1. Doorway to
development
Nigerian know-how
Planning for sustainable growth
Next stop, Brussels
Charting Serbia’s way to the EU
Under the
Tanzanian sun
Bridging the energy gap with solar
Dynamics
Supporting international development around the world
December 2014
Issue 10
3. A
s 2014 draws to a close, it’s only natural to look up and take stock. It’s been quite a
Dynamics, EY’s
Africa rising…
why.
EU’re on track…
A doctor in the house… Rohan Malik
and
Dynamics
01Dynamics Issue 10 December 2014
4. Dynamics Issue 10 December 201402
Contents
We meet ...
Nigerian know-how
08
Life in the hot seat
22
Next stop, Brussels
16
Under the Tanzanian sun
24
5. Dynamics Issue 10 December 2014 03
About EY
ey.com
EY
Features Regulars
Contacts
40
Country spotlight: Chile
38
Round up, refresh
06
My story, my views...
32
26
Moving forward, moving up
Accelerating Africa’s progress
12
6. Better management boosts economic
growth in Africa
Dr. Caleb Fundanga, who took over as director of the Macroeconomic and Financial
Management Institute of Eastern and Southern Africa (MEFMI) in July, said that Africa’s recent
management.
According to her, although the organization was established to help countries manage their
management. Speaking at MEFMI’s combined forum in Washington, DC on October 6, he said:
“Unless economies are properly managed, the debt problem will continue recurring. Much of the
growth that we’ve seen in our countries has been because there has been an improvement in the
way we manage our economies.”
MEFMI, which celebrates its 20th anniversary this year, had played its part in these
improvements, he added, by organizing courses in macroeconomic management, monetary
policy, reserves management and bank supervision. As a result, central banks in MEFMI
member countries were now able to spot emerging problems in the banking sector and take the
necessary actions.
04
hard to access and use.
speeches there are around openness, a
Donors urged to improve information
sharing
Africa’s economic
growth set to
pass 5%
Economic growth in Africa could exceed
5% in 2015-16, according to fresh projections
from The World Bank. Economies across the
continent continue to rise at a moderately
quick pace, with regional growth estimated to
strengthen to 5.2% in the next two years, from
4.6% in 2014.
Francisco Ferreira, the WBG’s Chief
Economist for Africa, said the continent
is projected to remain one of the world’s
three fastest growing regions and maintain
“its impressive 20 years of continuous
expansion.” But he added: “Downside risks
that require enhanced preparedness include
economic fallouts from the activities of
terrorist groups such as Boko Haram and Al
Shabaab and, most urgently, the onslaught
of the Ebola epidemic in West Africa.” The
in infrastructure, increased agricultural
production and expanding services in African
retail, telecoms and transportation to continue
to boost the growth in the region.
Meanwhile, a separate WBG study, Africa’s
Pulse, noted that economic transformation
would become more critical, as it found the
region “was largely bypassing industrialization
as a major driver of growth and jobs.” Instead,
the study said, extractive industries in the
natural resources sector and a surging
services industry were behind Africa’s growth.
Co-author of Africa’s Pulse and WBG
lead economist for Africa, Punam Chuhan-
Pole, added: “Nearly two decades of strong
growth is transforming Africa’s economies,
but the structural change is not what the
world expected. The majority of Africa’s
jobs continue to be in agriculture and is
surging into services — but not into industry
and manufacturing. The good news is that
in Africa, this growth in agriculture and the
services sector has been more effective in
reducing poverty than growth in industry. In
the rest of the world, by contrast, industry
and services have a larger impact on reducing
poverty.”
Round up,
refresh
Dynamics Issue 10 December 2014
7. Regular |
05Dynamics Issue 10 December 2014
Afghan women and girls poised for
USAID boost
USAID sustains
peacebuilding partnership
in central Africa
The US Agency for International Development (USAID) has
announced an extra US$7m in funding for the Central African
Republic (CAR) Peacebuilding Partnership.
The public-private partnership will support and strengthen
locally led peacebuilding and atrocity prevention efforts in the
support is focused on empowering interreligious leaders, as
well as women and youth, who are critical players in promoting
peace and reconciliation in communities affected by violence.
“In the midst of unprecedented humanitarian challenges
across the globe, we cannot and have not, lost sight of the
urgent situation in the Central African Republic,” said Assistant
Assistance Nancy Lindborg. “The Peacebuilding Partnership is
a vehicle for public and private donors to invest their resources
around a common purpose of promoting a more resilient,
peaceful and inclusive future in the Central African Republic.”
In addition to making the US$7m donation, USAID is
to reach a total of US$15m. The initiative will build on
current USAID programs in the CAR, including US$7.5m in
peacebuilding programs to empower local voices for peace,
promote interreligious and other community dialog, and
improve access to accurate information in local media.
8. Dynamics Issue 10 December 201406
The Ebola outbreak in West Africa is
impairing the ability of governments to
raise revenues, increasing their exposure to
domestic and foreign debts and may make
them more dependent on aid, according to
the latest study on the socioeconomic impact
of the crisis carried out by the the United
Nations Development Programme (UNDP).
“We need to make sure that the Ebola
outbreak does not lead to socioeconomic
collapse,” said Abdoulaye Mar Dieye, the
Director of the UNDP’s Regional Bureau for
Africa. “This crisis is already taking a toll on
budgets and reducing the governments’ policy
leeway to make much-needed investments in
critical areas such as health and education
for their citizens.” He added that the effects
of the Ebola crisis will last long after the
epidemic is brought under control.
In total, the governments of Guinea,
Liberia and Sierra Leone are experiencing a
shortfall of US$328m to be able to function
at pre-crisis levels, the study shows. The gaps
are caused by increased spending to tackle
a slowdown of economic activities such as
tourism, mining and trade. Because of Ebola,
government expenses have risen by about
are rising.
the three countries are resorting to domestic
and international borrowing and have
International Monetary Fund and the World
Bank. “These countries were heavily reliant
on aid but beginning to see healthy rates
of economic growth and opportunities for
domestic resource mobilization,” said Dieye.
“We need to avoid a situation where these
countries increase their dependence on
In recent weeks, West African and global
development leaders have appealed for
a massive coordinated reinforcement of
international health teams to the three
countries in order to contain the epidemic.
The health workers are needed to treat
and care for patients, boost local health
capacity, manage Ebola treatment centers,
and resume essential health services for
non-Ebola conditions. Current estimates by
the United Nations indicate that about 5,000
international medical, training and support
personnel are needed in the three countries
over the coming months to respond to the
Ebola outbreak, including 700-1,000 foreign
health workers to treat patients in the Ebola
treatment centers. “The world’s response to
recent weeks, but we still have a huge gap in
getting enough trained health workers to the
areas with the highest infection rates,” said
World Bank Group President Jim Yong Kim.
barriers to the deployment of more health
workers.”
Ebola draining development budgets in West Africa
US and El Salvador agree investment compact
9. Dynamics Issue 10 December 2014
Regular |
07
Round up,
refresh
to understand whether its anti-corruption
DFID’s anti-corruption approach
set for Philippines
mission
A team of meteorologists and senior
is heading to the Philippines to help develop
their national weather center. One year on
from the devastating Typhoon Haiyan, the
UK team is tasked with helping the country
to better plan evacuations, put in place
life-saving public warning services and build
infrastructure that can withstand natural
disasters.
Weather scientists from the Philippines
will also be brought to the UK to be trained
in how to use the supercomputers and
sophisticated software behind the Met
systems.
“By sending a team of specialists from
of British expertise and weather know-how
to strengthen the Philippines’ resilience to
future disasters,” said the UK’s International
Development Secretary, Justine Greening.
and farming industries so thousands of the
poorest women-led households can get
their livelihoods back. It will not happen
overnight, but the sooner people can get
back to work and get on with their lives
the sooner the country as a whole can fully
recover.”
The World Bank (WBG) and the Australian Government have teamed up with Myanmar
to improve the quality of education provided to millions of poor students. Both have
pledged US$100m to the country’s Decentralizing Funding School Project and the World
Bank is providing an US$80m credit agreement through its International Development
Association, which provides concessional loans and grants to the world’s poorest
developing countries.
“The project provides direct support to the Ministry of Education to expand funding
Education, and a student stipends program that will focus on 40 townships,” it said in
a statement. “The project will also strengthen the ministry’s capacity to monitor and
implement these programs.”
World Bank and Australia back
Myanmar education program
10. 8 Dynamics Issue 10 December 2014
underpinned by abundant
natural resources and a
Ngozi Okonjo-Iweala is
Nigerian
know-how
11. 9Dynamics Issue 10 December 2014
We meet ... |
Npowerhouse blessed with rich natural
her career has, in addition, taken her to
Lessons from change went about it was to look at where it was
I think that all countries
12. 10 Dynamics Issue 10 December 2014
Going forgrowth
Africa
Attractiveness Survey
13. 11Dynamics Issue 10 December 2014
We meet ... |
and interest has also been boosted by the
that can boost their technical capacity
otherwise we will not be able to create
tribute to its ability to create jobs.
Spending solutions
bad person who doesn’t want to support
The issue is within the priority set and
poised to continue its ascent in the years
14. 12 Dynamics Issue 10 December 2014
Accelerating
Africa’s
progress
says EY’s Joe Cosma
15. 13
Feature |
C
cycle.
do not yet operate in the continent. Those with an established
continent’s prospects, while those with no business presence in
destination.
Five priorities for inclusive,
sustainable growth
16. 14 Dynamics Issue 10 December 2014
action.
I. Embracing a philosophy of shared value
II. Promoting entrepreneurship
III. Accelerating regional integration
1988 - 2000 2001 - 2012 2013 - 2030
Ab
GDP growth CAGR
The African growth story is real
17. 15Dynamics Issue 10 December 2014
Feature |
11 11
1
2
1 1
4
21
24
Source: Oxford Economics Database, EY analysis
Joe Cosma is EY’s Government & Public Sector Partner in Africa
joe.cosma@za.ey.com
Download EY’s report, Africa 2030: Realizing the possibilities at www.ey.com/za
IV. Bridging the infrastructure gap
projects to the point at which they are bankable.
V. Forging productive partnerships
Eyes on the horizon
story.
work.
Number of economies growing at a rate greater than 5%
2001 - 2012
18. 16 Dynamics Issue 10 December 2014
Next stop,
Brussels
European Union, Tanja
T
political union continues to enjoy substantial allure.
way.
accession process.
20. 18 Dynamics Issue 10 December 2014
On the road to
accession
1 October 05
3 May 06
21. 19Dynamics Issue 10 December 2014
We meet ... |
Making the case for
Europe
into their backyard and we need to ensure
eastern European countries when they
13 June 07
7 November 07
22. 20 Dynamics Issue 10 December 2014
properly.
not because we are not enthusiastic, but
Beyond borders
across European capitals. The two nations
1 January 08
18 February 08
23. 21Dynamics Issue 10 December 2014
We meet ... |
In part, this is due to the EU’s
decision on what will happen with this
Between Brussels and
Belgrade
because now we are in a phase where we
are on the phone on a daily basis and
dedicated, enthusiastic and educated
her.
29 April 08
19 December 09
Stephen Fish is EY’s Country Leader in Serbia
Ioanna Kokkinou is an Associate Director in EY’s
EU Account Team
ioanna.kokkinou@gr.ey.com
24. 22 Dynamics Issue 10 December 2014
prosperity in an
unequal world is hardly
Dr. Jim Yong Kim.
He tells us about his
T
Medical matters
Lifein
thehot
seat
25. 23
We meet ... |
Eyes on the prize
A “bumpy road” to progress
26. 24 Dynamics Issue 10 December 2014
Under the
Tanzanian sun
Patrick Ngowi’s L
Moving on up
2014 Africa
Attractiveness Survey
27. 25Dynamics Issue 10 December 2014
Feature ... |
in rural areas where the people
phones and accessories direct
Reach for the sky
couldn’t abide that, no way, but I
least, that was the plan.
Spreading the word
slow down.
opportunity
28. 26 Dynamics Issue 10 December 2014
F
isn’t bad.
stability.
EY recently launched our latest Kazakhstan
Attractiveness Survey
Moving
forward,
moving up
says EY’s Erlan
Dosymbekov. Here,
years ahead.
29. 27Dynamics Issue 10 December 2014
Feature ... |
Building “brand
Kazakhstan”
trade partners.
Macroeconomic stability
Stable political and social environment
Telecommunication infrastructure
Domestic market
Corporate taxation
81.2%
79.6%
72.8%
63.4%
56.8%
17.7%
16.8%
17.8%
30.9%
20.1%
1.1%
3.6%
9.4%
5.7%
23.1%
Attractive Non-attractive Can't say
Source: EY's 2014 Kazakhstan attractiveness survey (total respondents: 211;
established in Kazakhstan: 78 and not established: 133).
Local labor costs
Telecommunication infrastructure
Domestic market
Macroeconomic stability
Entrepreneurial culture
46.5%
40.6%
37.4%
35.9%
35.4%
36.0%
42.7%
50.5%
53.0%
51.4%
17.5%
16.7%
12.1%
13.2%
11.1%
30. 28 Dynamics Issue 10 December 2014
question.
Global Competitiveness Report
2014–2015
and European countries, will also enhance trade
Maintaining momentum
31. 29Dynamics Issue 10 December 2014
Feature ... |
Growth and opportunity in the industrial sector
Action plan for success
1. Create a consistent business
environment
established operations in the country, are
32. 30 Dynamics Issue 10 December 2014
Erlan Dosymbekov is EY’s Managing Partner, Kazakhstan
and Central Asia
erlan.b.dosymbekov@kz.ey.com
Download EY’s 2014 Kazakhstan attractiveness survey
2014, The brand paves the way, at
www.ey.com/attractiveness
2. Invest in infrastructure
3. Develop human capital
4. Ensure judicial independence
5. Adopt a proactive approach to
attracting investors
Three investment enablers
1. International integration
2. An innovation-driven economy
industrial sector.
3. Focus on green technologies
A bright future …
the world around us.
36. 34 Dynamics Issue 10 December 2014
Moving up Whitehall’s
ladder
I then returned to the UK and joined
ownership, accountability and results.
heart and head was. I was appointed to be
37. 35Dynamics Issue 10 December 2014
We meet ... |
To the EBRD
and we’re now well underway. I think it is
we operate in and
how our projects are
policy issues are and
those countries are
under that president’s watch and so we
38. 36 Dynamics Issue 10 December 2014
an outsider has. In our case, we’re not
Blending the public
and private
need public sector solutions. Indeed,
direction with shareholders. To be
39. 37Dynamics Issue 10 December 2014
We meet ... |
to help.
If you ask me…
years later how a place that was in the
40. 38 Dynamics Issue 10 December 2014
Population (census 2012):
Projected annual GDP growth rate, 2014 in October 2014:
Projected annual GDP growth rate, 2015 in October 2014:
Total FDI in 2013 (Banco Central de Chile):
Total FDI:
Life expectancy (world health statistics 2014, OMS):
GNI per capita in 2014:
Ethnic groups:
Size:
Number of states:
EY contact
Charles Bunce Jones
charles.bunce@cl.ey.com
Jorge Vio Niemeyer
jorge.vio@cl.ey.com
ChileCountry
spotlight
41. 39Dynamics Issue 10 December 2014
Regular | Chile
C
and is endowed with abundant natural
resources and wildernesses, such lakes,
as well as the driest desert in the world.
as the wine industry which has been
years.
This is why EY has recently created
clients.
42. Dynamics Issue 10 December 2014
a project.
For more information, visit ey.com/international-development.
Contacts
Development: why EY?
International development is a priority for
EY. We have extensive experience working
on international development projects
around the world and we’d like to hear
more about your needs. Contact one of our
professionals today.
40
43. 41Dynamics Issue 10 December 2014
Regular | EY contacts
Americas
Marc E. Andersen
US
Cherie Anne Faiella
US
Switzerland
Dan Kaplan
US
Michael Beaulieu
US
Olaf Smulders
US
Charles-Antoine St Jean
Canada
Claudia Valenzuela
Brazil
Moises Alcalde
Mexico
Carlos Gallegos
Costa Rica
Africa
Joe Cosma
South Africa
Baïdy Dieng
Senegal
Laban Gathungu
Kenya
Adekunle Salau
Nigeria
Lindsey Domingo
Democratic Republic of the Congo
Djabanor Narh
Ghana
Julius Ngonga
Kenya
Brunhilde Barnard
South Africa
Mildred Tan
Singapore
Bill Banks
Sydney
Lynn Tho
Singapore
Zaqy Mohammed
Singapore
Europe
Alessandro Cenderello
Belgium
Dave Read
UK
Michael Cupit
UK
Maryam Hussain
UK
Petr Medvedev
UK
Ioanna Kokkinou
Greece
Dexippos Agourides
Belgium
Daina Belicka
Latvia
Anton Anitsev
Russia
Olesya Melnyk
Ukraine
Middle East and
North Africa
Nelson Jorge
Jordan
Abbas Ali
Pakistan
Aqueel Merchant
Pakistan
India
Siddhartha Das
India
Guru Malladi
India
