Armando Manuel, in his first interview as executive director of the World Bank Group, shares challenges by taking the reins and the voice of three countries: Angola, Nigeria, and South Africa.
He was elected executive director of the World Bank Group. How do you feel about this new challenge?
I feel challenged to be in the presence of yet another opportunity to serve with a sense of mission. After the United Nations, the World Bank is the second institution with the highest index of diversity and inclusion, bringing together almost all the peoples of the world around two objectives: that of alleviating extreme poverty and sharing prosperity, through financial products and through the dissemination of knowledge in specific thematic areas. It is certainly a challenge, but also a pleasure to serve worldwide.
What will, in practical terms, be your role?
My role comprises two main pillars. One related to the conduct of fiduciary life of the World Bank Group, GBM, seeking to ensure the financial balance of the balance sheet and the fulfillment of GBM mandates (alleviating extreme poverty and sharing prosperity in the global economy). The other pillar is centered on representing the interests of the countries that are part of the constitution I represent (Angola, Nigeria, and South Africa). The executive directors represent the interests of their countries in terms of monitoring the portfolio with the GBM. Along this path, I conduct the business of the ANSA representative office (Angola, Nigeria, and South Africa), a position for which I was deputy director for the past two years and one of which I acted as the executive director, in spite of the then physical shift Nigerian, Mohammed Aruna. It should be noted that in the exercise of this function, I engage bilaterally with other multilateral partners for the benefit not only of the countries I represent but also of the rest of Africa and above all of the middle-income economies. I also co-chair the GBM Budget Committee and am a member of the Bank’s Human Resources Committee. In the rest, I follow the tasks of the Audit Committee, not being a member of it.
What is the World Bank’s view of Angola?
GBM sees Angola as a country with enormous potential. The Bank and the IMF reaffirm openness and support to the country with the purpose of rebalancing public accounts, improving the business environment in order to stimulate private investment, and returning the economy to the accelerated growth path. It is also the view of the GBM that Angola needs inclusive economic growth, capable of generating more jobs in different social strata, in such a way as to reduce social inequalities. A prominent priority must be given to improving governance performance, channeling attention to strengthening human capital by improving processes and increasing results in education, health, and sanitation, without neglecting the importance of reducing the widespread health deficit. essential infrastructure, such as access to electricity, roads, telecommunications to realize the dividends of the digital revolution and to support productivity acceleration. In these described domains, the World Bank has the conditions to continuously strengthen the partnership with Angola, not only with financial resources but above all with knowledge, seeking the best public and private management experiences experienced by the world and adapting them to the reality of the country.
What is your view of the Angolan economy today?
Angola today is a low middle-income country, unfortunately, its GDP fell by almost 46% between the period 2014 and 2020, it’s per capita income fell by almost 12 years, standing close to the levels of national income per capita in 2007, this was due to the effects of the pandemic and much more of the economic recession caused by the drop in the prices of raw materials for export in 2014, having subsequently worsened with the successive falls in oil production and the imposition of quotas by OPEC. This environment of lack of economic growth has also been experienced in other countries such as Nigeria and South Africa, with a great impact on those economies that are heavily dependent on a reduced range of export raw materials and with a limited level of economic transformation.
So what would be the most adjusted economic model for Angola?
Various academic circles and the GBM have discussed the need to adapt the economic growth model hitherto employed, looking for an anti-cyclical model that guarantees accelerated inclusive growth through an economic transformation process, which broadens other value chains, expanding more jobs in the periphery, increasing per capita income and reducing asymmetries in the population mosaic in such a way that the economy becomes increasingly resilient from external shocks. Angola enjoys a set of comparative advantages, however, it is necessary to refine the regulatory role of the State, it needs to slim down the size of the State, restructure a set of public corporations with a colossal asset balance, but operating at levels of pure inefficiency, creating liabilities for the Treasury which, in turn, constitutes a high opportunity cost through the crowding-out of the financing that is required by the private sector, for the generation of jobs and for the increase of the offer. However, the application of this prescription is not limited to short lines of text or limited to the sequenced prescription of simple predefined steps.
Tell us about the World Bank’s portfolio with Angola and the prospects for supporting the Angolan economy?
At the present date, the Bank’s portfolio with Angola has net commitments of US $ 1,850 million, distributed by 87.1% by the International Bank for Reconstruction and Development (IBRD), 8.5% by the International Development Association (IDA), and 4.4% by the Corporation International Finance (IFC). Of this $ 905.3 million is yet to be disbursed. While the level of exposure (disbursed & pending) amounts to 1,247.4 million dollars, comprising 461.9 million dollars with IBRD, 546.1 million dollars with IDA, 21.3 million dollars, and 218.1 million dollars with the Multilateral Agency of Investment Guarantee (MIGA).
The portfolio is concentrated on projects in the field of Public Administration, Social Protection, Health, and Water. Historically, 97 projects have already been concluded, representing a volume of commitments in the order of 2 billion dollars. From a short-term perspective, Angola should benefit, for the OGE 2021, from budget support in the context of ongoing reforms; followed by other actions in the field of the empowerment of young women. The guarantee of the International Bank for Reconstruction and Development in the order of US $ 500 million has recently come into effect with the capacity to leverage resources over twice its value, with the aim of financing the project to increase water distribution in Luanda, from the Bita.
At the same time, the great expectation is for the consolidation of the IFC’s presence in Angola, until then trading finance operations have been carried out, hoping that in the near future there will be a more active presence, establishing partnerships with the private sector, in the allocation loans and consultancy services. The recent disclosure of the diagnosis of the private sector, allowed to list six priority sectors, namely: Energy, Agribusiness, Telecommunications and Information Technologies, Education, Transport, and Access to Financing. However, in order to achieve this agenda, Angolan authorities must carry out specific reforms in order to mitigate certain investment risks.
Of the countries in your hands – Angola, Nigeria, and South Africa – which one do you consider the most demanding?
These economies share common characteristics, but each has its own specificities. In this context, at the level of the GBM’s Board of Directors, I have given my voice, exploring the dimension and particularities of each of the economies I represent.
Before joining the GBM, he was at the IMF, tell us a little about your international experience.
Months after I left the role of Minister of Finance of Angola in 2016, I received an invitation to join the International Monetary Fund as an expert in tax matters. Initially, I worked with Portuguese-speaking African countries, providing technical assistance in Public Finance Management. At this time, I was based in Luanda and only traveled for service missions in Maputo, São Tomé, Praia, and Guinea-Bissau. These were interesting periods, being able to advise the Governments of these countries on the broad themes of Public Finance Management, to understand the depth of Africa’s challenges, the common problems, and the specific realities of each country. A year later I was invited to settle in Washington DC following a vacancy for a resident advisor at the Department of Tax Affairs.
He also accumulated academic life with public life … I started my professional life very early when compared to the ordinary standard of our society.
I was 16 years old when I joined the Ministry of Education as a teacher. By counting the years I am not far from retirement. Now, the academy is certainly a potential destination port to continue to share the experiences of knowledge with the new generation. Finally, we are entering 2021, how do you want your legacy to be remembered at this institution? Doing a good job is all we aim for. I am convinced that in a highly competitive market, doing a good job allows opening doors to other African servants, to other Angolan, Nigerian, and South African citizens. This requires that we have to work with dedication and, above all, with a selfless spirit of surrender, giving our best, but also trying to learn more and more.
Forbes Angola
