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DG Azevêdo kick-starts discussion on post-Nairobi work
Director-General Roberto Azevêdo convened a meeting of all WTO members on 10 February to discuss the future work of the organization. It was the first meeting of the full membership since the WTO’s Ministerial Conference in Nairobi.
The Director-General said:
“Nairobi was the second consecutive WTO Ministerial Conference where we delivered important outcomes. We are establishing a strong record of delivery and should build on this success. In Nairobi Ministers gave us some specific guidance on our future work. They asked us to find ways to advance negotiations and so this is an urgent priority for the organization.
“In all of the exchanges I have had so far this year, I have been struck by the sense of optimism about the WTO. There is a clear desire to deliver more. It is important that we have a rich dialogue over the coming months about how we can move forward – and in doing so we must hear the views of all.
“I think members need to acknowledge their differences. The fact is that members don’t see eye-to-eye on some issues – and this is not likely to change in the short term. Faced with this situation, the worst thing we could do would be to allow these differences to seize-up WTO negotiations – and push activity towards other forums. We can’t allow multilateral cooperation to suffer, especially at a time when the world needs our contribution to help improve people’s lives and prospects around the world – particularly for the poorest.
“In my view, we need to accept the reality of the situation. We need to figure out how to work together – despite members’ different perspectives – for the benefit of all. We need to figure out how we can keep delivering for jobs, growth and development – to make as full a contribution as we can.”
Many delegations took the floor during the meeting, with many welcoming the results of the Nairobi Ministerial Conference, stressing the importance of implementing those outcomes, and expressing their willingness to engage in discussions on how to advance negotiations. The Director-General and some members also stressed that the preparatory process for Ministerial Conferences can be improved in order to maintain transparency and inclusivity throughout the process.
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Addressing inequality is indispensable for better economic outcomes
Although most countries in Eastern Africa have experienced strong economic growth and are broadly improving the living standards of their citizens, national averages often mask uneven progress and rising disparities.
Inequality is still a growing concern in Africa and there is robust evidence that it undermines economic and social development in many parts of the continent. The meeting of the Intergovernmental Committee of Experts in Nairobi, organized by the UN Economic Commission for Africa (ECA), discussed how to attain inclusive development.
The participants to the meeting examined the African Social Development Index (ASDI), as a tool to measure inclusive development and social transformation, and a way to ensure economic development translates into well being for African populations.
ECA launched ASDI to help African countries track progress made towards the reduction of human exclusion, to identify specific social challenges and thus develop equitable and inclusive social policies.
Adrian Gauci, ECA Senior Economist who presented the ASDI explained that the index follows a life-cycle approach recognising that people can face different forms of exclusion at different stages of their lives. “This Index aims at estimating the depth of human exclusion in six key dimensions over time, including survival, nutrition, education, employment, means of subsistence, and decent life for the elderly,” said Gauci.
Pedro Martins, ECA Economic Affairs Officer presented an assessment of national and sub-national inequality and provided key data enabling the understanding of the root causes and current trends related to spatial inequality. “Mapping inequality at regional, national and sub-national levels is critical to design and implement policies that promotes inclusive and transformative development,” he emphasised.
Discussions on inequality are critical for the overall theme of the ICE meeting which is: ‘Institutions, Decentralisation and Structural Transformation’.
As emphasized by the experts who participated to the session, national factors of inequality include the strength of social institutions, factors of economic growth and government policies. Therefore, evaluating and addressing inequality in the region will help member states achieve their transformation, not only at the economic level but also on social and societal levels.
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AIDF Africa Summit 2016: Highlights
The inaugural Aid & International Development Forum (AIDF) Africa Summit was held in Addis Ababa, Ethiopia on 2-3 February 2016 at the United Nations Conference Centre. The two day summit attracted more than 300 participants representing NGOs, UN agencies, donors, governments and the private sector.
The topics discussed included mobile innovations, procurement, finance, humanitarian logistics, health and WASH, strategic partnerships, emergency communications, safety of aid workers and improving livelihoods of displaced people.
Sonja Ruetzel, Event Director, AIDF addressed the audience with opening remarks emphasizing the importance of technological innovations in improving aid delivery and development strategy in East Africa.
The first expert panel of the Summit focused on Mobile Innovations for Humanitarian and Development Work. Moderated by Christopher Hoffman, Regional Humanitarian and Emergency Affairs Director East Africa, World Vision International, the diverse panel discussed the impact of mobile devices on development work and utilising mobile technology to better reach and engage communities. Nada El Marji, Director, Aid & Development, Enterprise Channel & Portfolio Development, Inmarsat addressed how communications solutions can drive sustainable innovation. mHealth innovations and their practical implications were covered by Dr Sharad Sapra, Director of Global Innovation Centre,United Nations Children's Fund (UNICEF) in his presentation “Mobile for results”. Frédéric Massé, Vice-President EMEA Deputy Head of Global Government Relations, SAP commented on capacity building and community resilience through eAgri solutions. Importance of building partnerships and collaborations was discussed by Brice Rambaud, Regional Director for Africa Programs, Internews.
After a short refreshment break, sponsored by ATEA, the conference proceeded with an update on UN Procurement Principles and Process by Beng Teoh, Consultant, Procurement Unit, United Nations Economic Commission for Africa (UNECA). His presentation was followed by a case study on mobile banking in Ethiopia: Lorenz Wild, Senior Economic Technical Advisor, PRIME, Mercy Corps and Bethel Tsegaye, Innovation Investment Fund Manager, PRIME, Mercy Corps shared their experience of introducing the PRIME (Pastoralist Areas Resilience Improvement through Market Expansion) project’s Innovation Investment Fund.
The following panel focused on Humanitarian Logistics and Supply Chain Challenges and was moderated by Eva Mwai, Regional Director, East Africa, North Star Alliance. In particular the panellists focused on how to ensure agile operations, reduce programme waste and improve supplier relationships. They also shared lessons learned from recent operations like challenges related to transport, storage and distribution. Rishi Ramrakha, Head of Zone Logistics Unit, Africa,International Federation of Red Cross and Red Crescent Societies (IFRC) addressed challenges of last mile logistics and best practice for shipping supplies into areas of reduced infrastructure and difficult borders. Measures necessary to be undertaken to preventing corruption in humanitarian aid were highlighted by Anne Signe Hørstad, Project Coordinator,Transparency International Norway.
After the networking lunch, sponsored by Ilex, where participants had an opportunity to explore the exhibition, the AIDF Africa Summit continued with the keynote presentation on Technology & Youth by Raphael Obonyo, Africa's Representative to the Global Coordination Board, World Bank Group. His presentation was followed by panel discussion on Innovations, Partnerships, Technologies for Effective Emergency Communications moderated by Brice Rambaud, Regional Director for Africa Programs, Internews.
Andrew Rugege, Regional Director for Africa, International Telecommunication Union (ITU), Simon Gray, Field Support Manager, System Integration, Eutelsat and Stuart Worsley, Country Director, Ethiopia, Mercy Corps shared their insight into how to make communication among aid and development agencies effective as well how to empower local communities to take leadership roles and be primary agents of their own response.
After these panels the participants had an opportunity to engage in an informal roundtable discussions and also share their experiences with the group or ask more specific questions around livelihood & shelter assistance (NRS International), WASH, partnerships for health programmes (Bio-Rad Laboratories), use of satellite technology (Eutelsat), technology & youth (SAP), regional capacity building, supporting at-risk groups and disaster relief management.
The next two panels focused on Data & Knowledge Management and Sharing, which covered importance of social networks and data exchange among aid and development stakeholders, data collection/sharing and GIS uses for humanitarian programmes. The panel was moderated by David Barnard, Vice President, Africa, TechSoup and speakers included Dr Chukwudozie Ezigbalike, Chief of the Data Technology Section, Africa Centre for Statistics (ACS), UNECA,Moses Sitati, Head of Humanitarian Data Exchange (HDX) East Africa Data Lab, UN Office for the Coordination of Humanitarian Affairs (OCHA) and Ambachew Deresse, Monitoring and Evaluation Coordinator, Action Aid Ethiopia.
Last but not least participants had opportunity to learn about Safety and Training of Aid Workers. Dylan Evans, Head of Operations, Salama Fikira International shared his thoughts on how build partnerships for security and safety in complex emergencies.
Day One at the AIDF Africa Summit concluded with a drinks reception, sponsored by Iridium. The audience was exposed to latest technologies and innovations from carefully selected solution providers presented at the exhibition as well as unparalleled networking opportunities amongst key stakeholder groups.
The second day kicked off with an update on Child and Maternal Health Initiatives and Innovations, moderated by John Graham, Country Director, Ethiopia, Save the Children. The panellists provided an overview of current health threats in East Africa. Dr Martina Fuchs, CEO, Real Medicine Foundation discussed how to strengthen health programmes through the use of mobile technologies, while Brigitte Dacosta, Director, Public Health Department, bioMérieux shared her thoughts on disease prevention and control – vaccinations, testing and monitoring. “Embrace Health – Unite to screen and treat anemia” was the title of presentation by Lena Wahlhed, Director Alliance Development, HemoCue followed by Dr Azmach Gebregiorgis, National Program Officer, World Health Organization (WHO) update on regional health programmes, including maternal health.
As one of the most pressing health topics of this century, panel on HIV and AIDS Response in the Post-2015 Development Agenda was led by Dr Esther Aceng, Communicable Diseases Team Leader, WHO. Miriam Maluwa, Country Director, Ethiopia, UNAIDS provided an update on rapid testing solutions. Suggestions on how to eliminate false positive through a new rapid test solution, improve access to HIV/AIDS prevention and counselling were offered by Julien Pizzuto, CDG Channel, Partners Sales Manager Europe, Middle-East, Africa, Bio-Rad Laboratories, while Amitrajit Saha, Senior Advisor HIV and Human Rights, HIV, Health and Development Team, United Nations Development Programme (UNDP) discussed scaling up HIV treatment and care, e.g. via CD4 count or T-cell tests.
What followed was a panel on WASH Innovations and Good Practice with participation of Sean Kerrigan, Global Head of WASH, World Vision International, Manoj Kumar, Country Director, Ethiopia, Plan International, Dr Patrick Marcus, Executive Head of Technical Sales, Training & Service, Kärcher Futuretech and Dr Samuel Godfrey, Chief Water, Sanitation and Hygiene (WASH), UNICEF. The speakers shared with the audience how to ensure access to safe drinking water and sanitation, quality requirements for drinking water in the field, how to examine solutions for water treatment and what are the best practice for improving hygiene awareness and education.
Further looking into Improving Livelihoods of Displaced People, Berhanu Ulla, National Director, Habitat for Humanity Ethiopia debated how can life and livelihoods of refugees be protected and improved by looking at key areas such as shelter, energy, education, food and water supply. Clementine Nkweta-Salami, Representative, UN High Commissioner for Refugees (UNHCR) looked at latest innovations and trends in shelter assistance, disaster resilient settlements and shifting focus from temporary shelter to safe livelihoods and protection. Christopher Hoffman, Regional Humanitarian and Emergency Affairs Director East Africa, World Vision International followed with a discussion on implementing safety and product standards across the board, while Marnix Eykhout, Business Development & Sales Executive, NRS International shared his views on how can we better support at-risk groups providing them with better shelter, lighting and rechargeable solutions & nets.
Saurabh Sinha, Chief, Employment and Social Protection, UNECA presented on economic and social impacts of poverty and inequality in Africa.
The concluding panel at the AIDF Africa Summit focused on Building & Strengthening Strategic Partnerships and Richard Walden, CEO, Operation USA took role of the moderator. Best practice in building effective and sustainable partnerships that meet their goals was presented by Michael Jacobs, Chief of Party, PRIME, Mercy Corps. Troy Conrey, Managing Director, Air Serv discussed common challenges, particularly around multi-sector partnerships. New partnership models, such as shared value approach and crowd funding was at the centre of Barlin Ali, Program Coordinator, Center for International Disaster Information (CIDI), Office of U.S. Foreign Disaster Assistance (OFDA), United States Agency for International Development (USAID) presentation, which was followed by Eva Greitemann, Partner Development, Deutsches Medikamenten-Hilfswerk, Action Medeor proposal on how to manage NGO and private sector partnerships.
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Alternative Mining Indaba 2016: Final Communiqué
We, the representatives of more than 350 members of civil society organisations; faith based organisations, Pan-African networks and organisations, labour movements, industry associations, media, international partners and community based organisations, have met from 8th – 10th February, 2016, in Cape Town, South Africa, to share experiences and deliberate on the role and the impacts of extractives on communities, the environment, animal life and society at large. This marking the 7th year of the Alternative Mining Indaba (AMI) which has now grown from just 40 to more than 350 delegates, mostly from Africa.
Cognisant that Africa remains richly-endowed with a diversity of mineral resources, yet its citizens are among the poorest in the world, recognising the important role that mining and mineral resources play in the livelihoods of millions of African citizens;
Cognisant of the current decline in mineral prices and the negative impacts of reliance on a boom-bust enterprise by mineral-exporting countries;
Recognising the unbridled pursuit of profit by transnational corporations;
Desirous that the benefits accruing from mining are shared by the greater majority of Africa’s citizenry;
Dissatisfied by the exclusion of mining communities in the decision-making and benefit processes of mining enterprise;
Cognisant of the duplicity of some African intellectuals entrusted with negotiating a better deal for the benefits for the majority of Africans;
Cognisant of the economic, social and political injustices perpetrated against communities in which minerals are exploited;
Realising the need to give the disadvantaged a voice;
Desirous to create strategic tools to empower these disempowered communities;
Desirous to serve as a link for dialogue between communities, business and government;
Recognising the particular legal marginalisation of African poor, women, youth and children from access to the same resources and benefits, this stemming in part from colonial legacy; and
We call upon African governments, the United Nations, African Union, international financial institutions, transnational mining corporations and other corporate mining entities, fellow civil society organisations to join hands with us in pursuing justice in the exploitation of minerals and the benefits accruing therefrom, as outlined in our ensuing recommendations and calls to action.
ACCESS TO REMEDY: LITIGATION AND MINING
- We call on government to create and implement effective legal mechanisms to investigate and prosecute environmental damage.
- We call on government to promote beneficiation plans.
- We call on government, companies and civil society to review social labour plans emanating from extractive activities.
- We call on governments and companies to protect communities’ safety from the threat of coercion, duress or intimidation.
- We call on governments and companies to recognise and respect the right of communities to say “no” to mining projects or to the terms of proposals and contracts by recognising the principles of community consent for non-Indigenous communities and free, prior and informed consent for indigenous communities.
- We call on governments and companies to compensate beyond land value for the negative social, environmental, cultural and emotional impacts of mining activities as found through social and environmental impact assessments.
- We call on governments to enact and implement national laws supporting and strengthening international legal instruments such as the African Charter and customary laws which recognise property and cultural rights.
- We call on governments to be held accountable for proactively involving communities in the decision making process regarding the expenditure of tax revenues for community benefits through enhanced transparency and accountability.
- We call on civil society to raise awareness of SLAPPs (strategic lawsuits to silence public participation), to encourage communities to take legal action on activities that negatively affect them AND to support community-led litigation to defend or promote community economic, social and cultural rights outcomes.
- We call on civil society to develop strong networks of lawyers across the world to share impacts of litigation and help establish legal principles in domestic jurisprudence to promote rule of law decision-making and environmental justice.
ARTISANAL AND SMALL SCALE MINING
- We call for governments to decriminalise artisanal mining, hereinafter referred to as “ASM.”
- We call on governments to enact or implement legislation that empowers ASM communities depending on mining for their livelihoods.
- We call on governments to rehabilitate abandoned mines to help protect and ensure safety for ASMs, many of whom disappear in abandoned mines.
- We call on government to hold police officers involved in gold smuggling accountable for their transgressions and protect community members from their abuse.
- We call on government to formalise ASM in order to help curb violence emanating from competition for the ability to mine in specific spaces.
- We call on governments to draft and enact legislation protecting artisanal miners from exploitation and repossession of equipment by vendors.
- We call on governments to support sustainable rural development such that ASMs can have viable alternatives to make a reasonable living with food security and other economic, social, and cultural rights protected.
- We call on companies to end the practice of using ASMs as providers of cheap products to then on-sell and to provide fair prices for our resources.
- We call on civil society to help provide trainings to miners on environmental, health and safety standards and technological improvements as formalisation of the sector occurs in order to be more inclusive of women and youth participating in ASM.
- We call on civil society to find ways to engage mining communities where ASM activities occur within the policy process.
- We call on civil society to take up the pragmatic fight for the rights of ASMs beyond workshops.
- We call on civil society to help encourage diversification of economies in order to help communities become less dependent on minerals.
BUSINESS AND HUMAN RIGHTS
- We call on corporations, governments and civil society to engage in all aspects of extractive industries through constructive dialogue within the framework of human rights protections as described in the Universal Declaration of Human Rights (such as the right to civil and political participation).
- We call on corporations and governments to develop, implement and enforce appropriate grievance mechanisms for communities and individuals whose rights have been violated.
- We call on investors to disinvest from companies that perpetrate human rights violations thus holding the companies accountable for their conduct.
- We call on government to ensure that the rights of communities are protected and that the international law principle of free, prior, and informed consent by communities, not just their leaders, is observed before exploration licences are granted.
- We call on governments to enact and revise laws and policies that maximise sustainable benefits for communities with input and engagement from civil society.
- We call on governments to hold the corrupt within its ranks and within private security accountable through closer monitoring of the sector and protection of human rights.
- We call on civil society to demand more tax revenues from extractives to fund projects that benefit the affected communities.
- We call on civil society and governments to ensure that Social Labour Plans include a plan to combat the invasive nature of the activities undertaken by the extractives industries.
- We call on civil society to advocate for the adoption of an internationally binding legal instrument that holds business accountable for human rights abuses.
- We call on international human rights mechanisms to protect the rights of activists and communities and to promote their rights at an international level.
MINING AND TAXATION
- We call on governments to create space for civil society and communities to strengthen dialogue on setting national priorities and the utilisation of mining revenue and other public resources.
- We call on governments and companies to publish contracts for public scrutiny in order to create accountability for tax and royalty revenues.
- We call on governments to increase the taxation on big companies by reducing incentives in order to increase the funding available for transparent funding for localised infrastructure projects such as, roads, clinics, and schools.
- We call on governments to strengthen tax legislation, revenue authorities, and legislation as the most sustainable way to create revenues for development.
- We call on governments to remove fiscal incentives, such as tax holidays and VAT refunds, given to mining companies and the number of deductions given based on social investments.
- We call on governments to strengthen institutional structures responsible for mining taxation, and foster cooperation and coordination among government agencies (e.g. Ministry of Finance and Mines). These agencies should share information and specialised skill in order to overcome the complexity of administering mining revenue collection and minimise ministerial or agency discretion.
- We call on government to strengthen collaboration on financial transparency by demanding country-by-country reporting by multinational corporations and their subsidiaries, automatic exchange of information between Africa and its trading partners and disclosure of beneficial owners of shell companies and anonymous trust accounts.
- We call on governments to leverage on their collaboration under the African Union and the Regional Economic Communities (RECs) to harmonise their finance, investment and taxation policies to avoid tax competition. At national level, governments should develop a clear criterion for determining royalty rates based on economic and noneconomic costs and benefits of extraction rather than simply benchmarking with other countries which leads to a “race to the bottom.”
- We call on government and civil society to build and strengthen the capacity of institutions at political, regulatory and administrative levels with a view to improve negotiation skills, monitor production figures, assess profit tax liability and royalty payments and respond to, and detect transfer mispricing which is complex in nature and erodes the tax base.
- We call on civil society and governments to conduct robust research before creating mining policy and granting mining licenses.
GENDER AND EXTRACTIVES
- We call on companies and governments to proactively create space for women’s voices in decision-making processes that directly or indirectly affect them due to extractive operations (before, during and after operations).
- We call on companies and governments to honour legally binding contracts which include corporate social responsibility activities with all citizens, especially women.
- We call on government and companies to include gender impact indicators within all environmental and social impact assessments.
- We call on government to create a strong legal framework that mainstreams gender into the spending of extractives revenues.
- We call on government need to expand economic opportunities; strengthen agency of information access as well as deconstruct norms, and facilitate institutional mechanisms for women.
- We call on governments to respect and increase women’s land rights, particularly for those using their land for agriculture purposes.
- We call on civil society to work to increase our engagement with academia, women’s rights organisations, and unions in order to ensure gender sensitivity, strong political analysis and evidence-based advocacy on gender.
- We call on our civil society to emphasise the effectiveness, not just the numbers of women in influential and powerful positions.
We hereby affirm our commitment to the above stated issues and pledge our ongoing support on the same with unflinching resolve. We are also committed to working together with governments, corporations and communities and other progressive forces to ensure that these demands are met.
Declared at the 7th Alternative Mining indaba held in Cape Town, South Africa on 10 February 2016 with participants from: Zimbabwe, Zambia, USA, UK, Uganda, Thailand, Tet, Tanzania, Switzerland, Sweden, Swaziland, South Sudan, South Africa, Senegal, Norway, Nigeria, Netherlands, Myanmar, Mozambique, Mauritius, Mali, Malawi, Liberia, Lesotho, Kenya, Ghana, Germany, Denmark, Democratic Republic of Congo, Côte d’Ivoire, Colombia, Canada, Cameroon, Botswana, Burkina Faso, Austria, Australia, and Angola.
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tralac’s Daily News selection
The selection: Wednesday, 10 February 2016
Rich People Poor Countries: the rise of emerging-market tycoons and their mega firms (PIIE)
In Rich People Poor Countries, Caroline Freund identifies and analyzes nearly 700 emerging-market billionaires whose net worth adds up to more than $2 trillion. Freund finds that these titans of industry are propelling poor countries out of their small-scale production and agricultural past and into a future of multinational industry and service-based mega firms. And more often than not, the new billionaires are using their newfound acumen to navigate the globalized economy, without necessarily relying on political connections, inheritance, or privileged access to resources. [Selected chapters and sections are provided for preview only]
Tanzania's richest 10% own the economy - PM (IPPMedia)
Welcome aboard the West African Express: starting in Abidjan, Côte d'Ivoire and ending in Benin (multimedia, France24)
A colonial-era dream may become a reality. Bankrolled by French industrialist Vincent Bolloré, the €2.5 billion- and 3,000-kilometre-long rail network is set to cover five countries, from the port of Abidjan in Ivory Coast, via Niger, to the seaside of Benin. Against the backdrop of political instability and security issues, Bolloré's group project has also been fraught with controversy, including accusations of neo-colonialism.
East African countries agree to set-up of cargo control unit (Daily Nation)
Four East African countries on Tuesday agreed to fast-track implementation of a common customs and transit cargo control framework to enhance regional trade. Commissioners-general from the Kenyan, Ugandan, Rwandan and Tanzanian revenue authorities said adoption of an excise goods management system would curb illicit trade in goods that attract excise duty across borders. They said creation of a single regional bond for goods in transit would ease movement of cargo, with taxation being done at the first customs port of entry.
Top KPA, port police and tax officials replaced in shake-up (Business Daily)
Top management of agencies in charge of security and revenue collection at the port of Mombasa were Tuesday sent packing as President Uhuru Kenyatta moved to seal leakages and shore up customs tax receipts from the facility. Mr Njiraini said the agency had replaced 13 key managers involved in port operations, including those based at freight stations and transferred 50 others who have been manning the Mombasa-based CFSs.
Related: George Omondi: 'Management reforms at port of Mombasa must be incisive' (Business Daily), KPA sackings long overdue (editorial comment, Daily Nation)
Kenya mulls joining China-led lender (The Star)
Kenya is studying rules and conditions for joining China-led Asian Infrastructure Investment Bank as she looks to widen infrastructure financing space in a bid to narrow the yawning gap. Enrolling into the Asia-focused AIIB is however not an immediate plan, Treasury CS Henry Rotich said, citing other options including African Development Bank-led Africa50 Infrastructure Fund.
I will leave power after East Africa is united - Museveni (Daily Monitor)
President Museveni yesterday defended his long stay in power and campaign to extend his 30-year presidency for another five years, saying he needs to help East African countries achieve a federation. “I am here to see whether we can help you get the East African federation so that we have a critical mass of strength that can guarantee your future, our future and our children’s future. But not talking about presidency,” Mr Museveni said. He said a single sovereign state of East Africa, which will include Burundi, Kenya, Rwanda, Uganda and Tanzania, is his target and must be achieved.
Tanzania: Employers, trade unions differ on Tanzania's position regarding foreign workers (IPPMedia)
According to EATUC chairperson Francis Atwoli, the government was right to conduct a thorough vetting of foreigners wishing to work in Tanzania. However, Atwoli’s sentiments were disputed by East African Employers Association chairperson Rosemary Ssenabulya who faulted Tanzania for “locking out” other East Africans from the job market. According to Ssenabulya, such a move was going against the East African Community regional market protocol which advocates for free movement of labor across the borders of member states. She urged Tanzania to instead emulate Rwanda’s apparent commitment to the protocol.
Mozambique: Economic growth hits 20-year low in 2015 (StarAfrica)
Mozambique’s National Statistics Institute says the country’s gross domestic product rose 5.6% in the last quarter of 2015, registering annual economic growth of 6.1%, 1.1% points down from the figure for the previous year. The area contributing most to economic growth, according to the INE, was the secondary sector, with a growth of 8.5%, with electricity and water doing best at 13.9%, followed by construction with 7.4%. The primary sector grew by 6.6%, “underpinned by mineral extraction,” increasing over 8.8%, and the tertiary sector posted a positive performance of 5.9%, “driven by the financial, trade and repair services branches”.
New SADC regional standards for HIV care along road transport corridors (Health Systems Trust)
The purpose of these standards is to provide guidance to MS and implementing partners from both the public and private sectors in delivering high-quality health services to LDTD, SW, and people living along road transport corridors in SADC. They are intended to improve access to HIV and other health services by these target populations, who are at greater risk of HIV infection. The standards describe service delivery models and the minimum package of services, and define roles, responsibilities, and management mechanisms to facilitate sound and sustainable implementation.
Southern Africa improves on visa openness (Southern Times)
The United Nations World Tourism Organisation 2015 Visa Openness Report shows that 29% of visitors travelling to the sub-region do not need to have a visa. However, 71% of the world’s population need traditional visas to visit countries in Southern Africa and none can access a visa on arrival or an eVisa. East Africa, together with South-East Asia, has also remained the most open sub-regions in the world because of the large number of visa on arrival (52% of the world’s population in average) and the considerable number of visa exemptions (7%) and eVisa alternatives (9%). Only 33% of visitors need a traditional visa.
SADC approves KAZA-ATFC integrated development master plan (Angola Press)
The participants [Angola, Botswana, Namibia, Zambia, Zimbabwe] congratulated Zambia and Zimbabwe for the successful completion of the pilot phase of the visa of KAZA-ATFC. The said countries have submitted a joint report, which will be the subject of consultations in the remaining member countries. The note stresses that the ministers expressed big concern about the sharp increase in poaching in KAZA-ATFC area, with particular emphasis on the slaughter of elephants. Ministers discussed the financial sustainability of the organization strategy and called on the timely payment of membership fees.
COMESA and the Corporate Council on Africa renew MoU to promote trade
The Common Market for Eastern and Southern Africa, through the COMESA Business Council, and the Corporate Council on Africa strengthened their working alliance by renewing their Memorandum of Understanding, which sets out how they will enhance regional integration and cooperate in areas of trade promotion and private sector development. The MoU is valid for three years. The cooperation is expected to establish linkages between COMESA business associations and the chambers of commerce and other relevant business associations in the United States of America.
US-COMESA trade and investment council meeting: update (Times of Zambia)
Food suppliers pledge to improve quality standards to increase local sourcing (COMESA Business Council)
The Local Sourcing for Partnerships Project, Zambia Chapter, held the first training from 25-30 January at Taj Pamodzi Hotel. The training workshop was organized by the COMESA Business Council in collaboration with the Zambia Association of Manufacturers. The event is the first in a series organized by CBC with support from the Investment Climate Facility for Africa, and USAID-IPAA, targeting local small growth companies in the agro-processing sector. The training brought together 67 local agro-processing suppliers.
India may extend LoCs to some African nations in agri sector (Economic Times)
Commerce Secretary Rita Teaotia said huge opportunities exists in agriculture sector in India and Africa. "We hope to extend lines of credit to joint venture agri business initiatives in Africa to deepen our engagement in the agri sector particularly in LDCs (least developed countries) and thereby help to support food security in both our regions," she said at the India Africa AgriBusiness Forum organised by Ficci. "We now provide 98.2% of our tariff lines (products)...to LDCs. Out of the 34 LDCs in Africa, 21 countries have already begun to avail the benefits of the scheme and 13 are yet to become beneficiaries. We sincerely hope these countries too will come on board soon and use the access to India's market," she added.
Promoting African agribusiness development: UNIDO, MASHAV cooperation (UNIDO)
The United Nations Industrial Development Organization and Israel's Agency for International Development Cooperation, Ministry of Foreign Affairs (MASHAV), will further advance joint activities, notably in the field of agribusiness development, especially in Africa. UNIDO and MASHAV will cooperate in providing technical assistance, capacity building, consultancy and demonstration projects to governmental entities and civil society organizations.
Related: Saudi Arabia eyes investment in Zambia's agriculture sector (The Post), Iran seeks to develop agriculture in Africa after sanctions lifted (African Business Review)
WTO Committee on Agriculture: implementation of the NFIDC decision concerning food aid (WTO)
At the tenth Ministerial Conference of the WTO (MC-10) at Nairobi, Ministers reaffirmed their commitment to fully implement the NFIDC Decision. WTO Ministers at MC-10 simultaneously also adopted the Decision on export competition which states that nothing in this Decision can be construed to diminish in any way the existing commitments contained in the NFIDC Decision nor shall the monitoring and review of the latter be affected.
Lapsset legal framework is elephant in the room (Business Daily)
If the proposed Lapsset pipelines are built according to plan, they will traverse more than one sovereign territory and be subjected to multiple laws and regulations. A robust treaty aimed at levelling the playing field will be absolutely necessary to facilitate an effective transit pipeline system and avert disagreements between Kenya and her neighbours.
Financial channels, property rights, and poverty: a Sub-Saharan African perspective (World Bank)
Looking at a sample of 37 countries in Sub-Saharan Africa from 1992 through 2006, the paper suggests that financial deepening is associated with lower poverty through different channels depending on the strength of property rights. In the absence of well-defined and enforced property rights, wider access to saving and risk-sharing instruments is accompanied by a reduction in poverty. Only once property rights grow stronger is credit associated with lower poverty.
Rethinking development strategies after the financial crisis: country studies and international comparisons (UNCTAD)
In this second volume, four countries are selected based upon the role that they play in the developing world and the current discourses on development: Brazil, Chile, China and India. To a certain extent, they all represent development success stories, at least for a considerable spell of time.
India pushing for a WTO Trade Facilitation Treaty on Services (Economic Times)
India is pushing for a trade facilitation agreement on services similar to the one on goods at the World Trade Organization to liberalise services trade, especially in areas developing countries are interested in, commerce secretary Rita Teaotia has said. Commenting on TFA on goods, which is yet to be ratified by India, the commerce secretary said that most of the consultation is complete and it would be ratified "at the earliest".
Zambia: More Great Lakes region exports underway (Times of Zmbia)
SA heading for policy discouraging trade through new bills (Business Day)
President Zuma sets up task team to tackle jobs, growth (Eurasia Review)
Intra-Africa trade to reduce donor dependence: Kagame (multimedia, New Times)
China’s current account in 2015: a growing trade surplus (PIIE)
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South Africa looks to mining's future
“There is an ebb and flow to life; there are highs and lows. There are sunny days and grey days, summers and winters. The 2016 Mining Indaba comes at a time when the mining industry is in its winter season, a season which some have characterised as a crisis.”
With these words Mineral Resources Minister Mosebenzi Zwane opened the annual Investing in African Mining Indaba in Cape Town on Monday morning. The Mining Indaba, as it is known, runs from 8 to 11 February, and is attended by the leading mining companies as well as juniors, government representatives, ministers and civil societies, mining engineers and others invested in the continent.
The indaba comes during a slump in commodities, with mines shedding jobs and mining houses cutting costs.
Yet ahead of the conference, Jonathan Moore, the managing director of the indaba, said that extracting and processing minerals in Africa – the world’s richest supply – was essential to manufacturing everywhere in the world. “We cannot stand still in a sluggish economic cycle. Focusing on how we will think, act and plan now will position us to take strategic advantage when the coming upturn begins.”
Speaking of his first few months in office, Zwane said he had met various stakeholders, who had indicated that regulatory certainty was necessary. In response, the government had prioritised the processing and finalisation of the Mineral and Petroleum Resources Development (MPRD) Amendment Bill as a matter of urgency “to entrench the necessary certainty”.
“We are also in the process of reviewing the Mining Charter. It is an important transformation tool and its targets remain applicable beyond 2014. The social and labour plan commitments constitute a critical component of restoring and sustaining the dignity of mineworkers and communities.”
Regarding stability, the minister also pointed out that in terms of the latest global competitiveness rankings, South Africa featured favourably with regards to financial market efficiency, transport infrastructure and property rights. “As government we will continue to create an enabling environment for investment and the ease of doing business in the country.”
Other issues brought up during consultations with stakeholders included labour stability. “Together we have created a stable mining environment through the presidential-led Framework Agreement for a Sustainable Mining Industry. There are now fewer disruptions in the industry, enabling operational activities to stabilise under the circumstances.”
Another concern was job losses and leaders in the industry convened under the Mining Growth, Development and Employment Task Team and committed to a 10-point declaration in an attempt to save jobs and ameliorate the impact of job losses. “I call upon captains of industry to deal with this matter responsibly, after proper consultation with all affected stakeholders, especially the workers,” Zwane said.
“Some of you indicated that restructuring was inevitable for the sake of ensuring sustainability for your businesses.
“You indicated that empowerment and transformation of the industry was taking place at a very slow rate. Our quest for inclusive economic growth – including empowerment of women, the youth and other members of vulnerable groups – is designed to help us achieve the type of society where everyone has a better life. We will provide requisite support for this new generation of miners, which we anticipate will be characterised by junior to mid-tier mining companies.”
Restructuring of assets must be done in a respectable and responsible manner that also assists in the empowerment of our people.
Turning to research and development, he said the government was investing in the sector throughout the mining, minerals and upstream petroleum value chain. “We are investing in the pre-competitive exploration phase in which the state through the Council for Geoscience is being resourced to apply the latest technology in order to enhance exploration interest. Our goal is to substantially increase the share of the global exploration expenditure.”
Regarding health and safety – particularly in light of the ground collapse at Lily Mine in Barberton on Friday, 5 February, in which three miners are still trapped underground – the minister said great strides had been made in ending fatalities, and the lowest statistics were recorded in 2015. A Mine Health and Safety summit in November would review current commitments.
However, speaking at press conference following his opening address, the minister pointed out that unions also needed to be on board with safety issues as “some fatalities are caused by worker negligence”.
In concluding his opening address, the minister turned to diversification into other new areas of exploration, which stakeholders in the industry had said was necessary.
“South Africa has relatively good prospects for upstream oil and gas development, including shale gas. We are encouraged by the level of interest expressed in in this emerging industry and the government has already strengthened the regulatory framework relating to oil and gas development.”
Speaking at the press conference following his speech, he said three companies had made five applications for hydraulic fracturing for shale gas in the Karoo. The government was “looking at those applications”, he said, but would not be drawn further.
The African continent was indeed the right address for investment directed towards mining and minerals development in line with the African Mining Vision, he concluded.
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Obama signs Africa electricity initiative into law
President Barack Obama signed into law Monday a measure aimed at expanding electricity to millions of households in sub-Saharan Africa, a measure supporters say will save lives and accelerate growth on the continent.
The Electrify Africa Act, which unanimously passed the House of Representatives and Senate, leverages partnerships with the private sector in order to bring first-time electricity access to some 50 million people in underserved parts of Africa.
Virtually no new US federal funds are allocated for the project, which instead will use a system of loan guarantees to add 20,000 megawatts of electricity to the continent’s grid by 2020.
Access to power is a fundamental development challenge in Africa, and boosting it will stimulate economic growth and improve access to education and public health, the bill’s backers argue.
“It’s a game-changer for small businesses that have to close at dark, and school children who are often forced to study by dangerous, inefficient kerosene lamps,” said House Foreign Affairs Committee Chairman Ed Royce.
“And too many families resort to using charcoal or other toxic fuel sources, whose fumes cause more deaths than HIV/Aids and malaria, combined.”
The law aims to build on a “Power Africa” initiative Obama promoted during a trip to Kenya in July.
It would see the investment of about $7 billion in US funds, largely financed through the US Export-Import Bank, in order to create 30,000 megawatts of clean energy generation.
Through the plan, “we can make great strides in addressing African energy poverty and promote inclusive economic growth for communities in Africa and at home,” Senate Democrat Ben Cardin said.
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Strong institutions: a key for a transformed Eastern Africa
The 20th session of the Intergovernmental Committee of Experts (ICE) of the Eastern Africa Office of the UN Economic Commission for Africa (ECA) organised in Nairobi from 8 to 11 February 2016 discusses key issues and challenges pertaining to the economic and social development of the region.
In the last decade or so, Africa has achieved significant growth levels, if measured in GDP terms. Eastern Africa in particular has been one of the best performing regions on the continent. The recent dramatic fall of commodity prices has exposed the limitations of a growth path based on high commodity prices. This is particularly so for resource-rich exporting countries on the continent. Antonio Pedro, Director of ECA in Eastern Africa says that fortunately, the growth story in Eastern Africa cannot be explained solely on high commodity prices.
“Instead, rising consumer spending driven by demographics, rapid urbanisation and a burgeoning middle-class with increasing purchasing power, good performing services sector, and growing investments in infrastructure have been important growth drivers in many of our countries,” says Pedro.
But, the overall state of the global economy with China's slowing economy playing an important role will certainly have an impact on the region's growth prospects. Pedro explains that Eastern Africa is therefore at the crossroads of deciding which growth model(s) will reduce its exposure to external shocks and generate resilient, broad-based development and structural transformation in the region.
The theme of the meeting is: ‘Institutions, Decentralisation and Structural Transformation in Eastern Africa’.
The ICE meeting brings together senior government officials from fourteen countries served by the Office as well as representatives of Regional Economic Communities, development partners, research centres, media practitioners, private sector and civil society organisations operating in the region. Among the topics to be discussed, the meeting examines the role of institutions in promoting structural transformation and equitable growth in Eastern Africa. The question to ask is which foundational factors will deliver such transformation?
No doubt that institutions are fundamental to transformational change and to building a cohesive, resilient, competitive and transformed region. This does not only mean organizational structures, but also about the formal rules (constitutions, laws, property rights, contracts, etc.) and informal norms, customs, beliefs, traditions, routines, practices, and codes of conduct that govern political, social and economic interactions, shape behaviours, condition societal expectations, structure the design and the content of decisions, motivate change and determine development outcomes.
“Today, our region is in need of inclusive growth where no social category, gender or age is left behind,” emphasizes Pedro. He added that this necessitates the creation of the necessary platforms and processes to ensure that we harness the full potential and creative energy of all of our citizens, including women and the youth. It is equally vital to tackle geographical inequality and inequity to build socially cohesive nations. Decentralisation is a prerequisite to achieving that. It is not just a linear process of power transfer from national to sub-national jurisdictions, but an effective instrument to empower local institutions as the main drivers of their own development.
Pedro states that in this new society, we may need to move away from heavily centralized societies to embrace development pathways where leaders and followers, the governed and the governor co-exist symbiotically in an ever dynamic ecosystem, glued by a shared vision of prosperity and a solid compact for transformational change.
“Therefore, discussing the nexus between institutions and decentralization processes and their role in promoting or hindering structural transformation in our region is timely,” concludes Pedro.
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IMF, Ghana and DFID highlight the value of data for better economic policies in Africa
One of the largest regional conferences on the importance of data for better macroeconomic policies was concluded on 2 February 2016 in Accra, Ghana. Organized by the Government of Ghana, the International Monetary Fund (IMF), and the United Kingdom Department for International Development (DFID), the conference brought together policymakers from over forty African countries as well as representatives from academia, banks, rating agencies, think tanks, and international organizations.
Participants at the conference committed themselves to promoting the dissemination of data for enhanced evidence-based economic decision-making. More specifically, their discussions were focused on the importance of accurate economic data for analysis and economic policy-making, the special challenges of regional integration for macroeconomic statistics, and the benefits of data transparency for policy-making.
The Ghanaian Minister of Finance and Economic Planning, Seth Terkper opened the conference and the IMF Deputy Managing Director, Min Zhu, delivered a key-note speech on enhancing data for macro policies. “In Africa, as elsewhere, we need to jump ahead of crisis management when it comes to data, and seek to enhance the gathering, processing, dissemination and analysis of data to help us formulate and implement the best possible set of economic and financial policies,” said Zhu.
Reflecting the significance that senior officials attached to this conference, the Kenyan Central Bank Governor, Patrick Njoroge stated: “The conference provided a unique opportunity for high-level decision makers to exchange ideas and experiences so that we can work together to strengthen the data used for policy making.”
The Directors of the IMF African and Statistics Departments Ms. Antoinette Sayeh and Mr. Louis Marc Ducharme, respectively also provided different perspectives on how data supports effective policymaking. DFID Chief Statistician, Mr. Neil Jackson, spoke to the conference about the objectives and achievements of the Enhanced Data Dissemination Initiative (EDDI) where DFID has supported IMF capacity development activities in Africa benefiting government agencies, national policy makers, civil society and external funding partners.
The conference culminated with a round table to explore the main challenges that African countries are facing to enhance data. This included: the appropriate minimum standards and benchmarks for data quality from a policy maker’s perspective, what can be done to address the obstacles, and how the IMF can support these efforts, especially its technical assistance and training supported by external partners.
The conference presented participants with an opportunity to learn about the work on statistics that the IMF has been doing in Africa, including with the support of DFID through the EDDI project, now in its second phase. The EDDI2 project covers technical assistance to 44 economies in Africa, the Middle East and Central Asia, and contains 10 modules on national accounts, prices, monetary and financial, balance of payments, and government finance statistics, as well as the dissemination of data.
Enhanced Data for Better Macro-Policies
Opening remarks by the Deputy Managing Director Min Zhu, IMF, at the STA Capacity Development Conference for Africa
Honorable Ministers, Governors, Directors of National Statistical Agencies, and Distinguished Guests:
I want to begin my opening remarks with a quote by former British Prime Minister Sir Winston Churchill who once stated: “The utmost confusion is caused when people argue on different statistical data.”
This speaks to the very crux of today’s conference and applies to the challenges that you are confronted with as policymakers in Africa. You – but also we at the IMF and other stakeholders – need to base our economic decision-making on hard data and analyze those data carefully to extract the best informed common understanding of current economic conditions and likely outcomes. All too often, decision-makers do not have those data at hand, or we believe that we have data which later turn out not to be as reliable as we thought. And how often have we caught ourselves in questioning data because they do not fit the argument we want to make? Very often, it is crisis moments that make us realize that the data and the analysis on which we based our economic decisions were faulty or incomplete. In Africa, as elsewhere, we need to jump ahead of crisis management when it comes to data, and seek to enhance the gathering, processing, dissemination and analysis of data to help us formulate and implement the best possible set of economic and financial policies. This conference aims to shed light on the importance of data for economic decision-making and focus our attention on the relationship between more and better data and the improved economic outcomes that we seek. It also can help us prevent and cope with international economic crises.
With this in mind, this conference aims to focus our attention on three main areas:
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The importance of accurate data for analysis and policy making;
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Regional Integration of statistics and macroeconomic policy making; and
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The linkage between data transparency and policy making.
Why do we think it useful for Africa to focus on these themes, how have IMF partnerships with others contributed to enhancing data for better macro-policies, and what should we hope to learn during this exchange of views today? So let me shed some light on these important questions so as to set the stage for our deliberations today.
Data Accuracy
Accurate macroeconomic and financial data are essential for economic decision-makers. Almost everything that governments and central banks decide is justified by how data are moving, sometimes at a rapid pace. And those decisions are being scrutinized by the public and other stakeholders – including the IMF, investment banks, rating agencies, development partners, and civil society – again, against the underlying data. In Africa, the quality of data collection, processing and dissemination is undergoing a dramatic transformation, building on the accumulation of years of improvement efforts. In addition, new sources of data and collection tools (such as foreign direct investment surveys) and techniques (using tablets and cell phones), as well as improved data compilation methods to apply internationally accepted statistical methodologies, are leading to the availability of more up-to-date and accurate information. Some examples to be discussed at today’s conference would include the updated levels of GDP and growth rates in some of the economies on the continent. In addition, higher frequency indicators on real economic activity and prices are aiding the authorities that are contemplating or implementing inflation-targeting policies. Similarly, the sustainability of fiscal policies, and analyses of financial and international risks, are being reinforced in economies that adopt the latest statistical developments in government finance, financial soundness indicators, and balance of payments and international investment position methods. And while we have for decades focused on traditional macroeconomic and financial statistics, the data revolution of the last few years has confronted all of us with an abundance of new data – BIG DATA – that, while adding to our decision-making base, has also been complicating decisions, just because of the avalanche of information that needs to be digested.
In this context, I want to highlight that it is a worthwhile investment to help countries improve their data as the basis for how they come up with their macroeconomic policy decisions. One example is how the IMF has been working with countries to rebase their national accounts. In the case of Zambia – to name just one country that is also present here today – the IMF assisted in the country adopting the latest methodology – the 2008 SNA – and improving surveys and the coverage of informal activity. As a result, the rebased national accounts for 2010 that were released in March 2014 were about 25 percent higher than measured before, giving policy makers a better picture of the true underlying economy. Such a substantial change in GDP forces policymakers and other stakeholders to revisit the fundamentals of their assessment of a country’s economy; think about the revenue effort, debt sustainability, money demand, the inclusiveness of economic growth – all these economic concepts and the understanding of an economy are fundamentally affected when GDP suddenly is so far different from where it used to be.
Thus, we would like to focus attention in today’s conference on how accurate and reliable the various macroeconomic data sets are and look forward to hearing from national statistical experts, as well as senior policy-makers, on how well the data are serving policy needs. We would also hope to hear about what remains to be done to improve the data needed for policy purposes, and the efforts that have already been set in motion to address those needs. By sharing these perspectives and experiences, this conference aims to set the course for the next round of data improvement efforts to enhance policy formulation, implementation, and monitoring. These data improvements will be encouraged and supported by the IMF, especially our Statistics Department in partnership with donors such as the UK’s Department for International Development (DFID) that has generously provided substantial funding so that we can meet here today.
Regional Integration
A number of regional integration efforts are in progress across the African membership, and the IMF stands ready to support these efforts. Part of our analytical work to embellish optimal currency areas, and the harmonization of fiscal and monetary policies in the context of these efforts, relies on the adoption of common sources and methods to put the data together. Without coordinated statistical initiatives we will not be able compare information within those sub-regions and across countries.
We will look to hear from national and regional policy leaders and other experts on the practical issues of economic integration and convergence activities in Africa, while drawing on some of the lessons learned in Europe where integration and harmonization are well advanced. Both the challenges and successes will contribute to learning that could be applied in new contexts. Again, we also expect to hear from IMF staff on how our efforts have contributed to these aspirations set by the authorities, especially in areas of regional statistical harmonization through legal and institutional instruments, common datasets in line with international standards, as well as the methods used to put the information together and to disseminate the data.
Data Transparency
The third session today will focus on the dissemination of data – to the various users of statistics for their own decision-making. This is foremost the public – the citizens of a country – but stakeholders are many: domestic and international companies, investors, rating agencies, data resellers, academia, the media, development partners and, of course, the IMF – just to name a few. The availability of improved methodologies, new insights into economic linkages and spillovers, and new technologies has also increased the speed with which data are being made available, analyzed, and used. And while in the past the focus on data has often been mainly been national, everything is global nowadays – raising the importance of data transparency even more and prompting the IMF to renew emphasis on data transparency in recent years. In this context, we aim to spark an active discussion on the IMF’s Data Standards Initiatives during the third session today.
Let me share some background with you.
The 2008-09 global financial crisis revealed significant data gaps that prompted the IMF, in cooperation with member countries and other international organizations, to launch a joint multi-year effort to fill data gaps on the basis of 20 recommendations. This G-20 Data Gaps Initiative was endorsed by G-20 Finance Ministers and Central Bank Governors and the IMF’s IMFC in 2009. It has focused on the build-up of risks in the financial sector, cross-border financial linkages, the vulnerability of domestic economies to shocks, and improved communication of official statistics. Since then, following a highly successful international effort that helped reduce data gaps largely as intended, we recently moved to the second phase of the initiative that emphasizes the regular collection of data under existing and new conceptual frameworks and strengthens the link to the IMF’s highest-tier data standard – the SDDS Plus that was introduced in 2014. So far eight countries have joined this demanding data standard, and we are eager to work with other countries to follow suit.
While the SDDS Plus is mainly geared toward advanced and emerging market economies, in May 2015 the IMF introduced the so-called e-GDDS – the enhanced General Data Dissemination System. Some 110 economies – or roughly 60 percent of the IMF’s membership, many of them low- and middle-income countries in Africa – can benefit from this reform to the IMF’s data standards. The e-GDDS was designed to assist countries to improve data transparency, by publishing essential data for the analysis of macroeconomic conditions and policies and leveraging the IMF’s Article IV Consultation discussions to elevate statistical issues to the attention of senior policy-makers. As a result, markets, investors, and the public at large will benefit from the removal of uncertainty on data dissemination, with ready access to key data in15 data categories according to the coverage, periodicity, and timeliness guidelines encouraged in the e-GDDS framework.
The e-GDDS is also well-suited to allow dissemination, at each country’s choosing, of the possibly up to 300 indicators underlying the 17 new Sustainable Development Goals. The full set of indicators is slated to be adopted by the United Nations Statistical Commission in March 2016. The IMF has participated in the Interagency Expert Group and offered its expertise on several indicators of macroeconomic relevance, also with a view to ensuring that countries can effectively compile and monitor the relevant indicators.
Overall, we believe that the roll-out of the e-GDDS will ensure the robust and regular dissemination of data in an efficient way. It will support better and evidence-based economic policy-making and facilitate the assessment of potential economic vulnerabilities and risks. Regular monitoring and reporting by IMF staff will stimulate peer competition and beneficial pressure from stakeholders and markets.
The IMF’s Statistics Department (STA) has begun to provide technical assistance (TA) and training on the e-GDDS to interested countries, in an effort to set up National Summary Data Pages (NSDP), develop and use Advance Release Calendars, and deal with the associated information technology aspects. I am pleased to announce that the first e-GDDS country is Botswana, which we will further delve into in the third session. STA will continue to offer countries assistance in setting up web-based Open Data Platforms for their data dissemination needs to the public and other national and international users and to operationalize the e-GDDS. This is based on a highly successful cooperation with the African Development Bank in some two dozen African countries where work on the ODP has been piloted.
The IMF’s work on the e-GDDS emphasizes that it is not sufficient to produce and compile macroeconomic and financial statistics, but it is essential to also disseminate and use the data for better policy making. Lack of, and weaknesses in, high-quality economic data severely constrain the effectiveness of countries’ economic policies, and the lack of data transparency significantly impacts private sector activity.
Let me also highlight that effective January 2015, all of the IMF Statistics Department’s macroeconomic data covering all economic sectors across a large part of the IMF’s membership was made freely accessible to everybody. As stated by the IMF’s Managing Director at the announcement of this major change in November 2014, “the free data program will help those who draw on our data to make better use of this vital statistical resource – from budget numbers to balance of payments data, debt statistics to critical global indicators.” We have rolled out the free data program with a new online dissemination portal at http://data.imf.org.
IMF Partnerships to Promote Enhanced Data for Better Policies
But let me come back to the daunting challenges on the data front that many developing countries in Africa are facing. The IMF has been a major player in the global efforts to assist developing countries in the statistical area. Based on a thorough assessment of needs, the IMF has provided considerable and well-targeted technical assistance and training on statistics to many countries; this now accounts for more than half of the STA’s activities. The numbers are impressive: in the IMF’s fiscal year that ended in April 2015, STA sent 667 TA missions to countries around the world and organized 111 training events reaching thousands of country participants. About half of this TA on statistical issues is benefiting low-income countries, many in Africa. We have also stepped up our specific support to fragile states, with the number of TA missions to this diverse group of countries slated to double between FY2014 to FY2016 – a sign of these countries’ enormous challenges on the data side.
As in the case of Zambia, we have many other success stories of our capacity development that have resulted in new data sets, longer time series, higher frequency data, or just better data – consistent with internationally accepted statistical methods.
The IMF’s capacity development has traditionally focused on “bread-and-butter” statistics, such as national accounts, prices, government finance statistics, monetary and financial sector statistics and a full range of external sector statistics. This is where we have a strong comparative advantage. The IMF is known as a leader and standard setter in the methodological area, having authored and co-authored with international partners some two dozen Manuals and Guides, such as recently the new Balance of Payments Manual Compilation Guide or the new 2014 Government Finance Statistics Manual.
But lately the IMF has also stepped up its emphasis on providing TA and training on data dissemination, the development of open data platforms, and new statistical domains, such as high-frequency indicators needed for monetary policy implementation, source data to improve national accounts, and real sector price statistics, sectoral accounts, and balance sheet analysis to help detect economic vulnerabilities and risks. These are areas that countries have indicated to us they would like to see covered in our global capacity building efforts as well.
In all of these undertakings, the Statistics Department – like other IMF departments – has benefited from the generous support of our partners that help finance our capacity development; countries such as Japan, the UK, Switzerland, the Netherlands, Belgium have made this possible, together with the Bill and Melinda Gates foundation, the Center of Economics and Finance in Kuwait, and the many partners supporting the IMF’s nine Regional Technical Assistance Centers around the globe that all offer a multitude of TA and training in the core statistical fields.
Special Thanks to DFID
Let me take a moment to express our special thanks to the DFID. This goes beyond DFID’s generous financial support to bring all of us together here today in Accra. As many of you are directly aware, the IMF partnered with DFID support on an Enhanced Data Dissemination Initiative (EDDI), a five-year project that ended in March 2015. EDDI supported 165 STA technical assistance (TA) missions and 28 workshops on behalf of the 25 participating African countries. The TA and training was delivered through modules structured around groups of countries with similar needs in the four main areas of macroeconomic statistics: monetary and financial statistics, government finance statistics, balance of payments statistics, and real sector statistics (comprising national accounts and prices). The EDDI received DFID’s highest evaluation rating and was very highly regarded by the recipient countries, with particular emphasis on relevance (consistent with country objectives and priorities), impact (results achieved), and sustainability (results will remain after project ends). The project yielded numerous results, with more comprehensive, timely, and higher-quality data in many countries.
As a follow-up to this work, DFID is supporting EDDI Phase 2 that began in May 2015 and focuses on continuing and expanding the project to 44 countries (including in the Middle East and Central Asia), providing support to fragile states and contributing positively to the IMF’s surveillance and lending operations in those areas. The project’s emphasis on the compilation and dissemination of a broad range of macroeconomic statistics will be conducive to promoting economic governance and transparency and, ultimately, supporting the achievement of economic stability and sustainable growth. For example, the envisaged strengthening of government finance statistics in a selected group of countries will promote fiscal transparency and reduce fiscal risks, as more and better information on the government’s underlying fiscal and debt positions becomes available. Improvements in national accounts and price data will help policy makers in defining their macroeconomic policy stance, such as through the availability of better price statistics for the design and implementation of monetary policy. Finally, stronger external sector statistics will help improve countries’ assessment of their vulnerability to exogenous external shocks and facilitate coming up with the appropriate policy response.
In conclusion, what do we hope to achieve at today’s conference?
We are here to listen and learn. The IMF wants to hear what you have to say about the role of data in your policy decisions. I am sure we all will learn from each other on the challenges and opportunities that are faced by national agencies that gather and present macroeconomic and financial statistics, including national statistical agencies, central banks, and ministries of finance. We also aspire to learn from successful experiences and explore new ideas to enhance those data. I can promise you that the IMF will continue to support those efforts, including through our work to develop and refine internationally accepted statistical standards that give policy makers useful data frameworks. We also will continue to provide the TA and training to sustain your efforts in these areas.
Jim Barksdale, former Netscape CEO, once said: “If we have data, let’s look at data. If all we have are opinions, let’s go with mine.” If we want to avoid basing our decisions on guesses and opinions, we need the best possible data to aid our understanding of economic developments and to help us formulate the sets of policies that will lead to greater prosperity for our citizens. One could summarize this by saying “We Need Really Good Data to Attain Real Results”. Thank you for joining us in this conversation during today’s conference and we look forward to our continuing engagement together to make this happen.
Thank you very much.
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Kenya mulls joining China-led lender
Kenya is studying rules and conditions for joining China-led Asian Infrastructure Investment Bank as she looks to widen infrastructure financing space in a bid to narrow the yawning gap.
Enrolling into the Asia-focused AIIB is however not an immediate plan, Treasury CS Henry Rotich said, citing other options including African Development Bank-led Africa50 Infrastructure Fund.
“We are reviewing our access options by studying the articles of association and benefits,” Rotich said last Thursday. “Obviously there are benefits of joining and we will consider at what stage to join.”
Africa's second largest economy South Africa and third largest Egypt are the only African members out of 57 founding countries of the AIIB.
The development lender, officially launched on January 16 by Chinese President Xi Jinping, is set to start operation in the second quarter of the year.
It has an immediate investment portfolio of $50 billion (Sh5.12 trillion) and a share capital of $100 billion (Sh10.21 trillion) as it seeks to play in the space previously dominated by the the World Bank Group, which has more than double that financial muscle of the former.
Rotich said the government remains open to various options in closing its infrastructure funding gap, conservatively estimated at Sh180 billion annually, largely targeted at transport, energy and agriculture sectors. Specific short- to long-term projects are concentrated in roads, railways, airports, seaports, electricity lines and pipeline.
“There is need to expand our funding and all these options are welcome to Kenya,” the CS said. “But perhaps the starting point should be African Development Bank which has Africa50 Fund.”
The AfDB's Fund gained traction in July last year after raising an initial $830 million (Sh84.77 billion) in share capital from 20 founding member states, mainly from West Africa.
Kenya is hunting for cheaper loan options after it ceased to enjoy concessional terms under the International Development Association – World Bank's lending arm for low-income countries – and the African Development Bank.
That was after it graduated to a lower middle-income economy following rebasing of her economy in September 2014.
Rotich said on January 25 the country was also keen on joining Organisation of Islamic Co-operation to access soft loans from the Islamic Development Bank.
“Once we join, we can access highly concessional financing just like we do with the World Bank," he said.
In the next financial year from July, the Treasury has proposed to cut budget for the infrastructure, energy and ICT sector by Sh30.70 billion to Sh373.97 billion from Sh404.67 in the estimates for the present year.
China remains Kenya's largest bilateral lender with a portfolio of $2.5 billion last October, according to the latest data from the Treasury, with Japan coming a distant second with $750 million.
With the strengthening of the dollar, there have been suggestions that Kenya should consider borrowing in yuan, which was on November 30 admitted into global basket of benchmark currency by the IMF comprised of the dollar, sterling pound, euro and yen.
“It will be entirely plausible for Kenya and China to want to work together in this way but I think anything will start from a low base,” PineBridge East Africa chief executive Jonathan Stichbury said on January 19.
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tralac’s Daily News selection
The selection: Tuesday, 9 February 2016
East Africa’s regional integration is in focus this week:
In Arusha: Sectoral Council of Ministers Responsible for EAC Affairs and Planning (EAC)
The 23rd Meeting of the Sectoral Council of Ministers Responsible for EAC Affairs and Planning began yesterday in Arusha. The meeting started with the Session of Senior Officials (8-10 February) to be followed by the Session of Permanent/Principal Secretaries (10-11 February). The meeting will be capped by the Ministerial Session which will take place on 12 February. Among the items on the agenda of the meeting are: a report on the implementation of previous decisions of the SCMEACP, progress reports on the status of implementation of the EAC Common Market, the elimination of non-tariff barriers, the COMESA-EAC-SADC Tripartite Arrangement and a progress report on the Study on Equitable Sharing of Benefits and Costs of EAC Integration.
In Nairobi: Intergovernmental Committee of Experts (UNECA)
Extract from the ICE background study ‘Institutions, decentralisation and structural transformation in Eastern Africa’: The pursuit of decentralisation and the need to ensure that institutions that support it are functioning is a common thread that runs through most countries in the Eastern Africa region. It is expected that gains from this endeavour will include support for structural transformation. To provide the required impetus and momentum in this respect, it is recommended that the Sub Regional Office of Eastern African develops a programme that aims to bring together Ministers in charge of decentralised units in member countries in order to discuss policy and also build their capacity in regard to the implementation dynamics of decentralisation. The programme should include collaboration with institutions such as national think tanks (say for instance, NESC in Kenya), World Bank, DFID, EAC and others that support governance initiatives.
Related: CS Mwangi Kiunjuri, at the ICE: 'Kenya losing million in revenue for allowing monopolies' (The Standard)
EAPP update: Egypt pulls out of regional power pool as it protests use of Nile Waters
Egypt has pulled out of the grand East African regional power pool until its concerns over the use of the Nile waters have been addressed. In the recent Council of Ministers' meeting in Addis Ababa held by the 10 Eastern African Power Pool countries, Egypt refused to sign and adopt the master plan for the power pool as the hydropower generation projects in Ethiopia and Sudan are on the Nile. According to Lebi Changullah, the secretary-general of the EAPP, the master plan, which has already been adopted by the member states, will be implemented despite Egypt's protest.
Tanzania: Institutional support project for good governance - phase three appraisal report (AfDB)
The expected outcomes are: (i) effectiveness in the management of public finances improved; (ii) business enabling environment improved. This will be achieved through the following output level results: (i) procurement capacity strengthened; (ii) external audit capacity enhanced; (iii) internal audit function strengthened; (iv) business registration and licensing regime modernised; (v) anti-corruption measures and capacity strengthened; (vi) capacity to implement the PPP framework developed.
Related East African postings: Annual Report on the ECA in Eastern Africa 2015 (UNECA), Rwanda getting largest amount of aid dollars per capita in EAC (The Independent), Gatuna OSBP construction begins (New Times), Intra-regional trade challenges: rules of origin are a scapegoat (New Times), Somalia launches new foreign policy after two decades of civil strife (Xinhua)
Mobile technology and trade in Sub-Saharan Africa (Commonwealth)
There have even been proposals for an ‘Aid for eTrade’ initiative, which, if carefully designed and funded to address Sub Saharan Africa’s specific priorities, could help overcome many of these challenges and accelerate the continent’s transition to the digital era and e-commerce. [The authors: Brendan Vickers, Blanca Peña-Méndez]
Kenya leads the way in mobile payments (Business Day)
Joe Mucheru, who resigned in December as head of Google Kenya to become the country’s technology minister, says that despite myriad problems — from opaque regulatory systems to the shortage of skills — the success stories are likely to continue. "Today we’ve got tens of incubators; there’s a lot of start-ups in place that are coming up with very innovative products," he says. "But they’re at their infancy. When they get to the seven-, eight-year space, they hopefully will be larger and be able to absorb a lot more capital. Then we’ll see real growth."
Related: Kenya: Roll-out of banks’ joint mobile cash transfer platform postponed (Daily Nation), African Diaspora fuels innovation in Africa (Zimbabwe Standard)
South Africa ranks 30 for worldwide innovation influence (ITIF)
The global technology think tank, Information Technology and Innovation Foundation released the data in its report, Contributors and Detractors: Ranking Countries’ Impact on Global Innovation. How does South Africa compare? South Africa and Kenya were the only African countries to have been featured. Kenya ranked at 51. South Africa’s BRICS partners ranked as follows: Brazil came in at 41, Russia 42, India 54 and China 44.
Frost & Sullivan: new 'Mega Trends in Africa' video reveals GDP growth of 4.5 trillion by 2025
SA and Nigeria: Regulatory zeal or more? (Financial Mail)
But it’s unclear from this vantage point whether Nigeria’s authorities are just acting with renewed purpose to root out illicit activities, or whether this is a politically driven campaign targeting SA companies. “There’s a general sense that regulators are taking their task more seriously, and the federal government is seeking to use this avenue to raise revenue for budgetary support,” says Derrick Mensah, a banking analyst at African Alliance. This example, as well as those of Mr Price and MTN, could prompt SA firms to put their continental ambitions on ice, or to look at other countries to enter.
Creating global mining winners in Africa (McKinsey)
The African continent delivers some of the best value in the world for every dollar spent on exploration. Even so, African mining companies have yet to fully tap the continent’s reserve potential. Using big data analysis, we found opportunities in productivity, strategy and stakeholder engagement that mining companies can use to steer their way towards world-class performance.
Extract: Africa has the luck of the geological draw. It supplies 83% of the world’s platinum, 73% of the world’s cobalt, and over half of the world’s manganese, chromium and diamonds. It is a principal commodity exporter to China, Japan, the United States and Western Europe. Given these endowments, African mining is critical to the region’s economies, and its mining companies have the potential to be world-class performers. But when we assessed their performance against global peers, we found that they have underperformed in terms of value creation. If nothing changes, the odds are that African mining companies will fall further behind the world’s leading mining companies in the decade ahead. The good news is that African mining companies have access to a range of levers to triple or quadruple their chances of becoming world-class performers. We examine their options.
TRA says cooperating in Dar port's single window project (IPPMedia)
Tanzania Revenue Authority has said it is fully cooperating with other stakeholders in establishing an electronic single window system at Dar es Salaam port that will do away with physical cargo clearance. The electronic Single Window System which was supposed to be introduced at the country’s prime port since 2010 through World Bank funding has been frustrated by a cartel of business elite, politicians and bureaucrats who are behind a loss of government revenue.
EAC closes climate unit over funding (The East African)
Ecowas parliament elects Deputy Speakers (Leadership)
ICGLR leadership contribution to stability highlighted (AngolaPress)
Mobilizing African resources for Agenda 2063 (ACBF)
Michael D. Rettig: 'West Africa's terror problem needs a regional solution' (The Hill)
Jakkie Cilliers: 'The (re)marginalisation of Africa?' (ISS)
Kenya: Local millers warn sugar imports threaten industry (Business Daily)
As EU sugar quota ends, African producers to shift sales to domestic markets (Africa Report)
UEMOA industrial production up by 7% (StarAfrica)
Botswana mulls selling power plant to Chinese contractor (StarAfrica)
Commission for Social Development: session update (UN)
Steven Radelet: 'Progress in the global war on poverty' (Christian Science Monitor)
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New Mega Trends in Africa reveals GDP growth of 4.5 trillion by 2025
Frost & Sullivan’s new video highlights challenges and opportunities, as well as macro-to-micro implications for businesses, people, and society
Urbanisation, mobility, infrastructure, natural resources, telecommunications investments and inter-regional trade are just a few of the untapped opportunities making Africa the last growth frontier. The continent is set to become the second fastest growing region by 2025, with a gross domestic product (GDP) of $4.5 trillion.
In a new video, Mega Trends in Africa, Frost & Sullivan experts and C-level executives note that Africa is the only continent that has the potential to achieve double digit economic growth within the next decade. It is expected that close to half of the continent’s population will live in large cities and that 58% of its working age population (15-64) will exist in 2025. If this trend continues for the next 20 years, Africa will have the highest labor population surpassing both China and India.
To view the video, visit: http://ow.ly/XMqqh
“The growth rates promised by Africa are second to that of South East Asia at the moment,” notes Hendrik Malan, Operations Director at Frost & Sullivan Africa. “The big advantage that Africa does have, believe it or not, is the lack of infrastructure and the lack of legacy systems because our ability to leapfrog technologies and get access to that growth much sooner than, for instance, South East Asia had the ability to do is significantly better.”
Some of the key trends revealed in the Mega Trends in Africa analysis:
Africa will have tremendous market potential for firms that are operating in the digital currency space. By the end of 2015, there will be 12 million Bitcoin wallets in Africa and nearly one-third of Kenyans will be using a Bitcoin wallet.
Online retail will grow significantly in the next 5 years and will account for nearly 7% of total retail sales in Africa in 2025. Nigeria, South Africa, Egypt, and Kenya are emerging as the top markets for online retailing in Africa.
Energy demand will grow to 930.4 MTOE in 2025, which is more than double the current demand. The mining and minerals industry will be the bulk consumers of energy by 2025. Africa will grow from its current nascent stage to an emerging renewable energy hub with a substantial compound annual growth rate (CAGR) of 8% by 2025
Africa’s trade volume is likely to grow threefold by 2030. East Africa is projected to have the highest growth in trade volume, driven by improved transportation infrastructure. The Proposed Free Trade Area (T-FTA) between South African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA) and East African Community (EAC) is expected to drive imports by an average of 60% by 2020.
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WTO Committee on Agriculture: Implementation of the NFIDC Decision concerning food aid
Monitoring of the follow-up of the Decision on Measures Concerning the Possible Negative Effects of the Reform Programme on Least-Developed and Net Food-Importing Developing Countries
In 1995, the Committee on Agriculture established notification requirements under which donor Members are required to submit data on food aid donations (quantity and concessionality) as well as information on technical and financial assistance and other relevant information on actions taken within the framework of the Decision on Measures Concerning the Possible Negative Effects of the Reform Programme on Least-Developed and Net Food-Importing Developing Countries (NFIDC Decision).
The annual monitoring of the follow-up to the NFIDC Decision in accordance with Article 16 of the Agreement on Agriculture and under paragraph 18 of the Working Procedures of the Committee is an important element in the work of the Committee. It is undertaken on the basis, inter alia, of the Table NF:1 notifications.
Table NF:1 notifications are required by all donor Members in respect of actions taken within the framework of the NFIDC Decision. Annex 1 summarizes the record of Members’ Table NF:1 notifications for the implementation years 1995 to 2014. The list of notifying Members include signatories of the Food Aid Convention as well as other Members that have in the past identified themselves as food aid donors in their Table NF:1 notifications.
In April 2008, following the rise in global food prices and the crisis it triggered, the United Nations (UN) Chief Executives Board established a High-Level Task Force (HLTF) on the Global Food Security Crisis. The WTO is represented on the HLTF and has participated in its deliberations since its inception. The Task Force encourages a comprehensive approach to food security – availability, access, stability and utilization. On the occasion of the November 2010 annual monitoring exercise, Mr David Nabarro, Task Force Coordinator, was invited to an information session to address WTO Members, observer governments, and Secretariat staff, about the role and activities of the HLTF. Since 2013, the HLTF has oriented its work to support the Zero Hunger Challenge (ZHC). In the aftermath of the global food crisis of 2007/2008, the Committee on World Food Security (CFS) was reformed at its 35th Session in October 2009. The reforms envisage that the CFS becomes an inclusive international and intergovernmental platform dealing with global food security and nutrition.
Global actions to address food insecurity in general, and food price volatility in particular, were also adopted within the G-20 framework. Recognizing the importance of timely and accurate market and policy information and transparency towards meeting the challenges posed by price volatility the G-20 agriculture ministers agreed to launch the Agriculture Market Information System (AMIS) with a view to encourage policy dialogue and coordination of policy responses, and to build data collection capacity in participating countries. The AMIS Secretariat is housed in the FAO and other international organizations including the WTO contribute to the System.
Provisions of the NFIDC Decision and Implementation
The NFIDC Decision states:
“Ministers recognize that the progressive implementation of the results of the Uruguay Round as a whole will generate increasing opportunities for trade expansion and economic growth to the benefit of all participants.” (paragraph 1 of the NFIDC Decision)
“Ministers recognize that during the reform programme leading to greater liberalization of trade in agriculture least-developed and net food-importing developing countries may experience negative effects in terms of the availability of adequate supplies of basic foodstuffs from external sources on reasonable terms and conditions, including short-term difficulties in financing normal levels of commercial imports of basic foodstuffs.” (paragraph 2 of the NFIDC Decision)
The other four paragraphs of the NFIDC Decision contain a number of specific agreements in the areas of food aid, technical and financial assistance, differential treatment within the framework of any agreement on agricultural export credits, and a provision regarding access to the resources of the international financial institutions. In the following sections, these paragraphs are taken up one by one and supplemented by information available to the Secretariat regarding their implementation.
Developing country Members eligible as beneficiaries within the framework of the NFIDC Decision have regularly emphasized the need of an effective implementation of the Decision. During the 2014 NFIDC annual monitoring discussions, the Africa Group urged Members to improve the implementation of the NFIDC Decision so as to achieve its intended objectives. On that occasion some Members also emphasized the importance of establishing strong disciplines in the area of export competition in general and international food aid in particular.
At the tenth Ministerial Conference of the WTO (MC-10) at Nairobi, Ministers reaffirmed their commitment to fully implement the NFIDC Decision. WTO Ministers at MC-10 simultaneously also adopted the Decision on export competition which states that nothing in this Decision can be construed to diminish in any way the existing commitments contained in the NFIDC Decision nor shall the monitoring and review of the latter be affected.
Food Aid
In light of paragraphs 1 and 2 of the NFIDC Decision quoted above,
“Ministers accordingly agree to establish appropriate mechanisms to ensure that the implementation of the results of the Uruguay Round on trade in agriculture does not adversely affect the availability of food aid at a level which is sufficient to continue to provide assistance in meeting the food needs of developing countries, especially least developed and net food-importing developing countries.” (chapeau to paragraph 3 of the NFIDC Decision)
The MC-10 Decision on export competition also includes disciplines on international food aid. In the context of the thrust of the NFIDC Decision on the availability and adequacy of food aid, the Decision on export competition in relation to international food aid disciplines says:
“Members reaffirm their commitment to maintain an adequate level of international food aid, to take account of the interests of food aid recipients and to ensure that the disciplines contained hereafter do not unintentionally impede the delivery of food aid provided to deal with emergency situations.”
Members, as a part of the MC-10 Decision on export competition, also agreed to review the provisions on international food aid contained therein within the regular Committee on Agriculture monitoring of the NFIDC Decision.
Review of Food Aid Levels and initiation of Food Aid Negotiations
In order to work towards the objective enunciated in the chapeau of paragraph 3 of the NFIDC Decision, Ministers agreed:
“(i) to review the level of food aid established periodically by the Committee on Food Aid under the Food Aid Convention 1986 and to initiate negotiations in the appropriate forum to establish a level of food aid commitments sufficient to meet the legitimate needs of developing countries during the reform programme [...]” (paragraph 3(i) of the NFIDC Decision)
Review of food aid levels
The Food Aid Conventions remained in operation from 1967 to 2012 in a long series of multilateral co-operation instruments. The commitments of donor countries under the Food Aid Conventions were specified in terms of minimum annual contributions and provided a safety net in terms of international food aid availability. Under the Food Aid Convention 1999, the latest in a series of such Conventions, the combined minimum annual volume and value commitments of donor members stood at 4.8 million tonnes (in wheat equivalent) and EUR 130 million.
The Food Aid Convention, 1999 expired on 30 June 2012. On 1 January 2013, a new Food Assistance Convention (FAC) came into effect. The FAC expands the traditional focus of previous Food Aid Conventions and includes all forms of food assistance (in-kind donation of eligible products, cash transfers, cash-based or commodity-based vouchers, as well as nutritional interventions) towards meeting the needs of the most food insecure and vulnerable populations. Each donor country, party to the FAC, assumes annual commitment of food assistance (i.e. the “minimum annual commitment”) in terms of value or quantity or a combination of both to be notified to the FAC Secretariat. The annual commitments of the parties who have ratified, accepted or approved the FAC are as set out below.
The food aid shipments by donors under the Food Aid Convention often exceeded their combined minimum annual commitments. For example, food aid shipments in 2011/2012, as reported by the International Grains Council (IGC), totalled 5.7 million tonnes in wheat equivalent, representing a 4% decrease from the previous year. Similarly under the new Food Assistance Convention (FAC), the donors have consistently fulfilled their annual FAC commitments. The annual commitments of FAC donors in 2014 exceeded USD2.7 billion which were fulfilled by all donors and in many cases these commitments were comfortably exceeded.
There are a number of other sources of food aid data, particularly the Food and Agriculture Organization (FAO) and the World Food Programme (WFP). Data from these sources are not directly comparable with data reported by donors under the Food Aid Conventions mainly due to differences in country and product coverage, reporting period, and the use of delivery rather than shipment data.
WFP data show that global food aid deliveries present a cyclical pattern, with a record of 17.3 million tonnes reached in 1993.32 Another peak was reached in 1999 when food aid totalled 14.6 million tonnes. In this context, the Doha Ministerial Conference approved the following recommendation made by the Committee on Agriculture:
“WTO Members which are donors of food aid shall, within the framework of their food aid policies, statutes, programmes and commitments, take appropriate measures aimed at ensuring: (i) that to the maximum extent possible their levels of food aid to developing countries are maintained during periods in which trends in world market prices of basic foodstuffs have been increasing […].”
Chart 1 shows that total food aid deliveries as monitored by WFP have been generally following a declining trend over the last ten years.34 In 2014, global food aid deliveries were 2.8 million tonnes, comparable to an almost similar amount recorded in 2013, representing, however, a decline of more than 40% from the level in 2012. In 2014, the amount of total food aid to LDCs amounted to 1.7 million tonnes, whereas the corresponding amount channelled to NFIDCs equalled 0.4 million tonnes. In cases of some recipients, a decline in food aid amounts in 2013 and 2014 may have also resulted from an improved domestic food production especially of cereals, increased commercial imports and a declining share of food aid in total imports as well as a lessening of severity in some cases of the previous food emergency situations. Annex 2 gives a detailed breakdown of food aid deliveries by recipients during the period 2005-2014 as monitored by WFP. In absolute terms, Ethiopia, Syria, Pakistan, Sudan, South Sudan, Yemen, Kenya and Bangladesh were the major recipients of food aid in 2014.
According to WFP data, NFIDCs on the WTO list except for Antigua and Barbuda, Bolivarian Republic of Venezuela, Botswana, Gabon, Grenada, Dominica, Morocco, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines and Trinidad and Tobago have been occasional or regular recipients of food aid during the period 2005-2014. In terms of the food aid quantity, declining food aid deliveries to Kenya and Pakistan have been responsible for the decrease in total food aid channelled to NFIDCs over the recent period.
LDCs continue to be the major recipients of global food aid receiving more than 60% of global food aid deliveries in 2014. Among LDCs, Ethiopia, Sudan, South Sudan, Yemen and Bangladesh were the major recipients of food aid in 2014.
WFP statistics are compiled based on the following three food aid categories:
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Emergency food aid – defined by WFP as being destined to victims of natural or manmade disasters – is freely distributed to targeted beneficiary groups, and is usually provided on a grant basis. It is channelled multilaterally through NGOs or, sometimes, bilaterally.
-
Project food aid aims at supporting specific poverty-alleviation and disaster-prevention activities. It is usually freely distributed to targeted beneficiary groups, but may also be sold on the open market and is then referred to as “monetized” food aid. It is provided on a grant basis and is channelled multilaterally through NGOs or bilaterally.
-
Programme food aid is usually supplied as a resource transfer for balance of payments or budgetary support activities on a government-to-government basis. Unlike most of the food aid provided for project or emergency purposes, it is not targeted to specific beneficiary groups. It is sold on the open market, and provided either as a grant or as a loan.
WFP statistics compiled in Chart 2 below indicate that emergency food aid provided in the form of relief in response to man-made emergencies or natural disasters remained the predominant category in 2014 accounting for 77% of total food aid deliveries. On the other hand, programme food aid, which accounted for 14% in 2005, has declined dramatically with its share becoming negligible in 2014. The share of project food aid has generally been consistent in the range of 23%.
Food aid may be distributed directly to beneficiaries or may be partly or fully sold in the recipient country to generate funds to finance, for example, the transport of food or other activities. Programme food aid is usually sold in the market. WFP data shows that over the last ten years (2005-2014), the amount of global food aid deliveries sold in market has been generally declining. This may in turn be resulting from shrinking share of programme food aid in the global food aid deliveries that is more usually sold on the market unlike most of emergency food aid distributed directly to beneficiaries.
WFP also categorizes food aid deliveries according to the origin of the food aid commodities:
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Local purchases are the transactions by which food aid is purchased and distributed/utilized in the recipient country.
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Triangular purchases are the transactions by which a donor provides commodities purchased in a third country as food aid to a final recipient country.
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Direct transfers are the transactions by which food aid is directly delivered from donor to recipient countries. Such operations do not involve either local or triangular purchases.
Over the last 10 years (i.e. 2005 to 2014), the share of direct transfers in global food aid deliveries has declined from 69% to 50%, while the respective shares of local purchases and triangular transactions increased from 14% to 29%; and from 18% to 22%.
Initiation of food aid negotiations
In 1996, the Singapore Ministerial Conference adopted the recommendation by the Committee on Agriculture that in anticipation of the expiry of the Food Aid Convention 1995 and in preparation for the re-negotiation of the Food Aid Convention, action be initiated in 1997 within the framework of the Convention, under arrangements for participation by all interested countries and by relevant organizations, to develop recommendations with a view towards establishing a level of food aid commitments, covering as wide a range of donors and eligible products as possible, which is sufficient to meet the legitimate needs of developing countries during the reform programme.
Between January 1997 and March 1999, several meetings took place within the framework of the Food Aid Convention, including meetings with least-developed and net food-importing developing countries as well as potential new food aid donors. In December 1997, the Food Aid Committee decided to open the Convention for renegotiation taking into account, amongst other things, “the food security and trade liberalization objectives under the WTO and the World Food Summit Action Plan”. In early 1998, the Food Aid Committee confirmed its intention to bring a new Food Aid Convention into effect and held a further dialogue with representatives of food aid recipients regarding the main elements of the new Convention. The negotiations were completed on 24 March 1999 and the new Convention provisionally entered into force on 1 July 1999 for an initial duration of three years. Document G/AG/GEN/35 outlines the major changes introduced in the Convention. For example, the list of eligible products which may be supplied was broadened significantly beyond cereals; new provisions were included to improve the effectiveness and the impact of food aid. When allocating food aid, FAC members undertook to give priority to the LDCs and low-income countries, many of which are on the present WTO list of NFIDCs. Other eligible food aid recipients include low middle income countries and all other countries included in the WTO list of NFIDCs at the time of negotiation of the new Convention.
At the Doha Ministerial Conference, Ministers approved the recommendation of the Committee:
“[…] that early action be taken within the framework of the Food Aid Convention 1999 (which unless extended, with or without a decision regarding its renegotiation, would expire on 30 June 2002) and of the UN World Food Programme by donors of food aid to review their food aid contributions with a view to better identifying and meeting the food aid needs of least-developed and WTO net food-importing developing countries”. (G/AG/11, Part B paragraph 3 I(a) refers)
The Food Aid Convention 1999 was to expire on 30 June 2002. Initially, the Food Aid Committee agreed to extend it year after year. In June 2004, it decided to undertake its renegotiation with the aim of bringing into effect a “more effective instrument to provide food to those identified needs when food aid is the most appropriate response”. Furthermore, in view of the relationship between the review process in the Food Aid Committee and negotiations underway in the WTO, the Food Aid Committee decided that conclusive recommendations should await the outcome of the WTO negotiations. In these circumstances, the Food Aid Convention 1999 continued to be extended on an annual basis while informal deliberations were pursued between its members. At its 103rd Session, the Food Aid Committee launched the formal renegotiation process. The new Food Assistance Convention (FAC) was adopted on 25 April 2012. It was opened for signature on 11 June 2012 and entered into force on 1 January 2013.
The FAC expands the scope of FAC donors’ food assistance commitments beyond food and seeds. Some of the principles of the FAC include a focus on food assistance effectiveness and accountability, involvement of beneficiaries in the needs assessment, and an enlarged list of “eligible products” and “eligible activities” (including the provision of cash and vouchers and nutritional interventions). It addresses both short-term emergency assistance as well as long-term rehabilitation and development objectives. Article 3 of the FAC sets out the relationship between its provisions and the existing or future WTO rules, particularly on international food aid. The Decision on export competition adopted at MC-10 at Nairobi includes specific disciplines on international food aid. Some of these food aid disciplines in the MC-10 Decision also make a reference to the FAC.
Concessionality of Food Aid
To the end stated in the chapeau of paragraph 3 of the NFIDC Decision, Ministers also agreed:
“(ii) to adopt guidelines to ensure that an increasing proportion of basic foodstuffs is provided to least-developed and net food-importing developing countries in fully grant form and/or on appropriate concessional terms in line with Article IV of the Food Aid Convention 1986 […]”. (paragraph 3(ii) of the NFIDC Decision)
Under the Food Aid Convention 1999, all food aid provided to LDCs was to be in the form of grants and to represent at least 80% of members’ contributions. Similarly, under the Food Assistance Convention (FAC), no less than 80% of a party’s committed food assistance to eligible countries and vulnerable populations41 shall be in fully grant form. Donors are to seek to exceed progressively this percentage.
At the Doha Ministerial Conference, Ministers approved the recommendation that:
“WTO Members which are donors of food aid shall, within the framework of their food aid policies, statutes, programmes and commitments, take appropriate measures aimed at ensuring: […] (ii) that all food aid to least developed countries is provided in fully grant form and, to the maximum extent possible, to WTO net food-importing developing countries as well”. (G/AG/11, Part B paragraph 3 I(b) refers)
The issue of food aid to be in fully grant form also came up frequently in the NFIDC annual monitoring discussions. Members’ Table NF:1 notifications include information on the level of concessionality of the respective food aid deliveries to LDCs and NFIDCs. Most notifying Members have notified the provision of food aid to the countries concerned in fully grant form. In the case of the United States, the proportion of food aid in fully grant form ranged between 83% to 100% during 1995/1996-2002/2003, with the remainder being provided in accordance with the relevant FAC guidelines. For reporting years 2003/2004-2007/2008, the United States indicated in its notification that: “Title I aid is provided in fully grant form or on long-term concessional terms in accordance with Food Aid Convention guidelines. Aid under Food for Education, Title II, Title III, Food for Progress and Section 416(b) Programs is provided in fully grant form.”
In the agriculture negotiations under the “export competition” pillar on the theme of international food aid, Members specifically considered the question of providing food aid exclusively in fully grant form. The Decision on export competition adopted at MC-10 at Nairobi requires Members to ensure that all international food aid is in fully-grant form.
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‘Mining is the legacy of apartheid’
Twenty-two years after the election of the first democratic state and 13 years after a new mining regime was legislated in South Africa, the community of Mapela, on the outskirts of Mokopane in Limpopo, are still trapped in a system that has by most accounts continued the legacy of apartheid and dispossession well after the promised liberation from an oppressive yolk.
ActionAid SA’s preliminary research report, Precious Metals II: A systemic Inequality, argues that this reality is not an oversight or merely the slow maturation of a long-term liberation project, but rather a systemic crisis which permeates out from the very mechanisms and institutions introduced to overcome the inequality of the past.
The report seeks to answer the question of why those who used to harvest and eat, are today less secure, more vulnerable and increasingly unable to claim their human rights.
The study was initiated by ActionAid as a follow-up to the study done in the villages of Mokopane in 2008. During that study, ActionAid found a number of human rights violations against the people of Mapela villages, who live in the shadows of the most profitable platinum mine in the world – Anglo Platinum’s Mogalakena Mine. The Mapela community find themselves at the centre of a systemic crisis that has denied them access to livelihoods, increased their food insecurity, limited their access to vital water and trampled on their heritage, all in the name of progress and profit.
Protracted battle
The communities here have been engaged in a protracted battle of attrition with Anglo Platinum for almost a century. Johannesburg Consolidated Investments bought the farms in 1926, with the first forcible removals occurring in the late 1960s. By the time South Africa became a democracy, Anglo was preparing to intensify its extraction from the area. By 2002 it had opened a second pit and by 2007 a third.
The aggressive expansion by Anglo saw about 1 000 families, more than 7 000 people, relocated between 2006 and 2015. This happened alongside the introduction of a new mining regime initiated by a democratic government under some of the most progressive human rights standards in the world.
However, from its earliest conception as a White Paper, the new mining regime, which was later to become the Mineral Petroleum Resources Development Act of 2002, paid scant attention to the bearers of mining’s negative impacts: the host communities.
The fight by mining-affected communities and civil society to bring the rights of communities to the centre of mining legislation has been mostly marked by small gains and many reversals.
The last version of the act, which was approved by the National Assembly in 2014, and rushed through the Council of Provinces with no consultations with communities, further seeks to limit the scope of community involvement and to render community voices in regulating mining impotent.
It was at the insistence and threat of a constitutional challenge by the national network of mining affected communities, Mining Affected Communities United in Action, that the President, Jacob Zuma, was compelled to send the bill back to the National Assembly for broader community consultation. This bill has still not been processed and the mining regime remains in limbo while communities face increasing food insecurity among a host of human rights violations.
As a response to the study, and following an investigation by the South African Human Rights Commission, Anglo Platinum accused ActionAid SA of producing the report from a “particular ideological standpoint”.
In response to the report, the Human Rights Commission, in its own report on the human rights situation facing the communities of Mapela, saw its then-chairman, Jody Kollapen, argue that the “impact of business can... not always be determined at one point in time like a snapshot, but is often more accurately reflected over a period of time”.
There are concerns on current engagement by the commission following protests over 10 days in September 2015 which effectively shut down the Angloplat Mogalakwena Mine. There has been a denial of community agency, and there is mistrust between community groups and the commission.
Perceptions of collusion between Anglo and the commission exist and there are expressions of no faith in the commission to resolve the long-standing dispute with Anglo, as it previously intervened in 2008/09 and again in 2012, and promises were made but no resolution found.
Report
As with previous “task teams”, for example, the one proposed here was offered stipends and possible roles and positions in a new R5 million Anglo project under Project Alchemy. The Mapela/Langa executive committee refused to participate. Anglo then funded a “leadership training workshop” organised by the Human Rights Commission last year, but this did not have any leadership training component, and was experienced more as a negotiation around community demands.
This was, in itself, a violation of the community’s trust.
In another engagement, ActionAid asked the Society Work and Development Institute of the University of Witwatersrand to provide an account of the impacts of Anglo’s operations on the communities of Mokopane. The report also investigated the efforts by local communities to defend and reclaim their rights in the face of mining expansion. Evidence suggests that many people in the study villages have lost access to land as a result of mining, particularly ploughing fields and grazing land.
In the villages located close to the mine, there are strong complaints about the environmental impacts of the mine. There is serious concern around air pollution, damage to houses and intermittent water.
Many equate this challenge with the impact of the mine, which also relocated families in 2007, separating them from the graves of their loved ones.
As a result, many members of the families relocated feel displaced and culturally violated.
Our findings also suggest that relocation has led to the marginalisation of other social categories, particularly the youth and women.
ActionAid SA invited Dr Sarah Malotane Henkeman, an independent conflict and social justice practitioner, and a senior staff associate of the Centre of Criminology in the Faculty of Law at the University of Cape Town, to test our assumptions.
She agreed that there is a case to be made for a combination of symbolic violence, structural violence, and structural human rights violations; and how this combination of factors play out in the everyday, lived experiences of people in Mokopane.
Meanwhile, there are concerns too about the Social and Labour Plan system, together with broad-based black economic empowerment schemes under the Mining Charter – the main mechanism by which the mines are to channel the proceeds of mining into benefits for the community and the transformation of society generally.
The failure of BBBEE to transform mining ownership patterns is currently a bone of contention between the minister of minerals, the Chamber of Mines and various other parties before the Gauteng High Court. The question before the court revolves around the “once empowered always empowered” claims made by the mining houses and which is contested by the Department of Mineral Resources and the minister as well as by a host of civil society formations.
The legal definition of “once empowered always empowered” aside, the question remains as to what extent has BBBEE served to bring about “substantial equality”.
The research currently under consideration suggests that this remains an elusive reality.
Christopher Rutledge is the mining and extractives co-ordinator of ActionAid SA. The views expressed here do not necessarily reflect those of Independent Media.
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Egypt pulls out of regional power pool as it protests use of Nile waters
Egypt has pulled out of the grand East African regional power pool until its concerns over the use of the Nile waters have been addressed.
In the recent Council of Ministers’ meeting in Addis Ababa held by the 10 Eastern African Power Pool (EAPP) countries, Egypt refused to sign and adopt the master plan for the power pool as the hydropower generation projects in Ethiopia and Sudan are on the Nile.
The 10 countries are Burundi, Democratic Republic of Congo, Egypt, Ethiopia, Kenya, Rwanda, Sudan, Tanzania, Libya and Uganda.
According to Lebi Changullah, the secretary-general of the EAPP, the master plan, which has already been adopted by the member states, will be implemented despite Egypt’s protest.
“I don’t think Egypt’s refusal to sign the document will affect the implementation of the master plan because it has been approved by the rest of the members,” said Mr Changullah, adding that the countries relying on the Nile are independent and have signed a treaty with Egypt on equitable use of the Nile waters.
“Egypt’s concerns on the River Nile will be addressed by the Nile Initiative, but that will not stop countries from proceeding with their plans,” he added.
The regional power pool master plan adopted by the other nine countries will be the guiding tool for regional power integration for the next 25 years.
Implementation
As per the master plan, power interconnection lines will be implemented between 2016 and 2017 and will be commissioned by 2020. The lines include Sudan-Ethiopia; Rwanda-Tanzania; Uganda-South Sudan and Uganda-Kenya. The Libya-Egypt and Egypt-Sudan interconnections will wait until Egypt’s concerns are addressed.
Egypt, which relies almost exclusively on the Nile for farming, industry and domestic use, is opposed to the construction of Ethiopia’s Grand Renaissance Dam on the Nile as it will significantly cut the flow for its rapidly increasing population.
About 55 per cent of the 6,000MW dam is being built by Italy’s largest construction firm, Salini Impregilo Spa. Egypt’s main concern since construction of the dam started in 2011 is its high storage capacity, which reaches 74 billion cubic metres, and how this will affect its national water security.
The EAPP master plan identifies power interconnection and generation in the member states and the countries have accepted the resolutions except Egypt, which is a member of the North African association of power utilities – the “Comité Maghrébin de l’Electricité (COMELEC)” – which was established in 1989.
Under the master plan, a number of transmission and generation projects have been identified as key to the integration of the power sectors in the EAPP, according to sources.
This means that EAPP countries will have their power lines connected to the larger power pool, whose headquarters will be in Addis Ababa.
Funding
The EAPP is being supported by the US government, the World Bank, the African Development Bank, and the region’s governments.
Under the Tripartite Free Trade arrangement, a regional power market linking EAPP and the Southern Africa Power Pool (SAPP) is envisaged. It is estimated that about a quarter of the electricity generated in EAPP countries comes from hydropower, with future investments creating a greater dependence on the resource.
The power interconnections between Ethiopia, Kenya, Uganda, Rwanda and Tanzania are expected to be complete in three years. Under the EAPP, a high-voltage line between Ethiopia and Kenya will be ready in 2017, a Kenya-Uganda link will be complete by the end of 2016, and a Kenya-Tanzania connection will be ready in 2018.
Relies on renewable energy
The Kenya-Ethiopia link will be a 500 kilovolt (kV) line, while the lines to Uganda and Tanzania will be 400kV. The line to Uganda will connect to Rwanda and Burundi.
Kenya, which relies heavily on hydropower, geothermal and other renewable energy sources, plans to expand installed capacity to 6,700MW by 2017, from about 2,500MW currently. Tanzania aims to double generation to 3,000MW by 2016.
Ethiopia aims to become a major power exporter through large new dams and other renewable energy projects. By 2020, it aims to add 12,000MW to its grid.
Other African regions like West Africa have already connected their grids. Southern Africa has a series of links between South Africa, Zambia, Zimbabwe and Mozambique, allowing the countries to trade power.
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Creating global mining winners in Africa
The African continent delivers some of the best value in the world for every dollar spent on exploration. Even so, African mining companies have yet to fully tap the continent’s reserve potential. Using big data analysis, we found opportunities in productivity, strategy and stakeholder engagement that mining companies can use to steer their way towards world-class performance.
Africa has the luck of the geological draw. It supplies 83 per cent of the world’s platinum, 73 per cent of the world’s cobalt, and over half of the world’s manganese, chromium and diamonds. It is a principal commodity exporter to China, Japan, the United States and Western Europe. Given these endowments, African mining is critical to the region’s economies, and its mining companies have the potential to be worldclass performers. But when we assessed their performance against global peers, we found that they have underperformed in terms of value creation. If nothing changes, the odds are that African mining companies will fall further behind the world’s leading mining companies in the decade ahead.
The good news is that African mining companies have access to a range of levers to triple or quadruple their chances of becoming world-class performers.
Introducing the Power Curve
To gauge the performance of 65 publicly listed African mining companies, we compared their economic profit performance to the world’s top 3,999 companies, all of which compete for the same capital. By ranking companies this way, we produce what we term “the power curve” of economic profit. The power curve suggests that the world of corporate value creation is far from even: 20 per cent of companies at the top generate 90 per cent of the economic profit; 60 per cent in the middle meet their cost of capital; and 20 per cent at the bottom of the curve make large economic losses.
An industry view suggests that African miners do not perform well when compared to their global peers. In the first half of the 2000s, African companies were ahead of their global peers in terms of economic profit. In 2005, African companies started falling behind. The precise reasons for the change were not immediately obvious. Besides favourable geography, invested capital has actually grown over time. But ROIC has been below average and declining.
While it is good to know how the current performance of African mining companies compares to that of the world’s best corporations, a more interesting question is: How can African mining companies improve their odds of moving up the power curve of economic profit? Our analysis aims to deliver a fact-based answer to this question.
In examining the global data set, we found that, on average, only one in 10 companies move from the middle to the top of the curve over a decade.
We then used “big data” analytics to understand how companies can boost their odds of scaling the power curve, in other words, what they can do to beat the average. We found that ten attributes matter, and they can be grouped into three categories:
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Endowment: A company’s profile today, measured as its size and headroom to fund growth
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Trends: The industry and geographic tailwinds and headwinds that can propel a company up and down the power curve
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Moves: The big strategic moves that companies can make to improve performance or shift their corporate portfolio towards tailwinds
Our analysis suggests that African mining companies can boost their odds of moving up the power curve by a multiple of three or four if they make bold moves.
The time for action is now, and by taking action now, we believe that the odds for the future of African mining companies will be on track as one of the most attractive regions for mining globally.
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US to raise stakes in African power
President Barack Obama is close to signing into law a Bill that would mean more United States government involvement in helping to provide electricity in sub-Saharan Africa
“It is a direct response to the fact that today 600 million people living in sub-Saharan Africa – that is 70% of the population – do not have access to reliable electricity,” House of Representative Foreign Affairs Committee Chairman Ed Royce of California said last week.
The Bill will provide a framework for a major public-private partnership between the US and sub-Saharan African countries to help millions of people gain access to reliable electricity. It now goes to President Barack Obama for his signature on the Electrify Africa Act.
During debate on the Bill on the House floor last week members from both major political parties pointed out that without reliable electricity, millions of people in Africa cannot use tools necessary for modern life, such as lights, cellphones and computers. They cannot refrigerate foods or medicines.
Royce said the lack of electricity drives some families in sub-Saharan Africa to use charcoal and other toxic fuels, which cause more deaths than HIV/AIDS and malaria combined.
Royce also said the high cost of energy in sub-Saharan Africa makes producing goods for export almost impossible, and that it is the United States’ interest to help Africa become one of the world’s great trading partners.
Royce, a Republican, has worked with ranking Democratic member Eliot Engel of New York and others to push the legislation through both the House and the Senate since 2014. The bill directs the president to establish a multi-year strategy to assist countries in sub-Saharan Africa in implementing national power strategies with a mix of energy solutions, including renewable energy sources.
Obama and the ambassadors from 35 African countries support the partnership.
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Mobilizing African resources for Agenda 2063
A question of capacity
Discussions for the UN Agenda 2030 have set high expectations for domestic resource mobilisation as a self-sustaining development finance strategy. Agenda 2063 is a roadmap for structurally transforming Africa over 50 years, and emphasises the importance of domestic resource mobilisation for a successful implementation of the continental development blueprint.
Why then do African countries do not mobilise enough domestic resources to finance their development? The response is clearly linked to insufficient human, institutional and organisation capacity to mobilise and utilise domestic resources to finance Africa’s development agenda.
Domestic resource mobilisation can potentially support the legitimacy of the state and enhance accountability between the state and its citizens; and increase “ownership” of the development process.
Domestic resource mobilisation can help:
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Reduce Africa’s dependence on external flows, thereby lowering one of the sources of damaging volatility in resource availability, and minimizing vulnerability to external shocks;
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Give African countries greater policy space, increasing their ownership of the development process as well as strengthening their State capacity; and
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Create important positive externalities and send positive sign to donors and investors, thereby augmenting external resource inflows.
The financing of Agenda 2063 has hardly been examined, and the question also remains of who will finance the Agenda 2030 set out in the UN Sustainable Development Goals?
To finance its own development and the various national and continental programs, African countries need to strengthen their capacities for domestic resource mobilisation.
For instance, it is assumed that by strengthening the capacity for domestic resource mobilization, Africa will be able to efficiently mobilise and utilise the annual investment of US$ 93 billion required over the next decade to close its infrastructure gap, recruit the 3.8 million teachers needed within five years to achieve universal primary education, and bear the cost of halving the number of people living in extreme poverty which is estimated to be US$ 4.2 billion for sub-Saharan Africa.
Scaling up
Capacity, in its various dimensions, is still a challenge for Africa not just for domestic resource mobilisation. The Africa Capacity Index (ACI) 2015 shows that the bulk of African countries have ‘medium capacity’ (73.3% of the 45 surveyed countries). While only 17.8% of the countries are in the bracket of ‘high capacity’, 8.9% are in the ‘low capacity’ bracket. The ACI measures policy environment, processes of implementation, development results at country level, and capacity development outcomes.
Countries have acute capacity needs for scaling-up domestic resources mobilisation. The majority of countries among 45 surveyed expressed high needs for capacity building in four key areas: collecting revenue, strengthening the financial sector, fighting corruption, and curbing illicit financial flows.
More efforts can be done as in terms of tax collection. 27 out of 47 have a tax effort index below 1 and among the low effort countries are several resource rich countries such as Algeria, Angola, Chad and Nigeria. Although they could increase their tax revenues from direct and indirect taxes, it is quite possible that the availability of resource rents is distorting the incentive to make more effort.
Institutional and human capacity imperatives for scaling-up domestic resource mobilisation
In addition to the rules and regulations, the capacity of institutions in the domestic resource mobilization chain must be reinforced to increase domestic resource mobilisation. Moreover, there is need to foster visionary leadership, change mindset and address other soft capacities.
With the right strategies, scaling-up domestic resources mobilization is possible as illustrated by the success stories documented in the Africa Capacity Report 2015. Fiscal resource mobilisation is the area with the most visible programs and notable successes: Morocco, South Africa, Zambia and Zimbabwe are exemplars. But efforts have been lopsided in favor of fiscal-resource pooling while little or nothing has been done for better managing fiscal expenditure.
Far-reaching success will be achieved only if resource pooling and expenditure are viewed as two sides of the same coin. A serious gap also remains in demonstrating the efficient use of fiscal resources for service delivery.
All stakeholders have a role to play for effective domestic resource mobilization and utilization in Africa. Beside the governments, the private sector, civil society, judiciary and parliaments have a crucial role to play in building capacity for domestic resource mobilisation. The private sector, which includes both domestic and foreign entities, is critical through mobilisation of private savings and corporate social responsibility.
Building capacity for the future
Building on its 25 years’ experience in capacity building in Africa, the Africa Capacity Building Foundation (ACBF) is considering domestic resources mobilisation training programs.
ACBF is already planning with the Economic Commission for Africa to develop domestic resource mobilisation capacity building program on the continent. For such a program to succeed, there is clearly a need of political and financial support from African governments, donor partners and development stakeholders.
The views and opinions expressed in this paper are the reflections of the contributors. They do not necessarily reflect the official position of the ACBF, its Executive Secretary, Board of Governors, its Executive Board, or management.
The Africa Capacity Building Foundation (ACBF) supports capacity building initiatives in Africa through investments in capacity building institutions, technical assistance for capacity building projects and programs to formulate, implement and monitor policies at national and regional levels and Knowledge and learning activities.
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Environmental laws to be better upheld
Representatives of mining communities have called for mine executives to be sued in their personal capacity for environmental damage done to communal land.
The representatives told the Alternative Mining Indaba in Cape Town yesterday that the government also needed to step up its implementation of Social and Labour Plans (SLPs).
Delegates heard that even though the litigation process was expensive and protracted, it had become an important strategy to improve the livelihoods of mining communities.
Matome Kapa, an attorney at the Centre for Environmental Rights, said mining companies were failing to adhere to environmental legislation and the government had failed to enforce environmental laws.
“We have now begun a strategy for communities to sue mining companies for infringing environmental laws. Laying criminal charges was not an easy process,” Kapa said, adding that a R10 million fine could be levied against the company and its directors.
In a landmark court ruling, the mining director of Blue Platinum Ventures in Tzaneen became the first mining boss to be found guilty of breaking environmental laws in 2014.
Traditional healers in Madimatle mountain, near Thabazimbi, have been up in arms over a decision by Aquila Steel to drill 200 holes, construct 33km of road and clear vegetation on the mountain without governmental consent.
They approached the Centre for Environmental Rights, Kapa said.
“Charges were laid in May. Laying criminal charges sounds like an easy process. But in order to lay charges, two of our advocates went to Thabazimbi because police don’t have the capacity to deal with environmental laws. There are a limited number of advocates in the National Prosecuting Authority that deal with environmental issues,” Kapa said.
“Laying of criminal charges could be one of the ways to make companies liable. If more criminal charges (were laid) people will demand for state advocates to focus on environmental rights. This will build capacity for the government.”
Implementation of the SLPs still remained a weakness, the delegates heard.
SLP failure
The SLPs, meant to address the legacy of apartheid, were not catering for communities, said Louis Snyman, an attorney and member of the Wits University’s Centre for Applied Legal Studies.
He blamed mining houses for failures in the implementation of the law, citing a draft study of 50 SLPs completed by the university last year.
“After the Marikana massacre we found SLPs are not being fulfilled. Normal people cannot access information. It is cumbersome, and expensive for communities to do so.”
Anglo Platinum chief executive Chris Griffith said it had consulted extensively but could not find a single voice that represented communities.
“Every day we consult with communities but there are splinter groups that flare up like firecrackers. We cannot engage with different people every day,” Griffith said.
7th Alternative Mining Indaba
Background
The Alternative Mining Indaba (AMI) is a space that was created in 2010 especially for communities affected by extractive industries and ordinary citizens to articulate the challenges posed in their day to day lives by the sector in terms of human rights and socio-economic growth. The main objective was to provide an international platform for affected communities and broader civil society organizations (including National Christian Councils and inter faith groups) to share experiences, mobilize, as well as motivate mining communities to strengthen their work on advocacy and the development of strategic tools which empower them. Every year, the AMI is convened at the same time as global mining corporates and governments meet to design strategies of expanding investments and consolidate profits from the sector at the Africa Mining Indaba also held in Cape Town.
This year the 7th AMI will be hosted in Cape Town from the 8th to the 10th of February at the Double Tree by Hilton Hotel under a theme: “Making Natural Resources Work for the People – Leaving No One Behind” that speaks well to the Sustainable Development Goals adopted in September 2015.
The main goal is to provide a platform were community members, faith based organizations and civil society can effectively advocate, engage and dialogue for enhanced transparency and accountability in the governance of natural resources and lead to a Southern African Development Community (SADC), and Africa that extracts minerals sustainably and distributes natural resources revenues equitably to its citizens.
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Mobile technology and trade in sub-Saharan Africa
Over the last 15 years, the expansion of mobile technology into Sub-Saharan Africa (SSA) has been unprecedented.
Recent data by the International Telecommunication Union (ITU) shows that cellular telephone subscriptions are now almost eight times higher in the entire African continent than in the year 2000, reaching about 700 million subscribers. Africa is today one of the fastest growing information and communication technology (ICT) markets, with many countries ‘leapfrogging’ landline telephony to mobile connectivity.
The mobile technology revolution is widely regarded to have had a positive economic and social impact in many developing countries and least developed countries (LDCs). The new Sustainable Development Goals (SDGs) adopted in September 2015 now include the goal of providing universal and affordable access to the internet in LDCs by 2020 (SDG 9c). Being home to the world’s most LDCs, extending such access could help to place the African continent on to a new development trajectory, including trade performance and competitiveness.
This issue of Commonwealth Trade Hot Topics examines the growth of mobile technology in SSA, and the resultant implications and prospects for strengthening trade and regional integration. Given low levels of African exports, a key question is whether mobile technology can become an enabler or driver of improved trade performance for SSA countries in the future.
Trade and ‘disruptive technologies’
Technology has historically been one of the major drivers of globalisation. Today, technological advancements and more recently ‘disruptive digital technologies’ – including the cloud and digitisation, electronic commerce (e-commerce), 3D printing, big data, holograms, Internet of Everything, and virtual currencies – are impacting profoundly on how goods and services are produced, transacted, traded and consumed. The ICT revolution has led to the growing fragmentation of production processes and greater trade interconnectedness through global value chains (GVCs). GVCs are fundamentally changing the traditional concept of an entire production process taking place in one country, to products now ‘Made in the World’. This geographic separation of the various production processes from research and design to manufacturing (where data is often an important input into mechanised or automated production processes), marketing and other services presents opportunities for many countries, since it requires specialisation in a relatively limited number of tasks. Affordable and reliable access to ICTs is important for developing country enterprises to plug into these GVCs, and to reduce the costs of global business-to-business (B2B) matchmaking and transactions.
There is also a key role for ICTs in enabling global trade. In particular, the electronic ‘single window’ approach is seen as one way to reduce transaction costs and time by permitting traders to lodge standardised customs information and documents with a single entry point.
The rise of e-commerce as part of the broader digital trade revolution is rapidly transforming the marketplace from mortar ‘bricks’ to hyperlinked ‘clicks’. In one estimate, 40 per cent of worldwide internet users have bought products or services online via desktop, mobile, tablet, or other online devices. This amounts to more than one billion online buyers and is projected to continuously grow. The value of global B2B e-commerce in 2013 exceeded US$15 trillion, while global business-toconsumer (B2C) e-commerce accounted for an estimated US$1.2 trillion in the same year. However, Africa remains the region with the lowest penetration of e-commerce. Egypt consistently leads with B2C e-commerce sales of US$3.9 billion in 2012, followed by South Africa with US$1.2 billion and Nigeria with US$800 million.
Trade benefits of mobile connectivity
After decades as ‘technology-takers’ in the global digital divide between North and South, many African countries are today prioritising investments in science, technology, research and innovation. The African Union’s ‘Agenda 2063’, which sets the developmental vision and pathway for Africa over the next five decades, recognises the importance of technology as a catalyst for the continent’s structural transformation, economic development and social progress.
International partnerships have played a critical role in expanding available bandwidth on the eastern and southern sides of the continent. These projects include the laying of new undersea fibre optic cables along the African coast or the development of new broadband networks. According to the World Bank, investment commitments in telecommunications infrastructure projects with private participation between 2006 and 2013 exceeded US$75 billion. This is more than three times the figure for the previous five years.
The liberalisation of the communications sector in many African countries has also enabled leading global telecoms providers to expand their brands and compete for market share. Their strategies have included partnering with smaller manufacturers to develop more affordable mobile devices. Microsoft and Huawei, for example, have released an affordable smartphone custom developed specifically for the African market and preloaded with select applications (‘apps’) designed for Africa, called the ‘Huawei 4Afrika’.
Regulatory reform and liberalisation have also benefited local mobile operators, with countries such as Ghana, Nigeria or the United Republic of Tanzania having more than five local operators. Growing competition for the mobile market has also led to a drop in the price of handsets (smartphones retail for as little as US$25) and the cost of broadband connections.
Affordable prices for handsets and cheaper and better broadband connections are the two main drivers of this transformation, which has seen African countries ‘leapfrogging’ landline telephony to mobile connectivity. Over the decade since 2005, the African continent has been the trailblazer in the cellular telephone market, growing by nearly 700 per cent. Mobile technology allows farmers, small and medium enterprises (SMEs), businesses and consumers in remote villages or cities to benefit from this technological revolution in a number of important ways.
Commonwealth Trade Hot Topics is a peer-reviewed publication which provides concise and informative analyses on trade and related issues, prepared both by Commonwealth Secretariat and international experts.