African Development BankGreen & SocialBond

NewsletterIn this issue
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Covid-19 leaves deep wounds
2020 & 2021 key highlights
Covid-19 crisis response on the
African continent
Moving Africa to a more climateresilientfuture
Thegreen growth corridor thatwill transform the Sahel
Walkingthe talk on climatechangeand green growth
Aconversationwith Kevin Kariuki,
VicePresident for Power, Energy,
Climate and GreenGrowth
Empowering women to achieve
the SDGs
Greenand Social Bond programs,
leading SDGdelivery on thecontinent
TheBank’s green, social andCovid-19portfolios
RecentESGbondissuanceGreen, social and Covid-19bondallocation
Transformative green, social andCovid-19projects
Green bondimpact reporting
Social bondimpact reporting
Covid-19 bond impact reporting
Transparencyand development
results

Issue 07 • September 2021

Covid-19 leaves deep wounds
2020-2021 has been an extremely challenging period as the world has been battling
the Covid-19 pandemic. The alarming speed at which the virus spread caused mostAfrican countries to impose tight restrictions to contain the contamination and, as aresult, brought economies to a near-standstill.

While Africa has been spared the worst of the health consequences of Covid-19, thecontinent’s GDP contracted by 2.1%1 in 2020, its worst recession in half a century.
According to the African Development Bank, up to 30 million jobs could be lost,setting back progress towards the achievement of the Sustainable Development
Goals (SDGs) by years and driving up the number of people living in extreme poverty2
to 463 million. For 2021, an economic recovery for the continent is expected with a
GDP growth of 3.4%.
The negative impacts of the Covid-19 crisis have been intensified by climate change
effects. In the first quarter of 2021, ten African countries experienced flash flooding
and tropical cyclone Eloise hit Southern Africa causing death and damage in South
Africa, Mozambique and Zimbabwe.
The twin challenges of the Covid-19 pandemic and climate change have exacerbated
the fragility of the continent. Climate finance worldwide was significantly affected bya budget shift towards Covid-19 project prioritization in 2020. However, the Bank
appropriately scaled up its efforts to mobilize global resources to support climateresilient and low-carbon development in Africa while the continent continues tobuild back better and greener from the Covid-19 pandemic.
Moving forward, the Bank has committed to mobilize up to $25 billion for climate
finance between 2020 and 2025, of which 50% will be dedicated to adaptation; theAfrican Development Bank is the first Multilateral Development Bank (MDB) toachieve such parity. This will be supported through the Africa Adaptation Acceleration
Program (AAAP), launched this year to enhance and speed up adaptation actions
across the continent.

The Covid-19 pandemic
has changed everything
globally. It has thrown
Africa’s growth back. Now,
we must help Africa build
back boldly, but smartly,
paying greater attention toquality growth: especially inthe areas of health, climate
and the environment.
Dr. Akinwumi A. Adesina, President of theAfrican Development Bank Group1
2

Source: African Economic Outlook 2021
Defined as less than $1.9 a day

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Issue 07 • September 2021

2020 & 2021 key highlights
Combatting the pandemic

Accelerating climate adaptation

In March 2020, the African Development Bank raised USD 3
billion through a 3-year “Fight Covid-19” social bond to help
alleviate the impact of the pandemic on livelihoods and Africa’s
economies. It was the world’s largest social bond at the time ofissuance, AfDB’s first social bond in the USD market and its
largest benchmark to date. The Bank was awarded Bestissuer of Covid-19 bonds by Global Capital for this landmark
transaction. The bond is listed on the Luxembourg Stock
Exchange and the London Stock Exchange (LSE), marking theBank’s inaugural listing on the LSE. The bond was also
admitted on the Nasdaq Sustainable Bond Platform.

In January 2021, the Global Center on Adaptation (GCA) andthe AfDB launched GCA Africa, hosted by the AfDB. The
GCA will work closely with the Bank, through the Africa
Adaptation Acceleration Program (AAAP), to align initiatives
with global programs, coordinate projects, and deliveraccelerated action for communities across Africa. The
partners have pledged $25 billion to scale up and accelerate
climate change adaptation actions across Africa, of which the
Bank will provide $12.5 billion (see page 4 for further details).

The Bank’s Covid-19 response
Building resilience in Africa’s post Covid-19 recovery is at thecore of the Bank’s Covid-19 Rapid Response Facility,
launched in April 2020. The facility, which targets sovereignand non-sovereign operations, provides a flexible range of
support to assist African countries in fighting the pandemic.

Scaling-up renewable energy
In 2020, the International Renewable Energy Agency (IRENA)
and the AfDB agreed to jointly support investments in lowcarbon energy projects, a step towards the continent’s energy
transition. They will co-organize renewable energy investment
forums and collaborate on the Bank’s Africa Investment
Forum (AIF). The partnership will also focus on enhancing therole of renewable energy in African countries’ Nationally
Determined Contributions (NDCs) under the Paris Agreement.

Nordic investors support Africa
Following shortly after its landmark USD “Fight Covid-19” social
bond, the Bank issued a 2.5 billion Swedish krona (SEK) 3-year“Fight Covid-19” social bond which attracted interest from major
Nordic Environment, Social and Governance (ESG) investors.
The transaction marked AfDB’s first social bond in the Swedish
market and its largest SEK transaction to date. In 2021, theBank issued a dual tranche SEK 1 billion 5-year green bond andNorwegian kroner (NOK) 1 billion 5-year social bond; and a SEK
2 billion 5-year social bond.

Inaugural social Kangaroo
In June 2021, the Bank launched an inaugural AUD 600
million 5.5-year Kangaroo social bond, marking its return tothe primary market in AUD since 2018. This transaction was
the largest AUD trade ever issued in the primary market by
the Bank and saw 38% participation from investors with asocially responsible investment approach.

Name recognition in ESG markets
The Bank won the 2020 Environmental Finance award Social
Bond of the year - supranational, sub-sovereign and agency(SSA) category, for its successful NOK 1 billion 3-year social
bond issued in 2019, as part of a dual tranche transaction
with a SEK 2 billion 5-year green bond. This transaction was
the first green/social dual tranche in ESG markets, the firstsocial bond issued in the Norwegian market and AfDB’s
inaugural issuance in NOK.

A solutions bank for Africa
The African Development Bank was awarded The world’s best
multilateral financial institution in 2021 by Global Finance.
This is a worldwide recognition for the Bank’s groundbreaking
efforts as it transforms itself into a solutions bank for Africa.

Unlocking the Sahel’s solar potential
In December 2020, the Bank approved a technical assistanceproject under the Desert-to-Power (DtP) initiative, in the form of a
$5 million grant from the Sustainable Energy Fund for Africa(SEFA). In January 2021, the Noor Ouarzazate complex, theworld’s largest concentrated solar power plant (partially fundedby the Bank) extending over 3,000 hectares of desert in
Morocco, rolled out a second giant electricity-generation project,
this time in the Sahel. The DtP project, when complete, will turnthe Sahel into one of the largest solar-power-generating areas in
the world. The Bank won an award from Africa Solar Industry
Association (AFSIA) for increasing its solar energy footprint
across the continent.

AfDB pledges $6.5 billion for the Great Green Wall
In January 2021, multilateral development partners joined the
AfDB in pledging funding for the African-led Great Green Wallinitiative that aims to plant an 8,000 km long and 15 km widemosaic of trees, grasslands, vegetation and plants across the
Sahara and the Sahel. The objective of this initiative is torestore degraded land and help the region’s inhabitants
produce adequate food, create jobs, and promote peace inthe region (see page 5 for further details).

COP26 Roundtable on clean power transition
Under the theme “Achieving a rapid shift to green, affordable andresilient power systems”, the COP26 Roundtable was held inJanuary 2021. Reiterating that the Bank will no longer financecoal projects, the President Adesina emphasized the Bank’s
prioritization of renewables as the mainstay of its “Light up andPower Africa” strategic High 5 priority. The share of renewableenergy in the Bank’s power generation investments stood at
80%, as of December 2020.

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Issue 07 • September 2021

Covid-19 crisis response on the African continent
As the Covid-19 pandemic began to spread across Africa in early 2020, it became clear that it was set to cause significant economic
damage on the continent. It is estimated that less than 5% of global Covid-19 deaths occurred on African soil, but the pandemicrelated shocks continue to rattle the continent’s health, social and economic structures. The Bank’s efforts to mitigate those impacts
and help further establish African countries on the path to recovery and future resilience are unwavering.
In April 2020, the Bank took action decisively and swiftly by setting up the Covid-19 Rapid Response Facility (CRF) aimed atproviding a flexible range of support. The CRF has provided rapid, cost-effective, and targeted emergency budget support through afast-track approval process to give immediate relief to Regional Member Countries (RMCs) to address the Covid-19 crisis and mitigate
its social impact. These additional resources have been used for public health interventions and social protection programs while
simultaneously contributing to macroeconomic stability and resilience in the wake of the pandemic.

Crisis Response Budget Support (CRBS) operations

Enhancement of RMCs capacities to test
for and treat Covid-19 patients❙ More than 92,000 additional tests supported at given periods❙ Over 100,000 health care workers trained❙ 264 new Intensive Care Units available for Covid-19 patients

Mitigation of the impact of social distancing
and lockdown measures on the poorestand most vulnerable populations❙ Support provided to 17.4 million vulnerable households (for example
through water and electricity subsidies for several months)

Safeguarding Micro, Small & Medium
Enterprises (MSMEs) and the private sector,
and mitigating job losses❙ 240,000 Small & Medium Enterprises (SMEs) benefited from businesssupport schemes and policy measures such as tax deferral andreductions in public utility bills (energy and water supply)Fighting the Covid-19 pandemic
Despite unprecedented constraints associated with the new
operating environment imposed by the Covid-19 pandemic,
the Bank repurposed its 2020 lending program
andapproved 28 CRBS operations in 39 countries for an amountof $3.7 billion during a 7-month period from May to
December 2020.
In addition to CRBS operations, the Bank recognized thepotential for additional adverse effects in the agricultural
sector. In response, the Bank proactively designed a Feed
Africa Response to Covid-19, as part of the CRF, to address
the specific issues faced by the agricultural sector. The Bank
restructured 39 projects in 21 countries for a total amount of$367 million which is being applied to support Africancountries response programs to ensure food security andnutrition during the pandemic.
Simultaneously as the Bank was preparing to establish its
Covid-19 Rapid Response Facility, it worked quickly to issue
two groundbreaking bond transactions: a USD 3 billion 3-year
and a SEK 2.5 billion 3-year “Fight Covid-19” social bonds.
These Covid-19 bonds provided important proceeds to the
CRF and were also aligned with the overarching objective of
the Bank’s Ten-Year Strategy, which focuses on promoting
inclusive growth, across age, gender and geography.

“Our assistance to African countries is focused onproviding immediate support in response to the impact ofthe pandemic on lives, economies and livelihoods. At thesame time, the Bank is advocating for medium and longterm investments in human capital – ensuring citizens havethe skills and opportunities to contribute to resilience tofuture shocks.”
Dr. Beth Dunford, Vice President for Agriculture, Humanand Social Development

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Issue 07 • September 2021

Moving Africa to a more climate-resilient future
Climate change poses great challenges to Africa’s development, but it also presents a unique opportunity for green growth investmentson the continent. Even though many African countries are projected to suffer from the adverse effects of climate change, the continent
has significant potential to pursue a climate-resilient and low-carbon development pathway. Several African countries are alreadydemonstrating leadership in responding to climate change amidst challenges of limited capacity and technology and lack of finance.
The challenge is acute for a continent that produces less than 4% of greenhouse gas (GHG) emissions globally and yet receives only
3% of global climate finance, despite being the most vulnerable region. A combination of geographical and economic factors, alongwith its dependence on climate-sensitive sectors, including the agricultural sector, make the continent highly susceptible to climatechange and to date, seven out of the top ten most at-risk countries in the world are in Africa. This vulnerability compromises thecontinent’s development and threatens millions of Africans and their livelihoods.
After a challenging year in 2020, the African continent is on a mission to build back not just better, but greener. Addressing
climate change is an ambitious challenge that has recently been compounded by the impact of the Covid-19 crisis and requires
ever more urgency to accelerate action on ‘adaptation’ efforts. On the global stage, ‘adaptation’ and ‘resilience’ are yet to achieveparity compared to ‘mitigation’, which receives 93% of global climate finance3. To scale up innovative climate-change adaptation
across the continent, the African Development Bank and the Global Center for Adaptation (GCA) launched the Africa Adaptation
Acceleration Program (AAAP) in January 2021. The Bank and its partners have committed to mobilize $25 billion for adaptationin Africa by 2025, half of which will come from the Bank.
Adaptation benefits easily outweigh costs and without adaptation, climate damage will increase tremendously. The AAAP aims tosignificantly increase the momentum and impact of adaptation projects in Africa through innovation in the design of large-scale
proof of concept interventions, as shown in the graphic below. The interconnected initiatives under the AAAP will contribute toclosing Africa’s adaptation gap and support African countries on their sustainable development paths by accentuating climate
adaptation and resilience.
3 Climate Policy Initiative, Global Landscape of Climate Finance, 2019

Scaling-up investment for climate-resilient
urban and rural infrastructure in key
sectors (water, transport, energy, waste
management) for a circular economy

Africaninfrastructure
resilience accelerator

Climate smart
digital technologies
for agriculture
and food security

Harnessing digital technologies and data-driven
innovations to address inefficiencies in agriculturalvalue chains for 30 million farmers

Empowering youth Innovative financial
through jobs and initiatives for Africa
entrepreneurship

Providing 1 million youth with skills for climate
adaptation and supporting 10,000 youth-led
SMEsto create green jobs
Source: Africa Adaptation Acceleration Program (AAAP)

Helping close the adaptation finance gap,enhancing access to finance, and mobilizing
public and private sector investment

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Issue 07 • September 2021

The green growth corridor that will transform theSahel
Climate change has meant more extreme weather conditions, including higher temperatures and fluctuating rainfall resulting in more
frequent droughts in the Sahel, a region that is home to 250 million people living in eleven countries: Burkina Faso, Chad, Djibouti,
Eritrea, Ethiopia, Mali, Mauritania, Niger, Nigeria, Senegal, and Sudan.
Started in 2007, the Great Green Wall is Africa’s flagship initiative to combat climate change across the Sahara and the Sahel. The
8,000 km long and 15 km wide mosaic of trees, grasslands, vegetation, and plants from Senegal to Djibouti, will help boost foodsecurity, improve health, create millions of jobs and income opportunities for the communities, and provide the foundation for agreater likelihood of peace in the region, which is the guarantor of continued sustainable development.

A shield against climate change
2010-2020 progress

Expected development results by 2030
Niger
5 million hectares of land
restored, delivering an additional
500,000 tons of grain per year tofeed 2.5 million people

Senegal
12 million drought resistanttrees planted in less thanadecade❙Restore 100 million hectares of degraded land❙

Sequester 250 million tons of carbon❙

Create 10 million green jobs in rural areas

Burkina Faso
Ethiopia

3 million hectaresof land rehabilitatedNigeria
5 million hectares ofdegraded land restored

15 million hectaresof degraded land
restored

Source: UNCCD Great Green Wall

In January 2021, the Great Green Wall received $14 billion in additional funding pledged over the next ten years – $6.5 billion from theAfrican Development Bank, $5 billion from the World Bank and $2.5 billion from the French government – to advance the landmark
initiative. The Bank will extend resources through a range of mechanisms, partnerships, and operations, and draw on internal andexternal sources of funding, including the Sustainable Energy Fund for Africa (SEFA) and the Green Climate Fund (GCF), among others.
The Bank has made the Sahel region a top priority for investment and mobilizing new sources of financing to advance Africa’s climate
opportunities. Ongoing initiatives such as the Desert-to-Power, which aims to build the largest solar power zone in the world andprovide electricity to 250 million people, and the Technologies for African Agricultural Transformation (TAAT), which aims to raise
food output in Africa by 100 million tons and lift 40 million people out of poverty by 2025, will enhance and complement the Great
Green Wall, transforming the Sahel into a land of opportunities and inclusive green growth.

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Issue 07 • September 2021

Walking the talk on climate change and green growthLong before the Paris Agreement, the African Development Bank had set up a clear action path on climate change. The Bank
established its first Climate Change Action Plan (CCAP1) spanning the period 2011-2015. CCAP1 was built on the notion that
addressing climate change and advancing development on the continent could be done simultaneously.
The Bank’s Ten-Year Strategy for 2013-2022 focuses on two overarching objectives: support African countries’ transition to green
growth and promote inclusive growth. To accelerate the achievement of the strategy, the Bank decided to focus on five operational
priorities, known as the “High 5s”. The High 5s, if followed by all development partners, will help Africa achieve close to 90%of the SDGs4 and are intrinsically linked to the African Union’s Agenda 2063.
Light up andPower Africa

1 3 4 5 7 9 13

Feed Africa

1 2 5 13

Industrialize
Africa

1 3 5 7 8 9 12

The second phase of the Climate Change Action Plan (CCAP2) for the period
2016-2020 focused on scaling up climate finance and supporting African countries
with the implementation of their Nationally Determined Contributions (NDCs)5. Asof December 2020:

Integrate Africa Improve the Quality of Life for
the People of Africa

1 3 6 9 17

1 3 4 5 6 8 10 11

In 2020$2.1 billion = 34% of all AfDBof climate financeapprovals40%❙ 52 African countries out of 54 had ratified their NDCs
❙ 34% of Bank approvals were related to climate finance❙ Climate change was mainstreamed into 88% of Bank projects❙ Renewable energy represented 80% of the Bank’s power portfolio

of approvals
per year by 2021

The Bank intends to reach 40% of its approvals as climate finance by December
2021 and will continue to focus on developing energy access, renewable energy
and energy efficiency operations, climate-smart agriculture, water-use efficiency,
and the reduction of GHG emissions.
This year, the Bank will introduce a new Climate Change Policy, Strategy, and thethird Climate Change Action Plan (CCAP3) for the period 2021-2025 that will be
geared towards supporting African countries to implement their NDC
commitments under the Paris Agreement. Going forward, the Bank intends tocontinue to play a leading role in guiding progress on climate change on thecontinent. For 2020-2025, the Bank has committed to mobilize $25 billion ofclimate finance, of which 50% will be for climate adaptation (under theAAAP) and 50% for climate mitigation, to assist RMCs with the design andimplementation of climate-friendly investments, increasing its capacity toleverage additional financing from other development finance institutions and theprivate sector.

37%

63%

$0.8

$1.3

billionbillionMitigation

Adaptation

Financing climate-smart development: 2020 results

101 MW
Renewable energy
capacity created

1.6 millon tons $109 million
GHG emissions avoided

Mobilized from external
climate funds

The African Development
Bank set the bar in 2019 byallocating half of its climate
finance to adaptation. Somedonor countries followed that
lead: all must do so.
António Guterres, United Nations Secretary-General

4 United Nations Development Program -Strengthening Strategic Alignment for Africa’s Development: Lessons from the UN 2030 Agenda for Sustainable Development, the African
Union Agenda 2063 and the African Development Bank’s High 5s
5 NDCs are Nationally Determined Contributions - initiatives to be done nationally by each country to reduce GHG emissions and adapt to climate change.

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Issue 07 • September 2021

A conversation with Kevin Kariuki, Vice President
for Power, Energy, Climate and Green Growth
1. Could you tell us about the Power, Energy,
Climate and Green Growth Complex thatyou head?
The Power, Energy, Climate and Green Growth Complex isthe department with the mandate to oversee delivery on the
Bank’s High 5 priority “Light up and Power Africa” based on
the New Deal on Energy for Africa 2016–2025, whose
primary objective is to facilitate universal access to energy inAfrica. Energy sector activities include project origination andimplementation for sovereign operations (SO) and nonsovereign operations (NSOs), and associatedpolicydialogue; NSO debt portfolio management, resource
mobilization efforts, and implementation of key initiatives likethe Desert-to-Power (DtP) and the Bank’s contribution to the
Global Center on Adaptation (GCA). DtP aims to generate 10
GW of new solar PV capacity in the Sahel, creating theworld’s largest solar zone, and provide access to electricity
to 250 million people through grid and off-grid solutions.
Additionally, the department is responsible for leading theBank’s efforts towards inclusive, climate-resilient and lowcarbon development trajectories in Africa. The mainstreamingof climate change in operations and ensuring all Bank
investments are based on climate-informed designs, arecentral to these efforts.

2. What has been the impact of Covid-19 on the
Bank’s commitment towards climate change?
At the Bank, we are very much alive to the fact that the climate
emergency has not diminished in the face of the Covid-19
pandemic – 70% of the top ten most climate-vulnerable
countries in the world are in Africa. As such, the Bank’s very
ambitious climate change targets, including commitments
to climate-proofing 100% of its operations and allocating
40% of its annual approvals as climate finance, still holds. In
2020, the Bank achieved 88% and 34% with respect tothese targets respectively, despite repurposing in financing
due to Covid-19. We are optimistic that we will meet bothtargets in 2021.

3. Will Africa be able to promote growth, reducepoverty and tackle climate risk at the same time?
Yes, I firmly believe so, with the basis for my optimism being
as follows. Africa has currently the lowest energy usage
globally, but significant growth in demand (at least double by2040) is projected on account of rising incomes and rapid
urbanization. On the other hand, the continent has vast andunexploited clean energy sources, e.g. of 10 TW of solar
potential from the 325 days of sunshine annually, only 1% is
exploited while less than 10% of Africa’s hydro (350 GW) andgeothermal (15 GW) energy sources have been harnessed.
Therefore, Africa has a tremendous opportunity to reset its
energy transition to a predominantly cleaner and greener
pathway, thereby tackling climate risk simultaneously. Being a
key driver of inclusive growth, achieving universal energy
access based on predominantly renewable energy, willinvariably reduce poverty both in urban and rural areas.

4. How is the Bank tackling sustainability issues in
its project implementation process?
The Bank has considerable experience in applying ESG
safeguards in its project design and implementation process;having adopted ESG tools such as the Integrated
Safeguards System (ISS). The ISS provides stage gates toensure that only projects that meet the Bank’s ESG standards
are implemented, while also providing remedial and redress
mechanisms to address sustainability exit strategies wherethese may be lacking. For climate risk management, theGreen &Social Bond

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Issue 07 • September 2021

Bank has introduced tools, such as the Climate Safeguards
System to guide the design of Bank’s operations in a climateinformed and sustainable way. The Bank also applies a GHG
accounting and reporting tool6 to screen its operations forcontribution to GHG emission.

5. How would you describe the progress of thecontinent’s transition to green growth so far? Are weon track to deliver the Ten-Year Strategy objectives?
First, the Bank has increased its proportion of renewableenergy generation investments from 70% during 2011-2019,
which intensified to 80% between 2016-2019. This correlates
strongly with the 77% increase in Africa’s installed renewableenergy generation capacity between 2010 and 2019 – evidence
that the Bank is at the heart of the transition and establishingthat the continent’s transition to green growth is truly underway,
thereby decoupling economic growth from environmentalharm.
Away from the energy sector, I am also aware of programs suchas the Sahel and the Horn of Africa drought resilience andsustainable livelihood programs; the Technologies for Africa’s
Agricultural Transformation (TAAT) program, which aims toincrease food output by 100 million tons and lift 40 million
people out of poverty by 2025; the Affirmative Finance Action
for Women in Africa (AFAWA) financing facility for women agrientrepreneurs, which fosters inclusive growth and poverty
reduction. The foregoing, as well as my response to question 4,
confirm that the Bank is therefore on track to meeting its
development objectives under the Ten-Year Strategy.

6. Working towards green growth, there is stilla significant climate adaptation finance deficit
globally. What are the strategies envisaged by the
Bank to reduce this deficit on the continent?
Under the Paris Agreement, developed countries pledged tocontribute $100 billion per year by 2020 for mitigation andadaptation actions in developing countries. This commitment
has not been fulfilled, thereby constraining mitigation andadaptation efforts from the onset. Meanwhile, global
emissions already burden Africa with adaptation costs of $7
to 15 billion per year as of 2020, rising to $50 billion per year
under the most optimistic scenario of holding global warming
to below 2°C.
To reduce the deficit for adaptation finance in Africa, theAfrican Development Bank has therefore invested $6.5 billion
as adaptation finance since 2015. In addition, the Bank has
committed to a further $12.5 billion for adaptation that will bemobilized through the AAAP, being undertaken together with
Global Center for Adaptation. This $12.5 billion constitutes halfof the Bank’s overall pledge of $25 billion for climate financebetween 2020 and 2025.

7. With the Bank’s theme “to build back better andgreener”, what are the strategies in place to rebuild
post Covid-19?
As Africa’s premier development finance institution, the Bank
has a responsibility to spearhead the sustainable mitigation of
the socio-economic impacts of Covid-19 to RMCs and ensure
livelihood recovery. Accordingly, the Bank intends to leverage on
the following climate-related initiatives “to build back better andgreener”, post Covid-19 future:❙ The Africa Disaster Risks Financing (ADRiFi) Program tobuild capacity to enable early-warning systems, payment of
insurance premiums or sovereign insurance coverageagainst climate disasters, thereby fostering resilience andtimely response to climate shocks instead of post-disaster
relief measures.
❙ The Africa Financial Alliance on Climate Change (AFAC) tomobilize private capital flows towards continent-wide lowcarbon and climate resilient development.
❙ A Green Stimulus Program for Africa. Currently being
developed with the African Union and other partners, thisinitiative seeks to build a coordinated continental response
to Covid-19 for transformation and a more sustainable
development pathway for Africa, i.e. while helping Africa
build back better and greener.
❙ The Climate Change and Green Growth Strategic Framework:
the Bank is currently developing its new strategic framework
on climate change and green growth, which will take stockof the ten years experience in the implementation of climate
action of the preceding framework, but also include lessons
learnt on climate and the Covid-19 nexus, to support Africa’s
low-carbon and climate-resilient economic development for
the next decade.

8. During COP26, how will the AfDB play its role ofpresenting the continent’s case?
COP26 will be the most important COP since the adoption of
the Paris Climate Agreement in 2015 as it marks the 5-year
point when countries are expected to increase their climate
ambition through enhanced NDCs. At COP26, the Bank will
showcase its Africa-led flagship programs that help improve
Africa’s access to climate funds for enhanced climate action.
The Bank is also supporting the African climate negotiating
bodies to amplify Africa’s voice at COP26 under the Africancommon position on climate change. We will co-host an African
Pavilion together with African stakeholders led by the African
Union Commission and also hold joint strategic events with oursister MDBs, as we work together in our commitment towards
aligning our operations to the goals of the Paris Agreement.

6 The Bank uses an internal GHG accounting and reporting tool to assess projects’ GHG emission potential and recommend mitigation options. The excel-based tool allows the estimationof gross GHG emissions from the construction, operation and decommissioning of projects funded by the Bank.

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9Issue 07 • September 2021

Empowering women to achieve the SDGs
Women on the continent face multiple challenges to accessfinance, with an estimated $42 billion financing gap acrossbusiness value chains, including $16 billion in agriculture
alone. Empowering women to participate more fully in socioeconomic growth is essential to reducing vulnerability to
climate risks, combating poverty, and achieving the SDGs.
The African Development Bank has reiterated its commitment
to closing the gap with various initiatives.
With the Gender Marker System (GMS), an internal
screening tool to systematize the Bank’s approach to gendermainstreaming in its operational work, the proportion of Bank’s
sovereign operations categorized rose from 60% in 2019 to
98% in 2020. The GMS was introduced as a key performanceindicator in 2020 and is reflected in the Bank’s Result
Measurement Framework.

In 2020, all operations approved under the Covid-19 Rapid
Response Facility were categorized using the GMS, withinterventions such as the development of financial instruments
and innovative financing schemes to sustain women-owned
businesses; disease prevention information and supplies for
women caring for sick household members; and innovativetechnology-based solutions to ensure children’s continuationof education and reduce dropping out, ensure women’s accessto water and boost compliance with social distancing at watercollection points.
To accelerate the agenda of gender equality and women’s
empowerment across the continent, the Bank established theAffirmative Finance Action for Women in Africa (AFAWA),a flagship program that focuses on increasing access toinclusive finance. AFAWA’s objective is to bridge the financegap and unlock up to $5 billion in financing by 2026 to unleash
women’s entrepreneurial capacity and full potential.

Credit gap between women and men
in Africa

North Africa$13.8billionWest Africa

East Africa$11.3billion$7.5billion
CentralAfrica$4.7billion

Southern
Africa$4.1billion

The Bank Group Gender Strategy 2021–2025 focuses oninvesting in women to promote inclusive growth, accelerate
employability and job creation for women through skills
enhancement, and increase women’s access to social services
through infrastructure.

Bank’s financial instruments

AFAWAGuarantee for Growth

TheBank is mainstreaming AFAWAin all its
sovereignand non-sovereign operations.
Senior loans, lines of credit, trade finance,and equity funds are expected to unlock up to$2billion.

Aninnovative guarantee mechanismapprovedin 2020 to de-risk womenentrepreneurs andincentivize financial institutions to lend up to$2 billion to 18,000 women-ownedbusinesses,
in the first phase.

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Issue 07 • September 2021

Green and Social Bond programs, leading SDG
delivery on the continent
The Green and Social Bond programs of the Bank, established in 2013 and 2017 respectively, fall within the Bank’s Ten-Year
Strategy objectives of supporting African countries’ transition to green growth and promoting inclusive growth. These programs
address a great number of SDGs on the continent and support Africa’s drive towards sustainable development, especially within thecontext of climate change, which poses serious threats to the continent’s economic and social progress.
The Bank’s Green and Social Bond frameworks are aligned to the International Capital Market Association (ICMA)’s Green Bond
Principles (GBPs) and Social Bond Principles (SBPs). Within these frameworks, the proceeds of the Bank’s green and social bonds
are used to finance specific eligible green and social projects that have been carefully selected and evaluated by the Treasury
Department in collaboration with the operations teams and the Climate Change and Green Growth Department.
The Bank regularly engages with major actors in the sustainable bond market to ensure its Green and Social Bond programs meet
best market practices and respond to ESG investor needs. The Bank is a member of the GBP/SBP Executive Committee, taking
part in discussions related to processes that fundamentally shape the development of green and social bond markets.

Ten-Year Strategy

Green growth

Green Bond Framework

Climate change mitigation

Climate change adaptation

RENEWABLEENERGY• Solar, wind, hydro,geothermal

SUSTAINABLE WATER&WASTEWATERMANAGEMENT• Water use management• Water supply and access• Urban water drainage systems

ENERGYEFFICIENCY• Energy distribution systems• Vehicle energy efficiency
CLEANTRANSPORTATION• Low-carbon transport infrastructure
BIOSPHERE CONSERVATION• Forestry conservation

SUSTAINABLE WATER&WASTEWATER MANAGEMENT• Water & wastewater management• Agriculture

CLIMATE SMART AGRICULTURE
RESILIENT INFRASTRUCTURE

Inclusive growthSocial Bond Framework

Social outcomes

Target population

ENERGY, ICT, WATERSUPPLY&SANITATION• Access to basic infrastructure• Access to essential services• Living below the poverty line
• Excluded/marginalized• Vulnerable groups• Disabled• Migrants and/or displaced• Undereducated• Underserved• Unemployed

SOCIAL• Affordable housing• Healthcare• Last-mile electricity connectivity• Education & vocational training• Employment• Financial inclusion• Gender equality
AGRICULTURE&FOODSECURITY• Food security

Green &Social Bond

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11

Issue 07 • September 2021

The Bank’s green, social and Covid-19 portfolios$2.8 billion of climate finance committed through 33 eligible green projects7 in 14 countries

Green portfolio (as of 31 December 2020)

Southern Africa

West Africa
12%

9%

82%

Forestry Conservation

mitigation
36%

Energy Efficiency

18%

43%

adaptation
East Africa

1%
13%
Sustainable Water
and Wastewater
Management

North Africa

Renewable Energy

39%

23%

24%
Clean Transportation

Selection of green projects recently approved

Shapoorji Pallonji Solar
Photovoltaic

Egypt

Mitigation

Renewable Energy

The project entails the design, construction and operation of a50 MWsolar photovoltaic
plant to beimplemented under the Egyptian Solar Photovoltaic Feed-in Tariff Program
Round 2, aninitiative where the Government of Egypt seeks to implement 2,300 MWof solar photovoltaic projects. This program will increase Egypt’s power generation
capacity, diversify the energy mix, enable fuel savings and reduce carbon emissions.

Dakar-Diamniadio-AIBD Regional
Express Train Project - Phase I

SenegalMitigation

Clean
Transportat
ion

The project entails the construction of a 57 km train project from Dakar to Blaise
Diagne International Airport, with acapacity of 113,000 passengers per day. This will
improve the quality of life for Dakar citizens through reduced travel time while also
providing sustainable transport that will contribute to the reduction of GHGemissions.

Thwake Multi-Purpose Water
Development Program (Phase I) Additional Financing

Kenya

Adaptation

Sustainable Water
and Wastewater
Management

The project includes amulti-purpose damthat will help address flood control and droughtmanagement, while also increasing water storage to meet the needs of 1.3 milion
people, irrigating 40,000 hectares of land and generating 20 MWof hydropower.

Mekele-Dallol and Semera-Afdera
Power Supply for Industrial
Development and Access Scale-up
Project

Ethiopia

Mitigation

EnergyEfficiency

The project involves the construction of two 230 kVtransmission lines and two
substations to transport electricity generated by hydropower plants to remote areas.
At completion, 36 rural towns will have access to an affordable and sustainable
modern grid-based electricity supply.

Form Ghana Reforestation Project

Ghana

Adaptation

Forestry
Conservation

The project aims to restore degraded forest reserves by establishing 11,700 hectaresof sustainable commercialforest plantation composed of local tree species and teak.

7 The eligibility criteria for green projects is linked to the Bank’s climate finance tracking methodology.

Green &Social Bond

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12

Issue 07 • September 2021

$7.9 billion of social development committed through 72 eligible social projects in 23 countries

Social portfolio (as of 31 December 2020)
Central Africa

West Africa

Information andCommunication Technology

15%

9%

Southern Africa

East Africa
30%

22%

Social8

13% 4%
24%

North Africa

30%

23%

Water Supply
and Sanitation

Agriculture and Food
Security

30%

EnergySelection of social projects recently approved

8

Manzini Region Water Supply
and Sanitation project

Eswatini

Water Supply
and Sanitation

The objective of the project is to meet the potable water requirements of the Manzini regionand surrounding areas and reduce the risk of environmental pollution of the groundwater
through appropriate sanitation services.

Energy Sector Efficiency andExpansion Program - Phase I

AngolaEnergyThe project aims to strengthen Angola’s power transmission and distribution system throughan electricity network expansion while also enhancing revenue generation. Improved accessto electricity will revitalize industries, spur economic development, andfacilitate job creation.

Project to Develop and Promote
Agricultural Subsectors in
Zaghouan Governorate

Tunisia

Agriculture and Food
Security

The project seeks to promote agricultural subsectors whose development requires
significant public and private investments to enhance production and productivity, increase
opportunities in terms of product development (processing, packaging, certification, etc.)
and reduce unemployment, poverty, andinequalities.

Technical and Technological
Skill-Building Support Project

Tunisia

SocialThe purpose of the project is to improve the employability of new technical, technology andscience graduates, thereby training askilled workforce that satisfies private sector needs
and the country’s ambition to climb up international value chains.

Rwanda Innovation Fund

RwandaInformation andCommunication
Technology

The project aims to address the financing gap faced by tech-enabled companies in Rwanda
and EastAfrica, by establishing affordable funding mechanisms for growth companies,
equity financing for tech-enabled SMEsand training for tech entrepreneurs. The fund is
expected to support 150 companies and invest in 20 early growth stage opportunities.

Social sector projects are defined as projects in the health, education, and vocational training sectors.

Green &Social Bond

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Issue 07 • September 2021

Covid-19 portfolio (as of 31 December 2020)
The proceeds of the Bank’s “Fight Covid-19” social bonds issued in 2020 were used to finance in part a portfolio of 12 projects
approved by the African Development Bank9 under the Covid-19 Rapid Response Facility (CRF). These projects were fully disbursed
in 2020 for a total amount of $2.1 billion. Additional post Covid-19 recovery projects, not specifically allocated under the facility, may
be included in this portfolio.

$2.1 billion committed in 2020 through 12 Covid-19 related projects

Project

Country

Currency

Total cost of
the project(in million)

AfDB shareof financing(in million)

Covid-19 Crisis Response Support Program

CaboVerde

EUR

107

30

Covid-19 Crisis Response Budget Support Program

Cameroon

EUR

449

88

Covid-19 Response Support Program

Coted'Ivoire

EUR

75

75

Budget Support Program in Response to the Covid-19

Gabon

EUR

499

101

Covid-19 Emergency Response Support Program

Kenya

EUR

1,470

188

Covid-19 Crisis Response Budget Support

Mauritius

EUR

1,340

188

Covid-19 Response Support Program

Morocco

EUR

264

264

Covid-19 Crisis Response Budget Support Program

Nigeria

USD

5,188

289

Emergency Covid-19 Response Support Program

Senegal

EUR

88

88

Covid-19 Crisis Response Budget Support Program

Seychelles

USD

71

10

Covid-19 Response Support Program

South Africa

ZAR

5,490

5,008

Support Program for Covid-19 Response Through Social Inclusion and Employment

Tunisia

EUR

180

180

9 This list of projects only includes the Covid-19 related projects that were approved by the African Development Bank window in 2020, more projects were approved under the African
Development Fund window, but these were not financed by the Bank’s Covid-19 bond issuances, therefore were not included in this portfolio.

Green &Social Bond

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14

Issue 07 • September 2021

Recent ESG bond issuance
The Bank is increasingly attracting many high-quality ESG investors in its green and social bond transactions. With the commitment
to issue at least one green bond and one social bond per year, market conditions permitting, the Bank’s activities in sustainable bondmarkets have offered valuable investor diversification. The recent launch of some pioneering ESG transactions highlights the Bank’s
dedication to this market.

First Covid-19 bonds issued in Africa

2020
USD 3 billion
3-year “Fight
Covid-19”
Social Bond
due April 2023

2020
USD
100 million
3-year “Fight
Covid-19”
Social Bond

2020
SEK
2.5 billion
3-year “Fight
Covid-19”
Social Bond

due April 2023
Tap

due April 2023

Largest social bond everat time of issuance

Inauguralsocial bondin Swedish
marketGreen and social bond issuance

2021
SEK
1 billion
5-yearGreen Bond

2021
NOK
1 billion
5-yearSocial Bond

due April
2026

due April
2026

Dual tranche SEK green
bond and NOK social bond

2021
AUD
600 million
5.5-yearSocialKangaroodue
December
2026

2021
SEK
2 billion
5-yearSocial Bond
due
September
2026

First AfDB
social bondin Kangaroo
format2021 highlight – Growing appetite in the Kangaroo market
for ESG issuance
In June 2021, the African Development Bank launched a AUD 600 million 5.5-year Kangaroo social bond due December 2026,
marking its return to the Australian dollar bond market after its last foray in early 2018. The transaction is the largest Kangaroo
issued by the AfDB in the AUD market and has provided an opportunity to reward loyal investors and enfranchise new ones witha rare social bond outing.
The compelling social aspect of the transaction induced strong demand from local and regional investors. More than 30 investors
participated in the deal, with total bids of more than AUD 775 million. A strong cohort of Australian investors were in the books,
representing 41% of the demand, the highest domestic participation ever for an AfDB AUD trade, while 38% of participation camefrom investors with strong ESG considerations.
To date, the African Development Bank has three ESG bonds outstanding on the Kangaroo market: a Social Kangaroo due
December 2026, an “Industrialize Africa” theme Kangaroo due September 2027 and a Green Kangaroo due December 2031.
The Covid-19 pandemic had led to a rise in global issuances of social bonds. “Following on from the ground-breaking USD
3.1 billion 3-year “Fight Covid-19” social bond we issued in 2020, we are glad to see that public domestic markets, like the
Kangaroo bond market, are now seeing similar development in terms of interest from dedicated ESG investors, which provided
additional momentum enabling us to print the largest trade we have ever done in AUD.” Hassatou N’sele, Treasurer of theAfrican Development Bank Group
The Bank intends to issue more social bonds in Australian dollars in future. “There is a virtuous circle here. The transaction has
reaffirmed and increased our investor base in Australia and offshore, while giving access to scarce ESG investments. Hopefully
others can follow, and we have the opportunity to return.” Keith Werner, African Development Bank, Manager of the CapitalMarkets DivisionGreen &Social Bond

Newsletter

15

Issue 07 • September 2021

2020 highlight – USD “Fight Covid-19” social bond transaction
In March 2020, the African Development Bank raised USD 3 billion through a 3-year “Fight Covid-19” social bond to help alleviate
the impact of the pandemic on livelihoods and Africa’s economies. Issued at a spread of Midswaps+35bps, equivalent to a spreadof CT3+47.95bps, the bond pays a coupon of 0.75%. The transaction was significantly oversubscribed, with USD 4.6 billion oforders in the book, and 96 investors participating (of which 20 investors were new to the AfDB).
We saw strong participation from ESG investors:

The “Fight Covid-19” social bond was the world’s largest social bond at the time of issuance, AfDB’s first social bond in the US
market and its largest benchmark transaction to date. The bond is listed on the Luxembourg Stock Exchange and on the
London Stock Exchange, marking the Bank’s inaugural listing on the LSE. The bond was also admitted on the Nasdaq
Sustainable Bond Platform. The AfDB won the award for “Best issuer of Covid-19 Bonds” in 2020 by Global Capital for its
landmark “Fight Covid-19” social bond.

“Best issuer of
Covid-19 Bonds”

Inaugural listingon London Stock
Exchange

Admission on Nasdaq
Sustainable Bond platform“Copyright, Nasdaq 2021”

The “Fight Covid-19” social bond is part of our response to help African communities in their efforts to overcome the multiple
challenges caused by the Covid-19 outbreak. The proceeds of the bond will be allocated in line with the Bank’s Social Bond
program, to provide support and financing to countries and businesses fighting against the negative impact of Covid-19 at thisunprecedented time. More specifically, the bond proceeds will be used to partially finance projects approved under the Bank’s
Covid-19 Rapid Response Facility (CRF) approved in April 202010. The programs, projects and facilities financed through the“Fight Covid-19” social bond have strong social development outcomes and affect positively the livelihoods of African people.
The aim of the funding is to boost access to essential healthcare services, strengthen health systems, and mitigate the impact
of social distancing and lockdowns on the most vulnerable. We also target SMEs to prevent job losses and support the people
affected by this health and economic crisis.

10 The CRF ended in December 2020 and additional post Covid-19 recovery projects, not specifically allocated under the facility, may be included in this portfolio.

Green &Social Bond

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Issue 07 • September 2021

Green bond allocation
Since the establishment of its Green Bond framework in 2013, the Bank has raised approximately $2.7 billion through 10 green bondtransactions denominated in USD, SEK, and AUD.

Green bond allocation for outstanding issuance as of 30 September 2021

5 outstanding
green bonds fully
allocated to green
projects

USD
500 million
Green Bond
due December
2021

100%

SEK
1.25 billion
Green Bond
due June 2022

100%

SEK
2 billion
Green Bond
due April 2024

SEK
1 billion
Green Bond

AUD
115 million
Green Bond

due April 2026

due December
2031

100%

100%

100%

Proceeds from AfDB green bonds are used to finance eligible projects that have significant environmental benefits and that can bequalified in full as either promoting low-carbon (mitigation projects leading to significant GHG emission reduction) or climate resilient
development (adaptation projects reducing vulnerability of human or natural systems to climate change by maintaining or increasing
adaptive capacity and resilience).

Social and Covid-19 bond allocation
Since the establishment of its Social Bond framework in 2017, the Bank has raised approximately $6.5 billion through 8 social bondtransactions denominated in EUR, NOK, USD, SEK, and AUD.

Social bond allocation for outstanding issuance as of 30 September 202111

NOK
1 billion
SocialBond

EUR
500 million
SocialBond

NOK
1 billion
SocialBond

AUD
600 million
SocialBond

due April 2022

due
November2024

due April 2026

due December
2026

100%

100%

100%

100%

6 outstanding social bonds

EUR
1.25 billion
SocialBond

SEK
2 billion
SocialBond

due May 2028

due
September
2026

93%

0%*

USD
3.1 billion
Covid-19
Bond

SEK
2.5 billion
Covid-19
Bond

due April 2023

due April 2023

51%

100%

2 outstanding Covid-19 bonds

Proceeds from AfDB social bonds are used to finance eligible projects that have significant social impacts and outcomes and that leadto poverty reduction and inclusive growth. Some of these outcomes are observable in improved access to affordable basic infrastructure(electricity, water and sanitation, transportation), access to essential services (healthcare, education and vocational training), access tofinancial services, affordable housing, job creation, food security, and socio-economic advancement and empowerment.

11 The proceeds of the USD “Fight Covid-19” social bond have not been fully allocated to Covid-19 related projects, as the USD proceeds are yet to be swapped to EUR to coverproject disbursements.
* Issued on 10 September 2021

Green &Social Bond

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Issue 07 • September 2021

Transformative green, social and Covid-19 projects
Green Zones Development Support Project - Phase 2
Promoting forest conservation for climate change
resilience

KENYA

The project will focus on increasing the national forest cover andhousehold incomes through rehabilitation of degraded forests,
sustainable development of forest infrastructure, promotion ofbamboo for conservation and commercialization, and enhanced
community livelihoods in the different counties.
The project will be implemented in 15 counties, which cover 4 forest
conservancies established under the Forest Act. These counties wereselected based on the level of forest degradation, social, economicand environmental vulnerability. In some rural areas, the forest
contributes to 75% of the income of forest-adjacent households. The
low forest cover in the country (estimated at 7.4% in 2017) has been
linked to inadequate water supplies and adverse climatic changes
that have negatively impacted agricultural production.
Sector: Forestry Conservation

In terms of community livelihood support, the project is supporting
harvesting of timber and bamboo, and development of horticulture
and cereal value chains for improved household incomes and foodsecurity. It will support the use of efficient production, processing andutilization of technologies, development of marketing infrastructure
and capacity enhancement. In addition, community groups involvedin forest conservation are supported with various other incomegenerating activities. A key intervention is the introduction of energyefficient technologies as well as alternative energy sources in ourquest to reverse the over-reliance on wood fuel for cooking, which iscurrently used by 80% of the rural population.

Year of approval: 2018

The expected project impacts include enhancement of environmental
benefits, including increased carbon dioxide sequestration andincreased water recharge capacity of the targeted forested
ecosystems. The project will reduce poverty levels through livelihood
improvement. Ultimately, it is expected that the project will contributeto making the country more resilient to climate change.

EXPECTED DEVELOPMENT RESULTS

Sources of funding:€5M• 501,249 beneficiaries€39M• $550 increase in average annual household income• 788,000 ton increase in production and marketing of
selected crop value chains (potatoes, maize, beans
and fruits)

Total cost

€44 million■ AfDB■ Others• 305 million MtCO 2 increase in carbon sequestration• 327,000 hectares increase in forest coverGreen &Social Bond

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Issue 07 • September 2021

Water Valorization for Value Chains Development Project
Achieving sustainable economic growth through water
management

SENEGAL

The objective of the project is to enhance rural agricultural production,
employment, and income through the sustainable mobilization of both
surface and groundwater.
The project area, where poverty rates generally exceed 60%, ischaracterised by a small surface of irrigated land, a continuous
decline in soil fertility due to salinization, acidification and drought, andlimited access to production, processing, and rural entrepreneurshipinfrastructure, particularly for women and youths. These difficulties
are currently a major obstacle to enhancing agriculture, improving thecompetitiveness of the sector, and raising people’s living standards.

Sector: Water and wastewater management
Year of approval: 2019

Through the valorization of water, the project will contribute to thedevelopment of climate-smart agriculture and promote value chains inpromising sectors like rice and market gardening. It will also help withirrigation, reduce production costs with the use of new technologies,
build capacity, create rural entrepreneurship opportunities for the
youth and protect the environment.

The expected project outcomes include the mitigation of climate risks
through water management and the restoration of degraded lands,
the increase of agricultural, arboricultural, pastoral and aquaculture
production and income, the improvement of access to production
areas, the improvement of storage, conservation and processing
infrastructure, and promotion of employment and entrepreneurshipfor youth and women.
Finally, it will contribute to improved water management, resulting
from the construction of irrigation and salinization control works, andcontribute to people’s resilience to the adverse effects of climatechange, marked by irregular rains, climate variability, uncontrolled
rainfall start-up periods and global warming.

EXPECTED DEVELOPMENT RESULTS• 300,000 beneficiaries

Sources of funding:€61M• 12,730 hectares of land irrigated and developed for
agriculture• 3,800 hectares of land rehabilitated or protected€61M

Total cost

€122million■ AfDB■ Others• 100 km of roads built or rehabilitated• $1,800 increase in income per beneficiary from agricultural
production• 5,000 youth SMEs promoted or created• 16,000 producers will be supported• 28,000 jobs created• 200 technical officers trainedGreen &Social Bond

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Issue 07 • September 2021

Support Project for the Development of Value Chains in the
Fisheries and Aquaculture Sector
Improving fisheries, aquaculture, and drinking watersupply infrastructures to enhance food security andliving conditions

EQUATORIAL GUINEAThe objective of the project is to enhance fish production through thesustainable development of aquaculture, artisanal fishing, andindustrial fishing, and strengthen drinking water and sanitation
infrastructure.
Equatorial Guinea’s economy is marked by massive food imports for
consumption by the population with over $20 million in frozen fish
imports in 2017 alone. Despite significant fishing potential estimatedat around 74,000 tons of fish and 600 tons of crustaceans, current
domestic production is inadequate and represents only 0.7% of its
full potential.
The implementation of this project will improve fish supplies to thedomestic market, reduce food imports, increase exports to countriesof the sub-region, increase fishermen’s income and improve youth
employment, as well as access to drinking water and sanitation,
through the provision of 50 boreholes and 150 latrines in 34 villages
in the project area.

Sector: Agriculture
Year of approval: 2019

Through the development of value chains for artisanal and industrial
fishing, as well as production areas for aquaculture, the project will
also contribute to improved food security and living conditions fortarget populations.
Moreover, improved fishing management will contribute to a moresustainable management of fisheries resources and river-sea
ecosystems in the country and the sub-region, which are undergoing
various forms of degradation.

EXPECTED DEVELOPMENT RESULTS
Sources of funding:• 739,000 beneficiaries• 19,126 tons increase in annual fish production• $11 million reduction in fishery product imports$14M

Total cost

■ Others$70 million■ AfDB• 2,125 households provided with drinking water supply• 6% decrease in chronic malnutrition rate
$56M

• 500 new MSMEs supported• 15,000 jobs created - 70% for women and youth• 1,620 people trainedGreen &Social Bond

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Issue 07 • September 2021

Government Social Program Support Project
Facilitating access to basic social services forvulnerable households

COTE D’IVOIRE

The main objective of this project is to support the Government of
Cote d’Ivoire in its efforts to achieve the results/impacts from
implementing the Government Social Program adopted in 2018.
Under the Program, the Government aims to improve livelihoods byfacilitating access to basic social services and reducing household
expenses.
The project will accelerate the socio-economic reforms by providing
rural communities with better access to basic services, especiallyhealthcare, drinking water and social services. It will also help improve
the living conditions of rural dwellers and the youth by supporting
agricultural production and processing, and facilitating the youth’s
access to the labor market.
The main expected outputs involve the maintenance and rehabilitationof rural tracks and hydraulic works, the rehabilitation of health facilities
and social centers, the improvement in water supply in villages, theincrease in food security through the distribution of production kits tomarket gardening and cassava producers, the sponsoring of preemployment internships for young people and the financing oftransformative SMEs.

Sector: Social
Year of approval: 2019EXPECTED DEVELOPMENT RESULTS• 3.5 million beneficiaries• 282,300 ton increase in annual production benefitting
20,000 farmers• 7,874 market gardening and cassava production kits
distributed

Sources of funding:• 4,026 rural tracks rehabilitated, improving access to
200 villages$29M• 23% increase in access to drinkable water

Total cost

■ Others$141 million■ AfDB$112M• 17% increase in health services utilization• 1,360 transformative SMEs financed• 26,100 jobs created• 20,000 interns withimproved employability• 8,820 people trainedGreen &Social Bond

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Issue 07 • September 2021

Covid-19 Crisis Response Support Program
Implementing protection measures for the poorest
families, the informal sector and MSMEs

CABO VERDEThe objective of the program is to support the authorities’ Covid-19
response strategy in mitigating the social impact of the crisis andmaintaining macroeconomic stability. This project seeks to improvehealth and social responses to ease the impact on the most vulnerable
and address macro-fiscal imbalances while mitigating the effects ofthe crisis on the private sector.
Cabo Verde’s strong economic performance in recent years has
been brought to a sudden stop by the Covid-19 pandemic. Stringent
contingency measures and disruptions in supply chains caused theeconomy to shrink by 8.9% in 2020. The country’s dependence on
the blue economy, including fisheries and tourism (which accounts for
20% of GDP) makes it particularly vulnerable to external shocks andexacerbates the impact of the pandemic.
Sector: Covid-19

Despite Cabo Verde’s poverty reduction achievements in recent
years, more than a third of the population remains poor and an evenhigher proportion are likely to be vulnerable in the face of the Covid19 crisis. Covered households are entitled to healthcare andunemployment insurance, providing protection against the effects ofthe pandemic. However, a large portion of the population remain
uncovered, particularly in rural areas and in the informal economy. In
this context, responding exclusively through existing programs risks
not reaching some of the most vulnerable and leaving many without
adequate support to weather the crisis.

Year of approval: 2020

While the country’s health indicators are among the best in West
Africa, risks remain and the country’s health system has significant
room for improvement, especially in the context of a global pandemic.

EXPECTED OUTCOMES
Sources of funding:• 5.7% increase in Global Health Security Index Score• 95 new ventilators provided in isolation rooms• Development of a Covid-19 information management
website

€30M

€77M

Total cost

■ AfDB€107 million■ Others• 3,000 additional vulnerable households to benefit from thesocial inclusion income and food assistance scheme• 30,000 informal and self-employed workers to benefit fromthe Solidarity Income• 13,224 furloughed workers to benefit from income recovery
scheme• $10.5 million in credit lines provided to affected firms• Affected MSMEs to benefit from deferral of corporate tax,
VAT, and payroll tax payments

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Issue 07 • September 2021

Support Program for Covid-19 Response through Social Inclusion
and Employment
Achieving resilient and inclusive growth bysafeguarding employment

TUNISIAThe program’s objectives are to build resilience of the health andsocial protection system, including preservation of employment
opportunities and businesses in urban and rural areas, while
speeding up the economic recovery. The program boosted early
Covid-19 testing using rapid tests countrywide, provided periodic
monetary assistance, and expanded social insurance to the mostvulnerable. Through health and social assistance measures, theprogram supported national institutions in successfully responding to
Covid-19, the poor and low-income categories affected by the crisis,
enterprises and workers who lost their jobs and income because of
the economic crisis, as well as people with small pensions.
The Tunisian Government’s decision to confine the population toslow the spread of Covid-19 has had a great impact on economic
activities and social life. The recession in the country caused an 8.8%
decline in GDP in 2020, leading to nearly 28% in job losses. A recent
survey confirmed that 67% of businesses face financial difficulties,
80% experienced supply chain disruptions, and 44% recorded export
order cancellations.

Sector: Covid-19
Year of approval: 2020

During the crisis, the Bank provided Tunisia with EUR 180 million to
help mitigate the impacts of Covid-19 through job protection andsocial inclusion of vulnerable groups, the youth, and the poor in the
short term, and by stimulating an economic recovery in the medium
term. The program provided the resources needed to mitigate thehealth, economic and financial shocks of the pandemic, andcontributed to economic recovery through a series of counter-cyclicalmeasures aimed at strengthening business resilience, protecting theprivate sector, safeguarding jobs, and ensuring economic growththrough improved employment conditions.

EXPECTED OUTCOMES

Sources of funding:• 450,000 rapid tests procured

Total cost€180 million■ AfDB• 2 million beneficiaries of monthly money allowance of TND
200 (623,000 low-income families, 10,000 workers wholost their jobs, and 140,000 retirees)• 60,000 food packages distributed• 600,000 jobs saved• 250,400 businesses protected from bankruptcy

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Issue 07 • September 2021

Green bond impact reporting
Impact reporting from projects funded by the green bond portfolio as of 31 December 202012

43 MtCO2e
GHG emissions
reduced or avoided
annually

462 MW
Renewable energy
capacity constructedor rehabilitated

1,394,682 MWh
Energy produced
annually

795,182 MWh
Energy savings
annually

515 million m 3
Water saved/treated

106 million m3
Water savings annually

90 million m3
Wastewater treated,reused, or avoided
annually

70,621 hectares
Irrigated land

46,662 hectares
Degraded forest
rehabilitated

12,972
Trees planted

11.5 million
Beneficiaries*

2.6 million
Jobs created

NB: The impact reporting is based on ex-ante estimates at the time of project appraisal, therefore there is no guarantee that theseresults will ultimately materialize. The impact reporting doesn’t provide actual results achieved in a specific year or reporting period.
Full impact reporting for each project is available upon request.

12 This impact reporting is computed proportionately to AfDB’s share of financing in the eligible green projects.
* Based on the UN Statistics Division and the AfDB Statistics Department, the average African household size was 4.69 in 2019.

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Issue 07 • September 2021

Social bond impact reporting
Impact reporting from projects funded by the social bond portfolio as of 31 December 202013

69.1 million
Beneficiaries*

9%
Decrease in poverty

578,100
Jobs created

5% Decrease in
unemployment rate

290,100
People trained

3.7 million
People with better
access to water andsanitation

18% Increase inaccess to water supply

25% Increase inaccess to sanitation
services

17% Decreasein waterborne diseases

16/1,000
Decrease in infantmortality rate

17/1,000
Decrease in maternalmortality rate

32,600 hectares
Arable land irrigated ordeveloped for farming

2.1 million tons
Increase in annual crop
production$3.2 billion
Increase in agricultural
and/or commodity
exports

1.1 million People
with better accessto electricity

7%
Increase in access toelectricity

26,300 MSMEs
supported with accessto financing$1,400 Increase inannual income perbeneficiary**

6.1%
Increase in foodsecurity

16% Increase ininternet service
penetration

NB: The impact reporting is based on ex-ante estimates at the time of project appraisal, therefore there is no guarantee that theseresults will ultimately materialize. The impact reporting doesn’t provide actual results achieved in a specific year or reporting period.
Full impact reporting for each project is available upon request.
13 This impact reporting is computed proportionately to AfDB’s share of financing in the eligible social projects.
* Based on the UN Statistics Division and the AfDB Statistics Department, the average African household size was 4.69 in 2019.
** Only in specific social projects that have income generation as an impact metric.

Green &Social Bond

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Issue 07 • September 2021

Covid-19 bond impact reporting
Impact reporting from projects funded by the Covid-19 bond portfolio as of 31 December 202014

859,407
Covid-19 tests provided

15,686 Recipients of healthkits

1,222 Health personnel
trained/recruited

29.4 million
Beneficiaries of moneytransfers and/or free waterand electricity

316,101
SMEs protected

567
Ventilators provided

129,732 People benefitted
from social protection
schemes

848,168
Jobs created andsafeguarded

6.8 million
Food kits distributed

61.2 million
Beneficiaries*

NB: The impact reporting is based on ex-ante estimates at the time of project appraisal, therefore there is no guarantee that theseresults will ultimately materialize. The impact reporting doesn’t provide actual results achieved in a specific year or reporting period.
Full impact reporting for each project is available upon request.

14 This impact reporting is computed proportionately to AfDB’s share of financing in the eligible Covid-19 projects.
* Based on the UN Statistics Division and the AfDB Statistics Department, the average African household size is 4.69 as of 2019.

Green &Social Bond

Newsletter

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Issue 07 • September 2021

AfDB Green Bond Webpage❙ Green Bond framework❙ CICERO second opinion❙ Eligible green projects❙ Green and social bond newsletters❙ Green bond transactions❙ Ten-Year Strategy (2013–2022)❙ Environmental policy❙ Energy policy❙ Integrated Safeguard Systems❙ Joint-MDB report on climate finance❙ Climate finance tracking
methodology❙ Annual Development Effectiveness
Review❙ New Deal on Energy for Africa❙ African Economic Outlook

AfDB Social Bond Webpage❙ Social Bond framework❙ Sustainalytics second opinion❙ Eligible social projects❙ Social bond transactions❙ Green and social bond newsletters❙ Ten-Year Strategy (2013–2022)❙ Integrated Safeguard Systems❙ Annual Development Effectiveness
Review❙ African Economic Outlook❙ Covid-19 Rapid Response Facility(CRF)

Green &Social Bond

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Issue 07 • September 2021

Transparency and development results
Annual Development Effectiveness Review
The Annual Development Effectiveness Review (ADER) appraises Africa’s development over the past
year in relation to the High 5 priority areas and details the contribution made by the African
Development Bank. The ADER also presents the results of the Bank’s ongoing efforts to strengthen
its portfolio and make its operations more effective.
African Development Bank Group

Development impact results from projects completed in 2020

AnnualDevelopment
Effectiveness
Review 2020
Building resilient African economies

Annualreview

2011

10THEDITION

2020

❙
❙
❙

260,000 people with new electricity connections
16.4 million people benefited from improvements in agriculture
8.3 million people with improved access to water and sanitation

❙
❙
❙
❙

7,700 owner-operators and MSMEs provided access to financial services
9.2 million people with better access to transportation services
170,000 people with better access to education
118,000 people trained

Data Portal
The projects Data Portal provides access to informationon all of the African Development Bank’s lending
projects from 1967 to date. With one-click navigation,
this user-friendly portal provides a ready-made tool formonitoring and showcasing more than 4,855 Bank
projects, as well as a bird’s-eye perspective on countries,
regions, sectors and the High 5s. Altogether, this portal
allows for a better understanding of where there might begaps between needs and resources.

afdb_acc

African Development
Bank Group

www.afdb.org

AfDB Group

FundingDesk@afdb.org

AFDB <GO>

Design and layout: www.creondesign.net

The African Development Bank’s green bond impact
reporting can be found on the Green Asset Wallet
platform, the world’s first blockchain platform forvalidation and reporting of financial impact, designed
to inject efficiency and transparency into the green
bond market.