This archive report was first published on 21 October 2019.
Published on October 21, 2019, outgoing Africa Development Bank director general for the East Africa regional development and business delivery office Gabriel Negatu spoke to Njiraini Muchira on his three-year tenure in the region.
During his tenure, Negatu witnessed significant reforms in the region, which he believes could propel East Africa to a middle-income economy in the shortest period.
"Governments understand what needs to be done politically and socio-economically to advance their respective nations," Negatu said. "These reforms include managing debt, containing borrowing, putting borrowed money into proper use, investments in infrastructure, liberalisation of policies to attract investments and measures to ease doing business."
He noted that democracy is taking root in the region, with the transfer of power becoming a major event that is no longer bloody. This, he said, signals that East Africa is rising and continues to be the fastest-growing region on the continent.
Negatu attributed the bank's rising profile in the region to its decision to bring it closer to its clients. This involved decentralizing the office, authority, budget, decision-making, and staff to nine country offices in East Africa and a regional hub.
"That meant the bank has become more visible and has been able to achieve a lot in financing infrastructure, health, education, agriculture, and even in advisory services," Negatu said.
The bank's portfolio in the region stands at $10 billion, which has helped to impact, illuminate, connect, and change the lives of millions of people. Negatu cited the example of the last mile electricity connectivity in Kenya, which has transformed lives by providing farmers easy access to markets for their produce.
He also highlighted the Lake Turkana Wind Project, which was full of challenges but was successfully completed through cooperation between the bank, the government of Kenya, and the sponsors.
On the criticism that the bank focuses on infrastructure funding and ignores agriculture, Negatu said that the kind of infrastructure built enables agriculture. He noted that the bank supports irrigation systems, silos, and abattoirs, which are essential for agriculture productivity.
Regarding the Ethiopia-Kenya interconnector, which is behind schedule, Negatu attributed the delays to land access issues in Kenya and problems with the contractor. However, he said that the transmission line is now almost complete under budget and will commence transmission of power and connect to Tanzania, which will connect to Zambia and all the way to Cape Town.
Connecting the East Africa power pool and the Southern African power pool is crucial in facilitating power trade, Negatu said.
On the bank's $10 billion portfolio, Negatu said that it has not contributed to debt burden in the region. He noted that Kenya's debt has grown but so has the economy, and the loans are being used in projects like the standard gauge railway and last mile connectivity.
Finally, Negatu expressed his satisfaction with the rate of EAC integration, saying that East Africa is the most integrated region in Africa. However, he noted that there is still room for improvement, particularly in bringing down non-tariff barriers and allowing greater trade, mobility of people, capital, and goods.
He also described China as a long-standing partner in Africa, which has become more engaged and active in recent years. Negatu noted that China has given Africa visibility and has shown that Africa can be a good investment decision that offers good returns.
