2022 Africa Long-Term Finance Workshop
Financing Africa sustainable development in times of global headwinds
Long-term finance (LTF) involves the mobilization of sustained resources to finance productive medium- and long-term investments by enterprises, households, and governments with a maturity reflecting the economic life of the underlying asset. Availability of LTF allows countries to build their gross fixed capital formation and long-term investment as key socio-economic sectors such as housing, power, water and sanitation, roads, and other social infrastructure get funded. Access to LTF also spurs the productive capacity of firms and enables allocation of resources in much needed sectors such as affordable housing to support the rapid urbanization drive of Africa. The availability of LTF is therefore critical to foster productivity growth for sustained structural transformation in Africa. However, financing Africa’s transformation has just got trickier given the current focus on climate change and increasing global uncertainties.
Efforts toward bridging the LTF gap led to the launching of the Africa Long-Term Finance Initiative (“the Initiative”) in 2017. This Initiative is a joint effort of the African Development Bank (AfDB), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Financial Sector Deepening Africa (FSD Africa) and Making Finance Work for Africa (MFW4A) to improve intermediation of LTF in Africa by strengthening knowledge generation. This is accomplished through two mutually reinforcing activities: (1) improved understanding of LTF markets in Africa by creating a LTF database and scoreboard providing comparative indicators of the level of development of LTF markets in Africa; and (2) implementation of country diagnostics and cross-fertilization of country experiences as regards policy reforms and approaches to develop LTF markets.
The LTF data platform rely on data collection process supported by a network of Central Banks Liaison Officers. Thus, improving data quality is a key issue and the regular organization of capacity building workshops to address data inaccuracies are critical for an accurate picture LTF intermediation in Africa. Such events provide the platform to speed up the data collection process and to further hone the data collection skills of the Liaison Officers. For the Initiative, these workshops are a unique opportunity to engage with its audience and partners on pressing LTF issues as it seeks to expand the scope of the scoreboard.
In this context, this second LTF workshops aims to implement a proactive and a sustainable data collection process to improve LTF data quality. Specifically, the workshop seeks, among other objectives, to provide an update on the LTF Scoreboard following the completion of the 2022 data collection round, look ahead to consolidate the data collection process and network coordinators to strengthen LTF data quality. It will also provide a forum for participants to engage and participate in the dialogue with governments and financial sector stakeholder on the importance of long-term finance in a challenging global context and the outcomes being delivered by the Initiative. As such, the workshop provides presentations and discussion sessions that focus on specific and topical themes (greening the African financial sector / debt sustainability in the face of global headings / strengthening African capital markets in times of crisis), which interfere closely with the long-term financing issue.
Participants will include representatives from the host country, Initiative member organisations, all Liaison Officers appointed by their Central Bank Governors, Ministries of Finance and some representatives of national or sub-region organizations directly involved with collecting data on domestic financial markets. Relevant financial sector stakeholders and policy makers and representatives from target institutions short-listed to join the Initiative as members or partners were also invited.
Objectives of the workshop
Overall, the objective of hosting a technical workshop on the LTF Scoreboard for country representatives is to increase data coverage and improve the quality of data collected from countries across Africa while also enhancing appreciation of the value of the LTF Initiative and thereby enhancing the coverage and quality of the data collected.Specifically, the workshop seeks to achieve the following objectives :
- Assessing the 2020 LTF data collection round and presenting preliminary findings on recent tends in LTF intermediation in Africa.
- Discussing preparations and lay the groundwork for the next 2023 data collection survey.
- Engage with Liaison Officers to enhance reliability, timeliness and accuracy of data.
- Collect feedback on the reviewed data survey templates.
- Initiate a dialogue with government officials and financial sector stakeholder on the importance of long-term finance and the work being delivered by the Initiative.
- Discuss the new scope and garner support from existing and new members or partners of the Initiative.