CHAPTER 5: Critical Factors for Success, Potential Risks, Threats and Mitigation Strategies
Chapter 5 identifies the critical factors for success, as well as the risks, threats and mitigation strategies for attaining the vision for 2063.
- Critical success factors identified include: mobilizing African resources to finance and accelerate its transformation and integration; putting in place transformational leadership at all levels and in all fields; ensuring capable developmental states with the appropriate institutions, policies, human resources, systems and processes; changing attitudes and mind-sets to strengthen Pan African values of self-reliance, solidarity, hard work and collective prosperity and building on African successes, experiences and best practices; taking charge of Africa’s narrative and brand, to ensure that it reflects continental realities, aspirations and priorities and Africa’s position in the world; integrating Agenda 2063 into all national and regional development plans; strengthening and transforming national, regional and continental institutions and the manner of doing business, so as to effectively lead and drive the agenda for transformation and integration; and learning from the diverse, unique and shared experiences of various countries and regions as a basis of forging an African approach to transformation.
- Risk factors identified include: conflict, instability and insecurity; social and economic inequalities; organized crime, drugs trade and illicit financial flows; poor management of diversities; religious extremism; failure to harness the demographic dividend; escalation of Africa’s disease burden; climate risks and natural disasters; and external
- Mitigation strategies include: drawing on the resilience found in African societies and communities; economic diversification, climate resilience and disaster preparedness and prevention; and the priority that Agenda 2063 accords to well-educated citizens underpinned by skills revolution, science, technology and
The Chapter also analyses mega and global trends likely to impact Africa’s growth and transformation such as: democratization, the rise and empowerment of the individual; climate change and the low carbon economy; natural resource depletion and demand shifts; demographics and urbanization; new technologies and innovation; changes in the global financial architecture; and global political and economic power shifts.
CHAPTER 6: “Making It Happen” – Implementation, Monitoring, Evaluation, Financing, Capacities for Implimentation and Communication
This chapter makes proposals on implementation; monitoring and evaluation; financing; partnerships; capacities for implementation; and communication and outreach:
- Implementation arrangements and M&E is based on the need for the identification of all key stakeholders in the results chain from continental, regional and national It also spells out the various roles and responsibilities in implementation and monitoring and evaluation. The First 10-Year Implementation Plan provides greater detail on these aspects.
- Financing and domestic resource mobilization and intermediation strategy: detailed strategies for the financing of Agenda 2063 are presented and related to the attaining of each of the seven aspirations of Agenda 2063. In contrast to mobilizing external resources (through FDI, aid, trade, and debt relief), domestic resource mobilization (DRM) offers the advantages of greater domestic policy ownership and greater coherence with domestic needs, and higher development impact. For these reasons, Agenda 2063 requires Member States to place greater emphasis on domestic resources in the financing of Agenda 2063. It is anticipated that DRM has the potential to contribute, up to 70per cent to 80per cent, of the financing needs of the Agenda
Agenda 2063 financing strategy is articulated around three dimensions: (i) domestic resource mobilization;
- intermediation of resource into investment and (ii) access to finance facilitation, including through project development fund, viability gap funding, capitalization fund, and bankability and investment- readiness support for projects, firms/SMEs, entrepreneurs and other
Agenda 2063 financing and DRM strategy involves different areas of policy and reform including: (a) public/fiscal revenue maximization; (b) enhanced savings mobilization; (c) curbing of illicit financial flows and fighting corruption; (d) regional bond market, regional stock exchange and African-owned private equity funds promotion; (e) Diaspora financial resources leveraging; (f) leveraging institutional financial resources of pension fund, sovereign wealth fund, insurance funds, governments’ foreign reserves and wealthy African citizen; and (g) promoting intra-African investment.
A number of intermediation instruments and intervention areas are proposed: policy, knowledge and capacity building (enabling environment front); fund mobilization and intermediation (supply-side front); and access to finance facilitation (demand-side front). A more detailed elaboration can be found in “Agenda 2063 Financing and Domestic Resource Mobilization Strategy”.
- Partnerships: the need to re-orient Africa’s partnerships in line with the continent’s ambitious agenda for economic, political, social transformation has been articulated based on the assessment of partnerships in
- Capacities for implementation: building upon the NEPAD Capacity Development Strategic Framework (CDSF), this section looks at capacity needs at individual, organizational levels, and those related to the policy and enabling environment in line with Africa’s transformation
- Communication and outreach: outlines the strategies and activities to galvanize and mobilize the continent’s population on a sustained basis to achieve Agenda
LIST OF ACRONYMS |
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3ADI |
Africa Agro-Industry and Agro-Business Initiative |
AIDA |
Accelerated Industrial Development for Africa |
AfDB |
African Development Bank |
ACCNNR |
African Convention on Conservation of Nature and Natural Resources |
ACGF |
Africa Credit Guarantee Fund |
ACHR |
African Charter on Human Rights |
AGI |
African Governance Initiative |
AIB |
African Investment Bank |
AIDF |
Africa Infrastructure Development Facility |
AIF |
African Investment Fund |
AIMS |
Africa’s Integrated Maritime Strategy |
AMU |
Arab Maghreb Union |
AMV |
Africa Mining Vision |
APCI |
Africa Productive Capacity Initiative |
APRM |
Africa Peer Review Mechanism |
APSA |
African Peace and Security Architecture |
AQIM |
AL Qaeda in the Islamic Maghreb |
ASACOF |
Africa-South America Cooperation Forum |
ASCI |
African Scientific and Innovation Council |
AU |
African Union |
AUC |
African Union Commission |
BDEAC |
Banque de Développement des Etats de l’Afrique Centrale |
BIAT |
Boosting Intra African Trade |
BRICS |
Brazil, Russia, India, China and South Africa |
CAADP |
Comprehensive African Agricultural Development Program |
CADF |
China-Africa Development Fund |
CAPST |
Consolidated Action Plan for Science and Technology |
CENSAD |
Community of Sahel Saharan States |
CFTA |
Continental Free Trade Area |
CDSF |
Capacity Development Strategic Framework (NEPAD) |
COMESA |
Common Market for Eastern and Southern Africa |
CoSSE |
Committee of SADC Stock Exchanges |
CSI |
Corporate Social Investment |
CSO |
Civil Society Organization |
CSR |
Corporate Social Responsibility |
DAC |
Development Assistance Committee (of the OECD) |
DFI |
Development finance institution |
DREA |
Department of Rural Economy and Agriculture |
DRM |
Domestic Resource Mobilization |
DRC |
Democratic Republic of Congo |
EAC |
East African Community |
EBID |
ECOWAS Bank for Investment and Development |
ECCAS |
Economic Community of Central African States |
ECOWAS |
Economic Community of West African States |
EIB: |
European Development Bank |
ERA |
Economic Report of Africa |
EU |
European Union |
FAO |
Food and Agriculture Organization |
FDI |
Foreign Direct Investment |
FfD: |
Financing for Development |
FOCAC |
Forum on China-Africa Cooperation |
GCC |
Gulf Cooperation Council |
GHA |
Greater Horn of Africa |
GDP |
Gross Domestic Product |
GNI |
Gross National Income |
GNP |
Gross National Product |
HDI: |
Human Development Index |
HIPC |
Highly Indebted Poor Country |
HLPASF |
High Level Panel on Alternative Sources of Funding |
HPS |
Health Plan and Strategy |
HSGOC |
NEPAD Heads of State and Government Orientation Committee |
IAIGC |
Inter Arab Investment Guarantee Corporation |
ICIEC |
Islamic Corporation for the Insurance of Investment and Export Credit |
ICT |
Information Communication Technology |
IFF |
Illicit Financial Flows |
IGAD |
Intergovernmental Authority on Development |
IPPF |
NEPAD Infrastructure Project Preparation Facility |
IPSAS |
International Public Sector Accounting Standards |
ITF |
Infrastructure Trust Fund |
ITN |
Insecticide Treated Nets |
IEA |
International Energy Agency |
IFC |
International Finance Corporation |
IGAD |
Intergovernmental Authority on Development |
IMF |
International Monetary Fund |
IPCC |
Intergovernmental Panel on Climate Change |
JAES |
Joint Africa-EU Strategy |
LAC |
Latin American Countries |
LPA |
Lagos Plan of Action |
LRA |
Lord’s Resistance Army |
M&E |
Monitoring and Evaluation |
MCC |
Millennium Challenge Corporation |
MDGs |
Millennium Development Goals |
MFI |
Microfinance Institution |
MIGA |
World Bank Multilateral Investment Guarantee Agency |
MIN |
Mexico, Indonesia, Nigeria, Turkey |
MIP |
Minimum Integration Program |
MN |
Multinational Corporation |
MoU |
Memorandum of Understanding |
MSME |
Micro, Small and Medium Enterprise |
NEPAD |
New Partnership for Africa’s Development |
NGOS |
Non-Governmental Organizations |
NPCA |
NEPAD Coordinating Agency |
OAU |
Organization of African Unity |
ODA |
Official Development Assistance |
OECD |
Organization for Economic Cooperation and Development |
PAF |
Pan African Fisheries Development |
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Project Development Fund |
PIDA |
Programme for Infrastructural Development in Africa |
PIPO |
Pan African Intellectual Property Organization |
PPP |
Public-Private Partnership |
PRC |
Permanent Representative Committee |
PSO |
Private Sector Organization |
PTA Bank |
Preferential Trade Area Bank |
RADS |
Resource-based African Development Strategy |
RECS |
Regional Economic Communities |
SACCO |
Savings and Credit Cooperative |
SACU |
Southern African Customs Union |
SADC |
Southern African Development Community |
SAP |
Structural Adjustment Program |
SMEs |
Small and Medium Scale Enterprises |
SPF |
Social Policy Framework |
SPS |
Sanitary and Phytosanitary System |
ST&I |
Science Technology and Innovation |
STAP |
Short Term Action Plan on Infrastructure |
STISA |
Science Technology and innovation Strategy for Africa |
TICAD |
Tokyo International Cooperation on Africa’s Development |
TVET |
Technical Vocational Education and Training |
UMA |
Union of Maghreb Arab |
UN |
United Nations |
UNCTAD |
United Nations Conference on Trade and Development |
UNDESA |
United Nations Department of Economic and Social Affairs |
UNCBD |
United Nations Convention on Biological Diversity |
UNCCD |
United Nations Convention on Combatting Desertification |
UNCED |
United Nations Conference on Environment and Development |
UNECA |
United Nations Economic Commission for Africa |
UNEP |
United Nations Environmental Program |
UNFCCC |
United Nations Framework Convention on Climate Change |
UNFPA |
United Nations Fund for Population Activities |
UNIDO |
United Nations Industrial Development Organization |
US |
United States |
USD |
United States Dollars |
VGF |
Viability Gap Funding |
WHO |
World Health Organization |
WB |
World Bank |
WBG |
World Bank Group |