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African Ministerial Conference: Ocean economy a new frontier of economic growth, says PM
Ocean economy is a new frontier of economic growth and financial assistance and technical support as well as realistic programmes and concrete actions are necessary for the development of the sector, said the Prime Minister, Sir Anerood Jugnauth, on 1 September 2016 in his keynote address at the opening of the two-day Africa Ministerial Conference on Ocean Economies and Climate Change which is being held at Westin Resort & Spa in Balaclava.
The Prime Minister recalled that fisheries and aquaculture assure the livelihoods of 10 to 12 percent of the world’s population with more than 90% of those employed in small-scale operations in developing countries. According to World Bank statistics, he said, oceans are equally important for food security and jobs. Coastal areas within 100 kilometers of the ocean account for an estimated 61% of the world’s total Gross National Product and are of particular importance for developing countries. Healthy oceans, coasts and freshwater ecosystems are crucial for economic growth and food production in developing countries, he added.
Sir Anerood Jugnauth underlined that for Africa, oceans, coast and seas are of vital importance to the development and prosperity of the continent. However, the oceans are currently under threat by sea level rise and temperature, ocean acidification, and climate change and hence the importance of climate mitigation and adaptation, he stressed.
The Prime Minister pointed out that Mauritius is committed to the protection of the environment and is investing in ocean assets as well as working on policies to develop this sector. These measures include: creation of a Ministry dedicated to ocean-related activities, setting up of the National Ocean Council to drive the ocean economy strategy, the development of the Port master plan, finalisation of the legislative framework for hydrocarbon exploration, and extension of the port, amongst others.
For his part, the Deputy Prime Minister and Minister of Tourism and External communications, Mr Xavier-Luc Duval, stressed the need to put ocean economy on the world agenda and draw the attention of international agencies and donor to this issue. According to him, ocean economy has been inadequately addressed and now needs to be redressed. It is also important, he emphasised, to address the impact of climate change on ocean economy and to access the green climate fund which is a mechanism to assist developing countries in adaptation and mitigation practices to counter climate change.
For the Minister of Ocean Economy, Marine Resources, Fisheries, Shipping and Outer islands, Mr Premdut Koonjoo, since Mauritius manages a maritime zone of 2.3 million km2 , the potential for economic advancement and prosperity that this resource can generate if developed in a sustainable way could take Mauritius to the next level – that of a high-income country, with a large geographic territory and the competencies, technologies and systems to manage this territory.
The Government, he added, is fully committed to transform the ocean economy into a major pillar of economy since it provides numerous opportunities for diversification, employment, economic growth. He also pointed out that healthy oceans are critical to poverty alleviation, healthy food and ecosystem development, amongst others.
The Conference
The Conference will be a decision-forcing two-day event that will:
(a) Muster international political leadership and sustain momentum on the need for climate action in building sustainable ocean economies ahead of the COP 22.
(b) Place Mauritius as an African international center of ocean economic forum to attract and demonstrate African leadership, as well as institutional investors and donors and partners in the area of ocean economy and climate change.
(c) To present an “African Ocean Economy and Climate Action Agenda” which will have as a key component an “African Oceans Finance Package” (entailing an investment agenda catalyzed by a number of government and company commitments and partnerships in pursuit of climate-smart investments in African ocean economies) for the benefit of African coastal and insular countries and to be announced at the UNFCCC COP22 in Marrakesh in November 2016.
(d) To enhance the capacity of Sub-Saharan Africa to plan and implement climate-resilient and low-carbon development. A number of priority areas for action will be needed to enhance Africa’s capacity to build climate-resilient ocean economies such as fisheries and aquaculture, integrity of the coastline, ports and shipping, renewable energy, tourism, and horizontal themes such as capacity building and finance.
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Second Kenyan trade and investment summit set to provide Cape business new opportunities
On 1 September 2016, Wesgro, with the Kenyan High Commission, co-hosted the second Kenyan trade and investment summit, in Cape Town, South Africa.
The summit will provide stakeholders from the Cape and Kenya an opportunity to engage ahead of a Wesgro-led delegation visit to Kenya next month (24-28 October) and we encourage all Cape companies who would like to join to contact us.
Under the summit’s theme ‘Pushing Economic Diplomacy to a New Frontier’ a number of panels and bilateral discussions will cover trending topics ranging from tourism and investment, to ICT, energy, manufacturing and agribusiness.
Larger than its inaugural one, this year’s summit is being attended by a high-level delegation featuring Kenyan High Commissioner Jean Kamau, Deputy High Commissioner Lemarron Kaanto, key Kenyan Cabinet Secretaries, the Reserve Bank Governer, the Head of the Kenyan Revenue Authority and South African government officials.
The Summit’s panels will also feature representatives from a number of Cape corporates such as Old Mutual, Woolworths, Distell, Sanlam, Foschini, Truworths and Naspers that have expanded to the East African nation.
South Africa is the 28th largest destination market for Kenya’s exports and the fourth largest source market for Kenyan imports. The Western Cape has had a positive trade balance with Kenya, sending R2.4 billion in exports (more than we did to China) and buying R190 million in imports during the 2013/14 financial year.
In April this year Cape Town Air Access, a division of Wesgro, worked with Kenya Airways to secure a new direct flight from Nairobi to Cape Town – a route that will strengthen trade and tourism relationship between our countries and the rest of the continent.
“Kenya is one of our biggest buyers and I am confident that initiatives like this summit and new route will strengthen our relations and partnerships with the East African nation and present many new opportunities for Cape business,” said Wesgro CEO and one of the summit’s panel moderators Tim Harris at its opening.
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Kenya eyes bigger horticulture deals at Nairobi forum
Kenya aims to expand its multi-billion horticulture export market during the upcoming international plant health conference set for Nairobi next month, the first of its kind in Africa.
The phytosanitary conference will discuss plant health and issues including pests and exports control measures that are key to Kenya’s horticultural market.
The country aims to seize the opportunity to showcase procedures that it has put in place to comply with international standards.
The conference will be hosted by Kenya Plant Health Inspectorate Service (Kephis), which is the body mandated with checking quality of the produce and compliance standards.
Kephis managing director Esther Kimani says Kenya will use the conference to further its agenda in the export market that last year saw the country earn up to Sh100 billion in foreign exchange.
“Being the first conference on plant health to be held in Africa, we see it as an opportunity to grow our export market even further,” said Dr Kimani.
Agriculture principal secretary Richard Lesiyampe noted that pests reduce crop production by 33 per cent resulting in loss of income and poverty.
“An example of how pests can cause countries to lose market is when South Africa banned all imports of susceptible crops from Mozambique due to the fruit fly until appropriate measures were undertaken. This resulted in export commodities being lost,” said Dr Lesiyampe.
During the conference, delegates will propose ways of mitigating against diseases such as Tuta Absoluta, which affects tomatoes as well as the Maize Lethal Necrosis Disease that is threatening regional food security.
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tralac’s Daily News Selection
The selection: Thursday, 1 September 2016
Summit also took stock of the status of signature, ratification and accession to SADC Protocol noting that 26 have entered into force, while the following have not yet come into force, and urged Member States that are yet to accede to these Protocols, to do so. They are: (i) Protocol on Science, Technology and Innovation (ii) Protocol on the Facilitation of Movement of Persons (iii) Protocol on Trade in Services (iv) Protocol on Environmental Management for Sustainable Development (v) Protocol on Employment and Labour (vi) the new Protocol on the tribunal in the Southern African Development Community.
New SADC publications (all pdf): SADC Energy Monitor 2016: baseline study of the SADC energy sector, SADC Gender and Development Monitor 2016, Efforts and benefits of mainstreaming gender in the SADC renewable energy sector
Southern Africa Regional Climate Outlook Forum: consensus outlook for 2016/2017 rainfall season (pdf, SADC)
The bulk of SADC is likely to receive normal to above-normal rainfall for most of the period October to December 2016 and the January to March 2017. However, northernmost DRC, northern Angola, most Tanzania, northern Mozambique, the islands states of Seychelles and eastern-most Madagascar are more likely to receive normal to below-normal rainfall most of the season. [Hydroelectric power industry hopeful La Nina will replenish regional reservoirs]
South Africa, Nigeria, Egypt, Zimbabwe trade data updates:
South Africa’s July trade data: The Africa trade balance surplus was R15 440 million - a 18.4% decrease in comparison to the R18 914 million surplus recorded in June 2016.
Nigeria: GDP, trade report Q2 2016: In the second quarter of 2016, the nation’s GDP declined by -2.06% (year-on-year)in real terms. This was lower by 1.70% points from the growth rate of –0.36% recorded in the preceding quarter, and lower by 4.41% points from the growth rate of 2.35% recorded in the corresponding quarter of 2015. Quarter on quarter, real GDP increased by 0.82%. Year on year, trade grew by 15.23% in the second quarter of 2016 in nominal terms. This was 0.76% points higher than in the same quarter of the previous year, and higher by 1.72% points than the rate recorded in the preceding quarter. Quarter on Quarter growth was 3.60%. Trade’s contribution to nominal GDP in the Second Quarter was recorded at 21.16%, which is greater than the contribution in the same quarter of the previous year of 18.87%, but slightly lower than in the preceding quarter recorded at 21.55%.
Egypt: a 15.7% decline in June trade deficit: According to Ezz El-Din Hassanein, expert on banking and economics and chairperson of a bank operating in Egypt, the decline in Egyptian imports over the past few months is due to the increase in the US dollar exchange rate against the national currency.
Zimbabwe’s car imports through Beitbridge decline: Official figures from Zimra show that a total of 13 976 motor vehicles were imported through Beitbridge Border Post as at June this year as compared to 14 358 vehicles which were imported during the same period in 2015. It is understood that the imports through Beitbridge have declined as many importers and car dealers now prefer using less busy stations such as Plumtree, Kazungula and Chirundu border posts. Zimra recently stopped accepting values of second hand vehicles which are being sold in South Africa saying they were way below standard market values. This has resulted in importers opting to buy vehicles directly from Japan or Tanzania where prices are relatively low. Zimra’s director of legal and corporate affairs, Ms Florence Jambwa, said yesterday that they were processing an average of 72 vehicle imports per day at Manica Transit Shed.
Transforming African Development: partnerships and risk mitigation to mobilize private investment (IFC)
The role of the private sector is particularly significant in Africa - the focus of this report. Africa’s population is expected to increase to 1.7bn in 2030. By 2050, the continent will be home to 2.4bn people - quarter of the world’s future population. This report offers a template for how we can move forward - by showing how investors, governments, local enterprises, donors, and individuals are working together to address investors’ risk concerns and deliver more investment with positive impact. [Note: the report documents 15 case studies of financed private sector projects] [Related: At ICF review launch: Mkapa urges stronger ties with the private sector, Knowledge@Wharton: How partnerships drive health care innovation in Africa, Biggest bond binge in history passes Africa by as yields rise]
Mandla Lionel Isaacs: ‘Free movement in Africa is desirable, but how to realize it?’ (AfDB)
It has long been argued that economic integration will be of positive benefit to all African countries. Occasionally these arguments are bolstered with figures, such as how Rwanda has increased tourism since implementing visas on arrival for African visitors. Still, when we talk about free movement, there are costs and risks for countries to consider. Countries may reasonably worry about how free movement will affect their labour market, housing prices or social spending. In the absence of strong evidence, policymakers may be reluctant to open up while big question marks remain. There is, therefore, a need for rigorous research on the likely benefits and costs of free movement for African countries, which can be applied to the policy discourse. [Isaacs is Director of Research, SA Ministry of Home Affairs] [Benin will no longer require visas from other Africans, Migrant labour fuels tensions in Mauritius]
Migration Dialogue for West Africa: impact of free movement and migration challenges (IOM)
In its final report, the Security Ministers meeting held at the migration dialogue conference discussed and made amendments to the Final Report and Recommendations of the Experts meeting held on 23-24 August, and subsequently advanced a number of recommendations for approval by ECOWAS Council of Ministers. The security ministers’ meeting called for the establishment of a Steering Committee for Migration Dialogue for West Africa, appointment of national Secretariats in Member States, and the creation of seven Focus groups in relation to migration. The focus groups included border management, trafficking cross-border crime; diaspora, West African Communities and/or nationals; professional mobility and student exchange; climate change, land degradation, desertification. Others were environment and migration; gathering and analyzing migration statistics data; return readmission and reintegration; and cooperation and partnership among others. [Background, Outcome] [Dambazau cautions ECOWAS member states over migration, others]
Uganda’s progressive approach to refugee management: an assessment (World Bank)
The conclusions of the study are that as the government of Uganda and UNHCR strive to reduce poverty and mitigate risk for vulnerable refugees and their host communities, the close involvement of key stakeholders, such as district leadership, sector ministries, host communities, and refugees, is imperative. A shift in the philosophy of refugee assistance is also crucial: refugees should be viewed as economic actors in charge of their destiny (development approach) rather than as beneficiaries of aid (humanitarian approach). To ensure impact, the focus should be on transformative investments that will address the pressing needs of refugees and host communities alike and that will jump-start local economies.
Botswana: Govt plays hardball with SA retailers (Mmegi)
Property company, PrimeTime Holdings is expecting profitability at its soon-to-be opened Pilane Mall in Mochudi to be dented following government’s refusal to climb down on its decision to deny some of the targeted tenants trading licences. In a statement, PrimeTime said about 30% of the targeted tenants, who are South African retailers, have not been able to secure exemptions to trade in businesses reserved for locals. Although PrimeTime did not identify the affected South African retailers, an official at the Ministry of Investment, Trade and Industry told BusinessWeek that five household names that are in the clothing retail business have been affected.
Kenya/TICAD: Investment, tax deals to give Japanese firms easy access (Daily Nation)
Japanese companies are set to enjoy easier access to the Kenyan market under a raft of investment and tax deals signed in Nairobi over the weekend. The deals allow the Asian nation’s firms to repatriate profits, safeguard their investment against government interference and open up diplomatic channels to handle disputes before seeing intervention of international bodies. The agreement for the Promotion and Protection of Investment was signed by Treasury Secretary Henry Rotich and Japanese foreign affairs minister Fumio Kishida on the sidelines of the Sixth Tokyo International Conference on African Development. The two nations are also expected to sign a double tax agreement. [Transport, engineering firms top list of 11 Japanese companies eyeing Kenya]
Jaindi Kisero: ‘Kenya’s policy makers need to rethink view on special economic zones’ (Daily Nation)
What is my point? It is that signing a deal with the Japanese to help build a special economic zone in Dongo Kundu is not enough. Our policy makers must address their doubts about the viability of special economic zones. We must accept that these zones have delivered wonders to the South East Asian countries and that they are our best bet at industrialising. What I like most about the Japanese is the fact that the projects they support and fund are only selected after studies and detailed master plans.
Jackson Kiraka: ‘New law could clash with Kenya’s obligations to Monetary Union’ (Daily Nation)
One key institution will be the East Africa Central Bank, whose role, in conjunction with the national central banks, will be to coordinate the MU, including harmonisation of monetary and exchange rate policies. Those functions are expected to be independent of national interest influence. So, while Kenya’s capping of interest rates is of national interest and which, on the surface, could benefit ordinary citizens, it portends a challenge in the context of the ongoing regional process to harmonise policies and procedures. It may complicate the game for banks from the region eyeing the local market as an investment destination. As rates fall, new investment money could go elsewhere at Kenya’s expense.
Namibia, Zambia in joint HIV fight at border posts (Global Times)
Namibia's Walvis Bay Corridor Group's Wellness Service is collaborating with Zambian health officials to establish the first Cross Border HIV/AIDS Initiative. The project's objective is to have a series of Wellness Clinics serving truck drivers along the Walvis Bay corridors. Wellness Project Manager, Edward Shivute, recently met with officials from the Ministry of Health of Zambia to discuss the set-up of the new clinic in Shesheke, Zambia, which is to be opened by October 2016. The Wellness project, funded by SADC through the Global Fund, has three operational clinics located at the Port of Walvis Bay, at the border in Oshikango along the Trans-Cunene and at the border in Katima Mulilo along the Walvis Bay-Ndola-Lubumbashi Development Corridor.
Northern/Central Corridors: “EA freight” mobile app (FEAFFA)
FEAFFA, in partnership with TMEA, has introduced an android mobile app called the “EA freight”. This mobile app consists of the east African motor vehicle duty calculator that helps stakeholders determine the tax they need to pay for a given motor vehicle in each country. It consists of the EAC tariff book with different exercise duty on each product to help agents classify products with their equivalent duty. The app also consists of estimated freight rates for cargo along the north and central corridors within East Africa.
Pradeep S Mehta: ‘Bilateral investment pacts haven’t worked‘ (The Hindu)
With the blurring distinctions between strictly capital-importing and capital-exporting states, all countries must proactively seek a more balanced international investment agreement system. This requires greater cooperation and open-mindedness on part of the global community. India has indeed taken the first step in reforming its IIA regime and it should be the starting point of a larger debate. Time will tell how successful it is in setting the tone for the second phase of BITs across the world. This is notwithstanding any discussions on a plurilateral investment agreement at the WTO, as is anticipated by many. The future of international investment policy discourse will be quite interesting. [Mehta is Secretary General, CUTS International] [Amitabh Dubey: ‘A closer look at Modi’s Make in India’ (The Wire)]
Free Trade Agreement between Australia and China (goods and services): report by the WTO Secretariat
TICAD VI: Youth Communique from a UNV/AUC workshop
How the Ethiopian famine influenced Japanese businessman to campaign for modern farming in Africa (Daily Nation)
Young people and agriculture in Africa: a review of research evidence and EU documentation (IDS)
Tanzania: Magufuli sacks Treasury PS Servacius Likwelile (IPPMedia)
IGAD states validate the Regional Agricultural Investment Plan 2016-2020 (IGAD)
Mozambique faces race against time to end illegal logging (The Guardian)
Indonesia, Namibia reveal ambitious agriculture plan (New Era)
Can poll results sway elite opinion on Tanzania’s resource boom? (IGC)
Uganda: Oil companies may spend $8bn to start output (Bloomberg)
Ghana mining industry advocacy group pushes for new mining law (News Ghana)
Egypt, Ethiopia, Sudan, to sign GERD impact studies contracts next week (Ahram)
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36th SADC Summit draws to a close
The closing ceremony of the 36th Ordinary meeting of the Summit of the Heads of State and Government of the Southern African Development Community (SADC) was held at Lozitha, Royal Palace, Kingdom of Swaziland on the 31st August 2016.
Summit has elected His Majesty, King Mswati III, as Chairperson, and H.E. Jacob Gedleyihlekisa Zuma, President of the Republic of South Africa as Deputy Chairperson of SADC. Summit also elected His Excellency Dr. John Pombe Magufuli President of the United Republic of Tanzania, and H.E Jose Eduardo Dos Santos, President of the Republic of Angola as Chairperson and Deputy Chairperson of the SADC Organ on Politics, Defence and Security Cooperation, respectively.
His Majesty, King Mswati III, thanked their Excellences and delegates for attending the Summit and the opportunity to experience the culture and tradition of the Kingdom of Eswatini. The King stated that the Summit has deliberated on key regional issues which required attention as Heads of State and Government, and that they should pride themselves in the milestones that were achieved in some sectors.
“There is need for the region to intensify resource mobilization efforts in order to become a strong economic bloc. To have such a bloc is important if our continental vision of creating infrastructure that will enhance cooperation and integration is to be realized,” he said.
In his closing remarks, the newly elected SADC Deputy Chairperson, and President of the Republic of South Africa Jacob Zuma thanked His Majesty, King Mswati III for hosting a successful Summit. He reiterated the commitment by the Government of the Republic of South Africa in supporting SADC to achieve its envisaged agenda.
SADC Executive Secretary, Her Excellency Dr. Stergomena Lawrence Tax delivered the Summit Communiqué by highlighting the deliberations and decisions of the Summit as endorsed by Heads of State and Government.
The Summit closing ceremony was officially concluded by a Post-Summit media briefing by SADC Chairperson, His Excellency King Mswati III of the Kingdom of Swaziland.
Highlights
The 36th Ordinary Southern Africa Development Community (SADC) Summit of Heads of State officially closed on a high note, having achieved a great deal in the past two days. The Summit took place under the theme “Resource Mobilisation for Investment in Sustainable Energy Infrastructure for an Inclusive SADC Industrialisation and for Prosperity of the Region”.
Areas of concern the SADC Heads of State discussed
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Summit elected His Majesty, King Mswati III as Chairperson and H.E Jacob Gedleyihlekisa Zuma, President of the Republic of South Africa as Deputy Chairperson of SADC.
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Summit also elected His Excellency Dr. John Pombe Magufuli President of the Republic of Tanzania and H.E. Jose Eduardo Dos Santos, President of the Republic of Angola as Chairperson and Deputy Chairperson of the SADC Organ on Politics, Defence and Security Cooperation, respectively.
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Summit was also attended by H.E Dr Stergomena Lawrence Tax, SADC Executive Secretary, H.E Dr Nkosazana Dlamini- Zuma, Chairperson of the Africa Union, H.E. Dr Carlos Lopes, Executive Secretary of UNECA. H.E. Sindiso Ngwenya, Secretary General of COMESA, H.E Ambassador Zachary Muburi-Muita, Executive Secretary of ICGLR and H.E Ms Paulina M. Elago, Executive Secretary of SACU.
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His Majesty, King Mswati III of the Kingdom of Swaziland, Incoming Chairperson and host of the 36th Summit welcomed of SADC Heads of States and Government and other delegates to the Kingdom of Swaziland. His Majesty King Mswati III paid tribute to the Outgoing Chairperson of SADC, H.E. Lieutant General Dr. Seretse Khama Ian Khama of the Republic of Botswana for having provided exemplary and foresighted leadership to the Region during his tenure, and for significant progress made.
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Summit commended the people and government of the United Republic of Tanzania and Republic and Seychelles for holding peaceful and credible elections in their respective countries and congratulated Their Excellencies, Dr John Pombe Magufuli and Mr. James Michel, for emerging victorious in the Presidential elections.
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Summit commended the Outgoing Chairperson, H.E President Lt. General. Dr. Seretse Khama Ian Khama for convening the High Level Ministerial Workshops of Food Security and Poverty and Poverty Eradication, Water and Energy and Illegal Trade in Wildlife, which were timely and addressed critical challenges.
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Summit commended His Majesty, King Mswati III and the government of the Kingdom of Swaziland for dedicating a SADC University of Transformation which will grant 300 scholarships, representing 20 for each of the SADC Member States.
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Summit received a report of the Outgoing Chairperson of the SADC Organ on Politics, Defence and Security Cooperation, H.E Filipe Jacinto Nyusi, President of the Republic of Mozambique, and commended him for the outstanding leadership of the Chairperson of the Organ.
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The Summit applauded the SADC Region for the unity around the candidature of Hon. Dr. Pelomoni Verson-Moitoi, Minister of Foreign Affairs and International Cooperation of the Republic of Botswana as SADC candidate for the African Commission position. And undertook to continue supporting the candidature to the next round of elections set for January 2017, in Addis Ababa.
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Summit noted the adoption of the UN Council Resolution 2277 (2016) which extended the mandate of the United Nations Stabilization Mission in the DRC (MONUSCO) including its Intervention Brigade to 31 March 2017 and commended the DRC government and MONUSCO for signing the Technical Arrangement on 28 January 2016, thereby paving the way for the effective resumption of joint operations between MONUSCO Forces and the FARDC.
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Summit noted the initiative of the facilitation of the facilitation of the National Inclusive Dialogue spearhead by the African Union Special Envoy H.E Eden Kodjo and urged the Government and all political stakeholders to participate in the National Dialogue and agree on the calendar for elections and stakeholders to create a conducive environment and to participate in the national dialogues.
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Summit commended the massacre perpetuated by negative force in the Eastern DRC, particularly the ADF that has grown into a terrorist group posing danger not only to the DRC but to the whole Region, thus requiring concerted, collective and robust response.
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Summit commend the Government of the DRC, the African Union facilitation, all Congolese Stakeholder and the Facilitation Support Group for the effective launching of an inclusive dialogue that is expected to adopt a roadmap towards peaceful elections in accordance with SADC and International standards.
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Summit noted the progress of the SADC decisions; and the Roadmap on the constitutional, security sector, parliamentary and judiciary reforms as presented by the Government of the Kingdom of Lesotho, and mandated the Organ on Politics, Defence and Security Cooperation to assess the report and the roadmap and present a report to Summit.
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Summit noted progress made with the convening of the Security Sector Workshops and adopted the recommendation of the workshops.
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Summit encouraged the Kingdom of Lesotho to continue implementing SADC decisions, and all stakeholders to participate in the reform processes.
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Summit reiterated the urgent need for the return from exile of the opposition leaders that will pave the ways for an inclusive participation in the on-going reforms and commended H.E. Cyril Ramaphosa, Deputy President of the Republic of South Africa for his stewardship in facilitating the process in the Kingdom of Lesotho.
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Summit commended the Republic of South Africa for hosting AMANI AFRICA II Field Training Exercise (AAFTXII) in October/November 2015 and member states that contributed graciously and participated on this important exercise.
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Summit noted progress on Madagascar on the political arena and economic recovery, and underscored the importance of regional support to the mobilization of resources in the country’s efforts to revive the economy.
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Summit noted that the Republic of Zambia held a peaceful general elections and urged for the speedy resolution of the pending legal issues currently under consideration by the Constitution Court.
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Summit commended H.E. Dr Carlos Lopes, CEO for UNECA for his excellent presentation on the 36th Theme of the Summit. Summit adopted the theme and directed the Secretariat to expedite the finalization of the SADC Resource Mobilization Framework underpinned by innovative, predictable and sustainable financing modalities.
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Summit received the Report of the Ministerial Task Force on Regional Economic Integration, and noted appreciation the progress made in the implementation of the Industrialization Strategy, emphasizing the need to prioritize and act collective in the implementation in high impact infrastructure projects with potential to catalyse industrialization. While noting progress made in the preparing the Costed Industrialisation Action Plan, and urged Member States to finalise consultations and facilitate its approval in March 2017.
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Summit urged Member States that have not signed and ratified SADC Protocols to do so as soon as practically possible.
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Summit approved the Agreement on the Operationalisation of the SADC Regional Fund, and urged Member States to urgently ratify the Agreement in order to facilitate mobilisation of resources to finance key regional projects and programmes, giving further impetus to preparation of infrastructure and industrialisation.
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Summit noted progress made with regard to the implementation of the Regional Infrastructure Development Master Plan, and urged Member States to scales up implementation of priority infrastructure projects.
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Summit noted with satisfaction, the progress with the commissioning of power generation projects yielding 1700 Mega Watts during the year under review, as well as the planned commissioning of power generation projects whose net output amounts to about 4 000 Mega Watts, which will go a long way in alleviating power shortfalls in the region.
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Summit noted the overall deterioration of the Regional food security situation following the 2015/16 agricultural season occasioned by the extreme El Mino drought phenomenon, which left 39.6 million vulnerable people requiring both food and other humanitarian assistance.
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Summit appealed to the Regional and International Community for continued support to the effected population, in particular to close the gap of E35 billion (US$2.5 billion).
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Summit noted the presentation by Mrs Mary Robinson, the United Nations Secretary General Special Convoy on El Nino on the severe impact of the current situation drought affecting the region, and appreciated supported rendered by the United Nations.
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Summit commended the then Chairperson of SADC , the President of the republic of Botswana, H.E. Lt General Dr Seretse Khama Ian Khama, for declaring a Regional Drought Disaster and launching the SADC Regional Humanitarian Appeal in Gaborone, Botswana on 26th July 2016.
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The Summit also commended the Secretariat for timely preparation of the disaster declaration and humanitarian Appeal.
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Summit received a report on the implementation of the Maseru Declaration on HIV and AIDS, and noted a decline in rates of infections across the region and an increase in the coverage of the Prevention of Mother to Child Transmission (PMTCT) programme with coverage for the SADC region at 90 percentage in 2015. Summit also appreciated the substantial reduction in the incidence of tuberculosis and malaria, including malaria-related mortality.
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Summit noted the progress made with empowerment of women through appointment to key decision making positions. Summit commended Member States that achieved high representation of women in both political and decision making positions and urged Member States to strive towards reaching the gender parity target at all levels.
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Summit also approved the following legal instruments:
a) Draft Agreement Amending the SADC Protocol Against Corruption
b) Draft Agreement Amending the SADC Protocol on Politics, Defence and Security Cooperation
c) Draft Agreement Amending Annex 1 to the SADC Protocol on Finance and Investment
d) Draft Annex on Cooperation in Financial Matters
e) Draft Agreement Amending Article 3(1)9c) of the SADC Trade Protocol
f) Draft Agreement on the Operationalisation of the SADC Regional Development Fund
g) Draft Agreement Amending SADC Protocol on Gender and Development
- Summit also took stock of the status of signature, ratification and accession to SADC Protocol noting that twenty six (26) have entered into force, while the following have not yet come into force, and urged Member States that are yet to accede to these Protocols, to do so.
a) The Protocol on Science, Technology and Innovation
b) The Protocol on the Facilitation of Movement of Persons
c) The Protocol on Trade in Services
d) The Protocol on Environmental Management for Sustainable Development
f) The Protocol on Employment and Labour
g) The new Protocol on the tribunal in the Southern African Development Community
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South Africa Merchandise Trade Statistics for July 2016
Trade surplus shrinks as exports fall
South Africa’s trade surplus shrank in July as the exports of precious metals and stones, which include gold and diamonds, declined.
The surplus decreased to R5.2 billion from R12.5bn in June, the SA Revenue Service said yesterday.
The median of nine economist estimates compiled by Bloomberg was for a surplus of R8bn. The rand’s 27 percent drop against the dollar last year has boosted exports, even as demand in South Africa’s largest trading partners is subdued.
Low metal prices and the worst drought in more than a century have weighed on South Africa, which will probably not grow at all this year, according to the central bank.
“External demand seems to have retained some resilience,” Manisha Morar, an economist at ETM Analytics, said. “We do see some risks to exports going forward.”
The cumulative surplus for this year is R17.4bn compared with a deficit of R24.7bn in the same period last year, the revenue agency said. Exports fell 9 percent to R95.7bn. Imports were 2.4 percent lower at R90.5bn as machinery and electronics and equipment components decreased.
The South African Revenue Service (SARS) has released trade statistics for July 2016 recording a trade balance surplus of R5.22 billion. The cumulative trade balance surplus (01 January to 31 July 2016) of R17.40 billion is an improvement on the deficit for the comparable period in 2015 of R24.67 billion. These statistics include trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS).
Including trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS)
The R5.22 billion trade balance surplus for July 2016 is attributable to exports of R95.72 billion and imports of R90.50 billion. Exports for the year-to-date grew by 10.1% from R592.22 billion to R652.07 billion. Imports for the year-to-date of R634.67 billion are 2.9% more than the imports recorded in January to July 2015 of R616.89 billion.
On a year-on-year basis, July 2016’s R5.22 billion trade balance surplus is an improvement from the deficit recorded in July 2015 of R1.67 billion. Exports of R95.72 billion are 3.5% more than the exports recorded in July 2015 of R92.48 billion. Imports of R90.50 billion are 3.9% less than the imports recorded in July 2015 of R94.15 billion.
June 2016’s trade balance surplus was revised downwards by R0.06 billion from the previous month’s preliminary surplus of R12.53 billion to a revised surplus of R12.47 billion as a result of ongoing Vouchers of Correction (VOC’s). Exports decreased from June 2016 to July 2016 by R9.44 billion (9.0%) and imports decreased from June 2016 to July 2016 by R2.18 billion (2.4%).
Trade highlights by category
The month-on-month export movements (R’ million):
Section: | Including BLNS: | |
Precious Metals & Stones | - R 5 312 | - 22% |
Base Metals | - R 1 257 | - 11% |
Vegetable Products | - R 635 | - 9% |
Mineral Products | - R 614 | - 3% |
Wood Pulp & Paper | - R 366 | - 18% |
Vehicles & Transport Equipment | + R 532 | + 4% |
The month-on-month import movements (R’ million):
Section: | Including BLNS: | |
Machinery and Electronics | - R 1 419 | - 6% |
Equipment Components | - R 865 | - 10% |
Chemical Products | - R 495 | - 5% |
Animal / Vegetable Fats | + R 363 | + 63% |
Base Metals | + R 433 | + 9% |
Trade highlights by world zone
The world zone results from June 2016 (Revised) to July 2016 are given below.
Africa:
Trade Balance surplus: R15 440 million – this is a 18.4% decrease in comparison to the R18 914 million surplus recorded in June 2016.
America:
Trade Balance deficit: R 839 million – this is a 12.7% increase in comparison to the R744 million deficit recorded in June 2016.
Asia:
Trade Balance deficit: R12 292 million – this is a 6.7% increase in comparison to the R11 516 million deficit recorded in June 2016.
Europe:
Trade Balance deficit: R6 611 million – this is a 66.1% increase in comparison to the R3 979 million deficit recorded in June 2016.
Oceania:
Trade Balance deficit: R539 million – this is a deterioration in comparison to the R81 million surplus recorded in June 2016.
Excluding trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS)
The trade data excluding BLNS for July 2016 recorded a trade balance deficit of R3.45 billion, a result of exports of R84.44 billion and imports of R87.89 billion.
Exports decreased from June 2016 to July 2016 by R8.58 billion (9.2%) and imports decreased from June 2016 to July 2016 by R2.07 billion (2.3%).
The cumulative deficit for 2016 is R42.61 billion compared to R84.86 billion in 2015.
Trade highlights by category
The month-on-month export movements (R’ million):
Section: | Excluding BLNS: | |
Precious Metals & Stones | - R 4 306 | - 19% |
Base Metals | - R 1 264 | - 11% |
Mineral Products | - R 815 | - 5% |
Vegetable Products | - R 610 | - 10% |
Wood Pulp & Paper | - R 357 | - 20% |
Vehicles & Transport Equipment | + R 640 | + 5% |
The month-on-month import movements (R’ million):
Section: | Excluding BLNS: | |
Machinery and Electronics | - R 1 416 | - 6% |
Equipment Components | - R 865 | - 10% |
Chemical Products | - R 601 | - 6% |
Base Metals | + R 440 | + 10% |
Vehicles & Transport Equipment | + R 359 | + 4% |
Trade highlights by world zone
The world zone results for Africa excluding BLNS from June 2016 (Revised) to July 2016 are given below.
Africa:
Trade Balance surplus: R6 770 million – this is a 28.8% decrease in comparison to the R9 503 million surplus recorded in June 2016.
Botswana, Lesotho, Namibia and Swaziland (Only)
Trade statistics with the BLNS for July 2016 recorded a trade balance surplus of R8.67 billion, a result of exports of R11.28 billion and imports of R2.61 billion.
Exports decreased from June 2016 to July 2016 by R0.86 billion (7.1%) and imports decreased from June 2016 to July 2016 by R0.12 billion (4.3%).
The cumulative surplus for 2016 is R60.01 billion compared to R60.19 billion in 2015.
Trade highlights by category
The month-on-month export movements (R’ million):
Section: | Excluding BLNS: | |
Precious Metals & Stones | - R 1 006 | -97% |
Vehicles & Transport Equipment | - R 108 | - 7% |
Mineral Products | + R 201 | + 11% |
Textiles | + R 47 | + 10% |
Footwear and Accessories | + R 43 | + 37% |
The month-on-month import movements (R’ million):
Section: | BLNS: | |
Live Animals | - R 191 | - 50% |
Precious Metals & Stones | - R 59 | - 18% |
Vehicles & Transport Equipment | - R 25 | - 40% |
Prepared Foodstuff | + R 47 | + 10% |
Chemical Products | + R 106 | + 36% |
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SADC launches new publications on tracking regional integration
Access to reliable and accurate information is essential to achieving regional integration and sustainable development in southern Africa.
The Executive Secretary of the Southern African Development Community (SADC), Dr Stergomena Lawrence Tax said this when officiating at the launch of four new SADC publications ahead of the 36th SADC Summit which opened on 30 August in Mbabane in the Kingdom of Swaziland.
She said availability of information enables citizens to participate in the integration agenda through educating and informing them about the benefits of belonging to a shared community of southern Africa.
“This is an exciting and proud moment for the region as we unveil new publications which are aimed at enabling SADC citizens, and regional and international partners to get correct and up-to-date information about progress made in implementing regional programmes in terms of achievements and emerging issues on the regional integration agenda,” Dr Tax said.
The “publications are also expected to provide information that is necessary to guide informed decision-making and refocusing of efforts to increase impact and create value for money,” she said.
The four publications that were launched deal with energy, gender, trafficking in persons, and managing economic transformation.
The SADC Energy Monitor 2016, the first of its kind in southern Africa, documents progress made by Member States towards implementation of SADC energy policies and initiatives, including the SADC Protocol on Energy.
The publication focuses on the three main energy sectors of relevance to SADC – electricity, renewable energy and energy efficiency, and oil and gas – and shows that significant progress has been made by Member States in implementing various policies to address the crippling energy situation in the region, despite the challenges.
If all planned energy activities, projects and programmes are implemented as per schedule, SADC is expected to be energy self-sufficient by 2020.
The SADC Gender and Development Monitor 2016, now in its sixth edition, presents an account of progress made towards implementation of regional commitments to achieve gender equality and equity in line with the SADC Protocol on Gender and Development.
The publication shows that most countries in the region have made progress toward gender equality and equity in various sectors, and all Member States have increased the number of women at some levels of decision-making, although falling short of the target of 50:50 by 2015.
In addition to governance, the report covers the constitutional and legal frameworks, education and training, health, productive resources and employment, gender-based violence, peace building and conflict resolution, institutional mechanisms, and media.
The baseline study on Trafficking in Persons in the SADC Region highlights the nature, extent and impact of trafficking in persons in the region.
A total of 13 of the 15 SADC Member States have specific legislation that addresses the issue of human trafficking. These are Angola, Botswana, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, South Africa, Seychelles, Swaziland, the United Republic Tanzania, Zambia and Zimbabwe.
The Democratic Republic of Congo (DRC) and Namibia are consolidating and enacting specific legislation in this regard as they have various pieces of legislation for this purpose.
“Adding Value: A policy toolbox for SADC Member States to manage economic transformation and value chain development” is a publication that provides tools and guidelines to help regional stakeholders to promote value addition, thus increasing the benefits from their products.
The SADC Energy Monitor and the SADC Gender and Development Monitor 2016 were produced for SADC by the Southern African Research and Documentation Centre (SARDC) with support from the Austrian Development Agency.
The other two publications were produced by the SADC Secretariat with support from the German Federal Ministry for Economic Cooperation and Development through the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
The Deputy Head of Mission at the Austrian Embassy in Pretoria, Matthias Radosztics, speaking at the launch, said International Cooperating Partners (ICPs) are committed to working with SADC in advancing the integration agenda.
He said international partners are now aligning their support to the Revised Regional Indicative Strategic Development Plan (RISDP) 2015-2020 and the pdf SADC Industrialization Strategy and Roadmap 2015-2063 (2.34 MB) .
Alignment of support to the two regional documents will ensure the smooth implementation of agreed activities and programmes, thereby promoting socio-economic development and deeper integration.
The publications launch was attended by senior officials from SADC Member States, ICPs and the media.
The theme for the 36th SADC Summit is “Resource Mobilisation for Investment in Sustainable Energy Infrastructure for an Inclusive SADC Industrialisation for the Prosperity of the Region.”
At the summit, President Seretse Khama Ian Khama of Botswana completed his term as SADC chair and hand over the SADC leadership to King Mswati III of Swaziland.
Transforming African development: Partnerships and risk mitigation to mobilize private investment on a new scale
In 2015, countries across the globe signed on to the Sustainable Development Goals of ending poverty, protecting the planet, and ensuring shared prosperity through a new sustainable development agenda. To meet these goals in Africa, investment is sorely needed in basic infrastructure, agriculture and rural development, climate change mitigation and adaptation, health, and education.
Private investments can in many instances take place alongside public and donor investments. Further funding from international financial institutions, especially those that focus exclusively on the private sector, can be used to unlock additional capital through blended or pooled financing and risk mitigation, especially for infrastructure and other investments that support private sector development. Donors and private investors increasingly recognize the benefits of working together.
The timing is right: Africa holds enormous potential for private investors. A continent in transition, it is among the world’s fastest growing regions, with a young and growing population in rapidly expanding cities, an improving business environment, expanding Internet connectivity, rising incomes, and shifting consumption patterns. Despite recent economic and political challenges, these enduring trends have created an abundance of commercial opportunities across the continent, transforming it into a market and opportunity that investors cannot afford to ignore.
Even before the recent global economic turmoil began, investor activity on the continent was constrained by structural obstacles, a lack of risk mitigation mechanisms, and few financing options, all of which inhibit the effective distribution and mitigation of risk associated with large-scale or long-term projects.
Opportunities in rapidly changing markets
The African continent is susceptible to the short-term economic headwinds that most economies now face, and changing conditions are causing some opportunities to fade. Trade and growth in the region are impacted by the effects of a slowdown in China, while a significant drop in commodity prices and a depreciation of local currencies are creating challenges for companies and governments alike. As a net commodity exporter, many African countries are deeply affected by falling commodity prices, putting pressure on current account and fiscal balances.
While most African economies continue to grow, the impact of such global economic trends is raising the cost of doing business in Africa, hampering productivity and growth.
And though near-term regional growth prospects have been revised downward, there are still convincing reasons to invest in Africa, including the existence of a wide range of partners to help overcome the financing challenges that come with working in the region. Notable trends include:
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In Sub-Saharan Africa, growth slowed to 3.0 percent in 2015, from 4.5 percent in 2014. Although growth is expected to slow further to 2.5 percent in 2016 due to depressed commodity prices, it is forecasted to rise to an average of 4.1 percent in 2017-2018. This indicates an improvement in some of the region’s largest economies, including Angola, South Africa, and Nigeria.
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In North Africa, average growth rates in Egypt, Morocco, and Tunisia are also expected to slow in 2016 to 2.4 percent, from 2.9 percent in 2015. However growth in both Tunisia and Egypt, the region’s largest economies, is expected to pick up in 2017.
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Compared to other developing countries, projected per-capita growth rates are higher for African countries, including Ethiopia (6.0 percent), Rwanda (4.6 percent), Cote d’Ivoire (4.6 percent), and Tanzania (3.6 percent), among others (2010-2020 average growth rate).
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Driven by a young population and rapid urbanization, household consumption is expected to continue to grow in important sectors including clothing, communications, energy, financial services, food, health, housing, and transport. In North Africa, spending on education will be particularly critical and is projected to grow.
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Sub-Saharan Africa alone could productively make use of more than $90 billion annually in infrastructure investment but currently receives less than half that amount. The capital shortage going forward is projected to be particularly acute in Nigeria, Angola, and Kenya, while investments in energy, transportation, and logistics offer the most potential for both impact and reward.
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Regional spending to adapt to climate change is expected to be between $5-10 billion per year from public and private sources. Rising temperatures and water supply issues, among other environmental issues, are creating investment opportunities for scaling up low-carbon energy sources and managing water more efficiently.
So while positive structural trends endure across Africa, they are offset to varying degrees, and differing by country and region, by recent cyclical and global economic developments. In suddenly more challenging, less liquid markets, the question, then, for donors, development finance institutions, and private sector participants looking to contribute to sustainable growth and development is: what methods can be employed to raise capital and mitigate risks to enable development through the private sector?
Mobilizing private and public financing solutions
Companies looking to seize still significant opportunities in Africa can benefit from additional sources of financing, as well as tools that crowd in more private sector participants and mitigate risk, spreading it among different investor classes and over longer time frames. Tools such as blended finance, co-financing, climate finance, local debt and equity instruments, private equity, and public-private partnerships are being deployed in Africa in new ways that address risks associated with low-income and fragile states. Public funding or support for advisory services aimed at improving the conditions for private enterprise or the development impact of investments can be deployed alongside commercial financing to hasten growth and encourage shared prosperity. These tools provide innovative paths to securing financing on a scale that can match the scope of business opportunities and help manage risks – both new and old – in high-growth African markets.
Methods exist to underwrite successful investments in Africa. In a riskier environment going forward, they are sure to become more important.
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Public-Private Partnerships are a strategy for projects with the right regulatory framework, sector planning and a high quality off-taker of services and goods to provide the comfort level private investors require to participate. Development institutions often play a critical role in bringing the private and public sectors together to provide those elements.
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Co-financing between private investors and development finance institutions draws on the strength of both to build confidence and spread risk beyond private sponsors and private commercial banks.
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Blended Finance mixes concessional funds – typically from donor partners – with those of commercial development institutions and private investors in a risk-sharing arrangement, with aligned incentives that ensure that official assistance is leveraged as much as possible with private capital.
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Climate Finance brings together public and private sources of financing to support climate-smart investments in emerging markets, using a number of channels, including blended finance, support to local financial institutions, specialist bond issues, and asset management.
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Local Capital Markets and Tailored Solutions offer effective ways to access long-term, local-currency finance and protect economies from capital-flow volatility, and reduce their dependency on foreign debt. Local debt and equity markets can be better leveraged by local corporations when large banks or development finance institutions provide risk guarantees or act as anchor investors, expanding access to additional funding instruments as well as new classes of investors. Other currency risks and market volatility can be addressed through tailored solutions and instruments.
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Private equity, through the assistance of anchor investors, can support the development of large and specialized funds that are able to invest in a wide variety of enterprises, including small and medium size businesses. Meanwhile, development finance institutions can help global institutional investors take equity in African companies, including through asset management.
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Free Trade Agreement between Australia and China (goods and services): Report by the WTO Secretariat
The Free Trade Agreement between Australia and China (hereinafter referred to as “the Agreement”) is Australia’s 11th free trade agreement and China’s 14th free trade agreement.
In 2014, with a population of 23 million, Australia’s GDP was estimated at US$1,454 billion, while that of China, with a population of 1,364 million, was US$10,360 billion. Averaged over the period 2012-2014, the Parties’ trade (goods and services) to GDP ratio was 41.1 for Australia and 46.9 for China.
Merchandise trade
In 2014 Australia’s merchandise exports amounted to US$241 billion (1.27% of global exports) and imports amounted to US$237 billion (1.24% of global imports). In the same year China’s merchandise exports amounted to US$2,342 billion (12.33% of global exports) and imports US$1,959 billion (10.26% of global imports). Australia was the world’s 16th largest exporter and 17th largest importer of merchandise, while China was the largest exporter and 3rd largest importer. The structure of the Parties’ merchandise exports and imports are different, with Australia exporting mainly fuels and mining products (representing 63% of its total exports) while mainly importing manufactures (71% of its total imports). China’s exports and imports are largely manufactures (representing 94% of its total exports and 60.1% of its total imports).
Developments in global and intra-Party trade: Data reported to the UNSD Comtrade database show diverging pictures. A bilateral trade deficit is reported for Australia until 2009 when Australia’s exports to China are reported to substantially outnumber its imports from China, while data reported for China show a trade deficit for China’s trade with Australia during the whole period (2000-2014). At the global trade level, Australia experienced a trade deficit until 2008 since when it has registered a trade surplus. In the case of China a constant trade surplus is observable, with a momentary setback for both exports and imports in connection with the financial crisis in 2009.
Based on 2014 trade data, China was Australia’s largest source of imports and largest destination for exports, while Australia was China’s 7th largest source of imports and 12th largest export destination.
In terms of commodity structure of trade between Australia and China, and between each Party and the world, during the period 2011-2013, machinery (41.5%), textiles (11.8%), and miscellaneous manufactured products (10.1%) together accounted for 63.4% of Australia’s imports from China, while these three sectors were Australia’s 1st, 9th and 10th global imports representing overall only 31.4% of Australia’s total imports to the world (representing respectively 24.7%, 3.6% and 3.1% of Australia’s global imports). These three categories of products corresponded respectively to China’s 1st, 2nd and 4th largest global exports (corresponding together to 60.5% of China’s global exports).
Mineral products represented almost three quarters of China’s imports from Australia (74.7%). Minerals also represents Australia’s top global export (57.4% of Australia’s export to the world), and China’s 2nd largest global import (representing 24.1% of China’s imports from the world).
Trade in services and investment
In 2014, Australia’s shares of total commercial services exports and imports were 1.08% and 1.30% respectively, while China’s share was 4.71% of world exports and 7.98% of world imports of services. With total commercial services exports of US$53 billion, and imports of US$62 billion, Australia was the world’s 14th largest exporter and importer of commercial services. China was both the 3rd largest exporter (US$232 billion) and importer (US$382 billion).
Global trade in commercial services for Australia and China (based on the period 2005-2014): For both Parties, the available sets of data show an overall deficit in trade in commercial services with the world. In the case of Australia, Travel, transport and other business services represent the three mainly traded services, in terms of both exports and imports. While this is also the case for China, services classified under charges for the use of intellectual property and insurance and pension services also represent an important proportion of China’s overall global exports. Based on data provided by Australia for bilateral trade in services with China during 2012-14, Australia’s major imports include transport and travel services while exports are mainly classified under travel services. During the three year period before entry into force of the Agreement Australia ran a stable surplus in its services trade with China.
Foreign direct investment stocks and flows with the world during the period 2000-2014: FDI flows of both Parties with the world has grown steadily in the case of China, while fluctuating during the period for Australia, with however a major setback (in both inward and outward FDI flows) reported in 2005. Based on data reported by Australia, it was a net recipient of FDI for the period considered. The same trend can be observed based on data reported by China, though the order of magnitude differs. Complete data on bilateral FDI are not available.
Characteristic elements of the agreement
Background Information
The Agreement was signed on 17 June 2015 and notified on 26 January 2016 under Article XXIV:7(a) of GATT 1994 and Article V:7(a) of GATS (see document WT/REG369/N/1 - S/C/N/858). Its conclusion follows the Trade and Economic Cooperation Framework between China and Australia, adopted in 2003, and is also consistent with the APEC goals and principles.
The Agreement establishes a free trade area (Article 1.1). The text of the Agreement, together with its annexes, is available here or download below.
The Agreement is composed of 17 Chapters. A number of Annexes, including the Parties’ tariff elimination schedules and the lists of reservations on cross-border supply of services and establishment (non-conforming measures) and of specific commitments on trade in services also form part of the Agreement. Side letters on specific issues complement the text of the Agreement. The Agreement also includes memoranda of understanding on an investment facilitation arrangement, and on a work and holiday visa arrangement.
The Parties shall undertake a general review of the Agreement, with a view to furthering its objectives, within three years of the date of entry into force of the Agreement and at least every five years thereafter (Article 16.5).
Provisions on trade in goods
Chapter 2 of the Agreement covers trade in goods. It is complemented by Chapters 3 through 7, which also contain disciplines applicable to trade in goods.
Chapter 2, inter alia, governs the elimination of customs duties according to the Parties’ Schedules. It also confirms the applicability of Article VII of the GATT 1994 and the WTO Customs Valuation Agreement (Article 2.6), and prohibits the Parties from adopting or maintaining a measure that is inconsistent with the WTO Import Licensing Agreement (Article 2.8).
A Committee on Trade in Goods is established to address tariff and non-tariff barriers to trade in goods between the Parties (Article 2.15). It shall, among other functions, review Parties’ non-tariff measures in certain circumstances to ensure that unnecessary obstacles to trade are not created (Article 2.7). The Committee shall submit an initial progress report on its work relating to non-tariff measures, including any recommendations, within one year of the date of entry into force of the Agreement. The Committee shall also review the implications of each periodic Harmonized System amendment and promptly recommend any necessary amendment to the Parties’ Schedules of tariff concessions under the Agreement and/or the Annex containing the product specific rules of origin.
Provisions on trade in services and investment
Chapter 8 contains disciplines on trade in services, while Chapter 9 covers investment. Annex III to the Agreement constitutes an integral part of the Parties’ commitments under these two Chapters. For Australia, it includes market access commitments scheduled on a negative list basis. For China, it includes market access commitments scheduled in a positive list basis.
Chapter 10 complements the rules and disciplines on trade in services and investment as applied to measures affecting the movement of natural persons of a Party into the territory of the other Party.
A review clause is contained in Article 8.24. The Parties shall consult within two years of the date of entry into force of the Agreement and every two years thereafter, to review the implementation of Chapter 8 and consider other trade in services issues of mutual interest, with a view to the progressive liberalization of the trade in services between them. In case of unilateral liberalization by a party, the other party may request consultations to discuss the measure. As mentioned below, after the entry into force of the Agreement, at a time to be mutually agreed by them, the parties shall initiate a next round of negotiations on trade in services.
The Agreement established a Committee on trade in services (Article 8.20), as well as contact points (Article 8.21). It also established a Committee on investment (Article 9.7).
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Uganda’s progressive approach to refugee management
Uganda offers refugees a home away from home
Five years ago, Moses*, 39, fled with his family to Uganda to escape ethnic violence in his home area of North Kivu, in the eastern region of the Democratic Republic of Congo. Today, he is employed as a hairstylist at a high-end beauty parlor at the Fairway Hotel in Uganda’s capital city, Kampala.
“Ugandans are very hospitable and welcoming. I make a good living here, and can take care of my family very well,” says Moses, who spent nearly a year in Nakivale refugee settlement in Southwestern Uganda before finding his way to Kampala in search of better employment opportunities.
“He is very talented and hard-working. We have seen a significant increase in the number of customers since he joined us,” the salon manager says of Moses.
Uganda is currently the third-largest refugee-hosting country in Africa after Ethiopia and Kenya. More than 500,000 refugees from 13 countries are settled in Uganda in various refugee settlements in nine districts, according to a World Bank study on Forced Displacement and Mixed Migration in the Horn of Africa. Nakivale is the 8th largest refugee settlement in the world, hosting more than 60,000 refugees, the majority of them from the Democratic Republic of Congo.
Uganda’s 2006 Refugee Act, considered one of the most progressive and generous in the world, provides free healthcare and education in refugee settlements and permits refugees to move freely in the country. Many refugees like Moses have benefitted from Uganda’s open door policy that gives them a chance to start life afresh, in dignity. Refugees are given fertile land to grow food for the entire duration of their stay in the country, and can work or set up businesses to help them become self-sufficient and less dependent on handouts. This has enabled many of them to contribute to the local economy, and to be able to rebuild their lives and communities upon return to their home countries.
“It is my view that an economically empowered refugee is beneficial to the national economy and as a nation we should work towards this,” noted Uganda’s Ambassador Marcel Tibaleka to Germany and The Vatican, during a dialogue on “Free Movement of Persons,” held last April in Bonn.
Despite the progressive refugee policy, Uganda is beginning to buckle under the pressure of the continued influx of refugees, particularly from South Sudan. More than 70,000 South Sudanese refugees have fled to Uganda since violence broke out in Juba on July 8 between government troops of President Salva Kiir and forces loyal to former First Vice President Riek Machar. More than 85% of the new arrivals are women and children, with children comprising 64% of new arrivals. This is putting a strain on host communities, with local government authorities and agencies unable to cope or provide basic and essential services.
In Adjumani district, which hosts the bulk of South Sudanese refugees, the number of refugees has shot up to 170,000, threatening to outnumber the 210,000 registered locals in the area.
“If the population of refugees in Adjumani outnumber the population of the host community, the pressure on the environment and social services will be high,” observes Titus Jogo, the Refugee Desk Officer (RDO) in charge of Adjumani under the Office of the Prime Minister (OPM).
OPM Commissioner for Refugees David Apollo Kazungu said in a statement: “People are fleeing because they are afraid for their lives. Our communities are welcoming them and giving them what we can: land and hope for a better future. But our message to the international community is this: We need your help to meet their basic needs until they are able to stand on their own two feet.”
In May this year, the World Bank Board of Executive Directors approved $175 million in financing to provide relief to refugee-host communities in the Horn of Africa, including Uganda. Funding for the Development Response to Displacement Impacts Project (DRDIP) comes from the International Development Association (IDA), the World Bank’s fund for the poorest, and includes $100 million to Ethiopia, $50 million to Uganda, $20 million to Djibouti – all at low to no interest – and a $5 million grant to the Intergovernmental Authority on Development (IGAD) to establish a regional secretariat for Forced Displacement and Mixed Migration. The secretariat will support a holistic regional response, backed by data, to influence interventions in both refugee-hosting and refugee-producing countries.
The Bank is working very closely with the United Nations High Commissioner for Refugees (UNHCR) to seek solutions to the refugee crisis in Uganda, including by improving access to basic services, expanding economic opportunities, and enhancing environmental management for communities hosting refugees.
“The generosity of the Ugandan host community in sharing their meager resources and services with refugees over decades, especially in Northern Uganda, is truly remarkable, notwithstanding their own struggles,” said Christina Malmberg Calvo, World Bank Country Manager in Uganda.
“The DRDIP is a first of its kind for the Government of Uganda and will offer much needed relief to the refugee humanitarian response alongside support to host communities to cope better. In a way the project will enable the Government to provide a ‘generosity dividend’ to the host communities through investments to improve their social and economic well-being,” said Varalakshmi Vemuru, Senior Social Development Specialist and lead author of a new World Bank report, An Assessment of Uganda’s Progressive Approach to Refugee Management. The report is supported by the Global Program on Forced Displacement.
*not his real name
Engendering hope: Uganda’s progressive policies on refugee management
For several decades now, Uganda has been generously hosting refugees and asylum seekers from the conflict-affected countries in its neighborhood, especially the Democratic Republic of Congo, Somalia, South Sudan, Rwanda and Burundi. Since achieving its independence in 1962, the country has been hosting an average of approximately 161,000 refugees per year; and the numbers crossed 550,000 in August 2016. In three weeks since the latest fighting in South Sudan broke out on 8 July, nearly 37,491 people were forced to flee to Uganda, more than in the first six months of 2016, according to UNHCR.
Uganda’s door is open to all asylum seekers, and the country is lauded for having one of the best refugee law and policy regimes in the world. Uganda has emerged as a country possessing a very receptive climate for refugees and “the place where the rest of the world can learn something about the treatment of refugees” according to a 2015 feature by ZIET Online editor Von Philip Faigle. While Uganda is experiencing an ongoing “silent emergency” due to a “slow but steady” refugee influx, especially from the Democratic Republic of Congo, and more recently, Burundi and South Sudan, it has nevertheless kept its asylum door open to all seeking refuge within its borders. Pope Francis himself, upon his visit to Uganda in November 2015, praised the country for showing “outstanding concern for welcoming refugees, enabling them to rebuild their lives.”
There have been attempts to understand why Uganda and Ugandans are exceptional in their openness and generosity toward refugees. Explanations range from many Ugandans themselves having been refugees or internally displaced at one time, the cultural and linguistic openness of Ugandan society, ethnic affinities between Ugandans and many refugees from across the border, the political ideology of Pan-Africanism, and decades of political stability despite its geographical location in a turbulent neighborhood.
Refugee policy regimes globally fall along a continuum of allowing or disallowing refugee’s freedom of movement, the right to work, and property ownership rights; in countries hosting refugees. Global experience shows that self-reliant refugees are better prepared to return to their countries of origin. In both new and protracted displacement situations, enhancing self-reliance of refugees requires a conducive legal and policy framework as seen in Uganda.
While the main focus of domestic refugee laws in many countries is regulating the asylum and refugee status determination process and setting up national refugee agencies, few have provisions effectively addressing the key development issues associated with displacement.
The overall objective of the assessment on Uganda’s Approach to Refugee Management was to analyze the evolving refugee policy and practices in Uganda to better understand how well the policy framework has contributed to the refugees’ well-being and self-reliance; and identify key areas of policy and practice that can be better implemented to enhance social and economic benefits for refugee and host communities. The World Bank, in collaboration with the Office of the Prime Minister, the government of Uganda, and UNHCR Uganda, undertook the assessment.
Uganda’s progressive refugee policy and legal framework has many impressive aspects: (1) opening Uganda’s door to all asylum seekers irrespective of their nationality or ethnic affiliation, (2) granting refugees relative freedom of movement; administrative permits to leave and return to their designated settlements, and the right to seek employment; (3) providing prima facie asylum for refugees of certain nationalities; and (4) giving a piece of land to each refugee family for their own exclusive (agricultural) use.
According to the report, the 2006 Refugees Act and the 2010 Refugees Regulations embody key refugee protection principles and freedoms, including: (1) the right to own and dispose of movable property and to lease or sublease immoveable property; (2) the right to engage in agriculture, industry, and business; practice ones profession; and access formal and informal employment opportunities; (3) the right to economic, social, and cultural benefits, including access to elementary education, protection of intellectual property rights; (4) entitlement to receive fair and just treatment, without discrimination – among others.
There is however one significant limitation of the legal framework as it does not provide the permanent solution of citizenship for refugees who can neither repatriate nor be resettled elsewhere; not very different from most countries in Africa or across the world. Refugees can, however, vote and be elected at the village level, per Section 46(3) of the Local Government Act and the constitution.
Social impacts are circumscribed by the underlying poverty and vulnerabilities exacerbated by weak basic social services delivery, poor infrastructure, and limited market opportunities in the refugee hosting settlement areas that impacts refugees and host communities alike. However, refugees located in rural settlements, whether on community-owned or gazetted lands, are able to access basic services, receive physical protection, and cultivate land provided to them for self-sustenance. Refugees with some income or ability to fend for themselves are self-settled in urban centers. A commendable level of peaceful coexistence is evident between refugees and host communities in all of the settlements. Intermarriages are reported in many settlements, contributing to improved relationships.
Economic opportunities for refugees in terms of employment (formal and informal) and access to productive capital varies in rural and urban areas. More than 78 percent of refugees in rural settlements are engaged in agricultural activities compared with 5 percent in urban areas. Crop surpluses attract Ugandan traders to the refugee settlements, operating as a direct supply chain. The refugee labor force participation rate (LFPR) is an average 38 percent compared with Uganda’s 74 percent. A variety of nonfarm activities supplement agriculture, including trade, which is facilitated by the freedom of movement and right to work per the Ugandan Refugees Act. Business enterprises such as bars, hair dressing, milling, transportation, money transfers, and retail are run by refugees. In terms of employability and economic integration of refugees, almost 43 percent are actively engaged in the labor market of their host communities: 12 percent in the formal sector and 31 percent self-employed.
The conclusions of the study are that as the government of Uganda and UNHCR strive to reduce poverty and mitigate risk for vulnerable refugees and their host communities, the close involvement of key stakeholders, such as district leadership, sector ministries, host communities, and refugees, is imperative. A shift in the philosophy of refugee assistance is also crucial: refugees should be viewed as economic actors in charge of their destiny (development approach) rather than as beneficiaries of aid (humanitarian approach). To ensure impact, the focus should be on transformative investments that will address the pressing needs of refugees and host communities alike and that will jump-start local economies. Further, a comprehensive approach is needed to enhance girls and women’s access to education and livelihoods and to reduce security and safety risks among them. Specific attention and backstopping is needed for urban refugees – especially youth – to enable them to benefit from social and economic opportunities without being exploited or resorting to risky behaviors.
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Free movement in Africa is desirable, but how to realize it?
Free movement is back on the continent’s policy agenda and within its integration discourse. Such discourse has also been buttressed by several encouraging developments over the last year or so, notably the launch in early 2016 of a new Africa Visa Openness Report; the move by several African countries to offer visas on arrival to citizens of AU member states; and the July 2016 launch of the African passport.
Underpinning all of these developments, and particularly the launch of the African passport, is the African Union’s Agenda 2063, which calls for visa-free travel by all Africans in Africa by 2018. These are encouraging developments which move us closer to the point when Africans move as freely across the continent as European Union citizens move across Europe, and American citizens move across the United States.
Unfortunately, though, wanting free movement is not enough to make it happen. Regional integration in Africa has long been an extraordinarily promising and frustrating policy area. Promising, because most experts and policymakers agree that integration will yield enormous economic and social benefits for African countries and citizens. Frustrating, because despite treaties, agreements and public statements of support by African leaders over the decades, real progress towards regional and continental common markets in which people, goods, services and capital move freely, has been slow and is incomplete.
Accordingly, I would like to make four suggestions on how to advance progress on free movement in Africa.
Address the reasons why countries impose visa requirements in the first place
In general, democratic countries impose visa requirements on citizens of other countries, for two main reasons: risk of overstaying, and security concerns (organized crime, terrorism, persona non grata). Based on my experience in international migration management, I would also add assessment of whether a source country’s citizenship system is secure, identity and travel documents difficult to obtain fraudulently, and whether she is able and willing to identify its citizens in the event that they overstay, commit crime or are involved in an accident or emergency situation. These are the main substantive reasons why countries require visas of other countries, and they are unlikely to lift visa requirements if they are not addressed.
There are two broad ways to address these issues. We can address them on the source country side, by improving the maturity of their civil registration and law enforcement capabilities. Alternatively, we can address them on the destination side, by finding ways to mitigate risks and issues in source countries, such as through sophisticated information sharing to identify high-risk prospective travelers, and trusted traveler programmes.
Free movement should be pursued in the context of trade agreements
Free movement encompasses three types of freedoms: visa-free entry for short visits; right of residence, including the ability to work; and the right of establishment, the ability to sell services or establish a business without discrimination based on nationality.
The Abuja Treaty of 1991 envisioned that Africa’s regional economic communities (RECs) would establish common markets which would form the basis of a future continent-wide common market. What is important here is less the focus on which blocs will integrate first, but rather the link with the common market.
In my view, free movement is too often discussed in isolation, and is unlikely to be solved outside of economic integration more broadly. In other words, where free movement is stalled, it may well be because economic integration is stalled. It is also impractical for countries to draft, agree and ratify complicated agreements on labour mobility with countries with whom they do not have free trade agreements or common market arrangements. For this reason, developments in the Tripartite Free Trade Area (TFTA) and the Continental Free Trade Area (CFTA) negotiations, particularly on the free movement of people are worth following closely.
Look to regions, and even sub-regions, for progress
As an example, the Southern African Development Community (SADC), lags behind the Economic Community of West African States (ECOWAS) in freeing movement of people. As of December 2014, ECOWAS had implemented free movement, residence and establishment of ECOWAS citizens, in addition to having previously implemented an ECOWAS passport. The SADC Protocol on the Facilitation of Movement of Persons has been ratified by only four of the required nine of SADC’s 15 member states, leaving member states to manage movement on their own.
Where progress is stalled at REC level, the free movement agenda need not languish. The history of the Schengen Agreement is instructive here. In the early 1980s, the European Community (EC) was slow to agree a mechanism for liberalizing movement. A subset of neighbouring countries – Belgium, France, Germany, Luxembourg, and the Netherlands – met and formed the Schengen agreement. Other countries joined later as its merits were proven, and eventually the European Union recognized and absorbed the Schengen Agreement.
So if countries are unable to agree on measures to free movement at REC level because of differing political priorities, differing levels of development, as well as differing levels of maturity of civil registration and immigration management, then perhaps small groups of neighbouring countries should forge ahead and the rest can catch up later.
Quantify the benefits to encourage countries to free movement
It has long been argued that economic integration will be of positive benefit to all African countries. Occasionally these arguments are bolstered with figures, such as how Rwanda has increased tourism since implementing visas on arrival for African visitors. Still, when we talk about free movement, there are costs and risks for countries to consider. Countries may reasonably worry about how free movement will affect their labour market, housing prices or social spending. In the absence of strong evidence, policymakers may be reluctant to open up while big question marks remain.
There is, therefore, a need for rigorous research on the likely benefits and costs of free movement for African countries, which can be applied to the policy discourse. An institution like the African Development Bank, which routinely conducts independent, rigorous research on African development issues, as it did with the Visa Openness Index Report can play a critical role here. Quantifying the benefits in terms of GDP growth and employment may encourage African leaders to forge ahead, while surfacing the challenges and costs to mitigate and minimize.
Mandla Lionel Isaacs is Director of Research at the Ministry of Home Affairs in South Africa.
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tralac’s Daily News Selection
The selection: Wednesday, 31 August 2016
Out today: SARS will release SA’s July trade balance at 14h00. Bloomberg consensus is for the surplus to have narrowed to R8.0bn in July from R12.5bn in June. Standard Bank expects the trade surplus to have widened to R14.7bn.
Starting tomorrow, in Kampala: EABC Public Private Dialogue to discuss how intra-EAC trade is hampered by technical regulations
Activities undertaken by UNCTAD in support of Africa (UNCTAD)
UNCTAD will soon start activities on a four-year project, under the Development Account, on informal cross-border trade for the empowerment of women, and economic development and regional integration in Malawi, Tanzania and Zambia. Analytical work of the project will deal with issues such as how to address the complexity and opacity of trade barriers to informal cross-border trade in a context of multiple overlapping trade arrangements and how to accommodate the specificities of informal cross-border trade, especially involving women, when designing and implementing suitable supply-side services that support cross-border trade flows. A better understanding of these issues will enable decision-makers to take informed and targeted policy action. [Agenda items for Trade and Development Board, 63rd executive session, Africa and the Trade and Development Report, 27-29 September]
President Museveni’s APRM-approved discussion paper: ‘The 11 bottlenecks facing Africa’ (APRM)
The 25th Summit of the Heads of State and Government participating in the African Peer Review Mechanism endorsed the following discussion paper presented by President Yoweri Musevi. In this regard, His Excellency would like to encourage the Forum to deliberate on the following Eleven Bottlenecks and consider them as part of the APRM tool. In conclusion, His Excellency would like to highlight to the Forum that the policies governments pursue are not the end in themselves. Policies are a means to an end. The end is the total social-economic transformation of Africa as envisioned in Agenda 2063. Therefore, when countries are being Peer reviewed, it is important to see how far we have gone in eliminating these bottlenecks.
Brian Mureverwi: An overview of the agenda for the 36th SADC Heads of State and Government Summit (tralac): The theme continues the industrialization trajectory of the last two summits hosted by Zimbabwe in 2014 and Botswana in 2015, which focused on economic transformation and sustainable development through beneficiation and value addition, and on transforming natural resources and human capital to boost sustainable development respectively. The 2016 summit is expected to deliberate a wide range of issues, and notable items on the agenda of the Heads of State and Government include: economic situation in the region, regional and continental economic integration, status of regional integration: implementation of the Regional Indicative Strategic Plan, food security, regional peace and security cooperation, gender and development.
Incoming SADC chair calls for “unified force” on resource mobilisation: During its tenure as SADC chair, Swaziland intends to focus on raising resources from SADC Member States and from International Cooperating Partners. The issue of a sustainable financing mechanism for SADC’s regional integration agenda dates as far back as 2006 when leaders from the region acknowledged at their 26th summit held in Lesotho that the march towards regional integration has been painstakingly slow and requires greater commitment by member states in order to attain the goal of a common future for southern Africa. Ten years later, the issue is still topical but is now being addressed with more vigour. It is estimated that only 9% of regional projects are presently funded by SADC Member States while the balance of 91% comes from ICPs. [President Khama: SADC committed to industrializing its economy]
Commentaries on SADC governance: Dewa Mavhinga (Human Rights Watch) 'Reverse downward slide on rights', Alfredo Tjiurimo Hengari (Amnesty International) 'SADC is failing to protect human rights'
SADC workshop: best practices on cyber security and PKI (GoM)
A SADC workshop on cyber security and PKI (public key infrastructure), aiming at sharing best practices and strengthening SADC regional cooperation mechanisms pertaining to cybercrime offenses and developing a framework for PKIs for SADC Member States, has opened in Mauritius. Organised by the Ministry of Technology, Communication and Innovation in collaboration with SADC, the four-day event brings together more than 50 participants. Issues discussed include: current status of cyber security frameworks – legal and regulatory, establishment of Computer Incidence Response Teams and PKI; digital signatures; SADC cyber security regional cooperation and a roadmap for implementing PKI in SADC; and PKI ecosystem.
ESAAMLG: ‘Money laundering threatens region’s economy’ (The Chronicle)
Eastern and Southern Africa Anti-Money Laundering Group member states have been challenged to put in place stiff legal frameworks to fight money laundering and terrorism. Officially opening the 32nd Taskforce of Senior Officials’ meeting on Monday, Permanent Secretary in the Ministry of Finance and Economic Development Mr Willard Manungo said the African region’s economy was under threat from vices emanating from money laundering and terrorism financing. The meeting which is being attended by officials from across Africa, is part of the week-long conference which started on Sunday and ends on Saturday.
Kenya pursuing her own deal after region’s EPA deadlock (The Star)
Kenya has sent a delegation to the EU for talks, to shield the country from heavy taxes on its exports, as closing the EPA by October appears unlikely. This follows failure by its neighbours – Tanzania, Burundi, Uganda and Rwanda – to ink the EPA deal on time, to pave way for its ratification by the European Commission on October 1. Industrialisation Cabinet secretary Adan Mohamed and Principal secretary Chris Kiptoo are leading the trade delegation including the private sector, on four days of talks in Brussels, Belgium, the Star learnt on Monday. The delegation aims to push for a bilateral trade deal with the EU. It is not clear whether Kenya wants to go it alone or seek an extension of the deadline, but an official familiar with the talks said Kenya wants to secure preferential market access even after the October deadline. PS Kiptoo, however, indicated that Kenya is still willing to sign the pact with EAC member states.
Tanzania: Bunge committee censured for suggesting EAC ‘mutiny’ (IPPMedia)
A suggestion by the Parliamentary Committee on Infrastructure that Tanzania needs to exit the EAC’s single customs territory has drawn a negative reaction from various stakeholders who argue that it goes against the spirit of regional integration. Moreover, the single customs territory alone can’t be blamed for rapidly declining transit cargo figures currently being experienced at the port of Dar es Salaam, some stakeholders argue. They say a more valid reason for the cargo traffic drop at the country’s main sea-port is the government’s 18% Value Added Tax imposed on transit goods; a tax that does not apply to the rival ports of Mombasa in Kenya or Beira in Mozambique. The proposal for Tanzania to remove itself from the EAC single customs territory was made by members of the parliamentary watchdog committee when meeting with officials from the Ministry of Works, Transport and Communication in Dodoma on Monday. [Related: MPs warn govt over EAC single customs territory]
South Africa: ArcelorMittal settlement is new and tricky territory for competition authorities (Business Day)
The competition authorities are wading into new and tricky territory. Under the settlement, a cap has been imposed on ArcelorMittal SA’s profit margins on its products. The authorities now have to ensure the steel maker sticks to a 10% cap on its earnings before interest and tax on flat steel. ArcelorMittal SA can expect to benefit from tariff protection and preferential procurement of local steel in infrastructure projects. This settlement suggests the company and the government may have finally found the path to a symbiotic future. This might serve as a useful illustration for other industries in which the public and private sector are at loggerheads to the detriment of the economy. [The analyst: Trudi Makhaya] [ITAC hearing: Call to scrap steel import tariffs in SA]
Zimbabwe: ‘Include all wheat flour on SI 64’: grain millers (The Herald)
Grain millers are lobbying Government for the inclusion of all types of wheat flour on Statutory Instrument 64 of 2016 so that they be subjected to the same import control regime as other products listed under the measure as they seek to halt the continued decline in national bread consumption. National bread consumption has fallen sharply to under one million loaves per day from around 1,5 million about five years ago. This translates to a bread flour requirement of about 400 tonnes of flour against an aggregate national installed flour milling capacity of 2 100 tonnes per day. In this regard, the millers said continuation of bread flour imports is self-destructive because current national bread flour demand is less than 25% of national installed flour milling capacity. [Bakeries operate at 45%]
Mozambique: log export ban from next year (MacauHub)
In a measure designed to encourage local processing, exporting whole logs from Mozambique will be banned outright from next year, regardless of the species concerned. The National Director of Forestry in the Ministry of Land, Environment and Rural Development, Xavier Sakambuera explained that a bill on the subject has already been sent to parliament for review and approval. Latest figures indicate that the current level of timber harvest is between 500 and 670 thousand cubic metres per year. Overall loss of forest is running at about 220 thousand hectares, including the impact of other actions such as wildfires, cultivation, and the construction of housing and other infrastructure. [Mozambique seeks Kimberley Process certification to export newly-found diamond wealth]
COMESA trade policy processes: selected updates
Trade and Customs Committee: ‘implement regional instruments for integration to deepen’: Ms Kayula Siame, Permanent Secretary in Zambia’s Ministry of Commerce, Trade and Industry, says COMESA has put in place a number of institutions, instruments and policies aimed at improving integration and boosting intra-COMESA trade, but these are not implemented fully by the various member States. This, she said, has contributed to the region to delay in attaining its key objective of promoting joint development in all fields of economic activity and programmes to raise the standard of living of its people and to foster closer relations among member States. She revealed that a recent survey undertaken by the Secretariat has shown low levels of implementation of regional commitments at national level and suggested sustained sensitization and awareness campaigns of the COMESA protocols and more importantly the intended benefit of regional integration. “Awareness creation is crucial for COMESA, ultimately trade investment is spearheaded by the private sector and this is the audience we need to sensitize in order for them to have the utmost confidence in the opportunities within the region,”
COMESA experts meet in Nairobi for harmonized commodities list: Senior trade ministry experts and heads of customs from 19 countries forming COMESA met in Nairobi [last Friday] to agree on a harmonized list of products and taxes to be charged on those products, officials said. Francis Mangeni, Director of Trade, Customs and Monetary Affairs at the COMESA Secretariat, said the experts met to discuss a new list of 6000 products that are traded around the world to agree on the common taxation and how to classify them.
Global prices of commodities affect COMESA trade: COMESA’s global trade for 2015 recorded a deficit mainly due to the fluctuating prices of commodities on the world market. Assistant Secretary General for Programmes Ambassador Kipyego Cheluget revealed in Lusaka that provisional figures available at the Secretariat are showing that COMESA’s global trade deficit was at $100bn in 2015. Both 2014 and 2015 had the highest levels of trade deficit recorded in the past 9 years at $97bn and $100bn respectively.
COMESA Committee on Statistical Matters hears calls for a regional statistical network: Secretary-General Sindiso Ngwenya has called on statistical technocrats from various Central Statistical Offices, central banks and ector ministries in the region to form a regional statistical network to enhance knowledge sharing and information exchange if meaningful regional integration is to be attained. Mr Ngwenya was speaking when he officially opened the seventh meeting of the COMESA Committee on Statistical matters in Lusaka on 22 August 2016.
ECA to launch monthly continental ‘Statistics Flash’
Oliver Chinganya, of the ECA’s African Centre for Statistics, says the Flash is a one-stop shop document that will provide an understanding of what is going on in Africa at a glimpse. Areas covered include price levels, the consumer price index, population, life expectancy and related issues. He said the Flash will look at a different country of the 54-member States every month. First to be featured by the Africa Statistical Flash are the 13 fastest growing African economies which are the drivers of Africa’s GDP, among them Ethiopia, Nigeria, Kenya, Rwanda and Ghana. “We have populated about 80% of the database; we are still cleaning it up before we can share it with the public. If we are going to be that one stop-shop for critical data on Africa, we need to have credible data that can be used not only by us but also our member states. Together with our partners, we aim to create our African Statistics Database.”
ECOWAS: member states work out means of implementing conflict prevention tenets
Representatives of ECOWAS Member States are meeting in Abuja to iron out means of implementing the ECOWAS Conflict Prevention Framework. Noting that since inception in 2008, there has been limited knowledge and ownership of the ECPF by the Member States who signed it into existence, the Commissioner observed that due to the occurrence of many security challenges in the region, there have been limited programmes developed by the Commission to generate awareness about the ECPF in Member States. The Commissioner further remarked that the security situation in the region has become a concern at the national, regional and international levels since the terrorist attacks in Cote d’Ivoire, Burkina Faso, Niger, Nigeria and Mali just as the increasing incidence of clashes between farmers and herdsmen, rural banditry, electoral violence, ethno-religious violence are matters of urgent concern that requires preventive interventions. [IGAD consultative meetings: development of regional strategy on preventing and countering violent extremism]
AfDB consultancy: Promoting intra-African investment, regional investment policy framework (pdf)
The specific duties and responsibilities of the consultant will include: (i) provide support to three selected RECs, namely ECOWAS, WAEMU and CEMAC in designing or reviewing their Regional Investment Policy Framework or regional investment agreements and SMEs policies to address the misalignment between the regional policy and the national policies, (ii) help the above-mentioned RECs and regional member countries to review these frameworks, agreements and policies; update, harmonize and implement them, (iii) develop and recommend SMEs policies to promote SMEs integration in the regional productive/value chains and access to intra-regional/African investments and markets.
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Incoming SADC chair calls for “unified force” on resource mobilisation
The annual summit of southern African leaders commenced in Swaziland on 30 August, with an undertaking by the incoming chairperson to push for finalisation of the establishment of a fund to ensure sustainability of the regional integration agenda.
The incoming chairperson of the Southern African Development Community (SADC), King Mswati III of Swaziland said he would use his tenure to ensure that “the numerous initiatives launched by SADC over the years become a reality for the benefit of our peoples.”
In an acceptance speech soon after taking over the chair from President Seretse Khama Ian Khama of Botswana, King Mswati said lack of resources has stalled the attainment of the full potential of the 15-member regional grouping.
“We have reached a juncture where as member states, we need to show commitment to our objectives by contributing to a fund that would serve as start-up capital for our programmes and projects in the various sectors,” he said, referring to the proposed SADC Regional Development Fund that has been on the cards for several years.
He said, when operational, the fund would be used as “collateral as we seek to raise funding from external sources to implement infrastructure projects in the region.”
During its tenure as SADC chair, Swaziland intends to focus on raising resources from SADC Member States and from International Cooperating Partners (ICPs).
The issue of a sustainable financing mechanism for SADC’s regional integration agenda dates as far back as 2006 when leaders from the region acknowledged at their 26th summit held in Lesotho that the march towards regional integration has been painstakingly slow and requires greater commitment by member states in order to attain the goal of a common future for southern Africa.
Ten years later, the issue is still topical but is now being addressed with more vigour.
King Mswati said it is critical for member states to operationalize the proposed SADC Regional Development Fund to ensure that the region is able to take full charge of its integration agenda, which currently depends on external support.
It is estimated that only nine percent of regional projects are presently funded by SADC Member States while the balance of 91 percent comes from ICPs. This situation has compromised the ownership and sustainability of regional programmes.
“We therefore, have to speak in one voice for resource mobilisation. They say a unified force is stronger than a unilateral force. SADC represents a unified force, so we hope we can strengthen our capabilities and speak as one family,” King Mswati said.
The region has during the past few years vigorously pursued an economic integration agenda involving the implementation of the SADC Industrialisation Strategy and Roadmap and the SADC Regional Infrastructure Development Master Plan.
Implementation of both strategic documents demands several billions of dollars, funds which the region has struggled to raise during the past few years.
“There should be no room for failure as our success will have a positive impact on our region and create a better future for our people,” said King Mswati.
According to a document released at the 33rd SADC Summit held in Lilongwe, Malawi in August 2013, some groundwork had been done with regard to establishment of the fund.
At the time there were suggestions that member states should take up 51 percent of the shares in the facility, against 37 percent for the private sector and 12 percent for ICPs.
It was also proposed that the fund will have seed capital of US$1.2 billion, with member states expected to contribute US$612 million while the private sector would take up US$444 million of the share capital and US$144 million was to come from ICPs.
Under the proposal, subscription to shares would be made over five years in equal instalments. The first subscription would be due within the first year of the Fund coming into force.
Any shares not subscribed to by the end of the fifth year would be reallocated to other member states on the basis of ability to pay.
The proposal was to have the first 25 percent of the shares divided equally among member states and members will be obliged to contribute. The remaining 26 percent would be allocated based on economic ability.
In addition to the creation of the SADC Regional Development Fund, the region is also in the process of engaging consultants to develop a SADC Resource Mobilisation Framework (Alternative Sources of Funding SADC Regional Programmes).
The framework will explore seven different but co-related alternative sources of funding to determine how fiscal space could be created to enable SADC Member States to finance regional programmes, projects and activities.
The possible sources include how to curb Illicit Financial Flows (IFFs); the creation of a regional lottery system; harnessing the resources from a proposed philanthropy network and database of private sector companies; development of a sharing formula for import and export levies; introduction of regional transport and tourism levies.
For example, the assignment on curbing IFFs and creation of fiscal space to enable SADC to fund its regional programmes will analyse illicit cross-border financial flows as a measure to prevent leakages from the region.
It is estimated that Africa lost more than US$1.8 trillion to IFFs between 1970 and 2008 alone, and continues to lose resources valued at up to US$150 billion annually through IFFs or “illicit capital flight”, mainly through tax evasion, and mispricing of goods and services by multinational companies, according to a recent study commissioned by the African Union.
This means that resources that are intended to develop Africa are being used elsewhere to improve the economies of other countries in Europe, Asia and the United States.
The 36th SADC Summit set for 30-31 August is running under the theme “Resource Mobilisation for Investment in Sustainable Energy Infrastructure for an Inclusive SADC Industrialisation for the Prosperity of the Region.”
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Activities undertaken by UNCTAD in support of Africa, May 2015 – April 2016
Sixty-third executive session of the Trade and Development Board, 27-29 September 2016
Agenda items for the meeting of the Board include presentation of the report on UNCTAD activities undertaken in support of Africa; consideration of the Economic Development in Africa Report 2016: Debt Dynamics and Development Finance in Africa; and a discussion on the Trade and Development Report, 2016: Structural Transformation for Inclusive and Sustained Growth.
A report on UNCTAD activities in support of Africa is prepared every year and presented to an executive session of the Trade and Development Board. The report provides an overview of research and analysis being undertaken by UNCTAD with regard to African development, as well as a summary of specific activities, including advisory services and technical cooperation, in each sector that falls under the mandate of UNCTAD.
Major highlights
UNCTAD made several critical contributions in 2015 to major international events that shaped policymaking in Africa and whose outcomes will affect Africa and the UNCTAD work programme in Africa.
The Organization has contributed to the implementation of the post-2015 development agenda. The adoption of the 2030 Agenda for Sustainable Development and of the Sustainable Development Goals commits African countries to deepen their pursuit of structural transformation in order to achieve sustainable development. Africa’s success in meeting the Goals will be critical in ensuring global progress towards their implementation.
In this context, Africa’s efforts to transform its economies will need to be sustained. UNCTAD has made economic transformation a priority in its work programme for developing and African countries. It has played a pivotal role as the leader of the United Nations agency cluster on trade and productive capacity in defining targets associated with Goal 17 on the Global Partnership for Sustainable Development.
UNCTAD participation in the Third International Conference on Financing for Development, held in Addis Ababa in June 2015, was marked by the organization of several side events by UNCTAD, which contributed to research-based insights and policy advice on selected financing dimensions. For example, one side event discussed how to finance the Sustainable Development Goals, with a focus on maximizing the benefits and minimizing the risks of private investment. The UNCTAD World Investment Report 2014 proposed an action plan for investing in the Goals and served as a basis for deliberations at this high-level side event.
UNCTAD actively supported African countries, in particular in preparations for the Tenth Ministerial Conference of the World Trade Organization (WTO), held in Nairobi from 15 to 19 December 2015. UNCTAD supported the African Group in preparing substantive negotiating positions on agriculture, services, non-agricultural market access, special and differential treatment, and in linking these to their broader development goals.
This support contributed to some positive outcomes for African countries at the Conference, such as the decisions to improve preferential rules of origin for the least developed countries and the extension of the waiver concerning preferential treatment to services and service suppliers of those countries. UNCTAD also organized a series of side events focusing on various aspects of trade, finance, investment and development. This included a session on boosting investment in productive capacities, in collaboration with the African Union and the Government of Kenya.
Outcomes and impact of UNCTAD activities in support of Africa
A. Transforming African economies
UNCTAD research and analysis provide pragmatic policy recommendations that support African countries in their efforts to transform their economies in order to accelerate sustainable development and facilitate the region’s integration into the world economy.
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Transforming rural African economies
The Least Developed Countries Report 2015: Transforming Rural Economies was launched in more than 25 cities in November 2015. As indicated in the title, the Report focuses on the transformation of rural economies and shows that women comprise half of the rural workforce in the least developed countries but face serious constraints in realizing their productive potential, slowing rural transformation. The Report details a series of policy measures aimed at implementing a new approach to rural development centred on poverty-oriented structural transformation, commonly known by its acronym, POST.
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Leveraging services and services trade for greater structural transformation and development
The Economic Development in Africa Report 2015: Unlocking the Potential of Africa’s Services Trade for Growth and Development was launched in several African countries in July 2015. The Report advocates better leveraging of the services trade in Africa as an engine of growth, employment creation and development, and provides actionable policy recommendations to that effect. The main messages and policy findings of the Report were disseminated to a group of high-level government officials from French-speaking least developed African countries in Cotonou in December 2015. At an UNCTAD workshop in Senegal, the Senegalese Minister of Trade, Industry and the Informal Economy commended UNCTAD for the excellent research and analysis that went into the Report.
During the reporting period, UNCTAD conducted a series of training workshops in Africa to build the human and institutional capacities of African stakeholders in harnessing the opportunities arising from the services sector and the services trade as an engine of economic transformation.
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Building capacities of African trade officials in services trade negotiations
Services are essential to the effective functioning of national economies. African countries need a productive and efficient services sector that can help boost the competitiveness of other sectors deemed critical for Africa’s economic transformation. In that respect, UNCTAD organized a series of training workshops during the reporting period to build the capacities of African negotiators in services trade negotiations, be it at the bilateral, regional or multilateral levels. For instance, UNCTAD and the African Union Commission held training workshops on trade-in-services negotiations for African Union Continental Free Trade Area negotiators in Nairobi in August 2015 (English-speaking countries) and another in Dakar in December 2015 (French-speaking countries). As a result, over 20 trade negotiators from 19 English-speaking African countries, African regional economic communities and the African Union Commission benefited from this training.
UNCTAD conducts activities across its three pillars of work – research and analysis, technical assistance and consensus-building – to help African countries harness domestic and foreign investment as a means to catalyze structural transformation in their economies.
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Harnessing investment for structural transformation through investment policy reviews
UNCTAD investment policy reviews support African countries in attracting foreign direct investment by conducting diagnostic studies of the legal, regulatory and institutional frameworks for investment that are specific to each country and by identifying areas for improvement. Investment policy reviews are aimed not only at attracting foreign direct investment but also at obtaining increased benefits from them. During the reporting period, UNCTAD published such a review for Madagascar, which was discussed at a national workshop in Antananarivo in September and presented at an intergovernmental peer review in Geneva, Switzerland, in December 2015. In addition, it has started preparing the investment policy review of the Gambia.
To help countries implement investment policy review recommendations and further improve their investment environment, UNCTAD provided technical assistance to beneficiary countries of such reviews. Over the reporting period, UNCTAD, in cooperation with the World Bank, lent assistance to the Government of Kenya to develop its national investment policy document. Further, UNCTAD advised the Governments of the Congo and of the Sudan on setting priorities for the implementation of investment policy review recommendations and provided comments to the Government of Botswana on the drafting of an investment law for the country.
Some five or six years after the completion of an investment policy review, UNCTAD prepares a report that assesses the degree of implementation of its recommendation – the implementation report. During the reporting period, UNCTAD published the implementation report of Morocco and completed the draft implementation report of Benin.
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Harnessing investment for structural transformation through UNCTAD investment guides
UNCTAD online investment guides (iGuides) aim to raise awareness among the international investment community of investment opportunities and conditions in beneficiary countries. Beneficiary Governments develop the iGuides under the guidance of UNCTAD. These online resources include information on typical personnel, rent, utility and factor costs faced by investors, as well as access to key contacts in government, and feedback and tips from investors who are present in the country. iGuides have been developed for Benin, Burundi, the Congo, Djibouti, Kenya, Rwanda and Uganda.
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Leveraging technology for transforming African economies through UNCTAD information and communications technology policy reviews
At the request of the Egyptian Ministry of Communications and Information Technology, UNCTAD started in 2015 the preparation process for an information and communications technology (ICT) policy review to assist Egypt in developing its national e-commerce strategy. UNCTAD is conducting a comprehensive assessment and diagnostic study on the current status of e-commerce in that country to establish short-, medium- and long-term targets, as well as policy recommendations. UNCTAD ICT policy reviews serve to help countries harness the potential of ICTs for transformational growth.
UNCTAD can also assist African countries in finding means of implementation for the economic transformation of their economies, such as by harnessing specific sources of development finance and tapping into knowledge diasporas.
B. Tackling the vulnerabilities of African economies and building their resilience
UNCTAD assists African countries in reducing the vulnerability of their economies due to commodity dependence and in seeking opportunities to increase the value addition of their economic activities from commodities, including agricultural goods.
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Providing research-based policy recommendations
Four of the five top cocoa producers in the world are in West Africa. The UNCTAD paper Cocoa Industry Structure: Integrating Small Farmers into the Global Value Chain (2016) examines some recent patterns in the cocoa industry and their potential impacts on the stakeholders along the value chain, in particular small cocoa farmers in Africa, who are the backbone of cocoa production. The report discusses their integration into world markets, using specific case studies of farmers in Cameroon, Côte d’Ivoire and Ghana. The report highlights some key policy recommendations that may help Governments, the private sector and the international community foster the development of a sustainable cocoa economy by empowering farmers, consonant with the Global Cocoa Agenda adopted at the First World Cocoa Conference in Abidjan in 2012.
The Seventeenth African Oil, Gas and Minerals Trade and Finance Conference and Exhibition, also known as OILGASMINE, was held in the Sudan in November 2015. The event attracted more than 700 participants and significant media attention. The Conference programme featured some 70 speakers and moderators, including African speakers from the Congo, Egypt, Ethiopia, Kenya, Namibia, the Niger, the Sudan and Uganda. The event increased UNCTAD visibility in the Sudan and elsewhere in Africa, and opened several avenues to explore future work in capacity-building on commodities and the role of the extractive industries in fostering sustainable development throughout Africa. The central theme of the Conference was how to create more stable, wage-paying, decent jobs in a way that promotes economic growth, while protecting the environment and fostering social inclusion in Africa.
With a view to improving the development linkages in the mineral sector in Central Africa, UNCTAD initiated in 2015 the implementation of a project on strengthening the capacity of the Economic Community for Central African Member States to enhance development linkages in the extractive sector. In November 2015, representatives of the public and private sectors from Chad, the Congo and Equatorial Guinea attended the regional workshop in N’Djamena, where the project was launched. The main objectives of the workshop, conducted in collaboration with the Economic Commission for Africa, were successfully attained, and one of the objectives centred on enhancing the understanding of participants on issues related to local content, and business and development linkages in the mineral resources sector in Central Africa.
UNCTAD contributes to reducing the exposure of African countries to debt sustainability by providing targeted technical advisory services to African countries on debt management through its Debt Management and Financial Analysis System (DMFAS) programme. The Programme provides support to developing and least developed countries to strengthen their capacity to manage their debt in an effective and sustainable way, in support of poverty reduction, development and good governance.
Technical cooperation activities during the reporting period that resulted in tangible and sustainable results were undertaken by the Programme in the following countries: Angola, the Democratic Republic of the Congo, Gabon, Mauritania, the Sudan and Zambia (to improve debt recording in those countries); in Angola, Chad, Côte d’Ivoire, Ethiopia and Zambia (to support the relevant national debt offices in the production of debt data validation calendars); and in Côte d’Ivoire and Zambia (to assist in the preparation of national debt statistic bulletins). During the reporting period, the Governments of Mauritania and Zimbabwe benefited from DMFAS assistance in the design and drafting of debt office procedure manuals, and the Governments of Côte d’Ivoire and Mauritania, in integrating their debt management system into other government financial applications.
UNCTAD also supports African countries in managing their debt sustainability by influencing global policy on sovereign debt governance and sovereign debt workout mechanisms. Following the adoption in September 2015 of General Assembly resolution 69/319 on basic principles on sovereign debt restructuring processes, as well as the finalization in May 2011 of the UNCTAD Principles on Promoting Responsible Sovereign Lending and Borrowing and the publication in April 2015 of the UNCTAD Road Map and Guide for Sovereign Debt Workouts, UNCTAD carried out a debt policy dialogue mission in Africa from October to December 2015. The objective was to engage senior policymakers and intergovernmental organizations on UNCTAD initiatives in the area of debt policy and to raise awareness of the growing challenges to Africa’s debt sustainability.
UNCTAD is implementing a project on regulatory and institutional framework on sovereign debt governance to build policymaking capacity in five least developed countries, two of which are African countries (Togo and Mauritania). In 2015, two training workshops were organized to enhance the capacities of government officials in these countries to apply the UNCTAD Principles on Promoting Responsible Sovereign Lending and Borrowing with a view to identifying gaps in their regulatory and institutional frameworks on sovereign debt governance, and to discuss suitable policy options.
The Trade and Development Report, 2015: Making the International Financial Architecture Work for Development continues to provide guidance to African countries on how to deal with the vulnerabilities posed by globalization and the international financial system. Chapter 1 of the Report looks at recent developments in commodity markets that are of particular interest to many commodity-dependent countries in Africa. In an overview of regional trends in the external debt situation of developing countries, the Report notes that Africa stands out as a region that did not exhibit a significantly higher debt stock in 2013 than in the 1990s, as a result of debt-reduction programmes. Despite the apparent macroeconomic robustness with respect to external debt, the Report cautions that many developing regions, including Africa, could encounter growing difficulties over the coming years as private capital flows diminish and commodity prices fail to recover.
UNCTAD is implementing a project on building the capacities of selected least developed countries to upgrade and diversify their fish exports in order to improve the export prospects of the least developed countries with a special focus on meeting international food safety and quality standards. Implementation of the project in Comoros, Mozambique and Uganda started with the conduct of policy-oriented research and analysis on export development and diversification in fisheries. The study, consisting of country case studies, also contains up-to-date data and statistical information on domestic, regional and global fishery market opportunities, together with challenges in exploiting such opportunities. As part of the project, UNCTAD developed a draft manual on improving national food safety and sanitary standards to help national stakeholders in beneficiary countries upgrade national standards and improve compliance with the requirements of major fish-importing economies, and other private and industry standards pertaining to fisheries.
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Promoting organic agriculture and green exports
The growing importance of organic agriculture to Africa was discussed at the Third African Organic Conference, which gathered more than 300 participants from all over Africa in Lagos, Nigeria, in October 2015 around the theme “Achieving social and economic development through ecological and organic agricultural alternatives”. UNCTAD participated in the Conference, along with other international organizations, farmers, academics, policymakers, entrepreneurs and representatives of African organic movements. They shared experiences, lessons learned and information on development prospects. UNCTAD also discussed the development linkages between organic agriculture and the tourism sectors in the United Republic of Tanzania, and the potential of regional agro-food value chains to boost intra-African trade.
In response to a request from the Government of Ethiopia for support in boosting its exports in green sectors, UNCTAD collaborated with the Government in preparing a national strategy on green exports. In this regard, the First National Stakeholder Workshop on Ethiopia’s National Green Export Review took place in Addis Ababa on 22 December 2015. Jointly organized by UNCTAD and the Ethiopian Ministry of Trade, this event brought together about 40 representatives from national ministries, trade promotion agencies, financial institutions, sectoral associations, universities and research centres. It launched the preparation of the national green export review and enabled national stakeholders to discuss and select a set of priority green sectors.
C. Improving the competitiveness of African economies
UNCTAD lends support to African countries in their efforts to boost their competitiveness through the creation of new regulatory and legal frameworks, revisions to existing frameworks and their improved enforcement, the conduct of awareness-raising seminars and the development of toolkits adapted to client needs. By providing such support, UNCTAD helps them enhance the efficiency of their State apparatus and achieve a better distribution of functions between the State and markets.
One area in which UNCTAD contributes towards a more efficient functioning of markets and States in Africa is through its activities on competition law and policymaking in the region.
UNCTAD has been supporting the Government of Zimbabwe in improving and strengthening its competition law regime through the trade and private sector development project funded by the European Union. UNCTAD held two awareness-raising seminars on the role of competition law and policy in Zimbabwe in collaboration with the country’s Competition and Tariff Commission in Harare and Bulawayo on 5 June and 4 September 2015, respectively.
UNCTAD also developed a draft competition policy framework for Zimbabwe and a competition assessment toolkit. The toolkit assesses the state of competition in selected sectors and identifies existing government policies or laws and regulations that limit competition. The toolkit has been applied to the ICT sector in Zimbabwe. To enable enhanced decision-making, UNCTAD held training sessions on competition law for the Faculty of Law of the University of Zimbabwe and on competition law enforcement for judges.
UNCTAD provides tangible guidance to African countries on how to harness trade as a tool for economic transformation and improve upon their trade policy regimes in order to boost their competitiveness on regional and world markets.
UNCTAD, the African Development Bank, the International Trade Centre and the World Bank have formed a partnership called the Transparency in Trade initiative. The partnership aims to facilitate the collection of tariffs and non-tariff measures and other trade data, as well as the harmonization of non-tariff measures, and to provide free and open access to the data collected.
UNCTAD provides African countries with direct technical assistance on non-tariff measures. It works on such measures to assess and improve export opportunities for developing countries and to promote their integration into regional and global value chains. UNCTAD collects and analyses non-tariff measures data from the European Union, the United States of America and other trading partners of Africa. Such data facilitate the assessment by African countries of their export opportunities.
The Tripartite Regional Economic Communities have been trained by UNCTAD on non-tariff measures and have adopted the non-tariff measures classification proposed by the UNCTAD Multi-Agency Support Team. Training for the Tripartite region was held in November 2015; non-tariff measures data were subsequently collected for 12 Tripartite countries to enhance transparency on non-tariff measures and allow policymakers to address trade obstacles.
In 2015, under the UNCTAD Automated System for Customs Data (ASYCUDA) programme, numerous capacity-building training activities on the data system were organized for national customs administrations, ensuring the long-term sustainability of the system and enabling 29 African countries to increase customs revenues collection and to drastically reduce clearing times and costs.
The UNCTAD Empretec Programme helps small and medium-sized enterprises (SMEs) in Africa build up their business competitiveness through an array of targeted interventions, including the promotion of business linkages between SMEs and large firms.
During the reporting period, UNCTAD continued to provide assistance to the 14 established African Empretec centres through advisory services, policy workshops and seminars based on the newly developed Entrepreneurship Policy Framework, training to entrepreneurs and SMEs, and support to regional networks and initiatives.
UNCTAD continued to identify business linkage opportunities in four target sectors: horticulture and sustainable tourism in the United Republic of Tanzania, construction in Zambia and mining in Mozambique. Successful partnerships with large firms were also forged. The linkage-building activities, conducted in collaboration with other United Nations agencies under a joint framework, allowed UNCTAD to assist 152 farmers in the United Republic of Tanzania and 119 entrepreneurs in Zambia.
UNCTAD helps improve the competitiveness of African economies by providing them with tools to engage in governance and economic efficiency reforms. During the reporting period, a number of African member States benefited from UNCTAD support in the areas of accounting and reporting reforms through the use of the Accounting Development Tool, which helps countries assess their accounting infrastructure against international requirements for high-quality corporate reporting.
Another UNCTAD tool – eRegulations – which is part of the Business Facilitation Programme, helps countries simplify and automate their business registration and other administrative procedures and rules on investment and entrepreneurship. The eRegulations system, operational in 17 African countries, contributes to increased transparency and greater institutional capacity, thereby facilitating business and making African countries more attractive to foreign investors.
In Kenya, the eRegulations and iGuide platforms were integrated in an investment portal, which was launched at the Tenth WTO Ministerial Conference. UNCTAD will now start expanding investment portals across the East African Region.
UNCTAD helps African countries create a favourable environment to benefit from opportunities created by ICTs and to use them to promote trade competitiveness through e-commerce.
UNCTAD has engaged for the period 2013-2015 with the Economic Community of West African States in a series of capacity-building activities in support of the translation of regional legal frameworks for e-commerce at the domestic level. The Review of E-commerce Legislation Harmonization in the Economic Community of West African States, published in December 2015, provides an assessment of the state of e-commerce legislation in the region, identifies challenges facing Member States and makes specific recommendations towards furthering harmonization within the region.
D. Making multilateralism work for African countries
UNCTAD assists African trade officials directly in elaborating and implementing trade policy frameworks that can help their economies integrate into and benefit from the world multilateral trading and investment systems.
UNCTAD has provided assistance on preparing trade policy frameworks for Algeria, Angola, Botswana, Namibia and Tunisia. These reviews focus on identifying key sectors for diversification with the potential to bring higher economic value, drawing up suitable trade policies to back up development priorities, including the Sustainable Development Goals, and establishing a trade policy framework to ensure effective and coherent implementation of development strategies. For example, UNCTAD provided support to the Government of Angola to finalize its trade policy framework, which was intended to facilitate the country’s diversification of exports from the single commodity of oil into other products. The trade policy framework is currently in the process of publication.
Through the Trust Fund on WTO Accession, a comprehensive programme designed to guide countries in the accession and post-accession phases, UNCTAD has provided direct assistance to some African countries, such as Liberia and Seychelles, to join WTO and others, to become more effective members in 2015.
A few African countries remain outside WTO and are currently in various stages of accession: Algeria, Cabo Verde, Ethiopia, Sao Tome and Principe, and the Sudan. All five, but also Seychelles and Liberia, which completed their accession to WTO in 2015, are presently beneficiaries of the Fund. Advisory support is aimed at assisting the acceding countries in adjusting their trade policy regimes in alignment with WTO agreements, while taking into account their development objectives and strategies, increasing the awareness of the acceding country’s negotiating team and stakeholders of the multifaceted issues in the accession process, enhancing their knowledge of WTO rules and disciplines, and building their trade policy and negotiating capacities to participate effectively in the accession negotiations. UNCTAD provided substantial advisory services to the Government of Liberia and post-accession assistance to Seychelles.
UNCTAD plays a key role in supporting African countries as they move forward in negotiations on the Continental Free Trade Area and the Tripartite Free Trade Area. For example, in support of the formation of the Continental Free Trade Area to boost intra-African trade, UNCTAD implemented a range of activities during the reporting period. It contributed to experts’ discussions on the scope, objectives, principles and institutional supportive arrangements of the Continental Free Trade Area held at a dedicated session of the African Union in Addis Ababa in May 2015. UNCTAD, the Government of Kenya, the African Union Commission and the Commonwealth Secretariat held the event “Continental Free Trade Area: Making it Work for Africa”, in Nairobi on 16 December 2015. Some 90 participants, including several African Government ministers and representatives from the private sector, academia, civil society organizations and international governmental organizations called for the expeditious conclusion of African Continental Free Trade Area negotiations and follow-up implementation, as they were necessary for the beneficial integration of Africa into the global economy.
UNCTAD prepared several technical papers on boosting intra-African trade through regional integration, non-agricultural market access, services and agriculture, and competition policy. For example, a policy report titled “Building the African Continental Free Trade Area: Some Suggestions on the Way Forward” was accompanied by policy brief No. 44, “The Continental Free Trade Area: Making It Work for Africa” in December 2015. The paper is being circulated among African countries to provide them with a mapping of important trade policy issues in the construction of the Continental Free Trade Area.
UNCTAD is an active partner agency of the Enhanced Integrated Framework, a multi-donor programme that encourages the least developed countries to be more active players in the global trading system by helping them tackle supply-side constraints to trade. Several least developed African countries have chosen UNCTAD to be their lead agency in updating their diagnostic trade integration studies and implementing the action matrices. In this way, UNCTAD directly helps these countries to better exploit trade opportunities arising from the multilateral trade system.
In 2015, UNCTAD initiated and completed updates of diagnostic trade integration studies for Djibouti, Ethiopia, Mali and the Niger. The study updates identified constraints hampering the integration of the countries into the multilateral trading system and provided recommendations for technical assistance and policy action to help countries overcome such constraints. The diagnostic trade integration study update of the Niger was finalized, and a validation workshop was successfully held in Niamey in December 2015.
UNCTAD is implementing technical assistance activities, in partnership with other institutions, aimed at building the capacities of trade and planning ministries to implement trade strategies aimed at reducing poverty.
A national training workshop on trade mainstreaming and effective policy formulation for poverty reduction in Ethiopia was held in Addis Ababa, in December 2015. The training workshop supported the trade policymaking process in Ethiopia, and was designed to strengthen country-level knowledge of the impact of sectoral and trade policies and related issues, such as structural transformation and national development. Some 35 government officials and stakeholders from the private sector and civil society participated. The national study developed under the project was a key input to the diagnostic trade integration study update of Ethiopia, which was coordinated by UNCTAD, and the new trade strategy of the country, which is being drafted under the Growth and Transformation Plan II.
UNCTAD is also actively contributing to research on the links between trade and poverty reduction in Africa, with findings published in the Trade and Poverty Policy series. Some recent examples can be found in Integrating Trade into National Development Strategies and Plans: The Experience of African LDCs 4 and Mainstreaming Trade in Africa: Lessons from Asia and the Way Forward.
E. Empowering Africans and investing in their future
UNCTAD contributes towards the empowerment of African women by highlighting the gender ramifications of African policies and illustrating the social, structural, and cultural constraints that create or perpetuate gender inequality in sectors that have been or can be dynamized by trade.
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Developing and delivering training packages and workshops on trade and gender
UNCTAD developed a training package on trade and gender aimed at providing an up-to-date learning resource on trade and gender issues to all stakeholders involved in research, policy formulation and advocacy in this area. The package includes a two-volume manual and an online course. The objective of the online course is to equip academics, government officials and civil society in developing countries and countries with economies in transition with the necessary tools to analyse the two-way relationship between trade and gender, and to produce gender-aware policy recommendations. The first iteration of the online course was held in 2015. The second iteration of the course ended in February 2016. Participants from 19 African countries were selected for the course.
Further, 25 researchers from 16 countries in sub-Saharan Africa took part in a regional workshop on trade and gender analysis held by UNCTAD at North-West University, South Africa, in June 2015. Building on the online course on trade and gender, the workshop focused on the use of quantitative methods in trade and gender research. The objective of the workshop was to provide participants with the knowledge needed to undertake gender assessments of trade policy.
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Conducting research and technical assistance on trade and gender
UNCTAD will soon start activities on a four-year project, under the Development Account, on informal cross-border trade for the empowerment of women, and economic development and regional integration in Malawi, the United Republic of Tanzania and Zambia. Analytical work of the project will deal with issues such as how to address the complexity and opacity of trade barriers to informal cross-border trade in a context of multiple overlapping trade arrangements and how to accommodate the specificities of informal cross-border trade, especially involving women, when designing and implementing suitable supply-side services that support cross-border trade flows. A better understanding of these issues will enable decision-makers to take informed and targeted policy action.
Three online courses on non-tariff measures, trade and gender, and trade and poverty were offered between May 2015 and February 2016 by the Institute and were completed by 20, 38 and 30 participants from Africa, respectively. One regional professional development workshop on trade and gender analysis and six national workshops were held by UNCTAD on the following topics: policies to enhance domestic resources mobilization (the Gambia), economic analysis of non-tariff measures (United Republic of Tanzania), application of econometric analysis to commodity-related issues (Chad and Togo), structural transformation and industrial policy (United Republic of Tanzania) and use of remittances and diasporas for development (Senegal). A total of 227 African academics benefited from these workshops.
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Implement Regional Instruments for integration to deepen, COMESA member States told
The seemingly slow implementation of regional commitments and lack of full-scale participation of all member States in COMESA programmes have been cited as the major reasons why the region is still facing challenges in attaining full integration.
Permanent Secretary (PS) in Zambia’s Ministry of Commerce, Trade and Industry Ms Kayula Siame says COMESA has put in place a number of institutions, instruments and policies aimed at improving integration and boosting intra-COMESA trade, but these are not implemented fully by the various member States.
This she said, has contributed to the region to delay in attaining its key objective of promoting joint development in all fields of economic activity and programmes to raise the standard of living of its people and to foster closer relations among member States.
She was speaking at the opening of the 32nd meeting of the COMESA Trade and Customs Committee in Lusaka on Monday 29 August 2016.
“Integration is a collective effort, and success can only be attained when the majority are fully engaged in the various activities currently in place in COMESA. The low level of transposition of regional instruments has negatively affected the implementation of the various programmes,” Ms Kayula added.
She revealed that a recent survey undertaken by the Secretariat has shown low levels of implementation of regional commitments at national level and suggested sustained sensitization and awareness campaigns of the COMESA protocols and more importantly the intended benefit of regional integration.
“Awareness creation is crucial for COMESA, ultimately trade investment is spearheaded by the private sector and this is the audience we need to sensitize in order for them to have the utmost confidence in the opportunities within the region,”
In pursuit of the overarching objective of ultimately improving the livelihoods of ordinary citizens, the PS said there is a need to revitalize the domestic industries and ensure that they tap into the existing regional market and contribute to national and regional development objectives. The potential for increased trade and growth exists, noting that intra COMESA trade potential is estimated at USD83 billion.
Speaking earlier, Assistant Secretary General for Programmes Ambassador Kipyego Cheluget said the meeting would receive updates on trade and macroeconomic developments in the region, the functioning of the Free Trade Area, progress towards a Customs Union, Regional Payment and Settlement System (REPSS), the Regional Customs Transit Guarantee and the Capacity Building programme among others.
“It is important for us to ensure that as a region we implement at national level what has been agreed at the regional level. This will help us achieve the collective good of regional integration,” Ambassador Cheluget added.
Recommendations from this three day meeting will be submitted to the Intergovernmental Committee meeting set for October this year in Madagascar.
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Kenya pursuing her own deal after region’s EPA deadlock
Kenya has sent a delegation to the European Union for talks, to shield the country from heavy taxes on its exports, as closing the Economic Partnership Agreement by October appears unlikely.
This follows failure by its neighbours – Tanzania, Burundi, Uganda and Rwanda to ink the EPA deal on time, to pave way for its ratification by the European Commission on October 1.
Industrialisation Cabinet secretary Adan Mohamed and Principal secretary Chris Kiptoo are leading the trade delegation including the private sector, on four days of talks in Brussels, Belgium, the Star learnt on Monday. The delegation aims to push for a bilateral trade deal with the EU.
It is not clear whether Kenya wants to go it alone or seek an extension of the deadline, but an official familiar with the talks said Kenya wants to secure preferential market access even after the October deadline.
PS Kiptoo, however, indicated that Kenya is still willing to sign the pact with EAC member states.
“We want to go together (EAC member states). So we are trying to hurry it up,” Kitoo told the Star on phone from Brussels. “It will be inappropriate to give you details as at now. We will give details after the meeting.”
The signing of the EPA by the East Africa Community was set for July 18, during the United Nations Conference on Trade and Development forum in Nairobi.
Tanzania, however, declined to sign. It was followed by Uganda where president Yoweri Museveni said the agreement needed consensus between presidents.
The deal was further dealt a blow after it emerged the EU could not sign any deal with Burundi due to the recent political chaos caused by controversial re-election of President Pierre Nkurunziza and his decision to run for a third term.
This is the second time Tanzania has jeopardised the deal, after 2014, which would give the EAC duty free and quota-free market access to the EU.
Kenya is the only country in the region that stands to lose, since other EAC countries could still access the market on favourable terms under Everything But Arms initiative. They are categorised as Least Developed Countries.
After October 1, Kenya will be placed under the General System Preference trade regime, where goods are charged a duty of between five per cent and 22 per cent on her exports to the EU.
“We are talking of Sh126 billion worth of revenue (exports to EU in 2015) and one million direct employment. This is something the government is not willing to lose,” an official familiar with the talks said.
In 2014, the country’s private sector suffered losses estimated to be Sh600 million per month before successfully lobbying to be reinstated to duty-free status.
About 87 per cent of Kenya’s exports – in agriculture and manufacturing industries – to the EU valued at Sh98 billion were affected.
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SADC workshop shares best practices on cybersecurity and PKI
A SADC Workshop on Cybersecurity and PKI (public key infrastructure), aiming at sharing best practices and strengthening SADC regional cooperation mechanisms pertaining to cybercrime offenses and developing a Framework for PKIs for SADC Member States, opened yesterday at the Intercontinental Hotel, Balaclava.
Organised by the Ministry of Technology, Communication and Innovation in collaboration with the Southern African Development Community, the four-day event is bringing together more than 50 participants coming from countries in the African region namely: Lesotho, Malawi, Mozambique, Mauritius, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. The resource persons are cybersecurity experts from the International Telecommunications Union.
Issues being discussed include: Current status of Cybersecurity frameworks – Legal and Regulatory, establishment of Computer Incidence Response Teams and PKI; Digital signatures; SADC Cybersecurity regional cooperation and a Roadmap for implementing PKI in SADC; and PKI ecosystem. Also, participants are exploring several case studies on: Cybersecurity incidences in SADC; Regional cooperation on cybersecurity; PKI best practices, regulatory environment and challenges.
In his opening address, the Minister of Technology, Communication and Innovation, Mr Etienne Sinatambou, observed that with the expansion of emerging technologies such as cloud computing, the internet of things and big data, the digital landscape offers unlimited opportunities. However, he said, the internet can also become an efficient medium for cybercriminals to plot and conspire in their cross-border criminal activities, with increasing threats from international organised crimes involving not only cyber thefts, drugs, pseudo trafficking, financial fraud and money laundering.
Mr Sinatambou also mentioned the risks of aggressive cyber actions and other sinister motivations such as cyber espionage, malicious software and cyber-attacks which is what makes bilateral and multilateral cooperation very important.
To facilitate such cooperation, the Minister assured that Mauritius is willing to play its part to promote the exchange of ideas and skills amongst nations and organisations. This is the reason why Mauritius has acceded to the Council of Europe Budapest Convention on cybercrime and became a founder member of the cybersecurity alliance for mutual partnership and also wants to collaborate closely with all SADC Member States, he stressed.
‘We must continue to build our collective capabilities to fight cyber threats, share information and work together to safeguard our cyberspace, the privacy of our people and the ideas and innovations of our countries’, added the Minister.
For his part, Mr Andreas Dlamini, the Representative of the Kingdom of Swaziland (the country presently chairing the SADC), stated that SADC Member States need to gear together to defend their networks and systems at such times when there are illegal intrusions in the SADC cyberspace and which are posing serious threats to financial systems and key national infrastructures. One sure way of keeping cybercriminals out of business is by harmonising legal frameworks and creating appropriate institutional regimes, sharing information and carrying out effective public education, he said.
All delegates bear a responsibility to ensure that the SADC region is cybercrime free and it is our duty to never drop guard and keep the momentum of building our cybersecurity growing so that we see less and less of cybercriminal activities succeeding, stressed Mr Dlamini.
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The 11 bottlenecks facing Africa: Discussion paper by Ugandan President Yoweri Museveni
The 25th Summit of the Heads of State and Government participating in the African Peer Review Mechanism endorsed the following discussion paper presented by Yoweri Museveni, President of the Republic of Uganda
During the 23rd APR Forum in June 2015 in South Africa, His Excellency Yoweri Museveni, President of the Republic of Uganda presented a statement on Eleven (11) Bottlenecks hindering effective socio-economic transformation of the African continent. His Excellency called on countries to review themselves on how well they are progressing on the 4 thematic pillars namely: Democracy and political governance; Economic governance and management; Corporate governance and Socio-economic development, and further encouraged other African countries to participate in the APR process in order to generate creative solutions to African Governance challenges.
Following the statement, the Chair of the Forum requested His Excellency Yoweri Museveni to make a presentation on the bottlenecks he highlighted as pertinent areas for review at the next Forum.
“internally, we always mark ourselves on how well we are doing in terms of socioeconomic transformation. We need to ask what stimuli is needed for changing a predominantly traditional and peasant economy into a modern and prosperous middle income country”
In this regard, His Excellency would like to encourage the Forum to deliberate on the following Eleven Bottlenecks and consider them as part of the APRM tool.
1) Ideological disorientation
These include sectarianism of tribe and religion as well as gender chauvinism. In Africa, this sectarianism has resulted in conflicts, and wars which have hindered development in the continent since independence over 50 years ago. Africa should treat with contempt and not tolerate those who promote sectarianism and gender chauvinism; that is why Uganda’s record on women emancipation is excellent and there is peace in the whole Country.
2) Interference with the private sector
The mistake of interfering with the private sector like when former dictator Idi Amin uprooted the Indian Community from Uganda in 1972; yet these were the entrepreneurial class. Some people wonder why the Asian countries such as South Korea, Singapore, etc., which had no resources, developed faster than the African countries such as Uganda which had everything. Persecuting the private sector was one of the reasons. Private sector is the engine for growth and must be nurtured, regulated and supported to ensure economic development in a country. However, there are strategic areas where government state enterprises may participate. APRM member countries should, therefore, be reviewed on how they are promoting private sector as the engine of growth.
3) Under-developed Infrastructure (electricity, roads, the railway, the telephone, the ICT back bone etc.)
Effective modes of transport, including quality roads, railroads, ports, and air transport, enable entrepreneurs to get their goods and services to market in a secure and timely manner and facilitate the movement of workers to the most suitable jobs. Economies also depend on electricity supplies that are free of interruptions and shortages so that businesses and factories can work unimpeded. Finally, a solid and extensive communications network allows for a rapid and free flow of information, which increases overall economic efficiency by helping to ensure that businesses can communicate and decisions are made by economic actors taking into account all Public-Private available relevant information.
High transport costs affects doing business. Africa needs modern infrastructure to lower costs of doing business and enable the private sector to grow. For example, in EAC we are adding a modern Standard Gauge Railway to the current attempts in increasing stock of infrastructure. The tool should assess how far we are progressing in achieving these over the review period.
With respect to electricity there is a unit of measurement of power consumption called kilowatts per capita. In the United States, the Kilowatts per capita of electricity is 14,000, while in Africa some countries are at 17 kilowatts per capita. It is evident that a country cannot develop without electricity. In 1986, Uganda had 33 kilowatts per capita, later on it moved to 70, and now we are at 200 Kilowatts per capita. We have stepped this capacity up through funding from government and private, but it is very clear we still have alot to do in this respect to compete in the world.
Information and communication technologies (ICTs) have great promise to reduce poverty, increase productivity, boost economic growth, and improve accountability and governance. By providing access to information, equalizing opportunities in rural areas, and contributing to pro-poor market developments such as microfinance and mobile money, ICTs offer new tools to directly address poverty. Local ICT service industries create jobs, especially for youth and women – and promote trade and competitiveness through exports. The ICT sector also fosters innovation across the economy and greatly improves productivity. In Uganda for instance, the ICT Broad Band, we laid the backbone cable using a loan from China to enable us address this infrastructure deficit.
4) Weak states, especially the Army, the Police, etc.
Threats to international peace and security often come from the world’s weakest states. Such countries can fall prey to and spawn a host of transnational security threats, including terrorism, weapons proliferation, organized crime, infectious disease, environmental degradation, and civil conflicts that spill over borders.
On account of defeating the ideological disorientation, it is important to be able to create a strong State, starting with a revolutionary Army. For our case, the army was instrumental in not only liberating the country but also ensuring peace and security that enabled quick socio-economic recovery. Further, it enabled us to assist in controlling insecurity in the neighboring countries like genocide in Rwanda and conflicts in the Democratic Republic of Congo, Somalia, and South Sudan.
Therefore, Army building is very important especially for countries living in turbulent areas. This is important for governance and rebuilding of economies emerging from conflicts like ours.
5) Fragmented Markets, Market Access and Expansion
The problem of a fragmented African market on account of colonialism – when you produce a product but nobody buys or you do not get enough buyers, you cannot prosper and expand your business. We need a market to absorb what the private sector and traditional sector are producing. We must have a market to absorb and stimulate production in the economy.
The process that has already been launched of rationalizing the 53 states into more viable regional units-SADDC, COMESA, ECOWAS, EAC, etc, should be accelerated, deepened and be made into the major units of negotiating with the outside world. Belgium is a small country of only 10 million people with a land area (31,000 sq.km.) equivalent to one region of Uganda. They (Belgium) dare not negotiate on their own with outside partners. They negotiate behind the umbrella of the EU, their greater wealth compared to Africa’s notwithstanding.
In Uganda, we now have a population of 34 million, but this is not enough market. We are working with our neighbors to integrate within the East African Community (EAC) and have a bigger market of about 142 million people. In addition, we are also working with the countries in Common Market for Eastern and Southern Africa (COMESA) to even reach a much bigger market of 430 million and end the fragmentation of the African market. We are also advocating for the global market access and countries like United States, European Union, India, and China have partnered with us on this. However, we must have finished goods to sell in these markets.
6) Lack of industrialization and low Value Addition
Lack of industrialization – the modern slavery of exporting raw-materials where we get only 10% of the products we sell and export jobs to other continents.
On the issue of ending slavery of exporting raw materials, we need to focus on value addition and industrialization by implementing plans to add value to milk, meat, coffee, cotton, tea, fish, vegetable oils, minerals, steel products, sugar, and beverages (such as beers, sodas and fruits) etc. Value addition is another important aspect of transformation, ensuring that we produce for the domestic and export market, together with providing employment for our people.
However, we are still struggling with the value addition for coffee. The coffee bean from Uganda has been exported to United Kingdom at US $1 per kilogram for the last 100 years. The price of the coffee bean has recently moved to US $3 per kilogram in the international market. Yet, when this coffee is processed in the United Kingdom it is resold to us at US $15 per kilogram. This means for the last 100 years we have been donating 14 dollars per kilogram to United Kingdom. In addition, we are creating jobs in their country for their people in the coffee processing chain. We are working hard on reversing this trend to ensure that our people get access to employment in this coffee value chain.
This goes in tandem with an Export-led growth strategy which is another stimulus for socio-economic transformation. 30 years ago, South Korea was exporting raw materials such as human hair for wigs to the United States of America. Today, South Korea having pursued the export-led growth strategy of manufactured goods through advanced technology is now the 10th richest nation in the world.
7) Under-development of Human Resources (lack of education and poor health)
One of the major handicaps to Africa’s social and economic transformation is associated with the inadequacy of its human capital. There is therefore an urgent need for concerted and strategic investment in the continent’s human resource to turn it into the much needed human capital to drive the planned growth and transformation. The human resource must be healthy, educated and properly skilled. An educated, skilled and healthy workforce is important for the socio-economic development of a country.
We are working on education and health for all and this means we need schools and health centers. The massive free education programme for Primary and Secondary Schools, the expanding of tertiary and University education, massive immunization programmes have produced more educated and healthier generations; the literacy rate is now 75%; the struggle now is to skill these educated people and create jobs for them.
8) The under development of Agriculture
Agriculture has been and remains central to Africa’s economic growth and poverty reduction. It is a major source of raw materials for the manufacturing sector, a market for non-agricultural output, a source of surplus for investment and a source of employment. Strategic investments for modernization of this sector will transform it into a springboard for socio-economic transformation for Africa.
So many of our people are continuing to engage in just subsistence farming – growing only food crops or rearing livestock for subsistence.
The tool should check what progress is being made in universal commercialization of agriculture (small, medium and large scale).
9) The under-development of services sector (banking, insurance, tourism, etc.)
Producing services tends to require relatively less natural capital and more human capital than producing agricultural or industrial goods. As a result, demand has grown for more educated workers, prompting countries to invest more in education – an overall benefit to their people. Another benefit of the growing service sector is that by using fewer natural resources than agriculture or industry, it puts less pressure on the local, regional, and global environment.
10) The attack on Democracy and Governance
Democracy is very cardinal in socio-economic transformation. Absence of democracy in the whole colonial period and during much of the whole post-independence periods has meant that people’s real aspirations and grievances could not be accurately captured. There is growing and almost universal democratization throughout Africa, except for countries where there is still insecurity.
In the case of Uganda, we fought and restored Democracy, hence we respect and promote democracy in all its forms including regular presidential, parliamentary and local government elections, the last being in February, 2016.
With respect to governance, there is need to put in perspective our own specific needs. This means that good governance should reflect having such development imperatives like electricity for all, paved roads and railway networks in contrast to the narrow perspective that limits it to having elections.
11) Non-responsive Civil Service
The Civil Service is administrative service of a government to ensure plans, policies and programmes for transformation are implemented effectively and efficiently. The Civil Service is bedeviled with corruption of actors such as public servants or political leaders failing to supervise and discipline the civil servants.
Proposed solutions and way forward
As part of deepening the review, the way forward to our progress we need to make the questionnaire more focused on those areas that promote prosperity, peace and security for the member countries. The following APRM processes and documents should, therefore, be developed and/or revised in light of the above pertinent issues:
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Review the APRM Methodology and Questionnaire to make it more focused and relevant to the current/ emerging challenges facing the continent.
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APRM process to be reviewed and streamlined to avoid unwarranted delays in the production of the review reports.
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APRM recommendations should be more focused on a few critical challenges and high impact solutions in a country context.
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The APRM Panel should have deeper engagements with leadership and stakeholders to better understand the problems and potential solutions for the country.
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The APR Forum should identify regional champions with a reporting mandate at the Summits.
In conclusion, His Excellency would like to highlight to the Forum that the policies governments pursue are not the end in themselves. Policies are a means to an end. The end is the total social-economic transformation of Africa as envisioned in Agenda 2063. Therefore, when countries are being Peer reviewed, it is important to see how far we have gone in eliminating these bottlenecks.
His Excellency further pledges the support of the government of Uganda and commitment to this home grown African Mechanism. He informed the Forum that his government is also keen to learn the best practices from member countries in pursuit of common governance programmes to enhance democratic, economic, corporate, and socio economic governance.
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tralac’s Daily News Selection
The selection: Tuesday, 30 August 2016
Dr Ngozi Okonjo-Iweala: ‘African central banks: rethink role or stay the course?’ (The Bank of Uganda)
But we now live in an age of unconventional monetary policy. This raises a fundamental question for African central banks. Do we need a change in paradigm, or should African central banks stay the course established over the last decade, when have been focusing on price stability? Recall that, in earlier decades, they had a much broader remit that included being a source of fiscal deficit and development finance. This is the question I will be addressing in this Memorial Lecture honoring the memory of the brilliant Joseph Mubiru, whose life was tragically cut short, but whose legacy of excellence endures. [RBI’s annual report: Raghuram Rajan says India’s growth below potential]
TICAD V: Progress Report 2013-2015 (pdf, MOFA)
As of 2015, the implementation status of the TICAD V Yokohama Action Plan (2013-2017) is good. This report summarizes the progress from January 2013 to the end of December 2015 (the data of 2015 includes provisional figures and some crucial progress until March 2016). The details provided by respective implementing bodies will be uploaded on the MOFA website database. This progress report was co-written by TICAD co-organizers, and for the first time includes efforts made by Africa as well as Japan and TICAD partners.
Japan and Kenya sign Sh27.3bn deal to build Dongo Kundu hub (Daily Nation)
Kenya has secured Sh27.3bn from Japan to construct an industrial and commercial hub in Dongo Kundu, Mombasa. The first phase of the Special Economic Zone, which is expected to alter the coastal town in terms of infrastructure and business, is scheduled to be ready by 2019. An agreement signed by the governments of Kenya and Japan on the sidelines of the Tokyo International Convention on Africa Development shows that of the Sh27.3bn ($269.9 million), Sh21.36bn is a long term soft loan while Sh5.969bn is a grant.
Zimbabwe: Imports drop as trade deficit narrows (The Herald)
The country’s total import bill dropped 20,34% in the seven months to July due to a number of factors which include troubles in the external payment systems, import restrictions placed on selected products by Government, troubles in the external payment systems and weak industry demand for raw materials. Weakness in the South African rand, whose country is the biggest trading partner, has also contributed with the rand trading around 12,45 on the dollar last year against last month’s 13,9. Data from Zimstat shows that imports fell to $2,89bn from $3,62bn same period last year. Month on month, July imports fell 8,09% to $394,83m from June’s bill of $429,58m as foreign payments continue to face delays. The greatest effect has been payments to countries out of Africa where supplier terms are stricter.
How Rwanda can reduce the growing trade deficit (New Times)
Rwanda’s trade deficit has been widening as the import bill continues to outpace export receipts. This has in turn continued to exert pressure on the local currency with the dollar gaining ground on the franc. In fact, the local unit shed about 4.9% of its value against the greenback in the first half of the year. The central bank estimates indicate that the country’s formal imports grew by 3.3% in value to $1,171.3 million, up from $1,134.1 million in the first half of the year. However, Rwanda’s exports revenue declined by 2.4% to $268.6 million compared to $275.1 million recorded over the same period last year. Export earnings had dropped by almost 6.3%% in the same period in 2015, driven by 36.6% decline in mining sector export revenue, as well as tea and coffee, which shed 5.7% and 9.2%, respectively. According to the National Bank of Rwanda monetary policy and financial stability statement (pdf) released last week, the growing demand for imports has led to a 5.1% trade deficit to $902.69 million in the first six months of the year, up from $858.98 million in 2015.
EAC tea exports rise (Daily Monitor)
All East African Community member states have had a good tea harvest that has resulted into high trade volumes. This is contained in the latest report from Tea Brokers East Africa Limited which shows that at the June Mombasa auction, nine million kilogramme bags were offered, up from the 7.4 million bags recorded in the same period last year. “Out of this production, the region exported a total of 8.3 million kilogrammes up from 6.2 million kilogrammes exported the same time last year thus indicating a 24.8%,” the report said. Out of the cumulative tea auctioned, Kenya the market leader, sold 6.5 million bags up from 4.8 million bags traded last year.
Rwanda: Textile firm seeks tax exemptions on raw materials (New Times)
Heavy custom duties are hampering the Made-in-Rwanda campaign as the Government moves to phase out used clothes, textiles manufacturers have said. According to industrialists, the campaign, launched in 2014, might be slowed down if more incentives are not introduced to promote locally manufactured clothes. They single out the 25% levy charged on imported raw materials on top of the 18% Value Added Tax. This, according to the textiles players, is one of the biggest challenge coupled with lengthy checks and bureaucracies, and high transport and transaction costs of both imported and exported materials.
Dangote shakes Kenya’s cement market with Ethiopia imports (Business Daily)
Nigeria’s Dangote Cement has started its shake-up of the Kenyan market with importation of the commodity from its plant in neighbouring Ethiopia as it prepares to establish a local manufacturing plant. Dangote’s targeting of the Kenyan consumer with low-cost cement from Ethiopia is expected to further drive retail prices downward in a market where they have remained static for nearly 10 years.
Ghana and Kenya agree to promote intra-trade after Uhuru, Mahama meet (The Star)
Presidents Kenyatta and Mahama exchanged views on the need to establish Double Taxation Agreements between the two nations, protect investments in each other’s country and how Nairobi and Accra could serve as effective sub-regional aviation hubs in East and West Africa respectively. The two leaders sought the implementation of various agreements signed between the two nations two years ago, which include development of partnerships in Air Services and Trade, Tourism, Agriculture, Energy, Oil and Gas, Information and Communications Technologies, (ICTs), and Education.
TAZARA to triple profit margins (IPPMedia)
The Tanzania Zambia Railway Authority targets to triple its profits to $44.1m in the last half of this year due to a petroleum products contracts from the DRC and Malawi. In the same period, the annual freight traffic for the authority reached 130,000 tonnes in 2015/16 from 87,000 tonnes in 2014/15, representing an increase of 49 per cent. On the outlook, for the 2016/17 financial year, the company plans to improve its cargo traffic by 200% and reach 381,000 tonnes.
Mohamed A. El-Erian: 'An opportunity for Egypt and the IMF' (Project Syndicate)
The Egyptian authorities and International Monetary Fund staff have struck a deal. If the IMF Board agrees next month, Egypt will receive a $12 billion loan to support the implementation of economic reforms. The primary objective of the three-year program will be to unleash Egypt’s considerable potential, enhance growth and job creation, and tackle foreign-exchange shortages. But the deal also represents an important opportunity to improve relations between Egypt and the IMF – an outcome that would yield far-reaching benefits for both sides. Egypt’s relationship with the IMF has long been rocky.
Coalition for an effective SADC Tribunal: statement on the reinstatement of the SADC Tribunal (with access to individuals)
On the occasion of the 36th Summit of the Heads of State and Government of the Southern Africa Development Community, we the undersigned members of the Coalition for an Effective SADC Tribunal, are raising serious concerns over state parties insistence in denying access to justice to the citizenry of this region as per the revised SADC Tribunal Protocol. The Protocol strips the Tribunal of its jurisdiction to hear complaints from individual citizens of SADC. This is inspite of the guaranteed right for people’s participation in the SADC Declaration and Treaty under Article 23. [Jay Naidoo: The future we want - Africans rising to build a New Africa]
SADC: Costed action plan for industrialisation to be finalised early next year (SARDC)
The regional Integration pillar aims to widen the economic space for development and create incentives for industry to expand, thus providing opportunities for economies of scale, clustering and economic linkages. Specific interventions under this pillar include full implementation of the SADC Free Trade Area to cover all Member States; a common external tariff by 2025; gradual phase-down and abolition of rules of origin by 2025; liberalization of exchange controls to allow free movement of capital within SADC by 2030; and ratification of the SADC Protocol on Trade in Services for implementation by 2020.
IGAD: stakeholders review the IGAD Regional Investment Plan 2016-2020
IGAD Member States representatives, regional and continental stakeholders, private sector actors as well as IGAD, FAO, AUC, and NPCA are attending a two day consultative workshop (29-30 August) to review the IGAD Regional Investment Plan 2016-2020. This workshop is organized with support from the FAO, and in close cooperation with the AUC. It will engage stakeholders in the review of the Investment Program Areas detailed in the IGAD-RIP and in the preparation of the official validation by Ministers of IGAD Member States on 31 August 2016.
ECOWAS SPCC reviews implementation arrangements of the Community Strategic Framework
The ECOWAS Strategic Planning Coordinating Committee is holding its 11th meeting in Lagos, 29-30 August. The meeting, organized with support from the GIZ, will discuss the finalization of the strategic action programme of all institutions and agencies, and will discuss and review the implementation arrangements for the Community Strategic Framework, among others. The CSF was adopted by the ECOWAS Council of Ministers in December 2015 and is already being implemented; as the 2016 Community Budget was based on the CSF. All ECOWAS Institutions/Agencies are expected to draw their programmes from this framework. [CSOs want ECOWAS countries to address economic inequalities]
Improving external sector statistics in Central and West African countries (IMF)
The three-year project (launched 29 August) aims to enhance external sector statistics quality and close data gaps in key areas such as balance of payments statistics, the international investment position, and external debt statistics. The opening workshop brought together mid– and senior–level central bank officials of 17 Francophone beneficiary countries. Representatives of the Central Bank of West African States, and of the Bank of Central African States, also participated in the workshop.
CEMAC: common policies of member countries (IMF)
CEMAC is buffeted by the oil-price shock. The outlook has deteriorated, as members continue to suffer from the shock. Regional and national authorities have yet to take appropriate measures to address the economic downturn, whilst continuing to face substantial capacity constraints. Although the banking sector has weathered the downturn so far, government payment delays could undermine its soundness. Risks are significant: a weaker-than-expected oil price recovery or deteriorating security conditions could jeopardize macroeconomic stability. Policy recommendations: [Money changers return as Congolese Franc weakens]
Extractive industries: maximizing human development outcomes (AfDB)
The AfDB's African Natural Resources Centre has published five case studies that look at the different ways in which countries [Ghana, Botswana, SA, Chile] are designing policies and partnering with investors to reap social and economic benefits from extractive industries. The case studies were commissioned by ANRC to bridge the knowledge gap as relates to natural resources project-driven small and medium enterprise development, supply chain-based domestic linkages, extractives revenue management, public-private partnerships and fiscal policy formulation. They showcase a range of extractives project-related initiatives and policies deployed in four countries and the positive effects these have on local and national economies. The case studies include: [OECD: Corruption in the extractive value chain (pdf)]
African Union calls for uniform fishing regime (Business Daily Africa)
The AU is pushing for uniform fishing laws and increased investment in the sector to control the Sh250 billion worth of resources currently trawled away by advanced nations. Mr Bruce Mukanda, a senior programme officer at the AU’s Animal Bureau said all member states need to adopt a framework already developed by the continental body. “At the continental perspective, we are looking at individual country policies as we aim to harmonise them across the continent in order to harness this huge fisheries resource,” Mr Mukanda said in Nairobi during a Ticad VI side event. The forum brought together over 10 ministers of Agriculture who discussed how Africa can best benefit from its vast aquatic resources. [Ministerial conference on ocean economies and climate change in Africa]
Regional workshop for Africa: towards productive, sustainable and inclusive agriculture, forestry and fisheries (FAO)
The objective of the Regional workshop for Africa (19-21 September, Kigali) is to discuss how the principles for sustainable food and agriculture can promote joint action to strengthen the contribution of agriculture, forestry and fisheries to sustainable development, and to identify priorities for FAO's support at national and regional levels. The workshop will identify priorities for action in the context of FAO’s Regional Initiative 2 (RI2) on “Sustainable Intensification of Production and Value Chain Development in Africa”. The following outputs are expected from the workshop:
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SADC Council of Ministers held in Mbabane, Swaziland
His Excellency, The Right Honourable Dr. Barnabas Sibusiso Dlamini, Prime Minister of the Kingdom of Swaziland officially opened the SADC Council of Ministers in Lozitha, Swaziland on 26th August 2016. The Council of Ministers is convened to prepare for the SADC Summit scheduled to take place from 30th to 31st August 2016.
In his opening statement, the Prime Minister welcomed delegates to the meeting and to the Kingdom. He noted that over the 36 years of its existence, SADC has made tremendous progress in enhancing regional integration and cooperation. He cited regional infrastructure projects in water, transport and energy, the political stability and increased levels of socio-economic development as compelling justification for enhanced regional integration.
He noted that while the region has developed a number of strategies including the RISDP and the Industrialization Strategy, and their costed Action Plans, resource mobilisation for accelerated industrialization, infrastructure development and agriculture development remains a challenge. He called upon the Secretariat to enhance the monitoring of regional initiatives to track progress made towards deeper regional integration.
Speaking during the opening session Opening Remarks, Her Excellency Dr. Stergomena Lawrence Tax, the SADC Executive Secretary, highlighted the significant progress that the Region has made on regional integration programmes. Among others, she noted that the Region remained peaceful and stable as Member States continued to adhere to the principles of democracy, good governance and increased levels of socio-economic integration.
Further, Dr. Tax highlighted progress on a number of regional initiatives in the just ended year including, energy development, finalization of the costing of the Regional Industrialization Strategy and Roadmap 2015-2020, the launch of the Regional Humanitarian Appeal in response to the El Niño induced drought and the finalization of the costed Regional Agriculture Investment Plan for the Regional Agriculture Policy 2014.
She further noted that implementation of the regional integration programmes require adequate resources and therefore commended the incoming chair of SADC for the theme of this year’s Summit: “Resource Mobilisation for Investment in Sustainable Energy Infrastructure for an Inclusive SADC Industrialisation and for the Prosperity of the Region”, which demonstrates the Region’s continued resolve to push forward its collective efforts to mobilise resources to drive the regional integration agenda for socio-economic transformation and development. She thanked the Goverment of Botswana for the support rendered to Secreatariat during their tenure as Chairperson of SADC and expressed her readiness to work with the incoming Chairperson, Swaziland.
In his handover remarks, the outgoing Chairperson of the SADC Council of Ministers, Honourable Kenneth Matambo, Minister of Finance and Development Planning of the Republic of Botswana, highlighted a number of achievements made during Botswana’s tenure of office. These include, among others, the adoption of the Revised Regional Indicative Development Plan (RISDP) 2015-2020 and the Industrialisation Strategy and Road Map 2015-2060 whose implementation is critical for the regional integration agenda. He pointed out that this included the costing of these critical instruments which are expected to be tabled during this meeting.
Honourable Matambo also highlighted that considering the SADC Region’s high dependency on funding from ICPs, Botswana championed the development of the SADC Regional Resource Mobilisation Framework which is expected to be considered by the relevant Ministers on the margins of this Council. He further highlighted that notable progress had been made towards the development of the Regional Development Fund. With these remarks, Honourable Matambo handed over the SADC Chairpersonship to His Royal Highness Prince Hlangusemphi, Minister of Economic Planning and Development of the Kingdom of Swaziland.
In his acceptance speech, His Royal Highness Prince Hlangusemphi thanked the outgoing Chairperson, for the exemplary manner in which he steered the activities of SADC and also thanked the Republic of Botswana for keeping the thrust of the SADC agenda high, which enabled the Region to attain the unprecedented milestones reached during the year. He pledged the Government of Swaziland’s resolve to steer the region to greater prosperity and make SADC a better place for its citizens.
He highlighted that as Chairperson of SADC, Swaziland will, among other things, focus on the SADC Industrialisation drive, the roll out of infrastructure, the promotion of agriculture underpinned by the Regional Agriculture Policy, the scale up of the mobilisation of resources and the operationalisation of the SADC Regional Development Fund.
Post-Council Media Briefing, 27 August 2016
His Royal Highness Prince Hlangusemphi, Minister of Economic Planning and Development of the Kingdom of Swaziland, who is also the new Chairperson of the SADC Council of Ministers, held an encounter with the media fraternity at Lozitha Palace in Mandvulo, Swaziland on the 27th August 2016. The Post-Council Media Brief was intended to share the outcomes of the meeting of the SADC Council of Ministers. The SADC Council of Ministers successfully deliberated on several issues of importance to the region as espoused by the Regional Indicative Strategic Development Plan (RISDP).
Remarks by His Royal Highness Prince Hlangusemphi
The SADC Council of Ministers successfully deliberated on several issues of importance to the region as espoused by the Regional Indicative Strategic Development Plan (RISDP), noted the good progress made, and took decisions on how best to overcome the challenges faced by the region as well as on how to accelerate implementation of previous Summit and Council decisions.
The Council of Ministers Meeting took place here at Lozitha Palace Conference Centre, on Friday 26th and Saturday 27th August in preparation for the 36th Ordinary Summit of SADC Heads of States and Government.
You will recall the theme of the Summit, namely, “Resource Mobilisation for Investment in Sustainable Energy Infrastructure for an Inclusive SADC Industrialization and for the Prosperity of the Region”, as proposed by the Kingdom of Swaziland, in its capacity as the Incoming Chairperson of SADC, and was considered by the Council of Ministers, which endorsed it and recommended it for Summit approval on Tuesday, 30 August, 2016.
Council received the Report of the Executive Secretary which outlined the progress made with implementation of the activities within the first year of implementation of the Revised RISDP (2015-2020) during the last year. Council commended the progress made in the various areas, and noted the, challenges encountered, as well as Success Stories that have been documented by the Secretariat.
Council noted and approved the Costed Implementation Plan for the Revised 2015-2020 SADC Communications and Promotional Strategy, which will be used to communicate the SADC Agenda as well as showcase SADC achievements in the various programmes areas within the RISDP and the Industrialization Strategy and Roadmap.
Council noted the progress made with the Review of the SADC Secretariat Organisational Structure which is meant to respond to the Revised RISDP. Council directed the finalization of the study in order for it to render its approval at its next meeting in February/March, 2016, in order for the new positions to be filled and provide leadership for the implementation of the RISDP.
Council approved the Draft MoU between Southern African Development Community and the Russian Federation on Basic Principles of Relations and Cooperation. Council endorsed the decision of the MCO to mandate the InterState Politics and Diplomacy Committee (ISPDC) to consider the applications submitted by the Union of Comoros and the Republic of Burundi.
Council received a report on the costing of projects and programmes in the RISDP and noted that an amount of USD 398 billion will be required to implement infrastructure related projects. Council in adopting the report, directed the Secretariat to: map available resources, assess financing modalities, and prepare a coherent financing plan focusing on the preparations of infrastructure projects to bankability, and the convening of an Investment Conference to showcase such projects; and finalize the SADC Regional Resource Mobilisation Framework in order to give further impetus to resource mobilisation efforts for the priority regional programmes/projects.
Council received a progress report on the indicative costs of the SADC Industrialisation Strategy and Action Plan, and directed the Secretariat to finalise the process in consultation with Member States for consideration by Council and Extraordinary Summit in February/March 2017, to enable the region to solicit investment in identified areas.
Council endorsed that the SADC Industrialization Week be convened annually, alongside the SADC Ordinary Summit and received the Esibayeni Declaration of the Southern Africa Business Forum (SABF) Conference held during the SADC Industrialization Week on the margins of Council in the Kingdom of Swaziland, for transmission to the 2016 SADC Summit of Heads of State and Government.
Council considered the list of SADC candidates proposed for various international organisations and continental bodies including the African Union Commission, endorsed all the candidates, and urged Member States to support the candidates from the SADC Member States. On the Candidates for African Union Commission Positions Council endorsed Hon. Dr Pelonomi Venson-Moitoi, Minister of Foreign Affairs and International Cooperation from the Republic of Botswana as the Southern Africa Region candidate for the position of Chairperson of the AU Commission and urged SADC Member States to support her at the next elections in January 2017. Council further urged the Government of Botswana to share a strategy for the SADC candidate to garner support from AU Member States.
Council also received a report on the three High Level Ministerial Multi-Stakeholder Workshops on namely, (i) Poverty Eradication and Food Security, (ii) Energy and Water Crisis, and (iii) Illegal Trade in Wildlife. The Workshops accorded Ministers an opportunity to exchange ideas on how best to address challenges in all these areas, as well as agree on practical solutions towards addressing these challenges.
Council directed the Secretariat to operationalize the recommendations of the workshops and align them with RISDP activities going forward. Council recommended to Summit to commend the Outgoing SADC Chair for his timely intervention and for having successfully convened the workshops.
Council received the Annual Performance Report covering the implementation of the approved Corporate Plans, and noted that both physical implementation and budget utilization had increased from last year’s threshold, and directed the SADC Secretariat to continue strengthening organizational capacity in order to further improve on delivery of the SADC mandate.
Council reviewed and approved the Audited 2015/16 SADC Secretariat financial statements. Council adopted the Board of Auditors Report on the external audit of 2015/16 SADC Secretariat financial statements, and commended the Secretariat for achieving unqualified audit report and directed the Secretariat to expedite the implementation of identified financial controls.
Council received a Report on the Operationalisation of the SADC Regional Development Fund and endorsed the Roadmap for the establishment of the Fund, including the Member States contributions towards the fund over a period of three years.
Council reviewed the Food Security and Drought Situation in the Region and recommended to Summit to commend His Excellency Lt Gen. Dr. Seretse Khama Ian Khama, Chairperson of SADC and President of the Republic of Botswana for his timely Declaration of a Regional Drought Disaster and the launch of a Regional Appeal on 26th July 2016. Council further noted that the Humanitarian Appeal shows that the Region requires U$2.9 billion to cover the humanitarian needs of about 40 million vulnerable people, out of which US$393.7 million (approximately 14%) has so far been raised by Member States and their Cooperating Partners. This leaves a regional humanitarian gap of US$2.5 billion.
Council requested Member States to introduce special drought relief crossborder permits to drought relief transport operators, introduce expedited customs clearance procedures for drought relief cargo; waive cabotage restrictions and suspend third country rule for drought inputs/exports; and provide safe transit for rail and road convoy and security at logistics hubs where necessary.
Council approved that youth development and empowerment be considered as part of the progress report on the implementation of the RISDP to ordinary meetings of Council and Summit; and that 15th July of each year be recognised as a Youth Skills Day in SADC to be celebrated by Member States.
Council commended all Member States that have achieved high representation of women both in political and decision making positions in the public service and private sector and urged all Member States to strive towards reaching the gender parity target at all levels.
Council noted and approved the Roadmap on the recruitment of the SADC Executive Secretary and Deputy Executive Secretary – Regional Integration.
Council reviewed the status of Signature, Ratification and Accession to Current Protocols and urged Member States that are still not Parties to Protocols that have entered into force to accede to them; and to ratify the Protocols that have been adopted and signed but are not yet in force.
Council endorsed the following draft legal instruments and recommended them to Summit for adoption and signature:
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Draft Agreement Amending the SADC Protocol Against Corruption
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Draft Agreement Amending the SADC Protocol on Politics, Defense and Security Cooperation
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Draft Agreement Amending Annex1 to the SADC Protocol on Finance and Investment
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Draft Annex on Cooperation in Financial Matters
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Draft Agreement Amending Article 3 (1)(c) of the SADC Trade Protocol
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Draft Agreement on the Operationalization of the SADC Regional Development Fund and
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Draft Agreement Amending SADC Protocol on Gender and Development
I wish to conclude this media briefing by congratulating you our Journalists for your continued support in disseminating information on Pre-Summit events that have taken place so far in the Kingdom of Swaziland, such as the Diplomats briefing, the Public Lecture by His Excellency Jakaya Kikwete, former President of the United Republic of Tanzania, briefings by SADC Directors and Heads of Units; Launch of the SADC Industrialization Week and Subsequent activities, and the Senior Officials and Pre-Council meetings.
Your efforts in disseminating information on what is happening throughout this Summit period on the SADC activities in the region are greatly appreciated. We encourage you to continue with the good work that you are doing in informing the region about SADC programmes, policies and activities even after the Summit.