Achieving the SDGs in Africa: data, finance,

digitalization & localization

@wbg2030

worldbank.org/sdgs

Georgetown University

January 23rd 2019

Mahmoud Mohieldin

Senior Vice President

World Bank Group

Table of contents

I) African Perspectives

II) The opportunity of the SDGs

III) Supporting the SDG Agenda

✓Data

✓Finance

✓Implementation

❖Digitalization

❖Localization

Total countries: 52

FDI to Africa: $42 billion (Out of total $1.43 trillion)FDI outflow from Africa: $12.1 billion

Source: International Monetary Fund, 2018 https://www.imf.org/external/datamapper/datasets/WEO/1World Investment Report, UNCTAD, 2018 https://unctad.org/en/PublicationsLibrary/wir2018_en.pdf

African Perspectives

GDP share of world:2.75%

GDP per capita (Current prices, U.S. dollars per capita): $1,890

Population: 1.3 billionShare of total population:17.33% China: 1.38 billionIndia: 1.33 billion

3

Africa GDP compared to China and India

4

CommodityPrices

▪ Africa is a net commodities exporter and is

deeply affected by lower commodityprices

Main challenges affecting Africa

Poverty

▪ Poverty is falling more slowly in Africa than

other regions

▪ Absolute number of poor has increased dueto

high population growth rate

Sluggish Growth

▪ Growth continues to strengthen, reaching an

estimated 3.5 percent in 2018, but is still

below potential

▪ Commodity exporters are experiencing the

sharpest declines in growth

Currency Depreciation andDebt

▪ The strong US dollar has put pressureon

currencies across the region

▪ This has increased inflation and led to higher

debt burdens

Fragility andConflict

▪ Africa hosts a third ofthe world’s displaced

population

▪ The region has seen an increase in non-traditional

forms of conflict that target civilians

ClimateVulnerability

▪ Africa is the lowest carbon emitter but is more

vulnerable to climate change than other regions

▪ Climate change threatens natural capital,

physical capital, and humancapital

Source: African Economic Outlook 2019, African Development Bank5

6

The SDGs present a major opportunity for transformation

Global development agendas serve as a guide for countries to determine their national development path

MDGs (2000-2015) SDGs (2016-2030)

Goals/ Targets/Indicators 8/21/60 17/169/~230

Priority Areas Human Development Holistic: Economic, Social, Environmental

Scope Developing Countries Universal

With underachieved MDGs, the SDGs require more work Improvementsinhealth,nutrition,and education,butmuch remainstobedone tomeettheMDGs in Africa.▪ Thecontinent achievedmore than 70 percentof the progress required by2015 on several indicators:prevalence of undernourishment(83 percent);

infant mortality ratio (72 percent);under-5mortality rate (81 percent); and access to safe drinking water (78 percent).▪ Despite progress, the continentstill lags behindother regions in reducingextreme poverty and achieving gender parity in schools and access to

sanitation.TheSDGs arethenextstepintheglobal effortstotransformdevelopment withamoreambitious agenda.▪ To achieve their promise, SDGsrequire major commitments regarding policy and institutional reform as well as delivering on the Addis Ababa

Financingfor Development Agendawhich aims to convertbillions to trillions, mobilizing new resources for development,private business and finance inparticular.

100%

59%

100%

62%

33% 33%

51%

74%72%

80%81%

65%60%

78%

16%

10%

0%

30%

20%

50%

40%

60%

70%

80%

100%89%

90% 83%

Extreme poverty Prevalence of Primary completion Ratio ofgirls to Mortality rate, Mortality rate, Maternal mortality Access to safe Access to basic

(population below undernourishment rate, total (% of boys in primary and infant (per 1,000 live under-5 (per 1,000) ratio (modeled drinking water (% of sanitation facilities

estimate, per population with (% of population1.25 day, 2005 PPP) (% of population) relevant age group)secondary education births)

(%) 100,000 live births) access) with access)

Dis

tance

to

2015 g

oal, %

Global and Africaprogress towardthe MDGs varies Developing

countries, weighted bypopulation

100%

Distance to the goal achievedglobally (%) Distance to the goal achieved SSA(%)

Source: WDI October 2015 data and Development Economics, World Bank staff calculations.7

Africa’s challenges are at the heart of the WBG priorities and the SDGs

Impact of Climate

Change

Fostering Inclusive

Growth

Getting Servicesto

the Vulnerable

Reducing Fragility Migration and

Displacement

Leveraging Resources

for DevelopmentLinks to WBG

Corporate

Priorities

8

63%

38%

52%

88%

68%

87%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Basic water Basic sanitation Access to electricity

SDG 6 SDG 7

SDGs 6 and 7

Africa World

39%

17.7%

33%

10.9% 10.7%

22%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Poverty headcountratio - $1.90

Prevalence ofundernourishment

Prevalence of stunting

SDG 1 SDG 2

SDGs 1 and 2

Africa World9

Source: Staff calculations from World Bank WDI, 2018

How are African countries progressing on the SDGs?

18 African Countries have already presented their SDG implementation plans at the High Level Political Forum

0

5

10

15

Yes Some No Yes Concept No

Budget in HLPF Incorp into natl budget

Financing

02468

Yes Concept No Yes Some No

Integrate SDGs into nat'l monitoring Review of state of data

Data

Source: Preliminary staff analysis of 2016-2018 VNR country reports10

Algeria

Burkina Faso

Cameroon

Central African Republic

Chad

Congo (Republic of the)

Cote d’Ivoire

Eritrea

Eswatini

Ghana

South Africa

Timor-Leste

Tunisia

13 more African countries are presenting VNRs in 2019

11

Key pillars to support the achievement of the SDGs

Implementation:Digitalization &

Localization

DATA FINANCING

Ref: WBG/UN report to the UN CEB on the

Lessons Learned from the MDGs; DC Lima

paper on WBG’s role on SDGs; Disruptive Tech and the WBG

DC 2018 AMs paper.

Ref: Spring Meetings 2015 Development Committee paper

on Financing; Addis 2015 outcome

document

Ref: UN report on “A World that Counts”;

WBG/MDBs/UN MoU on Data

12

13

Data is the New Oil

Realizing the Data Revolution

Source: Who and what gets left behind? Assessing Canada’s domestic status on the sustainable development goals, Brookings, 2017

0

5

10

15

20

1 3 5 7 9 11 13 15 17

Seventy-eight of 169 SDG targets describe potentially assessable outcomes for Canada

Not able to assess

Proxy target

Canadian national target

Quantified SDG target

Source: Japan Ministry of Foreign Affairs 14

Improving Statistical Capacity

Statistical Capacity is a nation’s ability to collect, analyze, and disseminate high-quality data about its population and economy. Quality statistics are essential for all stages of evidence-based decision-making, including: • Monitoring social and economic indicators• Allocating political representation and government resources• Guiding private sector investment• Informing the international donor community for program design and policy formulation

15

The Atlas of Sustainable Development Goals – a visual guide to data and development

• The Atlas of Sustainable Development Goals presents maps, charts, and stories related to the 17 Sustainable Development Goals.

• The Atlas discusses trends, comparisons, and measurement issues using accessible and shareable data visualizations. The data draws on the WDI. For each of the SDGs, relevant indicators have been chosen to illustrate important ideas.

16

16

17

18

Financing for Development Landscape

19

Finance will need to come from all sources

Big picture of developing countries' total resource receipts

Tax revenues

0

1

2

3

4

5

6

7

FDI Net Inflows (% of GDP)

Low & middle income

World

Middle East & North Africa

Fintech

20

Embracing the Digital Economy

Human Capital Index

Source: WDR 2019 Teamhttp://documents.worldbank.org/curated/en/816281518818814423/pdf/2019-WDR-Report.pdf

21

Readiness to Change Index (1 of 2)

Sou

rce:

20

17

Ch

ange

Rea

din

ess

Ind

ex, K

PM

G

Readiness to Change Index (2 of 2)

Sou

rce:

20

17

Ch

ange

Rea

din

ess

Ind

ex, K

PM

G

Technological Readiness Ranking

Source: Preparing for Disruption, Technological Readiness Ranking, Economist Intelligence Unit http://www.eiu.com/Handlers/WhitepaperHandler.ashx?fi=Technological_readiness_report.pdf&mode=wp&campaignid=TechReadiness

24

Offers an assessment of how well prepared countries are for technological change, across three key categories:• Access to the internet• Digital economy

infrastructure• Openness to innovation

Mobile Broadband Connectivity Status (2017)

Source: GDDDR analysis, based on ITU and TeleGeography data

Color Min. Max.

0 25

25 50

50 75

75 100

100 125

125 150

150

Growing digital divide: Limited and expensive broadband connectivity is slowing economic transformation in Africa and access to services

Average Price of 1GB relative to monthly Income

25

And yet, these promises will remain unrealized for the 3.5B people still missing out due to lack of connectivity26

DIGITAL

ECONOMY

Smart

Agriculture

Smart

Energy

eCommerce

Digital

Education

Digital

Health

Industry

4.0

Digital

Transport

Digital

Culture

Inclusive Growth

Jobs

Competitive Economy

Efficiency

The scale and speed of disruption is affecting

traditional sectors.

Changing how we collect, store, access, analyze and

present data.

Improving production techniques to increase efficiency, affordability,

and speed.

Transforming how we interact with the world

and deliver/ receive services.

Digital economies require safeguards to ensure robust job markets, and possible downside risks27

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IGIT

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ILL

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ND

LIT

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AC

Y

DIG

ITA

L P

LA

TF

OR

MS

USAGE•••

DIGITAL

INFRASTRUCTURE

DIGITAL FINANCIAL SERVICES

DIGITAL

ENTREPRENEURSHIP

•

•

•

•

•

•

•

28

Localization

Indonesia:

A program is being

implemented to enhance the

capacity of local

governments to improve

efficiency and effectiveness

of local public spending.

Also implemented the PNPM

program: community driven

development

U.K. Midlands

Successful locally owned

businesses help develop

local markets, create

innovation, success and

redistribution in a self-

reinforcing cycle

Colombia:

Localization of Urban Development

30

1 2

2004: Official Government Portal launched

Four areas of focus:

- Institutional development

- Governmental services

- Enterprise resource planning

- Establishing & integrating national datasets

Government Services Development Program:Digital services for speed delivery

Education enrollment

Utilities

Legal services

Government services location sharing

Information on municipal governance, complaints & inquiries

Needed: virtual decentralization & IT capacity-building at local levels

Egypt

31Source: Elmassah & Mohieldin, 2019

Private initiative:

MasterCard & IFC, using big data tools,achieved progress in promoting coverage of financial services to the poor in Sub-Saharan Africa

Ghana

Uses 2 terabytes of BD by mobile network operators

Forecast potential users of DFC at local

level

Uptake of DFS in Ghana increased by 70,000

32Source: Elmassah & Mohieldin, 2019

33

Made government data, widely available to the public.• National health• Education• Infrastructure• Census surveys

Kenya Open Data Initiative (KODI)

• Enforced ICT standards in

government

• Promoted ICT literacy, capacity,

innovation & enterprises.

2013: Kenyan ICT Authority

established

• New website (Kenya Government Portal)

• E-citizens (engagement) platform• Open data platform• Network of ‘one-stop shops’ citizens

technical assistance with accessing e-government services (Ex. online tax returns)

2015: E-governance initiatives

Kenya

Source: Elmassah & Mohieldin, 2019

E-government services started in 2005

• “One-stop shop” solutions for citizens

• Citizens engagement in policy discussions (Professional education)

Government & OECD’s Open Government Project Design and enact reforms using big data withpublic & civil society

Tunisia

The Big Data Hackathon in 2017 Encouragestart-ups, educational institutions, to innovateon available big data

Tunisian E-government Society raises awareness on political, administrative functions and usages

of IT platforms & information

34Source: Elmassah & Mohieldin, 2019

Every African Individual, Business and Government (central and local) to be Digitally

Enabled by 2030

Reaching the Moon

35

• Launched in 2014. Youth competition on innovative ways to finance and implement development solutions to help reach the SDGs.

• Partnership between the World Bank Group and the Wharton School, amongst others

• In 2017 the Ideas for Action (I4A) competition attracted over 700 proposals from 118 countries.

• Winning proposals :

• Top 10 will be published in a book• Top 3 will participate in the WBG-IMF Annual Meetings• The Wharton School offers top 10 winners training and opportunities to exchange knowledge

• Visit the website at http://www.ideas4action.org/; Follow us @Ideas4Action

• Call for proposals for the 2018 edition of I4A : Deadline February 28th

http://www.ideas4action.org/2018-competition/

Watch video of 2016 winners

36

Mahmoud MohieldinSenior VP

Thank Youworldbankgroup.org/sdgs

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Mahmoud-Mohieldin on

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