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African leaders consider proposals for institutional review of the AU (Ghana Business News)
Describing the AU as a “highly dysfunctional organization”, President Kagame, in his presentation, catalogued a wide-range of problems which have plagued the Union since its inception in July 2002 as the successor to the Organisation of African Unity, the body which successfully led Africa’s struggle against colonialism and apartheid. According to him, inadequate funding, a bloated AU Commission, a weak Pan-African Parliament, the lack of clear priorities and weak linkages between the AU and the Regional Economic Communities were among the challenges that had impeded the progress of the AU. These problems, he added, are making it difficult for the AU to implement decisions taken at its Summits. Consequently, the AU had become a mere bureaucracy that is largely “divorced” from the African citizenry. To make the AU more effective and efficient, President Kagame proposed the outlining of clear priorities in areas that affected the continent, such as in peace and security, integration and good governance. He also called for a leaner organization that was structured around the priorities of the AU.
African Union Commission: the commissioners
Peace and Security: Mr Smail Chergi (Algeria, North Africa)
Political Affairs: Mrs Cessouma Samate (Burkina Faso, West Africa)
Infrastructure and Energy: Mrs Amani Abou-Zeid (Egypt, North Africa)
Social Affairs: Mrs Amira Elfadil Mohammed (Sudan, East Africa)
Trade and Industry: Mr Albert Muchanga (Zambia, Southern Africa)
Rural Economy and Agriculture: Mrs Josefa Sacko (Angola, Southern Africa)
[Note: Elections were suspended for Human Resource, Science and Technology, and Economic Affairs]
African Union Handbook 2017 (MFAT New Zealand)
This Handbook is published by the African Union Commission in partnership with the New Zealand Government. Modelled on the United Nations Handbook, it is intended as a ready reference guide for people working in all parts of the AU system (Member States, government officials, Commission and other staff) as well as the AU’s many partners and wider civil society. [Note: The Handbook is available in English and French]
At AU Summit, UN chief Guterres spotlights need to strengthen cooperation
In his first address to the African Union since taking office, United Nations Secretary-General António Guterres today underscored the importance of a strategic AU-UN partnership for building sustainable development and advancing peace and security on the continent. Speaking in Addis Ababa, Ethiopia, in English, French and Portuguese, the Secretary-General told African leaders that “I am here to listen to you, learn from you and work with you for the people of Africa and the wider world.”
EAC’s Sectoral Council on Trade, Industry, Finance and Investment meets in Arusha
The five-day meeting which began with the Session of Senior Officials will also include the Session of the Coordination Committee (comprising Permanent/Principal Secretaries) and culminate with the Session of Ministers. High on the agenda of the meeting are the consideration of progress reports on: the EAC Single Customs Territory; the Development of a Framework for the EAC Customs Bond, and the Development of the Customs Valuation and Risk Management System. The meeting will also consider: proposed EAC Information System for Customs and Trade; report of experts on Chapter 15 of the Revised EAC Rules of Origin; development of Product Identification Bulletins; progress report on the Comprehensive Review of the EAC Common External Tariff and EAC Rules of Origin, and draft regulations on motor vehicle assembly within the region.
East Africa Cross Border Trade Bulletin (January 2017, Volume 16)
Maize grain was the most informally traded commodity in Eastern Africa in the fourth quarter of 2016 but its share of total trade decreased slightly from 35% in the third quarter to 31% in the fourth quarter because of average production and supplies in Kenya, Tanzania, Uganda, Rwanda and Burundi. Rice and wheat flour displaced dry beans in the second position and accounted for 19 and 14 percent of the total commodity trade in the region. [Download (pdf)]
COMESA, ARIPO sign MoU to promote intellectual property (COMESA)
COMESA and the African Regional Intellectual Property Organisation have signed a MoU which will encourage collaboration and promote the intellectual property system as a tool to create a favourable trade and investment climate in the region. The MoU will facilitate cooperation in the harmonisation of policies, laws and strategies.
COMESA’s energy regulators meet: RAERESA update
COMESA through its energy arm, the Regional Association of Energy Regulators for Eastern and Southern Africa (RAERESA) has hosted a two-day dialogue workshop in Lusaka on 19 and 20 January 2017 which brought together high level officials from African national regulatory authorities on energy. Topics included the current gaps and barriers for each of the strategic goals, and details of the short, medium and long-term plans and programme. Other topics included the mode of implementation, cost analysis of implementation, the governance structure and coordination for implementation of the plans and the programme.
Kenya: Manufacturing Priority Agenda 2017 (KAM)
The MPA 2017 (pdf) focuses on emerging public policy, a review of the current business environment and relevant regulations, as well as a vision to industrialize for the benefit of Kenya’s economy. The guide details the need for investment in technical skills, creating a nurturing environment for SMEs with a special emphasis on women and youth enterprises, and making Kenya an export hub thereby increasing the competitiveness for local business. The priority areas will be driven under five key pillars which, if strengthened, will lead to a more competitive environment and impactful economic gains for Kenya’s industrial sector. These are:
South Africa: Merchandise trade statistics, December 2016
South Africa posted a trade surplus of R12.04bn in December of 2016 compared to an upwardly revised R1.68bn deficit in November and well above market forecasts of a R6bn surplus. Imports slumped 19.6%, mainly due to lower purchases of original equipment components and machinery & electronics. Exports went down at a slower 6.1%, due to sales of vehicles and transport equipment and machinery and electronics. [The SARS release]
South Africa: ANC wants government to bail out poultry industry (IOL)
The African National Congress on Monday, said it had resolved that government should buy struggling but productive poultry farms in a bid to save jobs and increase food security and production. South African chicken producers, including Rainbow Chicken, are set to retrench more than 3,500 workers in one of the largest industry jobs bloodbaths as they struggle under heavy competition from cheap imported chickens from European Union countries. Speaking during a post-NEC lekgotla media briefing, ANC secretary-general Gwede Mantashe said the party had resolved to pursue this as part of accelerating radical transformation of the economy and disrupt existing patterns of ownership and control. [ANC statement: full text]
Kenya warns ‘Trump effect’ poses threat to its economy (Bloomberg)
Uncertainty surrounding US policies on trade and immigration poses a major external threat to East Africa’s biggest economy, Central Bank of Kenya Governor Patrick Njoroge said. The lack of predictability on policy is stoking fears of abrupt changes that may affect trade between the U.S. and Kenya, some of which may end up eroding sources of foreign currency, Njoroge told reporters Tuesday in Nairobi, the capital. While Kenya has sufficient buffers, including a $1.5 billion standby loan facility with the International Monetary Fund to cushion its economy in times of externally induced shocks, there isn’t adequate insurance against a “Trump effect,” Njoroge said, referring to U.S. President Donald Trump’s inclination towards protectionist trade policy and his stance on immigration.
Tanzania: This is how government loses revenues from the agricultural sector (IPPMedia)
For his part, Southern Agricultural Growth Corridor of Tanzania (SAGCOT) Chief executive officer, Geofrey Kirenga underscored the need for the government to develop industry that is competitive. “In order to satisfy the market demand in an industrial economy, you need to have the capacity of producing the quality and quantity of products and take them to the market in a timely way,” he noted. “All these depend on each other. That why public private partnership with the government is inevitable. You cannot produce without value addition.” He said that unpredictable agricultural policy discouraged investors’ interests, as well as that of the private sector in general, within the country. “I call on the government to facilitate the private sector to build up an industry that is competitive against other foreign markets,” he said.
The changing structure of Africa’s economies (English)
Data from the Groningen Growth and Development Center’s Africa Sector Database and the Demographic and Health Surveys reveals that much of Africa’s recent growth and poverty reduction has been associated with a substantive decline in the share of the labor force engaged in agriculture. This decline is most pronounced for rural females over the age of 25 who have a primary education; it has been accompanied by a systematic increase in the productivity of the labor force, as it has moved from low productivity agriculture to higher productivity services and manufacturing. Although the employment share in manufacturing is not expanding rapidly, in most of the low-income African countries the employment share in manufacturing has not peaked and is still expanding, albeit from very low levels. More work is needed to understand the implications of these shifts in employment shares for future growth and development in Africa south of the Sahara. [The authors: Xinshen Diao, Kenneth Harttgen, Margaret S. Mcmillan]
Christine Lagarde: ‘The fruits of growth: economic reforms and lower inequality’ (IMF)
Our new staff analysis (pdf), released last week, uncovers the various channels through which critical reforms that promote growth (such as those in agriculture, the financial sector, and public investment) can sometimes widen inequality in lower-income countries. The study also illustrates how additional measures can mitigate such growth and equality trade-offs. The bottom line is this: (i) pro-growth policies can be truly inclusive only if policies are designed with careful attention to the details of who gains and who loses; (ii) well-targeted measures can ensure that everyone gains from essential economic reforms – and help further strengthen the case for pursuing reforms.
World Development Report 2017: governance and the law (World Bank)
The 2017 World Development Report: Governance and the Law explores how unequal distribution of power in a society interferes with policies’ effectiveness. Power asymmetries help explain, for example, why model anti-corruption laws and agencies often fail to curb corruption, why decentralization does not always improve municipal services; or why well-crafted fiscal policies may not reduce volatility and generate long-term savings. The report notes that when policies and technical solutions fail to achieve intended outcomes, institutions often take the blame. However, it finds that countries and donors need to think more broadly to improve governance so that policies succeed. It defines better governance as the process through which state and non-state groups interact to design and implement policies, working within a set of formal and informal rules that are shaped by power. The report looks at country examples, including state building in Somalia, anti-corruption efforts in Nigeria, growth challenges in China, and slums and exclusion in India’s cities. It identifies three winning ingredients of effective policies: commitment, coordination, and cooperation. As three core functions to produce better governance outcomes, institutions need to: [Various downloads]
Today’s Quick Links:
Court to rule Thursday on Kenya-Somalia sea row
UNCTAD’s start up NTFC module: Benin, Gabon and Sao Tome and Principe
Eygptian Customs Authority adopts new vision, mission, strategic plan
Warning of dire food shortages in Horn of Africa, FAO calls for urgent action
Third Meeting of the Guarantors of the Peace, Security and Cooperation Framework for the DRC and the region: communiqué
For India to improve its export performance, there is a need for price stability
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Improving governance is key to ensuring equitable growth in developing countries
A new World Bank policy report urges developing countries and international development agencies to rethink their approach to governance, as a key to overcoming challenges related to security, growth, and equity.
The 2017 World Development Report: Governance and the Law explores how unequal distribution of power in a society interferes with policies’ effectiveness. Power asymmetries help explain, for example, why model anti-corruption laws and agencies often fail to curb corruption, why decentralization does not always improve municipal services; or why well-crafted fiscal policies may not reduce volatility and generate long-term savings.
The report notes that when policies and technical solutions fail to achieve intended outcomes, institutions often take the blame. However, it finds that countries and donors need to think more broadly to improve governance so that policies succeed. It defines better governance as the process through which state and non-state groups interact to design and implement policies, working within a set of formal and informal rules that are shaped by power.
“As demand for effective service delivery, good infrastructure, and fair institutions continues to rise, it is vital that governments use scarce resources as efficiently and transparently as possible,” World Bank Group President Jim Yong Kim said. “This means harnessing private sector expertise, working closely with civil society, and redoubling our efforts in the fight against corruption. Without better governance, our goals of ending extreme poverty and boosting shared prosperity will be out of reach.”
The report looks at country examples, including state building in Somalia, anti-corruption efforts in Nigeria, growth challenges in China, and slums and exclusion in India’s cities. It identifies three winning ingredients of effective policies: commitment, coordination, and cooperation. As three core functions to produce better governance outcomes, institutions need to:
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Bolster commitment to policies in the face of changing circumstances. This would help, for example, in cases where decision makers spend windfall revenues instead of saving them for the future, or when leaders renege on peacebuilding agreements in the absence of binding enforcement.
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Enhance coordination to change expectations and elicit social desirable actions by all. Challenges occur in many contexts, from finance to industrial clusters and urban planning. Financial stability, for example, relies on beliefs about credibility. Just consider how despite the rationale for leaving their money in the bank during times of distress, the public may rush to withdraw their deposits if they believe that others will too – ultimately causing the banks to lose liquidity and crash.
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Encourage cooperation: Effective policies help promote cooperation by limiting opportunistic behavior such as tax evasion – often through credible mechanisms of rewards or penalties. Individuals may have incentives to behave opportunistically. Not paying taxes does not prevent them from enjoying public services that others are funding. Similarly, when groups fail to benefit from policies or feel short-changed (for example, by low-quality public services), it can further weaken compliance.
“Government officials do not act in a vacuum. Their decisions reflect the bargaining power of citizens who jockey with each other to advance competing interests,” said World Bank Chief Economist, Paul Romer. “So this report launches a very important discussion for governments, their countries, and people in the development community about how we can make sure that society is on a path that’s generating progress. We need to confront a complicated political process in every country where power can influence the outcome of that process and we have to ask how can make sure that process leads to progress for everyone.”
According to the report, unequal distribution of power can exclude groups and people from the rewards and gains of policy engagement. Yet meaningful change is possible with the engagement and interaction of citizens, through coalitions to change the incentives of those who make decisions; elites, through agreements among decision makers to restrict their own power; and the international community, through indirect influence to change the relative power of domestic reformers.
Based on extensive research and consultations in many countries over the past two years, the report proposes principles to guide reform and change the dynamics of governance for equitable development.
The report finds that good policies are often difficult to introduce and implement because certain groups in society who gain from the status quo may be powerful enough to resist the reforms that are needed to break the political equilibrium.
“This year’s World Development Report ‘Governance and the Law’ has a wealth of insights that will inform and further strengthen the Bank’s work on governance,” said Debbie Wetzel, Senior Director of the World Bank’s Governance Global Practice. “As the report notes, successful reforms are not just about “best practice”. They require adapting and adjusting institutions in ways that build more effectively on local dynamics and address specific problems that continue to stand in the way of development that serves all citizens.”
» Download: World Development Report 2017: Governance and the Law (PDF, 10.62 MB)
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African leaders consider proposals for institutional review of the AU
African Heads of State at the ongoing Ordinary Session of the Assembly of the African Union in Addis Ababa, Ethiopia, are considering reforms aimed at making their role relevant to the needs and aspirations of the African people.
To this end, Rwandese leader Paul Kagame, who was tasked by the 27th Ordinary Session of the AU Assembly to lead the latest initiative to reform the body, outlined a raft of ideas aimed at significant reforms of the AU on Sunday, January 29, 2017 at a retreat organized by the AU Commission for the Heads of State.
Describing the AU as a “highly dysfunctional organization”, President Kagame, in his presentation, catalogued a wide-range of problems which have plagued the Union since its inception in July 2002 as the successor to the Organisation of African Unity (OAU), the body which successfully led Africa’s struggle against colonialism and apartheid.
According to him, inadequate funding, a bloated AU Commission, a weak Pan-African Parliament, the lack of clear priorities and weak linkages between the AU and the Regional Economic Communities were among the challenges that had impeded the progress of the AU.
These problems, he added, are making it difficult for the AU to implement decisions taken at its Summits. Consequently, the AU had become a mere bureaucracy that is largely “divorced” from the African citizenry.
To make the AU more effective and efficient, President Kagame proposed the outlining of clear priorities in areas that affected the continent, such as in peace and security, integration and good governance. He also called for a leaner organization that was structured around the priorities of the AU.
His report also recommended that ways be found to make decisions taken at Summits binding on member states, without necessarily turning the AU Commission into a bureaucratic dictatorship.
Another significant proposal by President Kagame is to give the Chairperson of the AU Commission the authority to appoint his or her own Deputy, so that appointees are more effectively supervised. This implied a review of the Constitutive Act in order to accommodate the structural and legal implications of the proposed reforms.
In the discussions that ensued, all the speakers agreed on the need for reforming the AU, and making it more responsive as well as capable of meeting the aspirations of ordinary Africans.
On his part, President Akufo-Addo welcomed the recommendations contained in President Kagame’s report and urged the Assembly to speed up the implementation of the proposals contained in the report.
President Akufo-Addo recalled that similar discussions had taken place in Accra when Ghana hosted the 9th Ordinary Session of the Assembly, and urged his colleague Heads of State to be genuinely interested and committed to the integration process of the African continent, stressing that until the challenges facing the continental body were addressed honestly, the proposed reforms would not make the desired impact.
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Civil society experts issue accelerated agenda for addressing illicit financial flows in Africa
Group highlights 14 steps African leaders can take to energize fight against illicit flows following Addis Ababa Action Agenda, SDGs, and ECA High Level Panel
As national leaders meet at the African Union Summit in Addis Ababa this week, a group of civil society experts has issued a set of recommendations to address illicit financial flows (IFFs), an issue of critical importance to regional development. Titled Accelerating the IFF Agenda for African Countries (the Accelerated IFF Agenda), the purpose of the document is to highlight for African leaders fourteen steps that can be taken to jumpstart efforts to address IFFs. Among the recommendations are suggestions to establish a multi-agency approach to fight IFFs, to collect information to identify corporate ownership, and certain tax-related measures.
Robbing the African continent of more than $70 billion per year, IFFs represent one of the largest problems facing Africa today. The international community has already recognized IFFs as a major impediment to development, incorporating reduction of IFFs into the Financing for Development Conference’s Addis Ababa Action Agenda and the United Nations’ Sustainable Development Goals. Likewise, the UN Economic Commission for Africa’s High Level Panel on Illicit Financial Flows from Africa published a watershed report on the subject in 2015, and the ambitious African Union Agenda 2063 highlights the importance of eliminating illicit flows as a key way to increase domestic resource mobilization.
“Development experts have identified domestic resource mobilization as the most crucial ingredient in reaching the Sustainable Development Goals,” noted Global Financial Integrity President Raymond Baker. “Illicit financial flows are corrosive to development efforts and curtail the ability to capture domestic resources. It will require energetic and concerted action from governments to fix the problem and the Accelerated IFF Agenda identifies effective steps to kick-start the process. ”
“African agency is critical to invent a future without illicit financial flows,” said Donald Ideh, Project Director on TrustAfrica’s Nigeria Anti-Corruption and Criminal Justice Reform Fund.
Jason Rosario Braganza, Deputy Executive Director of Tax Justice Network-Africa (TJN-A) in Kenya, added that “The accelerated IFF agenda for African countries comes at a time where there is vacuum in global leadership on the issues of IFFs. The 14 point agenda integrates fundamental political and institutional steps that African governments and African multilateral agencies have begun taking to curb IFFs from the continent. The Accelerated IFF Agenda is timely as African governments take up the mantle of leadership in track it, stop it, get it in order to further the continents’ development agenda.”
Donald Deya, Chief Executive Officer of the Pan African Lawyers’ Union (PALU) commented on one way in which the Accelerated IFF Agenda addresses governance and accountability concerns and why the African Union should take note of the document in its discussions this week. “The AU has taken a lead role in recognizing the problem of IFFs on the continent,” he stated. “It can take a step further by including IFF-measures in the African Peer Review Mechanism (APRM), stating loud and clear that good governance means addressing IFFs. I am in Addis Ababa this week to commence this discussion with government representatives, on behalf of our colleagues.”
“Many IFFs arise from corruption within countries,” added Auwal Ibrahim Musa (Rafsanjani), Executive Director of the Civil Society Legislative Center (CISLAC). “Establishing open procurement systems, using common, accessible approaches like the Open Contracting Data Standard, ensure that a government is not contributing to the theft of its people’s future.”
Jean Mballa Mballa, Director of the Centre Régional Africain pour le Développement Endogène et Communautaire (CRADEC), spoke about the group’s plans for outreach in the coming months, stating that “We look forward to discussing this list with senior government officials and civil society groups in all African countries. Some countries may already be working on some of these actions but have yet to embrace others. Nonetheless, each is a critical precursor to more advanced actions to combat illicit financial flows.”
The group of experts represents organizations based in Africa and the United States. Funding for the endeavor, which will include outreach to governments, civil society groups, the media and lawmakers, is provided by the government of Sweden.
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The fruits of growth: Economic reforms and lower inequality
Growth is essential for improving the lives of people in low-income countries, and it should benefit all parts of society. IMF Managing Director Christine Lagarde takes a look at reform and inequality in low-income countries.
Traveling through Africa in the last few days, I have been amazed by the vitality I have witnessed: business startups investing in the future, new infrastructure under construction, and a growing middle class. Many Africans are now making a better living and fewer are suffering from poverty. My current host, Uganda, for example, has more than halved its absolute poverty rate to about 35 percent from close to 90 percent in 1990.
But we have also seen a flip side. Poverty, of course, but inequality as well remain stubbornly high in most developing countries, including in Africa, and too often success is not shared by all.
We have learned, both from working with our member countries, and from our research, that sharing the fruits of growth – what we call inclusion – is key to achieving sustainable economic growth. All segments of society should feel that they have an opportunity to make a better life for themselves.
Our new staff analysis, released last week, uncovers the various channels through which critical reforms that promote growth (such as those in agriculture, the financial sector, and public investment) can sometimes widen inequality in lower-income countries. The study also illustrates how additional measures can mitigate such growth and equality trade-offs.
The bottom line is this: First, pro-growth policies can be truly inclusive only if policies are designed with careful attention to the details of who gains and who loses. Second, well-targeted measures can ensure that everyone gains from essential economic reforms – and help further strengthen the case for pursuing reforms.
A look at who gains and loses
Lifting growth and reducing inequality is especially hard in countries where workers cannot relocate easily and there are big productivity differences between services, industry, and agriculture. A large informal economy, poor infrastructure and lack of financial services make the task even more difficult. Yet, in many of the IMF’s poorest member countries, this is often the case.
In sub-Saharan Africa, for example, it is more than twice as expensive to move from rural to urban areas than it is in China. Only a third of sub-Saharan African households have electricity, compared to 85 percent in the rest of the world. And in low-income countries, only about 20 percent of the adult population has a bank account, compared to more than 80 percent in the rest of the world.
Such barriers get in the way of successful and equitable reforms. Infrastructure development and financial sector reforms are examples.
More, and more efficient, spending on roads, airports, power grids and education help an economy grow more productive and make it easier for people to relocate from farms to cities. But infrastructure investment can also increase inequality if some sectors of the economy become more competitive than others, particularly if labor mobility is limited.
The case is similar for financial sector reforms. On the positive side, these reforms could make it cheaper to borrow, thereby stimulating private investment and boosting growth. But unless financial reforms are deep enough, they may not help poorer segments of the population obtain access to credit and financial services.
How to deliver strong, but inclusive growth
So, what can be done? The answer is not for policymakers to hold off on reforms that boost productivity and growth. Rather, policymakers should consider options that make these reforms more palatable from both a growth and distributional perspective.
With this in mind, our staff paper looks at a number of country cases and analyzes how well-targeted measures can complement reforms and offset adverse distributional impact.
For instance, if Malawi were to consider reducing subsidies for maize production to enhance productivity in the agricultural sector, then targeted cash transfers to affected households would help provide immediate support to farmers who may be hurt by this move. This approach has been successful in reducing poverty and inequality in countries such as Ethiopia, which has one of the largest social transfer programs in Africa.
Similarly, with regard to financial sector reform, if Ethiopia were to increase credit to the private sector to promote manufacturing and boost growth and employment, complementing this by broadening financial access to the rural population and increasing labor mobility – through easier transport that connect rural and urban areas, affordable urban housing, and training – would help reduce inequality across sectors. Rural workers would then be able to find better paying jobs in more modern and competitive sectors, such as manufacturing and services.
Governments can also target investment to improve productivity in disadvantaged sectors, and even out the impact of other reforms. In Myanmar, for example, where half the workforce is on farms, investment in electrification, irrigation, and research and development for improved seed varieties could sharply improve agricultural productivity.
There is no doubt that governments will face challenges in building a consensus for bold policies to boost growth. The IMF will continue to work with them, advocating reforms that bear fruits for everybody to enjoy.
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African Union Handbook 2017
A guide for those working with and within the African Union
Foreword
It is a great pleasure to be writing a foreword for the fourth annual edition of the African Union Handbook. This edition coincides with the end of term for this current commission and, thus, offers us an opportunity to reflect on the strides we have recorded since we took up office in 2012, the Year of Boosting Inter-African Trade, which preceded the Year for Pan Africanism and the African Renaissance.
Since then, as this handbook bears testament to, we have placed our food security agenda firmly in the programmes of our Union and partners. This has, amongst other things, facilitated discussions and actions in relation to our green and blue economies.
Our OAU-AU 50th anniversary commemorations offered us an opportunity to reflect on the gains we have made in relation to Pan Africanism and the African Renaissance. Our Heads of State and Government took the opportunity to lay the foundation for our continent-wide 50-year programme, which allowed Africans to dream of the Africa they foresee over the next 50 years, Agenda 2063: The Africa We Want, which lays a solid foundation for a united, prosperous and peaceful Africa.
Last year, 2016, saw critical milestones across Africa for gender equality and the empowerment of women. It included the 30th anniversary of the African Charter on Human and Peoples’ Rights; the second phase of the African Women’s Decade 2010-20; the 36th anniversary of the UN Convention on the Elimination of all Forms of Discrimination Against Women (CEDAW); and the 21st anniversary of the 1995 Beijing Declaration and Platform for Action.
For the African Union, 2016 was a special year dedicated to human rights with particular focus on the rights of women. It was also the second consecutive year that gender equality and women’s empowerment was adopted as the highest priority on the continental agenda. One of our many achievements was the Executive Council’s formal decision in January 2016 to ensure that the voices of both women and men are equally represented in all AU organs.
Our theme for 2017 is Harnessing Demographic Dividend through Investments in the Youth. This is another particularly significant theme. The future of our continent, our unity, our hopes and aspirations for the peaceful and prosperous Africa we want, rests in the hands of our young people.
The strides we have made towards our vision of “an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena” could not have been possible without partners such as the Government of New Zealand, which continues to support the production of this important record of our work. The documentation of our work is important because it is an instrument by which the people whom we serve can hold us accountable whilst also providing guidance to our work.
Chairperson of the African Union Commission
Introduction
The African Union (AU) was officially launched in July 2002 in Durban, South Africa, following a decision in September 1999 by its predecessor, the Organization of African Unity (OAU), to create a new continental organisation to build on its work.
The AU vision is: An integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena. Agenda 2063, officially adopted by the AU Assembly in 2015, provides a new collective vision and roadmap to build a prosperous and united Africa based on shared values and a common destiny.
Agenda 2063
Agenda 2063 is Africa’s endogenous plan for structural transformation and a shared strategic framework for inclusive growth and sustainable development. It is anchored on the AU Constitutive Act, AU vision, AU Assembly 50th Anniversary Solemn Declaration of 2013 and seven African aspirations for 2063, and sets out a national, regional and continental blueprint for progress. Agenda 2063 was adopted by the AU Assembly on 31 January 2015 at its 24th Ordinary Session. In January 2016, the Assembly reiterated that Agenda 2063 is a common continental framework for socio-economic development.
The seven aspirations for 2063 are:
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A prosperous Africa based on inclusive growth and sustainable development
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An integrated continent, politically united, based on the ideals of Pan Africanism and the vision of Africa’s renaissance
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An Africa of good governance, democracy, respect for human rights, justice and the rule of law
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A peaceful and secure Africa
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An Africa with a strong cultural identity, common heritage, values and ethics
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An Africa whose development is people-driven, relying on the potential of African people, especially its women and youth, and caring for children
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Africa as a strong, united, resilient and influential global player and partner.
Under the First Ten-Year Implementation Plan (FTYIP) 2013-23, Agenda 2063 has 13 fast track or ‘flagship’ projects:
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Integrated high-speed train network: aims to connect all African capitals and commercial centres
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Pan-African virtual university: designed to accelerate development of human capital, science and technology and innovation
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African commodities strategy: aims to enable African countries to develop a vibrant, socially and environmentally sustainable commodities sector
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Annual African forum: designed to bring together Africa’s political leadership, private sector, academia and civil society to discuss Agenda 2063
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Continental Free Trade Area (CFTA) by 2017: aims include to double intra-Africa trade by 2022, strengthen Africa’s common voice in global trade negotiations and operationalise the African Investment Bank (2025) and Pan African Stock Exchange; the African Monetary Fund (2023); and the African Central Bank (2028-34)
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African Passport and free movement of people: aims to fast track continental integration by enhancing free movement of all African citizens from all African countries by 2018
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Silencing the guns by 2020: aims to end all wars, conflicts and violations of human rights
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Grand Inga Dam Project: aims to boost Africa’s energy production
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Pan-African E-Network: designed to transform e-applications and services in Africa
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African outer space programme: aims to bolster African development in various fields, including agriculture, disaster management, remote sensing, climate forecast, banking and finance, defence and security
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Single African air transport market: aims to deliver a single African air transport market to facilitate air transportation in Africa
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African continental financial institutions: aims to accelerate integration and socio-economic development of the continent. The institutions include the African Central Bank, African Monetary Fund and African Investment Bank
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Great Museum of Africa: the Museum, to be established in Algiers, Algeria, was added to the flagship projects in July 2016.
As of September 2016, progress on the flagship projects included:
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A common passport for Africa was launched symbolically at the AU Assembly Summit in Kigali, Rwanda, in July 2016. AU Heads of State and Government encouraged Member States to adopt the African Passport, and asked the AUC to provide technical support and to put in place a roadmap for the development of a protocol on free movement of people in Africa by January 2018 (Assembly/AU/Dec.607(XXVII) of July 2016).
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The Inaugural African Economic Platform is scheduled to be held in Mauritius from 19 to 22 March 2017.
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The AU Assembly adopted the African Space Policy and Strategy in January 2016 as the first major step towards an African outer space programme (Assembly/AU/ Dec.589(XXVI)).
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The AU Assembly reaffirmed in July 2016 its decision to fast track establishment of the CFTA, and decided to establish a high-level panel to champion fast tracking of the CFTA.
This Handbook is published by the African Union Commission (AUC) in partnership with the New Zealand Government. Modelled on the United Nations Handbook, it is intended as a ready reference guide for people working in all parts of the AU system (Member States, government officials, Commission and other staff) as well as the AU’s many partners and wider civil society.
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South Africa Merchandise Trade Statistics for December 2016
South Africa trade surplus beats expectations in December
South Africa posted a trade surplus of ZAR 12.04 billion in December of 2016 compared to an upwardly revised ZAR 1.68 billion deficit in November and well above market forecasts of a ZAR 6 billion surplus. Imports slumped 19.6 percent, mainly due to lower purchases of original equipment components and machinery & electronics. Exports went down at a slower 6.1 percent, due to sales of vehicles & transport equipment and machinery & electronics.
Imports fell to ZAR 81 billion, as purchases went down for: machinery & electronics (-24 percent), equipment components (-53 percent), chemical products (-20 percent), base metals (-29 percent), textiles (-38 percent) and plastic & rubber (-30 percent). Meanwhile, mineral products imports rose 10 percent. Imports came mainly from China (16.9 percent of total imports), Germany (8.3 percent), Saudi Arabia (6.9 percent), the US (6.9 percent) and France (6.6 percent).
Exports declined to 93 billion mainly driven by lower sales of vehicles & transport equipment (-35 percent), machinery & electronics (-16 percent), precious metals & stones (-6 percent), base metals (-8 percent) and prepare foodstuff (-14 percent). By contrast, sales rose for vegetable products (+34 percent) and mineral products (+15 percent). Major destinations for exports were China (11.5 percent of total exports), Germany (6.1 percent), the US (5.4 percent), Botswana (4.5 percent) and Japan (4.5 percent).
Considering full 2016, the trade deficit shrank to ZAR 2.92 billion compared to ZAR 52.18 billion in 2015, as exports went up 5.8 percent and imports grew at a much slower 1 percent.
Excluding trade with neighboring Botswana, Lesotho, Namibia and Swaziland, the country posted a trade gap of ZAR 3.64 billion in December. From January to December, the trade deficit was ZAR 109.72 billion, compared to a ZAR 157.9 billion gap in 2015.
The South African Revenue Service (SARS) today released trade statistics for December 2016 recording a trade balance surplus of R12.04 billion. The year-to-date deficit (01 January to 31 December 2016) of R2.92 billion is an improvement on the deficit for the comparable period in 2015 of R52.18 billion. These statistics include trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS).
Including trade data with BLNS
The R12.04 billion trade balance surplus for December 2016 is attributable to exports of R93.03 billion and imports of R80.99 billion. Exports decreased from November 2016 to December 2016 by R6.03 billion (6.1%) and imports decreased from November 2016 to December 2016 by R19.75 billion (19.6%).
Exports for the year-to-date (01 January to 31 December 2016) grew by 5.8% from R1 036 billion in 2015 to R1 096 billion in 2016. Imports for the year-to-date of R1 099 billion are 1.0% more than the imports recorded in January to December 2015 of R1 088 billion.
On a year-on-year basis, December 2016’s R12.04 billion trade balance surplus is an improvement from the surplus recorded in December 2015 of R7.04 billion. Exports of R93.03 billion are 6.3% more than the exports recorded in December 2015 of R87.51 billion. Imports of R80.99 billion are 0.6% more than the imports recorded in December 2015 of R80.47 billion.
November 2016’s trade balance deficit was revised upwards by R0.59 billion from the previous month’s preliminary deficit of R1.09 billion to a revised deficit of R1.68 billion as a result of ongoing Vouchers of Correction (VOC’s).
Trade highlights by category
The main month-on-month export movements (R’ million) | ||
Section: | Including BLNS: | |
Vehicles & Transport Equipment | - R 4 704 | - 35% |
Machinery & Electronics | - R 1 417 | - 16% |
Precious Metals & Stones | - R 1 001 | - 6% |
Base Metals | - R 887 | - 8% |
Prepared Foodstuff | - R 624 | - 14% |
Other Unclassified | - R 490 | - 53% |
Plastics & Rubber | - R 451 | - 20% |
Chemical Products | - R 446 | - 7% |
Vegetable Products | + R 1 067 | + 34% |
Mineral Products | + R 3 435 | + 15% |
The main month-on-month import movements (R’ million) | ||
Section: | Including BLNS: | |
Machinery & Electronics | - R 6 006 | - 24% |
Equipment Components | - R 3 124 | - 53% |
Chemical Products | - R 2 092 | - 20% |
Base Metals | - R 1 510 | - 29% |
Textiles | - R 1 411 | - 38% |
Plastics & Rubber | - R 1 336 | - 30% |
Prepared Foodstuff | - R 1 304 | - 32% |
Toys & Sport Apparel | - R 958 | - 45% |
Photographic & Medical Equipment | - R 672 | - 22% |
Live Animals | - R 475 | - 30% |
Mineral Products | + R 1 423 | + 10% |
Trade highlights by world zone
The world zone results from November 2016 (Revised) to December 2016 are given below.
Africa:
Trade Balance surplus: R16 868 million – this is a 10.9% decrease in comparison to the R18 923 million surplus recorded in November 2016.
America:
Trade Balance deficit: R1 836 million – this is a 25.3% decrease in comparison to the R2 459 million deficit recorded in November 2016.
Asia:
Trade Balance deficit: R3 625 million – this is a 70.8% decrease in comparison to the R12 407 million deficit recorded in November 2016.
Europe:
Trade Balance deficit: R2 962 million – this is a 75.8% decrease in comparison to the R12 241 million deficit recorded in November 2016.
Oceania:
Trade Balance deficit: R 719 million – this is a deterioration in comparison to the R 208 million surplus recorded in November 2016.
Excluding trade data with BLNS
The trade data excluding BLNS for December 2016 recorded a trade balance surplus of R3.64 billion. This was as a result of exports of R82.33 billion and imports of R78.69 billion.
Exports decreased from November 2016 to December 2016 by R3.57 billion (4.2%) and imports decreased from November 2016 to December 2016 by R18.50 billion (19.0%).
The cumulative deficit for 2016 is R109.72 billion compared to R157.90 billion deficit in 2015.
Trade highlights by category
The main month-on-month export movements (R’ million) | ||
Section: | Excluding BLNS: | |
Vehicles & Transport Equipment | - R 4 310 | - 35% |
Precious Metals & Stones | - R 1 128 | - 7% |
Machinery & Electronics | - R 818 | - 12% |
Base Metals | - R 560 | - 5% |
Other Unclassified | - R 490 | - 53% |
Prepared Foodstuff | - R 416 | - 14% |
Vegetable Products | + R 1 191 | + 50% |
Mineral Products | + R 3 366 | + 16% |
The main month-on-month import movements (R’ million) | ||
Section: | Excluding BLNS: | |
Machinery & Electronics | - R 5 847 | - 24% |
Equipment Components | - R 3 124 | - 53% |
Chemical Products | - R 1 889 | - 20% |
Base Metals | - R 1 473 | - 29% |
Plastics & Rubber | - R 1 309 | - 30% |
Prepared Foodstuff | - R 1 204 | - 34% |
Textiles | - R 1 066 | - 35% |
Toys & Sport Apparel | - R 934 | - 45% |
Photographic & Medical Equipment | - R 671 | - 22% |
Live Animals | - R 465 | - 34% |
Mineral Products | + R 1 416 | + 10% |
Trade highlights by world zone
The world zone results for Africa excluding BLNS from November 2016 (Revised) to December 2016 are given below.
Africa:
Trade Balance surplus: R8 469 million – this is a 9.1% decrease in comparison to the R9 313 million surplus recorded in November 2016.
Trade statistics with BLNS (only)
Trade statistics with the BLNS (Botswana, Lesotho, Namibia and Swaziland) for December 2016 recorded a trade balance surplus of R8.40 billion. This was a result of exports of R10.70 billion and imports of R2.30 billion.
Exports decreased from November 2016 to December 2016 by R2.46 billion (18.7%) and imports decreased from November 2016 to December 2016 by R1.25 billion (35.2%).
The cumulative surplus for 2016 is R106.80 billion compared to R105.72 billion in 2015.
Trade Highlights by Category
The main month-on-month export movements (R’ million) | ||
Section: | BLNS: | |
Machinery & Electronics | - R 599 | - 31% |
Vehicles & Transport Equipment | - R 394 | - 31% |
Base Metals | - R 327 | - 35% |
Textiles | - R 208 | - 30% |
Prepared Foodstuff | - R 208 | - 13% |
Chemical Products | - R 206 | - 18% |
Plastics & Rubber | - R 160 | - 27% |
Precious Metals & Stones | + R 127 | + 20% |
The main month-on-month import movements (R’ million) | ||
Section: | BLNS: | |
Textiles | - R 344 | - 49% |
Precious Metals & Stones | - R 244 | - 88% |
Chemical Products | - R 203 | - 21% |
Machinery & Electronics | - R 159 | - 55% |
Mineral Products | + R 6 | + 12% |
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Africa to speak in one voice on key issues to boost women’s economic empowerment at CSW61
The Africa Ministerial Pre-Consultative Meeting convened in Addis Ababa to prepare for the upcoming 61st session of the UN Commission on the Status of Women (CSW61) concluded successfully with a unified Africa position, “One Africa One Voice”.
Held from 26-27 January, the meeting gathered 235 participants, including 46 Member States represented by Ministers of Gender and Women’s Affairs, senior government officials and Ambassadors to the African Union (AU) at the United Nations Economic Commission for Africa (UNECA) Headquarters in Ethiopia. Also present were senior officials from the African Union Commission (AUC), the United Nations system, development partners and representatives of civil society organizations, including youth and young women’s organizations.
The meeting served as a platform to develop key messages and strategies that would shape Africa’s position and advocacy for the outcome negotiations at CSW 61, to be held in New York from 13-24 March, focusing on the theme of “Women’s Economic Empowerment in the Changing World of Work”.
In her opening remarks, the UN Women Executive Director, Phumzile Mlambo-Ngcuka, emphasized that as the largest regional block within the United Nations, “Africa has the potential to influence key decisions in the United Nations, including outcomes of the Commission on the Status of Women and other intergovernmental processes.”
During the meeting, participants recognized the importance of addressing women’s rights to decent work and full and productive employment, and reaffirmed that realizing women’s economic empowerment requires transformative and structural changes. Member States engaged key stakeholders, including the private sector, youth, faith-based organizations, civil society and development partners, in discussions on how to support governments to ensure women’s economic empowerment in the changing world of work, marked by innovations, technology and data revolution. Also highlighted throughout the meeting was the diverse contexts of African countries and that the countries in conflict, post-conflict and fragile contexts have unique and specific needs.
In the closing session, the Chairperson of the African Union Commission at the time, Nkosazana Dlamini-Zuma, appealed to the participants to continue to ensure that the women’s rights agenda is not reversed, stressing that gender equality and women’s empowerment must be ensured for future generations. Appealing to the youth, she called on them to acknowledge that their “horizons are much wider than ours” and that they could “go further…and [have] what it takes to reach beyond the skies”.
The two-day meeting built consensus that the focus should be on: strengthening investments in the demographic dividend of African women and youth, particularly young women; implementing gender-responsive macro-economic policies; strengthening accountability mechanisms for women’s economic empowerment; and ensuring women’s full, equal and effective participation and leadership at all levels of decision-making concerning economic and social policies. The discussions also highlighted women’s leadership in peace, security and humanitarian action; achieving safe and informed mobility for women locally, nationally, regionally and internationally; enhancing social protection policies, infrastructure and public services for women; ensuring women’s full access to and control over productive resources, services and markets; and eliminating discriminatory laws, regulations, practices and stereotypes that hinder the protection and progress of women in the world of work.
As the meeting concluded, UN Women Executive Director Ms. Mlambo-Ngcuka urged Member States to build on the momentum gained during the meeting as they head into CSW61 negotiations. She also proposed a systematic evaluation in 2020 to measure progress in key areas, such as equal pay for equal value of work, the level and quality of participation of women in all decision-making bodies, the participation of young people, the adaption of policies that better address the abnormalities in the informal sector and on discriminatory laws.
“As Africa, we need to be a leading positive catalyst”
Closing remarks by Phumzile Mlambo-Ngcuka, UN Under-Secretary-General and Executive Director of UN Women, at the Africa Pre-CSW 61 Consultations in Addis Ababa
Let me thank all of you for the fruitful discussion we have had on the important topics covering the opportunities and challenges that are presented by Africa’s demographic profile. I thank you too for our pre-CSW 61 discussions, and the plans we are engaged in that aim at building one strong African voice for CSW 61. It is a voice that will make sure that African concerns are well-considered in the Agreed Conclusions; a voice that will make sure that Africa’s Member States, who make up more than 25 per cent of the UN, will work in Africa’s favour, and in support of a progressive global agenda that is in line with the Sustainable Development Goals (SDGs) and the 2030 Agenda for Sustainable Development.
The discussions we have had are very important and timely, given the unique opportunity for Africa to be an even stronger leader within the G77 plus China group, and within the UN. This is an opportunity that we need to take full advantage of.
The meeting also helped to explain how the Commission on the Status of Women (CSW) works, which is especially important for the new Ministers of Gender. I thank you for your interest and your questions and for the attention you paid to get to the fundamentals of CSW. I also want to thank all of you for the intense discussions we had in the Gender is my Agenda Campaign, and all of the four days, especially the active participation of civil society as well as youth.
We discussed practical steps to ensure that the Departments of Foreign Affairs and Ministers of Gender work collaboratively during CSW. We discussed that we do not allow experts to renegotiate positions that have already been adopted by the Member States, such as those within the Beijing Platform for Action, CEDAW, and the Maputo Protocol as well as the SDGs. In that regard, we were pleased to have a meeting between the Ministers of Foreign Affairs, our STC representatives, where we discussed a common approach to the deliberations at CSW 61 and beyond.
CSW is the biggest intergovernmental body in the world that considers matters affecting women and girls; it is also affected by the geopolitics of the day. We recognized how the changing geopolitics could impact CSW 61 negotiations because it will be the first big intergovernmental body that will meet after the many changes. We bear in mind that, as Africa, we need to be a leading positive catalyst on that global stage and help guide the intergovernmental politics at our CSW 61 to reach positive conclusions.
Our deliberations here in Addis have produced forward-looking conclusions, and the strength of our ministers has been truly encouraging.
We agreed to renewed efforts to invest in young women’s and girls’ education, especially in Science, Technology, Engineering and Mathematics (STEM), and to ensure that comprehensive sexuality education is accessible as means to protect the youth from unwanted pregnancy, HIV and AIDS, and to protect their sexual and reproductive health and reproductive rights, as envisaged in the Maputo Protocol.
We agreed to invest in agro-business and for women to be a part of this growing industry. We highlighted the importance of investing in the green economy and leveraging the digital revolution, especially for our youth.
We agreed that we will strengthen the Youth CSW as one of the platforms that we will use to build young women and girls as leaders within their countries and the world. So, I ask countries to make sure that your delegation to the CSW includes youth and civil society, and that national delegations will work together as a team.
We agreed to ensure that, as we reinforce access to education for girls, we will also ensure retention, completion and giving girls second chances in education.
We also agreed to recognize that we need targeted approaches to special needs for women in conflict, post-conflict and fragile states, so that our efforts to empower them economically are in context.
We agreed to make sure that we reduce the burden of unpaid care work on women, including by supporting the development of infrastructure, especially water, sanitation and energy. We saw the importance of extending affordable child care as a part of reducing the burden of care on women.
We also adopted coordinated approaches against transnational slavery, human trafficking, and the shocking exploitation of women and girls, and agreed to bring this to the attention of the world, as this is the scourge that we must be committed to end.
We agreed to accelerate the recognition of women’s land rights and to ensure that the benefits of this industry fully accrue to women.
We have proposed ways of building on the momentum that we have gained here in order to make sure that when we reach CSW, and when we discuss the theme of the changing world of work and its impact on women, we will be fully cognizant of all our continent’s complexities.
We encouraged one another to celebrate International Women’s Day loudly, in all our countries. We will make sure that we embrace the theme of International Women’s Day, which covers the women’s world of work, but also focuses on reaching Planet 50-50 by 2030 – achieving substantive gender equality by 2030. The SDGs are a roadmap that will guide us to that destination.
I want to highlight the fact that UN Women is proposing that we evaluate progress in 2020. This will be 25 years after the adoption of the Beijing Declaration and Platform for Action.
We would like to see that we have made progress on equal pay by 2020. The Millennials and the young people must not experience unequal pay like we have done.
As UN Women we are proposing that in 2020 we systematically evaluate the level and the quality of participation of women in all decision-making bodies, as well as the participation of young people. We also want in that year to evaluate how far we have come with adapting our macroeconomic and fiscal policies to be able to address the abnormalities in the informal sector. In addition, we would like in 2020 to look at the progress we make in addressing the laws that discriminate against women. As we speak, 80 per cent of countries in the world still have one or more laws that discriminate again women, with a number of them on our continent.
We also agreed that we will ask this forum to make sure that in 2020 we have a systematic mechanism to evaluate the progress that we will be making in relation to ending FGM and child, early and forced marriages. We also as UN Women would like to see that by 2020 we have a formidable programme to address and to provide second chances to women and girls who left school before it was time.
So, we have an intensive programme, because if we achieve in all of these key areas we can bring about change that lasts.
We have recognized that with all the work we have done in the 20 years of advancing the Beijing Platform for Action, we have gone forward and we have also gone backwards. We have therefore looked at the areas that we need to work on so that the changes we need to make will not be taken away from us.
Thank you for giving us an opportunity to listen to you, and to urge you to work with us in these joint endeavors.
I would also ask us all to wish Madame Chair well as she embarks on her new journey. As we bid you farewell, Madame Chair, we want to thank you for your hard work and for raising the agenda for women to this high level within the AU and beyond. You leave a legacy that we are all committed to protect and to heighten to the best possible levels within and beyond our continent.
You can count on UN Women, the broader UN family and our Secretary-General Antonio Guterres, who has already made it clear that he wants us to do more and better for Africa. Thank you for supporting UN Women and for opening up avenues that enhance our involvement with the AU.
Thank you for your attendance – despite the competing needs and priorities in your schedule – at 2015’s Global Leaders’ Meeting on gender Equality and the Empowerment of Women, which we co-hosted with China during the UN General Assembly.
You have laid a solid foundation of action. I especially thank you for raising the flag on education, which, like you I believe is the closest thing we have to a silver bullet for the issues facing our demographic profile and the future of our beautiful continent.
Thank you for focusing on agriculture, which is a path to take in addressing African poverty and the empowerment of the millions of women who are the working poor in Africa, along with the women in the informal sector.
I salute you for taking up the fight on harmful cultural practices in Africa to the level of becoming one of the entrenched areas of work for the Sustainable Development Goals. We will continue to need your voice and to unite Africa in the vision that you have championed so strongly.
We are proud of the fact that when the SDGs were negotiated, Kenya was the co-Chair, Uganda was the President of the General Assembly and South Africa was Chairing G77 plus China. I had the privilege of being able to reach out to these three colleagues whenever we needed them as the negotiations unfolded. We were assured at every turn of their total commitment for an engendered outcome and a better world, and they did it.
The SDGs represent the most comprehensive agreement by UN Members since the adoption of the UN Charter, and the first after the Beijing Platform for Action to be so engendered. Member States worked with all partners, something which I have also learnt to embrace strongly. They worked as a team. This is a good thing for all of us to take as a lesson – that when we work together we are stronger and the outcomes we achieve are stronger.
Thank you ECA for embracing us, for supporting us, for providing the logistics and the intellectual contributions that helped our discussion.
Thank you to the AU for everything that you have done. We felt you every step of the way; when we were preparing and when we were here, and we know that you will always be beside us.
I also thank my team – the UN Women staff – for the work that you have done. Thank you for the dedication that ensured that in the SDGs negotiations we looked at every comma and full stop, so that anything and everything that we could grab for women was inside those negotiations. Thank you for that level of dedication.
And to the Minister, thank you for your time, thank you for the sleepless nights and thank you for the guidance. I look forward to this passion and dedication at CSW 61 and beyond.
To our young people – you rock. It has been wonderful to work with you, to be challenged by you, to be mentored by you and to be given new and brilliant ideas by you.
Thank you to civil society for always making sure that you help us to raise the bar and to be better.
I now would like to invite the young people to say thank you to the Chairperson of the AU and to give her a small token of our appreciation.
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Kenyan manufacturers identify five key areas to rev up sector
Manufacturers in Kenya have listed five priority areas to jump start a sector that has experienced a slump in the recent past, growing slower than the GDP since 2014.
At the top of the manufacturer’s agenda is a review of the regulatory policy framework that will support the sector under the devolved system.
Other focus areas unveiled by the Kenya Association of Manufacturers (KAM) include infrastructure expansion, enhancing local content, long-term financing access and SME expansion.
The priority areas, if pushed through, aims to increase the sector’s contribution to the GDP, spur job creation and increase foreign exchange earnings.
The manufacturing sector grew at a dismal rate of 1.9 percent in the last quarter of 2016 against a target of 8.7 percent set by the Vision 2030’s Medium-term Plan II.
“When compared to other rapidly industrialising nations, Kenya’s manufacturing sector growth rate is the lowest. Vietnam has grown at its highest ever rate in the last five years but it still falls short of Ethiopia which grew at 15.8 percent,” notes KAM’s 2017 Agenda report.
The report further says Kenya’s service-driven economic growth could lead to a jobless growth, “which is unsustainable in the long term.”
The Association’s Chief Executive Phyllis Wakiaga says creating and expanding markets locally and internationally remains a crucial factor to grow the country’s manufacturing output.
“We also want to see improved operational excellence within the sector and grow the number of manufacturers in the country,” says Wakiaga.
The turnaround plan comes as exports to the key EAC market declined by 23 percent, a factor that contributed to the dwindling manufacturing sector over the last two years.
The association says the Buy-Kenya, Build-Kenya policy through the preference and reservation regulations will tighten the 40 percent local content requiring the government to buy goods made in Kenya.
Creating Jobs a Priority for Industry in 2017
Manufacturers unveil focus areas toward achieving Industrialization
Kenya Association of Manufacturers have launched this year’s Manufacturing Priority Agenda 2017 under the theme “Driving industrial transformation for job creation and inclusive economic growth”.
The MPA focuses on emerging public policy, a review of the current business environment and relevant regulations, as well as a vision to industrialize for the benefit of Kenya’s economy. The guide details the need for investment in technical skills, creating a nurturing environment for SMEs with a special emphasis on women and youth enterprises, and making Kenya an export hub thereby increasing the competitiveness for local business.
During his keynote address, Principal Secretary, State Department of Industry and Investment Mr. Julius Korir stated that the government is keen on working with private stakeholders to achieve the manufacturing agenda. “The government is working towards ensuring that the manufacturing agenda becomes the only government agenda. I’m glad to see that the recommendations made in this year’s Manufacturing Priority Agenda are aligned with the Kenya Industrial Transformation Programme.”
KAM Chairlady, Ms. Flora Mutahi stated that KAM will continue to work with the Government and other stakeholders towards the development of the industry. “The Government has indeed shown willingness to engage with Industry towards the realization of vision 2030 from our past MPAs. This year we look forward to working even more closely, not just to advocate for better regulations for business, but more so to develop a manufacturing policy that will address issues of inclusive growth and economic stability for our nation. We strongly believe industrialization of our country should be a priority for all citizens, with a view to drive the creation of wealth and productive jobs.”
Additionally, on elections Ms. Mutahi said, “Elections are supposed to be a process and not a deterrent to our current democratic progress. Hence as the business community, we would like to see a show of leadership from both the opposition and current government in guiding a peaceful and transparent transition.”
The priority areas will be driven under five key pillars which, if strengthened, will lead to a more competitive environment and impactful economic gains for Kenya’s industrial sector. These are;
Pillar One: Policy, Legal and Regulatory Reforms
Pillar Two: Level playing field for manufacturing in Kenya
Pillar Three: Competitive Local Manufacturing Sector
Pillar Four: Make Kenya a manufacturing hub for Exports
Pillar Five: Securing the future of Industry
KAM Chief Executive, Ms. Phyllis Wakiaga stated that the MPA has been an instrumental tool in advocating for the growth of the industry over the years. “By clearly articulating our issues on previous MPAs, we have seen the Government stepping in, as our partner, to resolve critical matters such as VAT refunds, interventions on budget proposals (increased taxation on imported steel products) and their support on the ratification of EPAs among other major wins. We are confident that this year we shall achieve a lot under our theme, driving industrial transformation for job creation and inclusive economic growth, as we aim to make sustainable socio-economic impact.”
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Kagame presents reforms proposal to African leaders (New Times)
Kagame presented the report titled, “The Imperative to Strengthen Our Union,” on the sidelines of the ongoing 28th African Union Summit in the Ethiopian capital. Following the presentation, African leaders present welcomed the proposed reforms, which seek to realign and re-energise the Union to improve performance and connect better with citizens by delivering on the institution’s agenda. The retreat’s final outcomes are set to be presented for adoption at the summit during a formal session later today, during which the proposal on reforms will be tabled to the General Assembly.
ACBF releases three reports on capacity development imperatives for Agenda 2063:
Capacity requirements for the new African vision Agenda 2063 (pdf): This study provides a conceptual and operational framing of imperatives and capacity issues required for delivering Agenda 2063. The nature of the assignment required a flexible system to be used for consultation, information and data gathering, and analysis. The findings in this report are derived from high-level interviews and discussions with key organizations, initial consultations with other key stakeholders and knowledgeable individuals, and analytical work.
Capacity development plan framework buttressing implementation of the First 10-Year Plan (pdf): The AUC decided to assess the capacities required for implementing Agenda 2063 at the continental and regional levels (and subsequently at the national level) and worked closely with the ACBF, which led the exercise conducted by the Capacity Team in 2015. This capacity development plan (CDP) document proposes multilevel and multi-stakeholder CDPs that identify an initial set of foundational capacity-strengthening activities for the First 10-Year Implementation Plan of Agenda 2063.
African critical technical skills - key capacity dimensions needed for the First 10 Years of Agenda 2063 (pdf): This study produced by the ACBF in conjunction with the AUC observes that the single biggest challenge to ownership of Africa’s development agenda and management of its key development programs is grounded in the issue of critical technical skill (CTS) in Africa. Considering the huge importance of capacity dimensions for Agenda 2063, it might be helpful to incorporate within AU system the continued partnership support of the ACBF on issues of capacity imperatives and robust African skills development for Agenda 2063.
Ibrahim Assane Mayaki: ‘Nepad could become African UNDP’ (Jeune Afrique)
ECA and African Peer Review Mechanism sign MoU for improved cooperation
AU set to harmonize electricity regulation on the continent (New Times)
The AU’s Commissioner for Infrastructure and Energy, Elham Ibrahim, said on Friday that the continental body has developed a strategy and action plans that will be undertaken at the national, regional and continental level in ensuring the development of the regional electricity markets. "The AUC intend to have the framework become effective in the next three years once it is approved by the African Energy Ministers in March 2017," she noted at a press conference in Addis Ababa. She said that the framework will help create a robust economic regulation, create enabling renewable energy framework, and establish standards for energy efficiency.
Nigeria signs AU Convention on Cross Border Cooperation (Premium Times)
Nigeria on Sunday signed the African Union Convention on Cross Border Corporation as part of the side line events at the ongoing 28th African Union Summit in Addis Ababa. The Niamey Convention (pdf), which was adopted in 2014, is to promote Cross Border Corporation at local, sub-regional and regional levels with the aim of ensuring peaceful resolution of border disputes. It is also to ensure efficient and effective border management. [Reposting: Addis Ababa Declaration on the African Union Border Programme and measures for its consolidation]
Benin hit by neighbouring Nigeria’s car import ban (AFP, Arab News)
There has not been a single customer since December, when neighboring Nigeria banned car imports by land as part of a wave of protectionist policies that are strangling Benin’s economy. This afternoon, Hijazi — who, like the vast majority of car dealers in Benin, is Lebanese — called in his Beninese accountant to help close up shop. Debts are accumulating and the stress is becoming too much. “I lost in one year what I have earned in 16,” Ali Assi, another car dealer, said. Of the 2,500 Lebanese dealers in Cotonou, 1,600 have packed up and left in the last six months, shutting down businesses that employed dozens of drivers, cleaners and security staff.
Egypt’s thawing relations with the Nile Basin Initiative (Ahram)
The Nile Basin Initiative is currently preparing a delegation to visit Cairo to discuss Egypt’s possible return to the regional grouping after seven years of inactivity, the initiative’s head said. “Hopefully by March, the NBI can send the delegation if formed, and successful talks would depend on the Egyptian authorities,” Innocent Ntabana, the executive director of the initiative, told Ahram Online by phone earlier this month from Entebbe. Egypt froze its participation in the bloc in 2010, but last July, Egyptian Irrigation Minister Mohamed Abdel Ati attended the 24th annual meeting of the NBI’s Nile Council of Ministers in Uganda, a move viewed as partial return of the northern African nation to active participation in the group. From the perspective of many Egyptians, neither the minister’s move nor the NBI’s anticipated visit to Cairo have been that significant, due to their lack of information about the Nile states’ relations.
Christine Lagarde: ‘Uganda’s development challenge’ (IMF)
In addition, there is another “community” emerging in Africa: the community of cross-border banks. Some are Pan-African Banks. Others are regional institutions, as in East Africa. These African banks have moved into the space vacated by other international banks that withdrew from the region after the global financial crisis. This offers new opportunities for countries such as Uganda. But it also presents new challenges for bank regulation and supervision that require unprecedented cooperation. So far, I have focused on infrastructure, institutions and regional integration. What does that leave?
Aubrey Hruby: ‘The developmental difference of African private equity’ (Beyond Brics, FT)
In a study of 200 African companies backed by PE between 2009 and 2015, the African Venture Capital Association (AVCA) found that companies generated a net increase of 10,990 jobs. FMO, the Dutch development finance institution (DFI), backed PE funds and companies across development countries that created 858,000 direct jobs in 2015. Its UK counterpart, CDC, reported creating over a million new direct and indirect jobs in Africa and Asia. More jobs, especially for women, increase health and educational attainment and contribute to the overall sustainable development goals. [Recent AVCA reports]
Is Kenya ready to tax the digital economies? (Business Daily)
Kenya has plans in motion to be the Silicon Valley of Africa, dubbed the Silicon Savannah. The plans are commendable and would contribute significantly to the economy of the country. The tax revenues potential, which are a significant part of such contributions, cannot be realised without tax laws that are up to date. Kenya will be sending the KRA to a guns and machines war, only armed with bows and arrows. We all know how that will end. The KRA will lose badly as it did in a recent case against one of the international taxi-hailing app company. Let’s not spend billions of shillings to build tech cities like Konza but fail to reap the fair benefits because we failed to pay attention to a critical component — modernisation of our tax laws. [Atlas Mara, Visa sign deal to improve access to e-payment facilities]
Download the presentations from last week’s TMEA/ICTSD workshop: ‘Leveraging services and digital potential for inclusive economic growth’
Accelerating the IFF agenda for African countries (GFI)
Below is a list of fourteen measures governments can take in the immediate term to catalyze their efforts to combat IFFs. Brief explanations of each measure are included in the pages that follow.
A recipient perspective on TOSSD: the case of Senegal (pdf, OECD)
The international community then took note of TOSSD [Total official support for sustainable development] in the Addis Ababa Action Agenda in July 2015, calling for “open, inclusive and transparent discussions” on this proposed measurement framework. As part of the overall roadmap to develop this framework, a first recipient country pilot was carried out in Senegal in April/May 2016. Its main objective was to contribute to the elaboration of TOSSD as a statistical framework that is useful and relevant to developing countries. The country pilot study garnered feedback from key actors on the ground relating to the relevance of TOSSD for the specific Senegalese country context. Consequently, possible adjustments to the main building blocks of TOSSD have been identified, which will prove crucial to further take into account the perspective of developing countries into the framework.
Nigeria, Chad need $50bn to refill Lake Chad (News Agency of Nigeria)
Nigeria’s Foreign Affairs Minister Geoffrey Onyeama said it was going to cost about $15m or more to do a comprehensive feasibility study on recharging of Lake Chad. “The cost of recharging is in the neighbourhood of $15bn to $20bn. I pointed out that we are looking at the possibility of organising international donor conference to look for fund to addressing this issue." The lake had shrunk to about 10% and has had catastrophic effect on the people living in that area. Nigeria is looking at in that context of the possibility of recharging the lake from a river from Central Africa, the Rangin River, he said.
Nigeria-India trade volume drops to $12bn in 2016 (Daily Trust)
The Acting Indian High Commissioner, Mr. Kaiser Alam, has said that the trade volume between Nigeria and India dropped from $16bn in 015 to $12bn in 2016. Speaking at a reception in Abuja to mark the 68th Republic Day of India, the envoy said the fall was because of declining oil price in the international market. “We were importing the same amount but the oil prices came down. Above all, our trade was the same and the trade surplus was in favour of Nigeria.”
South Africa, Thailand to sign investment MoU (EIN News)
According to the Acting Head of ISA, Mr Yunus Hoosen, officials from the KwaZulu-Natal-based Richards Bay Industrial Development Zone will be part of the delegation. They will be on a mission to attract Thailand automotive component manufacturers to invest in the RBIDZ. “We are optimistic that the implementation of the MoU will see Thai investors setting up manufacturing plants in South Africa resulting in job creation,” adds Hoosen. The latest statistics show that total trade between South Africa and Thailand in the first three quarters of 2016 reached R29.9bn, a 24.3 % increase from R24bn achieved in the same period of 2015.
Zimbabwe: State to review 5% export incentive (The Herald)
Government will undertake a review of the 5% export incentive in favour of value addition with a proposal to increase the incentive up to 10% for exporting manufacturers. This is contained in the ZimTrade’s Export Capacity Feedback Report Mid-Term Review under the Ease of Doing Business in Zimbabwe presented last week by thematic group leader Salie Khan. Draft proposals for the review of the export incentive are being considered by the Reserve Bank of Zimbabwe and the Bankers Association of Zimbabwe.
Available data for Africa points to an 8% rebound in international arrivals in 2016 after two troubled years, adding 4 million arrivals to reach 58 million. Sub-Saharan Africa (+11%) led growth, while a gradual recovery started in North Africa (+3%). Based on current trends, the outlook of the UNWTO Panel of Experts and economic prospects, UNWTO projects international tourist arrivals worldwide to grow at a rate of 3% to 4% in 2017. Europe is expected to grow at 2% to 3%, Asia and the Pacific and Africa both at 5% to 6%, the Americas at 4% to 5% and the Middle East at 2% to 5%, given the higher volatility in the region. [Various downloads]
Today’s Quick Links:
EALA enacts two key Bills as it adjourns
Sun sets on Angolan dream for Portuguese expats
Revival beckons for Sudan as US lifts economic sanctions
Africa the new frontier for AB InBev
Tazara gets 165000 tonnes of new freight orders this year
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ACBF hands over the study reports on the capacity imperatives for Agenda 2063
The Executive Secretary for the African Capacity Building Foundation (ACBF), Prof. Emmanuel Nnadozie, officially handed over three Study reports on capacity development imperatives for Agenda 2063, to the Chairperson of the African Union, H.E. Dr. Nkosazana Dhlamini-Zuma, on Wednesday, the 25th of January, 2017 in Addis Ababa.
The AUC commissioned ACBF to undertake this study, in recognition of the centrality of capacity development to the effective implementation of Agenda 2063. The study was released in three volumes which are
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Capacity Requirements for the New Africa Vision. This provides the conceptual and operational framing of imperatives and capacity issues required for delivering Agenda 2063;
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Capacity Plan Framework for Agenda 2063. The Framework proposes multi-level and multi-stakeholder Capacity Development Plan that identifies an initial set of foundation capacity strengthening activities for the first 10-year implementation; and
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African Critical Technical Skills which shows the critical technical skills needed to implement the flagship projects and AU priority programs in support of Agenda 2063.
Dr Zuma expressed her gratitude to the contribution that ACBF is making in the area of capacity development and said that this symbolic handover ceremony is a clear demonstration of the importance of joint collaboration of pan African institutions that share the same aspirations to develop Africa and understand the spirit of complementarity and not competition. She echoed the need for the same collaboration to be duplicated by other institutions.
In his handover remarks, Professor Emmanuel Nnadozie also thanked the AUC, particularly the Bureau of the Chairperson and the Strategic Planning Department for the key role played in the production of these documents, as well as other partners that include the ECA, AfDB and CAPDEV. He also underlined the need for African countries and their development partners to take forward the recommendations from the three studies presented, in order to fill the capacity gaps that are hindering the implementation of Agenda 2063.
The handover ceremony took place on the sidelines of the 30th Ordinary Session of the Executive Council of the African Union.
These Reports are a product of the African Capacity Building Foundation (ACBF). The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the ACBF Executive Board or Board of Governors.
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28th Ordinary Session of the AU Assembly opens against the backdrop of renewed commitment for peace and unity in the continent
The 28th Summit of the Heads of State and Government of the African Union (AU) officially opened today at the headquarters of the African Union in Addis Ababa, Ethiopia with a strong call for unity to uphold the maintenance of peace and stability in the continent.
The Nelson Mandela plenary hall was full to capacity with delegates and special invitees coming to witness the important event. They heard from distinguished speakers who took their turn on the podium to enlighten the world on the progress made so far in the continent and some of the challenges that Africa faces, as well as proposals for the way forward.
The event this year is holding under the AU theme: “Harnessing the Demographic Dividend through Investments in the Youth”.
The outgoing Chairperson of the Union, President Idriss Deby Itno of the Republic of Chad declared open the official ceremony of the 28th AU summit before handing over the baton of command to the newly elected Chairperson of the African Union, H.E Alpha Conde, President of the Republic of Guinea who in his acceptance speech said: “It is with honor and humility that I accept to preside at the destiny of our Organisation during the year 2017 and I promise to ensure that we implement all the objectives we have set to achieve during this period with the view to enhance the development of our continent”.
Meanwhile, outgoing Chair President Deby wished a happy new year 2017 to all the delegations and invited guests while underscoring the need to continuously preserve peace, stability and prosperity in the continent. He expressed his appreciation to H.E Dr. Nkosazana Dlamini Zuma, Chairperson of the AU Commission and her team including the Commissioners and staff of the AUC, for the support given to him during his mandate as Chair of the Union. He commended the Commission and the Government of Ethiopia for the successful organisation of the 28th AU Summit.
On the other hand, President Idriss Deby warmly welcomed the newly elected Presidents of the Gambia, Ghana, Sao-Tome and Principe and Seychelles, who worn through a democratically electoral process organized in their respective countries. He also warmly welcomed H.E Mr. Mahamoud Abbas, President of the State of Palestine and the new UN Secretary General, Mr. Antonio Guterres to Africa, wishing him success in his new functions and reiterates the support of the African people to the UN given that “Africa has found in Mr. Guterres a sincere, committed and sensible person who will stop at nothing to address the issues currently faced by the continent”.
Speaking at the opening ceremony of the 28th Summit of the African Union, Dr Nkosazana Dlamini Zuma, Chairperson of the African Union Commission (AUC) warmly welcome to the UN Secretary on his first AU Summit in this capacity. “We appreciate the appointment of our sister Amina J. Mohamed of Nigeria as Deputy Secretary General of the UN, and congratulate her on this new responsibility,” underlined the AUC Chairperson while extending a special welcome to the members of the Assembly whose mandates were renewed and to the newly elected Heads of State, since last Summit.
Dr. Dlamini Zuma recalled that the year 2017 is heralded by some important developments. She said last year, Cuba, Africa and the world bid farewell to the greatest revolutionary and internationalist of our time, Fidel Aleandro Castro Ruz. “He played a critical role in the global struggle against colonialism and imperialism, and for non-alignment and unity of the countries of the South… His sustained contributions to Africa are legendary: the support to liberation movements, to newly-independent states, in the development of African education and health systems; the training of health personnel, all in the spirit of solidarity, friendship, internationalism and mutual respect”.
The AUC Chairperson said “this year marks a number of historical milestones. Firstly, 2017 marks 55 years since the formation of the Pan African Women’s Organisation (PAWO) in 1962, a year before the OAU. The women came from newly independent states and liberation movements, determined to play their role, side by side with the menfolk, in liberating Africa. She added that “the women’s movement, as we celebrated the OAU/AU Golden Jubilee in 2013, recognized the role of the founder mothers.
Dr. Dlamini Zuma emphasized that in tribute to the founding mothers, it is therefore appropriate that the Assembly recognizes PAWO as a Specialized Agency of the African Union. “The task of PAWO today is to continue the struggle for the empowerment of girls and women, through education and skills, in the political, social, cultural and economic spheres. They must continue to advocate and work for a peaceful and safe Africa for all its people…Without this mobilization of women, progress on Agenda 2063 will be slow... As we start this year of youth, we must indeed commit to value our youth and deserve Africa’s future,” underscored the AUC Chairperson.
The United Nations Secretary General, H.E António Manuel de Oliveira Guterres, who was addressing the AU Summit for the first time as special guest also expressed strong support for the AU’s annual theme: “Harnessing the Demographic Dividend through Investments in the Youth”. He reiterated the will for the UN to support by the African people and contribute fully to the peace missions in the continent.
H.E. Mr. Mahmoud Abbas, President of the State of Palestine and Chairman of Palestine Liberation Organization (PLO) Executive Committee thanked the African Union for the support to his government’s desire and efforts to achieve a Palestinian state living side by side with the state of Israel as an independent state with distinct borders. He expressed gratitude to all countries of the UN Security Council who voted for this resolution.
Addressing the Summit, Mr. Salvador Valdez, Vice President of the Republic of Cuba thanked the AU and the African people for the solidarity showed during the death of the liberation leader, Fidel Castro.
Issues of peace and security dominated many of the presentations by the African and visiting Heads of State and Government. Many of the leaders condemned terrorism in very strong terms. Various speakers at the summit’s opening ceremony expressed their commitment to mainstreaming youth’s programs in all socio- economic activities.
Present in today’s event was H.E Mr. Erastus Mwencha, Deputy Chairperson of the AUC, the Commissioners, Heads of AU Organs, representatives of the RECs and staff of the Commission servicing the Summit.
Welcome remarks of the Chairperson of the African Union Commission, H.E. Dr. Nkosazana Dlamini-Zuma
A warm welcome as we meet in the 28th Ordinary Session of the Assembly of Heads of State and Government of the African Union.
2017 is heralded by some important developments.
Last year, Cuba, Africa and the world bid farewell to the greatest revolutionary and internationalist of our time, Fidel Aleandro Castro Ruz. He played a critical role in the global struggle against colonialism and imperialism, and for non-alignment and unity of the countries of the South.
His sustained contributions to Africa are legendary: the support to liberation movements, to newly-independent states, in the development of African education and health systems; the training of health personnel, all in the spirit of solidarity, friendship, internationalism and mutual respect.
As Castro said about the Cuban solidarity in his address to the South African Parliament in 1998: the Cuban soldiers who fought in Angola (and I might add for the freedom of Namibia and South Africa) did not take anything home, except their dead.
Our greatest tribute to Fidel Castro, is to continue our friendship and solidarity with the Cuban people, for the full lifting of the economic embargo and the return of Guantanamo Bay to the Cuban people.
This year marks a number of historical milestones.
Firstly, 2017 marks 55 years since the formation of the Pan African Women’s Organisation (PAWO) in 1962, a year before the OAU. The women came from newly independent states and liberation movements, determined to play their role, side by side with the menfolk, in liberating Africa.
The women’s movement, as we celebrated the OAU/AU Golden Jubilee in 2013, recognized the role of the founder mothers, when they declared:
“… African women and their Diaspora sisters played a critical role in the evolution of Pan Africanism, through their contributions to the anti-slavery, anti-colonial and liberation struggles.
Through their efforts, women ensured that African struggles for freedom, dignity, development, peace and self-determination also addressed our aspirations for women’s emancipation, gender equality and women’s empowerment.”
In tribute to the founding mothers, it is therefore appropriate that the Assembly recognizes PAWO as a Specialised Agency of the African Union.
The task of PAWO today is to continue the struggle for the empowerment of girls and women, through education and skills, in the political, social, cultural and economic spheres. They must continue to advocate and work for a peaceful and safe Africa for all its people.
Without this mobilisation of women, progress on Agenda 2063 will be slow.
2017 also marks a centenary since the birth of a pre-eminent freedom fighter, Pan African, scientist, diplomat, teacher and democrat, Oliver Reginald Tambo, who was born in 1917.
After the Sharpeville massacre in 1961, Tambo was given responsibility to seek support amongst African countries, to take forward the struggle from exile. He diligently pursued this mission for over three decades, until South Africa was free.
As the longest serving leader of the ANC, he led the armed struggle, the campaign to isolate apartheid, and worked with the OAU and its Liberation Committee. He was passionate about women’s emancipation, about education as both a science teacher and lawyer, about young people, and about peace and democracy.
It is perhaps appropriate that the centenary of his birth coincides with the African Year of Youth, as he said:
The children of any nation are its future. A country, a movement, a people that does not value its youth and children, does not deserve its future.
As we start this year of youth, we must indeed commit to value our youth and deserve Africa’s future.
The future we are building today must leave Africa integrated, prosperous and peaceful, for current and future generations.
It is befitting that our theme for 2017, Harnessing the Demographic Dividend, through Investment in African Youth, is about building this future today.
The continent has 200 million young men and women ages 15 to 24 years. By 2025, a quarter of the world’s youth under 25 will be African. As the rest of the world ages, Africa will remain a young continent. This is the comparative advantage we have, which must be translated into a demographic dividend.
To harness this resource, we must provide all African boys, girls and young people with opportunities to be in school, complete secondary education, have access to vocational training and universities, and to expand their knowledge of science, mathematics, engineering and technology. Within this, we must pay special attention to creating opportunities for girls and young women, so that we use the full potential of all our resources.
At the African Economic Platform to be held in Mauritius from 20-22 March this year, we will engage the business and academic sectors to close the gap between industry and education systems. Strengthening this link will help eradicate the skills mismatch, to stop graduate unemployment and address the shortages of engineers, agricultural scientists, biologists, geologists, and a host of other skills.
We must support the call by civil society, for an African Decade of Reading, so that the new generations may learn from and renew Pan Africanism.
Since sixty percent of the unemployed are young, with their unemployment rate double that of adults, we must resolve to decisively tackle youth unemployment.
Our programmes of beneficiation and economic diversification, of agricultural modernization and the development of agro-processing, must of necessity target the creation of jobs and economic opportunities for young entrepreneurs.
In this regard, we welcome the African Development Bank Strategy for Jobs for Youth in Africa 2016-2025, which aims to create 25 million jobs and impact 50 million youth. The Bank estimates that ‘reducing Africa’s youth unemployment rate to that of adults, would translate to a 10% to 20% increase in the continent’s GDP.’
We must ensure that African children, young men and women see the blue oceans economy, as part of their natural heritage and for possible career paths. The same goes for our celestial space and careers in the space sciences.
To unlock their full potential, we should do more to involve young people. This is economically prudent, and a democratic imperative, since they constitute the majority of our population.
By involving young people, they have a sense of ownership and stake in the future. By facilitating the full participation of girls and young women, we secure the future.
The future of Africa belongs to youth, but the quality of that future will be determined by what they do with it today. Youth, therefore, have responsibilities to learn, to read, to serve, to participate, to innovate, to build, and to create.
They have a responsibility to be organized, at local, national and continental levels, so they can help drive Agenda 2063.
On our part, we will this year appoint a Special AU Envoy for Youth, to mobilise and advocate for the youth, during this year of harnessing the demographic dividend.
Despite the challenges we face, we have countless examples of governments leading society, acting decisively in building a better life for current and future generations.
We congratulate Egypt for being the first African country to start an ultra-modern connection of 900 kms of high-speed rail between Alexandria and Aswan. Egypt is showing us that the dream of a Pan African integrated high-speed rail network that connects all African capitals and commercial centres, can be realised.
It includes countries such as Burkina Faso, Cameroon, Chad, the Democratic Republic of Congo, Eritrea, Ethiopia, Ghana, Liberia, Madagascar, Mali, Niger, Senegal, Sierra Leone, Sudan, The Gambia, Uganda, and Zimbabwe, who have launched the campaigns to end child marriages, to give girls the opportunity to stay in school, to be healthy, and to reach their full potential. We hope other countries who still have this practice, will join the campaign.
It includes the sterling organization by the women who travelled from across the continent to gather on the slopes of the majestic Mount Kilimanjaro, and who adopted their Charter on Land Rights, which will be distributed to Your Excellencies today.
It also includes the Women in Maritime in Africa (WIMAfrica), who are asserting women’s right to be part of the blue oceans economy, as ship-owners and builders, port and logistic management. They contributed to the Lome Charter on Maritime Security, Safety and Development, and are working with us on the Annexures.
It includes Ethiopia, DRC, Cote d’Ivoire, Mozambique, Tanzania and Rwanda, who are recording the fastest compound growth in the continent, and are amongst the fastest-growing economies in the world. These countries, along with those who set the target of reaching middle-income status in the coming decade, are contributing towards eradicating poverty in one generation.
It also includes the thirteen countries that made the solemn commitment to lead in launching the Single African Aviation Market in 2017, as per the Yamoussoukro Declaration. They recognize that Africa will be the fastest growing aviation market in the coming twenty years. Already in 2013, it transported over 70 million passengers annually and supported 6.9 million jobs[1].
The countries that made the start to open their skies to fellow African countries, like Rwanda, Ethiopia, Kenya and South Africa, are helping to lead the way in Africa claiming its airspace. We must encourage all countries to join them to open their airspaces to all African countries.
It include the steps taken by Botswana, Cote d’Ivoire, Ethiopia, Ghana, Kenya, Lesotho, Nigeria, Rwanda, Senegal and others on industrialization, beneficiation and value addition, as well as the initiatives to build regional value chains, as we are poised to start the Continental Free Trade Area.
It also include the good examples of progress on free movement of persons, following the launch of the African Passport in Kigali last year. And it include, Benin, Comoros, Ghana, Madagascar, Mozambique, Namibia, Rwanda, Seychelles, Togo and Uganda, who are already offering visa-free access or visa on arrival for all Africans. We hope that they too will be joined by others.
It includes the work we do with the Diaspora, as an integral part of the African renaissance and the global struggle against racism and intolerances.
It includes the ongoing work to put our Union on the route to self-reliance, and to build a Union of the people that is effective and responsive to the aspirations of the African people.
It includes the progress we make on gender equality and women’s empowerment.
Last, are the examples of work by Regional Economic Communities infrastructure development, on economic integration, free movement of people, as well as on democracy, human rights, peace and security.
Across the continent, there is progress in silencing the guns. The President of Tanzania asked me why are we waiting for 2020, and not immediately. More must therefore be done to achieve this goal faster. The fight against terrorism remains a challenge, and we must all unite to defeat this scourge that threatens our collective security.
It is with much concern that we learn that sporadic fighting continues in South Sudan. The people of South Sudan need peace. We again call on all the parties involved to honour the agreement, in order to ensure peace, reconciliation, healing and justice.
It is clear that globally we are entering turbulent times. For example, the very country to whom our people were taken as slaves during the Trans-Atlantic slave trade, have now decided to ban refugees from some of our countries[2]. What do we do about this? Indeed, this is one of the greatest challenges and tests to our unity and solidarity.
The year of youth must provide a basis for advancing the social contract, Agenda 2063 between our generations and the younger and future generations, for the benefit of all Africans.
Let me use this opportunity, to most sincerely thank the outgoing Chairperson of the Union, His Excellency Idriss Ito Deby for his guidance to the Commission and the precision and decisiveness with which he ran the affairs of the Union during his year in office. Mr. President, this is nothing less than what we expect from a pilot.
Let us imagine and create the Africa we want to live in, so that we can bequeath a united and better Africa to future generations.
Allow me before I take my seat, to take this opportunity to respectfully call on President Johnson Sirleaf to join me on this podium.
Your Excellency, on behalf of all of us, a heartfelt gratitude to ECOWAS, who under your leadership made us proud, as you stood by the people of The Gambia and defended the values and principles of our Union. Our thank you to all those who participated, the President of Mauritania and others, and who remained steadfast.
We are particularly proud, that it was under your stewardship, President Ellen Johnson Sirleaf, as our first elected female President. You are a pioneer and inspiration to all women and men.
This is a token of our appreciation and gratitude. ECOWAS has set the example to all of us, to remain steadfast in defense of the principles and values of the African Union.
I thank you.
[1] Source: International Air Transport Association
[2] Libya, Somalia and Sudan
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Kagame presents reforms proposal to African leaders
Rwandan President Paul Kagame yesterday presented his report on the African Union reforms at a Heads of State Retreat in Addis Ababa, Ethiopia.
Kagame presented the report titled, “The Imperative to Strengthen Our Union,” on the sidelines of the ongoing 28th African Union Summit in the Ethiopian capital.
In July, last year, at the AU Summit in Kigali, Kagame took on a task to carry out a study and propose recommendations for institutional reforms to improve the efficiency of the Union.
Yesterday’s retreat was chaired by Chad president Idriss Deby, the current chairperson of the Union.
Following the presentation, African leaders present welcomed the proposed reforms, which seek to realign and re-energise the Union to improve performance and connect better with citizens by delivering on the institution’s agenda.
The retreat’s final outcomes are set to be presented for adoption at the summit during a formal session later today, during which the proposal on reforms will be tabled to the General Assembly.
To conduct the study and put together the reforms proposal, Kagame put together a committee made up of experts from various backgrounds to study challenges and propose solutions.
The committee members included: Dr Donald Kaberuka, former president of African Development Bank; Amina J. Mohammed, minister for environment of Nigeria; Mariam Mahamat Nour, minister for economy, planning, and international cooperation of Chad; Cristina Duarte, former minister for finance and planning of Cabo Verde; Dr Acha Leke, senior partner at McKinsey & Co; Dr Carlos Lopes, former executive secretary of UN Economic Commission for Africa; Strive Masiyiwa, executive chair of Econet Wireless; Tito Mboweni, former governor of South African Reserve Bank; and Vera Songwe, regional director for West and Central Africa at the International Finance Corporation.
The summit opened last week with a two-day meeting of permanent representatives to the union which made way for foreign affairs meeting at the same venue.
The Heads of State assembly opens today and will run until tomorrow.
What will African Union reforms seek to address?
The African Union reforms proposal to be presented to Heads of State on Tuesday, will seek to rationalize the activities of the Union to address issues of duplication of efforts as well as coherence in working with partners.
During the 2016 AU summit held in Kigali, the participating heads of state requested President Paul Kagame to foresee the restructuring process to make the organization cost effective and impactful in addressing Africans’ concerns.
In the months following the decision, Kagame put together a reform steering committee made up of eminent persons from across the continent.
Giving an insight into the anticipated restructuring, the deputy Chairperson of the African Union, Erastus Mwencha, said on Friday the reforms process will, among other goals, aim at ensuring there is coherence in AU working together with partners and regional economic communities.
He was addressing a news conference in Addis Ababa, Ethiopia on the sidelines of the ongoing AU Summit.
According to Mwencha, the Union hopes to deepen cooperation with organs such as the African Development Bank and the Economic Commission for Africa as well as regional integration communities such the East African Community.
“It will look at how we rationalise our Union to address issues and concerns on duplication of efforts and programmes as well as disbursement of resources to make sure that there is synergy and effective implementation at the regional level,” Mwencha said.
He added that African Heads of State are on Sunday expected to convene for a retreat where they will consider aspects of the reforms and deliberate on the proposal at length.
The reforms come at a time when the African Union has been blamed for not being efficient and effective enough in addressing major concerns in the continent.
Among the concerns is lack of adequate cooperation and cohesion between regional blocs and partners in the implementation of development programmes leading to the replication of efforts.
Mwencha also spoke on the new self-financing mechanism adopted during the AU summit held in Kigali last year.
He said that though the mechanism will take longer than expected to implement as a number of countries have asked for additional time, it is more reliable and predictable compared to what is in place now.
The mechanism, which will raise funds through a 0.2 per cent levy on eligible imports in all the member countries, is expected to raise about $1.2 billion every year.
At the moment, only five countries are ready to implement the mechanism with Rwanda among them.
Others that are ready include Ethiopia, Kenya, Chad and the Democratic Republic of Congo.
Mwencha said that the formula is equitable as opposed to the current system where five countries contribute about 75 per cent of the total funds from AU member states.
He admitted that the unpredictability of the African Union funding has exposed the body to several challenges, especially when it comes to meeting financial obligations to the African Union Peacekeeping Mission in Somalia.
The funds raised through the new mechanism will be earmarked for: 100 per cent financing of operational activities of the Union, 75 per cent of all development programmes, and 25 per cent of peace keeping operations.
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Leveraging services and digital potential for inclusive economic growth
The development of well-functioning and efficient services sectors is crucial to achieving structural transformation and sustainable and inclusive growth in LDCs and LICs.
Furthermore, the global economy is undergoing a fundamental structural reformation driven by digital technology. Digital trade is, and will become, increasingly important for economies as digital services/e-commerce are increasingly directly traded as well as serving as crucial facilitating inputs into the production of other goods and services.
ICTSD’s work in support of the implementation of the WTO LDC Services Waiver, including the information obtained from case studies carried out in sixteen LDCs, suggested that one of the primary barriers to both domestic service sector development and services exports are regulatory aspects. There is a positive role for regulatory and policy development in economies in East Africa to significantly improve service sector and digital efficiency and competitiveness, leading to static and dynamic gains in the domestic economy, boost export performance and assist local firms to tap into global value chains (GVCs).
SMEs engaged in the services sector are subject to a number of challenges and barriers, however, rich opportunities exist for them to generate economic growth and to support social and economic inclusion in the region. Recent work, carried out by ICTSD and others, suggests that the share of female employment in service sectors is significant, women account for almost half of all service sector employment globally, and that, more importantly, female participation in service sectors in Africa is expanding rapidly. Mainstreaming gender into regulatory frameworks is crucial for not only reducing poverty, improving employments prospects, and raising living standards for millions of women in region but is also equally necessary to improve productivity and efficiency across the region.
There is a strong link between a higher concentration of economic activity in the services sector and higher rates of economic growth. Apart from playing a key role in generating economic growth, service sector development can also help address domestic development priorities ranging from structural transformation to gender equality and inclusive growth.
ICTSD, in collaboration with TradeMark East Africa (TMEA), organised a two-day event on Leveraging Services and Digital Potential for Inclusive Economic Growth from 25-26 January 2017 in Nairobi, Kenya. In addition to interactive sectoral and plenary discussions, sessions covered the following topics:
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Services, inclusiveness, SMEs and the SDGs
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Gender dynamics in key service sectors: interactive sectoral discussions
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Regulation as an enabler of service sector competitiveness
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The Digital Economy: exploring the global and regional context
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Digital regulation and the enabling environment in East Africa
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The context of international negotiations
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Identifying key issues and challenges
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Establishing national and regional priorities
Downloads
» Collection of Presentations from Day 1 (PDF, 3.91 MB)
» Collection of Presentations from Day 2 (PDF, 7.28 MB)
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Sustained growth in international tourism despite challenges
Demand for international tourism remained robust in 2016 despite challenges. International tourist arrivals grew by 3.9% to reach a total of 1,235 million, according to the latest UNWTO World Tourism Barometer. Some 46 million more tourists (overnight visitors) travelled internationally last year compared to 2015.
2016 was the seventh consecutive year of sustained growth following the 2009 global economic and financial crisis. A comparable sequence of uninterrupted solid growth has not been recorded since the 1960s. As a result, 300 million more international tourists travelled the world in 2016 as compared to the pre-crisis record in 2008. International tourism receipts grew at a similar pace in this period (complete 2016 receipts results will be reported in May).
“Tourism has shown extraordinary strength and resilience in recent years, despite many challenges, particularly those related to safety and security. Yet, international travel continues to grow strongly and contribute to job creation and the wellbeing of communities around the world,” said UNWTO Secretary-General Taleb Rifai.
By region, Asia and the Pacific (+8%) led growth in international tourist arrivals in 2016, fuelled by strong demand from both intra- and interregional source markets. Africa (+8%) enjoyed a strong rebound after two weaker years. In the Americas (+4%) the positive momentum continued. Europe (+2%) showed rather mixed results, with double-digit growth in some destinations offset by decreases in others. Demand in the Middle East (-4%) was also uneven, with positive results in some destinations, but declines in others.
Recalling that 2017 has been designated by the United Nations the International Year of Sustainable Tourism for Development, Mr. Rifai said “we need to work closer together to harness the contribution of tourism to economic growth, social inclusion, cultural and environmental preservation and mutual understanding, particularly when we live in times with such a deficit of respect and tolerance”.
Experts remain optimistic about 2017
The latest survey of UNWTO’s Panel of Experts shows continued confidence in 2017, with the large majority (63%) of the some 300 respondents expecting ‘better’ or ‘much better’ results than in 2016. The Panel score for 2017 virtually equals that of 2016, so growth is expected to be maintained at a similar level.
Based on current trends, the outlook of the UNWTO Panel of Experts and economic prospects, UNWTO projects international tourist arrivals worldwide to grow at a rate of 3% to 4% in 2017. Europe is expected to grow at 2% to 3%, Asia and the Pacific and Africa both at 5% to 6%, the Americas at 4% to 5% and the Middle East at 2% to 5%, given the higher volatility in the region.
2016 Regional Results
Results in Europe were rather mixed with a number of destinations affected by safety and security challenges. International arrivals reached 620 million in 2016, or 12 million (+2%) more than in 2015. Northern Europe (+6%) and Central Europe (+4%) both recorded sound results, while in Southern Mediterranean Europe arrivals grew by 1% and in Western Europe results were flat.
Asia and the Pacific (+8%) led growth across regions in both relative and absolute terms, recording 24 million more international tourist arrivals in 2016 to total 303 million. Growth was strong in all four subregions, with Oceania receiving 10% more arrivals, South Asia 9% more and North-East Asia and South-East Asia both 8% more.
International tourist arrivals in the Americas (+4%) increased by 8 million to reach 201 million, consolidating the solid results recorded in the last two years. Growth was somewhat stronger in South America and Central America (both +6%), while the Caribbean and North America recorded around 4% more arrivals.
Available data for Africa points to an 8% rebound in international arrivals in 2016 after two troubled years, adding 4 million arrivals to reach 58 million. Sub-Saharan Africa (+11%) led growth, while a gradual recovery started in North Africa (+3%).
The Middle East received 54 million international tourist arrivals in 2016. Arrivals decreased an estimated 4% with mixed results among the region’s destinations. Results for both Africa and the Middle East should be read with caution as they are based on limited available data.
Note: All results in this release are based on preliminary data, as reported by the various destinations around the world, and UNWTO estimates of still-missing data. UNWTO will continue to collect data and will present more comprehensive data by country in the April issue of the UNWTO World Tourism Barometer.
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Becoming the champion: Uganda’s development challenge
IMF Chief Christine Lagarde, in a public lecture on 27 January 2017 in Kampala, said that Uganda needs more infrastructure investment. “Under-developed infrastructure is a permanent brake on growth. It prevents businesses from connecting to local, regional, and global markets, and limits their willingness to invest,” she said. Read her full speech below.
Good afternoon.
Nsanyuse okubalaba. I am pleased to be with you.
Thank you to the Government of Uganda for hosting this event and to Minister Kasaija for his kind introduction.
This gathering provides an opportunity to congratulate Uganda for its impressive economic achievements and to speak about the possibilities of the future.
I do not normally begin my speeches with statistics, but today will be an exception. That is because the numbers tell us a great deal: Uganda has experienced a threefold increase in per capita GDP over the past generation. And you have reduced extreme poverty to one-third of the population.
This made Uganda one of the countries that has more than achieved the United Nations Millennium Development Goal of halving poverty by 2015.
This is an African success story.
Yet as I listen to people here in Kampala, I hear a note of concern. I hear that progress is no longer coming fast enough, and that millions of Ugandans still live in poverty. Growth has lagged – partly because of global circumstances beyond Uganda’s control.
But this is not just a matter of global demand. Uganda is grappling with challenges familiar to many developing countries.
This contrast of success and uncertainty speaks to me of last year’s movie “Queen of Katwe,” a story about Uganda that so captivated international audiences. You will recall that in the film, the young chess master, Phiona, poses two questions:
First she asks: “Can you do big things from such a small place?”
I believe that Uganda already has answered that with a resounding “Yes!”
Phiona’s second question looks to the future: “How can I become the champion?”
This is the challenge you face. The policies that Uganda chooses today will determine whether you are on a road to overcome poverty and provide opportunities to all Ugandans.
So in the time I have with you, I would like to address how Uganda can rise to the challenge of development, and become a champion. To this end, I will address the global and regional economic landscape, within which Uganda can build and sustain development momentum with the support of the IMF its longstanding partner.
1. The Global and Regional Economic Setting
Let us begin with the big picture. Sub-Saharan Africa is increasingly integrated into the global economy. The region weathered the 2008 global financial crisis in large measure because it had pursued sensible policies that reduced debt and built up ample reserves. It also helped that demand for natural resources from China and other emerging market countries quickly rebounded.
In the past few years, however, the wind has turned. Emerging market demand has slowed significantly, and many advanced economies continue to struggle. Commodity prices have fallen sharply. Access to market financing has tightened.
While there are recent signs that global growth may be picking up, there are still serious risks. These include rising protectionist sentiment. Restrictions on trade are never helpful, but they would be even more damaging now, given that global trade has slowed since 2012.
Sub-Saharan Africa’s growth in 2016 was the lowest in 20 years at about 1.5 percent, and is projected to reach only 2.7 percent in 2017. Commodity exporters have experienced a particularly rapid deceleration.
The policy response in many African countries has been delayed and incomplete. So the end result has been uncertainty. Private investment is falling, stifling new sources of growth.
But so far, it has been a tale of two Africa’s. Notably, East Africa has been one of the region’s brighter spots. This is partly because policy frameworks have been more effective, and also because its more diversified economies are less reliant on volatile commodities. The end result has been stronger growth. But, here too, challenges remain.
Uganda fits right in the middle of this group of East African countries: growth has hovered at about 5 percent a year – better than many, but not enough to spur the swift development that is so needed. With increased infrastructure investment and the oil sector moving forward, growth could accelerate to 6 or 6½ percent in the coming years. The question is how can Uganda seize opportunities to sustain strong growth?
2. How Uganda Can Build and Sustain Development Momentum
I would like to highlight several key areas where economic policies can make a difference.
2.1 Investment in Infrastructure
First is investment in infrastructure.
You are, of course, all too familiar with Uganda’s infrastructure bottlenecks, especially in electricity and transportation. I could see the challenge myself just traveling from the airport in Entebbe to Kampala.
Under-developed infrastructure is a permanent brake on growth. It prevents businesses from connecting to local, regional, and global markets, and limits their willingness to invest. Ultimately, infrastructure bottlenecks will slow the structural transformation and industrialization that Uganda aspires to.
The government’s strategy to scale up infrastructure investment is well conceived. It is intended to lift growth while maintaining debt at a sustainable level.
But to achieve these goals means that investment must be efficient. That calls for strong institutions to keep mismanagement in check and ensure maximum value for money. There is work to be done. The World Bank has estimated that, if Uganda’s investments were better managed, annual growth could be 2.5 percentage points higher.
The good news is that the government is taking steps in this direction. Reforms aimed at strengthening investment management are being put in place. There is a new emphasis on efficiency.
Increasing resources for investment is another issue. Relying on borrowing alone to finance infrastructure would be unworkable because debt would become too high. More revenue from taxes needs to be mobilized.
Here again, there has been some progress, with tax revenue increasing in the past few years. Even so, Uganda is still only halfway to the East African Community’s goal of raising tax revenue equal to 25 percent of GDP.
What more might be done? One concrete measure might be to strengthen VAT administration and remove some exemptions on the VAT and corporate income tax. The IMF estimates that this could raise revenue by 3 percent of GDP or more.
2.2 Governance and Institutions
These issues of investment and taxation point to a common theme: the quality of Uganda’s governance and institutions. As we all know, good governance and strong institutions are cornerstones of economic growth.
Improvements in this area have been at the heart of Africa’s economic success over the past 20 years. Uganda’s track record also has been strong. But there is no room for complacency, especially as your country’s oil sector develops.
If oil is to contribute positively to Uganda’s future, then it is essential to avoid the “curse” that has plagued many other oil exporters. A strong transparency and accountability framework will go a long way toward ensuring that the new oilfields serve the national good and benefit all Ugandans.
You already have well-designed plans to channel all oil revenue to the Petroleum Fund, and from there to budget support and the Petroleum Investment Reserve. The IMF is ready to continue assisting you in this area, in preparation for the day oil begins to flow.
2.3 Regional Economic Integration
Regional economic integration is another policy area that can make a big difference for Uganda’s economy. Opportunities for trade and investment abound within the East African Community and its market of more than 150 million consumers.
Last November, the IMF co-hosted a conference in Arusha to take stock of the EAC’s progress and discuss what needs to be done to realize the full potential of a united bloc.
The Single Customs Territory has been established, and the Common Market is advancing. But infrastructure continues to constrain progress, and more work remains to be done on customs, taxes, and investment. If these issues can be addressed, the East African Community can emerge as a true source of economic dynamism.
In addition, there is another “community” emerging in Africa: the community of cross-border banks. Some are Pan-African Banks. Others are regional institutions, as in East Africa.
These African banks have moved into the space vacated by other international banks that withdrew from the region after the global financial crisis. This offers new opportunities for countries such as Uganda. But it also presents new challenges for bank regulation and supervision that require unprecedented cooperation.
So far, I have focused on infrastructure, institutions and regional integration. What does that leave?
2.4 Inclusive Growth
Perhaps the most important policy challenge of all: inclusive growth. I started by pointing to Uganda’s achievements in poverty reduction. If this trend can be continued, there will be clear benefits.
It will not be easy. I recognize that there will always be competing demands. Governments constantly need to balance priorities. For Uganda, even as investment is ramped up, it is essential to make resources available for social spending.
IMF research shows that more inclusive societies tend to grow faster and more sustainably. If inequality in Sub-Saharan Africa could be reduced to the levels of Southeast Asia, growth could be consistently higher. New research that we are releasing today focuses on the relationship between inequality and reforms in key areas such as fiscal policy, the financial sector policy and agriculture.
Reducing inequality requires several things: good jobs for young people, a strong emphasis on education and health care, and assistance to the poor, including a social safety net.
Queen of Katwe showed how this works by illustrating the importance of mentoring in a girl’s life. So we need to ask: How many young people are there in Uganda who might shine, given the chance? How many young women would excel on a level playing field? Indeed, I would argue that equality is as much about gender as it is about income!
Financial inclusion is also key to overcoming inequality. Uganda has made considerable progress in this area, including through the spread of mobile banking. But it still lags behind other East African countries when looking at how many adults have bank accounts. And Ugandan women have much less access to banking than men.
There is so much more that can be done to achieve inclusive growth.
3. How the IMF Can Work with Uganda
In all of these key policy areas, the IMF is ready to help. We have a very strong working relationship with Uganda – and I would like our partnership to become even stronger in the future.
At present, the core of our cooperation comes under our Policy Support Instrument, which provides a framework for many of the issues that I have been discussing.
Another crucial area of IMF support is technical assistance and training – capacity development. In Uganda, we are supporting your government’s effort to improve tax administration, public financial management, and financial sector stability, among other areas. We are trying to help as much as possible. We are at your service.
Conclusion
In conclusion, it is clear that the challenges Uganda faces are substantial: infrastructure investment, stronger governance, regional integration, and a focus on social programs that can reduce inequality.
If you tackle these challenges, you can spur stronger growth that creates good jobs for your young people. You can lay the foundation for continued success.
During my visit I have been impressed by Uganda’s energy and entrepreneurial spirit. I sense that Kampala is a hotbed of start-ups and innovators. Given the right environment, including good infrastructure and a skilled work force, these businesses can strike a spark that could spread throughout the Ugandan economy.
This is where hope comes from.
We look forward to continuing our partnership with you so that Uganda can sustain hope and emerge as a Champion!
Mwebale nyo! Asante sana! Thank you!
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AU set to harmonize electricity regulation in the continent
The African Union (AU) has embarked on harmonizing regulations for the electricity market in Africa, a senior AU official has said.
AU’s Commissioner for Infrastructure and Energy Elham Ibrahim said on Friday that the continental body has developed a strategy and action plans that will be undertaken at the national, regional and continental level in ensuring the development of the regional electricity markets.
“The African Union Commission (AUC) intend to have the framework become effective in the next three years once it is approved by the African Energy Ministers later in March 2017,” she noted at a press conference in Addis Ababa, Ethiopia.
She said that the framework will help create a robust economic regulation, create enabling renewable energy framework, and establish standards for energy efficiency.
“The development of the energy, transport and ICT sectors is the biggest priority in the infrastructure sector development in the continent since it will help facilitate trade, economic cooperation and regional integration amongst member states,” Ibrahim said.
She observed that AU is also putting emphasis on rural electrification to accelerate rural development and improve livelihoods of women and other consumers of energy.
Ibrahim announced that Africa Single Air Transport Project will be launched in June this year to help create markets and competition amongst the airlines in the continent.
She said that so far 17 countries have agreed to open their skies towards the realization of the project.
The commissioner observed that planned high speed railway project in Africa is fast becoming a reality.
“We are thankful for the Chinese government for helping us realize our planned high speed railways system that is one of our agenda 2063 flagship project,” she said.
She said that the AU has also supported the first regional roaming internet exchange in Kenya that is expected to deploy the use of one mobile phone sim card for five countries.
According to the AU agenda 2063, the continental body is planning to concentrate on leveraging financial and technical support for member states to improving energy access as well as ensuring energy security through the development of renewal and conventional energy systems.
It’s targeting at facilitating regional and continental clean power generation and transmission projects and develops guidelines and policies to accelerate energy transitions.
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tralac’s Daily News Selection
AU Summit updates:
Financing of the Union: AU unveils website on implementation of the 0.2% levy on eligible imports
Financing of the Union is a historic decision adopted by Heads of State and Government (HOSG) in a “Retreat on Financing of the Union” during the 27th African Union Summit held in Kigali, Rwanda in July 2016. The Decision directs all African Union Member States to implement a 0.2% levy on eligible imports for to finance the African Union. The decision will enter into operations for each Member States from January 2017. [FAQs, documents]
30th Ordinary Session of the AU Executive Council: speeches by Dr Nkosazana Dlamini-Zuma, Dr Abdalla Hamdok
SADC releases blueprint for African Union ahead of elections (NamNews)
Dr Pelonomi Venson-Moitoi, the SADC candidate and Botswana’s foreign affairs minister, has issued a five-point pledge for strong reforms, if elected chairperson. According to the statement the proposed plan includes the New Partnership for Africa’s Development; forging stronger integration between African Union Commission and regional bodies; re-introducing activity reports at annual summits to brief members on the work of the AUC and ensure attendance of regional summits; and visits by the AUC. In addition, Dr Venson-Moitoi wants follow-up on implementation of the Kigali summit on funding to speed up process and assess other mechanisms available to the Commission to generate income for the Union including discussions with the private sector.
Yann Bedzigui: ‘AU reform can’t be fast-tracked’ (ISS)
That Kagame’s panel also comprises eminent personalities creates the impression that the main issue is institutional, and all about management. Yet the heart of the matter for the AU is, and remains, political. A critical question will be the division of labour between the AUC and the regional economic communities. Should the AU limit its priorities, and leave other areas to the RECs and member states? In many ways, AU structures are ambiguous and contradictory. As it stands, the organisation seems to want to deal with all aspects of African politics, economic development, and peace and security – hence the top-heavy structure. Yet in practice, the AU remains an organisation of heads of state who jealously guard their sovereignty in these various areas. A reform process should prioritise clarifying the positioning of the AU in aspects where such contradictions exist. This would lead to clarity over the scope of the organisation, which will define its institutional structure.
WTO says $1 trillion global trade treaty about to come into force (Reuters)
A trade accord that will boost global exports by $1 trillion should come into force within two weeks, the head of the World Trade Organization said on Thursday, just as the rhetoric of U.S. President Donald Trump clouds the outlook for global trade. Jordan, Chad and Kuwait are all poised to ratify, which would tip the agreement over the required mark of 110 WTO members to take effect, Azevedo said. "There are estimates that once fully implemented, this could have an impact of around 2.7 percentage points on trade expansion throughout the world every year until say 2030, and half a percentage point of GDP growth around the world." Where a product may previously have taken 6-7 weeks to arrive, the waiting time should be cut to a few days.
International Forum for National Trade Facilitation Committees: four profiled presentations
(i) How Kenyan NTFC coordinates with EAC reforms of trade faciliation (Samuel K. Chemisto, NTFC Kenya), (ii) How to ensure coordination of national and regional trade facilitation committees agenda (Emmanuella Hakizimana, EAC), (iii) The Chirundu OSBP (Dingani Banda, Zambia Customs), (iv) How to ensure coordination of national and regional trade facilitation committees (Hermie George, WCO). [ITC trade facilitation guides]
Kenya Revenue Authority now mulls regional customs system (The Standard)
Kenya Revenue Authority is mulling a regional customs management platform to curb tax evasion within East African countries. Commissioner General John Njiraini said work had started on a common system to manage taxation of imports would eliminate the loopholes exploited by tax cheats. Among the inherent weakness commonly abused in the diversion of transit cargo including top-end vehicles destined to the other countries, often with no taxes paid in either Kenya or the intended destination. “The initiative once implemented should have substantial impact in reducing loopholes exploited by unscrupulous traders with intent on evading the payment of their fair share of taxes,” Mr Njiraini said Thursday. A common system would mean that all imported cargo will be cleared though the same platform by Kenya and the other regional neighbours; Uganda, Tanzania, Rwanda and Burundi.
International Customs Day 2017:
Message of the WCO Secretary General on International Customs Day 2017: Data is generated by every economic activity, including the movement of goods and people and circulates extensively along the global value chain. Collecting and analyzing data to enhance the effectiveness of border management is of paramount importance to Customs administrations. This year, in the context of the International Customs Day, the WCO is introducing the theme “Data Analysis for Effective Border Management” to encourage the global Customs community to pursue their efforts and activities in this area.
Three ways ICC will promote customs advancement in 2017: The ICC Academy - the world business organization’s ground-breaking e-learning platform - is set to unveil its latest training, the Export/Import Certification. The first ICC export and import programme of its kind, the certification will cover a range of topics from international business transactions and contracts to export and import finance, to international logistics among other essentials.
Malmström put on spot by Nigeria on EU deals with ACP countries (EurActiv)
EU Trade Commissioner Cecilia Malmström came under fire from Nigeria on Tuesday over the state of the bloc’s EPA with the developing world. Malmström, author and proponent of the EU’s new ‘ethical’ ‘Fair Trade for All’ policy, was speaking at an event for ActionAid and the European Trade Union Syndicat in Brussels, where she was confronted by a call from the Nigerian Charge d’Affaires to renegotiate the EPA. Malmström replied that “13 countries in West Africa have already signed up to these Partnership Agreements, and they are hoping for it to enter into force as soon as possible. “So starting to renegotiate it all now, because Nigeria has a few problems, is not possible. Once it is in force, of course there always is a review mechanism, there’s always ways to try to improve it but these 13 countries have already been waiting for quite a lot of years, and they believe this is a powerful tool for regionalisation, cooperation, for industrialisation, for a possibility to develop their economies. So I hope we can find a solution for Nigeria so you will hopefully be able to join as well.” [Various downloads]
EU hails Mombasa leaders for improving ease of doing business (Business Daily)
European Union trade advisors have hailed Mombasa County for automating processes, saying this has hastened trading and reduced the cost of doing business. The five-member team said the ease of doing business that had been made possible through automated services in trade, investment, energy and industry encourages investments.
Mali: Loopholes in Mali’s export tax regime make it a magnet for illicit gold trade (Partnership Africa Canada)
The report, The West African El Dorado: mapping the illicit trade of gold in Côte d’Ivoire, Mali and Burkina Faso (pdf), investigates challenges in the governance of artisanal gold mining in the three countries - and the vulnerabilities posed by the illicit trade of gold on the region. The investigation finds that all countries have taken important steps towards encouraging legal trade of artisanal gold—a sector which employs an estimated three million miners in Côte d’Ivoire, Mali and Burkina Faso—such as the harmonization of export taxes at 3%. Yet, Partnership Africa Canada found that Mali’s application of export taxes to only the first 50kg of gold per month is promoting smuggling, as traders bring gold over the border into Mali to get a large tax break.
Proposed repeal of US Extractives Transparency Rule would increase corruption and poverty (Natural Resource Governance Institute)
A flagship U.S. anticorruption rule is under acute threat. Confirmation came yesterday that Republican members of Congress plan to introduce a Congressional Review Act resolution seeking to eliminate the June 2016 rule implementing the bipartisan Cardin-Lugar extractive industries payment transparency provision. Daniel Kaufmann, president and CEO of the Natural Resource Governance Institute (NRGI), said: “We are deeply concerned at the attempt to gut this trailblazing U.S. law, which deters corruption and improves governance in the notoriously opaque natural resource sector. Legislators in both houses should abandon this plan immediately. Failure to do so would essentially be an endorsement of the kind of corruption and secrecy found in resource-rich dictatorships. This pro-inequality, pro-corruption move by legislators runs counter to the leadership exhibited by U.S. lawmakers when they pioneered global progress by passing this law over 5 years ago. It would make a mockery of the tough talk on fighting graft which we heard throughout the recent presidential campaign.”
While electric, driverless and connected cars are creating a buzz in the development sector — as was shown at the recent Transforming Transportation conference held in Washington, D.C. — poor people in developing countries are far more likely to own a gas-belching second-hand car than an electric one. In fact, the majority of African countries import far more used cars than they do new ones: 99 percent of all cars imported to Kenya are second hand, mainly shipped from Japan and Europe, according to United Nations Environment Programme figures. These cars offer an affordable way for people living in developing countries to become mobile, which studies show leads to increases in gross domestic product. “Exporting very old vehicles to developing countries is basically exporting pollution,” said Rob de Jong, head of transport at UNEP, who explained that cars being shipped to Africa often no longer meet safety and emissions criteria in their country of origin. Both UNEP and the World Bank are pushing for global and national regulations to improve the fuel efficiency and safety of second-hand vehicle fleets.
G-20 Agriculture Ministers agree to improve food, water sustainability
Against a backdrop of growing international tension over trade, agriculture ministers from the G-20 coalition of major advanced and emerging economies agreed to improve the sustainability of water use in farming when they met in Berlin on Sunday, 22 January. “We commit to approaches that improve sustainability of water use in food and agricultural production while ensuring food security and nutrition in accordance with our multilateral trade commitments,” said an action plan (pdf) released by ministers in conjunction with a political declaration (pdf). [Various downloads]
Billions needed to eradicate poverty and hunger – IFAD conference looks for new ways of financing
The world needs to take urgent action to mobilise the estimated US$265 billion a year needed to achieve the first two Sustainable Development Goals to end poverty and hunger by 2030, said Kanayo F. Nwanze, President of the International Fund for Agricultural Development (IFAD) at Wednesday’s opening of a conference focused on finding innovative ways to finance rural development. [Various downloads]
Two new reports from the OECD’s Joint Working Party on Agriculture and Trade:
GVC participation in the agriculture and food sectors: This study takes an in-depth look at the landscape and influences on global value chain (GVC) participation by a range of individual agro-food sectors. It focuses on the flow of products across national borders within GVCs rather than the specific characteristics of individual value chains, making use of a newly developed database on trade in value added for 18 agro-food sectors derived from the Global Trade Analysis Project (GTAP) database. There are varying patterns of engagement in GVCs by some of the major agricultural trading countries, and clear differences in regional engagement. European agro-food value chains source globally but supply locally. By contrast, those of China have a greater span in both sourcing inputs and supplying to other markets. For the United States, sourcing is narrower and more regionally focused, but supply is global. Overall, agro-food global value chains are most developed in Asia and Europe compared with other regional groupings.
Estimating GVC participation in the agriculture and food sectors: This study seeks to begin to fill some of the information gaps that surround agro-food GVCs. Specifically, this paper sets out an approach using the Global Trade Analysis Project database to identify trade in value added across 18 agro-food sectors in 70 countries, thereby constructing an inter-country input-output (ICIO) table and enabling the calculation of disaggregated indicators of GVC participation in agro-food sectors in both developed and developing countries.
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WTO says $1 trillion global trade treaty about to come into force
A trade accord that will boost global exports by $1 trillion should come into force within two weeks, the head of the World Trade Organization said on Thursday, just as the rhetoric of U.S. President Donald Trump clouds the outlook for global trade.
The Trade Facilitation Agreement (TFA) will have a major impact on poorer countries, because it standardizes and simplifies customs procedures, slashing the time, cost and complexity of taking goods over borders.
“In the WTO’s history, it is the biggest agreement we ever reached,” WTO Director-General Roberto Azevedo told Reuters in an interview.
Jordan, Chad and Kuwait are all poised to ratify, which would tip the agreement over the required mark of 110 WTO members to take effect, Azevedo said.
“There are estimates that once fully implemented, this could have an impact of around 2.7 percentage points on trade expansion throughout the world every year until say 2030, and half a percentage point of GDP growth around the world.”
Where a product may previously have taken 6-7 weeks to arrive, the waiting time should be cut to a few days.
“Things are going to cross the border much more easily, much more transparently and at lower costs,” Azevedo said.
“If it’s truly implemented and done well, there will be almost no contact between the client and the (customs) authority,” Azevedo said. “When that happens the room for corruption basically disappears. And we know that at the border, corruption is a problem for many countries.”
The United States, European Union, China and Japan were among the early adopters, although big and rich countries have less to gain since their customs procedures are already at high levels.
Asked if the deal was the high point of global trade liberalization, the veteran Brazilian trade negotiator said there was still a “rich agenda” of potential trade reforms, including for investment, services and small business.
Azevedo said it was too early to tell whether the new U.S. administration would be on board with those reforms, adding that much of what was being said about Trump’s plans for trade was speculation inferred from his previous comments.
Trump has advocated an “America first” stance, and talked of introducing border taxes to stop manufacturing jobs going to Mexico or China, prompting fears of a trade war between major economic blocs.
“Very bad scenario”
Azevedo said there could be an increase in trade disputes, and the WTO was ready to handle them.
“A lot of concerns I’ve heard in recent political debates in the United States can be addressed by tools that we have here in the WTO.”
But a trade war that involved ignoring the rules-based system would be a “very bad scenario”.
The outlook for world trade growth was hard to foresee because of conflicting signals, Azevedo said, with some people worried about a trade war and others anticipating an accelerating U.S. economy and improving business environment.
The WTO is also an important arena for Britain’s discussions about its exit from the European Union, because the EU looks after Britain’s rights and obligations as a trading entity at the WTO. Britain must disentangle itself so it can negotiate as a separate entity at the WTO.
“I suppose, from what I hear, that it is going to take a couple of years, at least. At that point in time they will begin to negotiate with WTO members,” Azevedo said.
Asked if that might interfere with Britain’s plan to leave the EU in two years, he said: “Timing is not in my hands. It’s in members’ hands – and the political decision to initiate things.”
Britain could start to negotiate with WTO members sooner, Azevedo said, but he had not heard of such negotiations and he had not been approached to facilitate anything.
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Boosting business competitiveness with ITC guides on trade facilitation
ITC’s practical guides can help small firms take advantage of the WTO Trade Facilitation Agreement.
Small businesses may soon become big winners. With the World Trade Organization's Trade Facilitation Agreement about to come into force, trade costs are expected to decline by at least 10%. This will make it easier for small firms to cross borders.
The Agreement, concluded by WTO members in Bali in 2013, aims to speed up the movement, release and clearance of goods, and improve cooperation between customs officials. It is expected to reduce shipping times, red tape and the scope for corruption.
With 108 of the 110 countries needed on board, the Agreement is likely to become legally binding in the weeks ahead. WTO requires two-thirds of its members to ratify the Agreement before it can be implemented.
The International Trade Centre has several publications that give business a voice in policy reform. These range from a step-by-step guide for governments to set up National Trade Facilitation Committees, to analysis explaining the benefits of the Agreement from the business perspective and spelling out how to ensure small and medium-sized businesses in developing countries can realize these gains.
Many other ITC publications touch on issues related to cross-border procedures, providing practical legal advice, insights on what businesses perceive as regulatory and procedural obstacles to trade, and challenges to e-commerce businesses in cross-border delivery.
ITC publications were available at this week’s first International Trade Facilitation Forum, which gathered some 300 government officials, donors and international trade experts at the United Nations Conference on Trade and Development. See ITC’s full collection on trade facilitation publications here.
International Forum for National Trade Facilitation Committees
In its continued effort to support Trade Facilitation reforms in developing and Least Developed Countries, UNCTAD organized the first International Forum for National Trade Facilitation Committees (NTFCs) in cooperation with the International Trade Centre, the World Bank Group, the World Customs Organisation and the World Trade Organisation.
The objective of the Forum was to empower the leaders of NTFCs and provide opportunities for NTFCs to access funding.
The Forum covered all aspects of establishing and sustaining NTFCs, including the sharing of best practices and coaching techniques. It also focused on accessing technical assistance for the NTFCs. In this regard, participants heard from donor organizations about the assistance that is available, and discussed the challenges faced in identifying and sourcing necessary funding.
Significantly, recipient countries were provided the opportunity to work with international donors and agencies present to identify possible match-making opportunities.
A selection of presentations from the Forum are available here.