ahmad 17 2010 7.6 / 45 1989 2005

AL-BASHIR* (68.2%)

Swaziland King MSWATI III 25 2005

Prime Minister Barnabas Sibusiso 2 n/a / 1.4


Tanzania President Jakaya KIKWETE* 5 2010 20.1 /42.8


Togo President Faure GNASSINGBE* 6 2010 3.6 / 6.8


Tunisia Former President Zine El Abidine 23 2009 4.9 / 10.6 2002 2011
BEN ALI* (89.6%)

Uganda President Lt. Gen. Yoweri Kaguta 25 2011 10.4 / 34.6 1986 2005 2011 (*)
MUSEVENI* (68.4%)

Zambia President Rupiah BANDA 2 2008 3.9 / 13.9 2011 (*)


Zimbabwe President Robert Gabriel 23 2008 5.6 / 12.1 2011 (*)

MUGABE* (85.5%)
(1) Year of latest available data: Algeria 2004, Angola 1992, Benin 2006, Botswana 2009, Burkina Faso 2005, Burundi 2010, Cameroon 2004, Cape Verde 2006, Central African Republic 2005, Chad 2006,
Comoros 2006, Congo 2002, DRC 2006, Cote dIvoire 2000, Djibouti 2005, Egypt 2005, Equatorial Guinea 2002, Gabon 2005, Gambia 2006, Ghana 2008, Guinea 2003, Guinea-Bissau 2005, Kenya 2007, Liberia
2005, Madagascar 2006, Malawi 2009, Mali 2007, Mauritania 2007, Mozambique 2009, Namibia 2004, Niger 2004, Rwanda 2003, So Tom and Prncipe 2006, Senegal 2007, Seyschelles 2006, Sierra Leone
2007, South Africa 2009, Sudan 1996, South Sudan 2011, Tanzania 2010, Togo 2005, Tunisia 2004, Uganda 2006, Zambia 2008, Zimbabwe 2008.
(2) Total population 2011 estimate.
(3) Constitutional change includes the removal or extension of term limits, or the modification of their age limits.
(4) Constitutional change includes the decentralization or devolution of power, shortening or the creation of presidential term limits, the creation of anti-corruption or reconciliation mechanisms, and the
restoration of civilian rule.
Notes: Algeria: Constitutional amendment removed the presidential two-term limit in 2008. Angola: In 2010, the parliament approved a new constitution abolishing direct elections of the president.
Botswana: Parliamentary election in 2009, President elected by National Assembly. Burkina Faso: In 2002, constitutional amendment reduced the presidential term to five years. This has not been applied to
the incumbent president. Burundi: 2005 constitution guarantees representation of main ethnic groups, by setting out the share of posts they will have in parliament, government and in the army. Cameroon:
2008 constitutional amendment enables the incumbent president to run for a third term in 2011. Central African Republic: The 2010 constitutional amendment extended the terms of the President and
the National Assembly when it became apparent that, for technical reasons, elections could not be held in time. Chad: 2005 referendum removed constitutional term limits. Comoros: 2001 constitutional
referendum granted the islands of Grande Comore, Anjouan, Moheli greater autonomy within the federation. Congo: 2002 constitutional referendum approved amendments aimed at consolidating
presidential powers. The presidential term was increased from five to seven years and the post of Prime Minister was abolished. DRC: January 2011 constitutional amendment eliminates the second round
of presidential elections. Djibouti: 2010 constitutional amendment allows the president to run for a third term. Egypt: Following Hosni Mubaraks resignation in early 2011, the military caretaker government
dissolved the constitution on 13 February 2011. Guinea: The 2008 coup was followed by the countrys first democratic elections and a new constitution in 2010. Kenya: Government of national unity. The new
constitution approved through a referendum in 2010 is set to reduce the power of the president, devolve power to the regions and abolish the position of prime minister. Lesotho: Parliamentary constitutional
monarchy. The Monarchy is hereditary with no legislative or executive powers. The leader of the majority party in the National Assembly is appointed Prime Minister. Madagascar: In 2009, elected President
Marc Ravalomanana was toppled by opposition leader Andry Rajoelina. In November 2010 voters approved a new constitution which lowers the minimum age for the president, allowing Rajoelina to
run for president. Mauritius: President was unanimously elected by National Assembly. Morocco: Morocco is a constitutional monarchy. The Prime Minister is appointed by the Monarch following legislative
elections. Niger: Coup in 2010 led to 2011 democratic transition. The 2010 constitution, approved in referendum, designed to restore civilian rule and return democracy after ousted President Mamadou
Tandja had changed the constitution to stay in power. Nigeria: President Jonathan assumed the presidency after the death of President YarAdua. Elections took place in April 2011, at time of print (18 April
2011) results were yet to be officially confirmed. Rwanda: 2003 constitution adopted through referendum is aimed at reconciliation and bans the incitement of ethnic hatred. It established a presidential
system of government with separation of powers between the three branches of government. Senegal: 2001 new constitution approved by referendum, which shortens presidential term, limits holder to
two terms (but also gives president power to dissolve parliament). Sierra Leone: 2008 constitutional amendment grants the Anti-Corruption Commission the power to prosecute offenses involving corruption.
Somalia: Somalia has a transitional, parliamentary federal government. The Transitional Federal President was elected by the expanded Transitional Federal Assembly in 2009. Sudan: Total population
includes population of Sudan and South Sudan. Interim National Constitution of 2005 is part of the Comprehensive Peace Agreement that ended the conflict in southern Sudan. Swaziland: Swaziland is a
monarchy. The Prime Minister is appointed by the Monarch from among the elected members of the House of Assembly. Constitution signed by the King in 2005 took effect in 2006 cementing the rule of the
King. Tunisia: President Ben Ali stepped down in Jan 2011. Interim President Fouad MBazaa was appointed in January 2011. 2002 Constitutional referendum included changes that abolished the three-term
limit for incumbent presidents and raised the age limit of a sitting president from 70 to 75, paving the way for the fourth term of former President Ben Ali. Uganda: 2005 constitutional amendments removed
presidential term limits and legalized a multiparty political system. Zimbabwe: Government of national unity. Zimbabwes 2011 election is set to take place after a constitutional referendum planned for 30
June 2011.


Regional Governance services and capital; peace and security; energy

and infrastructure; agriculture; trade; industry; and
investment and statistics).43 A growing number of
A frican states are increasingly acting on the
economic and political imperative of greater
regional integration. Over the last year, they have
regional and trans-regional initiatives, including the
Short Term Action Plan of the New Partnership for
Africas Development (NEPAD) and the Programme
continued to expand their cooperative and
for Infrastructure Development in Africa, as well as
integrative efforts in several areas and increasingly
innovative partnerships, are targeting the continents
rely on the political steering mechanisms of regional
serious deficit in connectivity infrastructure to drive
organizations for the coordination and pursuit of
increased physical integration through market
collective interests. Remarkably, these mechanisms
expansion and trade creation. Even though the East
are moving beyond mere geographic compositions
African Community had to postpone its plans to
in the form of Regional Economic Communities (RECs)
create a common currency by 2014, the creation of
to encompass functional cooperation on topics
regional customs unions, free trade areas and other
ranging from reform of the United Nations (Committee
means of converging macroeconomic policy, as
of Ten Heads of State on the UN Reform) to the
stipulated in the Abuja Treaty, is progressing in many
impact of and responses to the global economic crisis
(Committee of Ten African Ministers of Finance and
Central Bank Governors). Such functional and issue-
At the same time, Africas organizations remain
based cooperation has the potential to increase
plagued by widespread capacity deficits,
Africas bargaining power on the international stage.
fragmentation of efforts, lack of harmonization
and a tendency to concentrate on the formulation
At the 16th African Union Summit in January 2011,
of cooperation agreements rather than their
the continents leaders reaffirmed their commitment implementation.44 Many African states are struggling
to greater unity and integration through shared with the competing demands and agendas of their
values, and pledged to accelerate efforts in the various, often overlapping, memberships in regional
seven priority areas of the AUs Minimum Integration initiatives. Consequently, many decisions are not
Programme (free movement of persons, goods, being implemented at national level.45

The New Partnership for Africas Development

The New Partnership for Africas Development (NEPAD) is the economic development programme of the
African Union which aims to provide an overarching vision and policy framework for accelerating economic
cooperation and integration among African countries. It was set up in 2001 and integrated into the AU
structures in 2010. Focusing on six areas (agriculture and food security, climate change and natural resource
management, regional integration and infrastructure, human development, economic and corporate
governance, and cross-cutting issues such as gender and technology) it has helped to harmonize the policies
of African states. Through its African Peer Review Mechanism (APRM) which encourages conformity to an
agreed set of governance standards through periodic reviews it has also begun to institutionalize a spirit of
self-monitoring. While severe problems remain with regard to the implementation of some of its programme,
NEPAD clearly shows the value intergovernmental partnerships can add to individual development efforts.

Functional and issue-based cooperation has the potential

to increase Africas bargaining power on the international stage.

The Transformative Power of Partnerships

Africas international and

intra-regional flight connections
Air traffic to and from Africa accounted for 4.1% of egypt
best connected internationally

the global scheduled air traffic in January 2011. 2005 2010

Intra Africa main Intra Africa main
destinations*: Sudan (22), destinations*: Libya (40),
Comparing January 2005 and January 2011, weekly Libya (17), Morocco (8),
Nigeria (4)
Sudan (40), Nigeria (13),
Morocco (12)
number of flights has increased by 10.2% globally Connected to: 12 countries Connected to: 15 countries
International top International top
while weekly number of flights to/from Africa has destinations*: Saudi Arabia destinations*: Saudi Arabi
(75), Germany (63), United (214), United Kingdom
increased by 84.9%. Arab Emirates (55), United (113), United Arab Emirates
Kingdom (29) (103), Germany (97)
Connected to: 38 countries Connected to: 44 countries
The weekly number of intra-Africa flights grew
by 49.9% between January 2005 and January 2011. ethiopia
2005 2010
Intra Africa main Intra Africa main
senegal destinations*: Kenya (17), destinations*: Kenya (24),
Djibouti (14), Nigeria (10), Djibouti (19), Sudan (16),
2005 2010 Sudan (5) Nigeria (13)
Intra Africa main Intra Africa main Connected to: 18 countries Connected to: 25 countries
destinations*: Mali (20), destinations*: Mali (17), International top International top
Cte dIvoire (14), Cte dIvoire (14), destinations*: United Arab destinations*: United Arab
Morocco (8), Gambia (8) Morocco (14), Gambia (14) Emirates (10), Italy (9), Emirates (21), India (15),
Connected to: 14 countries Connected to: 16 countries India (6), Thailand (3) Thailand (10), Italy (9)
International top International top Connected to: 12 countries Connected to: 16 countries
destinations*: France (21), destinations*: USA (15),
Italy (8), Spain (8), USA (7) Spain (10), France (8),
Connected to: 8 countries Italy (4) Kenya
Connected to: 9 countries
2005 2010
Intra Africa main Intra Africa main
destinations*: Tanzania destinations*: Tanzania
GUINEA BISSAU (53), Uganda (29), South (102), Uganda (64), Sudan
least connected country Africa (24), Sudan (6) (45), South Africa (30)
Connected to: 25 countries Connected to: 29 countries
2005 2010
International top International top
Intra Africa main Intra Africa main destinations*: United destinations*: United
destinations*: Senegal (3) destinations*: Senegal (4) Arab Emirates (24), United Arab Emirates (26), United
Connected to: 1 country Connected to: 1 country Kingdom (18), Netherlands Kingdom (24), Netherlands
International top International top (14), India (10), Qatar (1) (15), Qatar (15), India (7)
destinations*: Portugal (2) destinations*: Portugal (3) Connected to: 12 countries Connected to: 15 countries
Connected to: 1 country Connected to: 1 country

best connected within africa
nigeria 2005 2010
democratic republic of congo
2005 2010 Intra Africa main Intra Africa main
2005 2010 destinations*: Mozambique destinations*: Zimbabwe
Intra Africa main Intra Africa main
destinations*: Ghana (32), destinations*: Ghana (48), Intra Africa main Intra Africa main (109), Botswana (89), (99), Botswana (90),
Ethiopia (10), Cte dIvoire South Africa (14), Egypt destinations*: South Africa destinations*: South Africa Namibia (87), Namibia (89),
(7), South Africa (4) (14), Ethiopia (13) (7), Kenya (7), Congo (7), (17), Ethiopia (10), Zimbabwe (55) Mozambique (71)
Connected to: 17 countries Connected to: 18 countries Ethiopia (1) Kenya (9), Congo (3) Connected to: 28 countries Connected to: 28 countries
Connected to: Connected to:
International top International top International top International top
7 countries 17 countries
destinations*: United destinations*: United destinations*: United destinations*: United
Kingdom (27), France (11), Kingdom (33), United Arab International top International top Kingdom (55), Germany Kingdom (55), United Arab
Netherlands (11), United Emirates (16), Germany destinations*: France (3), destinations*: France (3), (25), United Arab Emirates Emirates (42), Germany
Arab Emirates (6) (14), France (7) Belgium (2) Belgium (2) (14), Australia (9) (25), Australia (14)
Connected to: 8 countries Connected to: 11 countries Connected to: 2 countries Connected to: 2 countries Connected to: 23 countries Connected to: 22 countries

* The number of flights is a rounded average of the total number of departing flights per week for a selected country.
The average was computed using a representative week for each month over a whole year.

Number of flights to/from Africa Percentage increase of the number

per week and by region of flights per week to/from Africa
January 2008 - January 2011
7,000 50
45 46,2%
5,000 35
30 33,0%
Per cent

2,000 15
10 13,7%
0 0
Jan 2005 Jan 2008 Jan 2011 Europe Asia Middle East

Europe Middle East Asia North America South America

Source: Innovata LLC, IATA. Source: Innovata LLC, IATA.


Global Governance At the same time, the broad-based consensus on

the need to adapt global governance to changed

D espite repeated declarations, the public re- political and economic realities has not disappeared.
examination of global governance triggered by At their summit in Seoul in November 2010, the G20
the recent financial and economic crisis has not led nations agreed to a series of measures addressing
to significant changes to out-dated arrangements for global imbalances and pushing for further changes to
representation and decision-making. Also because governance structures of the IMF and World Bank.48
of the inadequate diplomatic capacity of many The French G20 Presidency has vowed to implement
governments, Africa remains heavily marginalized in these measures as part of its ambitious reform agenda
world affairs, with little control over how these affairs focusing on the modernization of the international
affect its people. monetary system. Also in November 2010, the EU
pledged to support Africa in its efforts to gain a
In fact, the recent crisis seems to have complicated permanent seat on the UN Security Council.49
Africas bid for a louder voice and greater
international representation. The inclusion of big South Africas membership in the G20 and the
emerging economies like Brazil, China and India, increasingly institutionalized participation of the AU
with their own (legitimate) concerns and priorities,46 and NEPAD in the groups meetings are important
risks further marginalizing less economically steps towards ensuring that Africas concerns and
powerful players. The G24, the intergovernmental priorities are taken into account in the proposed reform
group representing developing countries in the IMF efforts. They may also encourage greater African
and the World Bank, has calculated that the lions representation in other decision-making fora. It is
share of the promised 6 per cent shift in IMF voting unrealistic to expect individual representation of most
power is actually a shift from developing countries African countries in every important organization, and
to emerging economies, thus further reducing also unrealistic to expect single countries to set aside
Africas say in these organizations.47 The crisis has their own national concerns in order to represent the
added weight to specialized bodies such as the entire continent. Therefore, continental and regional
Basel Committee on Banking Supervision and the representation may prove the most effective way to
Financial Stability Board, on which Africa has very include African perspectives. Crucially, this may also
little representation even though its countries are help to improve the legitimacy of organizations like
directly affected by the decisions taken. the G20.

Africa remains heavily marginalized in world affairs,

with little control over how these affairs affect its people.

The Transformative Power of Partnerships

PEACE AND SECURITY the Lords Resistance Army in Northern Uganda,

can all be traced to the continuing existence
of ungoverned spaces and high state fragility

P ervasive conflict and insecurity continue to slow

Africas progress. More than one fifth of the
continents population remains directly affected by
throughout Africa.54

Many of these problems are further exacerbated by

conflicts which continue to destroy socio-economic increasing external stresses relating to accelerating
infrastructure, erode institutional capacity, climate change, global economic dynamics and
aggravate poverty and human suffering, and make increasingly volatile food prices. These raise the
it even more difficult to achieve the MDGs.50 likelihood of destabilizing large-scale population
movements and conflict over scarce natural
With at least nine countries experiencing major resources, including water and arable land.55
conflicts within their territories (two more than last
year) and the highest number of peacekeeping But the last year has also seen positive developments:
missions (five UN, three regional and one hybrid),51 the peaceful referendum in South Sudan, strides
Africa continues to rank as the world region least towards democracy in Tunisia and Egypt, and the
at peace.52 The seemingly intractable conflicts great progress Guinea and Niger have made towards
in the Great Lakes Region, Darfur and Somalia restored constitutional order and consolidated
continue, while democratic recessions, including peace. At intergovernmental level, operation
the protracted electoral crisis in Cte dIvoire, continues of the African Peace and Security
demographic change, increasing food and oil Architecture and the Regional Mechanisms for
prices, and growing inequalities have raised tensions Conflict Prevention, Management and Resolution. In
throughout the continent.53 The revolts in North November 2010, the AU began to assess procedures
Africa, and particularly the civil war in Libya and for deploying its African Standby Force, and three of
the international cooperation around the no-fly the five regional brigades have now been declared
zone, have added yet another dimension to Africas fully operational.56
complex security situation.
However, enormous capacity and harmonization
Most security challenges in Africa continue to problems persist at all levels of inter-African security
be a direct result of weak or poor governance, cooperation, as most states have been reluctant to
including the absence of effective state institutions. free resources for the new institutional architecture.
The ongoing spread of terrorism and organized As a result, the AU remains dependent on
crime includes drug trafficking and illicit trade, the international support to finance, equip and sustain its
proliferation of small arms and light weapons, and growing array of security initiatives. It is also subject
the pervasiveness of piracy around the Horn of Africa. to internal disagreements on central political issues
Residual transnational militancy and fluid forms of and principles, including the legitimacy of outside
cross-border violence, such as that perpetrated by intervention in African affairs.

Most security challenges in Africa continue to be a direct result

of weak or poor governance.


social development MDG Acceleration Framework, are under way to

identify, replicate and scale up success stories and
accelerate progress across the continent.61

A little over a decade after the Millennium

Declaration, many African countries remain
off-track to achieve the Millennium Development Poverty Alleviation
Goals by 2015. 57 While increasing numbers of

success stories highlight the possibility of rapid o the detriment of hundreds of millions of Africans,
improvements in all key sectors and some the continents strong economic growth has not
countries are on track to achieve most of their translated into widespread job creation and poverty
targets, overall progress continues to be slow. reduction. While there is still considerable controversy
It is hampered by exogenous trends such as around both the method of computation and the
accelerating climate change and by inadequate actual level of Africas poverty rate,62 it is certain that
policies, unmet commitments, lack of focus and many African countries will not reach their poverty-
accountability and insufficient dedication to reduction goals by 2015 despite strong GDP growth.
sustainable development by both African states UNCTAD projects that income per capita will grow at
and their international partners. only 2.7 per cent in 2011, and 2.8 per cent in 2012,
which is below the threshold of 3 per cent considered
A particularly worrying development is the increase as the minimum rate to make a substantial dent in
in inequality both within and across African poverty and far below the rate needed to achieve
societies.58 The UNDPs new inequality-adjusted the MDGs in most countries.63
Human Development Index (HDI) shows that the
human development ratings of African countries The need for greater progress is urgent. According
are substantially lower if adjusted for inequality in to the 2011 Rural Poverty Report of the International
the distribution of wealth. This adjustment reduces Fund for Agricultural Development (IFAD), Sub-
ratings of some countries, including the Central Saharan Africa is home to nearly one third of the
African Republic, Mozambique and Namibia, by worlds poor. While their share in the continents
up to 40 per cent.59 total population is declining, their absolute numbers
have increased from 268 million to 306 million over
The global financial crisis has also clearly shown the last decade.64 The UNDPs Multi-dimensional
the importance for African countries of creating Poverty Index, which complements money-based
mechanisms to protect the most vulnerable measures by considering multiple deprivations and
segments of their populations against unexpected their overlap, even puts the number of poor Africans
shocks. Despite the efforts of some countries to as high as 458 million.65
implement the AUs Social Policy Framework, basic
social security remains beyond reach for most While poverty remains a predominantly rural
Africans, with less than 5 per cent of the working- phenomenon throughout Africa, rapid urbanization
age population in Sub-Saharan Africa covered is adding an increasingly important dimension.66
by contributory pension schemes, unemployment The continent already has the highest incidence of
benefits or other social safety nets.60 As a result, slums over 62 per cent of the urban population
economic contraction and price volatility continue lives in such informal inner-city settlements and
to have a disproportionate effect on the poor. accelerating rural flight is bound to swell the ranks
of the urban poor.67 Increasingly volatile food prices,
But it is not all bad news. There is plenty of evidence the uncertainties and effects of climate change
that with the right policy mix and international and a range of natural-resource constraints will also
support, African countries can still achieve many of complicate efforts to reduce poverty.68 At the same
their MDG-based targets, particularly in the areas time, positive trends include increasing agricultural
of education and health. At the Review Summit productivity, growing international interest in bottom-
in September 2010, world leaders reaffirmed their of-the-pyramid business and the spread of mobile
commitment to achieve the goals by 2015 and a and affordable technology. These offer new and
number of promising initiatives, such as the UNDPs exciting opportunities for tackling poverty.

There is evidence that with the right policy mix and international support,
African countries can still achieve many of their MDG-based targets.

The Transformative Power of Partnerships

Partnering around mobile technology to tackle poverty

The mobile money transfer service M-Pesa (M stands for mobile, Pesa means money in Swahili) is one of
the best examples of the transformative power of partnerships. With the initial support of the UK Department
for International Development (DfID) through a matching fund, the Kenyan mobile-phone service provider
Safaricom has created a service which allows users to make and receive payments, transfer money to other
users and non-users, and deposit and withdraw money without needing to visit a bank. By relying solely on
the ubiquitous mobile phone, M-Pesa has significantly expanded financial access among Kenyas poor. By
bringing the unbanked into the market it has also created new markets for goods and services tailored to
mobile banking. Already serving more than 14 million users in Kenya, this type of service is being replicated in
other African countries including Rwanda, South Africa, Tanzania and Uganda. It clearly demonstrates that
partnerships for development can mature into self-sustaining and profit-making ventures with transformative

MDG SCORECARD Tracking MDG Progress
No data Tracking progress on MDG
l Achieved l On-track l Off-track/slow l Regressing achievement is an immense
challenge due to a lack
of sufficient, reliable, and
Millennium updated data. There are
Development Goals also inconsistencies between

1 2 3 4 5 6 7
national and global tracking
Eradicate Achieve Promote gen- Reduce child Improve Combat HIV/ Ensure efforts that make it difficult
extreme universal der equality mortality maternal AIDS, malaria environmental to compare progress across
poverty and primary and empower health and other sustainability countries and regions but
Country hunger education women diseases commendable efforts have
Algeria l l l l l l l been made.
Angola l l l l l l l This infographic illustrates
Benin l l l l l l l overall MDG progress as
Botswana l l l l l l l seen in the African Economic
Outlook 2010 Report.
Burkina Faso l l l l l l l
Burundi l l l l l l l 2009 and 2010 data from
Cameroon l l l l l l other progress reports
highlight the following:
Cape Verde l l l l l l l
Central African Republic l l l l l l l
Chad l l l l l l l GOAL 1: POVERTY AND
Comoros l l l l l l l HUNGER
Congo, Republic l l l l l l l Despite progress in
DRC l l l l l l l many countries, the number
of people suffering from
Cte dIvoire l l l l l l l hunger on the continent has
Djibouti l l l l l l l increased.
Egypt l l l l l l l Ghana, Liberia, Sierra Leone,
Equatorial Guinea l l l l l l l Ethiopia, DRC, Angola,
Eritrea l l l l l l l Mozambique and Malawi
Ethiopia l l l l l l l made the most progress in
GDP growth rate per person
Gabon l l l l l l l employed. Many countries
Gambia l l l l l l l increased labour productivity
Ghana l l l l l l l but Comoros, Rwanda,
Guinea l l l l l l l Equatorial Guinea, Chad,
Mali, Namibia, Tunisia, Eritrea,
Guinea Bissau l l l l l l l Botswana and Lesotho
Kenya l l l l l l l showed a decline between
Lesotho l l l l l l l 1992 and 2008.
Source: Progress towards the Millennium Development Goals, African Economic Outlook 2010

Liberia l l l l l l l In Burkina Faso, Comoros,

Libya l l l l l l l Djibouti, Lesotho, Zimbabwe,
Madagascar l l l l l l l Morocco, Libya and
Madagascar the prevalence
Malawi l l l l l l l of underweight children
Mali l l l l l l l increased.1 Undernourished
Mauritania l l l l l l l population decreased in
Nigeria and Ghana, but
Mauritius l l l l l l l increased in Gambia.
Morocco l l l l l l l Liberia,and Sierra Leone.2
Mozambique l l l l l l l
According to IFPRI, African
Namibia l l l l l l l countries that achieved the
Niger l l l l l l l most progress in combatting
Nigeria l l l l l l l hunger are: Angola, Ethiopia,
Ghana and Mozambique.
Rwanda l l l l l l l The largest deterioration
So Tom and Principe l l l l l l between 1990 and 2010 is
Senegal l l l l l l l seen in the DRC and Burundi,
Seychelles l l l which together with Chad
and Eritrea have the most
Sierra Leone l l l l l l alarming 2010 Global Hunger
Somalia l l l l l Index scores.3
South Africa l l l l l l l
Sudan l l l l l l
Swaziland l l l l l l l
Tanzania l l l l l l l
1 Data not available for Burundi, Cameroon,
Togo l l l l l l l Congo, Equatorial Guinea, Ethiopia, Gabon,
Tunisia l l l l l l l Guinea-Bissau, Mauritius, Sierra Leone,
Somalia, South Africa, Swaziland Tunisia, Sao
Uganda l l l l l l l Tome and Principe, and Cape Verde
Zambia l l l l l l l 2 FAO 2009 The State of Food Insecurity in
the World Economic Crisis
Zimbabwe l l l l l l l 3 International Food Policy Research Insti-
tute (IFPRI) (2010) Global Hunger Index
Satisfactory 44% 52% 69.8% 44.2% 13.5% 35.3% 28.3%
performance ratio

African countries EMPOWERMENT Overall African under- HEALTH
continue to show The gender parity index five mortality rate DRC, Ethiopia and
overall progress in in primary education (U5MR) declined at an Nigeria, account for
net enrollment in primary (1991-2007) shows that insufficient rate to attain the 50% of all maternal deaths
education where Ethiopia, Equatorial Guinea, Eritrea, MDG target between 1990 globally. Although the
Guinea, Malawi, Mali, Madagascar, Namibia, South and 2008.U5MR progress has Maternal Mortality Ratio has
Madagascar, Mauritania and Africa, Swaziland and have been most striking in Eritrea fallen in both Nigeria and
Morocco showed significant regressed. Mauritius is the only and Malawi, Ethiopia, Malawi, Ethiopia, it needs to fall at a
improvement as did Burkina country that has managed Mozambique and Niger.1 much faster rate for the overall
Faso, Burundi, Djibouti, to maintain gender parity picture to change1.
Gambia, Ghana, Niger, for the same period. Other Progress remains slow in
Rwanda, Senegal, Swaziland countries have only marginally Mauritania, So Tom and Most African countries are
and Togo. DRC and increased gender parity. Prncipe, Central African unlikely to achieve the
Equatorial Guinea reversed Republic and Swaziland. target as only ten countries
progress (1991- 2007). Womens representation in have reached an over 50%
African parliaments has made Between 1990-2008, there was contraceptive prevalence rate:
Guinea, Morocco, significant progress. Of 37 no change in DRC or Somalia. Mauritius, Morocco, Algeria,
Mauritania, Tunisia, Malawi, countries only six Guinea- while in Chad, Congo, Kenya, Cape Verde, Egypt, South
Madagascar, Tanzania and Bissau, So Tom and Prncipe, South Africa and Zimbabwe, Africa, Tunisia, Zimbabwe,
Togo have made significant Congo, Equatorial Guinea, the U5MR increased. Namibia, and Swaziland.
progress in improving primary Egypt and Cameroon show Infant Mortality Rate (IMR)
completion rates while that parliamentary seats Algeria, Libya, Tunisia, and
declined between 1990 and Morocco report the lowest
Burundi and Mauritius were held by women decreased 2008. Mozambique recorded
the only two countries to between 1990 and 2009. The adolescent birth rates on the
the greatest reduction, continent. It is highest in Chad,
register a setback.1 most progress was seen in followed by Malawi, Niger and
Rwanda followed by Angola, Mali, Mozambique and Niger.2
Ethiopia. Kenya was the worst
Mozambique, South Africa, performer, followed by Chad, 1 The Lancet (Hogan et al., 2010)
1 AU, AfDB, UNECA and UNDP (2010) Assess- and Uganda.1 Congo, Lesotho, South Africa, 2 AU, AfDB, UNECA and UNDP (2010)
ing Progress in Africa toward the Millennium
Development Goals, MDG Report 2010 1 AU, AfDB, UNECA and UNDP (2010) and Zimbabwe.
Between 2000 and 2008,
16 countries increased their Nigeria, So Tom and
GOAL 6: HIV/AIDS, Malaria mortality has dropped measles immunization: Prncipe, Senegal, Sierra
MALARIA AND OTHER in Ethiopia, Mozambique, Angola, Burkina Faso, Leone and Sudan. Benin,
DISEASES Rwanda, Zambia and the Cameroon, Central Chad, Cte dIvoire, Gambia,
Zanzibar region of Tanzania. African Republic, Congo, Egypt, Somalia, South Africa,
Africa has sustained the DRC, Djibouti, Ethiopia, Swaziland and Zimbabwe
progress made in tackling HIV/ Between 2000 and 2008/2009
there was significant increase Guinea,Madagascar, Niger, reported a setback over the
AIDS. Namibia and Rwanda
in the use of insecticide- same period.2
made remarkable increase 1 UN (2010) The Millennium Development
in knowledge about HIV treated bed nets (ITN)to Goals Report 2 AU, AfDB, UNECA and UNDP (2010)
prevention between 2000 and protect from malaria. The
2008 but most countries will proportion of children under
not meet the 95% knowledge five sleeping under ITNs rose
target by 2010 set by the considerably in Gambia, in Egypt, Nigeria and except Algeria, Botswana,
UN. Condom use has also Kenya, Madagascar, Morocco.3 Nine countries Egypt, Equatorial Guinea,
gained acceptance in some Rwanda, So Tom and are still classified by WHO as Mauritius, Morocco,
countries such as Burkina Prncipe, and Zambia.2 TB high-burden countries: Namibia, and the Seychelles.
Faso, Cameroon, Kenya, DRC, Ethiopia, Kenya,
Mozambique, Namibia and The TB prevalence rate has Libya is the highest emitter of
been rising in Algeria, Cte Mozambique, Nigeria, South CO2 per capita in Africa.
Nigeria. As of December 2008, Africa, Tanzania, Uganda,
some 3 million Africans were dIvoire, Mauritania, Senegal,
Sierra Leone, Sudan, Togo and Zimbabwe. Many countries showed an
estimated to be receiving
and Tunisia. It declined improvement in access to
antiretroviral therapy (44% of
the estimated need).1 safe drinking water. In 2008,
2 UN (2010) The Millennium Development Botswana, Comoros, Djibouti,
1 UNAIDS, AIDS Epidemic Update 2009 Goals Report 3 AU, AfDB, UNECA and UNDP (2010)
Egypt, Gambia, Mauritius,
Namibia, South Africa, and
Mixed progress in africa GOAL 7:
Tunisia reached over 90%
coverage. DRC, Ethiopia,
100 ENVIRONMENTAL Madagascar, Mauritania,
SUSTAINABILITY1 Mozambique, Niger, Sierra
90 Leone and Somalia had less
Many countries are yet
than 50% coverage.
80 to include environmental
Source: Progress towards the Millennium Development Goals,

sustainability in their national Progress in sanitation is still

70 development plans. Most are slow. Only Algeria, Egypt,
60 failing to honor commitments Libya, and Mauritius have
made at the World Summit
Per cent (%)

90% of their population

50 on Sustainable Development with access to improved
(WSSD) and NEPADs sanitation. Benin, Burkina
Environment Initiative. Faso, Chad, Eritrea, Ethiopia,
Ghana, Guinea, Liberia,
African Economic Outlook 2010 .

Africa is the lowest emitter
Madagascar, Mozambique,
20 of carbon dioxide as a
Niger, Sierra Leone, and Togo
global region. CO2 emissions
10 have less than 20%.
between 1990 and 2006
0 decreased in most countries
Goal 1 Goal 2 Goal 3 Goal 4 Goal 5 Goal 6 Goal 7 1 AU, AfDB, UNECA and UNDP (2010)
Achieved On-track Off-track-slow Regressing


Education and Skills Formation and other serious shortfalls. However, the spread of
information and communication technology offers

P rimary education continues to be one of Africas chances to bridge some of the gaps in innovative
greatest success stories. According to the latest ways, including through web-based education and
figures, the majority of African countries are on track testing platforms, e-learning, and long-distance
to achieve the goal of universal primary education mentoring.
by 2015, with Burundi, Ethiopia, Ghana, Kenya,
Mozambique and Tanzania having made notable
progress.69 This has been achieved through abolition Gender Equality and
of school fees, greater public investments and
improved donor support, particularly through the
Womens Empowerment
World Banks Education for All Fast Track Initiative.

There is less success in other areas such as the T he empowerment of Africas women is critical to
the achievement of all MDGs, not just the goal of
gender equality. Fortunately, awareness of the link
quality of education, completion rates, enrolment in
secondary and tertiary education, basic education between womens empowerment and development
reform, and teacher recruitment.70 Meeting the continues to grow. Although gender-disaggregated
relevant targets will be an enormous challenge. data remain patchy, the results of increased efforts
More than 31 million African children, most of them are beginning to show.
girls, remain out of school and the number of new
teachers needed between now and 2015 alone In October 2010, the AU launched African Womens
equals the continents entire current teaching Decade, and there are encouraging signs of progress
force.71 With an enrolment rate of merely 6 per cent, to come.74 Last year showed a continuing upward
low female participation, and over 40 per cent of trend in the political participation of African women,
faculty positions vacant, higher education remains a who now hold 18.5 per cent of parliamentary positions
particularly serious stumbling block in the continents (from 15 per cent in the previous year). Womens
quest for strong and sustained growth. This is despite representation in parliaments in Sub-Saharan Africa
the growing engagement of international donors is now higher than in South Asia, the Arab states or
and collaborative initiatives like the Partnership for Eastern Europe.75 Most countries are also on track to
Higher Education in Africa or the Association for the achieve gender parity in primary education by 2015. A
Development of Education in Africa.72 growing number, including Senegal, Benin and Burkina
Faso, have integrated gender concerns into their
There is still a notable lack of strategic planning for and national development plans and poverty-reduction
access to skills development as part of the broader strategies, also because international partners like the
education curriculum. The acquisition of skills linked Millennium Challenge Corporation have made gender
to market-needs plays an essential role in human reform a prerequisite for grant disbursement.76 Lesotho
development, employment generation, poverty has even achieved the greatest overall improvement
reduction and sustainable economic growth. While of any nation in the World Economic Forums Global
the share of secondary school students enrolled in Gender Gap Index over the last five years.77
technical and vocational programmes has increased
to 13 per cent in Mali, 16 per cent in Rwanda, and Despite these encouraging signs, Africa remains
18 per cent in the Democratic Republic of Congo, it plagued by substantial and debilitating gender
remains below 2 per cent in Niger, Chad and Sudan.73 gaps in health, employment, and wages.78 For every
headline success, thousands of women continue to
Crisis-induced spending cuts in both African and find their talents and aspirations blocked by formal
partner countries, quickly growing youth populations and informal barriers. If adjusted for gender equality,
and the prevalence of armed conflict in many parts human development ratings drop substantially
of the continent complicate efforts to address these across the entire continent.79

The empowerment of Africas women is critical

to the achievement of all MDGs.

The Transformative Power of Partnerships

For reasons ranging from labour-market conditions While Africa as a whole is unlikely to meet the goal
to access to education to social barriers, cultural of reducing infant mortality by 2015, some countries
values and attitudes in the household, the vast have achieved outstanding reductions, including
majority of women in Sub-Saharan Africa continue Mozambique (over 70 per cent), Malawi (68 per
to face income and job insecurities.80 The economic cent) and Niger (64 per cent).84 Although maternal
crisis has further increased both the informalization mortality remains unacceptably high across the
of jobs held by women and their share of vulnerable continent, the limited available evidence indicates
employment.81 Even though women make up the that some countries, including Burundi, Cape Verde
majority of the agricultural workforce, producing as and Egypt, are achieving substantial reductions.
much as 80 per cent of the continents food, they still This suggests that current efforts to reduce maternal
own less than 1 per cent of Africas land. They are mortality are working but need to be further scaled
still the first, along with their children, to suffer under up and complemented by increased investments in
economic contraction, food insecurity and violent information systems and accessible and affordable
conflict. services. Africas leaders agreed at the AU Summit
in July 2010 to increase financial and political
This is not only a personal tragedy for millions of support for female and child health, and to intensify
women and their families, but a major brake on cooperative efforts through partnerships like the
Africas development. Failing to use womens energy Campaign on Accelerated Reduction of Maternal
and skills slows progress towards achievement of the Mortality in Africa (CARMMA).87
MDGs, weakens governance and accountability,
and hampers the implementation of much-needed While the goals of reducing maternal and infant
reforms. Empowering women, on the other hand, is mortality across all Africa remain distant, there
proven to increase household incomes, nutrition and are several important milestones within reach. The
education levels, and agricultural productivity, and elimination of polio, measles, guinea-worm disease
to decrease fertility, population growth and carbon and mother-to-child transmission of HIV is possible, but
emissions.82 Africa still has a long way to go in realizing requires a strong final push.88 The expansion of routine
the enormous potential of its women. immunization across the continent is progressing
and the introduction of several new vaccines,
including for meningitis and pneumococcal disease,
Health is already yielding substantial benefits.89 A promising
malaria vaccine is in the final testing stages and its

I ncreased financing and a strategic scale-up introduction may be only a couple of years away.90
of effective interventions have led to some
remarkable results in health this year. For example, Many of these recent achievements were made
enough insecticide-treated mosquito nets have possible by effective partnerships between and
been distributed to protect more than 578 million among governments, international organizations,
people at risk of malaria in Sub-Saharan Africa. the private sector, philanthropic actors and civil
As a result of these and similar efforts, 11 African society. Particularly innovative funding mechanisms
countries have shown reductions of over 50 per cent such as the Global Alliance for Vaccinations and
in the number of confirmed malaria cases, and the Immunization (GAVI) and the Global Fund to Fight
majority of African states are now on track to halt the Aids, Tuberculosis and Malaria have helped to turn
advance of malaria by 2015.83 international goodwill into results on the ground.

Eleven African countries have shown reductions

of over 50 per cent of confirmed malaria cases.


opportunities for WOMEN in africa 120

FEMALE Education & literacy

100 Moldova Australia

(measured in percent ot total female population)

South Africa
Iran, Islamic Rep
Literacy rate, women

Tanzania Kenya Tunisia

Malawi Uganda Algeria
Nigeria Madagascar
60 Cameroon Zambia


Source: Economist Intelligence Unit (2010)

Cte d'Ivoire Morocco

Womens Economic Opportunity Index.

40 Togo
Burkina Faso Ethiopia
20 Chad

0 2 4 6 8 10 12 14 16 18
Primary and secondary education, women (total years of schooling)

WOMENS Access to finance in africa

90 Sweden
80 Denmark


(Economic Opportunity Index (1-100)

60 Tunisia South Africa

Overall Score

50 Namibia
Venezuela, RB

Tanzania Morocco
40 Benin Ghana Kenya
Zambia Senegal Malawi Egypt
Uganda Burkina Faso Nigeria
Source: Economist Intelligence Unit (2010)

Womens Economic Opportunity Index.

30 Ethiopia
Cte d'Ivoire Pakistan




0 10 20 30 40 50 60 70 80 90 100
Access to Finance
Countries analysed in the Womens Economic Opportuniy Index
Selected countries for reference
African countries

womens opportunites in select african countries

Botswana Chad
World average World average
Best in world Labour Policy Best in world Labour Policy

General Business Labour General Business Labour

Environment Practice Environment Practice

Womens Legal and Access to Womens Legal and Access to

Social Status Finance Social Status Finance

Education Education
and Training and Training

Nigeria South Africa

World average World average
Best in world Labour Policy Best in world Labour Policy

General Business Labour General Business Labour

Environment Practice Environment Practice

Womens Legal and Access to Womens Legal and Access to

Social Status Finance Social Status Finance

Education Education
and Training and Training

On the radial charts:

Indicator scores are normalised to lie within a consistent range between 0-100, based on source
data. Section scores are the weighted sum of the underlying indicator scores. All scores 0-100 World average
where 100=most favourable. Best in world
Labour Policy
On the methodology:

The Womens Economic Opportunity Index is a dynamic quantitative and qualitative scoring
model constructed from 26 indicators that measure specific attributes of the environment for General Business Labour
women employees and entrepreneurs in 113 economies.
Environment Practice
Five category scores are calculated from the unweighted mean of underlying indicators and
scaled from 0-100, where 100=most favourable. These categories are: Labour policy and practice
(which comprises two sub-categories: Labour policy and Labour practice); Access to finance;
Education and training; Womens legal and social status; and the General business environment.
Each category or sub-category features either four or five underlying indicators.

The overall score is calculated from a simple average of the unweighted category and indicator
scores. That is, every indicator contributes equally to its parent category and every category Womens Legal and Access to
contributes equally to the overall score. This is the baseline score for the Womens Economic Social Status Finance
Opportunity Index.

The womens access to finance programmes indicator assesses whether governments or the
formal financial sector have programmes aimed at providing fi nancial accounts to women, Education
improving both access to loans and financial literacy. and Training
Source: Economist Intelligence Unit (2010), Womens Economic Opportunity Index.


Partnering for health I: The global initiatives

Global health partnerships have received great public attention, and have transformed the quality and
scope of health provision across Africa, saving millions of lives. Successful collaborations include advocacy
on a particular disease (UNAIDS), improving coordination between multiple initiatives (the Rollback Malaria
Initiative), or delivering much-needed services, financial and medical resources, and technologies to
national governments (the Global Fund to Fight Aids, Tuberculosis and Malaria and GAVI). GAVI and the
Global Fund in particular demonstrate how partnerships across sectors and between organizations can
achieve objectives that no single agency or actor could achieve alone.

Partnering for health II: Eliminating river blindness

The African Programme for Onchocerciasis Control (APOC) is one of the longest-running partnerships for
health on the continent. Focusing on community-directed treatment, APOC involves a broad range of
financial, scientific and operational partners, including a network of 15 NGOs and 19 African countries.
Implemented by WHO, with financing managed by the World Bank, the partnership has come close to
eliminating river blindness. Besides reducing the number of infections by over 16 million cases and providing
regular treatment to over 50 million people, the partnership has helped to reclaim abandoned arable land
for settlement and agricultural production.

Source: WHO (2011).

Partnering for health III: SMS for life

The SMS for Life initiative is a publicprivate partnership harnessing standard technology to improve local
access to and availability of essential medicines in sub-Saharan Africa. The Roll Back Malaria Partnership,
Novartis, Vodafone, IBM and the Ministry of Health in Tanzania jointly used a combination of mobile phones,
Short Messaging Service (SMS) technologies and easy-to-use websites to track and manage the supply of
malaria drugs. The initiative was built on a generic and highly scalable platform that could be used for other
medicines or products and could be replicated across the continent with minimal adaptation and high

E ncouragingly, this goodwill has been reconfirmed

over the last year. Leaders at the G8 Summit
in June 2010 pledged to mobilize $5 billion to
These generous pledges, provided that they
materialize, contrast markedly with the reluctance of
African governments to fulfil their own commitments.
accelerate progress on MDG 4 and 5 as part of the Many of them fall short of the Abuja target of
Muskoka Initiative to reduce maternal and new-born allocating 15 per cent of their public expenditure to
deaths in developing countries.91 At the MDG Review health; 19 countries spend less on health now than
Summit in September 2010, world leaders, private- they did when they signed the Abuja declaration in
sector actors, philanthropic organizations and civil 2001.92
society pledged a total of $40 billion for health over
the next five years. The Global Funds replenishment Because of insufficient investments by national
in October 2010 yielded $11.7 billion for the global governments and largely disease-specific efforts
fight against AIDS, Tuberculosis and Malaria for 2011 of donors, most of Africas health systems continue
2013 (up from $9.7 billion for 20082010); several to be seriously understaffed, inefficient and
donors, including Australia and Norway, have characterized by glaringly inequitable access.93
announced new commitments to GAVI ahead of the They remain largely inadequate to deal with many
forthcoming replenishment meeting. of the continents health challenges. These include

The Transformative Power of Partnerships

both the high prevalence of HIV/AIDS among the progress also compounds and widens existing
extremely poor, and the silent epidemic of non- inequalities, as improvements in sanitation and
communicable diseases such as cancers, diabetes water access are largely bypassing the poor.101 These
and cardiovascular diseases expected to increase inequities are becoming increasingly apparent in
significantly over the next 20 years. The number of Africas cities where almost half the poor population
Africans with diabetes, for example, is expected to suffers from at least one preventable disease caused
rise from 12.1 million to 23.9 million.94 by lack of safe water and sanitation.102

Increased intergovernmental activism includes

Access to Water and Sanitation the G8 Partnership on Water and Sanitation, the
G20 Working Group on Water and Sanitation and

I n July 2010, the UN General Assembly declared the African Ministers Council on Water and its
access to clean water and sanitation a human right. African Water Facility. This has not yet translated
Implementing this right will be a particular challenge into national policies and investments necessary
in Africa where more than 40 per cent of people to address the lack of progress. By investing only
live in water-deprived areas. The amount of water an average 0.2 per cent of GDP in sanitation and
available per person in Africa is not only far below the hygiene, most African countries have missed the
global average already, but is declining even further 2010 targets of the eThekwini Declaration which
as groundwater levels fall and precipitation patterns called for the sector-specific allocation of 0.5 per
change as a result of accelerating climate change. cent of GDP.103 As a result, total investment in Africas
At present, only 26 countries are on track to attain water sector remains far below the AfDB estimate of
the water-provision target to halve the proportion of $11 billion per year required to meet the continents
the population without sustainable access to clean drinking water supply and sanitation needs.104 Other
drinking water by 2015.95 Only nine African countries obstacles to progress are poor governance of the
(Algeria, Morocco, Tunisia, Libya, Rwanda, Botswana, water sector, both nationally and with respect to
Angola, South Africa and Egypt) are expected to Africas 63 shared water basins,105 the growing
meet the MDG target of halving the proportion of water needs of African agriculture, a lack of private-
the population without sustainable access to basic sector capacity in manual drilling, and limited
sanitation by 2015.96 At current trends, Africa will miss capacity of community-based maintenance of
this target by over 300 million people.97 water infrastructure.106

This slow progress is highly problematic because At the same time, a number of innovative
improved access to safe water and sanitation is partnerships, such the AfDBs Rural Water Supply
essential to improve health.98 Currently, only 60 per and Sanitation Initiative, the CEO Water Mandate,
cent of people in Sub-Saharan Africa have access to the Sanitation and Water for All Partnership and
improved sources of drinking water and less than half Ecotacts commercialized provision of affordable
have access to basic sanitation facilities.99 More than sanitation in urban slums, have shown that rapid
a quarter still have to practise open defecation, thus progress is possible.107 There is also enormous
protracting water- and hygiene-related diseases potential for expanding simple water-harvesting
such as diarrhoea and worm infections.100 The slow techniques and savings from utility reforms.

Partnering around affordable sanitation services

With the support of partners like the United Nations Foundation, Ashoka, UNICEF, and the Coca Cola
Company, the social enterprise Ecotact provides affordable sanitation services in informal settlements and
urban slums in Kenya. By setting up pay-per-use toilet facilities, Ecotact has improved hygiene in targeted
communities, reduced pollution from human waste, generated employment opportunities for the urban
poor and restored dignity through the provision of sanitation services. It also delivers highly impressive
economic returns, especially if lower healthcare costs, reduced disruption to schooling and higher work
productivity are considered. Built on commercial viability, Ecotacts model is highly scalable and, given the
rapid growth of urban slums across Africa, should be highly replicable.

Sources: UNDP (2011), Growing Inclusive Markets Initiative


food and nutrition planning to host the first ever meeting of the Groups
Ministers of Agriculture before the Summit. In addition,
security there are attempts to create more transparency of
food stocks held by large exporters to avoid panic
caused by market uncertainty about the availability

E ven though several African countries are on the

verge of meeting their MDG targets for hunger
reduction, the continent as a whole continues to be
of essential commodities.112

the worlds most food-insecure region.108 Hunger and Structural Barriers to Food Security
malnutrition remain pervasive in many countries, and

rising food prices are compounding the situation for t the same time, the fact that the number of
millions across the continent, particularly in zones of Africans suffering from hunger had already been
protracted conflict and in fast-growing urban areas.109 on the increase well before prices spiked suggests
that chronic and structural problems rather than
mere price fluctuations continue to underlie much
Volatility of Food Prices of the continents food insecurity. These problems
include: disadvantageous international trade rules

F ood prices are higher now than at any time

since 1984.110 Even though the World Banks Food
Price Watch sees Sub-Saharan Africa less exposed
and subsidy regimes; a debilitating lack of essential
infrastructure such as irrigation and storage systems;
inadequate agricultural research; a lack of improved
to risks related to soaring food prices as domestic seeds, fertilizers, and plant protection material; poor
food production is increasingly replacing imports soil and water management systems; poor access to
and recent harvests have been good,111 the price credit and marketing services; as well as inefficient
spikes have deepened existing macro and micro and wasteful agricultural value chains. Agricultural
vulnerabilities. On the macro level, countries with a productivity is also affected by social realities such as
high share of food imports and limited fiscal space persistent poverty and insufficient access of women
like Burundi are driven deeper into current-account to land and other essential resources.
deficits and the possibility of social unrest as they
become unable to use subsidies and price controls These structural barriers are increasingly compounded
to shield their populations from inflation. On the micro by global trends. In the short-term, the gap between
level, higher prices make life even more difficult for the continents domestic food supply and demand
Africas poorest, who already spend between 60 will widen as global consumption patterns continue
to 80 per cent of their income on food. Faced with to shift towards meat products, and more profitable
reduced access to food and increased vulnerability bio-fuels supplant food crops. In the mid-to-long-
to the seasonality of local food prices and markets, term, the continents food system will experience an
households are forced into unavoidable compromises, unprecedented confluence of pressures, including
such as choosing cheaper (often less nutritious) food, through the reinforcing impacts of population growth,
selling productive assets, withdrawing children from climate change and environmental degradation.113
school, forgoing healthcare, or simply eating less than
they need.
Agricultural Productivity
The recurrence of food-related crises over the last
few years has focused international attention on the
tragic state of food security in Africa and given rise
to a number of supportive initiatives such as the G8s
O ver the last year, African countries and their
partners have increased their commitment
to raise agricultural productivity on the continent,
LAquila Food Security Initiative, the Global Agriculture including through multi-stakeholder partnerships. For
and Food Security Program, and the World Banks example, the Comprehensive African Agriculture
Global Food Crisis Response Program. The French Development Programme (CAADP) now has 25
G20 Presidency has also prioritized food security, and signatory countries (seven more than last year)
especially the moderation of speculative trading in committed to spending at least 10 per cent of their
food commodities, for the 2011 Summit in Cannes. It is national budgets on agriculture, to accelerate growth

Food prices are higher now than at any time since 1984.

The Transformative Power of Partnerships

in the sector to at least 6 per cent a year. Nineteen pace with population growth, and a significant part
countries have finalized Agricultural Investment Plans. of that increase will have to come from Africa. There
is an urgent need to scale up successful interventions,
Practical efforts to boost agricultural production are focus on Africas army of smallholder farmers and
beginning to yield results in many countries, including increase emphasis on staple food crops. There is also
Ghana, Malawi, Mali, Mozambique and Tanzania. a need to ensure that the growing foreign investments
Focused international assistance and innovative in Africas arable land, sometimes referred to as land
partnerships, like the Alliance for a Green Revolution in grabs, are transparent, add to the continents food
Africa (AGRA), have helped governments to intensify security, benefit local farmers and communities,
production. Methods include: the introduction and avoid undermining social, environmental and
of high-yielding varieties of crops and improved governance systems.114
techniques such as micro-dosing of fertilizers and
drip irrigation; increased accessibility of production- The dire social consequences of the recent food
enhancing inputs, credit and other financial services crises have shown that efforts to improve agricultural
such as weather-indexed crop insurance; and productivity and connectivity on the supply side need
improved markets and information. The increasing to be complemented by better risk management,
engagement of the private sector, including through efficient social safety nets and targeted nutritional
the promotion of agricultural growth corridors and programmes on the demand side. As with the
agro-industrialization, will help to increase resources implementation of agricultural development plans,
available for agricultural investments. national governments ultimately bear responsibility
for this.
These successes remain too small to feed the
continent. Global food production will have to
increase by 70 per cent over the next 40 years to keep

Partnering around the potential of Africas smallholder farmers

A critical constraint to agricultural growth in Africa is lack of access to financing across the agricultural value
chain, particularly among smallholder farmers. The Alliance for a Green Revolution in Africa (AGRA) has
initiated financial partnerships and risk-sharing instruments with a number of institutions to mitigate the risk of
lending by commercial banks and other financial institutions to smallholder farmers and value chains that
support them. So far, AGRA and its partners have used $15 million in loan guarantee funds to leverage $160
million from commercial banks in Ghana, Kenya, Mozambique, Tanzania and Uganda, benefiting more
than 85,000 smallholder farmers and helping to boost regional food security. AGRA is also cooperating with
the Central Bank of Nigeria to help leverage a $500 million governmental risk sharing initiative into $3 billion
in new lending from commercial banks to support agricultural value chains and farmers in Nigeria.

Practical efforts to boost agricultural production

are beginning to yield results in many countries.

Price volatility

Maize prices in East African countries and world price 2006-2009

Food price changes
Q1 2010 to Q1 2011

Source: FAO (2009b) based on national statistical databases.

Maize +74%
USD per metric ton

Wheat +69%
Palm oil +55%
Soybeans +36%
Beef +30%
Source: World Bank Development Prospects Group






























Uganda Kenya Tanzania Ethiopia International

Food Security Risk Index

Rank Country
1 Afghanistan
2 DR Congo
3 Burundi
4 Eritrea
5 Sudan
6 Ethiopia
7 Angola
8 Liberia
9 Chad
10 Zimbabwe


DR Congo Burundi


Food Security Risk

Extreme risk
High risk
Medium risk
Low risk
No Data

Maplecroft 2011
This map is the visual representation of the Maplecroft Food Security Index (FSI). It provides a quantitative
assessment of the availability, stability and access to food supplies, as well as the nutritional outcomes that
result from food insecurity. Each country is assigned an index score based on its performance across 18 key maplecroft
indicators, classified into four sub-indices: extreme risk, high risk, medium risk and low risk.

global Hunger index and FOOD PRODUCTION
rm ly

Lo e
i ng

Ala eme

1999-2001 = 100






1990 * Algeria 2000
2010 Angola 2007
Burkina Faso
no data Cape Verde
Central African Republic
Congo, Republic
Cte d'Ivoire
* Egypt
no data Equatorial Guinea
Sources: Food and nutrition security Source - IFPR Global Hunger Index 2010 Data underlying the calculation of the 1990 and 2010 Global Hunger Indices.

* indicates
value of
a *
* Libya
less than 5 Madagascar
Source: African Statistical Yearbook 2010 (UNECA, AUC, AfDB).

no data So Tom and Prncipe

no data Seychelles
Sierra Leone
no data Somalia
South Africa
* Tunisia
50.0 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 0 20 40 60 80 100 120 140 160 180 200
IFPRI Global Hunger Index 2010 Agricultural and Food Production Index


CLIMATE CHANGE negotiators and Heads of State and Government

with an improved communication and negotiation
strategy.121 The Cancun Summit did not result in

C limate change is already placing enormous

burdens on African societies and economies,
and further complicating their development. At the
a comprehensive agreement or legally binding
treaty. However, it did anchor previous agreements
in the formal negotiation process, clarify details in
same time, international efforts to counter its effects important areas, revitalize the multilateral process
offer the continent new chances to profit from its vast led by the UN Framework Convention on Climate
carbon sinks, leapfrog dirty technologies, and embark Change (UNFCCC), and establish a Green Climate
on a path of green growth and clean development. Fund to help facilitate financial support to developing
countries. With COP 17 poised to take place in Durban
in November 2011, African states, supported by the
The Impact of Climate Change AU, AfDB and NEPAD, have an opportunity to push
for clarification and implementation of agreements

F or millions in Africa, the effects of climate change reached in Copenhagen and Cancun.
are already manifest in increasingly frequent
storms, droughts and floods, changing weather and
precipitation patterns as well rising temperatures.115 Climate Change Finance
In combination with existing environmental
degradation,116 this reduces agricultural productivity
and threatens food security,117 increases water stress,
facilitates the spread of vector-borne diseases
A frican countries require substantial additional
resources to help them adapt to the unavoidable
consequences of climate change. For reasons
such as malaria, and erodes valuable human of design, sequencing, coordination, and lack of
habitat. Through the acidification of seawater, rising absorptive capacity, they have been unable to
sea levels and the spread of storm-surge zones, benefit from financing instruments of the Kyoto
climate change also directly threatens the lives and Protocol, such as the Clean Development Mechanism
livelihoods of millions of Africans dependant on the and the Reduced Emissions from Deforestation and
oceans for food and income.118 Forest Degradation Programme. The Copenhagen
Accord includes the commitment to support
By all indicators, African countries are among the developing countries adaptation and mitigation
most vulnerable to the effects of sustained climate efforts with additional resources. This is in the form of
change.119 According to Maplecrofts Climate Change fast-start finance ($30 billion for 20102012) and long-
Vulnerability Index, 12 of the 25 countries most at risk term finance ($100 billion a year by 2020), with 40 per
are African, with high levels of poverty, population cent of each fund earmarked for Africa.
density, and reliance on flood- and drought-prone
agricultural land.120 These countries are finding it To date, most of the fast-start finance appears to
increasingly difficult to feed their people, protect them be coming from existing ODA budgets.122 The High-
from the vagaries of nature, grow their economies and Level Advisory Group on Climate Finance convened
conserve their environments. The risk of resource-based by the UN Secretary-General and co-chaired by
conflict and destabilizing mass migrations only adds to Ethiopias Prime Minister Meles Zenawi concluded
these other multiple insecurities. that the long-term finance could be mobilized in
addition to existing ODA budgets by auctioning
emission rights, establishing a carbon-dioxide tax or
Climate Change Politics emissions-transaction fee for international carbon
trades, and relocating funds from fuel subsidies in

A pproaching the 16th Conference of Parties (COP developed countries to adaptation activities in
16) on climate change in Cancun in December developing countries.123
2010, the African Ministerial Conference on the
Environment (AMCEN) continued to develop the Despite persisting uncertainty about the sources and
continents common position and provided African disbursement of proposed financing as well as the

By all indicators, African countries are among the most vulnerable

to the effects of sustained climate change.

The Transformative Power of Partnerships

level of political commitment, there are already well green policies such as fostering sustainable land and
over 20 bilateral and multilateral funds dedicated watershed management, combating deforestation,
to receiving and managing pledged resources.124 using taxes and market-based instruments to
These include the Global Environmental Facility, the shift consumer preference, and promoting green
World Banks Green Climate Fund and the AfDBs investment and innovation. They have also continued
Africa Green Fund. This proliferation of funds runs to engage in multilateral initiatives like the Congo Basin
contrary to the Paris principles for aid effectiveness Forest Fund, the Lake Chad Sustainability Programme
by complicating the reporting, monitoring and and the creation of Regional Climate Centres. The
verification of financial commitments and will need Climate Information for Development in Africa (Clim-
addressing at the forthcoming High-Level Meeting on Dev) Programme aims to improve the continents
Aid Effectiveness in Busan. The proliferation of funds analytical capacity, knowledge management and
also adds to the already heavy administrative burden access to information on climate change.
placed on recipient states and to their growing
distrust in the willingness of richer countries to go Partners are also stepping up their supportive efforts
beyond the formulation of elaborate mechanisms. across Africa. The World Bank, for example, has
earmarked $7 billion for adaptation initiatives across
At the same time, there is growing realization that the continent and is already implementing its climate
transfers of public revenue and carbon taxes in change strategy for Africa in ten countries. This
developed countries can provide only part of includes a project to improve a congested public-
the solution. Reliance on carbon markets is also transport system in Nigeria, and the Lighting Africa
problematic, given Africas insufficient access, the initiative to provide carbon-free lighting to 250 million
low price of carbon and the uncertainty surrounding Africans by 2030.126
international negotiations and market mechanisms.
Consequently, there is increasing focus on the None of this, however, is enough to spark and
potential of the private sector and international capital drive the required transformation towards green
markets to complement the compensatory activities growth and environmental sustainability.127 Much
of developed countries through leveraging public more is needed, from both African states and their
flows, financing large-scale infrastructure projects and development and business partners, to ensure
promoting market-based adaptation activities.125 that the continent has the resources, mechanisms
and technologies necessary to adapt to the
effects of climate change. This requires investment
Adaptation and Mitigation in transformative mitigation measures such as
increasing renewable-energy generation and

S everal African states, including Ethiopia and

Rwanda, have made notable progress in
implementing their National Adaptation Programmes
transmission capacity, and promoting sustainable
land management. Given Africas low rate of
electrification and deficient power grids, there is
of Action. They have incorporated adaptation great opportunity for the deployment of alternative
into their development agendas, and are pursuing sources of energy for personal consumption.

Partnering around clean household technology

Worldwide, nearly three billion people use polluting, inefficient stoves or open fires for indoor cooking and
heating. This causes significant health problems and contributes to climate change through the emission of
greenhouse gases. Several partnerships involving public and private actors, including the Global Alliance
for Clean Cookstoves, are successfully promoting the use of fuel-efficient stoves. These can save up to three
tons of carbon per year (per stove) and have significant economic and health benefits. For Africa, the aim is
to convert 100 million homes to clean-cooking technology by 2020, saving as much as three hundred million
tons of carbon a year. Progress to date is encouraging, with millions of improved stoves already distributed
across the continent and markets for clean household-cooking solutions emerging in many countries.

Climate change Vulnerability l Low* l Moderate l High l Severe l Acute

Weather Economic Overall

Health Habitat Loss
Disasters Stress Vulnerability
Country Year 2010 2030 2010 2030 2010 2030 2010 2030 2010 2030
Algeria l l l l l l l l l l
Angola l l l l l l l l l l
Benin l l l l l l l l l l
Botswana l l l l l l l l l l
Burkina Faso l l l l l l l l l l
Burundi l l l l l l l l l l
Cameroon l l l l l l l l l l
Cape Verde l l l l l l l l l l
Central African Republic l l l l l l l l l l
Chad l l l l l l l l l l
Comoros l l l l l l l l l l
Congo, Republic l l l l l l l l l l
DRC l l l l l l l l l l
Cte dIvoire l l l l l l l l l l
Djibouti l l l l l l l l l l
Egypt l l l l l l l l l l
Equatorial Guinea l l l l l l l l l l
Eritrea l l l l l l l l l l
Ethiopia l l l l l l l l l l
Gabon l l l l l l l l l l
Gambia l l l l l l l l l l
Ghana l l l l l l l l l l
Guinea l l l l l l l l l l
Guinea Bissau l l l l l l l l l l
Kenya l l l l l l l l l l
Lesotho l l l l l l l l l l
Liberia l l l l l l l l l l
Libya l l l l l l l l l l
Madagascar l l l l l l l l l l
Malawi l l l l l l l l l l
Mali l l l l l l l l l l
Mauritania l l l l l l l l l l
Mauritius l l l l l l l l l l
Morocco l l l l l l l l l l
Mozambique l l l l l l l l l l
Namibia l l l l l l l l l l
Niger l l l l l l l l l l
Nigeria l l l l l l l l l l
Rwanda l l l l l l l l l l
So Tom and Principe l l l l l l l l l l
Senegal l l l l l l l l l l
Seychelles l l l l l l l l l l
Sierra Leone l l l l l l l l l l
Somalia l l l l l l l l l l
South Africa l l l l l l l l l l
Sudan l l l l l l l l l l
Swaziland l l l l l l l l l l
Tanzania l l l l l l l l l l
Togo l l l l l l l l l l
Tunisia l l l l l l l l l l
Uganda l l l l l l l l l l
Zambia l l l l l l l l l l
Zimbabwe l l l l l l l l l l
* No African countries fall under the Low category for any of the indicators.
Source: Climate Vulnerability Monitor 2010: The State of the Climate Crisis, DARA & Climate Vulnerable Forum.

africas Green Growth Potential
Technical potential for renewable energy power generation and
electricity markets by 2050 (exajoules a year)
OECD Europe
North America

Source: Renewable Energy Potentials (2008)

8000 Transition Economies
Latin America
Rest of Asia
4000 OECD Pacific
2000 Middle East
0 (Source: REN21,

Po Prod ricity
tia tion


En an

E le l

nsu ity


Off ind

E le a l




Figures from
On ind

c tr



Co ctric
l To


ten uc


Renewable Energy

E le




Potentials 2008.)


A - Adaptation M - Mitigation REDD - Reducing Emissions from Deforestation and Forest Degradation in Developing Countries
Fund - name and acronym Type Adminstered by Areas of Date Pledged Deposits Approved Disbursed Share to
focus operational (USD mn) (USD mn) (USD mn) (USD mn) Africa
Africa Green Fund Multilateral African Development Bank A 2011* no data no data no data no data 100%
Adaptation Fund Multilateral Adaptation Fund Board A 2009 216 202 34 9 36%
Amazon Fund (Fundo Amaznia) Multilateral Brazilian Development Bank A, M, 2009 1,027 51 7 7 0%
Clean Technology Fund Multilateral World Bank M 2008 3,792 1,493 1,453 227 42%
Congo Basin Forest Fund Multilateral African Development Bank REDD 2008 83 83 17 12 100%
Forest Carbon Partnership Facility Multilateral World Bank REDD 2008 221 174 12 10 26%
Forest Investment Program Multilateral World Bank REDD 2009 559 102 3 3 no data
GEF Trust Fund - Climate Change Multilateral Global Environment Facility - A, M 2006 1,032 1,033 934 735 15%
focal area 4 + 5 completed
GEF Trust Fund - Climate Change Multilateral Global Environment Facility A, M 2010 1,156 339 7 0 no data
focal area 5
Global Climate Change Alliance Multilateral European Commission A, M, 2008 226 225 187 21 62%
Global Energy Efficiency and Multilateral European Commission M 2008 170 60 60 60 no data
Renewable Energy Fund
Green Climate Fund Multilateral World Bank A 2011* no data no data no data no data no data
Hatoyama Initiative - private sources Bilateral Government of Japan A, M 2008 4,000 1,360 1,360 0 no data
Hatoyama Initiative - public sources Bilateral Government of Japan A, M 2010 11,000 3,960 3,960 0 no data
International Climate Fund, Formerly Bilateral Government of the United A 2011 4,717 40 no data no data no data
ETF Kingdom
International Climate Initiative Bilateral Government of Germany A, M, 2008 519 516 504 504 14%
International Forest Carbon Initiative Bilateral Government of Australia REDD 2007 216 67 48 48 0%
Least Developed Countries Fund Multilateral Global Environment Facility A 2002 262 219 144 92 66%
MDG Achievement Fund Multilateral UNDP A, M 2007 90 90 90 71 27%
Environment and Climate Change
Pilot Program for Climate Resilience Multilateral World Bank A 2008 972 306 287 8 40%
Scaling-Up Renewable Energy Multilateral World Bank M 2009 307 24 no data no data no data
Program for Low Income Countries
Special Climate Change Fund Multilateral Global Environment Facility A 2002 149 134 99 74 29%
Strategic Climate Fund Multilateral World Bank A, M, 2008 0 0 no data no data no data
Strategic Priority on Adaptation Multilateral Global Environment Facility A 2004 50 50 49 49 20%
UN-REDD Programme Multilateral UNDP REDD 2008 126 95 76 51 21%
* Operationalization envisaged for 2011
Source: The Climate Fund Update,


Development Finance Encouragingly, aid already represents less than 10

per cent of tax revenue in 14 countries.
and Cooperation
Traditional Bilateral Partners
A s African states are improving their domestic

resource mobilization, and becoming id flows are only one measurement of partners
increasingly attractive investment destinations, commitment to development, but they remain
the overall share of assistance from international an important one.131 For both the promises to double
partners in their development finance continues to Official Development Assistance (ODA) to Africa
decline, having now fallen to an average of about made by the G7 at their 2005 Summit in Gleneagles,
10 per cent of Gross National Income (GNI).128 The and the intermediate goal of the EU Roadmap to
importance of this assistance, however, remains high deliver 0.56 per cent of EU GNI in aid, 2010 was the
as predictable, concessional and targeted aid helps target year. The most recent figures show that only
to lubricate the ability of governments to respond to three G7 countries (Canada, Japan and the US) have
the needs of their people, leverage other flows and met their 2010 spending targets for Africa.132 While
ensure that they achieve developmental results. This all others have fallen short of their promises, there
having been said, several states, including Burundi, are some important differences between them. The
Guinea-Bissau and Mali, remain almost wholly UK has made a more ambitious pledge, and has
dependent on international aid.129 shown commendable increases in ODA to Africa
since Gleneagles, particularly over the last year,
and has fallen just short of its target. By contrast, Italy
Domestic Resource Mobilization made an ambitious commitment but is delivering
less aid now than it did at the time of the Gleneagles

I n 2002, the Monterrey Consensus on Financing for

Development highlighted the need for African states
to complement, and ultimately replace, external aid
Summit, raising further doubts about its credibility
at top decision-making tables. Both Germany and
France are somewhere in between. While they have
flows with domestic resources for development. Since made ambitious pledges and have shown notable
then, many states have significantly strengthened increases in ODA to Africa, they have fallen far short of
their capacity to mobilize domestic resources their promises. Preliminary figures suggest that OECD
through improving tax administrations, deepening Development Assistance Committee (DAC) donors
the tax base, segmenting taxpayers and reducing overall have met just over half (52 per cent) of the
widespread tax exemptions, particularly in the increases in aid promised between 2004 and 2010.133
extractive industries. Thirty-one countries have joined
the African Tax Administration Forum to promote The consensus on increasing development
and facilitate cooperation among revenue services. assistance has undoubtedly been tested by the
However, in many states revenue performance global economic crisis. Although some traditional
remains weak and too little of the mobilized resources donors such as Germany have already returned to
are invested in social development. strong growth, policies of fiscal austerity will continue
to put significant pressure on aid budgets for some
For many countries, aid continues to represent a time. The last year has already seen a noticeable
significant proportion of development finance. decrease in new commitments to Africa, and the
According to the African Economic Outlook 2010, OECD predicts a further reduction in the growth rate
of the 48 African countries with data available, 12 of aid, with the most marked deceleration in aid to
receive more aid than tax revenues, 24 receive Africa.134 The US administration has already agreed
aid equal to at least half the tax revenues, and 34 significant cuts in its foreign affairs and aid budgets
receive aid exceeding 10 per cent of tax revenues.130 in recent congressional negotiations.

Aid flows are only one measurement of partners commitment

to development, but they remain an important one.

The Transformative Power of Partnerships

The G8 Muskoka Summit

In June 2010, the G8 met in Muskoka, Canada. Development issues on the agenda included maternal,
newborn and child health, food security and accountability. As in previous years, several African leaders
were invited to participate in selected aspects of the Summit, but there were very few noticeable outcomes
for Africa beyond a slightly improved accountability framework, and the Muskoka Initiative on Maternal,
Newborn and Child Health which commits G8 members to spend an additional $5 billion between 2010 and
2015 to accelerate progress towards MDGs 4 and 5 in developing countries.

I t is doubtful that most donors will achieve the target

of dedicating 0.7 per cent of GNI to development
assistance by 2015. While Denmark, Luxembourg,
transactions or international transport to cover the
increasing need for such resources.

the Netherlands, Norway and Sweden continue to

exceed the target, the most recent DAC figures show Bilateral Partners from
that most donors would have to almost double current the Global South
ODA disbursements to reach it.135 Nonetheless, the
announcements by France, Germany and the UK of
sticking to the 0.7 per cent target, and in the case of
the UK to reach it as early as 2013, leave some space
A lthough it remains difficult to separate their
provision of technical and financial assistance
from trade and investment activities, emerging
for hope, even though current budget freezes mean economies like Brazil, China and India are undoubtedly
that spending will need to increase drastically in a providing an increasingly important share of Africas
short amount of time. development finance.137 Their growing willingness and
ability to provide grants and concessional finance
The financial climate has accelerated several trends has increased the resources available to African
in how aid is viewed, managed and delivered. states. It has also helped African states to reduce
There is renewed interest in ways to increase the their dependence on OECD DAC aid, with its inbuilt
developmental impact of aid without necessarily policy conditionalities, high administrative costs and
increasing its volume, such as results-based underlying Western development models.
financing, cash-on-delivery aid, the consolidation
of engagements to reduce aid fragmentation, and Most emerging partners are styling their commercial
bringing in the private sector.136 Increasing pressures engagement in Africa as SouthSouth cooperation,
on public finances have also led to renewed complementing it with increasingly comprehensive
attempts to include expenditures for peacekeeping, development initiatives including financial assistance,
climate finance and even the schooling of infrastructure provision, and training and education.
immigrants in ODA budgets. Repackaged and More Southern partners are emulating Chinas biennial
recycled commitments are increasingly opaque Forum on ChinaAfrica Cooperation (FOCAC), which
and difficult to monitor. The same pressures have has evolved into an important platform for ambitious
sparked a search for complementary, if not pledges and commitments to the continent. More of
alternative, sources of development finance, them are also recognizing the political and commercial
including market-based instruments. Several states benefits of sharing their own development experiences
including France, and the European Parliament, with African countries, sometimes in triangular
are investigating the use of levies on financial partnerships with traditional donors.

Emerging economies are undoubtedly providing an increasingly important

share of Africas development finance.

development finance
Tracking the Gleneagles Commitments
total 2010 oda as volume of total 2010 oda commitment

USD 1.9 Bn delivered Italy
USD 1.5 Bn target USD 1.2 Bn
USD 5.0 Bn

France USD 1.6 Bn

G7 USD 28.9 Bn delivered in 2010

USD 38.2 Bn
2010 target
USD 4.4 Bn
USD 8.0 Bn
USD 1.4 Bn

Source for all data on ODA: ONE/DATA Report 2011


Germany USD 5.1 Bn

USD 5.5 Bn
USD 3.4 Bn
USD 6.7 Bn
USD 9.6 Bn
USD 8.8 Bn

Notes: * Japan figures for ODA and targets tracks bilateral ODA net of debt relief only, but G7 totals are based on Japan's total ODA (with 2010 targets
incorporating a Japan flatlined multilateral estimate from 2009 onwards.)

At Gleneagles, three G7 countries set 'volume targets' (Canada, Japan and the US). Four G7 countries set ODA targets as a per cent of GNI.


(2010 prices, excluding debt) (excluding debt)
Change 2004-2010
UK 0.6%
0.56% EU target for 2010 UK

France 0.5%
10 43%

10 25% 0.4%
Per cent of GNI

USD BIllions

20 Canada
10 81% 0.3%
Note: These charts are based on actual values. Please note that

targets are based on smoothed multilateral for 2004 and 2005

20 71% US
Japan Italy
10 92%
Source: ONE/DATA Report 2011

10 36%

2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010

represents portion of ODA to SSA


350 35
300 30
250 25

USD Billions

Percent %
200 20
USD Billions


150 15

20 100 10

10 50 5

0 0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 2010
Total debt in $ billion Total % of GDP
Worker remittances Net private and
official inflows Total debt service $ billion Total debt service
% of GDP
Net debt flows (includes official creditors, private Source: ECA and AU (2011) Economic Report on Africa 2011, Governing development in
creditors, net medium and long-term debt flows and net Africa - theECA
Source: roleand
of the
AUstate in economic
(2011) Economic transformation
Report on Africa 2011, Governing
short-term debt flows) development in Africa the role of the state in economic transformation

Net equity inflows (includes net FDI and net portfolio

Source: World Bank Debtor Reporting System, IMF, Bank for International Settlements, OECD FLOWS FROM OECD DONOR COUNTRIES
Sources: World Bank Debtor Reporting System, IMF, Bank for International Settlements, OECD

TAX SHARE, 1990 - 2007, SSA
USD Billions

Per cent (%) GDP


15 150

10 100

5 50

0 0
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20
19 0
19 1
19 2
19 3

19 5
19 6

19 8
20 9
20 0
20 1
20 2
20 3

20 5
20 6










Official Flows
Upper Middle Income
Total Private Flows More Complete CGP
Lower Middle Income (philanthropy, remittances Total Private Flows
Lower Income and investments)
Source: African Economic
Source: Outlook
African 2011Outlook 2011
Economic Sources: OECD, Hudson
Source: Institutes
Hudson Center
Institutes for Global
Center Prosperity
for Global (CGP)
Prosperity index
(CGP) includes
Note: Based on GNI per capita, economies are classified as lower income, calculations includes
of numerous other private
calculations flows from
of numerous othercorporations,
private flows foundations, charities,
from corporations,
Note: Based on GNImiddle
lower per capita,
andeconomies are classified as lower income, lower middle and
upper middle. individuals, universities
foundations,and religious
charities, organizations.
individuals, universities, and religious organizations.
upper middle.Classification


Partnering around development experiences I: South-South cooperation

SouthSouth cooperation (the exchange of resources, technology and knowledge between countries of
the global South) has become an important form of development partnership. While there is a tendency
to style purely commercial deals with this label, the development effects of SouthSouth cooperation are
beyond doubt. The sharing of relevant experiences and best practices, in particular, has helped African
countries avoid mistakes, leapfrog technologies and practices, and accelerate progress. Examples include
Brazil and India sharing experiences in the rural health sector, Malaysia providing assistance in banking
and legal issues, Indonesia sharing experience on sustainable rice production, and South Korea providing
expertise on access to low-cost technology and education.

Partnering around development experiences II: Triangular partnerships

Triangular partnerships combine the resources of traditional development partners with the development
experiences of emerging economies from the global South around specific development objectives in
Africa. Encouraging examples include the Feed the Future Programme through which the US cooperates
with Brazil to bolster Mozambiques agricultural productivity. Specifically, the US funds and helps to organize
targeted education activities based on Brazils agricultural-extension experiences. Some Brazilian seed
varieties are well suited to Mozambiques climate, offering higher yields and better resistance to disease
and pests.

Institutional Partners and and adopted an action plan to 2013, explicitly based
around partnerships for development.139
Country Groupings

W ith bilateral aid budgets under increasing In November 2010, the G20 joined the ranks
pressure, intergovernmental institutions like the of intergovernmental groupings engaging in
World Bank, the IMF, and the AfDB, as well as country international development by adopting the Seoul
groupings like the EU and OECD, have consolidated Development Consensus on Shared Growth and
their central role in Africas development. Given their its Multi-Year Action Plan on Development. To
wealth of expertise and resources, and experience with avoid overlap or competition with the G8, the G20
some of the earliest success stories, they have become focus is on growth-related (rather than social or
crucial champions of partnerships for development,
humanitarian) aspects of Africas development,
adapting their strategies to reflect their growing
including infrastructure development, job creation
support. In February 2011, for example, the World Bank
and financial inclusion. While many of the proposed
launched its new, partnership-based Africa strategy,
to guide the Banks work in the region through 2016.138 initiatives and actions are encouraging, it remains to
At the 3rd EUAfrica Summit in Libya in November 2010, be seen whether the current French presidency can
the EU presented a Green Paper on Development enthuse more sceptical group members.

The Transformative Power of Partnerships

The G20 Multi-Year Action Plan for Development

The Multi-Year Action Plan is part of the Seoul Development Consensus on Shared Growth agreed at the
2010 G20 Summit in South Korea. It specifies concrete and time-bound actions to be taken up to the end of
2014, including on infrastructure, human resources and development, private investment and job creation,
food security, growth resilience, financial inclusion, domestic resource mobilization, and knowledge sharing.
Collective action through partnerships and accountability form the core principles of the Plan, some
aspects of which have already been implemented, including the establishment of a High-Level Panel on
Infrastructure Investment which is chaired by APP member Tidjane Thiam.

Philanthropy and Private Giving flexibility and reach of other development

actors. They also often prove more willing to take

P rivate capital flows have become a widely calculated risks.

recognized source of development finance.
Even throughout the global economic downturn,
such flows have outpaced official development Debt Relief
spending. They are also recovering faster than most
other flows.140 Reasons for this quick recovery include
the arrival of new philanthropic actors, such as
philanthropic investment firms that attract socially
D espite the enormous progress made in
recent years through bilateral debt relief and
multilateral efforts like the Highly Indebted Poor
minded investors and intermediaries as well as the Countries (HIPC) Initiative, massive debt burdens
accelerating spread of innovative ways of giving continue to constrain the development prospects
and lending, such as web-based platforms like McC4 of many African countries. On average, they still
or Kiva that allow for the effective accumulation of have to spend 4.8 per cent of GDP on servicing their
small-scale contributions. There is a notable increase (collective) external debt of $300 billion.141
in home-grown philanthropy, with some of Africas
richest individuals establishing private foundations to The repercussions of the global economic crisis,
help address social and environmental problems in increasing extension of concessional loans by
their countries. Southern partners and the efforts of several countries
to tap international markets to fund ambitious
By providing catalytic funding, leveraging resources, public-spending programmes have renewed
supporting long-term research and implementing concerns about debt sustainability and the possibility
partnerships, philanthropic actors are increasingly of a new debt crisis. According to the IMF and the
important in overcoming crucial obstacles to World Bank, 28 African low-income countries are
progress. Whether by driving the development of an now rated as having a high or moderate risk of
effective malaria vaccine (Bill and Melinda Gates experiencing debt distress more than at the time of
Foundation), increasing smallholder agricultural the Multilateral Debt Relief Initiative (MDRI) six years
productivity with better seeds, soils and markets ago.142 Moreover, 13 Sub-Saharan African countries
(Rockefeller Foundation) or improving the climate that have reached their HIPC completion points and
resilience in rural communities (Ford Foundation), consequently received billions of dollars in debt relief
they fill important gaps left by insufficient resources, are seeing renewed risks of debt distress.143

Massive debt burdens continue to constrain the development prospects

of many African countries.


From Aid Effectiveness to aid architecture. Many of these problems also

hamper the implementation and spread of effective
Development Effectiveness partnerships.

T here is widespread agreement that aid is not

the answer to Africas problems and that it must
be used not only to save lives in the short-term, but
Aid effectiveness, as defined by the Paris Declaration,
also places obligations on the recipients of aid, which
also to strengthen systems and increase countries many African states have yet to fulfil. They have
capacity to drive their own development through been particularly slow when it comes to increasing
economic growth and transformation in the long- the transparency of aid usage and the establishment
term. There is also agreement that the available of joint mechanisms for reviewing progress on their
resources must be used effectively and efficiently to commitments. Recent surveys suggest that only 15
maximize their developmental impact. Unfortunately, per cent have such a review mechanism in place.145
progress in implementing the Paris Declaration on Even though several studies predict significant
Aid Effectiveness and the Accra Agenda for Action efficiency and effectiveness gains from increased
remains slow. transparency, African nations have also been slow
in endorsing the International Aid Transparency
With OECD donors failing to meet their 2010 Initiative, through which 18 donors have agreed
implementation benchmarks, a significant proportion common reporting standards.146
of aid remains plagued by inefficiencies in delivery,
management and disbursement. More than half of Positive developments include the African Platform
OECD DAC aid, for example, is still delivered behind on Development Effectiveness, created by
schedule, causing an estimated deadweight loss African states before the 4th High-Level Forum on
of as much as 20 per cent of total aid.144 Other Aid Effectiveness in Busan in November 2011. The
problems include unnecessarily high transaction and European Union and other institutional donors have
administrative costs due to a proliferation of initiatives made further progress in harmonizing initiatives
and lack of coordination, burdensome conditionality, and increasing coherence of their efforts, including
medium- and long-term unpredictability, a lack of by involving the private sector in aligned and
alignment to country systems, and a fragmented complementary activities.147

Available resources must be used effectively and efficiently

to maximize their developmental impact.

The Transformative Power of Partnerships

The last year has shown that the state of progress
in Africa is almost as diverse as the continent
itself. While enormous challenges remain in
many sectors and countries, there are also
encouraging signs of progress. The next few
years will be critical as African countries attempt
to translate this progress into tangible results and
sustained transformation for their people ahead
of the 2015 MDG deadline. Given the proven but
heavily underutilized potential of partnerships for
development, the second part of our report is
dedicated to them.

A lthough the idea of partnership for development
is hardly new, it is currently experiencing a well
deserved renaissance as development needs
continue to multiply, governments increasingly
struggle to meet them, and a growing number of
exemplary partnerships are showing what is possible.
Attention is focused particularly on the potential of Main Public Sector
such partnerships to catalyse the energy, creativity Actors Africa
and resources of nongovernmental actors, such as National Governments and their Agencies
the private sector and civil society. African Union (AU) and its Programmes (including NEPAD)
African Development Bank (AfDB)
Despite the increasing attention, valuable lessons Regional Economic Communities (RECs)*
learned and successes in Africa and elsewhere, Arab-Maghreb Union (AMU)
East African Community (EAC)
we do not see nearly enough of these successes Economic Community of Central
replicated or brought to scale across the continent. African States (ECCAS)
We do not see effective partnerships in nearly Economic Community of West African
enough sectors. Consequently, many opportunities States (ECOWAS)
to tackle problems and drive development are Common Market for Eastern and
Southern Africa (COMESA)
being missed. So, what can we do to realize more of Intergovernmental Authority on
the potential of partnerships for development, and Development (IGAD)
spur more collaboration for progress? Southern African Development
Community (SADC)

*Official partner organizations of the AU

How Partnerships Are Main International

Already Contributing and Country Groupings
to Development International Organizations:
United Nations (UN) and its Specialized Agencies
International Financial Institutions (IFIs)

T he examples in the first part of this report show the

enormous contribution partnerships are already
making to development efforts across the continent.
International Monetary Fund (IMF)
World Bank Group
Multilateral Development Banks (MDBs)
They show that, under the right circumstances and Asian Development Bank (ADB)
European Bank for Reconstruction
with the right leadership, partnerships can fill crucial
and Development
gaps in existing development efforts, mobilize Inter-American Development
additional resources, and extend opportunities, Bank (IDB) Group
services and access to everything from infrastructure, Multilateral Financial Institutions (MFIs)
health and education to income, finance and European Investment Bank (EIB)
International Fund for Agricultural
markets. They can also help to reduce risks and costs,
Development (IFAD)
optimize the allocation of scarce resources, create Islamic Development Bank (IDB)
synergies, increase efficiencies, contribute to policy Nordic Development Fund (NDF)
development, and drive research and technological
progress by spreading knowledge and expertise. Country Groupings:
Association of Southeast Asian Nations (ASEAN)
The examples also show that partnerships can Arab League
take many forms. As challenges and opportunities European Union (EU)
multiply, and interests and motivations converge, G8
models have spread from small-scale cooperation
North Atlantic Treaty Organization (NATO)
between the private sector and civil society at Organization of American States (OAS)
community level, and publicprivate partnerships Organization for Economic Cooperation
around large-scale projects, to a vast array of possible and Development (OECD)
forms. However different, all these partnerships share Organization of the Petroleum Exporting Countries (OPEC)
two characteristics. They allow actors to combine

MODELS and actors

Partnerships between:
African Governments

African Governments and Developed Country Governments

Public sector

African Governments with Developing Country Governments (South-South Cooperation)

African Governments /Developed Country Governments/ Developing Country Governments (Triangular


African Governments and Global International Organizations (e.g. UN)

African International Organizations (e.g. AU) and Global International Organizations (e.g. UN)

African Governments and African Companies

African Governments and Developed Country Companies

Public-private sector

African Governments and Developing Country Companies

African Governments, Developed Country Governments and Developed Country Companies


African Governments, Developing Country Governments, and Developing Country Companies

African Governments, African Companies and African International Organizations (e.g. AU)

African Governments, Developed Country Company and Developed Country International

Organizations (e.g. EU)

African Governments, African Companies and Global International Organizations (e.g. UNDP)

African Governments, Developed Country Companies and Global International Organizations

African International Organizations (e.g. AU), Global International Organizations (e.g. World Bank),
and Developed Country Companies

African Governments and African CSOs

African Governments, African CSOs, and Developed Country CSOs

civil society (CSOs)

African CSOs

African CSOs and Developed Country CSOs

African CSOs and African Companies

African CSOs and Developed Country Companies

African CSOs and Developed Country CSOs and Developed Country Companies

African Governments and Global CSOs

African International Organizations (e.g. AU) and African CSOs

* All combinations can also include CSOs.


Public sector Multilateral/International Organizations African

Developing/Global South
Developed Country
Private sector Non-Governmental Organizations (NGOs)
and Civil Socierty Organizations (CSOs) Global


their capacities, expertise, resources, networks and development efforts of African governments and
comparative advantages in a way that adds value international donors, and bridge important gaps in
for each of them, and they allow them to engage a results-oriented (because profit-driven) manner.
in areas and issues in which they would or could not
engage on their own. Together with philanthropic organizations, businesses
have become the newest and arguably some of the
Many of the examples underline the central role most important allies of traditional development actors.
of the private sector.148 They prove that businesses Engaging them in partnerships has added much-
have much to contribute to development efforts, needed capacity, expertise and resources as well as
and that, with the right incentives, information and versatility, creativity and pragmatism to development
enabling framework, they can deliver clear winwin efforts across the continent and has created manifold
outcomes for themselves and wider society. They also opportunities to accelerate progress.
show that, built around commercial viability, private-
sector approaches to development challenges are At the same time, partnerships for development
often scalable. are not without their risks and potential pitfalls. If not
coordinated with existing initiatives and closely aligned
Many businesses now consider engaging in to national development frameworks, partnerships
development as more than an issue of corporate can complicate, dilute and even undermine other
social responsibility or philanthropy. Increasingly, development efforts. They can also lead to harmful
they regard development activities as essential competition for resources and unnecessary duplication
to their core business and a promising avenue of effort. Partnerships often have high transaction costs,
towards growth, greater market share, increased and complex decision-making processes can further
efficiencies and lower risks and costs.149 This burden already overstretched governments and
convergence between business interests cause problems of accountability and ownership. In
and development objectives is changing the combination with the tendency of many partnerships
traditional one-dimensional model of government- to develop in isolation, these well-known problems
led development.150 As businesses realize the make it imperative to integrate partnerships closely
commercial opportunities and benefits involved, into broader development strategies driven by African
they are increasingly willing to complement the governments.

Businesses have become the newest and arguably some

of the most important allies of traditional development actors.

The Transformative Power of Partnerships

How inclusive business models help to spread development

According to recent studies, people living on less than $8 a day have a combined annual income of
roughly $5 trillion. More and more companies invest in understanding this segment of the population, often
called the bottom of the pyramid. As they redesign or invent products to fit the cash flow of the poor,
integrate them into their value chains, offer service rather than ownership models, and leverage existing
distribution and payment platforms, development cooperation is undergoing one of its most fundamental
transformations yet. Africa is at the centre of this change. Spurred by the success of business models like
M-Pesa, more and more companies are extending their business to Africas poor, whether as employees,
producers, suppliers, distributors, customers or sources of innovation. In the process, they are increasing
access and opportunities, creating jobs, raising living standards, developing functional markets, cultivating
entrepreneurship and spreading innovation. A number of donors, including Germany and the UK, have
already expressed a clear interest in fostering the spread of inclusive business models to complement and
expand government-led development efforts.

Sources: International Finance Corporation (2010), Inclusive Business 2010: Telling Our Story: Base of the Pyramid Investments; Business Action for Africa et al. (2010), Accelerating Progress
towards the Millennium Development Goals through Inclusive Business: Delivering Results: Moving to Scale.

How Partnerships Basic Service Delivery

Could Be Driving P oor access to basic services and public goods
such as water, housing, healthcare and energy
Further Progress is becoming an increasingly serious development
challenge for millions of Africans. Conventionally seen
as a concern for governments, there is increasing

T here is no doubt that effective partnerships

are already contributing to development
across Africa but also that the number of
evidence that partnerships for development can help
to improve access to basic services by increasing the
efficiency and scope of delivery, offering alternative
people benefiting remains too small to effect sources and methods of access, significantly reducing
systemic change. By whatever count, the number operating and unit costs, and pioneering novel
of successful partnerships for development is methods of payment such as pay-as-you-go which
miniscule compared with both the potential and can cater to the cash-flow realities of Africas poor.
the need for them. Too often, activities remain
small-scale, localized and isolated, as partners There is no shortage of encouraging examples from
lack the capacity, resources or incentives to scale Africa and beyond, including d.lights production
up their operations, replicate them elsewhere, or of affordable solar-powered lamps for extremely
deliver more than piecemeal change. poor clients, Vestergaard Frandsens LifeStraw for
easy and cheap filtration of drinking water, and the
Of course, partnerships for development are not, Quality Public Services Action Now Coalition of
and will never be, a panacea for the continents Trade Unions.
many problems. Even brought to scale, they
cannot solve governance deficits or conflicts, at Partnerships can do more than just increase access to
least not in the short term; they cannot prevent services or improve their quality; they can also help to
refugee flows, droughts or crime. But they can help curb the politics of patronage, corruption and lack of
to improve access to and quality of development transparency. For example, several service providers
in many ways and, if scaled up, they can effect have begun to work with mobile-phone companies
sustained social and economic transformation, to develop direct-payment systems enabling users
particularly in the following key areas. to pay providers without recourse to intermediaries.


Efficient and affordable public services are central to the rural economies that are so central to poverty
human development and economic activity. There reduction still lack sufficient access to finance.
is also increasing demand for services, especially in There is thus great scope to expand proven business
fast-growing urban areas. Therefore, there is great models such as micro-finance, micro-insurance,152
scope for replicating proven and commercially m-commerce, linkage and community banking,
viable delivery models across places and sectors, remote distribution, and payroll-based lending.153
and for nurturing micro-economies of agglomeration
around these models.151

Access to Health
Access to Opportunities
L ack of access to healthcare facilities, medical
practitioners and medicine is one of the biggest
P artnerships have contributed significantly to
poverty reduction and social development
across Africa by extending opportunities to
and most fundamental challenges for Africas
poor and the continents development. It reduces
productivity, places enormous costs on society,
previously marginalized populations. They have
and prevents progress on every MDG. More
contracted smallholder farmers to produce
than in any other area, partnerships in the health
sorghum for beer-making and helped women to
sector have proven their potential to complement
establish local distribution businesses for soft drinks.
and expand on the efforts of the public sector.
Particularly partnerships built around the power
Successes include raising awareness, developing
of modern telecommunication technology have
and distributing vaccines and treatments, reducing
created valuable new platforms for development,
costs, and increasing information on the availability
including through the low-cost provision of banking
of treatments. There remains great scope to expand
and other enabling services previously inaccessible
partnerships further to strengthen health systems,
to most Africans. Partnerships have also increased
increase the number of skilled healthcare personnel,
opportunities by creating or strengthening markets,
and leverage the market size for investments in
integrating local populations into value chains,
research and development. There is also a need
reducing numbers of intermediaries, and promoting
to identify the reasons for the enormous success of
skills formation. There is great scope to stimulate
healthcare partnerships and replicate them across
further economic growth, employment and human
other sectors.
development by spreading access to affordable
connectivity, applications and services, as well as
economic opportunities, to more of Africas people,
particularly women. Infrastructure

Access to Finance I mprovements to Africas transport, energy and

communication infrastructure have particular
impact on economic development and efforts

I nsufficient access to finance hampers the efforts and

ambitions of individuals, companies and countries,
and constrains entrepreneurship, innovation and the
to reduce poverty and achieve the Millennium
Development Goals.154 Evidence collected by the
World Banks Africa Infrastructure Country Diagnostic,
expansion of markets. Collaborative initiatives such for example, has shown that improvements in
as the mobile-phone-based money-transfer service transport, energy and communications infrastructure
M-Pesa, the Partnership for Making Finance Work for have contributed substantially more to African per
Africa or AGRAs cooperation with Standard Bank of capita growth over the past decade than structural
South Africa and the Millennium Challenge Account policies, and that an improved infrastructure stock
to increase commercial lending to smallholder could increase GDP growth rates in Africa by as much
farmers, have already shown how to improve access as 1 per cent.155 Partnerships for development are
to finance by leveraging existing flows, mitigating already contributing to infrastructure improvements
risks and facilitating the development of the financial by helping to raise capital, accelerate project
sector. But particularly the all-important small and delivery, reduce operating costs and improve
medium-sized enterprises (SMEs) that are so central maintenance, but given the enormity of the
to job creation and economic growth as well as challenge there is great potential and need for

The Transformative Power of Partnerships

Replicable models of increasing access to finance

Approach Example/s Comment

The Equity Bank model Equity Bank The clearest proof that an exceptionally profitable business can
be built by providing appropriate and affordable banking services
dedicated to economically active low-income consumers in Africa.
Leasing for small Burkina Bail Small-business demand for alternative forms of finance, including
businesses leasing, remains high.
Overdraft finance and Equity Bank, Unsecured overdrafts for small businesses are a fraught proposition
cash-flow smoothing Mbinga, for conservatively inclined banks but Mbingas kifuku product
for small businesses Stanbic shows it can be done. Equitys biashara imara product and Stanbic
Uganda Ugandas warehouse-receipts product are both serious attempts
to address business cash-flow fluctuations with alternative forms of
SME lending Banque Misr Banque Misr proves it is possible to lend money profitably to very
small businesses. Other organizations such as Access Holding and
ProCredit, both active in Africa, also demonstrate that it is possible
to replicate a standardized approach to small-business lending in
different jurisdictions.
Bundling insurance MLife, If consumers start to experience the benefits of insurance by
through small loans MicroEnsure seeing it pay off a microloan or compensate a farmer for weather-
damaged crops, this will reinforce perceptions of its value among
poorer consumers. Working through the continents burgeoning
commercial micro-lenders could be a significant growth opportunity
for insurers.
Paying social Absa-David Subsidizing banks to open basic bank accounts into which social
payments through payments, such as an old-age grant, can be paid extends access
bank accounts while also providing beneficiaries with safe and cost-free means of
receiving money.
The Mini ATM FNB As these devices are mobile-enabled, no landlines are required. The
small size of the terminals means they can be housed in very small
retail outlets and the retailer, not the bank, dispenses the cash.
Mobile payments M-banking The demographics of mobile-phone use, the early success of
M-Pesa and other models, and the continuing flux around evolving
business models all mean that this continues to be a space that will
repay careful monitoring. Although the operational complexities
and required investment are significant, the potential for large-scale
success is clear.
Source: Mark Napier, ed. (2010), Real Money, New Frontiers: Case Studies of Financial Innovation in Africa.


scaling up financing and operating models that have growing global demand for food and other
worked. Also, current partnerships are concentrated agricultural products. There is particularly great
in a small number of African countries (such as South scope for partnerships to strengthen agricultural
Africa and Nigeria) and sectors (such as energy and value chains and improve access to rural credit,
telecommunications), leaving significant scope for including weather-indexed crop insurance, and
both functional and geographical expansion. to productive inputs and markets.

Agriculture Low-Carbon Growth

A griculture is a key driver of economic growth,

poverty reduction, human security and
social development. Partnerships have already
G iven its abundance of renewable resources
and the general absence of high-carbon
legacy industries, Africa is well placed to
helped to increase efficiency at all stages of embark on low-carbon growth. Partnerships
the agricultural value chain from production to have proven their ability to enhance energy
storage, trading, processing and retailing. They and resource efficiency. Examples include the
have increased access to finance, inputs like distribution of more efficient and less polluting
seeds and fertilizer, and weather information. cookstoves, increased access to mitigation
Partnerships have supported basic and advanced technology, and support for investment in low-
research, and fostered a more holistic approach carbon infrastructure and renewable-energy
to rural development by promoting agricultural generation. 156 Inter national support initiatives,
growth corridors and agro-industries. Nonetheless, particularly those agreed as part of the UNFCCC
Africa requires even greater sustainable increases process, offer real opportunities to finance,
in agricultural productivity to accommodate scale-up, and embed such partnerships at
population growth and changing consumption the heart of Africas development and growth
patterns, achieve food security for its people, agendas on both the individual and industrial
and produce enough surpluses to help meet levels.

The Transformative Power of Partnerships

Obstacles to Success The Information Gap

U nfortunately, the transformative potential of

partnerships remains constrained by several
T he lack of reliable, up-to-date and symmetrical
information and data across many parts of Africa
severely hinders the planning and implementation
obstacles. Specific operational and programmatic of partnerships, particularly if the private sector is
blockages vary, but many relate to poor enabling involved. Even the most enterprising companies
environments and governance deficits. These include are reluctant to scale up investment in partnerships
weak institutions, burdensome bureaucracies, without full understanding, or at least a deeper
insufficient access to courts and other legal facilities, appreciation, of the needs, trends and benefits
and budgetary and human-resource limitations of the involved. Partnerships are often also hampered
public sector. Partnerships involving the private sector by insufficient information on the motivations,
are not scalable or replicable where governments capabilities, resources and comparative advantages
fail to remove such obstacles and cannot offer the of potential partners.
necessary legal guarantees or incentive structure
to underwrite a viable growth strategy. Endemic
corruption is another major challenge: many good
partnerships are impeded or even prevented by
The Imagination Gap
corruption, such as when unnecessary intermediaries
pocket part of the benefits.157 In addition to such
hurdles related to poor regulatory environments and
T he information gap feeds into a gap in imagination.
Without sufficient information, it is difficult for
many actors to escape institutional mindsets and
weak governance, there are at least five structural
cultures, to envisage new partnership models and
and often crosscutting gaps hampering the initiation
pro-poor modifications of sourcing, production and
and spread of successful partnership models.
distribution. Even with the necessary information,
many actors struggle to see beyond traditional
dichotomies and overcome institutional scepticism.
The Trust Gap Yet, this is often necessary to free the human and
financial resources to drive replication or scaling of

T raditional suspicions remain one of the most imaginative solutions knowing the dots is one thing,
basic obstacles to new or larger partnerships. connecting them is another.
Many governments and non-governmental
organizations continue to mistrust the private-
sector profit motive. They continue to view it The Resources and Capacity Gap
mainly as a cause of social, environmental and
economic problems, rather than as part of a
potential solution. There is widespread suspicion E ven though new financing methods including
hybrid financing that uses a mixture of debt,
equity and other financial instruments, are constantly
that many companies engage in partnerships
merely for reputation management, and that being developed, there continues to be a notable
the benefits are offset by companies harmful lack of resources to plan, implement and operate
behaviour in other areas. Many also fear partnerships for development. Given shareholder
increased corruption and reduced control as pressure for short-term profits, many international
a result of companies growing engagement companies are reluctant to devote the necessary
in delivery of public goods and services. resources and capacities to partnerships with distant
Companies, on the other hand, often mistrust the prospects of value creation. Many African actors,
reliability of government commitments, and may particularly in civil society and non-governmental
view attempts to address social weaknesses as organizations, simply do not have resources for up-
coming at their expense. This trust gap is caused front investments or capacities to staff and operate
and compounded by transparency deficits, and scaled-up partnerships. Here, national governments,
the resultant lack of information and clarity about international donors and multilateral development
what each partner wants from the relationship. banks can play a particularly constructive role


by providing catalytic investments to meet initial built around inclusive business models. By contrast,
financing needs for scaling up or replication. large and populous countries like Nigeria or
South Africa can offer economies of scale, large
numbers of potential consumers and consolidated
The Perceived Benefits Gap markets. This highlights the enormous potential
for regional integration to increase perceived

B usinesses are primarily interested in partnerships benefits through market expansion. Another
with potential to generate benefits such as obstacle to replication concerns the perceived
future resource streams. Therefore, low ceilings benefits of intellectual property and trademarks.
to perceived benefits, or insufficient scale, may A partnership around an entrepreneur with a
prevent private-sector companies from engaging good idea may resist the replication of that
in a particular partnership. This may explain why idea by others, especially if the replication is
small economies like Niger or Mali have difficulty perceived to deny business opportunities to the
in attracting publicprivate partnerships or those original entrepreneur.

The Transformative Power of Partnerships

The conditions needed to foster successful
partnerships and adapt them to other regions,
countries, and sectors are not a mystery. They
include: a viable growth strategy based on
realistic assessments of demand, receptivity, risks
and absorptive capacity; a clear delineation
of respective responsibilities and commitments;
sufficient resources, capacity and expertise; full
transparency; harmonized expectations and
a common vision among partners; and the
fulfillment of commitments. Naturally, the precise
ingredients vary from case to case and are
always firmly grounded in the local context, which
reduces the usefulness of general prescriptions
and recommendations. However, it is clear that
all actors can do more to remove blockages,
facilitate the spread of successful partnership
models across the continent, and increase their
developmental impact.


African Governments

A frican governments bear the main responsibility for the continents progress. While they depend on
supportive global policies and agreements, it is up to them to provide the plans, frameworks and
conditions for their countries development and the realization of their peoples potential. Similarly, when it
comes to fostering partnerships and maximizing their developmental impact, it is up to African governments
to create the necessary conditions and incentive structures. They can do much to improve the attractiveness,
scalability and sustainability of partnerships, and to contribute constructively at all stages.

African governments can strengthen partnerships for development by...

Clearly articulating, prioritizing and communicating development needs
Providing an enabling environment, which includes clear policies, sufficient administrative capacities at
all levels of government, and supportive legal and regulatory frameworks
Facilitating access to financial incentives, investment-risk-mitigation instruments and other benefits to
increase the attractiveness of partnerships
Providing seed and catalytic funding to help bridge financing gaps at all stages of partnerships
Driving regional integration to increase market size and improve scalability and sustainability of
Coordinating local, national and regional authorities to minimize the administrative burden on potential
Leveraging the skills, resources and expertise of the African Diaspora to fill capacity gaps
Raising awareness through gathering and disseminating information, highlighting best practices and
drawing attention to specific opportunities
Ensuring full transparency of processes and accountability for results
Improving liaison mechanisms with the private sector and civil society, including through dedicated
contact persons and clear responsibilities in the office of the Head of Government and social ministries.

international donors

I nternational donors have made a series of commitments to Africa, which they need to keep. They share
responsibility for Africas progress, particularly when it comes to ensuring a level playing field, correcting
harmful global realities, particularly with respect to trade, climate change, the international financial
system and achieving the MDGs. Given their resources, expertise, networks and influence there is much
that international donors can contribute to initiating and supporting partnerships for development.

International donors can strengthen partnerships for development by...

Leveraging their power to convene different types of stakeholders to facilitate and catalyze them
around specific development challenges
Mobilizing resources for partnerships and providing seed and catalytic funding to help bridge financing
gaps at all stages of partnerships
Providing risk mitigation and other supportive guarantees, including by assuming some of the risks
Building the capacity of actors to engage constructively in partnership
Helping to collate information and guidelines by supporting the study of effective partnerships and the
dissemination of results
Minimizing overlap of initiatives and ensuring maximal coordination between initiatives
Providing forward-looking data on planned investments to facilitate partnership building around them.

The Transformative Power of Partnerships

Private-Sector Actors

T he private sector is increasingly important in Africas development. However, there are still too many
companies not adhering to fundamental principles of corporate responsibility, such as those articulated
in the UN Global Compact. While private-sector actors should at least do no harm, there is enormous
scope for businesses to add social, economic and environmental value. They can do so by modifying their
business models to target the poor or integrate local communities and producers into their value chains, but
also through cross-sectoral partnerships around specific development challenges. As providers of resources,
innovation and expertise, private-sector actors often hold the key to the success of such partnerships.

Private-sector actors can strengthen partnerships for development by...

Showing leadership and building in-company commitment for partnerships
Managing expectations within companies and among partners
Managing shareholder expectations for short- and long-term results
Freeing human and financial resources for the identification, planning and implementation of
Mobilizing business networks and sharing knowledge, lessons learned and expertise
Fostering peer learning
Using social-investment budgets to facilitate entry into new places or segments that may not otherwise
meet the financial-viability threshold for core business activities
Examining their entire business model to identify potential contribution to and opportunities for collaboration
Contributing expertise in project design, management and implementation to the solution of large-
scale challenges
Helping shape policy through constructive input, preferably through harmonized business associations
Improving their relations and capacity to engage with governments and civil society
Clearly communicating support needs and requirements for engaging in partnerships.

Civil-Society Actors

C ivil-society actors, including non-governmental civic and social organizations, citizen groups, trade
unions, the media and faith-based organizations, play a crucial function in the system of accountability
that underlies the success of all partnerships. Given the identified problems caused by lack of information
and misperception of benefits and risks, there is also great scope for them to mediate and broker partnerships
for development as well as draw attention to opportunities and need for such partnerships.

Civil-society actors can strengthen partnerships for development by...

Helping to identify and communicate development needs and partnership opportunities
Playing a crucial intermediary role between companies, governments, local entrepreneurs and
communities, as well as national and international finance institutions and donors
Collecting and sharing information on lessons learned and available supportive initiatives to help practitioners
Providing crucial checks and balances through monitoring partnership implementation, highlighting
shortcomings and reporting mismanagement
Supporting project improvements through collecting and sharing feedback at grassroots level
Supporting the development and utilization of accountability tools
Helping to identify, inform and educate (potential) beneficiaries of partnerships
Harnessing and sharing their experience in cultivating change agents at grassroots and national levels
Identifying synergies between initiatives and formulating a common agenda
Helping to improve coordination between initiatives to minimize unnecessary overlap and inefficiencies.



D rawing broad conclusions from Africas raucously

diverse experience over the last year is not
easy, even though some things have not changed.
demographic changes, complicate the achievement
of responsive governance around a shared economic
vision. But, as Africas growth and development
The continent remains marginalized at the top agendas continue to converge, new approaches and
tables of global decision making and vulnerable solutions are becoming possible, and necessary. As
to global economic trends. It continues battling to we have argued throughout this report, partnerships
achieve social progress against a backdrop of rapid for development are among the most promising, and
population growth, increasing urbanization and poor potentially most effective, of these new options. They
management of its human and natural resources. can complement, expand and improve government-
led development efforts and, if scaled up, can effect
The most striking developments have been in the positive structural change and sustained economic
political arena. Governance deficits are on display at and social transformation.
all points of the African compass, including Libya to
the north, Somalia to the east, Zimbabwe to the south, Against this background, we have assessed how
and Cte dIvoire to the west, with political progress in to strengthen, replicate and scale up the many
many other countries looking distinctly fragile. successful examples of partnerships already evident
in Africa and how best to create the policy framework
and incentives needed to spur further collaboration
And yet... there are strong grounds for hope, even
for progress. We have come to the conclusion that
where there has been most conflict and political
all actors can do more to facilitate the spread of
turmoil. It is too early to say how things will turn out
successful partnership models across countries and
in countries facing difficult transitions. But leaders and
sectors and that doing so is in their own self-interest.
people across the continent have not missed the
National governments can do more to ensure the
point: the role of the state is to serve its citizens, not
regulatory conditions that allow partnerships to
its rulers.
mature beyond small-scale and localized projects.
International donors and institutions can do more to
As we have argued before, the key ingredient for initiate and provide seed funding, risk mitigation and
progress remains good governance by the global other supportive guarantees to innovative models.
community to ensure that Africas place and potential Private-sector actors can do more to move beyond
are fully supported, and most importantly by African traditional patterns of sourcing, production, and
leaders and people, to ensure that the continents distribution, and expand their operations to previously
vast resources are geared to positive ends. marginalized segments of the African population.
And civil society organizations can do more to play a
The lingering effects of the global economic and constructive intermediary role and provide expertise
food crises, as well as accelerating climatic and and access at grassroots and national levels.

Partnerships do not shift the responsibility for progress away from

the shoulders of African leaders and international donors,
even though they can help to spread the burden.

The Transformative Power of Partnerships

The success of partnerships depends on clear Crucially, partnerships also do not shift the responsibility
delineation of respective roles, the availability for progress away from the shoulders of African leaders
of reliable information and, above all, the right and international donors, even though they can help
incentives. For the private sector, profit-seeking is at the to spread the burden. Donors still need to fulfill the
heart of the incentive structure, but brand validation extensive financial and political commitments they
and corporate responsibility also matter. National have made to the African continent and it remains
governments want access to networks, expertise and up to African leaders to inspire processes and build
resources. Civil-society organisations want to see their practical capacities to translate the continents
specific issues addressed, and donors want to offset wealth and potential into tangible results for its
demands and increase the impact of their activities. citizens. It also remains up to them to protect these
Fortunately, understanding and acceptance of citizens from the vagaries of nature and the volatilities
these different motivations is growing among the of the global economy, provide them with adequate
various actors. Together with the convergence of public services and afford them the opportunities to
development objectives and business interests, rising feed and educate their children and make a decent
pressures on international aid, as well as ample proof living. For this they need to meet the interlinked
that partnerships can mature into self-sustaining and challenges of growing their economies, conserving
profit-making ventures with transformative effects this their environments, and achieving the MDG-based
makes collaboration an increasingly attractive option targets they set themselves a decade ago.
for all sides.
This is possible. We have seen renewed proof that
However, in spite of the enormous value they can rapid progress is achievable even in the most
add, partnerships for development are certainly not resource-deprived and insecure circumstances. We
a panacea for all of Africas problems. Even brought have seen that good governance, transparency
to scale, there are many challenges they cannot and accountability bring results, and that economic
solve. As governments try to harness capacities and growth can drive development if it leads to job
resources that are additional and complementary creation, structural transformation and the spread
to their own, partnerships for development are only of opportunities. And we have undoubtedly seen
one instrument in their arsenal albeit an increasingly that partnerships for development can help to fill
powerful one. They do not replace good governance, gaps, expand efforts and accelerate progress. We
strong institutions and political leadership as the core therefore end by calling on African leaders and their
ingredients of progress. On the contrary, partnerships partners across regions and sectors to intensify their
depend on them to be able to fulfill their potential. collaboration for the continents progress.

Partnerships do not replace good governance, strong institutions

and political leadership as the core ingredients of progress.


list of ACRoNYMS
AAP Africa Action Plan HIPC Highly Indebted Poor Countries (Initiative/
AEC African Economic Community Programme)
AEO African Economic Outlook IATI International Aid Transparency Initiative
AfDB African Development Bank ICA Infrastructure Consortium for Africa
AFMI African Financial Market Initiative ICC International Criminal Court
AGF Africa Green Fund ICT Information and Communication
AGOA African Growth and Opportunity Act Technology
AGRA Alliance for a Green Revolution in Africa IFAD International Fund for Agricultural
AICD African Infrastructure Country Diagnostic Development
AMCEN African Ministerial Conference on the IFFIm International Finance Facility for
Environment Immunization
AMCOW African Ministers Council on Water IFI International Financial Institution
AMFm Affordable Medicines Facility Malaria IFPRI International Food Policy Research Institute
APDev African Platform for Development IGAD Intergovernmental Authority on
Effectiveness Development
APOC African Programme for Onchocerciasis IHP International Health Partnership
Control IIED International Institute for Environment and
APRM African Peer Review Mechanism Development
APSA African Peace and Security Architecture ILO International Labour Office
ASEAN Association of South East Asian Nations IMF International Monetary Fund
ASF African Standby Force IPCC Intergovernmental Panel on Climate
AU African Union Change
AUC African Union Commission ITUC International Trade Union Confederation
AWF African Water Facility LDC Least Developed Country
C10 Committee of Ten MCC Millennium Challenge Corporation
CAADP Comprehensive African Agriculture MDG Millennium Development Goal
Development Programme MDRI Multilateral Debt Relief Initiative
CAHOSCC Conference of African Heads of State and MIP Minimum Integration Programme
Government on Climate Change MPI Multidimensional Poverty Index
CARMMA Campaign on Accelerated Reduction of NAFTA North American Free Trade Agreement
Maternal Mortality in Africa NEPAD New Partnership for Africas Development
CDI Commitment to Development Index OAU Organization of African Unity
CDM Clean Development Mechanism ODA Official Development Assistance
CEWS Continental Early Warning System OECD Organization for Economic Cooperation
COMESA Common Market for Eastern and Southern and Development
Africa PCD Policy Coherence for Development
CSR Corporate Social Responsibility PEFA Public Expenditure and Financial
DAC Development Assistance Committee Accountability (Partnership)
EAC East African Community PIDA Programme for Infrastructure Development
ECCAS Economic Community of Central African in Africa
States PSC Peace and Security Council
ECOWAS Economic Community of West African PSD Private Sector Development
States PPP PublicPrivate Partnership
EDF European Development Fund REC Regional Economic Community
EFA Education for All REDD Reducing Emissions from Deforestation and
EPA Economic Partnership Agreement Forest Degradation
EU European Union SADC Southern Africa Development Community
FAAP Framework for African Agricultural SDR Special Drawing Rights
Productivity SME Small and Medium-Sized Enterprise
FAO Food and Agricultural Organization UNCTAD UN Conference on Trade and Development
FARA Forum for Agricultural Research in Africa UNEP UN Environment Programme
FOCAC Forum on ChinaAfrica Cooperation UNESCO UN Educational, Scientific, and Cultural
FSB Financial Stability Board Organization
FTI Fast Track Initiative UNFPA UN Population Fund
FTT Financial Transaction Tax UNICEF UN International Childrens Emergency
GAFSP Global Agriculture and Food Security Fund
Program UNIFEM UN Development Fund for Women
GAVI Global Alliance for Vaccination and WBCSD World Business Council for Sustainable
Immunization Development
GEF Global Environment Facility WEF World Economic Forum
GDP Gross Domestic Product WDR World Development Report
GNI Gross National Income WHO World Health Organization
HDI Human Development Index WTO World Trade Organization

The Transformative Power of Partnerships

All data used in this report are drawn from official and readily available sources, which are referenced below.
Every effort has been made to cite the most recent figures, even though occasionally preference has been
given to older but more reliable data. As with every report, the reader should be aware of the inherent limitations
of the available data and projections as well as the considerable controversies around the prevailing methods
of measuring progress. To the best of our knowledge, the information and data presented in this report was
accurate and the most up to date available as of 20 April 2011.

Quoted averages may mask significant differences between individual countries and within regions. As far as
possible, all amounts are adjusted for purchasing-power parity. Unless stated otherwise, amounts are quoted in
United States Dollars.

Readers are encouraged to quote and reproduce material from this report for educational, not-for-profit
purposes providing that they acknowledge the Africa Progress Report 2011 as the source.

1 The Economist (2000), The Hopeless Continent

2 IMF (2010), Regional Economic Outlook Sub-Saharan Africa: Weathering the Storm
3 AfDB, C10, UNECA, AU Commission and Korea Institute for International Economic Policy (2010), Achieving Strong, Sustained and
Shared Growth in Africa in the Post-Crisis Global Economy
4 Boston Consulting Group (2010), The African Challengers: Global Competitors Emerge from the Overlooked Continent
5 UNCTAD and Hochschule fr Technik und Wirtschaft Berlin (2011), The Financial and Economic Crisis of 2008-2009 and Developing
6 AfDB, C10, UNECA, AU Commission and Korea Institute for International Economic Policy (2010), Achieving Strong, Sustained and
Shared Growth in Africa in the Post-Crisis Global Economy
7 UNCTAD (2011), 5th Global Investment Trends Monitor
8 AUC and UNECA (2010), Economic Report on Africa
9 World Bank (2011), Leveraging Migration for Africa: Remittances, Skills, and Investments; see also World Bank (2011), Migration and
Remittances Factbook 2011; UNCTAD (2011), Global Economic Prospects January 2011 Update Regional Annex for SSA
10 UNWTO (2011), World Tourism Barometer 2011
11 IMF (2011), World Economic Outlook Update
12 The Economist (2011), Africas Impressive Growth; see also Steven Radelet (2010), Emerging Africa: How 17 Countries are Leading
the Way
13 AUC and UNECA (2011), Governing Development in Africa: The Role of the State in Economic Transformation
14 McKinsey Global Institute (2010), Lions on the Move: The Progress and Potential of African Economies
15 McKinsey Global Institute (2010), Lions on the Move: The Progress and Potential of African Economies
16 AfDB, C10, UNECA, AU Commission and Korea Institute for International Economic Policy (2010), Achieving Strong, Sustained and Shared
Growth in Africa in the Post-Crisis Global Economy, p. 34; UNTAD and UNIDO (2011), Economic Development in Africa Report 2011
17 AfDB (2010), Chinese Trade and Investment Activities in Africa, AfDB Policy Brief, Vol. 1, Issue 4
18 Experts Group convened by Germany, Great Britain, Indonesia and Turkey (2011), The Doha Round: Setting a Deadline, Defining a
Final Deal, Interim Report
19 UN-OHRLLS, UNDP and UNECA (2010), Outcome Document of the Africa Regional Preparatory Meeting on the Review of the
Implementation of the Brussels Programme of Action
20 AfDB (2010), African Economic Outlook 2010
21 ODI (2010), Economic Growth and the MDGs, Briefing Paper 60; see also AfDB, AUC, and UNECA (2010), Assessing Progress in Africa
toward the Millennium Development Goals
22 IMF (2011), Emerging Africa Expected to See Rise in Investment
23 UNCTAD (2011), Global Economic Prospects January 2011 Update Regional Annex for SSA
24 McKinsey Global Institute (2010), Fulfilling the Promise of Sub-Saharan Africa
25 McKinsey Quarterly (2010), Africas Path to Growth: Sector by Sector
26 McKinsey Global Institute (2010), Lions on the Move: The Progress and Potential of African Economies
27 McKinsey Global Institute (2010), Fulfilling the Promise of Sub-Saharan Africa
28 AUC and UNECA (2011), Economic Report on Africa 2011: Governing Development in Africa The Role of the State in Economic
29 Mo Ibrahim Foundation (2010), Ibrahim Index of African Governance
30 Mo Ibrahim Foundation (2010), Ibrahim Index of African Governance
31 Only elections that took place between April 2010 and April 2011 are considered
32 Electoral Institute for the Sustainability of Democracy in Africa (2011)
33 Economist Intelligence Unit (2010), Democracy Index 2010: Democracy in Retreat
34 Freedom House (2011), Freedom in the World 2011
35 AEO (2010), Database on African Fiscal Performance
36 AEO (2010), African Economic Outlook 2010: Public Resource Mobilization and Aid
37 C-10 (2010), Domestic Resource Mobilization across Africa: Trends, Challenges and Policy Options
38 Revenue Watch Institute and Transparency International (2010), Revenue Watch Index 2010
39 G20 (2010), Anti-Corruption Action Plan: G20 Agenda for Action on Combating Corruption, Promoting Market Integrity and
Supporting a Clean Business Environment, Annex III to G20 Seoul Summit Document


40 UNECA (2010), Opposition Parties in Africa: Fighting for Survival

41 Transparency International (2010), Corruption Perceptions Index 2010
42 World Bank (2010), Quiet Corruption: Undermining Development in Africa
43 AU (2011), Decisions and Declarations of the 16th Ordinary AU Summit
44 The Economist (2011), The African Union: Short of Cash and Teeth
45 Continental Advisory Research Team (2010), State of the Union Continental Report 2010
46 Konrad Adenauer Foundation (2010), Growth and Responsibility: The Positioning of Emerging Powers in the Global Governance System
47 G24 (2010), Communiqu of 7 October 2010; see also Ngaire Woods (2010), The G20 Leaders and Global Governance, GEG
Working Paper 2010/59
48 G20 (2010), The G20 Seoul Summit Leaders Declaration
49 EU (2010), Tripoli Declaration
50 World Bank (2011), World Development Report 2011: Conflict, Security and Development
51 Center on International Cooperation (2011), Annual Review of Global Peace Operations 2011
52 Institute for Economics & Peace (2010), The Global Peace Index 2010
53 See Henk-Jan Brinkman and Cullen Hendrix (2010), Food Insecurity and Conflict: Applying the WDR Framework, World Development
Report 2011 Background Paper; Frances Stewart (2010), Horizontal Inequalities as a Cause of Conflict, World Development Report 2011
Background Paper
54 Lant Pritchett and Frauke de Weijer (2010), Fragile States: Stuck in a Capability Trap?, World Development Report 2011 Background Paper
55 Alex Evans (2010), Resource Scarcity, Climate Change and the Risk of Violent Conflict, World Development Report 2011 Background
Paper; see also The Hague Centre for Strategic Studies (2010), Resource Scarcity in the 21st Century: Conflict or Cooperation?
56 AU PSC (2011), Report of the Peace & Security Council on its Activities and the State of Peace and Security in Africa
57 UN (2010), The Millennium Development Goals Report 2010
58 There are substantial discussions on the effects of inequality. See, for example, The Economist (2011), The rich and the rest: What to
do (and not to do) about inequality
59 UNDP (2010), Human Development Report 2010
60 ILO (2010), The World Social Security Report 2010/11: Providing Coverage in Times of Crisis and Beyond
61 UN General Assembly (2010), Resolution A/65/L.1. For more information on the MDG Acceleration Framework see UNDP (2010),
Unlocking Progress: MDG Acceleration on the Road to 2015.
62 See, for example, Institute for Economic Affairs (2011), A New Understanding of Poverty
63 ILO (2011), Global Employment Trends 2011: The Challenge of a Jobs Recovery; see also UNCTAD (2011), World Economic Situation
and Prospects 2011
64 IFAD (2011), Rural Poverty Report 2011
65 UNDP (2010), Human Development Report 2010
66 UN-HABITAT (2011), Infrastructure for Economic Development and Poverty Reduction in Africa
67 UN-HABITAT (2010), State of the Worlds Cities 2010/2011: Cities for All Bridging the Urban Divide. See also Ben Arimah (2010), The Face
of Urban Poverty: Explaining the Prevalence of Slums in Developing Countries, United Nations University Working Paper No. 2010/30
68 Emmanuel Skoufias et al (2011), The Poverty Impacts of Climate Change, World Bank Economic Premise no. 51
69 UNESCO (2011), EFA Global Monitoring Report: The Hidden Crisis Armed Conflict and Education
70 AfDB, AU, UNECA and UNDP (2010), Assessing Progress in Africa toward the Millennium Development Goals: MDG Report 2010
71 UN (2010), The Millennium Development Goals Report 2010
72 UN Department of Economic and Social Affairs (2010), The Worlds Women 2010: Trends and Statistics
73 UNESCO (2011), Building Human Capacities in Least Developed Countries to Promote Poverty Eradication and Sustainable Development
74 AU (2010), Nairobi Declaration on the African Womens Decade
75 UNDP (2010), Human Development Report 2010
76 AfDB, AU, UNECA and UNDP (2010), Assessing Progress in Africa toward the Millennium Development Goals: MDG Report 2010
77 WEF (2010), The Global Gender Gap Report 2010
78 UN Commission on the Status of Women (2011), To Promote Womens and Girls Access to Education, Training, Science and
Technology; UNDP (2010), The Gender Inequality Index 2010;
79 UNDP (2010), The Gender Inequality Index 2010
80 Agence Franaise de Dveloppement and World Bank (2010), Gender Disparities in Africas Labor Market
81 ITUC (2011), Living with Economic Insecurity: Women in Precarious Work
82 FAO (2011), The State of Food and Agriculture; CGD (2010), The Economics of Population Policy for Carbon Emissions Reduction in
Developing Countries, Working Paper 229
83 WHO (2010), The World Malaria Report 2010
84 WHO (2010), World Health Statistics 2010
85 AfDB, AU, UNECA and UNDP (2010), Assessing Progress in Africa toward the Millennium Development Goals: MDG Report 2010; Also
see Margaret Hogan et al (2010), Maternal Mortality for 181 Countries, 19802008: A Systematic Analysis of Progress towards Millennium
Development Goal 5, The Lancet, Vol. 375, Issue 9730
86 APP (2010), Maternal Health: Investing in the Lifeline of Healthy Societies & Economies
87 AU (2010), Summit Declaration on Maternal, Infant and Child Health and Development
88 See Global Polio Eradication Campaign (2010), Annual Report 2010; WHO and UNICEF (2010), Joint Annual Measles Initiative Report
2010; Carter Center (2011), Guinea Worm Disease Campaign Nears Eradication Goal; WHO, UNAIDS, UNICEF et al. (2010), Children and
AIDS: Fifth Stocktaking Report 2010
89 GAVI (2010), Saving Lives & Protecting Health: Results and Opportunities
90 Bill & Melinda Gates Foundation (2011),
91 G8 (2010), Muskoka Declaration
92 WHO (2010), The World Health Report 2010: Health Systems Financing The Path to Universal Coverage
93 WHO (2010), The World Health Report 2010: Health Systems Financing The Path to Universal Coverage; WHO and UN Habitat (2010),
Hidden Cities: Unmasking and Overcoming Health Inequities in Urban Settings
94 UNSG (2011), Uniting for Universal Access: Towards Zero New Infections, Zero Discrimination, and Zero AIDS-Related Deaths, Report by
the Secretary-General; see also WHO, UNAIDS, UNICEF et al. (2010), Children and AIDS: Fifth Stocktaking Report 2010; Whitaker Group
(2011), Africa Health News; World Diabetes Foundation (2010), Annual Review 2010; AfDB, AU, UNECA and UNDP (2010), Assessing
Progress in Africa toward the Millennium Development Goals: MDG Report 2010
95 UNEP (2010), African Water Atlas
96 UNEP (2010), African Water Atlas

The Transformative Power of Partnerships

97 WaterAid (2011)
98 UN (2010), The Millennium Development Goals Report 2010
99 UN (2010), The Millennium Development Goals Report 2010
100 WHO and UNICEF (2010), Joint Monitoring Report 2010: Progress on Sanitation and Drinking Water
101 UNECA (2010), Equal Access to Basic Services in African LDCs: The Need for Coherent, Inclusive and Coherent Policy Frameworks
102 WHO and UN Habitat (2010), Hidden Cities: Unmasking and Overcoming Health Inequities in Urban Settings
103 AICD (2010), Annual Report
104 AfDB (2010), Financing Investments in Water for Growth
105 AfDB (2010), Water Sector Governance in Africa
106 UNDG (2010), MDG Good Practices Report 2010
107 The Global Compact (2010), The CEO Water Mandate Guide to Responsible Business Engagement with Water Policy
108 International Food Policy Research Institute (2010), Global Hunger Index 2010
109 AfDB, AU, UNECA and UNDP (2010), Assessing Progress in Africa toward the Millennium Development Goals: MDG Report 2010; FAO
(2010), The State of Food Insecurity in the World: Addressing Food Insecurity in Protracted Crises
110 The Economist (2011), The Future of Food: What is Causing Food Prices to Soar and What Can Be Done about It?
111 World Bank (2011), Food Price Watch
112 World Bank (2011), Food Price Watch
113 UK Government Office of Science (2011), The Future of Food and Farming: Challenges and Choices for Global Sustainability
114 IIED (2011), Land Deals in Africa: What is in the Contracts?
115 WMO (2010), 2010 Equals Record for Worlds Warmest Year, Press Release 96/2010
116 FAO (2011), The State of the Worlds Forests 2011
117 The Economist (2011), Climate Change and Crop Yields: One Degree Over; see also UNDP (2011), Fast Facts: Climate Change and UNDP
118 UNEP (2010), Environmental Consequences of Ocean Acidification: A Threat to Food Security
119 DARA (2010), Climate Vulnerability Monitor 2010: The State of the Climate Crisis; David Wheeler (2011), Quantifying Vulnerability to
Climate Change: Implications for Adaptation Assistance, Center for Global Development Working Paper 240
120 Maplecroft (2010), Climate Change Vulnerability Index 2010
121 UNEP (2010), AMCEN Gets New Tool for Communicating Climate Change and Promoting an Effective Response in Africa
122 WRI (2011), Summary of Developed Country Fast-Start Climate Finance Pledges
123 The Secretary-Generals High-Level Advisory Group on Climate Change Financing (2010), Final Report
124 Development Initiatives (2011), Monitoring Climate Financing Architecture
125 WEF (2011), Scaling Up Low-Carbon Infrastructure Investments in Developing Countries, The Critical Mass Initiative Working Report 2011
126 World Bank (2009), Making Development Climate Resilient: A World Bank Strategy for Sub-Saharan Africa
127 UNEP (2011), Green Economy Report
128 OECD (2011), Statextracts
129 OECD (2011), Statextracts
130 AEO (2010), African Economic Outlook 2010: Public Resource Mobilization and Aid
131 CGD (2010), Commitment to Development Index 2010
132 OECD DAC (2011), ODA Figures as Released on 6 April 2011
133 ONE (2011), ONE/DATA Report 2011 (based on the figures released by the OECD DAC on 6 April 2011)
134 OECD DAC (2011), Development Aid Reaches an Historic High in 2010, Press Release
135 OECD DAC (2011), ODA Figures as Released on 6 April 2011
136 OECD (2010), The OECD Fragmentation Index 2010
137 UN Office of the Special Advisor on Africa (2010), Africas Cooperation with New and Emerging Development Partners: Options
for Africas Development
138 World Bank (2011), Africas Future and the World Banks Support to It
139 EU (2010), EU Development Policy in Support of Inclusive Growth and Sustainable Development, Green Paper
140 Hudson Institute (2010), 2010 Index of Philanthropy and Remittances
141 UN Office of the Special Advisor on Africa (2010), External Debt in Africa, Policy Brief 3
142 IMF and IDA (2010), Heavily Indebted Poor Countries (HIPC) Initiative and Multilateral Debt Relief Initiative (MDRI) Status of
143 IMF and World Bank (2010), Preserving Debt Sustainability in Low-Income Countries in the Wake of the Global Crisis
144 OECD (2010), Indicators for Progress on the Implementation of the Paris Declaration on Aid Effectiveness
145 AfDB, AU and NEPAD (2010), Issue Paper on Ownership, Sustainability and Accountability for Results, 2nd Regional Meeting on Aid
Effectiveness, Tunis, 4-5 November 2010
146 Development Initiatives (2009), The Costs and Benefits of Aid Transparency
147 OECD (2011), The Role of the Private Sector in the Context of Aid Effectiveness: Consultative Findings Document Final Report
148 See, for example, IFC (2010), Inclusive Business 2010 Telling Our Story: Base of the Pyramid Investments; APP and Concern Universal
(2010), Doing Good Business in Africa: How Business Can Support Development; WBCSD (2010), Doing Business with the World: The New
Role of Corporate Leadership in Global Development; UN Global Compact et al (2010), Innovating for a Brighter Future: The Role of
Business in Achieving the MDGs
149 Business Action for Africa et al (2010), Accelerating Progress Towards the Millennium Development Goals Through Inclusive Business:
Delivering Results: Moving to Scale
150 Accenture Development Partnerships (2011), Cross-Sector Convergence: A New View of Global Development; see also Michael
Porter and Mark Kramer (2011), The Big Idea: Creating Shared Value, Harvard Business Review
151 World Bank Institute (2009), A Way to Effective Service Delivery in Fragile States: Public-Private Partnerships
152 See Allianz Group (2011), Learning to Insure the Poor: Micro-Insurance Report; Swiss Re (2011), Micro-Insurance: Risk Protection for
4 Billion People
153 See Mark Napier, ed. (2010), Real Money, New Frontiers: Case Studies of Financial Innovation in Africa
154 UN-HABITAT (2011), Infrastructure for Economic Development and Poverty Reduction in Africa
155 AICDS (2009), Africas Infrastructure: A Time for Transformation
156 WBCSD (2007), Investing in a Low-Carbon Future in the Developing World
157 WBCSD (2005), Business for Development: Business Solutions in Support of the Millennium Development Goals

The Africa Progress Panel would like to acknowledge the valuable contributions of Gill Bates (SIPRI), Christoph
Benn (The Global Fund to Fight AIDS, Tuberculosis and Malaria), Timothy Brewer (WaterAid), Audette Bruce
(UNDP), Daniel Coppard (Development Initiatives), Wouter Deelder (Dalberg), Dustin Dehez (Freie Universitt
Berlin), Shanta Devarajan (World Bank), Nicolas Douillet (UNDP), Hania Farhan (Mo Ibrahim Foundation), Ricardo
Fuentes (UNDP), Cosmas Gitta (UNDP), Richard Gowan (NYU Center on International Cooperation), Alan Hinman
(The Taskforce for Global Health), Aubrey Hruby (The Whitaker Group), Andreas Hbers (ONE), Michael Keating
(UN), Michel Lavollay (PublicPrivate Partnerships Europe), Franklyn Lisk (Warwick University), Carlos Lopes
(UNITAR), Aileen Marshall (World Bank), Jason McGeown (Maplecroft), Jonas Moberg (EITI), Benito Mller (Oxford
University), Kate Norgrove (WaterAid International), Warren Nyamugasira (African Monitor), Paatii Ofosu-Amaah
(AfDB), Patrick Osakwe (UNCTAD), Judith Randel (Development Initiatives), Alistair Rivers (Innovata LLC), Zahid
Torres-Rahman (Business Action for Africa), Elisabeth Sandor (OECD), Guido Schmidt-Traub (CDC Climat AM),
Lindiwe Sibanda (FANRPAN), Elisabeth Skns (SIPRI), Tesfai Tecle (AGRA), Filippo Veglio (World Business Council
for Sustainable Development), Alyson Warhurst (Maplecroft), and Sharon Wiharta (SIPRI).

The APP would also like to acknowledge the generous support from the United Kingdoms Department for
International Development, the French Government and the Bill & Melinda Gates Foundation.

Cover design, infograhics, overall design and layout: Violaine Beix, Thad Mermer, Carolina Rodriguez and
Blossom Communications. Copy-edited by Nina Behrman.

Printed by Imprimerie Lenzi, Geneva Switzerland.

The Africa Progress Panel promotes Africa's development by tracking progress,
drawing attention to opportunities and catalyzing action.


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Secretary-General of the United Nations and Development and founder of New Faces New
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Tony Blair Linah Kelebogile Mohohlo

Patron of the Africa Governance Initiative and Governor, Bank of Botswana
former Prime Minister of the United Kingdom of
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Former President of Nigeria
Michel Camdessus
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Monetary Fund Co-Chairman of the Board, Council on Foreign
Relations and former Secretary of the United
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the Extractive Industries Transparency Initiative Chief Executive Officer, Prudential Plc.

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