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CFTA negotiations intensify as deadline looms
African Union Ministers of Trade (AMOT) will meet in Niamey, Niger, on 1 and 2 December in a bid to finalize negotiations on the Continental Free Trade Area (CFTA) by the end of 2017, as directed by the African Union (AU) Heads of State and Government in June 2015.
David Luke who coordinates the African Trade Policy Centre at the Economic Commission for Africa (ECA) said that the month of November was characterized by a series of meetings by the CFTA Technical Working Groups, the CFTA Negotiating Forum, and the African Union Senior Trade Officials.
“The objective of these meetings is to conclude the outstanding issues of the Modalities for Tariff Liberalization that were adopted at the 3rd Meeting of the AU Ministers of Trade in June 2017; and to consider the draft Texts of the CFTA Agreement, its Protocols and its Annexes and Appendices,” added Mr. Luke.
The ECA official expressed optimism about the December deadline for the establishment of the CFTA, stating “Given the momentum behind the negotiations thus far, we are confident that there will be the essential substance of an agreement to come out of the ministerial meeting in Niamey.”
He cautioned, however, that some technical work will be needed during the first half of 2018 to finalize tariff schedules and rules of origin arrangements.
Mr. Luke added that “ECA is advocating for implementation of the agreement to begin early in 2018 on the basis of the level of ambition of tariff liberalization that has been agreed and with interim rules of origin pending the finalization of the outstanding technical issues.”
The main objective of the CFTA negotiations is to achieve a comprehensive and mutually beneficial trade agreement among the Member States of the African Union.
The trade ministers are expected to consider the Report of the 4th meeting of the Senior Trade Officials, which took place on 27-29 November in Niamey; and approve the Text of the Agreement establishing the CFTA, Protocols on Trade in Goods and Services and any other Annexes deemed as early harvests.
The meeting is organized by the African Union Commission’s Department of Trade and Industry.
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In Abidjan: 5th African Union-European Union Summit concludes: Investing in youth for a sustainable future
The 5th African Union-European Union Summit took place on 29-30 November in Abidjan, under the overarching theme of Youth. The Summit brought together leaders from 55 African Union and 28 European Union Member States. In their political declaration, the European and African leaders set out their joint commitment to invest in youth for a sustainable future. Concretely, they committed to focussing their work on four strategic priorities. On this basis, the European and African Union Commission will put forward concrete projects and programmes within three months.
They agreed to put in place a joint EU-AU-UN Task Force to save and protect lives of migrants and refugees along the routes and in particular inside Libya, accelerating the assisted voluntary returns to countries of origin, and the resettlement of those in need of international protection.
Decisive AU means more reliable partnerships – Kagame (The New Times)
President Paul Kagame has said that the African Union institutional reform aims at creating a self sufficient Union and will lead to more reliable external partnerships. “The forces reshaping the global economic and security environment mean that Africa’s future increasingly depends on the quality of cooperation within our own continent, first and foremost,” Kagame said. [Remarks by President Kagame at the African Union-European Union summit in Abidjan]
African trade blocs urged to adopt pact and ease commerce (Business Daily)
Members of African regional trading blocs have been asked to hasten implementation of the Trade Facilitation Agreement (TFA) to reduce cross border trade costs in a bid to grow economies. Mr Erastus Mwencha, the former Deputy Chairman of the Africa Union Commission, said the efficiency of trade hinges on the support of regional blocs such as the East African Community (EAC), the Economic Community of West African States, and the Southern African Development Community (SADC), in adopting a more open stance on trading with each other.
The 43rd EAC Consultative Meeting of Facilitation of Air Transport held in Uganda
In his opening remarks, Mr. Katushabe, Commissioner, Transport Regulation and Safety, Ministry of Works and Transport, Uganda, reminded the participants that Air Transport facilitation is an important aspect of aviation and the EAC airports have to continuously enhance capacity of existing infrastructure to be able to cope with future aviation demands, meet international requirements and to contend with the ever changing threats against Civil Aviation.
CFTA negotiations intensify as deadline looms (UNECA)
African Union Ministers of Trade (AMOT) will meet in Niamey, Niger, on 1 and 2 December in a bid to finalize negotiations on the Continental Free Trade Area (CFTA) by the end of 2017, as directed by the African Union (AU) Heads of State and Government in June 2015. David Luke, who coordinates the African Trade Policy Centre at the Economic Commission for Africa (ECA), expressed optimism about the December deadline for the establishment of the CFTA: “Given the momentum behind the negotiations thus far, we are confident that there will be the essential substance of an agreement to come out of the ministerial meeting in Niamey.”
Single Market A Windfall For Africa’s Economy (Forbes Africa)
Africa is charting a new path towards a single continental market – and it’s going to be an economic revolution. As much as the CFTA will disrupt demand and supply barriers, a single market will help align trade policies, regulations and institutions of all African countries to promote continental trade that will benefit businesses, consumers and governments. This will lead to structural transformation, industrial development, diversification, productivity boost, and new wealth that will give Africa a competitive edge. [The author, Shakir Akorede, is writer, agenda contributor to the World Economic Forum, and founder of 501Words]
Manufacturing is a critical component for job creation (dti)
Manufacturing is a critical component of the South African economic policy and also important in creating and ensuring that there are jobs in the economy. This was said by the Minister of Trade and Industry, Dr Rob Davies during a briefing to the portfolio committee on Trade and Industry on the state of manufacturing, World Trade Organisation and the Industrial Policy Action Plan (IPAP) in Parliament.
Weak manufacturing sector robs East Africa’s economy of resilience (The EastAfrican)
East Africa’s economy could be stronger and more resilient but for a weak manufacturing sector, according to the Macroeconomic and Social Development in Eastern Africa 2016-2017 report. Compared with the service sector, whose expansion has been rapid, the manufacturing sector in the region has been lagging behind as evidenced by the stagnant or even declining share of the manufacturing value added over the past decade. [Download the report]
South-South cooperation offers major opportunities to support vulnerable countries – UN official
As the most vulnerable countries continue to face serious development challenges, South-South cooperation offers enormous opportunities and potential to effectively support them in accelerating progress on implementing globally agreed goals, Fekitamoeloa Katoa Utoikamanu, the UN High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS), said at the Global South-South Development Expo 2017 in Antalya, Turkey.
Amid Fragile Environment, Ministers Weigh Trade’s Future and its Contribution to Sustainability (Bridges, ICTSD)
This year’s ministerial comes at a moment of change for the global trade system, which in October celebrated the 70th anniversary of the General Agreement on Tariffs and Trade (GATT). The negotiating agenda under discussion at the WTO is, however, relatively limited for the Buenos Aires meet. Areas where ministers could reach agreement – with varying degrees of ambition – include agriculture, electronic commerce, fisheries, and issues related to small and medium-sized enterprises. There is also the prospect of voluntary, plurilateral offshoots in important matters such as fossil fuel subsidies and gender. [Bridges Negotiation Briefing: A Guide to the WTO’s Eleventh Ministerial Conference (pdf)]
Grain council calls for policy review to promote intra-regional rice trade (The New Times)
There is need for policies that will support cross-border trade in grains and cereals and also eradicate barriers affecting the sector, the regional grain council has said. Gerald Makau Masila, the Eastern African Grain Council (EAGC) executive director, said a supportive legal regime will spur cross-border trade of commodities like rice and help reduce food imports into the Eastern Africa region.
Knowledge is the new paradigm for the future of food and agriculture (FAO)
Agriculture is poised for another major transformation as gains from the Green Revolution come up against natural resource limits. “The future of agriculture is not input-intensive, but knowledge-intensive. This is the new paradigm,” FAO Director-General Jose Graziano da Silva said in a speech at Chatham House.
Today’s Quick Links: Tailoring Aid for Trade for the Services Economy in Low Income and Least Developed Countries (ICTSD) Global Finance Resets: The decline of cross-border capital flows signals a stronger global financial system (Finance & Development, IMF) Mahmoud Mohieldin: Financing for development: Innovative mobilization of public and private finance (World Bank) Statistical Capacity Building for Sustainable Development: System prerequisites (UNCTAD) |
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African Union-European Union Summit: Investing in youth for a sustainable future
The 5th African Union-European Union Summit took place on 29-30 November in Abidjan, under the overarching theme of Youth. The Summit brought together leaders from 55 African Union and 28 European Union Member States.
The EU was represented by the President of the European Commission Jean-Claude Juncker and the President of the Council of the EU Donald Tusk, joined by the High Representative of the EU for Foreign Affairs and Security Policy & Vice-President of the European Commission Federica Mogherini, Vice-President responsible for the EU’s Digital Single Market Andrus Ansip and Commissioner for International Cooperation and Development Neven Mimica. The African Union was represented by the President of the African Union Alpha Condé and the Chairperson of the African Union Commission, Moussa Faki Mahamat.
On the occasion, President Juncker said: “We spoke a lot about young people during this summit. Already today, the majority of African citizens are under 25 years old, and by the middle of this century, one in four people on earth will be African. But this demographic dividend cannot deliver without smart investments. This is precisely why we are going to put our investments in education, in infrastructure, in peace and security, as well as in good governance – all of which will in turn inspire good business environments and create much needed jobs and growth.” Read the President’s full remarks here.
In their political declaration, the European and African leaders set out their joint commitment to invest in youth for a sustainable future. Concretely, they committed to focussing their work on four strategic priorities. On this basis, the European and African Union Commission will put forward concrete projects and programmes within three months.
Mobilising investments for African structural and sustainable transformation
European leaders presented, and African partners welcomed the EU’s innovative External Investment Plan (EIP), which will mobilise €44 billion of private investments for sustainable development and job creation. Special attention will be paid to enhancing entrepreneurship of women and young people. The newly launched Sustainable Business for Africa Platform (SB4A) will allow for structured dialogue with the European and African private sector.
Investing in people through education, science, technology and skills development
The importance of supporting inclusive education and vocational training was highlighted. Leaders also agreed to enhance the mobility of students, staff and academics across the African continent, as well as exchange programmes between Africa and Europe, such as ERASMUS+.
Strengthening Resilience, Peace, security and governance
Leaders will step up their work to enhance peace and security on both continents. In this regard, they will strengthen strategic, political and operational cooperation between the African Union and European Union, in close partnership with the United Nations. Support to ongoing work to fight against terrorism was reiterated, including the Multinational Joint Task Force against Boko Haram, the Joint Force of the G5 Sahel and the African Union Mission in Somalia, to all of which the EU is the biggest contributor.
Managing mobility and migration
European and African leaders reaffirmed their strong political commitment to address the root causes of irregular migration in a spirit of genuine partnership and shared responsibility, and in full respect of international laws and human rights, as well as creating legal pathways for migration. Leaders committed to deepen cooperation on migration and mobility in a joint framework, including a continental dialogue between Africa and Europe.
They stressed the imperative need to improve the conditions of migrants and refugees in Libya, and to undertake all necessary action to provide them with the appropriate assistance and to facilitate their voluntary repatriation to their countries of origin, as well as durable solutions for refugees.
In order to jointly address the dramatic situation of migrants and refugees victims of criminal networks, in particular inside Libya, President Jean-Claude Juncker, and High Representative/Vice President Federica Mogherini, United Nations Secretary General Antonio Guterres and the Chairperson of the African Union Commission Moussa Faki Mahamat agreed to set up a joint EU-AU-UN Task Force to save and protect lives of migrants and refugees along the routes and in particular inside Libya. Furthermore, efforts will be intensified to enhance intra-African mobility and the free movement of persons within Africa.
Preparatory events in the run-up to the AU-EU Summit
The AU-EU Summit was preceded by a number of important events, including civil society, local authorities, economic and social actors, as well as European and Pan-African Parliament.
Young leaders from Africa and Europe gathered at the Youth Summit on 9-11 October in Abidjan, and their work intensified in the context of the AU-EU Youth Plugin-Initiative. They developed a Youth Declaration with concrete proposals to leaders, which have provided a valuable impetus in preparing and shaping the outcomes of the AU-EU Summit. Youth representatives furthermore had the chance to address African and European leaders during the Summit to present these proposals.
The 6th EU-Africa business forum took place on 27 November, where business leaders, investors, innovative start-ups, and young and female entrepreneurs from both continents developed recommendations on how to improve the business and investment climate.
On the day before the Summit, Ministers of Foreign Affairs from Europe and Africa gathered in Abidjan for a Ministerial meeting, co-chaired by the High Representative/Vice-President Federica Mogherini.
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Joint press release of the United Nations, the African Union and the European Union at the 5th AU-EU Summit in Abidjan
Abidjan, Cote d’Ivoire
The United Nations Secretary General, Antonio Guterres, the Chairperson of the African Union Commission, Moussa Faki Mahamat, the President of the European Commission, Jean-Claude Juncker, and the High Representative/Vice President Federica Mogherini met this morning [29 November 2017] in the margins of the African Union-European Union Summit to discuss concrete steps to address jointly the dramatic situation of migrants and refugees victims of criminal networks, in particular inside Libya.
They agreed to put in place a joint EU-AU-UN Task Force to save and protect lives of migrants and refugees along the routes and in particular inside Libya, accelerating the assisted voluntary returns to countries of origin, and the resettlement of those in need of international protection. This action will build on, expand and accelerate the ongoing work done by countries of origin, and the IOM, with EU funding, which allowed so far the voluntary return to their countries of origin of 13 000 migrants since January.
The work of the Task Force will be closely coordinated with the Libyan authorities and be part of the overall joint work that the African Union and the European Union, and the United Nations, will intensify to dismantle traffickers and criminal networks, and to offer opportunities of development and stability to countries of origin and transit, tackling root causes of migration.
The United Nations, the African Union and the European Union agreed to upgrade in a systematic manner their trilateral cooperation and to meet on a regular basis at the highest political level, notably in the margins of the UN General Assembly.
UN chief spotlights importance of AU-EU strategic partnership
Regional, global solidarity must guide collective aim to build peace, dignity, prosperity for all
The importance of regional organizations grows with every decade that passes as they are essential to face the difficult challenges that threaten the world, United Nations Secretary-General António Guterres said Wednesday at the African Union-European Union Summit in Côte d’Ivoire.
“A strong and effective EU and a strong and effective AU are essential pillars of global cooperation for peace and security, development and human rights,” Mr. Guterres told the two organizations’ fifth summit held in the capital, Abidjan. “We must continue to make progress on all simultaneously.”
Welcoming the AU-EU strategic partnership, the Secretary-General expressed the UN’s commitment to support the efforts of these organizations and described how such cooperation takes place in Africa.
Three obvious examples of the importance of trilateral cooperation between the AU, the EU and the UN, are seen in Somalia, the Central African Republic and the Sahel.
“It is exactly ten years since the joint Africa-European Union strategy was adopted and the time has come to strengthen the links between the two continents,” Mr. Guterres said, noting that the two regions can enhance their cooperation in tackling some challenges facing migrants.
“When migration is done in an orderly and regulated way, migrants contribute positively to host countries and countries of origin. We will not put an end to the tragedies in the Mediterranean if we do not create significant opportunities for legal migration,” he said.
These two conditions are essential to effectively combat traffickers and smugglers of migrants.
First is to change the relationship with Africa and establish a new platform of cooperation that recognizes the enormous potential of this continent, and second is to increase joint efforts in conflict prevention and mediation.
Mr. Guterres argued that it is time to provide the appropriate means to regional organizations, including clear and strong mandates, accompanied by an evaluation mechanism and an adequate and predictable funding system.
For instance, the AU and the UN, with EU support, can help the G5-Sahel countries – Burkina Faso, Chad, Mali, Mauritania, and Niger – deal with transnational threats and terrorism.
“We need a force with a mandate that lives up to these threats and sustainable funding,” he said, urging the Security Council to be ambitious in its choice on this issue.
Turning to sustainable and inclusive development in Africa, the UN chief stressed the importance of investing in youth and women’s empowerment.
Following are UN Secretary-General António Guterres’ remarks at the opening of the fifth African Union-European Union Summit, in Abidjan on 29 November:
C’est pour moi un grand plaisir de me retrouver parmi vous pour saluer le partenariat stratégique entre vos deux organisations, un partenariat qui m’est très cher.
En effet, en tant que Premier Ministre du Portugal et Président du Conseil européen, j’ai eu l’honneur de co-présider avec le Président Bouteflika le premier sommet Afrique-Union européenne en 2000. La Déclaration du Caire a jeté les bases du travail conjoint qui se poursuit aujourd’hui.
Je salue l’attention portée à la jeunesse, notamment la recherche d’un développement durable, inclusif et créateur d’emplois pour les jeunes.
Les jeunes sont le moteur de nos sociétés et nous devons les écouter. Il nous faut les mettre au cœur de nos plans de développement, nationaux et internationaux. Répondre à leurs aspirations est essentiel dans une perspective de développement ; mais c’est aussi un élément essentiel pour préserver la paix et notre sécurité collective.
Nous devons changer la relation à l’Afrique et établir une nouvelle plateforme de coopération qui reconnaisse le potentiel énorme de ce continent.
C’est dans cet esprit que j’ai signé, avec Son Excellence Moussa Faki Mahamat, un Accord-cadre pour renforcer notre partenariat de paix et de sécurité et un autre accord sur le développement durable qui va suivre l’année prochaine.
Pour atteindre ces objectifs, nous devons accroître nos efforts conjoints en matière de prévention et de médiation. Mais nous avons aussi besoin d’une coopération accrue pour le déploiement de forces africaines capables d’imposer la paix et de combattre le terrorisme, avec un mandat fort du Conseil de sécurité des Nations Unies.
Il est temps de fournir les moyens appropriés aux organisations régionales, y compris par des mandats clairs et solides, accompagnés d’un mécanisme d’évaluation et d’un système de financement adéquat et prévisible.
L’Union européenne d’ailleurs apporte un soutien politique et financier substantiel, ainsi qu’une expertise et un savoir-faire qui sont des atouts considérables à notre effort collectif.
Dans cet esprit, l’Union africaine et les Nations Unies, avec l’appui de l’Union européenne, peuvent aider le G5-Sahel à faire face aux menaces transnationales et au terrorisme.
Nous avons besoin d’une force dotée d’un mandat à la hauteur de ces menaces et d’un financement pérenne.
C’est pour cela que j’ai invité le Conseil de sécurité à faire preuve d’ambition dans le choix qu’il doit faire sur ce dossier.
L’exemple de l’AMISOM ou les actions conjointes en République centrafricaine sont, avec le G5 Sahel, trois exemples évidents de l’importance de la coopération trilatérale entre l’Union africaine, l’Union européenne et les Nations Unies.
Sustainable and inclusive development is an end in itself. But, lack of development and inclusive government, including poverty, inequality and exclusion, are factors in creating conflict and driving terrorism and violent extremism. Climate change is also an existential threat for some and a multiplier of threats for all. Climate action is the absolute priority of our times. Implementation of the Paris Agreement is a must. National Governments must lead our response, but multilateral cooperation and capacity-building are crucial.
The 2030 Agenda for Sustainable Development and the African Union’s Agenda 2063 are ambitious and mutually reinforcing blueprints for a world of peace, prosperity and dignity for all. A strong and effective [European Union] and a strong and effective [African Union] are essential pillars of global cooperation for peace and security, development and human rights.
In this context, gender equality and women’s empowerment are fundamental. The [European Union] and the [United Nations] recently launched the Spotlight Initiative, an effort to eliminate the global scourge of violence against women. I look forward to working with African Governments to strengthen action on laws and policies, institutions, prevention and services for survivors.
Les récentes images atroces de migrants vendus en Libye nous rappellent l’urgence d’agir. Les migrations présentent des défis, mais aussi des opportunités en matière de développement, de promotion d’un travail décent et d’une collaboration renforcée.
Tous les pays ont le droit et l’obligation de gérer leurs frontières de manière responsable et souveraine. Mais ils doivent le faire dans le plein respect du droit international relatif aux réfugiés, et des droits humains des réfugiés et des migrants.
Quand les migrations se font de manière ordonnée et régulière, les migrants contribuent de manière positive aux pays hôtes et aux pays d’origine. Nous ne mettrons pas fin aux tragédies en Méditerranée si nous ne créons pas d’opportunités significatives de migration légale.
Il faut aussi que les politiques de coopération pour le développement contribuent à offrir aux gens le choix de trouver un avenir digne chez eux. Ces deux conditions sont essentielles pour combattre effectivement les trafiquants et les passeurs, les criminels les plus horribles de notre temps.
Regional organizations are essential to facing the very difficult challenges that threaten us. Those who drafted the United Nations Charter showed great wisdom and prescience when they devoted Chapter 8 to the role of regional cooperation. The importance of regional organizations grows with every decade that passes. Regional and global solidarity must be our guide as we draw on our collective efforts to build a life of peace, dignity and prosperity for all.
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Manufacturing is a critical component for job creation
Manufacturing is a critical component of the South African economic policy and also important in creating and ensuring that there are jobs in the economy.
This was said by the Minister of Trade and Industry, Dr Rob Davies during a briefing to the portfolio committee on Trade and Industry on the state of manufacturing, World Trade Organisation and the Industrial Policy Action Plan (IPAP) in Parliament.
According to Davies, though the production of digital and changes in manufacturing technologies has led to the decline in the sector, there was still improvement and a very strong linkages and multiplies to the service sectors that still sustain jobs in the economy.
“Though the sector has many challenges and the economy is not performing as well as it out to be performing, the performance in manufacturing sector is clearly doing a lot better than it would have been if we haven’t been doing the things we have been doing over the last few years especially the intervention in the automotive sector, clothing and textile, agro-processing, film and Business Process Outsourcing (BPO) and others,” said Davies.
Davies reiterated that there was a need to bring about change in the structural characteristics of the South African economy, especially in the manufacturing sector, as well as in the patterns of ownership of participation and inclusion in it. He said government will not be able to achieve high level of more inclusive economic growth as long as we are producers and exporters of primary commodities.
‘We will need to develop a much more tightly coordinated and supportive environment premised on policy and programmatic certainty, if we are to convince the private sector to invest heavily, create jobs and ignite inclusive growth,” he said.
He said tools and programmes like the Black Industrialists and Public procurements have addressed some of the weaknesses and challenges in the sector, and seen important gains in manufacturing and localisation.
Minister Davies pointed out that there are many issues that have been cited around the question of investment confidence and growth in the country and how it has been addressed. He said government has been working on sectoral levels and with the sector to try to build confidence particularly with manufactures.
Davies also said the key focus for government moving forward will be localisation, and that the department’s concern is to always try to do what it can to exert influence and not take decision which will undermine localisation.
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South-South cooperation offers major opportunities to support vulnerable countries – UN official
As the most vulnerable countries continue to face serious development challenges, South-South cooperation offers enormous opportunities and potential to effectively support them in accelerating progress on implementing globally agreed goals, a senior United Nations official has said.
This vital message was delivered to delegations gathered in Antalya, Turkey on 27 November for the opening of the Global South-South Development Expo 2017 by Fekitamoeloa Katoa Utoikamanu, the UN High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS).
“These are all countries faced with complex and unique development challenges which lend themselves to exploring how and where we can maximize South-South cooperation and leverage global partnerships to support countries’ efforts toward sustainable and inclusive futures,” said Ms. Utoikamanu, who advocates on behalf of 10 billion people in the world’s most vulnerable countries.
She is participating in the 2017 Global Expo along with other senior UN officials, government ministers, national development agency directors, and civil society representatives, who have gathered to share innovative local solutions and push for scaling up concrete initiatives from the global South to achieve the 2030 Agenda and its 17 Sustainable Development Goals (SDGs).
“The central promise of the 2030 Agenda is to ‘leave no-one behind,’ and thus is about addressing poverty, reducing inequality and building a sustainable future of shared prosperity,” explained Ms. Utoikamanu. “But it is already clear that these noble Goals will be elusive if the 91 countries my Office is a voice for remain at the bottom of the development ladder.”
As such, she said, South-South collaboration has led to increasing trade between and with emerging economies, investors, providers of development cooperation and sources of technological innovations and know-how. “This trend is confirmed by trade preferences for [least developed country products], enhanced trade finance opportunities, but also innovative infrastructure finance emerging,” noted Ms. Utoikamanu.
“The complex and pressing challenges the vulnerable countries experience demand that we further strengthen and leverage South-South cooperation,” added Ms. Utoikamanu. “South-South cooperation is not an ‘either-or’ it is a strategic and complementary means of action for the transfer and dissemination of technologies and innovations. It complements North-South cooperation,” she emphasized.
This week’s gathering will focus on a number of issues, including how to transfer science, technology and innovation among developing countries.
With that in mind, Ms. Utoikamanu said that to a large extent, the future will be determined by the abilities to leverage science, technology and innovation for sustainable growth, structural transformation and inclusive human and social development.
“It is proven that innovative technologies developed in the South often respond in more sustainable ways to the contextual needs of developing countries. Last, but not least, this is a question of cost,” she said.
In all this, the Technology Bank for the Least Developed Countries has a major role to play in boosting science, technology and innovation capacity. “It must facilitate technology transfer and promote the integration of [least developed countries] into the global knowledge-based economy.”
While countries in the South continue to deepen cooperation to achieve the SDGs, the trend of declining official development assistance (ODA) is cause for great concern. ODA remains a crucial source of external financing for the vulnerable groups of countries UN-OHRLLS represents,” she said.
“OHRLLS is committed to working with countries both of the North and the South to deliver on the 2030 Agenda and above all its pledge of leaving no one behind,” concluded Ms. Utoikamanu.
Technology Bank for World’s Poorest Countries Set to Start Operations in 2018
The Council of the Technology Bank for Least Developed Countries concluded its inaugural meeting in New York on 21 November 2017. The Council members met to discuss and adopt the programme of work and budget for activities in 2018 .
“The Technology Bank has tremendous potential to tackle one of the great new divides of our times – access to science, technology and capacity to innovate. It will bring on board and coordinate expertise from the entire UN System to support the world’s poorest countries across the whole spectrum of science, innovation and technology.
“The full operationalization of the Technology Bank is the first Sustainable Development Goal target (17.8) to be achieved,” said Ms. Fekitamoeloa Katoa ’Utoikamanu, Under-Secretary-General, High Representative of the Secretary-General for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States, and the Secretary-General’s representative on the Council.
“The Technology Bank is a new entity. It fits within the spirit of the Secretary-General’s overall reform efforts to adapt the United Nations to better support the implementation of the SDGs on the ground.”
Council members, meeting in New York, agreed that in 2018 the Technology Bank will focus on preparing a number of STI reviews and technology needs assessments in the world’s poorest countries. The Institution will also work in collaboration with other UN entities on promoting digital access to research and technical knowledge.
Hosted by the Government of Turkey, the Technology Bank will be located in Gebze where the premises of the Bank are currently under construction and are expected to be inaugurated in the spring of 2018.
The Bank is expected to improve the use of scientific and technological solutions in the world’s poorest countries and promote the integration of these nations into the global knowledge-based economy. In 2011, the Istanbul Programme of Action for the least developed countries called for the establishment of a technology bank dedicated to least developed countries.
This long-standing priority was confirmed in the 2015 Addis Ababa Action Agenda on Financing for Development and in the 2030 Agenda for Sustainable Development, Sustainable Development Goal target 17.8. In December 2016, the United Nations General Assembly adopted resolution 71/251 on Establishment of the Technology Bank for Least Developed Countries.
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African trade blocs urged to adopt pact and ease commerce
Members of African regional trading blocs have been asked to hasten implementation of the Trade Facilitation Agreement (TFA) to reduce cross border trade costs in a bid to grow economies.
Mr Erastus Mwencha, the former Deputy Chairman of the Africa Union Commission, said the efficiency of trade hinges on the support of regional blocs such as the East African Community (EAC), the Economic Community of West African States, and the Southern African Development Community (SADC), in adopting a more open stance on trading with each other.
Mr Mwencha said the TFA would bring about new markets and cost reduction gains. “We must minimise cross border costs in Africa,” said Mr Mwencha.
“When the trade facilitation agreement was introduced globally, it showed that if it is implemented optimally there will be a cost reduction of up to 14 per cent. This will add to the global trade value of about $1 trillion.” Mr Mwencha was speaking at the Kenya School of Monetary Studies during the Second World Customs Organisation East and Southern Africa Regional Conference in Nairobi last week.
It was hosted by the World Customs Organisation Regional Training Centre (WCO RTC Kenya).
Delegates from the Common Market for Eastern and Southern Africa (Comesa), the Intergovernmental Authority on Development (Igad) and SADC attended the conference where they discussed the impact and the implications of the TFA.
The United Nations Conference on Trade and Development (UNCTAD) was represented by Dr Mukhisa Kituyi, its Secretary General, who elaborated on the steps they were taking to accelerate regional development through cross border trade facilitation.
Delegates from Belgium, Ethiopia, South Africa, Malawi, Rwanda, Australia, Mauritius, Botswana, the Comoros, Zimbabwe, Madagascar, Uganda and Tanzania also attended the conference.
Mr Mwencha said implementing the TFA will also help lower the high cost of doing business within Africa, “When African countries trade among each other, for example, the tariff is about 12 per cent but when Africa trades with the rest of the world, the tariff drops to eight per cent. Implementing the TFA addresses these challenges,” he said.
To make this happen, he said, handling and logistics tied to cross border trade should be simplified.
“This includes harmonisation of customs procedures, deepening standards of IT innovation and utilisation to enforce the TFAs and regional trading agreements in the East and Southern Africa region.”
Ms Beatrice Memo, the Regional Training Centre Kenya Chair and Kenya Revenue School of Administration Commissioner, said African countries have complimentary synergies in terms of their competitive advantages which they should leverage to grow their economies.
“In light of this, we need to open our borders to facilitate the growth as customs is now considered a global village. It is for this reason that we co-host this conference with a view of sharing experiences and finding a solution for the African market challenges,” said Ms Memo.
African countries are also exploring closer ties between regional trade blocs through the proposed Tripartite Free Trade Area (TFTA), which brings together three business regional blocs of Comesa, EAC and SADC.
Objectives of TFTA are to promote economic and social development of the region, create a large single market with free movement of goods and services, and boost intra-regional trade.
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tralac’s Daily News Selection
Updates from the 5th AU-EU Summit in Abidjan, Côte d’Ivoire:
UN Secretary-General António Guterres: remarks at the Opening of the 5th African Union-European Union Summit
Antonio Tajani, European Parliament President: address at the African Union-European Union Summit
The European Investment Bank (EIB) has formally agreed financing to support more than EUR 230 million of private sector investment across Africa. The new initiatives, backed by the European Union’s long-term lending institution, will enhance access to credit by African smallholders and microenterprises, increase investment in health and education targeting low-income families across West Africa, foster growth of African digital and technology, start-up companies and promote financial inclusion of rural communities in Ethiopia. [EU Bank grants its first loan to African Export Import Bank of EUR 100m to support trade, ahead of AU-EU Summit in Abidjan]
The opening ceremony of the Joint AU-EU Ministerial Meeting was held on 28 November 2017 in the presence of AU Commissioners and high officials from the AU and the EU. According to Deputy AUC Chairperson H.E Mr. Kwesi Quartey, “it is only through good governance and democracy and the rule of law that our strategic partnerships can render the relationship truly beneficial, notably that with the EU, can we achieve and deliver on these priorities”.
Europe and Africa are in business! Investing in opportunities at 6th EABF
Speaking at the 6th EU-Africa Business Forum that took place in Abidjan, Côte d’Ivoire on 27 November 2017, Commissioner for International Cooperation and Development Neven Mimica said: “Improving the conditions for investment in Africa is essential to create jobs and promote sustainable development. The EU is committed to team up with Africa and has set up a 44 billion euros External Investment Plan to unlock the untapped potential in sectors such as infrastructure, digital transformation and trade”.
Speech by President Antonio Tajani at the closing ceremony of the Parliamentary Summit
EU-African Union summit to debate alleged Libyan slave trading (The National)
Kenya adopts visa on arrival for Africans (New Times)
“The free movement of people on the continent has always been the cornerstone of African brotherhood and fraternity. Today, I am directing that any African wishing to visit Kenya will be eligible to a visa at the port of entry. To underscore Kenya’s commitment, this will not be done on the basis of reciprocity,” President Uhuru Kenyatta said during Kenya’s presidential inauguration in Nairobi. [Cotu hails Uhuru’s directive on free movement for E. Africans (Daily Nation)]
Kenya set to build coast-to-centre highway to boost Africa trade (Reuters)
Kenya on Wednesday signed a $620 million agreement to build a 530 km (329 mile) highway from its east coast to the centre of the country, part of a campaign to boost its role as a regional trade hub. A consortium including a unit of South Africa’s Group Five and the Development Bank of Southern Africa will work with the state.
Kenya: Country hopes to upscale annual fish output from 120,000 to 430,000 metric tonnes (Standard Media)
Agriculture Cabinet Secretary Willy Bett said in a gazette notice last week the country plans to increase its tuna fish production that currently stands at 20 per cent, which is the second largest in the world, to tap into the $2 billion (Sh200 billion) global market.
Region in joint efforts to develop cross-border trade (New Times)
Rwanda, Tanzania, Uganda, Burundi and the Democratic Republic of Congo officials have committed to work together in addressing challenges hindering cross-border trade in the region. The commitment, which is expected to help thousands of small-scale cross-border traders – especially women – to carry out their daily business smoothly, was made on Monday in Kigali during a regional advocacy meeting on cross-border trade.
Burge: Nigeria Must Tackle Barriers to Trade (ThisDay LIVE)
“We must not overlook the strength of private sector investment because it is not looking for political patronage, it is just looking for trade for commercial growth and that is what we must find ways of ensuring that interested innovative capital meet interested innovative propositions. If you put that together, you would see tremendous growth. One of the things I am here to do in Nigeria is talk to senior Nigerian business men.” [Chief executive of the Commonwealth Enterprise and Investment Council, Mr. Richard Burge, spoke about the benefits of CWEIC to members in an interview while in Nigeria].
Nigerian, Moroccan stockbrokers sign MoU on inter-connectivity (Vanguard)
Ashon’s Chairman, Ezeagu explained that the MoU was to bring the relationship between the NSE and its Casablanca counterpart enhanced professionalism and accelerated market development in both exchanges. Ezeagu noted that the MoU had provided a framework through which the two professional bodies could strategize in order to realize the objectives of collaborative efforts.
DG Azevêdo details process for MC11 as preparations enter final stages (WTO)
“MC11 is a very important moment. It is an opportunity to: take stock of the significant progress that we have made; deliver wherever we can; and set the direction for our future work. Precisely how far each issue proceeds will depend on the dynamics of each negotiation.”
1 in 10 medical products in developing countries is substandard or falsified (WHO)
An estimated 1 in 10 medical products circulating in low- and middle-income countries is either substandard or falsified, according to new research from WHO. This means that people are taking medicines that fail to treat or prevent disease. Not only is this a waste of money for individuals and health systems that purchase these products, but substandard or falsified medical products can cause serious illness or even death.
Today’s Quick links: 2018 will be the year African fintech takes off (GTR) China, Africa to tap potential of economic partnership (Xinhua) Families should take a lead role in curbing gender-based violence (UNECA) |
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Foreign Affairs Ministers of Africa and Europe convene in Abidjan to brainstorm on joint development issues
The opening ceremony of the Joint AU-EU Ministerial Meeting was held on 28 November 2017 in the presence of AU Commissioners and high officials from the AU and the EU, ahead of the 5th African Union-European Union Summit to be held on 29 and 30 November 2017 in Abidjan, Cote d’Ivoire.
“The African Union (AU) and its Member States strive to create economic opportunities through regional integration, trade facilitation, and provision of an enabling investment environment,” said H.E Mr. Kwesi Quartey, Deputy Chairperson of the AU Commission. “We strive to enhance societal and political resilience on the Continent for the benefit of current and future generations,” he added.
In his opening remarks, Mr. Quartey began by thanking the Government and people of the Republic of Cote d’Ivoire for hosting the Summit. He also thanked the European Union Delegation for the significant efforts they invested in the preparations, deliberations and for the cooperative approach they have demonstrated throughout the process.
According to Deputy Chairperson Quartey, “it is only through good governance and democracy and the rule of law that our strategic partnerships can render the relationship truly beneficial, notably that with the EU, can we achieve and deliver on these priorities”.
He further recalled that between Europe and Africa, the geographic proximity and long historical relationship, could be a great strategic advantage to the joint AU-EU partnership. He however expressed satisfaction to the significant progress made by both continents over the past two decades since this partnership was forged.
Speaking earlier while chairing the ministerial session, H.E Mr. Mamadi Toure, Foreign Affairs Minister of the Republic of Guinea, transmitted greetings from his President and Chairperson of the African Union, Professor Alpha Konde to the President of the Republic of Cote d’Ivoire, H.E. Alassane Dramane Ouattara. He thanked the Government and people of Cote d’Ivoire for their warm welcome and for the excellent measures taken to facilitate the successful holding of the 5th AU-EU Summit.
He underscored the need for the AU-EU to strengthen their partnership and share best practices with the view to face the many challenges of the world and better the lives of their respective populations.
Minister Mamadi Toure highlighted the theme of the summit: “Investment in Youth for Accelerated and Inclusive real growth and sustainable development” underlining that this shows the increased interest of the leaders from both continents to invest in the youth.
He highlighted the joint issues to be discussed including job creation; skills development; peace and security; governance including democracy, human rights, migration and mobility; investment and trade among others.
H.E Mrs. Frederica Mogherini, The High Representative of the Union for Foreign Affairs and Security Policy and Vice-President of the European Commission, on her part said the summit will be a key moment and opportunity to strengthen political and economic ties between the two continents as well as exchange views on investing in the youth for a sustainable future.
She said the summit will provide a platform for both parties to take stock of the achievements and challenges regarding the implementation of the priority areas stipulated in the joint strategic partnership.
Mrs. Mogherini announced that leaders from the African Union and the European Union member States will come together on 29 November 2017 to listen to the calls of youth and give concrete answers to the issues hindering youth development in both continents. She further stated that the African and EU leaders will discuss the future of EU-Africa relations.
Meanwhile, the Minister of Foreign Affairs of Cote d’Ivoire, H.E Mr. Marcel Amon-Tanoh welcomed all the participants of the joint AU-EU Ministerial meeting to Abidjan and wished them successful deliberations during the sessions.
Background
At the African Union Summit held in Kigali, Rwanda from 10 to 18 July 2016, Côte d’Ivoire was designated to host the 5th Summit African Union-European Union. This Summit serves as a platform for dialogue between African and European countries to boost the partnership between the two Parties and is held alternately on each continent.
This Summit is the third of its kind to be held on the African continent and the first of its kind in sub-Saharan Africa. Participants will discuss progress made in the implementation of the 2014-2017 action plan adopted at the previous Brussels Summit and the way forward for defining the Africa-EU Joint Strategy in the light of the new issues facing both continents.
The challenges of this Summit are important for both Africa and Europe as it will focus on the common challenges facing both continents, such as peace and security, inclusive and creative growth as well as employment for young people.
Joint African Union-European Union Ministerial Meeting
Remarks by H.E. Mr. Kwesi Quartey, AUC Deputy Chairperson
Let me begin by thanking the Government and people of the Republic of Cote d’Ivoire for hosting the 5th African Union-European Union Summit. Thank you for the excellent work put into the organization of this Summit and ensuring we have a serene and focused environment to conduct successful deliberations for the sake of our African youth.
I also thank the distinguished foreign ministers of Africa and Europe for taking the time out of their busy schedules to convene here for deliberation on our joint development, as well as peace and security, plans for the coming years.
I also thank the European Union Delegation for the significant efforts they invested preparations, deliberations and for the cooperative approach they have demonstrated throughout the process. This is a token of the growing strength of our relationship. The African Union is committed to deepening this relationship in a way that is mutually beneficial to both continents.
The 5th AU-EU Summit organized under the theme: “Investing in Youth” is being held three years after the 4th Summit held in Brussels, in April 2014, where we adopted the Africa-EU partnership roadmap 2014-2017, under the theme: “Investing in People, Prosperity and Peace”.
This reinforces our theme of the year for 2017, namely “Harnessing the demographic dividend through investments in youth”, as well as our efforts to capitalize on Africa’s demographic buldge and invest in our youth to derive the dividend from this investment. Africa has the world’s largest proportion of young people. By 2100, the African young working population is projected to rise by 2.1 billion, thereby increasing Africa’s share in the world’s working age population to over 40 percent compared to the current 12 percent. This can be a crisis, or an opportunity. We intend to make it an opportunity.
Estimates show that capitalizing on the African demographic dividend could potentially add 500 billion dollars per year to its GDP. The real annual GDP per capita on the continent can increase up to 2000 dollars by 2050 compared to the current average of 600 dollars. This will represent a potentially significant improvement in the lives of the average African household. But this can happen only if we invest in education and training. This is the only way to develop human capital that is value which creates and increase this value. This is the classic definition of capital developed.
This summit presents an opportunity for our Continent and its young people. We can no longer pay lip-service to dealing with the myriad of issues facing our youth. The AU and its Member States strive to create economic opportunities through regional integration, trade facilitation, and provision of an enabling investment environment. We also strive to enhance societal and political resilience on the Continent for the benefit of current and future generations.
It is only through good governance and democracy and the rule of law that our strategic partnerships can render the relationship truly beneficial, notably that with the EU, can we achieve and deliver on those priorities. We believe that with our partnership with the EU, we can achieve and deliver on these priorities. Between Europe and Africa, our geographic proximity and long historical relationship, could be a great strategic advantage.
We have made significant progress in our partnership over the past two decades since it was forged in 2000. We have reinforced the capacities of conflict resolution and counter-terrorism. But challenges, undoubtedly remain. The slave trade is rearing its ugly head once again. We need to address this phenomenon totally and completely. We urge the ICC to take an interest in this development. Ensuring that such support is made predictable and sustainable requires the cooperation of key world actors, notably the UN and the EU.
We have also managed to make significant contributions to creation of economic opportunity through mobilizing investments in agriculture, energy, infrastructure, industry, ICT and other vital sector for Africa’s economy. We are encouraged by Mme Mogherini’s statements that the EU aims to mobilize over 40 billion euros in foreign direct investment in Africa over the coming years. We would like to be consulted on how this development is utilized. On this point, we would like to commend the German Presidency of G20, for its compact with Africa. Funding education and training for every African child could be a real game-changer and could be the solution to the migration phenomenal. We agree that the enabling investment environment is a key ingredient to realize those targets that can stand to improve the livelihoods of our youth.
We have worked together to enhance accession to, and domestication of, AU governance instruments, which stand to enhance stability and build strong institutions, not only for the benefit of Africa but the world at large. We also look forward to enhance the mobility and migration dialogue that should inform our policy making. In that regard, our focus will be on the best interest of young people in Africa and Europe through expanding their professional opportunities.
At this point, I would like to thank the Senior Officials comprising representatives of member states of the African Union and European Union and both commissions for the pain-staking deliberations they have put into finalizing the outcome documents before this meeting today for adoption. Using the Joint Africa-EU Strategy (JAES) as the base, our focus for the coming years will continue to be on four key priority areas of cooperation: 1. Investing in people – education, science, technology and technology and skills development, 2. Strengthening resilience, peace, security and governance, 3. Mobilizing investments for Africa’s structural transformation, as well as 4. Migration and Mobility.
Finally, I wish us all a productive meeting. I believe that the rich and heartfelt discussions we will have will undoubtedly forge stronger bonds between Africa and Europe and result in a feasible and robust strategy to guide our partnership in the years to come.
I thank you.
Opening remarks by High-Representative/Vice-President Federica Mogherini
This is the first Ministerial Meeting we have since 2014 and the last Ministerial Meeting we had was in Brussels just before the last Summit.
I believe – and I start with something concrete to put on the table – that real partners, brothers and sisters as we are, deserve to meet a bit more regularly and often. And this is why I am very pleased that in our draft declaration, we make reference to regular annual meetings at Ministerial level, because we have work to do together.
It is important that we – as strategic partners – work together on a regular basis; that we are meeting more frequently, ideally annually as I said, to take forward the decisions made at the Summit, to discuss any urgent issue that come up. And actually we are seeing the developments globally require us to come together more often to shape the global agenda or to react to the global agenda or to regional issues that we share.
I am pleased that we have taken this up in our political declaration and that, hopefully, this will be adopted by the Summit tomorrow.
I see that we have a level of participation today at Ministerial level and tomorrow at the Summit, that is somehow a record level of participation. I think this reflects the political importance we attach to this event, and at the same time, we have a very concrete output-oriented work and discussion ahead of us, that – I believe – reflects the need to get to business and do things together on an even more intense basis.
Africa and Europe have never been so much linked as now. We are only 14 kilometers apart and finally, this is reflected in the way in which we take our political partnership seriously, in our reciprocal work.
Our strategic interest on both sides is today for real, that of deepening and strengthening what is a longstanding partnership and relationship but with a new sense of ownership and belonging. I think that both in Africa and in Europe, it is self-evident these days that being it on security, on economy, on climate, on migration, on all the issues we have on the top of the agenda internally, our partnership and our common work can bring results in a way that otherwise separately, we would not achieve, neither in Europe nor in Africa.
I think that the basis for this new partnership as we have defined it in the preparation of this Summit is, first of all, a partnership among equals, a respectful dialogue and cooperation, based on mutual ownership and mutual respect, and on the principle of shared responsibility to which many of you already referred.
If you think of what we managed to achieve in this last couple of years, together and only together, on the global level, you can think of the Agenda 2030, the Sustainable Development Goals or the Paris agreement on climate change, that would not have been there, if Africa and Europe were not coming together on the global scene.
If you look at our membership, we have 82 of the 193 countries in the United Nations. This means that if you put together Europe and Africa, we definitely can shape and determine the global agenda for good – and I say for good, because we are living times of complication and challenges and uncertainties. Times where especially multilateralism and multilateral institutions are put into question, and both in Africa and for sure, I can tell you, in the European Union, deep in our DNA, there is the strong belief that multilateral institutions and the multilateral system, starting from the U.N. system, are at the core of any rules-based global order that is sustainable.
We often refer to sustainable development. It is time to refer also to sustainable security and to have an inclusive approach that allows our societies to prosper in a sustainable manner.
We share interests, challenges and concerns, and I believe that with this Summit, we will also share solutions to face the challenges of today. I will not go into details, I think that this is for the debate today and for the Summit tomorrow, but a lot of work has already been prepared and done in a very relevant manner. I will just mention the main headlines where our strategic partnership and cooperation is vital, both for Europe and for Africa.
First of all, peace and security. I know that the European Union is often perceived as an economic player. We are increasing the level of cooperation on peace and security, we have always been there for Africa in this. But, I think that today, the security challenges we are facing, starting from radicalization and terrorism to trafficking and criminal organisations, are binding us together, and, there are only common solutions if you want to have effective solutions.
Economy – this is why we have put in place this [European] External Investment Plan that will mobilise private investments in the most fragile areas of the [African] continent.
This is probably what some refer to as the “Marshall Plan for Africa”. We do not like the idea of a “Marshall Plan for Africa”. We like the idea of a partnership that mobilises resources together and this is exactly what we are putting in place. But, I would like to remind us all that the European Union and its Member States already mobilise more than €20 billion every single year, when it comes to Africa and partnership with Africa. With this new External Investment Plan, we will bring in the private sector and try to have investments that create good and sustainable jobs especially targeting our young people – your young people – and improve the business environment.
Climate change – I know this comes always at last, but I think that, both in Europe and in Africa, we realise that this is a common challenge we face and this is reality on which we need to act together, fast and globally.
Governance – where I believe we have to listen to each other and to find good solutions, sustainable solutions, but also solutions that guarantee democracy, rule of law, human rights and an adequate role for youth and women in our societies. Youth is the main centre, the main objective of our [African Union-European Union] Summit; tomorrow, we will be meeting the youth representatives. So, all of you, and your Heads of State or Government are invited to join myself and Moussa Faki [Mahamat] in meeting them, to listen to what kind of solutions – not only for the future but also for the present – they have to suggest for our decision-making. I believe this is extremely important.
And, last but not least, the issue of migration and mobility. I say “last but not least” because this is not a Summit on migration. This is a Summit on partnership and political and economic common work. But, we cannot close our eyes on the common responsibility we have, to protect lives, save lives, open also regular channels for migration and mobility, to offer economic alternatives to our young people in Africa.
But, first and foremost, to dismantle the criminal networks that are making money out of, sometimes, slavery – the images we have seen are shocking. But, as an Italian, I can tell you they are not new.
So, I think that we have, finally, the possibility together – African Union, European Union, Member States of the two Unions – to come together and solve this problem once and for all, in a sense of partnership and cooperation and respect for human dignity and international norms.
This is something that, as European Union, we have been doing together with our Libyan friends, but most of all with the UN agencies that are working now in Libya, thanks to the European Union support: the IOM [International Organisation for Migration] and the UNHCR [United Nations High Commissioner for Refugees]. We count on the African friends, brothers and sisters, to join forces with us, with the UN system, to save lives of our brothers and sisters, who do not deserve to be in conditions that are inhuman.
We are there for this and we would expect this Summit to send a very strong message of cooperation and partnership. Because I really believe that, if Africa and Europe come together to face this problem, for real and seriously, we can show an excellent example for the rest of the world. Helping also the UN system to define Global Compacts for migration and refugees, that are at the level of the human rights standards that we both want to see for our people.
With that, Mr. [Moussa Faki Mahamat] Chairperson, I thank you very much and I wish us all an excellent stay here in this wonderful country. Thank you.
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EU Bank financing for young entrepreneurs and private sector, as well as key services across Africa announced alongside AU-EU summit
Ahead of the fifth African Union-European Union summit taking place in in Abidjan this week the European Investment Bank (EIB) has formally agreed financing to support more than EUR 230 million of private sector investment across Africa.
The new initiatives, backed by the European Union’s long-term lending institution, will enhance access to credit by African smallholders and microenterprises, increase investment in health and education targeting low-income families across West Africa, foster growth of African digital and technology, start-up companies and promote financial inclusion of rural communities in Ethiopia.
In addition to this:
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The EIB has also signed its first transaction with the African Export Import Bank (Afreximbank) for EUR 100 million to support trade-related investments and projects between Europe and Africa.
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Major financing of EUR 35 million from the EIB was also agreed with the Côte d’Ivoire government to modernise the country’s water supply networks. This comes alongside grant support from the European Commission and co-financing from the French Development Agency (AFD). The project will supply drinking water to an expected 700.000 people.
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The EIB will commit up to EUR 15 million for SME support via the Maghreb Private Equity Fund The Fund will target primarily growth capital investments in small and medium-sized private companies in Tunisia, Morocco, Algeria and Egypt, covering sectors like healthcare and pharmaceuticals, consumer goods, manufacturing, retail and financial services, transportation and logistics, agro-industry, education and information technology.
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And a new agreement between the European Commission and the EIB, also signed in Abidjan, will extend the reach of reliable and clean electricity via the Senelac programme to another 55,000 people living in one of the poorest regions of Senegal.
Werner Hoyer, President of the European Investment Bank said: “The EIB, as the EU Bank, is committed to supporting new investment in Africa that unlocks economic opportunities, creates jobs and tackles a changing climate. As African and European leaders gather in Abidjan, we are pleased to confirm support for fresh investment across this continent that will support priority sectors, improve provision of key services for the most vulnerable and ensure a better future for generations of young women and men.
“The broad range of new investment which we have agreed this week reflects the European Union’s policy priorities and shows the unique engagement of the EU Bank in Africa. These new contracts would not be possible without the hard work and professional engagement of our partners across this vibrant continent. The EIB is working alongside its fellow EU institutions to promote sustainable growth, foster innovation and create the new jobs that will benefit people living in Europe and Africa alike.”
EIB Vice-President Ambroise Fayolle, responsible for Development said: “At the EIB we are now doubling our efforts to find even better ways to target what needs to be done in term of productive investments that generate jobs in Africa and support its sustainable development. That means supporting key infrastructure – such as the energy and water projects announced here in Abidjan – as well as fostering innovation and small businesses.
“We know that by 2050, Africa’s population may hit 2.4 billion of predominantly young people. That is why we are pushing initiatives like Boost Africa for innovative start-ups, in partnership with the African Development Bank and the European Commission, as well as the new financing for microenterprises and SMEs such as we have signed this week.”
The fresh EIB financing for microenterprise and SMEs includes both long-term loans and equity financing totalling more than EUR 55 million. This will support an expected EUR 230 million of investment by partners in West and East Africa.
Supporting vulnerable communities in Africa
New cooperation with West African partners will benefit people in the most vulnerable communities in the region.
A joint financing initiative managed in Ghana and the Côte d’Ivoire by Oasis Capital Ghana will help to support small and medium-sized enterprises in a range of sectors, including health and education, and create jobs for low income populations in the two countries.
A new lending programme targeting agricultural communities, in partnership with ADVANS Côte d’Ivoire, will provide technical support and new microfinance financing for smallholders across the country. This will include support to address specific challenges faced by cocoa producers.
The EIB will also support private equity investment across Ethiopia though the new USD 100 million Cepheus Growth Capital Fund that will increase financing for companies all over Ethiopia involved in manufacturing, consumer goods, agriculture and agro-processing and strengthen employment opportunities for displaced people. This represents the EIB’s first backing for an Ethiopia-focused fund and one of the several engagements with a single-country private equity fund in Africa by Europe’s long-term lending institution.
Strengthening financial inclusion in Africa
The EIB also confirmed backing for the MBirr mobile banking platform that will help to enhance financial inclusion in Ethiopia, including facilitating the ability for financial institutions to reach their customers in remote regions and assisting with the electronic delivery of social payments to vulnerable communities including farmers threatened by drought.
New cooperation with microfinance partners in Senegal and Mali will strengthen financing for entrepreneurs and microenterprises in the region and unlock additional support from international and local investors. These are the first loans under the West Africa Microfinance Facility – namely EUR 4 million for MicroCred Senegal and EUR 4 million for MicroCred Mali. They are financed under the Investment Facility, managed by the European Investment Bank.
Ensuring African entrepreneurs can develop 21st century companies
In addition, in Abidjan the EIB signed a new commitment of EUR 10m in Partech Africa, a new initiative expected to unlock a total of EUR 100m of new financing for innovative and technology-focused start-ups across Africa. This will include backing young entrepreneurs developing innovative business models at early stage, in sectors such as fintech, consumer online services, mobility, enterprises services, health-tech and online service providers , active in both English-speaking and Francophone Africa.
Overcoming trade finance challenges
The EIB’s first, landmark agreement with the African Export Import Bank (Afreximbank), will involve a seven-year finance facility for EUR 100 million. The loan will finance trade-related long-term eligible investments and projects in Sub-Saharan Africa. The eligible investments will be directly financed by the borrower or, in the case of loans for SMEs, indirectly through local commercial banks in relationship with Afreximbank.
Connecting people in Senegal’s poorest region
The Programme signed by the European Commission and EIB in Abijdan this week concerns the upgrading and modernisation of the electricity transmission and distribution network in Senegal. It involves connecting several currently isolated networks as well as rural electrification in the Casamance region, one of the poorest in the country facing a particular migration challenge. The Programme is part of the PNUER (Programme National d’Urgence d’Electrification Rurale) programme developed by the Government of Senegal and the PASE (Projet d’Appui au Secteur de l’Electricité) project financed by the World Bank.
This part of the programme is thanks to a EUR 12.8 million EU grant via the AfIF (African Investment Facility) blending facility of the EDF (European Development Fund).The EU has identified rural electrification as an essential factor to foster agricultural development and food security, The operation thus supports EU priorities for the country and contributes to improving quality of life and reducing poverty in Senegal. The electrification of Casamance through the Programme also complements another project financed by the EIB to bring through an electricity interconnection, energy to Senegal from the Republic of Guinea’s hydropower plant of Kaleta.
Providing drinking water and modernising supply for thousands in Côte d’Ivoire
This project will support the government of the Côte d’Ivoire in its efforts to improve access to drinking water, in line with the Sustainable Development Goals. (SDGs). At the same time it will have a major public health impact benefitting 700.000 people with 300.000 others connected for the first time to the modernised network.
Supporting the Venture Capital Market and SMEs in Europe’s Southern Neighbourhood
Maghreb Private Equity Fund IV is managed by AfricInvest. The EIB investment is contributing to the development of the North African private equity industry that was severely affected by the uncertainty that followed the events of 2010-2011. The project falls under the Risk Capital Facility for the Southern Neighbourhood countries, financed by the Bank and the European Union.
Background
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It is the world’s largest international public bank. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB has been active as an investment bank in Africa since 1963 with around EUR 25 billion invested in more than 1300 private and public sector projects – all in the delivery of the EU’s policy goals. Over the last five years the EIB has provided more than EUR 11.4 billion for new infrastructure and private sector investment across Africa.
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Europe and Africa are in business! Investing in opportunities at 6th EABF
Business leaders, investors, innovative start-ups and young and women entrepreneurs from Africa and Europe met at the 6th EU-Africa Business Forum that took place in Abidjan, Côte d’Ivoire on 27 November 2017.
High level political participation at the Forum began with HE Andrus Ansip, Vice President of the European Commission; H.E Victor Harrison, Commissioner for Economic Affairs for the African Union Commission (AUC) and HE Alassane Ouattara, President of the Republic of Côte d’Ivoire. The Forum will formally close in the presence of HRVP, Federica Mogherini, High Representative for Foreign Affairs and Security Policy/Vice President of the European Commission. High-profile European and African representatives from private sector were also present to lead discussions.
The Forum takes place in the context of the EU’s ambitious External Investment Plan (EIP) that will encourage private investment in partner countries in Africa and the EU Neighbourhood region.
Andrus Ansip, Vice President responsible for the EU Digital Single Market, stressed that “Investing in business opportunities for young people particularly in the digital economy is crucial for both continents. The Forum’s strong accent on digital and youth and the mainstreaming of digitalisation into EU development policy via the “Digital4Development” Strategy are a first major step in the right direction.”
Commissioner for International Cooperation and Development Neven Mimica said: “Improving the conditions for investment in Africa is essential to create jobs and promote sustainable development. The EU is committed to team up with Africa and has set up a 44 billion euros External Investment Plan to unlock the untapped potential in sectors such as infrastructure, digital transformation and trade”.
With its overarching theme of “Investing in Job Creation for Youth”, the Forum looked at the challenges and opportunities for investment in Africa in line with strategic priorities, such as the digital economy, agriculture & agribusiness and renewable energy. It also aimed to provide solutions, particularly for the growing number of youth and women entrepreneurs. Through high level panel discussions, solutions sessions and investment pitches, the private sector showcases its commitment for sharing the role with the public sector in the implementation of the global sustainable development goals.
A young generation of entrepreneurs hold the future of Africa and Europe in their hands. By 2050, the African continent’s youth population is expected to double, but for the estimated 10-12 million people entering the workforce each year, only 3 million formal jobs are created. The Forum provides a unique platform for 135 young entrepreneurs and startups from both continents to showcase their projects in The Digital Start-up Fair where they can express their vision for the future of Africa and Europe, to exchange with mature companies and to interact with government representatives.
The 6th EU-Africa Business Forum (EABF) took place just ahead of the 5th Africa Union-European Union Summit (29 & 30 November) in Abidjan. Business involvement is crucial to eradicate poverty and ensure sustainable development in Africa, as aid alone will not be enough. A Business Declaration will be delivered for presentation at the Summit of Heads of States and Governments.
The European Union, through instruments like the European Investment Plan, is determined to strengthen partnership and promote a different model of participation with the private sector in Africa and the neighbourhood. Not only working through a mechanism of financial guarantee, but also closely collaborating with business and relevant stakeholders in order to improve investment climate notably through the Sustainable Business for Africa (SB4A) platform. With a contribution of €4.1 billion from the European Commission, the External Investment Plan is expected to leverage more than €44 billion of investments by 2020.
The European Commission is working closely together with European and international financial institutions, including the African Development Bank and European Investment Bank. In this way public funding is used as a catalyst to attract public and private investment and to create decent jobs for the people of Africa.
During the Forum, five regional transport projects supporting the construction or rehabilitation of crucial road corridors across West Africa, a project aiming at developing a solar power station in Benin and another financing the modernisation of Senegal Electricity were to be signed. These projects are the result of the fruitful collaboration between the EU, ECOWAS, UEMOA, African Development Bank (AFBD), the French Development Agency and the European Investment Bank.
Moreover, two projects, the West Africa Competitiveness Programme and the Trade Facilitation Programme aimed at strengthening private sector competitiveness in selected value-chains that have a significant potential for job creation and at improving free circulation of goods in the region were launched. These projects represent a significant contribution to improve investment, competitiveness and create more and better jobs in West Africa, in cooperation with the West Africa regional organisations.
Pierre Guislain, Vice President of the African Development Bank (AFBD) noted: “Private Sector development, SME financing for the underserved, local currency funding and private sector risk-sharing schemes are part of the Bank’s priority focus areas in its partnership with the European Union. Through its participation in EIP and other initiatives the Bank wants to catalyze more private investment to accelerate Africa’s economic transformation. We consider the EIP Technical Assistance window as a great opportunity to provide more focused support to our Regional Member Countries in the areas of regional integration, private sector investment and preparation of bankable infrastructure projects.”
Ambroise Fayolle, Vice President in charge of development at the European Investment Bank (EIB) said: “The extension to this programme that we are signing today for the modernisation of the electricity transmission and distribution network in Senegal will extend connections to around 55,000 people – meaning 149,000 in total will benefit. This will help to foster agricultural development and food security, in turn contributing to create and stabilise jobs. This agreement shows the EU and its Bank working in a joined up way to support development in Africa that improves the lives of people and its economies.”
The EABF is an integral part of the Joint Africa-EU Strategy (JAES). The Forum in Abidjan concludes a series of business-related events held in Africa and Europe in the course of 2017 that highlighted the importance of investment, job creation and public-private dialogue for achieving sustainable and inclusive growth in Africa. The EABF is vital for creating the appropriate forum for knowledge share that will form the basis and impetus for reinvigorating Africa’s business and creating opportunities for investment in the long term.
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Region in joint efforts to develop cross-border trade
Rwanda, Tanzania, Uganda, Burundi and the Democratic Republic of Congo officials have committed to work together in addressing challenges hindering cross-border trade in the region.
The commitment, which is expected to help thousands of small-scale cross-border traders – especially women – to carry out their daily business smoothly, was made on Monday in Kigali during a regional advocacy meeting on cross-border trade.
The meeting brought together regional public institution representatives whose mandates relate to cross-border trade.
It aimed to discuss challenges and the progress made in addressing them in line with enhancing regional integration that enables cross-border traders to contribute to sustainable economic development.
It was organised by Pro-Femmes / Twese Hamwe, a civil society umbrella of 57 women advocacy groups in Rwanda.
The cross-border trade features small businesses, like selling fish, tomatoes, milk, and fruits.
It was noted that, despite its vital contribution to food security, providing employment as well as allowing people access to goods and services unavailable in their own countries at affordable prices, cross-border trade remains under developed.
The major challenges faced by cross-border traders include limited access to credit, lack of information on regional trading protocols and services, robbery, gender based violence and confiscation.
According to Rwanda’s Ministry of Trade and Industry, cross-border trade contributes over $170 million annually to GDP.
Markets
Robert Opirah, the director-general of trade and investment at the Ministry of Trade and Industry, said the Government has been creating a friendly operating environment for cross-border traders.
The Government has been constructing markets at the borders to support the traders. Three markets have been completed in Burera, Akanyaru and Karongi districts.
Opirah said the construction activities for more markets are underway on the Kagitumba, Gatunda, and Rusizi and Rusumo borders.
He added that the facilities will also have early childhood development centres to support women traders once they are at work.
“It is better that traders get commodities near instead of travelling to other cities like Kigali. Cross-border trade plays a crucial role in the economic development of countries,” Opirah said.
Women’s rights
Emma Marie Bugingo, the executive secretary of Pro-Femmes / Twese Hamwe, said the next step is to tackle challenges such as gender-based violence, sexual harassment, among others.
“We will keep on educating and sensitising all stakeholders, including police, immigration officers, and revenue authorities, among other border agencies, on the laws and regulations regarding cross-border trade as well as encouraging them to support the sector instead of harassing practitioners. There are many women small-scale cross-border traders and their rights should be respected in all countries,” Bugingo said.
She said that all the partner countries will work together to harmonise working hours because some of the borders close earlier than others.
Thierry Habyarimana, a participant from Burundi, said that collaboration among countries plays a big role in securing cross-border traders.
Jennifer Mubirigi, from Tanzania, who uses Rusumo border, said her business will grow since the countries are committed to eliminate all challenges cross-border traders face.
According to 2012 baseline study conducted by Pro-Femmes / Twese Hamwe, gender-based violence accounts for 60 per cent, robbery 22.1 per cent, while sex based corruption stands at 15.4 per cent.
Since 2012, Pro-Femmes / Twese Hamwe is implementing a project funded by Trademark East Africa that aims at “Strengthening the Economic Power of Women in the Informal Cross Border Trade Sector within the Framework of regional integration”.
In addition, since 2017, Pro-Femmes / Twese Hamwe is also implementing a project funded by 11.11.11 CNCD on building capacity of women engaged in informal cross-border trade in the Great Lakes region with aim of promoting women's civic, political and economic power
Both projects have an objective to contribute to gender responsive working environment for small scale cross border traders especially women involved in this trade.
The key and urgent issues that need to be discussed include among others access to finance, border environment, working hours and security, Taxes/duties and informal fines and related border agents, implementation of COMESA &EAC simplified trade regime , capacity and trade related information for cross border trade.
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Kenya adopts visa on arrival for Africans
President Paul Kagame yesterday congratulated his Kenyan counterpart Uhuru Kenyatta and the Kenyan people during Kenya’s presidential inauguration in Nairobi.
Speaking in Swahili, Kagame conveyed regards and congratulations to the Kenyan people.
“Citizens of Kenya, I am here to congratulate you. The people of Rwanda send you their greetings and congratulations for your well-deserved election victory,” he said.
The inauguration was attended by heads of state and government from across the continent – and Israeli Premier Benjamin Netanyahu – who were later hosted to a state banquet.
At the event, Kenyatta announced that his government was opening up the country to Africans by adopting a visa on arrival regime for Africa passport holders.
“The free movement of people on the continent has always been the cornerstone of African brotherhood and fraternity. Today, I am directing that any African wishing to visit Kenya will be eligible to a visa at the port of entry. To underscore Kenya’s commitment, this will not be done on the basis of reciprocity,” Uhuru said.
He said, by opening up borders, the continent will appreciate diversity, embrace integration and reduce negative identity politics.
Kenyatta also pledged to scale up efforts toward the East African Community to deliver prosperity.
“To our brothers and sisters in the East African Community, you are our closest friends; our fate and yours are joined at the hip; our troubles and triumphs are yours, and yours are ours. I will work with you, my brothers, the leaders of the East African Community, to bring a renewed energy and optimism to our union,” he said.
Kenya’s new government will also improve integration across the region by making it possible for citizens of all the six EAC member states to work, do business, own property and live in Kenya without requiring a visa.
“As a mark of our continued commitment to the East African Community, from today, you will be treated like Kenyans. Like your Kenyan brothers and sisters, you will need only your identity card. You can now work, do business, own property, farm and if you wish, and find a willing partner, you can marry and settle in Kenya. And this commitment we make with no conditions for reciprocity but driven by our desire for deeper regional integration,” the Kenyan president said.
The decision by Kenya is viewed as a great step toward achievement of a visa-free Africa, which could improve opportunities for all Africans.
Under a tripartite arrangement, Kenya, Uganda and Rwanda have for the last three years allowed free movement of their citizens across their borders. Kenya has now opened up to the citzens of the other regional states – Tanzania and Burundi and South Sudan.
Speaking to The New Times from Nairobi, Rwandan High Commissioner to Kenya James Kimonyo encouraged more regional states to be part of the move as it was a “sure path to regional integration.”
He said the move by the three countries has had a great impact, especially in investments and commerce.
The African Union is currently working toward realisation of free movement of Africans across the continent.
The 2017 African Visa Openness Index report by African Development Bank showed that movement across the continent still poses a challenge.
The report showed that African passport holders require visa to access 54 per cent of countries on the continent with only 10 countries that do not require a visa for Africans, while only 24 per cent countries have provisions for visa-on-arrival.
Commenting on the development on Twitter, African Union Commission chairperson Moussa Faki called on other nations to follow suit to improve free movement of Africans.
“Delighted by Pres @UKenyatta’s announcement to issue visas at arrival for all Africans visiting Kenya. Congratulations on this historic decision! I urge all African states that have not yet done so, to take similar measures towards free movement for all Africans across Africa,” he tweeted.
With the decision, Kenya joins countries like Rwanda, Mauritius and Seychelles in not requiring visas for Africans prior to arrival.
Recently, in a first, Rwanda went a step further opening its borders with a new visa regime that allows citizens from every nation across the world to receive a visa upon arrival.
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DG Azevêdo details process for MC11 as preparations enter final stages
Statement by Director-General Roberto Azevêdo
at the Formal Trade Negotiations Committee (TNC) Meeting and Informal Heads of Delegation Meeting, 28 November 2017
I would like to start by putting on the record my thanks to the negotiating group chairs for their hard work, particularly over recent weeks.
I would also like to thank the General Council Chair for his work on the draft declaration. As Ambassador Carim reported to the informal open-ended meeting on 22 November, despite not having a final result in Geneva, the process was positive, transparent and inclusive. At that meeting, we also heard that the MC11 Chair intends to continue to work for a Ministerial Declaration in Buenos Aires.
The last time we met to review our progress on preparations for MC11 was just over a month ago, on 24 October. Since then, there has been significant activity in a number of areas.
The chairs have continued their consultations, as you have heard. Members have continued contacts amongst themselves. And I have continued to hold consultations with members, both in Geneva and in capitals.
On 8 November, I attended a meeting of APEC trade ministers in Da Nang, Viet Nam, where I had the opportunity to talk to ministers from that group.
I also travelled to Singapore, where I met with Prime Minister Lee and Trade and Industry Minister Lim.
In addition, I was invited to attend the High-Level Forum on Facilitating Trade and Investment for Development that took place in Abuja, Nigeria, on the 2nd and 3rd of November. And I engaged with a number of ministers at that meeting.
I must say that I found all of these interactions extremely helpful in raising ministers’ awareness of our work. I heard a great deal of support for a successful MC11 at the political level.
Here in Geneva, I held a series of conversations, mainly with those that have submitted proposals on different topics. The objective was to better understand from proponents how they saw the process ahead in their areas of interest in the lead up to MC11.
I have been urging proponents to be realistic and flexible – but also to engage with other members, particularly those with opposing views, in order to find ways of addressing their concerns and building consensus.
Of course, I have been in regular contact with the chairs.
Last Friday, I met with all of the chairs together, along with the Chairman of the General Council. I have also remained in constant contact with the MC11 Chair – Susana Malcorra – including last week when she was in Geneva with her team.
Overall, I think that there has been a lot of progress over weeks.
We have seen excellent engagement. Many proposals were brought forward, many meetings held, and much hard work has been done.
However, members’ positions continue to diverge significantly on the substantive issues. Despite our best efforts, I don’t think there will be agreed negotiated outcomes in Geneva.
So where does that leave us in terms of our work in Buenos Aires?
While there remains a lack of clarity on what may be possible, I am hearing that there are numerous issues that members want to talk about in Argentina.
I have been calling for prioritization for some months. I appreciate members’ efforts here, but limited progress has been made on this front. We still have a lot of issues in play for the ministerial – many issues to deal with, in a very concentrated time period.
And, of course, they are all important issues that merit ministers’ attention and consideration at the political level.
We must consider how we manage this, and make provision for ministers to deal with these issues.
For the sake of the orderly management of the meeting, we are considering options for appointing a few ‘minister facilitators’ who will work with the negotiating chairs in Buenos Aires. This will be ultimately a decision by the Chair of the Ministerial Conference.
Based on the current situation, I think it would be reasonable to expect facilitators for: agriculture, development, rules, e-commerce, and I think we would probably have a fifth facilitator covering issues under services, and maybe some other areas (although I can’t be very specific until all the work is finalized in Geneva).
So this all may need adjustments, depending on how things evolve. It would be prudent to remain open for some fine-tuning.
Nonetheless, I believe that five facilitators are about as much as we can handle – in part because of practical considerations, such as meeting space in Buenos Aires.
Of course there may be other elements that I will pick up as appropriate together with the Chair of the Ministerial Conference and the Chair of the General Council.
Let me say as well that I know some members have also been developing work in limited group formats. This includes the work on MSMEs, investment facilitation, and any other issue that is being discussed in a track different from the negotiating groups. It is for the proponents in these areas to advance this work as they see fit. If they want to appoint their own chairs or facilitators at the Ministerial, that is for them to take forward.
In considering the process for the meeting, clearly openness, transparency and inclusiveness will be important.
In addition, it should always be a bottom-up process. Many members have emphasised this during our preparatory work.
And with that in mind, let me be clear about how I see the process at this point in time.
First, the facilitators (as well as the chairs and the Secretariat) will be there simply to facilitate your work – not to drive it. Their role will be to convene meetings and facilitate conversations – but not more than that. The driving force on substance has to come from the members. Facilitators can only consult and facilitate – they can’t do the job for you.
Second, facilitators will aim to hold open meetings. All members who want to participate will have a chance to do so. Moreover, I will encourage facilitators to coordinate with each other in scheduling their meetings, so that we avoid overlaps, as far as possible.
Third, we will also look to hold informal HoDs meetings in Buenos Aires at the end of each afternoon or early evening – starting on Monday the 11th. These meetings will be a chance for facilitators to report back to everyone on their work. And they will be an opportunity for every minister to participate on every issue and assess progress achieved in the different areas. Even if you haven’t attended a meeting on a particular issue, you will have a chance to make your views heard at the HoDs.
Finally, I will be holding consultations in Buenos Aires, to help the process where I can. But let me stress that while I will hold consultations where needed, I will not convene closed-door negotiating meetings.
So this is the current scenario.
I will continue to consult with others – with the General Council Chair, the negotiating group chairs, and the MC11 Chair before finalizing preparations here in Geneva. We will confirm all of these details at the start of the conference, or earlier if that is possible.
Given the number of issues likely to be discussed, I think we have to be prepared for a quite fluid process in Buenos Aires.
Arrangements in ministerial conferences are always difficult. But, as I have explained, we will do everything we can to ensure that the meeting is open, transparent, inclusive – and orderly.
It is right that we should take a bottom-up approach – true to the member-driven nature of the organization. But it is worth noting that with this approach, the responsibility to advance our work falls squarely on the shoulders of members.
Success will require you to show flexibility and creativity. It will also require you to show restraint. If the HoDs meetings are to function as the forum for decisions, we will need to take a business-like approach. And this is very important. There will not be an opportunity for long, prepared statements. Your minister is not required to speak. We will hear the reports of the facilitators and anything that members have to say, and then take decisions in a very straightforward and executive fashion.
Again, this will not be the moment for statements.
It will be your duty to be efficient and expeditious. It is up to members to determine how far we can advance and how quickly.
MC11 is a very important moment. It is an opportunity to:
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take stock of the significant progress that we have made
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deliver wherever we can
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and set the direction for our future work.
Precisely how far each issue proceeds will depend on the dynamics of each negotiation. Whether you manage to agree outcomes, a work programme or neither will depend on the work in each area – and of course on the decision of the HoDs.
So let’s see what we can do. The WTO has been on a very positive path over the last two ministerial conferences – let’s continue that journey in Buenos Aires and beyond. I ask for your continued commitment, engagement and flexibility in this final stretch.
Thank you. That concludes my statement.
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1 in 10 medical products in developing countries is substandard or falsified
WHO urges governments to take action
An estimated 1 in 10 medical products circulating in low- and middle-income countries is either substandard or falsified, according to new research from WHO.
This means that people are taking medicines that fail to treat or prevent disease. Not only is this a waste of money for individuals and health systems that purchase these products, but substandard or falsified medical products can cause serious illness or even death.
“Substandard and falsified medicines particularly affect the most vulnerable communities,” says Dr Tedros Adhanom Ghebreyesus, WHO Director-General. “Imagine a mother who gives up food or other basic needs to pay for her child’s treatment, unaware that the medicines are substandard or falsified, and then that treatment causes her child to die. This is unacceptable. Countries have agreed on measures at the global level – it is time to translate them into tangible action.”
Since 2013, WHO has received 1500 reports of cases of substandard or falsified products. Of these, anti-malarials and antibiotics are the most commonly reported. Most of the reports (42%) come from the WHO African Region, 21% from the WHO Region of the Americas, and 21% from the WHO European Region.
This is likely just a small fraction of the total problem and many cases may be going unreported. For example, only 8% of reports of substandard or falsified products to WHO came from the WHO Western Pacific Region, 6% from the WHO Eastern Mediterranean Region, and just 2% from the WHO South-East Asia Region.
“Many of these products, like antibiotics, are vital for people’s survival and wellbeing,” says Dr Mariângela Simão, Assistant Director-General for Access to Medicines, Vaccines and Pharmaceuticals at WHO. “Substandard or falsified medicines not only have a tragic impact on individual patients and their families, but also are a threat to antimicrobial resistance, adding to the worrying trend of medicines losing their power to treat”.
Prior to 2013, there was no global reporting of this information. Since WHO established the Global Surveillance and Monitoring System for substandard and falsified products, many countries are now active in reporting suspicious medicines, vaccines and medical devices. WHO has trained 550 regulators from 141 countries to detect and respond to this issue. As more people are trained, more cases are reported to WHO.
WHO has received reports of substandard or falsified medical products ranging from cancer treatment to contraception. They are not confined to high-value medicines or well-known brand names and are split almost evenly between generic and patented products.
In conjunction with the first report from the Global Surveillance and Monitoring System published on 28 November 2017, WHO is publishing research that estimates a 10.5% failure rate in all medical products used in low- and middle-income countries.
This study was based on more than 100 published research papers on medicine quality surveys done in 88 low- and middle-income countries involving 48 000 samples of medicines. Lack of accurate data means that these estimates are just an indication of the scale of the problem. More research is needed to more accurately estimate the threat posed by substandard and falsified medical products.
Based on 10% estimates of substandard and falsified medicines, a modelling exercise developed by the University of Edinburgh estimates that 72 000 to 169 000 children may be dying each year from pneumonia due to substandard and falsified antibiotics. A second model done by the London School of Hygiene and Tropical Medicine estimates that 116 000 (64 000 – 158 000) additional deaths from malaria could be caused every year by substandard and falsified antimalarials in sub-Saharan Africa, with a cost of US$ 38.5 million (21.4 million – 52.4 million) to patients and health providers for further care due to failure of treatment.
Substandard medical products reach patients when the tools and technical capacity to enforce quality standards in manufacturing, supply and distribution are limited. Falsified products, on the other hand, tend to circulate where inadequate regulation and governance are compounded by unethical practice by wholesalers, distributors, retailers and health care workers. A high proportion of cases reported to WHO occur in countries with constrained access to medical products.
Modern purchasing models such as online pharmacies can easily circumvent regulatory oversight. These are especially popular in high-income countries, but more research is needed to determine the proportion and impact of sales of substandard or falsified medical products.
Globalization is making it harder to regulate medical products. Many falsifiers manufacture and print packaging in different countries, shipping components to a final destination where they are assembled and distributed. Sometimes, offshore companies and bank accounts have been used to facilitate the sale of falsified medicines.
“The bottom line is that this is a global problem,” says Dr Simão. “Countries need to assess the extent of the problem at home and cooperate regionally and globally to prevent the traffic of these products and improve detection and response.”
About the reports
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The WHO Global Surveillance and Monitoring System for substandard and falsified medical products report has grown out of the work of the GSMS, which provides national regulatory authorities with an interconnected network. This allows them, for the first time, to cross-reference reports of suspect products with those reported from other regions by searching the WHO database and accessing photograph libraries of confirmed substandard and falsified products.
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A study on the public health and socioeconomic impact of substandard or falsified medical products conducted by WHO and the Member State Mechanism. The problem of substandard and falsified medical products continues to increase, as globalized manufacturing and distribution systems grow ever more complex. That complexity heightens the risk that production errors will occur, or that medicines will degrade between factory and consumer. Increasing demand for medicines, vaccines and other medical products in almost every country, in addition to poor supply-chain management and the growth of e-commerce also creates opportunities for falsified medicines to be introduced into the supply chain.
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tralac’s Daily News Selection
Featured infographics: @TheEIU_Africa team forecasts Ethiopia as sub-Saharan Africa’s fastest growing economy in 2018. East African/Franc Zone economies feature in region’s top 20. Overall sub-Saharan Africa to grow around 3% in 2018 - Nigeria, South Africa recovering but sluggish. Our forecasts for sub-Saharan Africa’s slowest growing economies in 2018. Region’s giants, Nigeria and South Africa, still slow.
Statement by the African Group: Ninth Session of the Trade and Development Commission (UNCTAD)
The African Group expresses its deep concerns that Africa’s share in international trade eroded to 2.2%. In absolute terms for example, Africa’s total exports fell by nearly half from $639.7bn in 2012 to $348.5bn in 2016. To simply recover from this loss, and develop resilience in future, Africa will need to invest more in the development of robust supply capacity to trade in upgraded products especially services and manufactured goods because they are less vulnerable to external shocks. In this regard UNCTAD’s support to Africa must be strengthened and put in the context of the continent’s participation in international trade.
Industrialize Africa: strategies, policies, institutions, and financing (AfDB)
Introductory remarks by Joseph E. Stiglitz: The issues of development are so complex that there is no magic bullet; we cannot approach them with any single tool. Instead, we need a comprehensive approach with a comprehensive industrialization framework and toolkit, adapting to the circumstances of the individual country. [Contributors to the publication include: Célestin Monga, John Page, Arkebe Ogubay, Justin Yifu Lin, Xiaobo Zhang, Ravi Kanbur, Haroon Bhorat]
Ethiopia bets on clothes to fashion industrial future (Reuters)
Ethiopia’s road link with the port in Djibouti is outdated and congested in many parts and, together with the limited capacity and dense bureaucracy of its customs service, slows companies’ supply chains. This is undermining the benefits of being closer to European markets than most of its Asian rivals. It takes up to 44 days from the time a clothing consignment leaves the factory to when it reaches buyers in Europe, compared to an average 28 days in Bangladesh and 21 days in China, according to a report from the Ethiopian Textile Development Institute compiled for investors this year. This drives up costs. It costs up to $1,870 to export a 40-foot container, compared with $1,290 in Bangladesh and $679 in Vietnam, according to an internal report compiled by a major European clothes retailer and seen by Reuters. However officials say the $4bn electric railway between Addis Ababa and the Red Sea, to be inaugurated in the coming weeks, will reduce the transit time to the Port of Djibouti from 2-3 days to eight hours.
Trade facilitation in East Africa: update (WCO)
As the ongoing Trade Facilitation Project in East Africa is about to complete In December 2017, the Commissioners were informed of the latest progress and achievements of the Trade Facilitation Project made through the collaborative work done by the respective Working Group members of the Revenue Authorities with the assistance of experts from the WCO, JICA, Japan Customs and EAC Secretariat. Five revenue authorities are now preparing to launch the next Project in East Africa which is expected to tackle not only trade facilitation but also enhancing border control in East Africa with the support also to be extended jointly by the WCO and JICA, in which the WCO is going to implement Program Global Shield as part of the Project.
South Africa: industrial and competition policy, private sector postings
(i) Manufacturing Circle’s report Map to a Million. The first priority is to prevent further de-industrialisation in rust belts like the Vaal Triangle, arresting further job losses and stabilising the industrial base. Then, to increase the utilisation of existing capacity, and boost the demand necessary to underpin new investment, additional demand for manufactured goods must be created. The Map to a Million (pdf) proposes a number of demand-side interventions to increase domestic demand, pursue import substitution and enhance South Africa’s export competitiveness. It also proposes various supply-side interventions to improve manufacturer’s competitiveness by reducing input costs, making changes to fiscal policy and supporting labour productivity.
(ii) The corporate footprint of Business Leadership South Africa’s members. Big business supports small enterprises in the supply chain. Nearly R1 trillion, or 66.7% of BLSA member expenditure was paid to suppliers, enabling them to employ people, pay taxes, purchase supplies and make investments. BLSA collectively received 34.4 points out of 40 for black enterprise development as prescribed by BEE Codes. Business employs 6.9 times the number of public sector employees. BLSA members themselves employ 1.29 million people, with another 1.97 million jobs supported in the supply chain. 596,719 people are dependent on BLSA employees. The 57 member companies in the study contribute 23.5% of total private sector employment, and pay full-time and part-time employees just under R2 trillion. A further R8.7bn was devoted to training and skills development for BLSA’s employees. Business contributes to the public sector and supports the most important institutions of state through taxation. Taxation to government from BLSA members alone amounted to over R431bn in 2016, 35.9% of total taxes collected. That’s the equivalent of more than one million teacher’s salaries, or almost two million police officers, or almost 1.5 million low-cost housing units. Downloads: A Social Accounting Matrix based input-output model (pdf) for was used to estimate the economic contribution that these companies made to the South African economy. For each, the members’ direct and indirect impacts will be shown, on a sectoral basis, by means of a “dashboard”. Although, strictly speaking, the induced effects do not form part of members’ footprint, these figures will also be shown. [Appendices (pdf)]
(iii) SA needs a sharp, targeted weapon to tackle competition challenges (Business Day)
The commission has reviewed more than 2,150 mergers from 2009 to March 2016, identifying 294 dominant firms in defined product markets falling within 31 sectors. At least 70.45% of SA’s sectors have defined product markets with dominant firms. At least 42% of all product markets have dominant firms active within the manufacturing sector, a sector traditionally associated with jobs-rich development opportunities. Another phenomenon evident when analysing SA’s merger control record is that of creeping concentration — whether through cross-shareholdings and cross-directorships, or through a series of incremental acquisitions in a relatively short period of time that, if considered a single transaction, would raise competition concerns. Concentration should be understood and tackled as a competition problem, a recognised structural feature of markets that are not operating competitively. [The author, Michelle M Le Roux, chairs the ministerial advisory panel on amendments to the Competition Act]
Nigeria’s capital importation: Q3 2017 (NBS)
The capital importation into Nigeria in 2017 Q3 recorded a substantial increase compared to the past few quarters, as the economy continued to recover from recession following its exit in Q2 2017.The total capital imported in the third quarter was recorded at $4,145.1 million, more than double the inflow in the second quarter of this year, representing an increased value of 147.5% on a year on year basis. This inflow of capital in Q3 2017 is the first time since the beginning of 2015 that capital hit over $4,000 million in a quarter. The boom in capital importation in Q3 2017 was mainly driven by significant growth in both portfolio investment and other investment. The country from which Nigeria imported the most capital was the United Kingdom (pdf), which accounted for $1736.58 million, or 41.89% of the total of capital inflow in 2017 Q3. This value represented a 149.26% increase in capital importation relative to the figure in the previous quarter, and a 58.22% growth over the same period in last year. The country accounting for the second largest value of capital importation was the United States. The US accounted for $962.1 million in the third quarter of 2017, or 23.21%. The next two largest investors in the third quarter of 2017 were Tanzania (accounting for 7.61%) and Mauritius (5.53%). [Tables]
Regulation harmonization: Africa’s blueprint for health care success (Devex)
Speaking to Devex, Ndomondo-Sigonda explains why improvement in medical products and pharmaceutical regulation is vital and how harmonization can be achieved: As far as regulation of medical products is concerned, one of the pressing issues at the moment is really that of substandard and falsified medicines in circulation on the African markets. There is a prevalence of 25 to 30% of substandard and falsified products on the market and, of course, this is posing a big challenge in terms of public health because sometimes the public is subjected to these medicines, which can be very harmful. Secondly, we have an issue around the different requirements for the registration of medicines. That means the industry finds it very difficult to get products into the market. This poses a challenge when it comes to availability of the most needed medicines, especially new products. Generally speaking, all of this is compounded by the capacity limitations we see in most [African] countries — they either don’t have appropriate frameworks to regulate medicines, the laws are outdated, or just not comprehensive enough. [NEPAD: Concept note for the 3rd Biennial Scientific Conference on Medical Products Regulation in Africa, 27-28 November, Accra]
Drug security in Nigeria: technology for supply chain integrity (PWC Nigeria)
The presentation, by Dr Andrew S. Nevin, presents an overview of the health landscape in Nigeria noting the huge supply and financing gap across the health system evident in the relatively small pharma market in Nigeria. It highlights the challenge of drug counterfeiting and discusses how technology can be used to increase the supply chain integrity and prevent counterfeiting.
Opening markets will remove barriers to EA food security (Business Daily)
However, since most food products are tradable on world markets, food security is heavily dependent on the purchasing power of the poor and not only on management of domestic supply. These protectionist tendencies have negative implications on the region’s food security and shifts in government agricultural policy on regional trade and domestic food price controls can at times be ad hoc. For instance, it is not uncommon for farmers who arrive at a border to find that a government has imposed an unannounced export ban, or sometimes a ban has been removed but customs officials have not been informed. A wide range of barriers to trade have resulted in the fragmentation of markets for both agricultural products and their inputs. This has led to a high level of price volatility and has contributed to food insecurity. In countries such as Kenya, Malawi, Zambia, and Zimbabwe where governments have directly intervened to control prices of staple food crops, prices are more volatile than in countries with fully liberalised food markets like Uganda. [The author, Steve Orr, is attached to FoodTrade ESA]
Southern Africa: humanitarian outlook, November 2017 to April 2018 (RIASCO)
The population of SADC has doubled since 1990 to about 333 million people. Over the past six years the region has recorded economic growth of around 4.4%, which is far below the SADC growth target. Yet even this meagre growth does not necessarily improve the lives of the most vulnerable in society. Malnutrition remains high in the region, with 13 of the 15 countries reporting stunting prevalence above 20%, and 7 countries reporting stunting prevalence above 30%. Similarly, prevalence of global acute malnutrition is >5% in 8 of 15 countries in the region, with the highest reported national prevalence in Madagascar at 8.6% (13.9% at district level). Prevalence of acute malnutrition and admissions are expected to increase in the region as a result of the lean season from October through March and partners are preparing contingency plans including nutrition response activities for the upcoming lean season.
Today’s Quick Links: UNECA experts group meeting on fostering sustainable transformation of agriculture in Africa through inclusive green economy: the case of livestock value chain in Southern Africa Zimbabwe records $1,6bn trade deficit Kenya: FDI inflows in 6-year low Zambia: Chinese railway group inks $393m deal with Zambia The UK, the Commonwealth and the Commonwealth Summit 2018: report on the pre-CHOGM conference World Bank: Economic growth, convergence, and world food demand and supply |
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Map to a Million: Creating a million new jobs in manufacturing in the next decade
The Manufacturing Circle launched its ‘Map to a Million New Jobs in a Decade’ on 24 November 2017, a plan containing realistic, constructive, and actionable steps to create an environment in which manufacturing in South Africa can thrive and jobs can be created.
“With unemployment at a 14-year high of 27.7%, business confidence at its lowest level in a quarter of a century, and more than half of the population living in poverty, delivering jobs and inclusive growth has to be highest priority for government, business and labour,” said Manufacturing Circle Chairman André de Ruyter.
In the past two decades, the manufacturing sector has shed half a million jobs. At just under 13%, it contributes less than half to GDP than is appropriate for South Africa’s stage of development.
“If manufacturing can expand to 30% of GDP, between 800 000 and 1.1 million direct jobs can be created, with 5 to 8 times that number in indirect jobs,” he added. “Our ‘Map to a Million’ puts forward detailed proposals to deliver a million jobs in manufacturing in the next decade.”
The Manufacturing Circle, the voice of the South African industry, submitted its proposals to fellow manufacturers, to ministers and administrators, to regulators and policy writers, to labour and to business, and the public at large. “If we succeed in catalysing a debate on how to grow the economy, and put more people to work, we will have achieved the first step on the road towards creating a million new jobs,” de Ruyter said.
The first priority is to prevent further de-industrialisation in rust belts like the Vaal Triangle, arresting further job losses and stabilising the industrial base. Then, to increase the utilisation of existing capacity, and boost the demand necessary to underpin new investment, additional demand for manufactured goods must be created.
The ‘Map to a Million’ proposes a number of demand-side interventions to increase domestic demand, pursue import substitution and enhance South Africa’s export competitiveness. These include:
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A commitment by both business and government to visibly support Proudly South African, increasing the procurement of locally manufactured goods (provided their cost and quality are competitive)
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Investigation by government of its options to invest in catalytic projects, such as a new pipeline to bring natural gas from Rovuma in Mozambique into SA, using SA steel and pipe, to lower the cost of natural gas
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An increase in the renewables’ component of electricity procurement, with solar and wind generation equipment manufactured in SA
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A reconsideration of administered prices to put more money back into the pockets of consumers. For example, fixing a maximum price for petrol will encourage competition, lower fuel costs and could add up to R1,8 billion a year to disposable income, and reduce transport costs across value chains
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Our trade policy should adopt an actively pro-South African approach, within WTO rules
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Greater collaboration between producers across value chains to enhance in-country value addition, particularly in the agro-processing, platinum, manganese and steel value chains
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The implementation locally of similar policies to SA’s key competitors in manufacturing, in particular export incentives
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A reduction in Portnet tariffs, which are 88% higher than the world norm, and an improvement in port efficiency
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The re-instatement of rail subsidies for export containers to overcome the disadvantage of manufacturers’ inland location
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The emulation of the successful Motor Industry Development Programme for key industries, in particular secondary steel manufacturing.
The ‘Map to a Million’ also proposes various supply-side interventions to improve manufacturer’s competitiveness by reducing input costs, making changes to fiscal policy and supporting labour productivity. These interventions would:
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Ensure effective price regulation of natural gas and electricity, reducing costs
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Regulate pricing of key inputs from sole suppliers
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Enable competition in electricity generation by deregulating the sector
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Use the IDC’s balance sheet to lower the cost of capital by liquidating long-standing investments to drive industrialisation, in particular supporting black industrialists, at much bigger scale
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Improve the many provisions in the Income Tax Act that support manufacturing
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Implement the 15% tax rate for existing special economic zones, and also apply it to distressed industrial areas such as the Vaal Triangle
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Allow accelerated depreciation for manufacturing, similar to that for mining
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Implement conditional tax holidays for investments, with targets for job creation and value addition
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Introduce recapitalisation allowances to enhance competitiveness of existing factories
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Reconsider sugar, packaging and carbon taxes that hurt manufacturing
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Support the dti’s Intsimbi Future Production Technologies Initiative to resolve skills shortages
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Implement transport subsidies to overcome spatial distortions and increase disposable income
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Ease the work permit process for scarce foreign skills
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Include labour in company governance structures to increase transparency and reduce adversarial labour relations.
In addition to these improvements to demand and supply, the following structural fixes will help to increase investment and job creation through manufacturing:
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Prioritise industrial development and job creation in a coordinated manner, through a superministry similar to Japan’s MITI, incorporating dti, EDD, DSBD and DPE, and aligned closely with Treasury
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Introduce significant private sector equity participation in SOEs
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Focus on education as an essential service, and promote high standards instead of high pass rates
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Rescind and renegotiate the Mining Charter, which is detrimental to investor confidence across sectors and has already reduced demand for manufactured goods
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Ensure greater policy certainty and reduced currency volatility to free up balance sheet capacity as fewer ‘shock absorbers’ would be required for foreign loan covenants
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Support municipalities with the capacity to deliver and maintain infrastructure
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Split Eskom into independent generation, procurement and transmission entities, introduce private sector equity partners, and enable the creation of a home-grown renewables sector instead of unaffordable nuclear energy
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Abolish the costly and ineffective SETA system and rather give direct tax credits for training
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Rethink concurrent jurisdiction to give the Competition Commission more power where regulators such as NERSA fail to regulate monopolies appropriately.
“None of these interventions on its own will be enough to create economic growth and job creation through manufacturing,” said de Ruyter. “We propose that a Manufacturing Working Group between business, labour and government be established to coordinate the implementation of the Map to a Million.”
And although the proposals may seem disproportionately weighed towards government interventions, the Manufacturing Circle considers them an essential first step to slow down the rate of job losses and de-industrialisation, before real growth is observed, and new jobs are created.
“Our proposals are modest, and can be achieved with ease if the necessary political will is applied,” said de Ruyter. “They are not costly to the fiscus: on the contrary, the additional tax revenue from a million new jobs will far exceed the cost of extending modest incentives to manufacturers.”
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Application of the green economy approach will enhance the sustainability in the agricultural sector
“Most of the grazing areas are overstocked resulting in range degradation but with the use of the green economy, there is a potential to enhance sustainability in the agricultural sector,” says Ms Mmadima Nyathi, Director of Research Statistics and Policy Development of the Botswana Ministry of Agricultural Development and Food Security.
Ms Nyathi was speaking on behalf of Mr. Boipolelo Khumomathlare, Permanent Secretary of the Ministry, at the official opening of the Experts Group meeting on “Fostering Sustainable Transformation of Agriculture in Africa through Inclusive Green Economy: The Case of Livestock Value Chain in Southern Africa” organised by United Nations Economic Commission for Africa (ECA) in collaboration with Secretariat of the Southern African Development Community.
Ms Nyathi observed that agricultural sector in Botswana offers a lot of opportunities for economic diversification and growth and employment creation especially for the majority of the population who resides in rural areas. She argued that the sector’s potential was hampered by inefficiencies along the product value chains which adversely affected the flow of agricultural products to lucrative domestic and export markets.
The study report under review, she said, was important: it offered opportunity to examine the application of green economy to enhance sustainability of the livestock sector, and facilitates comparison of value chains and learning from different countries of the Southern Africa subregion.
Speaking on behalf of Mr. David Phiri, the FAO Subregional Coordinator for Southern Africa, Mr. David Mfote the Assistant FAO Representative in Botswana said that this was the time to unite forces to realize the full potential of livestock sector in the subregion.
He said that sustainable livestock value chains were at the heart of FAO’s Five strategic objectives. He noted that FAO was committed to developing green livestock value chain to improve employment and income generation as well as other social benefits particularly for women and youth.
On his part and speaking on behalf of Ms. Fatima Denton, Director of Special Initiatives Division, Dr Nassim Oulmane, Chief of the Green Economy and Natural Resources Section said that agriculture had potential to better serve economic, social and environment imperatives of Africa.
He explained that the theme of the meeting was on transforming Africa’s agriculture to tackle major weakness and binding constraints to unleash the optimal potential of the sector, including in safeguarding and enhancing the productivity and health of the natural resources and environment, which are the very basis of agriculture.
He added that “mainstreaming green economy principles and approaches in to agricultural development stands out as one of the strategic interventions that African Governments could pursue towards the sustainable transformation of the sector.” He said this augured well with the development priorities and objectives of SADC region.
He reiterated one of the key principles endorsed by SADC Council of Ministers of Agriculture in August 2014 that SADC Agricultural programmes “should aim at maintaining the region’s natural capital and, along with both social sustainability and economic sustainability, contributing to sustainable development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”
In this regard, he recalled that SADC has adopted a regional green economy strategy and action plan for sustainable development aimed at catalysing socio-economic transformation of the SADC Region towards a resource efficient, environmentally sustainable, climate-change resilient, low-carbon development path and equitable society.
“The study was an important tool that would provide SADC countries with guidance and policy options for mainstreaming inclusive green economy into the livestock sector,” he added.
Application of inclusive green economy principles to boost productivity, and reduce inequality and poverty
“Application of inclusive green economy principles and practices in the Zambia agriculture sector will boost agricultural productivity, and reduce inequality and poverty,” says Zambia’s Permanent Secretary for Ministry of National Development Planning, Dr Auxilia Bupe Ponga.
Speaking at the official opening of the Validation Meeting for the Study Report on “Fostering Sustainable Transformation of Agriculture in Africa through Inclusive Green Economy: The Case of Livestock Value Chain in Zambia” organised by United Nations Economic Commission for Africa (ECA), Dr Ponga observed that agriculture plays a significant role in eradicating poverty and that its subsectors including fisheries, livestock and agro-forestry continue to play an increasingly significant role in the lives of many Zambians.
“As you may be aware, the goal of the 7NDP is to “create a diversified and resilient economy for sustained growth and socioeconomic transformation driven, among others, by agriculture, tourism, manufacturing and mining,” she said.
She commended ECA for selecting Zambia as one of the three case studies which will feed into a subregional study of Livestock Value Chains in Southern Africa.
“I am particularly pleased that this study analyses the complex links between poverty-environment and sustainable transformation of agriculture using the livestock value chain as an example,” she said.
Dr Ponga noted that the study by ECA is timely as Zambia has just adopted the Seventh National Development Plan (7NDP) under the theme “Accelerating development efforts towards the Vision 2030 without leaving anyone behind”.
“As the 7NDP states, agro-diversification and development will be based on comparative and competitive advantages in line with the Government’s Green Revolution agenda,” she added.
She was optimistic that the application of inclusive green economy principles and approaches in the Zambia agriculture sector could boost agricultural productivity, reduce inequality and poverty. She noted that the sector constitutes a priority and has potential to drive inclusive growth.
Dr Ponga said that for livestock development to be truly sustainable, there is need to adopt an integrated approach that harnesses the strong linkages between economic growth, social development and environmental protection.
She implored the experts from various Government Ministries, the private sector, academia and farmers to foster integrated planning if sustainable livestock development is to take place.
Meanwhile, the Chief of Green Economy and Natural Resources Section of ECA Dr Nassim Oulmane emphasized that green economy should contribute to eradicating poverty, as well as sustained economic growth, enhancing social inclusion, improving human welfare, and creating opportunities for employment and decent work for all.
He said the study which is aimed at interrogating the green economy further, will contribute to identifying the challenges and opportunities for inclusive green growth in Africa with emphasis on key sectors, including the livestock value chain. He added that climate resilient development was key for Africa’s transformational agenda and for achieving the sustainable development goals.
The meeting is organized by Economic Commission for Africa (ECA) in collaboration with the Ministry of National Development Planning in Zambia.
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Trade: A catalyst for accomplishing the 2030 Agenda
Trade should support economic growth and be made socially and environmentally sustainable, with benefits spread across all segments of society.
The ninth session of the Trade and Development Commission will be held from 27 November to 1 December 2017. The substantive topic for the ninth session of the Trade and Development Commission is entitled “From decisions to actions: Trade as a catalyst for accomplishing the 2030 Agenda for Sustainable Development”.
The Commission will provide an opportunity for member States and other stakeholders to discuss key trade and development issues related to more resilient, sustainable and inclusive development.
In addition, the Commission will review and adopt the reports of the Intergovernmental Group of Experts on Competition Law and Policy and the Intergovernmental Group of Experts on Consumer Protection Law and Policy, along with the reports of the following expert meetings:
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Multi-year Expert Meeting on Transport, Trade Logistics and Trade Facilitation
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Multi-year Expert Meeting on Commodities and Development
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Multi-year Expert Meeting on Trade, Services and Development
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Multi-year Expert Meeting on Enhancing the Enabling Economic Environment at All Levels in Support of Inclusive and Sustainable Development, and the Promotion of Economic Integration and Cooperation
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Expert Meeting on the Ways and Means of Improving the Implementation of Priority Areas Agreed in the Istanbul Programme of Action
The Commission will also discuss the outcomes of the progress report on promoting and strengthening synergies among the three pillars of UNCTAD work, and devote a session meeting to discussing the role of trade for accomplishing the 2030 Agenda for Sustainable Development.
In the context of ongoing preparatory processes towards the forthcoming Eleventh Ministerial Conference of the World Trade Organization, the ninth session of the Trade and Development Commission will consider trends in international trade and development; contribution of the international trading system to the Sustainable Development Goals; developments in the Doha Round and preparations for the Eleventh Ministerial Conference; non-tariff measures and voluntary sustainability standards; trade, environment and sustainable development; relevance of trade and gender issues for the achievement of Sustainable Development Goals; and relevance of trade logistics for the achievement of Sustainable Development Goals.
The ninth session of the Commission will aim at producing outcomes that are more action-oriented and identify practical solutions to trade and development problems.
Statement by H.E. Dr. Mustafa Osman Ismail Elamin, Ambassador and Permanent Representative of Sudan
on behalf of the African Group
I have the honour to deliver this statement on behalf of the African Group. The Group fully associates itself to the statement delivered by the distinguished Ambassador of Tanzania on behalf of G.77 and China.
Allow me Ms. President to congratulate you and the members of the bureau on your election. The African Group is full assured that your able leadership will contribute to the success of this Trade and Development Commission Session. The African Group would like to thank Ms. Isabelle Durant, Deputy Secretary-General of UNCTAD for her opening remarks.
The African Group would like to thank UNCTAD for the its technical assistance and capacity building programs provided to the member states specially in the field of trade facilitation which assisted the beneficiary countries in establishing and organizing National Trade Facilitation Committees as well as supporting the countries through the ASYCUDA program and the UNCTAD Trade Portal initiative. The Group encourages UNCTAD to continue its effort in collaboration with other international organization to deliver efficient and coordinated technical assistance and capacity building programs for the benefit of the developing countries.
The African Group acknowledges UNCTAD’s assistance on preparing trade policy frameworks and Services Policy Reviews for some African Countries. These countries have now embarked on implementation of these policies and will further need UNCTAD’s financial and technical support. Trade policy can help African countries to achieve Sustainable Development Goals although much more needed to be done especially in addressing the supply bottlenecks. Linking trade policy and productive capacity and structural transformation is very crucial for the achievement of SDGs.
The African Group would like to thank UNCTAD for its support to the African Member States through the African Union Commission in the negotiations of the Africa Continental Free Trade Area (CFTA). This support contributed to the final adoption of Modalities for goods and services liberalization in June this year by African Ministers of Trade. UNCTAD is encouraged to continue its support to the CFTA negotiations.
The African Group expresses its deep concerns that Africa’s share in the International Trade eroded to 2.2%. In absolute terms for example, Africa’s total exports fell by nearly half from $639.7 billion in 2012 to $348.5 billion in 2016. To simply recover from this loss, and develop resilience in future, Africa will need to invest more in the development of robust supply capacity to trade in upgraded products especially services and manufactured goods because they are less vulnerable to external shocks. In this regard UNCTAD’s support to Africa must be strengthened and put in the context of the continent’s participation in international trade.
In conclusion, the Group looks forward to the constructive and fruitful discussions.
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WCO/JICA East African Project concluded with more utilization of regionally developed pool of experts
The World Customs Organization participated in the 8th Regional Joint Coordinating Committee (RJCC) meeting of “The Project on Capacity Development for International Trade Facilitation in the Eastern African region” held in Kampala, Uganda on 23 November 2017.
The meeting was hosted by the Uganda Revenue Authority and attended by the Commissioners General, Commissioners Customs and other senior officials from five EAC (East African Community) Partner States, namely Burundi, Kenya, Rwanda, Tanzania and Uganda as well as EAC Secretariat to confirm the latest progress and achievement made under their Trade Facilitation Project which is jointly supported by the WCO and JICA (Japan International Cooperation Agency).
As the ongoing Trade Facilitation Project in East Africa is about to complete In December 2017, the Commissioners were informed of the latest progress and achievements of the Trade Facilitation Project made through the collaborative work done by the respective Working Group members of the Revenue Authorities with the assistance of experts from the WCO, JICA, Japan Customs and EAC Secretariat.
In the meeting, Commissioners recognized the significant achievements made by the members of the “Master Trainer Program (MTP)” who presented the products of their intensive work, i.e. Case Study Books on Customs Valuation and HS Classification as well as the Training Material on Post Seizure Analysis (PSA).
A representative of the member of MTP also reported the great outcome of the “WCO accreditation workshop for Expert Trainers on Customs Valuation and HS Classification” organized for the Master Trainers in Brussels in October.
Commissioners acknowledged those significant achievements made by the members of the MTP and reaffirmed their commitment to fully utilize those pool of experts and useful materials available in East Africa for the benefit of Customs officials and Customs clearing agents through more sustainable and self-contained training delivery.
Five Revenue Authorities are now preparing to launch the next Project in East Africa which is expected to tackle not only trade facilitation but also enhancing border control in East Africa with the support also to be extended jointly by the WCO and JICA, in which the WCO is going to implement Program Global Shield (PGS) as part of the Project.
The next Project is expected to commence in December 2017 immediately following the completion of the current Trade Facilitation Project.
The WCO is committed to continue working together with JICA and five Revenue Authorities in East Africa to effectively achieve the objectives of this new Project.