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Luwellyn Landers: “Strengthening the African Agenda through the AU, BRICS and FOCAC”
DIRCO and ACCORD Public lecture delivered by the Deputy Minister of International Relations and Cooperation, Mr Luwellyn Landers, at the University of KwaZulu-Natal, Howard College Campus, on 21 September 2015
I am humbled by your attendance of this public lecture which seeks to reflect on South Africa’s foreign policy engagements.
We have decided to base our interaction today on the important topic of South Africa’s foreign policy, which is “Strengthening the African Agenda through the AU, BRICS and FOCAC”.
It is within this context that I will share with you some of the key outcomes of the 25th African Union (AU) Summit we hosted in June 2015 and the 7th Brazil, Russia, India, China and South Africa (BRICS) Summit which took place in July 2015. We will also reflect on South Africa’s hosting of the upcoming 2nd Summit of the Forum on China-Africa Cooperation (FOCAC), scheduled for December 2015.
South Africa’s African Agenda is premised on the Pan Africanist vision of creating a peaceful, stable and prosperous continent. Since the attainment of democracy, we have continued to premise our foreign policy on the inherent African identity and collective aspirations.
The African Union
We undertook to place the interests of the continent at the centre of democratic South Africa’s foreign policy. South Africa viewed the transformation of the Organisation of African Unity (OAU) into the current AU as an important and required shift in focus. Our hosting of the inaugural AU Summit in July 2012 here in Durban was one of the milestones in the country’s contribution towards advancing the African Agenda. We wanted to ensure that a ‘better life for all’ that we seek for ourselves, is translated into concrete actions that would lead us to a better Africa.
Africa took it upon itself to ensure that we are liberated from the shackles of colonialism and apartheid. Former President Nelson Mandela reflected in a Statement at the OAU Meeting of Heads of State and Government on 13 June 1994 when he said:
“Africa shed her blood and surrendered the lives of her children so that all her children could be free. She gave of her limited wealth and resources so that all of Africa should be liberated. She opened her heart of hospitality and her head so full of wise counsel, so that we should emerge victorious. A million times, she put her hand to the plough that has now dug up the encrusted burden of oppression accumulated for centuries”.
South Africa’s role in the conception of the New Partnership for Africa’s Development (NEPAD) gave meaning to the concept and the pursuit of African solutions to African problems. We sought to move from a developmental approach prescribed by international actors. NEPAD remains a frame of reference for all our interactions with Africa’s international partners, including FOCAC, which I will reflect on later.
We have championed the establishment of the African Peer Review Mechanisms (APRM) as a voluntary mechanism to deepen democracy and good governance on continent.
Our role in peace and security initiatives on the continent is well documented. We therefore continue playing a very active part in the Prevention, Management and Resolution of conflict in Africa. South Africa has assumed a leading role in the establishment of the AU’s Peace and Security Architecture.
Since the advent, we have deployed resources both directly and through our multilateral institutions such as SADC, AU and the UN to strengthen our mediation efforts in Zimbabwe, Burundi, Madagascar, Sudan, Cote d’Ivoire and Libya to mention but a few. South Africa’s commitment to post conflict reconstruction and development has yielded good results as evidenced in countries such as Sudan; Somalia, the DRC, Lesotho, Madagascar, Comoros and CAR amongst others.
South Africa has strived to improve working relations between the United Nations Security Council and the AU Peace and Security Council. In this regard, we have contributed personnel to multinational peace and security initiatives in support of regional AU and UN peace missions in amongst others Lesotho, Burundi, Comoros, Ethiopia and Eritrea, Sudan and the Democratic Republic of the Congo.
In the recent past, South Africa contributed to the establishment of the African Capacity for the Immediate Response to Crises (ACIRC), which is the precursor of the African Standby Force (ASF). We will later in 2015 host the Amani Africa II Field Training Exercise, comprising forces from the region and ACIRC to test the readiness of the ASF.
We have spared no energy in pursuing of the African dream. South Africa contributed to the development and adoption of Africa’s Agenda 2063 – a 50-years shared strategic framework for people-centred, inclusive growth and sustainable development. This vision is rooted in the Pan African drive “for self-determination, freedom, progress and collective prosperity,” which seeks to realise the following seven aspirations:
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A prosperous Africa based on inclusive growth and sustainable development;
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An integrated continent, politically united, based on the ideals of Pan-Africanism; including free movement of people, capital, goods and services;
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An Africa of good governance, respect for human rights, justice and the rule of law, including the entrenchment of democratic values, universal principles of human rights and gender equality;
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A peaceful and secure Africa, inclusive of the capacity to protect its citizens and interests, through a common defence, foreign and security policy;
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An Africa with a strong cultural identity, values and ethics; where our diversity in culture, heritage, languages and religion shall be a cause of strength;
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An Africa whose development is people-driven, especially relying on the potential offered by its women and youth; characterized by empowered women and youth; and
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Africa as a strong, resilient and influential global player and partner, through being an active and equal participant in global affairs; and financing its own development.
I indulge you in the details of Agenda 2063 because it is a vision which will be guiding us towards the Africa we seek to achieve. In the same vein the 25th Session of the AU Heads of State and Government was held in South Africa in June 2015 under the theme “Women’s Empowerment and Development Towards Agenda 2063.”
The Summit adopted the First Ten-Year Implementation Plan of Agenda 2063, which identifies those absolutely key projects that have to be attained by 2023.
Further, the Continental Free Trade Area (CFTA) negotiations were launched by the Summit. This will go a long way in integrating Africa’s markets and facilitating free movement of goods and means of production. The CFTA will contribute towards economic connectivity in Africa and bolster Intra-African Trade.
BRICS
South Africa participates in BRICS to advance its own interests, the interests of Africa and the global South. We share a common vision with other members of BRICS. It is a vision which we will continue to pursue through economic cooperation, sharing of technical expertise, knowledge and experiences.
You will recall that when we hosted the 5th BRICS Summit in 2013 here in Durban, selected African leaders participated in the BRICS Retreat. This approach is informed by our continued commitment to utilise different forums and partnerships to advance the African Agenda as a thrust of South Africa’s foreign policy. BRICS leaders committed to cooperate and support Africa to diversify its economies through infrastructure development, knowledge exchange, building and investing in the continent’s human capital.
The Seventh BRICS Summit was held in July 2015 in Ufa, the Russian Federation. The Summit marked a new era for BRICS engagement, as well as South Africa’s engagement with BRICS. In this regard, the Agreement on the New Development Bank (NDB) and the Treaty Establishing a Contingent Reserve Arrangement, which was signed during the Sixth BRICS Summit in Fortaleza, Brazil entered into force in Russia.
South Africa subsequently undertook the necessary steps to honour our obligations to support the operationalisation of the Bank’s Headquarters in Shanghai and to open the African Regional Centre in Johannesburg concurrently. Mr Leslie Maasdorp was appointed as South Africa’s Vice President to the Bank while Mr Tito Mboweni was appointed our Non-Executive Director of the Bank. The Minister of Finance Mr Nene will represent South Africa in the NDB Board as Governor.
In line with our BRICS commitment we are seconding South African government officials and experts to Shanghai to assist with the drafting of the Bank’s legal, strategic and financial policies.
We are also sourcing and preparing a new generation of experts to assume permanent positions at the Headquarters and our own African Regional Centre.
The Executive Management Team of the NDB is busy finalising the required policies, legal requirements and modalities in order to commence with its core business. Once completed we envisage the bank to approve and announce its first loans for projects in early 2016. South Africa will submit its own project proposals when the time is right, which will also include a regional project.
The BRICS Bank is not a replacement to any of the Bretton Woods institutions. Rather, the Bank will enable developing countries to fund large-scale projects on their own terms. These are complementary institutions to the existing global financial architecture to ensure a more direct response to the needs of developing countries.
The Summit endorsed a Strategy for BRICS Economic Partnership aimed at deepening of trade and investment ties within BRICS. The Strategy will contribute towards increasing value-added exports, as well as promoting investments among BRICS.
Allow me to briefly reflect on the number of Agreements and/or Frameworks that were concluded at the Summit, including:
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Agreement among the Governments of the BRICS Member States on Cooperation in the Field of Culture;
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Memorandum of Understanding on the Creation of the Joint BRICS Website;
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Memorandum of Understanding on Cooperation with the New Development Bank by the members of the BRICS Interbank Cooperation Mechanism (for South Africa it is the Development Bank of Southern Africa); and
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BRICS Framework Programme for funding multilateral joint research projects under the auspices of the Science, Technology And Innovation track during a meeting of experts prior to the Summit.
The Summit also witnessed the inaugural formal meetings of the BRICS Parliamentary Forum, BRICS Civil Forum, Youth Summit/Forum and the Business, Academia and Trade Union fora.
FOCAC
The relationship between China and Africa has experienced an immense trajectory of growth over the last ten years. China has become Africa’s largest trading partner, and Africa is now one of China’s major import sources. The continent is considered China’s second largest overseas construction project contract market and fourth largest investment destination.
I should state from the onset that the gains that have been realized are mutually beneficial to Africa and China. FOCAC is therefore an important structured mechanism for our engagement with China. Its intention is to strengthen equal and harmonious partnership, grounded in the pursuit of economic development and catalysing Africa’s industrial revolution. Much of the structured interaction between China and Africa has been through the FOCAC Ministerial meetings.
South Africa assumed the role of Co-chair of the Forum on China-Africa Cooperation (FOCAC) during the 5th Ministerial Meeting of the Forum, which took place in Beijing in July 2012. South Africa will continue in this role until 2018, when it will hand over to the next Co-chair on the African side. It is against this backdrop that South Africa will be hosting the 2nd Summit of FOCAC in Johannesburg in early December 2015.
The Johannesburg Summit is an extra-ordinary activity that can only be convened with the consent of all members of the Forum. The decision for South Africa to host this meeting was first mooted by President Xi Jinping and President Jacob Zuma during their bilateral discussions on the margins of the 6th BRICS Leaders’ Summit in Fortaleza, Brazil in March 2014.
This will be the 2nd such Summit, following the convening of the inaugural in 2006 in Beijing. The Beijing Summit was a seminal event in the life of FOCAC which gave real impetus to the partnership. It was during this Summit when President Hu Jintao announced the Six New Measures for China-Africa Cooperation. These included the creation of the China-Africa Development Fund to assist in driving China’s manufacturing investment on the continent.
The theme for the upcoming 2nd FOCAC Summit is “Africa-China Progressing Together: Win-Win Cooperation for Common Development”. This theme is designed to take into account the aspirations of both the African continent and China. It also seeks to ensure increased focus on Agenda 2063 and its First Ten-Year Implementation Plan as a driving force of Africa’s partnerships with the rest of the world.
South Africa will utilise the occasion of the Summit to advocate for the centrality of the AU in all African development partnerships. We will collectively seek to bring in key elements of Agenda 2063 and its First Ten-Year Implementation Plan as Africa’s guiding vision for its development into the FOCAC Plan of Action.
The Summit will focus on a number of key areas critical to the growth of African economies. The pursuit of Africa’s integration agenda is central to the continent’s developmental aspirations. In this regard, President Zuma plays a significant role as an AU champion for infrastructure development.
We are confident that China will continue to be a partner on regional infrastructure development. This ties in with the work of NEPAD in the context of the Programme for Infrastructure Development in Africa (PIDA), and President Zuma’s role as the Chair of the Presidential Infrastructure Championing Initiative (PICI) and Champion of the North-South Corridor.
The following issues will undoubtedly dominate our discussions:
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Improving railway connectivity, in particular networks that can facilitate intra-regional trade;
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Developing a suitable road infrastructure that enables regional trade and the movement of people, goods and services;
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Improving sea shipping and air transport; and
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Investing in a well-developed ICT and digital economy.
China has the unique distinction of being the only country in the world to achieve full industrialisation within a 30-year period. This has been achieved determination to invest in people and technology, and to adopt best practice from pioneer countries. The Chinese experience can hold many lessons for Africa. Skills and technology transfer, as well as agro-processing are amongst the sectors that could be of benefit to Africa.
I would like to reiterate that democratic South Africa embraces the spirit of good neighbourliness. It seeks to contribute towards regional stability and development through cooperation with its neighbours.
Our identity is not merely on a geographical bases but we fully embrace African values and identity as an African country. In this regard, South Africa will continue to prioritise the development of the African continent through the creation of a peaceful and stable continent as an important impetus for prosperity.
In conclusion we must remember that our foreign policy is intrinsically linked to our domestic priorities. All our international engagements seek to address the triple challenges of poverty, inequality and unemployment and our objectives as set out in the National Development Plan. South Africa’s foreign policy remains an extension of our domestic policy.
We know our future well-being remains inextricably linked to the future of our continent. We know full well that we cannot address our own triple challenges of poverty, inequality and unemployment without full and inclusive growth and development in our country. We also know that our inclusive growth and development is dependent on the inclusive growth and development of our entire region and continent. Equally so, we know that there can be no growth and development of our continent without peace and stability, good governance and integrated regional and continental infrastructure development to ensure inter-regional and continental trade and economic development.
This is why we do what we do in Africa. This is why we focus on:
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Conflict resolution and conflict prevention;
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Post-reconstruction and development;
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Humanitarian support;
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Strengthening good governance architectural and institutional capacity support;
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Peace and security architectural and institutional support;
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Infrastructure development support; and
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Creating alternative global and continental financial support and institutions.
I thank you.
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‘Something fishy’ about Investment Bill, says Sakoschek
There is something fishy about the Promotion and Protection of Investment Bill, which Trade and Industry Minister Rob Davies sees as a “guideline for negotiating future international commitments”.
This is according to Stefan Sakoschek, chairman of the EU Chamber of Commerce and Industry in Southern Africa, who believes “the government has a hidden agenda”.
He said: “The sentiment is that there is something happening that we [the European Chamber of Commerce and the American Chamber of Commerce in South Africa] are not aware of.”
According to Sakoschek, policy changes seem to be biased towards the Brics bloc – Brazil, Russia, India, China and South Africa; these countries have raised no concerns about the bill.
Sakoschek claimed that there is “preferential dealing with Russia and China”, which is a worry for his chamber.
His chamber was concerned that South Africa may go the way of other African countries that fall victim to the “Chinese vacuum cleaner, which is plundering [Africa’s] resources”.
He took issue with sub-standard Chinese goods being imported into South Africa, saying the playing field needed to be levelled.
He said that since it cost the National Regulator for Compulsory Specifications hundreds of millions to dispose of dangerous and counterfeit goods in South Africa, “we urge trade and industry to implement pre-import verifications of certain goods”.
“This would ensure a fair and equitable market, as well as compliance of imports to South African standards, protect consumers, help industrialise the nation, increase customs duties collections, and be in accordance with World Trade Organisation, which South Africa is a member of.”
The Promotion and Protection of Investment Bill, which is expected to ultimately replace bilateral investment treaties between South Africa and various countries, aims to create an all-encompassing investment framework for the country.
Davies wrote in a column, published in the Business Times this month, that the underlying philosophy of the bill is to “clarify” the protection that an investor may expect in South Africa, and to promote investments by creating a predictable business environment.
“Unlike the bilateral investment treaties that only provide protection to investors from countries with which South Africa signed and ratified these treaties, the bill protects both foreign and domestic investors,” he wrote. The minister added that the bill sought to “balance the rights and obligations of investors, to provide adequate protection to foreign investors, to ensure that South Africa’s constitutional obligations are upheld, and that the government retains the policy space to regulate in the public interest”.
But the business community finds the bill vague. The EU Chamber of Commerce is not the only one kicking up a fuss.
The Banking Association South Africa said the bill provided foreign investors less protection than bilateral investment treaties.
“Certain clauses of the bill are vague. This could impact negatively on the attractiveness of South Africa Inc as a destination for foreign investment and threaten the protection of South African investments abroad,” the association’s MD, Cas Coovadia, told parliament’s portfolio committee on trade and industry last week.
The American Chamber of Commerce in South Africa said the bill in its current form would have a disastrous effect on foreign investment in the country, which would cripple growth and job creation.
It said the bill would create “flight of investment out of South Africa” because it “does not promote investment”. The chamber said investment flight was happening already, and the bill was “another nail in the coffin” of the country‘s economy.
These views are supported by Geordin Hill-Lewis, the DA’s shadow minister of trade and industry, who said the bill did not address the many valid concerns that international investors had about the direction of government policy. “It is poorly drafted and ambiguous, and it needs to be extensively rewritten,” he said.
The European and American chambers are concerned that their investments maybe jeopardised under the new bill.
Sakoschek said the chamber was a long-term investor in South Africa.
Europe is the country’s largest trading partner, with more than 2000 companies invested in the country – representing 77% of total foreign direct investment. These companies have created more than 300 000 direct jobs and about 150 000 indirect jobs. Total annual trade between South Africa is estimated to be R460-billion, according to the European Chamber of Commerce.
The American chamber said it represented R278-billion worth of investment and 220 000 jobs in South Africa.
Sakoschek said it was not blackmailing the government or threatening it, but because of the uncertainty “some investors have started divesting and reinvesting elsewhere on the continent”.
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Going digital: Bank Payment Obligation stands to boost African trade
Bank Payment Obligation (“BPO”) stands to boost Africa’s trade partnerships, increase SMEs’ access to trade finance and reduce costs and risks in trade transactions. Banks and regulators need to work together to speed up adoption.
Trade and technology have fundamentally changed Africa’s economic fortunes and its profile as an investment destination for global businesses.
In recent years, the continent’s commercial relationships with the rest of the world have evolved away from a reliance on traditional partners in Europe and North America, towards a more balanced arrangement, where emerging economies in Asia and the Middle East feature more prominently. While total trade has grown by an average of 13 percent each year over the last decade, China-Africa trade has increased at 25 percent per annum, Africa-India trade by 32 percent and Africa-Indonesia trade by 29 percent.
Advances in technology have also allowed Africa to leap-frog interim development steps and break new grounds in critical growth sectors – such as mobile banking, where African innovators are leading the world.
A similar, game-changing experience is now possible in Africa’s trade finance sector, with the emergence of a digital trade settlement system, called Bank Payments Obligation or “BPO”.
BPO is an undertaking between banks that a payment will be made on a specified date after electronic matching of data on SWIFT’s Trade Services Utility (TSU) or any other acceptable transaction matching application. In providing an end-to-end, automated trade finance solution for corporates, BPO increases the speed, reliability and convenience of international trade while mitigating risks and reducing costs for the buyer and seller. The technology offers the best of both worlds for corporates: the security of paper-based letter of credit transactions with the flexibility of open account trade.
Currently, a large proportion of export trade is conducted on ‘open account’ basis, meaning that goods are shipped and delivered before payment is due – an attractive option for importers, but less so for exporters, who carry a lot of the risk in the transaction. Letters of credit – bank documents guaranteeing payments to exporters on delivery – reduce the risk, but can be inefficient, costly and inflexible, entailing at least five separate documents which need to be manually evaluated and reviewed for compliance.
This can be worse for commodity exporters, who are an important component of Africa’s trade. The technical and payments procedures for a single cargo by sea may demand the use of about 36 original documents, 240 copies and as many as 27 parties, placing an enormous burden on commodity companies to seek out more cost-effective ways of trade .
BPO could transform this process, removing the inefficiency of manually checking documents, improving the quality of verification and reducing the time taken from days to minutes.
The BPO concept is still relatively new internationally. To transact on BPO terms, both trading parties would require their respective banks to be signed up with SWIFT’s TSU. Standard Chartered was the first bank to go live with a fully automated BPO deal involving our clients BP Aromatics in Singapore and Octal in Oman in 2012. We were also the first bank to execute a BPO transaction under the International Chambers of Commerce (ICC) ratified Uniform Rules for BPO (URBPO) for our client, the PTT Group.
When BPO started out, it had some shortcomings, notably the obligation for the seller to extract data from the original documents for matching on the TSU. For larger companies with long trading histories, this was no barrier, but for SMEs and companies without track records, the potential for fraud slowed adoption in Africa. Today, however, e-solution providers have made big strides in integrating electronic documentation into the platform, creating the possibility for a much more independent and secure process for transferring data from shipping documents directly into the BPO system, and for integrating it into regulated document escrows or single window environments. A single, integrated, digitised platform like this should be transparent and efficient enough to accelerate adoption of BPO by trade finance participants in Africa.
Africa stands to benefit from the developments in the BPO space. But it must make bold and swift commitments to adopt technology and build the necessary infrastructure. Much depends on how governments and business collaborate to establish clear rules and institutional frameworks to facilitate adoption.
We have seen great progress in some countries, who have seen the benefits of using new technology to streamline their trade processes. In 2012, Nigeria established a single window portal for trade – an online electronic trade platform connecting public and private sector entities – with the objective of becoming a “one-stop-shop” for paperless trade and e-governance, positioning the country as a leading nation in Africa for electronic trade.
Nigeria and other African countries can leverage on the recent developments in the BPO space to enhance their single window propositions and achieve the objectives they set out for themselves. They can also explore possibilities of exchanging information on single window systems with their trading partners to improve the transparency and integrity of trade documents flowing between both countries. Such efforts can reduce fraud and boost cross border trade significantly.
The ICC Banking Commission, SWIFT and Standard Chartered Bank have been working together to promote the benefits of BPO to regulators, banks and businesses in Nigeria. More of such engagements are needed if digital trade is to gain traction in the continent.
Indeed, the upside for African businesses accessing BPO could be profound. By nature, small and medium enterprises (SMEs) in Africa tend to focus their efforts on securing post-shipment finance, as adequate security for pre-shipment finance can be challenging to secure. With BPO, pre-shipment finance will be more accessible given the greater visibility of transactions, electronic verification of data and third party authentication in the BPO workflow. By easing access to financing, BPOs have the potential to finance larger trade flows and boost existing trade partnerships, ultimately benefiting much needed economic growth and job creation for the continent as a whole.
In conclusion, BPO can make African economies more competitive by driving efficiencies in international trade. An efficient international trade environment can fuel economic opportunities and improve living standards even in smaller countries with limited domestic markets.
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Comesa electronic payment system to ease transactions
Uganda is one of the eight countries which are benefiting from the use of the Regional Payment and Settlement System (REPSS), which eases transfer of funds within the Common Market for Eastern and Southern Africa (Comesa) in conducting business.
This system, which was introduced to facilitate the settlement of trade and services payments among member states, has so far facilitated 54 US dollar transactions amounting to $1,690,387.26 (about Shs6.2 billion). Also a total of 11 euro transactions worth €63,656 (about Shs260 million) were conducted in the period between January and June 2015.
In a communication, Comesa secretary general Sindiso Ngwenya said: “REPSS’s operationalisation by the respective central banks of participating member states will go a long way in easing the payment of goods and services.”
The other member states using this service are DR Congo, Kenya, Malawi, Mauritius, Rwanda, Swaziland and Zambia.
Some of the key benefits of using the REPSS platform are that it guarantees prompt payment for exports as well as other transfers.
The system eliminates mistrust among traders as there is central bank involvement. This in turn should increase trade within the region.
REPSS allows transactions using local currencies thus reducing dependency on dollars and euros. “This cuts on collateral requirements as central banks are directly involved in the system and trade is amongst members,” Mr Ngwenya said.
Mode of operation
Under the system, the importer’s payment to the exporter is channelled through the central bank of the exporter using the REPSS platform. Hence, importers and exporters deal with their local commercial banks for trade documentation.
The credibility of the central banks and pre-funding of the account by commercial banks provide guarantee of payment.
REPSS is built on open standards and is also accessible to non-member states.
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tralac’s Daily News selection: 23 September 2015
The selection: Wednesday, 23 September
Today, in Brussels: SADC Day Business Forum
Next week: Namibian-German Centre for Logistics (NGCL) conference
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Ambassador Thiam Diallo, speaking on behalf of the C4 countries and other cotton-producing countries from Africa, LDCs and ACP, stressed her preoccupation at the lack of progress on the cotton issue in the agriculture negotiations. She noted that despite the increasing trend of assistance to the cotton sector, African cotton-producing countries remained vulnerable to declining international prices and high production costs. In view of the economic and social importance of the cotton sector in Africa, she underscored the need to address meaningfully all aspects of the cotton issue in the run-up to the Nairobi Ministerial Conference (MC10) for a successful resolution of the dossier. [Various downloads available]
Angola: Trade Policy Review (WTO)
The second review of the trade policies and practices of Angola started yesterday and continues on 24 September. The basis for the review is a report by the WTO Secretariat and a report by the Government of Angola. Extract from Government's report (4.1.1): Despite the autonomous liberalization and integration efforts in world trade, Angola registered a large delay in implementing the Uruguay Round Agreements. This is due to the particular political developments that occurred during the last decades. In this regard, Angola needs a longer period of transition to adjust its national legislation to WTO agreements guidelines and an appropriate technical assistance in order to strengthen its institutional capacity and financial technological means.
Uganda needs robust AGOA strategy - analysts (Daily Monitor)
Among those calling for the development of a strategy so as to take full advantage of AGOA, is the chairman of National Planning Authority, Mr Kisamba Mugerwa. According to him, it is time Uganda got a strategy before it ends up playing another cameo role as it has been in the last 15 years yet it has the potential to take up a leading role in the scheme. “We need an AGOA strategy. It will ensure that things like standards, quality and supply market are met,” Mr Mugerwa told participants attending the National Stakeholder Consultative meeting on the Agoa Extension and Enhancement Act of 2015, in Kampala last week. He added: “Supplying just one US supermarket is not a joke. That is why I will support an AGOA strategy because if we can meet the US standards, then we can export anywhere else.”
A technology bank for LDCs by 2017? (UN)
Two important global development frameworks, agreed upon in July, mention the establishment of a Technology Bank for LDCs: the outcome document of the Third International Conference on Financing for Development and the 2030 Agenda for Sustainable Development. The fact that the bank is mentioned in both documents and will be discussed during the UN General Assembly in September might create momentum to make significant strides in the process of establishing the bank. Turkey proposed to host the Technology bank for LDCs.
Tanzania: Enhancing linkages between tourism and sustainable agriculture sectors (UNCTAD)
Tourism and agriculture are important contributors to the development of the local economy. Many developing nations that are now experiencing rapid tourism growth have agrarian societies and tourism is the first or second source of export earnings. For example, 20 out of the world’s 48 LDCs rely on tourism and agriculture as the basis for the livelihoods of most of their inhabitants. This report proposes a set of potential thematic strategies that can be used as stepping-stones for building an institutional framework able to link the tourism and agriculture sectors at multiple levels – country, regional, local and community. [Download]
In Kinshasa: Rwanda, DRC, Uganda sign the Greater Virunga Transboundary Collaboration Treaty
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Lesotho-South Africa: details of the Lesotho Special Dispensation (GCIS)
The Minister, Malusi Gigaba, has said repeatedly that agreements on migrants between countries cannot be generic. They must be defined by specifics and dynamics of negotiation between respective countries. South Africa and Lesotho share a very different dynamic and therefore require measures that would take cognizance of these dynamics. It is in this context that Minister Gigaba announced the Lesotho Special Dispensation to regularise the status of undocumented Basotho in South Africa. The Ministers agreed also to explore the feasibility of implementing a trusted traveller system. Both Countries need a secure, convenient and fast cross-border movement control system for frequent travellers. This will assist to facilitate legitimate cross border business, trade and travel.
South Africa: Visa rules drive 11% slide in tourist arrivals (Business Day)
China to invest $2.8bn in Northern Cape (IOL)
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Mozambique: FinScope Consumer 2014 report (FinMark Trust)
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COMESA's Regional Payment and Settlement System: update
Eight Member States are now using the Regional Payment and Settlement System (REPSS) which allows easier transfer of funds within COMESA in conducting business. These are DR Congo, Kenya, Malawi, Mauritius, Rwanda, Swaziland, Uganda, and Zambia.
Rwanda: Mixed fortunes for agents as customers embrace direct cross-border mobile money transfer service (New Times)
This direct service, especially between MTN Rwanda and MTN Uganda, has created uncertainty among mobile money agents who have been collaborating with their counterparts in Ugandan towns like Kabale, Mbarara and Kampala to send money on behalf of Rwandans at a fee. This, therefore, means that MTN Mobile Money subscribers are the big winners. So what will happen to the whole chain of agents who these people previously relied on? Statistics show that at least 6.4 million Rwandans now have a mobile money account, way higher than the banked population.
SADC multi-stakeholder water dialogue
The 7th SADC multi–stakeholder water dialogue, 29-30 September, will also serve as a platform to validate the fourth Regional Strategic Action Plan which details the 5 year programme for the water sector (2016–2020) and supports the implementation of the RISDP and Industrialisation Roadmap and Strategy.
Trade in sustainable fisheries (UNCTAD)
The UNCTAD, Commonwealth Secretariat Ad Hoc Expert meeting on Trade in Sustainable Fisheries [next week] aims to provide a platform for discussion of possible approaches and options within the trade policy toolbox to mainstream sustainable fishing practices, and trade fish and fish products in the multilateral trading system, trade negotiations, and relevant UN and Commonwealth processes, while enabling the conservation of fisheries resources, marine ecosystems for the livelihoods of current and future generations. [Downloads available]
Kenya shrugs off growing competition for Ethiopian cargo (Business Daily)
The government has downplayed concerns that Ethiopia’s growing interest in the port of Berbera could affect a new gateway currently being constructed in Lamu. Lapsset Corridor Development Authority Director General Silvester Kasuku on Tuesday said most of the regional ports are too small and that Lamu could handle bigger ships. “The studies that we have undertaken indicate that there is a level to which Berbera Port remains in business and there is a level at which the Lamu Port also remains in business—and they complement each other,” he said. “They each have what we call the effective demand corridor length and they have a meeting point beyond which each of them does not interfere with one another.”
Lapsset investors urge government to tame rocketing land prices (Daily Nation)
AUC, Gulf of Guinea Commission relations are intensifying (MENA FM)
Two issues were raised during the meeting: the cooperation on maritime and blue economy issues and the formalization of the relationship between the Commission and the Gulf of Guinea Commission within the ambit of the GGC Treaty and the AU African Integrated Maritime Strategy 2050. Mr Samuel Kam-Domguia, coordinator of the 2050 Aim Strategy taskforce, also suggested that the maritime code of conduct signed/ratified by ECOWAS and ECCAS is a good example and consideration should be given to its adoption by all AU members States.
West Africa Gateway: NewsBrief
African Poultry Wrap: West African producers fret over imports (The Poutry Site)
Azevêdo: WTO and UNCTAD are united in supporting development (WTO)
Another major example of UNCTAD and the WTO’s joint efforts is the Aid for Trade initiative. To date, more than $245bn have been disbursed through its programmes, helping developing and least-developed countries improve their trading ability and tackling their infrastructure constraints. Research has found that one dollar invested in aid for trade results in nearly 8 dollars of exports from developing countries in general – and in 20 dollars of exports for the poorest countries. When we join forces I think we can achieve a great deal. And let me be really honest – I think there used to be a perception that UNCTAD and the WTO had quite different agendas. But that is not the case today.
First US-India Strategic and Commercial Dialogue: statement (Department of State)
The Sides applauded the focus on Innovation and Entrepreneurship as an area for cooperation. They agreed to facilitate an innovation forum in 2016, a platform for U.S. and Indian entrepreneurs to share best practices in promoting a culture of innovation and the creation of sister innovation hubs. The Sides launched a joint work stream on Ease of Doing Business. They agreed to continue exchanges of information and best practices on cross- border trade, and to continue commercial law-related initiatives on issues like insolvency and contract enforcement, and transparency.
India-EAC relations to be strengthened (EAC)
Mr Arya, India's High Commissioner to Tanzania and Representative to the EAC, said he would work closely with the Confederation of Indian Industries and the Indian Exim Bank in these initiatives, noting that these partnerships should for a start be between these two institutions and the East African Development Bank and the East African Business Council. Dr Sezibera also cited the support granted to the Community by India in the preparation of the East African Railways Master Plan the implementation of which he said would revolutionize the transport sector in the region. He disclosed that that one of the challenges faced by the EAC in relation to the free movement of goods across the region was the porous borders with non-EAC neighbours, adding that this issue was being addressed.
Regional cooperation on development finance: Namibia has benefitted (New Era)
Vale shuns path of equity sales, "working hard" to close Moatize coal financing (Club of Mozambique)
South Africa rail plans would cost a bank-breaking $110 billion, Transnet says (M&G Africa)
KEBS sets new rule for vehicles imported from UAE (Daily Nation)
Rwanda: EU suspends funding for cross-border road project (New Times)
Multinationals should pay full taxes, African MPs say (Daily Monitor)
Uganda to benefit from EU Shs7 trillion migrant cash (Daily Monitor)
Kenya: Maize farmers face a crisis on East Africa import rules (Daily Nation)
Multi-dimensional poverty in Ethiopia: changes in overlapping deprivations (World Bank)
Taffere Tesfachew: 'Unlocking the trade and growth potential of Africa’s services sector' (IDS)
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Trade Policy Review: Angola
The second review of the trade policies and practices of Angola took place on 22 September and 24 September 2015. The basis for the review is a report by the WTO Secretariat and a report by the Government of Angola.
Report by the Secretariat: Executive Summary
From 2006, when Angola underwent the first review of its trade policy, to 2008, the country recorded vigorous (double-digit) economic expansion, boosted by high oil prices and its position as the second largest oil producer in sub-Saharan Africa. Nevertheless, with the world crisis in 2008 and the collapse of oil prices, Angolan economic growth plummeted to 2.4% in 2009 before staging a gradual recovery to 6.8% in 2013 and standing at 3.9% in 2014. This performance enabled Angola to reduce its poverty rate from 62% in 2001 to 37% in 2009, with an estimated per capita income of US$5,706 in 2012 as compared to US$1,000 in 2001, just before the country emerged from the social and political crisis in 2002. Owing to marked inequalities, however, social indicators have not improved significantly.
Indeed, the UNDP’s Human Development Index ranked Angola 149th out of 187 countries in 2014 and, of 221 countries, among the ten with the highest infant mortality rate. Driven by highly capital-intensive offshore oil production, Angola’s growth has also failed to generate jobs, and unemployment remains high at around 25%. Efforts are now being geared towards diversification, as oil products still account for some 40% of GDP, over 95% of export earnings and close to 75% of government revenue. The overriding aim is to boost agricultural production, which only makes up about 5% of GDP, although it employs over half of the workforce; Angola was self-sufficient in food before gaining independence in 1975 and has immense potential for meeting this challenge. The development of manufacturing (about 4% of GDP) is relying on agribusiness and the processing of mineral resources (1% of GDP), consisting mainly of diamonds, of which Angola is Africa’s second-largest producer. Services (generating some 22% of GDP and 39% of all jobs) are expanding, although the country is still a net services importer.
Continued implementation of the stabilization programme supported by the IMF between November 2009 and March 2012 helped reduce consumer price inflation to 7.3% in 2014, the lowest level in 20 years. The reforms also aim to increase the competitiveness of the economy, where prices have remained very high for too long. Infrastructure investment over recent years is expected to be a contributing factor. Trade policy, which falls mainly under the Ministry of Trade (MINCO) and involves other ministries and state agencies as well as the private sector on an ad hoc basis, supports the aim of diversifying the economy towards fast-moving consumer goods (food products in particular). Given the continuing decline in oil revenues and the accompanying contraction in imports, boosting Angola’s trade, which fell from over 100% of GDP until 2011 to around 77% in 2013, calls primarily for diversification, which is also expected to help alleviate poverty over the long term. The country is pinning its hopes on the market openings that would result from the conclusion of the Doha Development Agenda. For now, Angola’s main suppliers are Portugal, China, the Republic of Korea and Brazil, and the leading destinations for its exports, chiefly oil products, are China, the European Union, the United States and India.
Angola became an original WTO Member on 23 November 1996. It is not party to the Plurilateral Agreements on Government Procurement and on Trade in Civil Aircraft. Angola grants at least MFN treatment to all its trading partners. Despite participating actively in the Trade Facilitation Agreement negotiations, Angola has not yet ratified the Agreement or notified its Category A commitments. Angola belongs to two of the eight regional economic communities recognized by the African Union, namely the Economic Community of Central African States (ECCAS) and the Southern African Development Community (SADC). Angola has neither ratified the SADC Trade Protocol nor signed the SADC draft Protocol on Trade in Services. Angola withdrew from COMESA in 2007. Angola has supplemented its network of bilateral trade agreements, which has increased from 30 to 38 framework or cooperation agreements. Angola participated, as part of the SADC group, in the negotiations for an Economic Partnership Agreement (EPA), but did not initial the Agreement concluded by the European Union with six other SADC members in July 2014. Angola is a beneficiary of the United States’ African Growth and Opportunity Act (AGOA) and as a least developed country, of the GSP schemes of other countries. Under the Global System of Trade Preferences among Developing Countries (GSTP), Angola has conducted negotiations with Mozambique and Cuba. For the time being, however, Angola accords no trade preferences.
A 2011 law provides for equal treatment of domestic and foreign investors. The petroleum, gas, diamond and financial institution sectors are subject to special regimes, which include tax and customs benefits. Angola has signed agreements on the promotion and reciprocal protection of investments with 13 States. It is also party to the various United Nations conventions guaranteeing the rights of foreign investors. It is a member of the Multilateral Investment Guarantee Agency (MIGA) but not a member of ICSID. Investors are eligible for tax benefits, customs benefits and exchange control benefits, negotiated on a case-by-case basis under a contract with the authorities, within ranges set by the law in accordance with various criteria, in particular geographical and sectoral ones. In return for these benefits, companies and enterprises formed for the purposes of private investment are required to employ Angolan staff, provide them with the necessary vocational training and offer them salaries and benefits commensurate with their qualifications.
A regime governing public-private partnerships (PPP) was also introduced under a 2011 law. These partnerships cover areas previously reserved for the State, where investment and private management under a concession regime have been deemed conducive to accelerating infrastructure development. All land holdings belong to the State, which may, however, assign the right to use land under a concession or long-term lease.
According to data notified to UNCTAD, in 2014 Angola was the second highest recipient of foreign direct investment inflows in the whole of Africa – up five places from the previous year, with investment totalling US$16 billion. Nevertheless, in the same year Angola was ranked only 181st out of 189 in the World Bank’s Doing Business rankings.
Businesspersons must be registered in the Register of Exporters and Importers administered by the MINCO. Since 2011, importers and exporters of goods exceeding a value of US$5,000 also have to obtain an import/export licence. From March 2012 onwards, import, export and re-export licences have been managed electronically. All goods imported or exported through Angolan sea ports must have a cargo tracking note; the associated charges may vary from one shipment to another. A customs declaration is required for both imported and exported goods under any customs regime, if their value exceeds AOA 475,288. The declaration may only be submitted through an approved customs clearing agent (or forwarding agent), who must be an Angolan national.
Angola has introduced a risk management mechanism used to process customs declarations. There is also a deferred control mechanism, but goods may not be withdrawn until the amount owing in duties and taxes has been paid; only oil industry operators may post security for the purpose of removing goods. During the period under review, Angola put an end to its preshipment inspection system, computerized the main customs posts and merged all tax administrations into the General Tax Administration (AGT). There is an accelerated customs clearance procedure for authorized (“trusted”) operators; an accelerated procedure is also available for goods requiring priority customs clearance because of their nature.
To diversify its economy, Angola has taken several import substitution measures. Customs tariff rates (especially those on agricultural products) have risen considerably and fall within a range of 2% to 50%, with an average of 10.9% (compared to 7.4% in 2005). Hence, for 31 tariff lines the applied MFN rates often exceed the bound rates by as much as 35 percentage points. Imports are subject to various other duties and taxes, often ad valorem, even though Angola bound them at 0.1%. Some imported or domestically produced products are subject to a consumption tax, mostly at a rate of 10% (which may be as high as 30% in some cases). This tax has a knock-on effect that is prejudicial for competitiveness and consumers. There is a ban on cement imports, and various agricultural products are now eligible for an import quota regime, which is awaiting implementation.
Duty and tax concessions may be accorded for some goods or economic operators. During the period 2009-2014, revenue foregone as a result of these concessions for import and export duty and taxes ranged from 24.7% to 40.9% of annual customs revenue. Most of the customs duty exemptions are for imports intended for the oil and gas industries.
Other than a general framework, Angola has no anti-dumping, countervailing or safeguard legislation and has never adopted such measures. The SPS and TBT regimes are not coordinated. For example, some imports are subject to several inspections by different institutions, which collect the associated fees. The import of bovine animals from Namibia has been suspended for the time being because of foot-and-mouth disease. Food and consumer products may not be imported into Angola if less than one quarter of their shelf life remains; for pharmaceuticals and cosmetics, the threshold is 50% of their shelf life, with a minimum of six months.
Export duty is payable on some products, including minerals exported in the rough state, and is based on the f.o.b. value. Goods in transit by land must be escorted. According to the authorities, the State is not involved in export financing and does not grant any export subsidies. Activities are reportedly under way to set up a National Export Promotion Agency (ANPEX) and to draw up an export promotion strategy.
Angola has not yet notified the WTO of its state-trading enterprises within the meaning of Article XVII of the GATT. Yet State involvement in the economy remains extensive. State-owned enterprises operate in almost all areas of economic activity, particularly in the oil, diamond and electricity industries, which for the most part are still under State monopoly. Consumer subsidies are granted for several products, including fuel, electricity and water, which are subject to price control. A new government procurement management framework introduced in late 2010 stipulates a preference for goods produced in Angola and/or services provided by Angolan or Angola-based suppliers. No competition policy has been adopted to date, and Angola’s intellectual property regime dates back to 1992.
With a young and growing population, vast expanses of land suited to agriculture and extensive hydraulic resources, Angola has the potential once again to become a major agricultural producer and exporter. Yet, with an estimated 5.4% share of GDP in 2013, agriculture (including forestry and fishing) is slow in becoming a driving force of diversification in the national economy and in the fight against poverty. Industrial fishing (tuna, shrimp, prawns and crabs) is reserved exclusively to Angolans or to foreign vessels leased to or jointly owned with Angolans. Angola remains a net importer of agrifood products.
Agriculture in Angola is still dominated by small-scale family farms, and the low level of mechanization is limiting productivity in a number of sectors. The fragmentation of the domestic market, caused mainly by poor infrastructure and the lack of marketing platforms, tends to reduce producer profit margins. Outreach services are still rudimentary and the lack of a legal framework is a disincentive to setting up agricultural associations and cooperatives. Moreover, a monetary policy that results in overvaluation of the national currency is tending to erode the competitiveness of the agricultural sector, for which most inputs and equipment are imported.
Agriculture and food processing receive the highest levels of tariff protection. The average rate of 23.3% applied to agricultural products (WTO definition) is more than twice the 2005 level; it is also more than twice the 2015 average rate on non-agricultural and non-oil products (9.1%). Based on the ISIC (Rev.2) definition, agriculture remains the most protected sector with an average tariff of 23.8%. Besides, some products may be imported free of duty and consumption tax if they have been included in the “basic basket” or in the event of a shortage on the domestic market. Domestic support for the agricultural sector takes various forms, including subsidized credit, the lending of material and equipment, subsidies for draught power and irrigation costs, and the provision of veterinary services free of cost to small producers. According to the authorities, agriculture does not receive more than 5% of the national budget.
The oil industry is still the mainstay of the Angolan economy, despite the negative shocks that affected its performance in 2014. The test phase of natural gas production in Angola began in 2013 and full production should be under way by the end of 2015. As the State’s sole concessionaire, the government-owned company Sonangol (Sociedade Nacional de Combustíveis de Angola) controls all activities relating to oil and natural gas. Sonangol held financial stakes in 165 other enterprises in 2013, operates a vertically integrated conglomerate in the subsector, and is active in several other fields. Domestic demand for refined oil products is met chiefly with imports; through a subsidiary, Sonangol holds exclusive import rights for oil products (except for lubricants).
Angola’s subsoil is rich in a wide variety of mineral resources that have not yet been properly identified and assessed. Recent mining exploration and exploitation have focused on diamonds, of which Angola is one of the world’s leading producers. The mining subsector is facing a number of problems, including a lack of suitable infrastructure and the continuing presence of anti-personnel mines; the very limited domestic supply of inputs and services indispensable to geological and mining activities; and the lack of financing and credit mechanisms geared to the mining industry on the Angolan market. In exchange for the granting of mining rights, the State receives a share of the proceeds from mining through joint ventures, in which at least 10% of the equity is held by a state-owned enterprise, and/or through production sharing in proportions that vary throughout the production cycle. A new Mining Code in force since September 2011 introduced the possibility of a foreign majority stake (up to 90%) in joint ventures set up to work strategic minerals; the adoption of a standard investment contract; and the award of mining rights by open competition (mandatory for all strategic minerals).
The National Diamond Company of Angola (ENDIAMA) is a state-owned enterprise that holds exclusive diamond mining rights throughout Angola; it represents the State in the granting of those rights and coordinates prospecting and mining. ENDIAMA holds financial stakes in several companies and is engaged in activities across the diamond subsector, including marketing, and in various other fields (industrial security, air transport, hotels, and medical services).
Substantial State investment has led to steady growth in electricity output, especially from thermal power generation. The potential of hydraulic and natural gas reserves and that of other renewable energy sources has not yet been fully exploited. Despite the progress made, the estimated 30% rate of electrification is still below the average for African countries, and random power cuts are still a major problem. Electricity transmission and distribution are still fragmented and too limited to cover the entire national territory. A programme to restructure the subsector, aimed at attracting private investment, has been in progress since 2013. The State will nevertheless retain a monopoly over transmission.
The inadequacy of basic infrastructure and insufficient skilled labour are still dampening the dynamism of industrial activity. Angola remains a net importer of manufactures, mainly consisting of machinery and rolling stock, non-electrical machinery and other semi-finished goods. The considerable growth and diversification potential of Angola’s manufacturing sector would be better harnessed through more effective use of the available resources and stronger links with other sectors of the economy, particularly agriculture and the extractive industries.
Angola has four fixed telephony and two mobile telephony providers. The share of fixed telephony is negligible, while mobile telephony is booming. The historical operator Angola Telecom is still 100% government-owned and has been recapitalized under a plan granting it autonomous management. It is being outperformed on the mobile telephony market by a private operator with majority Angolan capital. There are plans to award a third mobile licence. The regulatory framework was recently overhauled and is largely liberalized. The wireless local loop, cable modems, fixed wireless broadband and international gateways are nonetheless still subject to a monopoly.
Banking services are one of the three sectors, along with tourism and recreational, cultural, and sporting services, in which Angola has undertaken commitments under the GATS. With the restoration of civil peace and the ensuing oil boom, Angola’s banking system expanded vigorously and today ranks third in sub-Saharan Africa. Similarly, from a handful of state-owned banks, the number of banks in the market has now reached 24, of which only three are government banks; the others belong either to local private interests or, in the case of nine of them, to foreign interests. The country is still largely underbanked, and lending is mainly short-term, at relatively high interest rates. Foreign banks are not allowed to establish subsidiaries in Angola. Since the 2009-2012 crisis, the central bank has undertaken extensive regulation to remedy the structural weaknesses in Angola’s banking system and align it with international standards.
In 2000, Angola began deregulating its insurance sector, which has since expanded from a single state-owned insurer (ENSA) to 17 insurance companies, most of them private, in 2014. The sector is still fairly concentrated, with the three leading insurance companies accounting for a market share of 83% (ENSA (38%), AAA Seguros (23%) and GA Seguros (21%)) in 2014. The sector’s penetration rate is still a very low (0.8%), which would suggest that there is enormous scope for development. Insurance companies must take the legal form of limited companies and at least 30% of the capital must be domestic. In essence, the pension funds manage the retirement savings of employees of the large industrial companies operating in Angola, particularly but not exclusively in the oil sector.
The bulk of the containers imported and oil products exported are carried by foreign shipowners under third-party flags, even though there is a complex cargo-sharing scheme designed to promote the Angolan flag. In practice, interested foreign shipowners must register with Angola’s National Shippers’ Council, which delivers a cargo tracking note against payment of a fee. The container terminals at two of Angola’s six main ports are run under a 20-year concession by a private Angolan-Danish company. Traffic has risen substantially, although it is hampered by problems relating to infrastructure, costs and customs clearance times.
As pertains to air transport, TAAG Angola Airlines is still fully state-owned but has signed a ten-year management agreement with Emirates Airlines. By and large, the air transport agreements signed by Angola resemble the relatively restrictive “Bermuda 2” model. The principal airports are managed by a state-owned company, but some airport services have been contracted out. A new international airport is being built in Luanda. Self-handling and mutual assistance are not allowed, but there are third-party providers that are independent of the airport authorities and the national airline.
Angola’s rail network is still being refurbished. An ambitious plan has been adopted with a view to interconnecting the three existing networks, linking them up with neighbouring countries, merging the three existing state-owned companies, separating the rail transport management company from the infrastructure management company and putting the operation of lines out to concession. The plan is still awaiting implementation.
Development of the road transport sector is hampered by ongoing infrastructure refurbishment work, and the sector is largely informal and domestic in nature. A modern regulatory framework has been adopted, involving the award of quota-free licences based on quality criteria, and road transport agreements are being negotiated with neighbouring countries.
Tourism development is still constrained by transport service problems (infrastructure problems in particular), the high cost of living in Angola and the remnants of the social and political crisis (such as anti-personnel mines).
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Azevêdo: WTO and UNCTAD are united in supporting development
Director-General Roberto Azevêdo, in a speech to the UNCTAD Trade and Development Board on 21 September 2015, said that the WTO and UNCTAD are united in placing development “at the heart of all of our work”. “We are committed to enhancing the partnership between our organizations,” he continued, and “we want to make sure that trade and development go hand-in-hand”. This is what he said:
I am pleased to join you today – and to have the chance to discuss the evolution of the international trading system from a development perspective.
There is no doubt in my mind that trade and development are closely linked.
Rather than being two parallel or independent tracks, I think the international community now recognizes that trade and development are more complementary than ever before.
A look at the global agenda ahead makes this very clear.
I am leaving Geneva tomorrow to attend the UN Summit on the Sustainable Development Goals – where trade is going to be high on the agenda.
In just over two months’ time, we will be holding the WTO’s Ministerial Conference in Nairobi, and development will be at the core of that meeting.
And in March, we will be taking these issues forward again at UNCTAD’s own Ministerial Conference.
It’s a full agenda. There is a lot we can do.
Looking at the recent history, trade has helped to deliver a great deal.
As you know, the Millennium Development Goal to cut extreme poverty by half was reached by 2010 – well before the 2015 deadline.
This was a remarkable achievement.
Around two-thirds of this reduction in poverty came from economic growth in developing countries. And this process was driven, in part, by trade.
The figures tell the story. Developing countries’ share of global trade has grown from 28 to 42 per cent over the last two decades.
In commercial services trade, the share has risen from around 25 to roughly 35 per cent over the same period.
And South-South trade has also grown in importance, accounting for 52% of developing countries’ exports in goods in 2013.
So huge strides have been taken.
We know that trade can be an important driver of development. But we also know that for the benefits to be realised, it must be accompanied by the necessary capacity-building and financing support.
This is something that both UNCTAD and WTO work very hard to tackle.
We have a long history of collaboration in this field. This includes technical cooperation, capacity building and training initiatives, as well as research and analysis.
As a joint WTO-UN agency, the ITC is a good example of this cooperation.
By helping SMEs in developing countries connect to international markets, this initiative allows many to access the benefits of trade.
In fact, when SMEs connect to global supply chains, the gains from trade often go to sectors of the economy that tend to be more easily marginalized.
So work on this area is key.
Another major example of UNCTAD and the WTO’s joint efforts is the Aid for Trade initiative.
To date, more than 245 billion dollars have been disbursed through its programmes, helping developing and least-developed countries improve their trading ability and tackling their infrastructure constraints.
Research has found that one dollar invested in aid for trade results in nearly 8 dollars of exports from developing countries in general – and in 20 dollars of exports for the poorest countries.
When we join forces I think we can achieve a great deal.
And let me be really honest – I think there used to be a perception that UNCTAD and the WTO had quite different agendas.
But that is not the case today.
We are united in doing all we can to support development – and in placing it at the heart of all of our work.
The whole trade and development community increasingly speaks in unison about harnessing the full potential of trade for achieving development objectives.
The debate is more focused and defined than ever before – and this is reflected in the increased co-operation between the WTO and UNCTAD.
I think that Mukhisa and I see eye-to-eye on this. We are committed to enhancing the partnership between our organizations. We want to make sure that trade and development go hand-in-hand.
Because, of course, there is so much to do.
One billion people still live in extreme poverty. And factors such as rural isolation, gender discrimination, conflicts, poor infrastructure, and high trading costs obstruct people’s capacity to join trading flows.
Also, while we have seen the rising participation of developing countries in world trade, there are still some significant imbalances, especially regarding LDCs.
LDCs face big constraints to trade, such as low productive capacities and limited diversification of their production and export structures.
They account for more than 12% of the world’s population, but only for 1.8% of world GDP.
Their participation in global trade has seen gradual improvement over the last twenty years, but the relative share of LDCs in trade remains modest.
In terms of exports, for example, LDCs account for only 1.17% of world exports of goods, and 0.68% of services exports.
We need to respond to this situation and work hard to close these gaps.
Simply providing more trade opportunities is not enough. A broader and more systemic approach is needed.
I think that at the multilateral level, we have three key tasks to support growth and development.
First, we must keep momentum behind the existing initiatives, such as Aid for Trade, the ITC and the Enhanced Integrated Framework, which has been renewed this year.
These initiatives have accomplished a lot, and we must make sure they have the necessary support and resources to continue a successful trajectory.
Second, we must implement the decisions taken in Bali and ensure that the benefits of those decisions are delivered.
In the 2013 Bali Ministerial Conference, very important decisions were taken in terms of development.
Ministers agreed an LDC package that will help the further integration of LDCs into the global economy.
It includes provisions to improve duty-free quota-free market access for LDC goods.
And to facilitate the utilization of these market preferential schemes by LDCs, Ministers adopted for the first time multilateral guidelines on rules of origin.
Bali also provided a potential boost to LDC services trade, through steps to operationalize the LDC Services Waiver.
At a high-level meeting in the WTO earlier this year, some 20 members indicated their intention to offer preferences in sectors and modes of supply of export interest to LDCs. And 15 members have followed through on this commitment already.
Advancing these and other matters would have a great impact for LDCs. And we are working hard to move them forward.
Of course Bali brought us the Trade Facilitation Agreement.
This Agreement is about streamlining border procedures to dramatically cut the costs of trade, which fall most heavily on the poorest.
High trade costs have a negative impact on the economies of developing countries, notably on the LDCs. They price them out of global markets and disconnect their economies.
The Agreement aims to tackle many of these hurdles. And it offers major benefits for developing countries. By cutting red tape and increasing transparency, it could cut the cost of trade by up to 15% in developing countries and create 18 million developing country jobs.
The Agreement also has a unique architecture.
For the first time, it will provide real, practical support to help developing countries implement its provisions.
This is new – it has not been seen before in other WTO agreements.
The Trade Facilitation Agreement Facility was created with this in mind, and it has got off to a good start.
Now, the Agreement is pending ratification by members. Two-thirds of members must ratify the Agreement before it can enter into force.
Some have done so, but we need to increase the pace.
But as well as making the existing trading system work better for developing countries – we also need to change and improve the system.
This brings me to my third task – which is perhaps the biggest challenge that we face.
We must make further progress on multilateral negotiations.
We are now in the run-up to the WTO’s 10th Ministerial Conference in Nairobi, in December – the first time such a conference has ever been held in Africa.
As such, we have to deliver for Africa, and for developing and least-developed countries around the world.
This must be our priority at MC10.
There are some big issues on the table. The whole DDA menu of issues is available.
But so far negotiations have been tough. After extensive engagement this year there are still large gaps in key areas.
In recent months, we have been focusing on the most challenging issues in an effort to find possible solutions. But time is short. I think it is time for us to start working more intensely also on the more promising issues.
From conversations with a wide range of members – and groups of members – I sense that at least a set of deliverables is within reach. And, crucially, there is a broad understanding across the membership that those deliverables must include significant steps on development and LDC issues.
How we move forward now is up to the members.
They must decide on the shape and scope of the outcomes that they want to achieve in Nairobi. Then we can work hard to deliver them.
And we have to move quickly. We have just a few weeks left before the start of MC10. We must make each day count.
So negotiations will continue. And I have no doubt that developing countries will continue to be at the forefront of the debate – just as they were in the lead-up to Bali.
In closing, I think that this is an exciting and challenging time. And with challenges also come opportunities. There is much that we can achieve.
New outcomes in the multilateral trading system – along with a package of outcomes to support LDCs – would be a major step forward in our efforts to ensure that trade supports development.
Also, it would be the biggest contribution the WTO could make to global efforts on development, and to taking forward all of the issues that we are discussing here today.
So in New York, in Nairobi, in Geneva, let’s make sure that trade continues to be an enabler for economic growth, development and prosperity.
I look forward to working together with UNCTAD, ITC – and all of you – in this effort.
Thank you.
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Enhancing linkages between tourism and the sustainable agriculture sectors in the United Republic of Tanzania
The United Republic of Tanzania has vast untapped natural resources, including an abundance of wildlife, unexploited mineral reserves and arable land, which offer a wide range of development opportunities.
Tourism and agriculture are important contributors to the development of the local economy. Many developing nations that are now experiencing rapid tourism growth have agrarian societies and tourism is the first or second source of export earnings.
For example, 20 out of the world’s 48 least developed countries (LDCs) rely on tourism and agriculture as the basis for the livelihoods of most of their inhabitants. It is imperative, therefore, that these sectors receive close attention, especially concerning the economic opportunity relationships that arise from tourism and sustainable agriculture.
The main objective of this report is to enhance the understanding of linkages between these two sectors, as well as propose suggestions for how they could be strengthened with the aim of promoting bottom-up sustainable development in the United Republic of Tanzania.
In order to promote sustainable development, this report proposes a set of potential thematic strategies that can be used as stepping-stones for building an institutional framework able to link the tourism and agriculture sectors at multiple levels – country, regional, local and community.
The thematic strategies are:
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Awareness and capacity building: Raising awareness and building capacity to attain a high level of consciousness, understanding and ability in support of the implementation of linkages between tourism and agriculture are critical.
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Start-up drivers (Utalii na Kilimo Kwanza): Selecting regions that can serve as multipliers based on successful local experiences such as the growth corridors initiative.
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Public-private partnerships and destination level cooperation and action: The private and public sectors and destination stakeholders are key components in the implementation of pro-poor tourism (PPT) practices. Achieving the objectives of this strategy will rely on collective commitment, strategic partnerships, effective institutional arrangements and facilitating processes. The theme also addresses the lack of supportive funding and other mechanisms as a key constraint in improving linkages.
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Effective promotion of pro-poor tourism and branding: This strategic theme focuses on the need for promotion of PPT products, experiences and destinations in the United Republic of Tanzania through an effective and robust marketing plans and branding.
These four themed strategies indicate ways to empower a cooperation platform linking tourism and agriculture in the United Republic of Tanzania. However, they require a detailed action plan, which should be developed by the national government together with local stakeholders, outlining interventions for each type of strategy.
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From ambition to execution: Policies in support of Sustainable Development Goals
Countries should drive their own development, but working together, the international community can turn the picture of sustainable development envisaged by the Sustainable Development Goals from aspiration into reality, says IMF Managing Director Christine Lagarde.
In a discussion at the Brookings Institution on the 17 new Sustainable Development Goals that will be adopted on Friday at the United Nations, Lagarde noted; “countries out of their own determination can make a difference in achieving the SDGs. They do not have to wait for institutions, partners and others to make a difference.”
Meanwhile IMF staff have published a research paper with some policy advice they believe will help countries hit targets set out by the ambitious development agenda over the course of the next 15 years. The study notes that “policies that foster economic transformation, economic and social inclusion, and protect the environment are of paramount importance for sustainable development.”
A holistic approach
While good policy decisions can reinforce synergies between economic, social, and environmental objectives, the authors say the trade-offs and challenges that individual countries face in pursuing their development goals vary significantly, with the right mix of policies depending on such factors as economic structure, levels of income and education, and institutional capacity.
Transform and diversify
The paper, “From Ambition to Execution: Policies in Support of Sustainable Development Goals,” examines the case for promoting economic diversification through structural reforms. “In a stable macroeconomic environment, structural reforms can play a crucial role in facilitating the shift of resources to their most productive uses and help to diversify production and exports.”
By diversifying their economy, the authors say developing countries can shift workers from low productivity agriculture into higher productivity sectors like manufacturing, trade and services, which create higher paying jobs in the long term and help improve living standards.
Most commodity exporting countries however, have been struggling to diversify – especially with the weakening commodity sector – and the paper commends Indonesia, Malaysia, and Mexico for having managed to move away from oil production by improving the business environment and supporting workers in acquiring relevant skills.
Making growth more durable
The study stresses the importance of economic and social inclusion, saying all levels of society – men and women equally – should benefit from economic growth. “Financial inclusion is a key ingredient for reducing income inequality, and for providing women with greater economic opportunities,” the paper notes. It also suggests that by increasing tax revenues, cutting wasteful spending and strengthening the efficiency of public service delivery, developing countries could increase social spending to help them achieve their redistributive goals. The paper says a fair tax system also plays an important role in improving equity.
Investing in a sustainable climate will mitigate risk
The study highlights the potential benefits of reducing poorly-targeted energy subsidies. It notes that raising energy prices to reflect actual cost would cut global carbon emissions by a quarter, air pollution related deaths by three-fifths, and yield revenues of up to 8 percent of GDP on average in some countries. “Pricing policies accompanied by regulations can also play an important role in the more efficient management of water resources, improving both economic prospects and the welfare of populations vulnerable to chronic and crisis-related lack of water access. Finally, financial sector policies can contribute to mitigating the impact and adapting to the consequences of adverse climate-related events,” the paper says.
With the rise in frequency of natural and public health disasters, the IMF recently created the Catastrophe Containment and Relief Trust, and increased access for low-income and developing countries to zero-interest loans to buffer potentially disruptive shocks, while they pursue their sustainable development agendas.
» View tralac’s United Nations Sustainable Development Summit 2015 Resource box
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WTO Sub-Committee on Cotton: Update on the implementation of development assistance aspects of cotton
Implementation of the development assistance aspects of the cotton-related decisions in the 2004 July package and Paragraph 12 of the Hong Kong Ministerial Declaration
Pursuant to paragraph 12 of the Hong Kong Ministerial Declaration, this is the Nineteenth Secretariat Progress Report to the Sub-Committee on Cotton on the Development Assistance Aspects of Cotton. Since the last Progress Report, there have been several developments.
First, on 12 June 2015, the Director-General circulated the 19th version of the Evolving Table on Cotton Development Assistance and the 11th version of the Table on Domestic Cotton Sector Reforms, under cover of his letter addressed to Ambassadors and Permanent Representatives.
Second, the 23rd Round of the Director-General’s Consultative Framework Mechanism on Cotton (DGCFMC) took place on 9 July 2015.
Third, WTO Members have maintained an active interest on all aspects of the cotton dossier, as mandated in the 1 August 2004 General Council Decision and in the 2005 Hong Kong Ministerial Declaration.
Twenty-Third Round of the Director-General’s Consultative Framework Mechanism on Cotton
The Chairman (DDG David Shark) welcomed all participants to the 23rd Round of the DGCFMC, in particular the C4 representatives. He highlighted that the usual briefings on the trade policy aspects of cotton by the Chairman of the Committee on Agriculture in Special Session and of the Sub-Committee on Cotton would henceforth only be taken up in the Dedicated Discussions of the Relevant Trade-related Developments on Cotton, in order to avoid duplication.
Statement by the C4 Coordinator
The Chairman welcomed the new C4 Coordinator, Ambassador Thiam Diallo, from Mali. In doing so, he paid tribute to her predecessor, the outgoing Ambassador of Burkina Faso Mr. Prosper Vokouma, who had been the C4 Coordinator for a good number of years and whose constructive approach and pragmatic negotiating style would be remembered by all participants in the Consultative Framework Mechanism.
Ambassador Thiam Diallo, speaking on behalf of the C4 countries and other cotton-producing countries from Africa, LDCs and ACP, stressed her preoccupation at the lack of progress on the cotton issue in the agriculture negotiations. She noted that despite the increasing trend of assistance to the cotton sector, African cotton-producing countries remained vulnerable to declining international prices and high production costs. In view of the economic and social importance of the cotton sector in Africa, she underscored the need to address meaningfully all aspects of the cotton issue in the run-up to the Nairobi Ministerial Conference (MC10) for a successful resolution of the dossier.
She pointed out that the participation of C4 Ministers in a plenary session on “Reducing Trade Costs in the Cotton Value Chain” held recently at the WTO in the framework of the Fifth Global Review of Aid for Trade, showed the high political support that African countries were giving to the cotton sector. That was particularly relevant in light of the difficult context for the sector, where it was becoming crucial to reduce high costs in relation to cotton production, processing and trade.
The ACP representative supported the intervention by the C4 Coordinator and referred to the May 2015 ACP-EU Council of Ministers session, where ACP Ministers had called for an agreement on cotton by MC10 in accordance with the 2005 Hong Kong Ministerial Declaration.
Cotton Production and Trade Trends
The representative of the International Cotton Advisory Committee (ICAC), Ms Rebecca Pandolph, presented a detailed analysis of the current trends in the African cotton sector, pointing to differences amongst regions with respect to production, yields, exports and mill use. She made reference to the devaluation of the FCFA since 2014 which had contributed to higher earnings for African cotton producers, making their exports more competitive in the world markets.
Ms Pandolph underlined the importance of enhancing extension services and delivering inputs in a timely manner as the best means to raising yields in cotton production and avoiding that cotton farmers be tempted to switch to other crops. She forecasted a positive 2015/16 season for the CFA zone countries, with higher production and the possibility of increased exports. She noted that, contrary to the declining mill use in West Africa, Tanzania and Ethiopia had been increasing their cotton processing, thanks to successful partnerships with overseas’ investors.
The representatives of Argentina, Australia Chad and Nigeria asked the ICAC’s representative several questions regarding cotton prices, yields, consumption and the expansion of biotechnology cotton (Bt) in Africa.
Ms Pandolph underscored, in particular, that Burkina Faso and South Africa were the only two countries in Africa where Bt cotton was cultivated. She said that, given the high diversity amongst African countries, a number of implementation issues would have to be considered and some indepth research conducted, in order to introduce Bt cotton successfully.
Director-General’s Evolving Table on Cotton Development Assistance
The Chairman, in introducing item 4 of the agenda, made reference to the 19th version of the Evolving Table (ET). He invited Mr. Gerardo Melogno, from the Secretariat’s Development Division, to highlight the key points of the latest revision of the ET.
Mr. Gerardo Melogno noted that the latest version of the Evolving Table had been prepared on the basis of inputs from Australia, Brazil, the European Union and some of its member States, Japan, Switzerland and the United States. Inputs had also been received from several multilateral organizations, namely: the FAO, the ITC, the IMF, UNCTAD and the World Bank.
He highlighted that in Part I of the ET, concerning the ongoing activities of cotton specific development assistance, the number of beneficiaries had increased to 30 from 27 previously, and the total value of commitments had diminished to US$247 million as did the total value of disbursements, which amounted to US$92 million. He underlined that the ratio of total disbursements to total commitments had improved from 30% to 37%.
With respect to Part II, which shows ongoing activities in the broader framework of agriculture and infrastructure-related development assistance, he noted that the value of commitments had decreased from US$4.85 billion in the previous version to US$4.78 billion in the revised version. The total value of disbursements had increased to US$3 billion and the ratio of total disbursements to total commitments had climbed to 63%.
Regarding information on completed activities, he reported that the total value of commitments in Annex 1, listing activities under cotton specific development assistance, had increased to US$516 million and the actual disbursements related to those activities amounted to US$421 million. Turning to the completed activities in Annex 2 under the framework of agriculture and infrastructure-related development assistance, the total value of commitments and disbursements had increased to reach US$2.27 billion and US$2.23 billion, respectively.
Mr. Melogno commended donors for their latest updates which showed steady progress. He highlighted, in particular, the improvement in the commitments to disbursements ratio in both active parts and encouraged the donor community to continue with that positive trend.
As far as the notification of National Cotton Sector Focal Points was concerned, he underlined that their number had climbed to 15, with one addition. He urged other cotton proponents to communicate the names and coordinates of their national focal points to complete the list.
The focal points of Benin, Burkina Faso and Chad gave details about the increased production in their respective countries in the 2014/15 season and forecasted a slightly higher production in the following season.
The representative of Brazil said his country had launched the second phase of its project to strengthen cotton production and local family farming in Africa and noted that its implementation date had been extended until 2018. He renewed his country’s commitment to providing technical assistance to African cotton-producing countries to promote economic and social development.
The representative of Uganda intervened with questions on the commitments/disbursements gap and the relationship between the amounts of development assistance reflected in the Evolving Table and the declining production on the ground.
The representative of Nigeria enquired about the possibility of funding the participation of other focal points in the Consultative Framework.
Mr. Gerardo Melogno gave some precisions on the inevitable gap in relation to the commitments/disbursements’ ratio, arising from the implementation period of the activities, i.e. between the start of the projects and their completion. He encouraged donors to submit updates to the Secretariat on the progressive implementation and partial disbursements of activities.
The representative of Sudan informed participants that his country would be submitting several projects to develop his country’s cotton sector and for which assistance from the donor community would be requested.
The representative of the European Union referred to the ongoing EU-Africa Cotton Partnership involving three regional strategies on cotton, textiles and clothing. She stressed that regional focal points played a fundamental role in the design of national strategies on the cotton value chain, citing the examples of related projects in Cameroon, Côte d’Ivoire and Zimbabwe.
The representative of the United States reiterated her country’s commitment to support the C4 countries and the cotton sector in Africa. She commended the Evolving Table as a useful tool to shed light on the various ongoing assistance programmes and asked if all support granted by different actors could be listed in the Table.
South-South Cotton Cooperation
The representative of China gave details on extension of cotton-related technology and capacity building activities with francophone African countries in general, and the C4 in particular. He underlined that China had recently provided agriculture machinery and equipment, improved cotton varieties, fertilizers, new irrigation techniques and plantation technology to Benin, Chad and Mali. He highlighted that his country had also contributed to enhance infrastructure, notably in the construction and restoration of highways in Benin (Akassato-Bohicon) and Mali (Bamako-Segou). He commented that China would continue its cooperation with C4 countries to strengthen their capacity in the cotton sector in order to help them attain their development goals.
All C4 representatives acknowledged with appreciation the valuable assistance of Brazil, China and India in the framework of South-South Cooperation.
The Chairman highlighted the important and relevant contributions from Brazil, China and India in the area of South-South Cooperation, stressing that their latest inputs enhanced implementation and reinforced cooperation on that platform. He encouraged developing countries to continue to deepen and extend South-South cotton cooperation.
Domestic Cotton Sector and Other Reforms / National Cotton Sector Focal Points
The Chairman made reference to the eleventh version of the Table on Domestic Cotton Sector Reforms which had been circulated on 12 June 2015, with new contributions from Benin and Mali, as well as the continuation of the prevailing initiatives in Burkina Faso and Chad.
He highlighted that the Secretariat had lately received the name and coordinates of one additional focal point, from Sudan, increasing the total number to 15. He encouraged other cottonproducing countries to notify their National Cotton Sector Focal Points.
The focal point of Mali announced that, following the suspension of the privatisation of the CMDT in 2012, a new privatisation plan was under way. He underlined that there had been a 25% increase in cotton production in the 2014/15 season and for the 2015/16 season a further 20% increase was expected. He asked the financial assistance of development partners to enable the continuation of the Producer Support Fund which administers a price-setting mechanism for seed cotton to help offset price fluctuations.
The focal point of Chad noted the vital role that the cotton sector played in her country, where nearly four million people depended directly or indirectly on cotton for their livelihood. She noted the increase in cotton exports in the current season and the positive forecast for the following season, despite the difficult situation in the country on account of the fall in oil prices and security issues. She stressed that Chad was committed and determined to pursue negotiations with all stakeholders with a view to reaching a satisfactory solution to the cotton issue at the Nairobi Ministerial Conference.
The focal point of Benin gave details of five new projects to enhance his country’s cotton sector, involving the establishment of new cotton zones, the prevention of cotton contamination, the setting up of an agricultural diversification fund and the rehabilitation of the textile industry and fibre classification. Those projects would be submitted to development partners shortly.
The focal point of Burkina Faso made reference to the 8% increase in cotton production in the 2014/15 season from the previous one and to the continuation of the positive trend in the following season. He pointed out that a document was sent to the Secretariat describing the structural organization and administration of the cotton sector in his country and the challenges faced to put in place compensatory measures to neutralize international price fluctuations, enhance production, preserve the soils and develop the local transformation of cotton. The document would be distributed by the Secretariat in due course.
The representative of Nigeria pointed to the economic and social importance of the cotton sector in his country, in particular in the northern region. He commented that around 17 million people were dependent on cotton in Nigeria.
Conclusion
The Chairman concluded the meeting by underscoring the full spotlight that Director-General Roberto Azevêdo was putting on the cotton dossier. He stressed that the importance of the cotton issue was reflected in the recently held 5th Global Review of A4T, during which Ministers from the C4 participated in a plenary session dedicated to cotton. He highlighted that the Secretariat would continue to monitor and report to Members new contributions, disbursements and operational status of activities listed in the Evolving Table as well as progress in relation to domestic cotton sector reforms in proponent countries. He emphasized that South-South Cotton Cooperation was an important aspect of the implementation of the mandate on the development track of cotton and that there was wide recognition of the highly relevant dimension of that aspect in the DGCFMC. The significant contributions of Brazil, China and India in that respect were highly appreciated by all participants in the Consultative Framework.
In concluding, he encouraged Members and participants to expand further the information exchange and constructive engagement to reinforce the development dimension of the work in the WTO. He announced that the next round of consultations would take place before the Nairobi Ministerial Conference and that it would be held back to back with the next dedicated discussion to examine relevant trade-related developments on cotton in the context of the Committee on Agriculture in Special Session. The Secretariat would consult with regard to the specific dates.
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African Union Customs Experts meet to prepare for the 7th Meeting of Director Generals of Customs
The 7th meeting of the African Union Sub-Committee of Directors General (AUSCDGs) of Customs at Experts’ level commenced on 21 September in Kinshasa under the theme: “Co-ordinated Border Management – Enhancing Security and Facilitating Trade.”
During the three-day meeting, experts from Member States, Regional Economic Communities (RECs), World Customs Organization (WCO), United Nations Conference on Trade and Development (UNCTAD), and World Bank, will examine the work done so far, consider the recommendations of the experts and reflect further on the issue of Coordinated Border Management in order to secure Africa’s borders and Boost Intra-African Trade in preparation for the DG Customs Meeting on Thursday and Friday.
The Chairman of the meeting, Mr. Narcisse Milandou, highlighted the slow customs procedures, poor transport infrastructure, roadblocks and stressed the need to promote intra-African trade for the benefit of the African people. He urged the assembly to continue efforts tirelessly and continue to forge contacts to victory over disorder at borders and corridors. He concluded by asking the experts to be imaginative to present to their principals with pragmatic recommendations.
Mrs. Treasure Thembisile Maphanga, Director of the Department of Trade and Industry of the African Union Commission, expressed her sincere thanks and appreciation to the Government and people of DRC for agreeing to host the meeting. She highlighted the relevance of the theme taking into account both regional and global developments. She underscored the low levels of intra African trade due to obsolete infrastructure, inefficient and uncoordinated functions at ports and inaccessible roads, red tape and armed conflicts in some areas which make business in Africa more expensive as compared to other continents. She also underlined the fact that despite robust economic growth on the continent, Africa stills lags behind in terms of competitiveness.
“Although both Africa and South East Asia had approximately the same levels of GDP per capita in the 1960s, South East Asia’s GDP per capita has since risen considerably more rapidly than Sub-Saharan Africa. Most worrying is that, Africa is not benefitting from its human capital potential and the entire region is underperforming significantly in various sectors”, she indicated.
Mrs. Maphanga however also pointed out the positive steps being taken by leaders and experts such as the implementation of the Single Windows, Coordinated Border Management and the organization of the first Forum of customs experts on trade facilitation. She referred to the WTO Agreement on Trade Facilitation that highlights border management as a major component of achieving trade efficiency. She highlighted the fundamental policy direction taken by the AUC towards the actual creation of trade potential by developing a flawless trade facilitation environment through incorporating the Boosting intra-African Trade program in the African Union’s “Agenda 2063”.
In his statement, the Director General of Customs of the Democratic Republic of Congo, Mr. Deo Rugwiza Magera, thanked the audience for the choice of Kinshasa to host the meeting and welcomed all participants in Kinshasa. He reminded the participants that during three days, they will have to consider some very important points regarding customs issues given the negotiations that were launched in June 2015 by the African Union Assembly for the establishment of the Continental Free Trade Area (CFTA).
According to the Director, issues such as Single Window, Co-ordinated Border Management, Trade Facilitation, Private Sector’s Involvement in the negotiations on the CFTA, use of new Communication Technologies in commercial transactions etc. will be discussed in order to come up with strong recommendations. He then pointed out that all these actions can be performed if there is a good coordination among RECs and Member States. Finally, he declared open the proceedings of the meeting.
The Opening Session of the 7th Meeting of the Sub-Committee of Directors General of the African Union at DG’s level, will kick off on 24 September 2015.
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New World Bank survey brings hope to Malawi’s mineral potential
New areas showing potential of mineral deposits have been discovered in Malawi, boosting opportunities to develop the country’s mining industry, attract investors and diversify the country’s agricultural-based economy.
The potential mineral deposit discovery comes at the end of a year-long geophysical survey co-financed by the World Bank and the European Union through the Bank’s Mining Governance and Growth Support Project (2011-2017). The survey has produced high-resolution data that provides insight into the country’s mineral potential which will continue to be explored.
“The data show there is more below the surface which demands follow-up work,” said Jalf Salima, director of the government’s geological survey department.
During the recent launch of the survey results, Salima cited several formations in Malawi that are similar to those of other neighboring countries, which could signal mining opportunities for Malawi: the Kasungu Dyke has similar qualities to those of the Great Dyke Zimbabwe, which has a number of important metals. Southern Malawi’s Lower Shire Basin has coal deposits, which could be linked to Moatize, a coal-mining area in Mozambique.
Salima said the government will interpret all of the survey data, while the private sector will interpret data in their areas of interest to help focus their exploration efforts. Some areas of focus will include regional relationships such as the terrane boundaries within the basement complex of Malawi and their relation to known or suspected boundaries in Mozambique, Zambia and Tanzania, as well as dykes and their relationship to known or new dyke swarms in the region, and potential sites of kimberlite intrusions and their relation to known diamond occurrences in the region.
Within Malawi, data will be explored for potential sites for gold and base metals mineralization, hydrocarbons, neo-tectonics, rifting structures and the existence of basins of any age that may have potential for oil and/or gas. The analysis will also identify the relationships between geophysical signatures and known mineral occurrences and structures across the whole spectrum of potential mineral resources in the country. The survey data will also be used to update the national geological map of 1996.
“The completion of this survey is a key achievement for Malawi, especially if the detailed interpretation brings about positive results critical for the mining sector to help boost the economic growth that this country needs,” said Laura Kullenberg, World Bank country manager for Malawi, cautioning stakeholders that the time from exploration to the development of a mine could take as many as 10-15 years.
Further, Kullenberg said that the development of resource wealth could be a curse if the country does not have strong institutions and legislation regarding how to invest and share the wealth generated from new discoveries.
“Countries that do not get this right from the outset can descend into conflict,” she said. “Please do not let this happen to Malawi.”
Bright Msaka, Malawi’s minister of natural resources, energy and mining, said the ministry will work to ensure Malawians are the principal beneficiaries of the country’s mineral wealth.
“If this data is properly utilized, it will help realize a modern mining sector and Malawians will no longer be poor,” he said.
The Malawi Government has applied for the Extractive Industries Transparency Initiative candidature to ensure transparency and accountability in managing mineral revenue.
» Launch of the Airborne Geophysical Data: Speech by Laura Kullenberg
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tralac’s Daily News selection: 22 September 2015
The selection: Tuesday, 22 September
Sustainable Development Summit 2015: explore tralac's resource box
OSISA discussion, tomorrow: How SADC member states should align their NDP or National Visions to the SDGs. Case studies: Namibia, Angola, Zambia, Malawi
ACBF discussion on the Mediterranean migrant crisis: roots and implications for Africa (ACBF)
The Knowledge Monitoring and Evaluation Department at the ACBF, through the African Community of Practice on Management for Development Results program, would like to invite you to join the Online Discussion about the ongoing Mediterranean migrant crisis: roots and implications for Africa. African leadership and organizations must not turn a blind eye on this; otherwise it cannot build a prosperous future. Join the discussion:
Co-ordinated border management - enhancing security and facilitating trade (African Union)
The 7th meeting of the African Union Sub-Committee of Directors General of Customs at experts level commenced yesterday in Kinshasa under the theme 'Co-ordinated Border Management - Enhancing Security and Facilitating Trade'. During the next three days, experts from Member States, RECs, WCO, UNCTAD and World Bank will examine the work done so far, consider the recommendations of the experts and reflect further on the issue of Coordinated Border Management in order to secure Africa’s borders and Boost Intra-African Trade in preparation for the DG Customs Meeting on Thursday and Friday.
Africa on the move: experts fashion out ways to ease migration bottlenecks (Rural Reporters)
For the first time, stakeholders concerned with migration management came together to talk about the challenges facing migration in Africa and how to effectively abolish the log jams. Dubbed the Accra Forum on Intra-Regional Consultations on Migration, the first Joint Annual Forum for Intra-Regional Consultations of Africa Regional Frameworks on Migration was held between the 16-18 September. AUC Commissioner for Social Affairs, Mr Mustapha Sidiki Kaloko said that Africa is not doing enough to stem irregular migration. He emphasised that while every country has a right to control the number of people that migrates into its country, migration is not a crime. [Concept note]
Unexpected trade boon for Joburg (Mail and Guardian)
Informal cross border traders contribute up to R4.6bn a year to the economy of Johannesburg alone. But while the women and men from Zimbabwe, Mozambique and elsewhere often manage to drag their families out of poverty, they have to deal with corruption, robberies and sexual assault on a daily basis. These are some of the conclusions of yet-to-be published research by the Gauteng City-Region Observatory, which has completed the largest survey ever undertaken of so-called ICBT traders who travel to Gauteng.
Border management challenges concern SA parliament's peace and security cluster (Parliament)
Malawi: National Migration Profile launched (IOM)
Taxman’s new strategic plan seeks tighter control of border points (Daily Nation)
The Kenya Revenue Authority launched its 6th strategic plan on Friday, with an eye on taking a leading role in border controls. First mooted after the September 21, 2013 Westgate terrorist attack, it is now becoming reality that the revenue agency is taking a commanding role in securing the borders. To effectively take up the role, KRA is to be reorganised into two semi-autonomous but interdependent agencies — the Inland Revenue Agency and the Customs and Border Protection Agency. [Download]
Wider afield: India’s dream of borderless trade grinds to a halt at checkpoints (LiveMint), Phillipines: Customs modernisation can’t wait (The Inquirer)
West Africa/Nigeria: new World Bank appointment
The World Bank has appointed Rachid Benmessaoud as the new Country Director for the Federal Republic of Nigeria and Coordinating Director for West Africa Regional Integration Program. Rachid Benmessaoud joined the World Bank in 1990 as an Energy Planner in the then Europe, Middle East and North Africa Vice-Presidency.
West Africa: implementation of the Action Plan of the Human Rights Strategy for Africa (African Union)
Towards a harmonised African tax system (Accra Report)
The 12th annual Africa Tax Conference (30 Sept-2 Oct) will look at the future megatrends on taxation in Africa, cloud computing and ride sharing programmes, enabled by smart phones that are changing the dynamics of economies. "Tax policy must be defined and aligned to capture appropriate levels of taxes from such economic gains, using rules that are clear and respected across multiple borders," concludes Deiotte.
Intra-continental trade in Africa to feature prominently as Africa’s industry giants gather in Johannesburg (TimesLive)
Arica’s richest man‚ Aliko Dangote‚ together with investment banker Dr Enos Banda‚ Prof Pat Utomi‚ founder and CEO of the Centre for Values in Leadership‚ and Prof Nick Binedell‚ founding director of the Gordon Institute of Business Science‚ are just a few of the African business leaders who will headline the first annual African Business Leaders Forum event to be held in Johannesburg this year, from 9-12 December.
WTO: Istanbul meet next month to seal fate of deliverables (LiveMint)
An informal meeting of the trade ministers of India, China, Brazil, the US, the European Union, Japan and Australia on 5 October in Istanbul, Turkey, will decide the fate of a package of “deliverables” for the World Trade Organization’s 10th ministerial conference in Nairobi, and may end up scuttling New Delhi’s demands for “comprehensive” and “credible” outcomes for poor farmers.
Zimbabwe: Social Market Agenda for Recovery and Transformation (Crisis in Zimbabwe Coalition)
Going forward, Zimbabwe’s civil society submits to the nation a ‘menu of smart economic ideas’ that can help Zimbabwe to resuscitate the economy under the current political situation. The overarching vision is to see a democratic-developmental State and the goal is to create a social market economy; the fundamental idea is based on the progressive principles of a free market economy but augmented by active State intervention in coordinating, facilitating and providing support and supplemented by a caring Government that ensures the social protection of all its citizens. [Download available]
Botswana: Beef export competitiveness deteriorates - BIDPA study (Mmegi)
In a recent working paper titled ‘Export Competitiveness of Botswana’s Beef Industry’ published by the Botswana Institute for Development Policy Analysis, the researchers stated that despite its deteriorating competitiveness, Botswana still outperformed most of the SADC countries. According to the study, Botswana exported about 20% of its beef in 1961 and reached a peak of 75% in 1975, and thereafter its ratios of net trade to domestic production (NP) got eroded until reaching 20% in 2011. The study further says Botswana and Namibia are the most competitive SADC beef exporters, noting that Namibia’s NP rose steadily from 1961, reaching a peak of 68% in 1998 and thereafter fell to reach 26% by 2011. [Download]
Mozambique improves 1% in Africa Integrity Indicators – still 'somewhat weak' (SPEED)
Since 2006, Global Integrity has conducted five rounds of research on Mozambique – including two rounds of the Global Integrity Report, and three rounds of Africa Integrity Indicators research. In the 2015 report Mozambique scored 41% out of a possible 100% and is considered 'somewhat weak' in transparency and accountability. This is an improvement from 40% in 2014 but a significant drop from 58% in 2013. Within the overall ranking Mozambique scored lowest on transparency and accountability of public management (27%) civil service integrity (33%), transparency of elections (40%), and access to information and openness (42%).
IESE researcher says Mozambique is experiencing a 'very troubled' context (Club of Mozambique)
The Director of the Institute of Social and Economic Studies, Luis de Brito, said on Friday that the country is experiencing a "very troubled context," characterised by the tense situation between the two main Mozambican parties and empty talk about peace. "Mozambique is going through a very troubled context, both from the political point of view and the social and economic point of view," de Brito said, speaking in Maputo at the launch of the IESE book, ‘Challenges for Mozambique in 2015’. [Download the book, in Portuguese]
Non-tariff measures and Sustainable Development Goals: direct and indirect linkages (UNCTAD)
The Sustainable Development Goals have multiple and vital linkages to 'non-tariff measures' says UNCTAD in its latest Policy Brief. These non-tariff measures include regulatory policies to protect the environment and human, animal and plant life as well as non-trade barriers that have an effect on developing countries' poverty reduction opportunities.
Switzerland, the UK, Sweden, the Netherlands and the USA are the world’s five most innovative nations, according to the Global Innovation Index 2015, while China, Malaysia, Viet Nam, India, Jordan, Kenya, and Uganda are among a group of countries outperforming their economic peers. The GII 2015 looks at ‘Effective Innovation Policies for Development’ and shows new ways that emerging-economy policymakers can boost innovation and spur growth by building on local strengths and ensuring the development of a sound national innovation environment.
African leaders promote new initiatives on scientific research (Vanguard)
Namibia: Railways need ‘major repairs’ to carry heavy haul trains (New Era)
Modern day standards in the Southern African Development Community require rail systems to be built or upgraded to 18.5 ton/axle loading standard, which require minimum 48kg/metre rails welded in continuous lengths, and concrete sleepers and good ballasts that should last for 100 years under current traffic conditions. Struggle Ihuhua, TransNamib’s executive spokesperson, noted that as a result of the dilapidated infrastructure, trains are reduced to uneconomical speeds of 15, 20, and 40km/h, while the ideal solution would be to upgrade all the 30kg/metre and defective railway network to 18.5 tons/axle. Only about 48 percent of the Namibian network complies with this standard.
Namibia: EOI for FIATA training programme for freight forwarders (AfDB)
Namibia: Why finance is against Kudu (The Namibian)
A report by the finance ministry estimates that government will have to spend more than N$10 billion in cash and provide a further N$32 billion in guarantees between now and 2020 if it opts for the Kudu Gas project. The report that was confirmed by the finance minister Calle Schlettwein also says the project will stretch government debt by about 20% to N$68,3 billion over the next three years. Schlettwein yesterday said the report will soon be submitted to Cabinet. Namibia's current debt stands at N$50,8 billion up from N$30 billion in 2013.
Namibia: Competition policy at final implementation stage (The Namibian)
The National Competition Policy is at the last stage of being finalised. This is according to the board chairperson of the Namibian Competition Commission, Sacky Akweenda. Akweenda also revealed that the NaCC is revising the Competition Act and harmonising it with the National Competition Policy to ensure consistency and capture national objectives.
Tanzania: Call for full exploitation of region's rice market (Daily News)
A Tanzania Private Sector Foundation consultant, Dr Halima Noor, told a news conference during a high level policy dialogue for rice value chain stakeholders that Tanzania was not utilising her potential in producing and selling rice in East Africa. The meeting organised by TPSF and Trade Mark East Africa was attended by members of the private and public sector from within and EA countries. The study found out that several challenges face Tanzanian business persons such as 75% tariff when exporting rice to Uganda and Rwanda which is contrary to EAC laws.
EAC looking into Ugandan VAT on Tanzanian rice (IPPMedia)
Kenya imports milk from Uganda to meet shortfall (Daily Nation)
US bank to invest R5.4bn in SA solar plant (Fin24)
South Africa: Davis homes in on offshore tax evasion (IOL)
Tackling the illicit African wildlife trade (CFR)
Moving African exchanges forward: regional integration in the spotlight (Moneyweb)
China, South America and regional integration (The Diplomat)
Asian Development Outlook 2015 (ADB)
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Related News
United Nations Sustainable Development Summit 2015: Resource box
A bold new global agenda to end poverty by 2030 and pursue a sustainable future was unanimously adopted by the 193 Member States of the United Nations on 25 September 2015 at the start of a three-day Summit on Sustainable Development at the UN headquarters in New York. The historic adoption of the new Sustainable Development Agenda, with 17 global goals at its core, ushers in a new era of national action and international cooperation. More than 150 world leaders addressed the Summit, which ended on Sunday.
“The new agenda is a promise by leaders to all people everywhere. It is a universal, integrated and transformative vision for a better world.”
UN Secretary-General Ban Ki-moon
The sustainable development goals (SDGs) follow, and expand on, the Millennium Development Goals (MDGs), which were agreed by governments in 2000, and are due to expire at the end of this year. Recognizing the success of the MDGs – and the fact that a new development agenda was needed beyond 2015 – countries agreed in 2012 at Rio+20, the UN Conference on Sustainable Development, to establish an open working group to develop a set of sustainable development goals.
After more than a year of negotiations, the Open Working Group presented its recommendation for the 17 sustainable development goals. In early August 2015, the 193 member states of the United Nations reached consensus on the outcome document of the new agenda, “Transforming our World: The 2030 Agenda for Sustainable Development”.
There are 17 sustainable development goals with 169 targets. The complex challenges that exist in the world today demand that a wide range of issues is covered. The goals are broad in scope because they will address the interconnected elements of sustainable development: economic growth, social inclusion and environmental protection. The SDGs aim to achieve three extraordinary things in the next 15 years: End extreme poverty, Fight inequality & injustice, and Fix climate change.
» Open Working Group proposal for Sustainable Development Goals
» Report of the Open Working Group of the General Assembly on Sustainable Development Goals
» Sustainable Development Goals Factsheet
» Sustainable Development Goals Booklet (UNDP)
Building on the many successes of the past 15 years and the Millennium Development Goals (MDGs), world leaders have adopted a new set of goals, the Sustainable Development Goals (SDGs), which aim to end poverty and hunger by 2030. Recognizing the connection between people and planet, leaders have set goals for the land, the oceans and the waterways. That future is one where everybody has enough food, and can work, and where living on less than $1.25 a day is a thing of the past.
Summit Outcome Document
» Outcome document of the United Nations summit for the adoption of the post-2015 development agenda, 21 October 2015
Resolution adopted by the UN General Assembly on Transforming our world: the 2030 Agenda for Sustainable Development
This Agenda is a plan of action for people, planet and prosperity. It also seeks to strengthen universal peace in larger freedom. Eradicating poverty in all its forms and dimensions, including extreme poverty, is the greatest global challenge and an indispensable requirement for sustainable development. All countries and all stakeholders, acting in collaborative partnership, will implement this plan.
Reports and studies
Projecting progress: Reaching the SDGs by 2030 | ODI Development Progress, September 2015
This flagship report from the Overseas Development Institute (ODI) offers a first systematic attempt to project progress across the full SDG agenda, showing where – if current trends continue – the world will be in 15 years’ time. The findings serve as a wake-up call on just how much more effort will be needed to reach the new goals. Gathering together the best available projections, we provide a ‘scorecard’ against 17 targets – one per goal. This shows that, without increased effort, none of the goals and examined targets will be met. The scorecard reveals how much faster progress will need to be, classing targets as needing ‘reform’, ‘revolution’ and ‘reversal’. [Download Annex]
As the international community is considering the structure and scope of a post-2015 development agenda, the final report of the MDG Gap Task Force has undertaken the responsibility of extracting lessons from its monitoring of Goal 8 that may be useful in monitoring the future global partnership for development.
The Millennium Development Goals Report 2015
As we reach the end of the MDG period, the world community has reason to celebrate. The data and analysis presented in this report prove that, with targeted interventions, sound strategies, adequate resources and political will, even the poorest countries can make dramatic and unprecedented progress. The report also acknowledges uneven achievements and shortfalls in many areas. The work is not complete, and it must continue in the new development era.
Global Sustainable Development Report 2015 (advance version)
The GSDR brings together a broad range of existing scientific assessments and reviews global progress and future sustainable development pathways in an integrated way, taking into account the perspectives of scientific communities across the globe. 2015 is a historic year. We are set to adopt an ambitious agenda that will move us towards a sustainable future for people and planet. But adopting the agenda is only the first step. Making it a reality will require work and dedication from all of us.
The DATA Report 2015: Putting the Poorest First
2015 is a year that will shape the course of history. A new set of Global Goals – the Sustainable Development Goals – will be launched in September, which will set out the path to a fairer, more prosperous world and an end to extreme poverty. But goals alone are not enough – they need a clear plan of action and the determination to deliver it, ONE Campaign says.
This report serves to review the experiences of recent years in pursuing a global partnership for development, focusing on the gap between commitments made and cooperation delivered, with the ultimate goal of helping the international community bridge the difference.
The Millennium Development Goals Report 2014
This report examines the latest progress towards achieving the MDGs. It reaffirms that the MDGs have made a profound difference in people’s lives. The concerted efforts of national governments, the international community, civil society and the private sector have helped expand hope and opportunity for people around the world. But more needs to be done to accelerate progress. We need bolder and focused action where significant gaps and disparities exist.
Accelerating Action: Global Leaders on Challenges and Opportunities for MDG Achievement
Secretary-General Reports
Mainstreaming of the three dimensions of sustainable development throughout the United Nations system: Report of the Secretary-General, 30 March 2015
This report highlights the role of the sustainable development goals at the core of the post-2015 development agenda and their potential to inject new impetus for embracing integrated approaches to development and to marshal a range of existing policy tools and guidance for collaboration.
Strategic foresight for the post-2015 development agenda: Report of the Secretary-General, 23 February 2015
This report identifies, analyses and presents for discussion key issues concerning the role of strategic foresight for policymakers, particularly in developing countries.
Drawing from the experience of two decades of development practice and from the inputs gathered through an open and inclusive process, the report charts a road map to achieve dignity in the next 15 years. The report proposes one universal and transformative agenda for sustainable development, underpinned by rights, and with people and the planet at the centre.
Trends and progress in international development cooperation: Report of the Secretary-General, 15 May 2014
Post-2015 Process
The process of arriving at the post-2015 development agenda has been member state-led with broad participation from major groups and other civil society stakeholders. This led to the representation of a wide range of interests and perspectives. In Africa, CSOs played an active role in coming up with the Common African Position on the post-2015 Development Agenda (CAP) providing them with full ownership of the process.
In anticipation of the adoption of the post-2015 development agenda at the UN Summit in September 2015, the HLPF discussed how best to prepare for implementing the agenda and to shape its own work to promote and review the implementation of the agenda.
Strengthening integration and implementation: Role of sustainable development bodies after 2015, June 2015
Note prepared by the UN Economic Commission for Africa for the Africa Regional Forum on Sustainable Development, held from 17-18 June 2015 in Addis Ababa.
This document is a compilation of the written contributions of various major groups and other relevant stakeholders that have autonomously established and maintained effective coordination mechanisms for participation in the High-Level Political Forum on Sustainable Development on the theme, “Strengthening integration, implementation and review: the high-level political forum on sustainable development after 2015”.
This technical report is provided by the United Nations Statistical Commission (UNSC) in response to a special request by the Co-facilitators of the intergovernmental negotiations on the post-2015 development agenda for the development of a provisional proposal in relation to indicators for sustainable development goals and targets. The Commission, at its 46th session (3-6 March 2015), endorsed a roadmap for the development and implementation of a global indicator framework.
Report of the Intergovernmental Committee of Experts on Sustainable Development Financing, 15 August 2014
This report presents a “strategic approach” to the flow of funds from sources to uses and considers policy options to strengthen the four basic categories of financial resource mobilization available for financing sustainable development, namely, domestic public, domestic private, international public, and international private finance.
Outcome document of the special event to follow up efforts made towards achieving the Millennium Development Goals, October 2013
Heads of State and Government gathered at UN Headquarters in New York at the special event convened by the President of the General Assembly to review progress made towards the achievement of the Millennium Development Goals and to chart the way forward. The leaders welcomed what has been achieved so far but expressed concern about unevenness and gaps in achievement and about the immense challenges that remain.
Sustainable Development Agenda in Africa
MDG Report 2015: Assessing Progress in Africa Toward the Millennium Development Goals (MDGs), September 2015
This year’s report highlights innovative policies and progammes which countries have adopted to accelerate progress on the MDGs. The report demonstrates that sustaining and advancing beyond the gains made under the MDGs require new approaches which embrace all three dimensions of sustainability – the environmental, economic and social. Progress under the SDGs will be assessed not only by the results achieved, but also by considering how they were achieved. Method will assume greater relevance in the post-2015 development paradigm.
The Africa Regional Forum on Sustainable Development was held from 17 to 18 June, 2015 Addis Ababa, bringing together high-level representatives of African member states together and relevant stakeholders. The main objective of the Forum was to enable African countries to deliberate and agree on Africa’s collective input in the form of key messages to the High-Level Political Forum on Sustainable Development 2015. The agreed key messages are presented herein.
Africa Regional Report on the Sustainable Development Goals, February 2015
The present report is a summary of the Africa Regional Report on Sustainable Development Goals, prepared under the framework of the Africa Rio+20 follow-up, and the post-2015 development agenda consultative processes. It is based on information gathered from consultative processes that were carried out in the five subregions of Africa, and among a number of institutions supporting development in the region, supported by an extensive literature review.
Common African Position on the Post-2015 Development Agenda (CAP), March 2014
The CAP identifies substantive issues of importance to Africa and arrives at a consensus on Africa’s key priorities, concerns and strategies to be reflected in the outcomes of the post-2015 negotiation process. This was achieved by taking into account the wealth of information collected and collated from national and regional stakeholders (the executive and legislative arms of governments, private sector, civil society organizations, youth associations, women groups, trade unions, and academia) African multilateral institutions and selected pertinent UN organizations and agencies.
A Regional Perspective on the Post‐2015 United Nations Development Agenda, June 2013
Reports of the UN System Task Team on the Post-2015 Development Agenda
Statistics and indicators for the post-2015 development agenda, July 2013
In January 2013, the UN System Task Team established a Working Group on Monitoring and Indicators to (a) analyze lessons learned from experience with the Millennium Development Goals (MDGs) monitoring framework, in close collaboration with the Inter-Agency and Expert Group on MDG Indicators (IAEG), and (b) develop recommendations on how the priorities identified in the Realizing the Future We Want for All report might be captured in the monitoring framework, with the objective of informing the formulation of the post-2015 development agenda on the design and criteria of numerical aspects of target setting, and the selection of robust monitoring indicators.
A renewed global partnership for development, March 2013
In this report, the United Nations Task Team Working Group on Strengthening the global partnership for development to support the implementation of a post-2015 development agenda formulates recommendations on desirable features of a renewed global partnership for development that are required for a successful post-2015 global development agenda.
Realizing the Future We Want for All, May 2012
Additional resources
» The new UN Sustainable Development Goals and Regional Integration in Africa, tralac Discussion, September 2015
» Defining a new global development agenda – Sustainable Development Goals and Climate Change, tralac Trade Brief, September 2015
» From Ambition to Execution: Policies in Support of Sustainable Development Goals, IMF Staff Discussion Note, September 2015
» Non-Tariff Measures and Sustainable Development Goals: Direct and indirect linkages, UNCTAD Policy Brief, September 2015
» Trade and Climate Change Policy Beyond 2015, UNCTAD Policy Brief, September 2015
» Report on the Third International Conference on Financing for Development, Addis Ababa, 13-16 July 2015
» From Billions to Trillions: MDB Contributions to Financing for Development, July 2015
» An International Support Programme for Sustainable Investment Facilitation, E15 Task Force on Investment Policy Think Piece, July 2015
» A sustainable development review process, UNCTAD Post-2015 Policy Brief, June 2015
» The role of international trade in the post-2015 development agenda, Note by the UNCTAD Secretariat, February 2014
Related News
Non-tariff measures and Sustainable Development Goals: Direct and indirect linkages
The Sustainable Development Goals have multiple and vital linkages to “non-tariff measures”, says UNCTAD in its latest Policy Brief. These non-tariff measures include regulatory policies to protect the environment and human, animal and plant life as well as non-trade barriers that have an effect on developing countries’ poverty reduction opportunities.
A new UNCTAD Policy Brief argues that the proliferation of non-tariff measures plays a crucial role in shaping global trade patterns and their sustainability.
Non-tariff measures are defined as policy measures – other than ordinary customs tariffs – that can have an economic effect on international trade. They thus include a wide array of policies. Some are traditional instruments of trade policy, such as quotas or trade defence measures. These measures are often termed non-tariff barriers because of their unequivocally discriminatory and protective nature. However, the distinctly neutral definition of non-tariff measures does not imply a direction of impact or a judgement about the legitimacy of a measure.
To understand how non-tariff measures interact with sustainable development, it is helpful to distinguish between indirect and direct linkages.
Indirect linkage means that non-tariff measures influence trade. In turn, trade can foster economic development and spill over to sustainable development.
Direct linkages refer to policies that have an immediate effect on sustainability. While many policies primarily aim at protecting health or the environment, they also have an impact on trade and are therefore considered non-tariff measures.
Key points:
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Trade leads to economic development; trade policy can ensure sustainability.
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Many non-tariff measures are much more than trade policy instruments – they are sustainable development policies.
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Some costs of non-tariff measures can be reduced without compromising policy objectives.
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Regulatory convergence with respect to NTMs is paramount.
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Nations need to work together in the multilateral system and the United Nations to achieve regulatory convergence.
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US Trade Mission seeks to boost investment in Africa
U.S. officials accompanied by representatives from more than 100 U.S. companies are winding up a week-long trade mission to Africa with stops in the continent’s eight leading economies, including South Africa.
With more than 150 representatives from 108 American companies, the delegation is part of the Trade Winds initiative, a program of the U.S. Department of Commerce aimed at exposing U.S. companies to investment opportunities in sub-Saharan Africa.
While U.S. President Barack Obama has made boosting trade ties with the continent a priority, one trade expert says it will take more than a single trip for U.S. companies to clinch lucrative investment deals – especially with Chinese companies already investing heavily in some African countries.
“Africa’s dire financial constraints at the moment present a massive opportunity for investors,” said Theo Josias, head of business development at Sizwe Ntsaluba Gobodo, a South-Africa-based investment advisory firm. “The governments are giving a lot in terms of incentives, a lot in terms of wanting to make sure that they bring in people into the territory.”
By identifying sectors most in need of investment, such as energy and infrastructure, Josias says U.S. companies can capitalize on the weaknesses of their foreign competitors already rooted in Africa.
According to Marcus Jadotte, U.S. assistant secretary of commerce for industry and analysis who is leading the trade mission, the U.S. interest is focused on long-term investments.
“We’re focused on local workforce development, supporting the development of infrastructure and investing in the communities in which we do business,” he said, adding that efforts are being made to boost the sheer number of U.S. companies already invested on the continent.
American companies are already visible in many African countries, with close to 600 of them in South Africa.
The U.S. Commerce Department says it has doubled its presence on the continent and will soon be opening an office in Ivory Coast.
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Tackling the illicit African wildlife trade
Cecil the Lion was a summer media phenomenon. The story of an American dentist killing a Zimbabwe lion illegally after luring him out of a protected reserve generated millions of Google News hits in August and was shared millions of times on sites like Facebook.
Yet while social media has generated popular revulsion at big-game hunting, little attention has been given to Africa’s more serious problem of poaching and the illicit wildlife trade. While big-game hunting and poaching both involve the killing of magnificent creatures, the two activities are different. Big-game hunting is usually legal. It arguably promotes conservation of wild animals because the tourism and hunting fees it generates makes them of greater value to local people than just for their meat. The activity is also often an important source of revenue for African governments that may be devoted to conservation projects.
Africa’s Valuable, Vulnerable Species
Nevertheless, the uproar over Cecil provides an opportunity to focus broader public attention on the illicit wildlife trade. The illicit trade threatens the survival in the wild of species ranging from lions and elephants to pangolins and gorillas. Every year criminal networks stretching around the world traffic millions of animals and animal parts. Driven by the widespread desire for decorative objects, traditional medicinal recipes, and exotic foods, this industry has become the fourth-largest illegal trade in the world, behind narcotics, counterfeiting, and human trafficking.
Africa, with its vast diversity of wild animals and the world’s largest populations of “valuable” species, such as rhinoceros, pangolin, and elephant, has been especially hard hit. On the black market elephant rhino horn is worth more than $65,000 per kg, pangolin scales fetch approximately $3,000 per kg, and elephant ivory is worth more than $2,100 per kg. (A pair of ivory chopsticks in China costs more than $1,000.)
Some thirty thousand African elephants are killed illegally every year, with more than one hundred thousand killed between 2009 and 2012, reported National Geographic in August 2015. Africa’s rhinos now total fewer than twenty-five thousand in the wild. If the current rate of elephant and rhino poaching continues, many scientists believe these species and many others could be extinct in the wild within decades.
The trade thrives on poverty and ignorance. Within many African communities poaching is not viewed as a crime but rather as one of the few ways for local people to make money. Villagers are often unaware of how profitable a resource live animals can be. On the other hand, many consumers of ivory in China are also unaware that obtaining ivory involves killing an elephant. In Vietnam, where rhino horn is often used for medicinal purposes, many do not know that it is made out of keratin, the same material as human fingernails, and has no real medicinal value.
Targeted education programs can have success. Following one campaign against the use of rhino horn in Vietnam, polls showed that the number of people who said they would use rhino horn again fell markedly. In Africa, there are examples of poachers becoming conservationists where they can participate in the economic benefits provided by keeping the animals alive. One example is the Iby’Iwacu Cultural Village in Rwanda, where former gorilla poachers are now working to conserve the species.
A Security Threat?
Illegal animal trafficking is more than an attack on biodiversity. It is also a security and governance threat. Insurgencies, terrorist organizations, and sometimes state security services target wildlife to fund their operations, though it is difficult to get clear figures on how much money they gain from trafficking. Examples include the army of the Democratic Republic of the Congo (DRC), the Sudanese Janjaweed irregulars, and Joseph Kony’s Lord’s Resistance Army (LRA), which originated in Uganda and is now active in the Central African Republic. Some accounts suggest that groups such as Somalia’s al-Shabaab capitalized on the ivory trade by serving as middlemen. National Geographic tracked the movement of a pair of faked elephant tusks from central Africa through a poaching network as far away as Sudan. That particular ivory trade, in which Sudan’s rogue al-Bashir government may be complicit, helps finance a number of armed groups, notably the LRA.
The illicit wildlife trade imposes a high financial cost on Africa’s developing economies. For many of these countries, animals serve as a major driver of travel and tourism, bringing needed money into national and local economies. One such example is Rwanda, where last year tourism from gorilla viewing contributed $300 million to the economy, 5 percent ($15 million) of which is directly invested into local communities. Tanzania’s travel and tourism industry, which relies heavily on wildlife viewing, provides 14 percent of its GDP. Tourism plays a similar role in the GDPs of Botswana, Kenya, Rwanda, South Africa, and Uganda (ranging from 9.1 to 12.1 percent). Tourism directly and indirectly employs 12.2 percent of the Tanzanian work force. One estimate is that throughout the course of its natural lifespan each elephant contributes over $1.6 million to African economies. The negative economic impact of the illicit wildlife trade on countries like Tanzania, where the elephant population has declined by more than 60 percent (from over 109,000 to just over 43,300) over the last five years, is significant, though exact figures are hard to come by.
Counter-Trafficking Efforts
China and the United States are the two largest markets for the illicit wildlife trade, and reduction of demand in both is essential. In May 2015, the Chinese government announced its intention to phase out the legal trade in ivory, which has served as a cover for a much larger illegal trade. However, since the Chinese government’s announcement, it has released no concrete plan for doing so.
On July 1, 2013, President Obama issued an executive order establishing the Presidential Task Force on Combating Wildlife Trafficking to develop and implement a national strategy. The task force’s 2015 implementation plan has three major objectives: strengthening government enforcement of existing law and regulation; reducing the demand for illegally traded wildlife; and building international cooperation, including public-private partnerships.
One step is strengthening law enforcement. In 1989 Congress passed the African Elephant Conservation Act, which banned a commercial market for new ivory. Over time, this legislation grew to include other species and wildlife products. However, these laws have had loopholes now targeted by newer legislation. Most recently, President Obama has called for a ban on interstate ivory trade, excluding specific items such as antique piano keys and antique guns that contain ivory. In addition to federal initiatives, several states are considering legislation restricting the intrastate trade. California, New Jersey, and New York have already passed such legislation.
Beijing and Washington must also work with other nations to combat the trade. The United States should support diplomatically and financially the efforts by the UN Convention on International Trade in Endangered Species (CITES) to combat the illegal trade. There are 181 parties to the convention. The U.S. government should continue to work with CITES to help develop better monitoring systems of known trafficking routes and to make intelligence, training, equipment, and funding available to resource-starved African governments. The United States should also work with CITES to encourage the Chinese government to take the necessary next steps. Washington should continue to hold the position that there should be no legal trade for products from endangered species, such as ivory and rhino horn.
Partners for Africa
In a time of budget austerity, the Obama administration should ensure sufficient funding for the federal agencies responsible for enforcement of the laws and regulations against the illicit wildlife trade. When the administration launched the Presidential Task Force on Combating Wildlife Trafficking, the United States contributed an initial $10 million for training and technical assistance to Kenya, South Africa, and other countries. Over the last year the United States has taken the lead internationally and invested more than $60 million in international programs to address wildlife trafficking. In turn, the Chinese government has also contributed $10 million to support wildlife protection and conservation in Africa. Funding must continue. For their part, conservation activists should press the U.S. states considering legislation against the ivory and rhino horn trade, such as Connecticut and Massachusetts, to pass and enforce these bills. By doing so conservationists can close the loopholes that have allowed the illicit trade to be prosper.
In the longer term, the federal government and conservation bodies should promote stronger partnerships with African governments and with the African tourism industry. By facilitating partnerships among governments, wildlife services, private business, and nongovernmental organizations, the United States could promote practical steps, such as improved training of park rangers and better educational campaigns targeted at villages. Partnerships can also target and expand educational campaigns directed at raising awareness among potential consumers of the illicit trade, as has been done in Vietnam.
More specifically, the executive branch of the U.S. federal government should share relevant intelligence and provide training in intelligence gathering to African governments combating poaching. One ongoing, successful example is the U.S. Customs and Border Protection Service training Tanzanian customs agents to use ivory sniffing dogs. By working with its African, Chinese, and other international partners to protect Africa’s wildlife, Washington has an opportunity to save Africa’s iconic species while also promoting regional security in Africa.
Related News
Range of changes spur pace of growth in Africa’s retail sector
Africa’s retail profile has undergone a tremendous change over the past couple of decades, as an influx of cheap Chinese goods, better technology and increased personal income have changed the way people shop.
Sprawling markets where live chickens, cassava roots and colourful locally made fabrics still thrive but increasingly they must share the terrain with hi-tech vendors and branded football shirts featuring clubs such as the Abu Dhabi-owned Manchester City.
Communication is arguably the most significant long term retail development, universally applicable across Africa. With fixed-line communication spotty at best, the mobile phone revolution has swept the continent.
In 2001, there were fewer than 21 million mobile phones in circulation in Africa; now, 735 million mobile phones are in use, according to a study by M&C Saatchi Mobile, a global mobile marketing agency.
This in turn has created a thriving business in handsets and mobile phone stores have become an indelible part of the African urban landscape.
The growth in mobile phones has also led to fibre-optic submarine cables to Europe, the Middle East and elsewhere, installed to help build up broadband capacity across the continent.
As the internet spreads, so has online shopping.
According to Bidorbuy, the South African version of eBay that dominates the continent, “generator” is the most searched for item.
“Trends include new channels for basics and dry goods, continue on to fresh produce and modern shopping channels, as well as online retailing which already starts to establish in markets like Nigeria,” says Mirko Warschun, an AT Kearney partner and the leader of the firm’s consumer industries and retail practice for Europe, Middle East, and Africa.
China’s vast production of low-cost goods is an unrelenting force influencing price-sensitive African consumers.
China is now Africa’s largest trading partner and the Asian powerhouse sells good worth about US$100 billion a year, mostly in manufactured goods, to the continent, according to the World Bank.
The phenomenon has produced its share of fierce criticism, centred around the claim that Chinese products are pushing out local entrepreneurs who cannot compete on prices.
Yet it has also produced a thriving class of African small businesses that depend on the very same cheap products to thrive.
More than 20,000 Africans are estimated to live in China’s export-oriented Guangdong province, the majority earning a living as middlemen for the thriving cross-continental trade.
It is a trade that can only grow.
Related News
Intra-continental trade in Africa to feature prominently as Africa’s industry giants gather in Johannesburg
Africa’s richest man‚ Aliko Dangote‚ together with investment banker Dr Enos Banda‚ Prof Pat Utomi‚ founder and CEO of the Centre for Values in Leadership‚ and Prof Nick Binedell‚ founding director of the Gordon Institute of Business Science‚ are just a few of the African business leaders who will headline the first annual African Business Leaders Forum (ABLF) event to be held in Johannesburg this year.
Scheduled to take place from December 9-12 at the Sandton Convention Centre‚ the high-level conference has already attracted some of Africa’s most prestigious and influential business leaders.
Participants will address key issues and explore opportunities for growth in various sectors including mining‚ infrastructure‚ ICT and agriculture.
The line-up will also include Angola’s Isabel dos Santos‚ South Africa’s Patrice Motsepe‚ Ethiopia’s Mohammed Al Amoudi‚ Kenyan businessman Chris Kirubi‚ as well as Folorunsho Alakija‚ the richest woman in Nigeria.
The conference will follow hot on the heels of a summit for Africa’s heads of state and the leadership of China‚ which will be held at the same venue.
The summit agenda is expected to include Africa’s trade relationships with China at political level. The forum event‚ on the other hand‚ will seek to debate business-related challenges in order to reach resolution to influence policies on intra-Africa trade.
Head of the ABLF initiative and entrepreneur‚ Ezra Ndwandwe‚ considers the forum a prime opportunity to discuss how African businessmen and women can engage in constructive debates with tangible outcomes around the advancement of intra-continental trade between African countries.
“Africa is host to the majority of the world’s 10 fastest growing economies‚ with more than $1.671-trillion of potential wealth that remains untapped‚” he said.
The last two days of the event will be dedicated to the youth chapter.
Ndwandwe believes that young businesspeople will seek to hold elders accountable for economic development. For the first time‚ African youth will determine their own business path for intra-Africa trade.
Younger speakers such as 25-year-old Sanele Makinane‚ winner of the second season of locally pioneered entrepreneurial reality TV show The Big Break Legacy‚ also feature on the programme. He will co-direct the youth chapter programme on the last two days of the forum (December 11-12) with 27-year-old Nigerian Prince Siddiq Fodio.
Fodio is a business partner in Zircon‚ the largest telecommunication equipment maker in the world and official distributor of Huawei. Currently‚ he is doing his Masters in International Business Management at Middlesex University in London.
“The inclusion of the youth and their contribution to building a thriving economy with innovative perspectives and concepts is essential at such a prestigious event‚” said Ndwandwe.
He said corporates with a passion for development in Africa were also key stakeholders of this forum.
“Stronger intra-continental trade will bring us one step closer to taking ownership of the African economic agenda.
“The ABLF has been structured in a way that it will encourage the kind of engagement and dialogue that is needed to spur the continent towards economic transformation. To that end‚ the forum is expected to come up with tangible and actionable resolutions.”
Ndwandwe said strong business guidance was imperative if the continent’s full potential is ever to be realised.
“The fact that Africa can produce inspiring‚ successful business leaders such as the ones featured in this forum‚ proves that this transformation is well within our reach.”
The event is expected to attract more than 2‚000 attendees from all over the continent.
“The main objective of the event is to acknowledge the need for change‚ start conversations around intra-continental trade and ultimately reinforce the idea that the continent has the ability to develop a competitive and thriving economy‚” said Ndwandwe.
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tralac’s Daily News selection: 21 September 2015
The selection: Monday, 21 September
Mapping the future of development economics: access the UNU-WIDER conference presentation slides
In preparation: a UNECA report on industrial policy in Africa, compiled by @haugejostein, Ha-Joon Chang
European Parliament Trade Committee meets today, Tuesday: agenda, documentation [Profiled document: draft motion on the state of play of the Doha Development Agenda in the view of the 10th WTO Ministerial Conference]
South Africa: Development Indicators 2014 (GCIS)
The Development Indicators publication is one of our key sources for tracking progress towards achievement of the National Development Plan Vision 2030, on annual basis. Whereas the production of this publication predates the adoption by our country of the NDP 2030, the majority of indicators identified at the outset and tracked since then, remain pertinent to the present. This 2014 publication is useful in many respects. It is the first to be produced since government published the 20-year review in 2014, and thus further enriches the evidence-base that informs the design and delivery of our socio-economic development programmes.
The Development Indicators 2014 include a section on good governance, where we monitor the efficiency of revenue collection, audit outcomes of the different spheres of government, the perceptions of corruption, transparency in budget processes, the public’s opinion on the delivery of basic services and the ease of doing business in South Africa. These measures are useful in assessing the NDP goal to build a capable and developmental state. [The author: Minister Jeff Radebe] [Various downloads available]
Priorities of government: media briefing (RSA Department of Planning, Monitoring and Evaluation)
The importance of reliable data for monitoring and evaluation cannot be overemphasized. Currently, there is a process of upgrading the data collection system to provide real-time data that can be used effectively in monitoring and evaluation of government’s Programme of Action. I have directed DPME and StatSA to work on the most cost effective way of developing real-time and effective data collection systems that will assist effective monitoring of the 14 priority outcomes. [National Planning Commission: new members]
World Bank and Switzerland to support South African cities (World Bank)
The World Bank Group and the Embassy of Switzerland have signed a $9m Trust Fund agreement to support South Africa’s efforts to improve the performance of its large cities by making them more inclusive, productive and sustainable. The CSP seeks to improve targeted areas such as business-enabling environment; public financial management; infrastructure finance; land management and urban regeneration; and integrated urban transport planning over a five year period. This trust fund is the latest in the growing partnership between the World Bank Group and SECO to support South Africa's development priorities.
Ivan Turok: 'Careless, unexamined expansion threatens SA cities' (Business Day)
Lauren Royston, Yahia Shawkat: 'The idea of new cities may be folly' (Business Day)
Ghana: Restructuring the National Development Planning Commission (GhanaWeb)
This is the time to draw up bold and ambitious plans for concrete, accelerated, progressive, and sustained development. I am very pleased that the National Development Planning Commission has drawn up a 40-year National Development plan to guide the various political parties as they ascend to the reign of government. We cannot develop the nation with the disjointed manifestos of the various political parties as they are not seamless and not compatible with each other. They do not complement each other and more often than not, projects and developments by previous governments are often discarded by subsequent governments. There is a complete break in the process of our development every time government changes hands. This is the reason we need the 40-year Development Plan as a standard guide, a developmental blueprint, a framework, which will be flexible enough for the various political parties to align their manifestos with. [The author: Dr. Gabriel Asare Ayisi]
Absence of reliable data Nigeria’s bane – Statistician General (Vanguard)
The Statistician General of the Federation, Dr. Yemi Kale, says lack of comprehensive and harmonized data for monitoring targets contributed in denying Nigeria most of the Millennium Development Goals by 2015. Dr. Kale made the assertion during the stakeholders’ workshop on data mapping for Sustainable Development Goals (SDGs), in Abuja. This he said resulted in serious difficulties and challenges midway through implementation of the MDGs process, most especially in ascertaining Nigeria’s status in the process.
Nigeria: Ageing population set to increase amidst economic downturn (Daily Independent)
The National Population Commission has given indications that the aging population in Nigeria would see a steady increase in the years ahead, despite dwindling economic fortunes. The Commission however noted that life expectancy rates of Nigerians would gradually increase if the prospects for economic recovery by the Federal Government was anything to go by.
Kenya: Social-economic atlas good for planning, counties told (Hivisasa)
County governments have been asked to make use of the recently launched Social-Economic Atlas of Kenya by the Planning and Devolution ministry to help them prioritise key areas of development. Boniface Kiteme, Director of the Centre for Training and Integrated Research in ASAL Development (CETRAD) who co-authored the atlas with Kenya National Bureau of Statistics and Switzerland based Center for Development and Environment, said the atlas combines geographic and social-economic data that can enable policy makers and development experts in counties to understand issues affecting their people. [Highlights of The Socio-Economic Atlas of Kenya]
Rwanda: National Risk Atlas launched (UNDP)
The Government of Rwanda has launched its first National Risk Atlas, the first-ever comprehensive risk profile developed in Africa. In collaboration with UNDP, the World Bank and the European Union, the National Risk Atlas was developed through a comprehensive risk assessment to provide to the Government of Rwanda guidance in national planning and policy-making on disaster risk reduction.
Zambezi River Basin: strategic plan, law review (HydroWorld)
The eight-nation Zambezi Watercourse Commission has renewed calls for expressions of interest from consultants to develop a strategic plan, harmonize national water laws and upgrade the hydro-meteorological system for the Zambezi River Basin Management Project in southern Africa. Responses to three solicitations now are due September 25. [Procurement details]
Taking stock of the Global Partnership for Development (UN)
The “Taking Stock of the Global Partnership for Development” report of the United Nations MDG Gap Task Force monitors the recent achievements and challenges in the implementation of the Millennium Development Goal 8, while looking ahead towards the new sustainable development agenda that will be adopted by world leaders at the Sustainable Development Summit this month (September 25-27), and which will include the launch of a new set of Sustainable Development Goals. [Various downloads available]
Ricardo Meléndez-Ortiz: Reflections on global economic governance at the “start of a new era” (ICTSD)
Kikwete chairs health crises response panel (Daily News)
Third conference on China-Ethiopia production capacity cooperation (Ethiopian Herald)
The Conference on China-Ethiopia Production Capacity Cooperation took place in Zhejiang Provincial State on 6 September. This was third business forum attended by the high-level Ethiopian delegation in China, according to MoFA. Zhejiang Provincial State is known for its small and medium scale industries in textile, leather and agro-processing, and the Prime Minister said these were exactly the areas on which the Government was focused and in which Ethiopia needed quality investment.
Malawi: Public finance management institutional support project (AfDB)
The project adds value to Government and other development partners’ efforts to address the PFM challenges faced by the country. It will contribute to: (i) addressing the weaknesses in the PFM institutions, as a priority for the GoM and its partners; (ii) strengthen the fiduciary systems in government institutions, by promoting transparency and tackle corruption and leakage in public funds; (iii) strengthen revenue mobilisation efforts of Government thereby reduce financing risks arising from delayed, reduced or suspended foreign aid; and (iv) help consolidate and sustain the gains realised through the Bank’s previous and the on-going operations and interventions by other DPs.
Swaziland must repay SACU E1 billion (Swazi Observer)
The finance minister explained that SACU receipts continued to be the country’s major revenue source. However, in 2016/17 SACU receipts would decline by about 33% from E6.9 billion in the current financial year to about E4.5 billion. He said this decline comes as a result of the fact that SACU CRP under collected by E7.6 billion in 2014/15. “Emanating from this under collection and in line with the 2002 SACU agreement, Swaziland will pay back to the CRP above E1 billion. The Other SACU partners will also pay back to the CRP varying amounts,” he said. Dlamini said the under collection for 2014/15 has to be made up in 2016/17 in line with the SACU agreement. This stipulated that the CRP forecast used to calculate the size of the revenue shares for the member states in the year must be reconciled with the actual and any adjustments be done two years after the year of under collection.
West Africa: Harmonizing policies for the management of mining resources (UNECA)
The meeting (6-7 October) will assemble the experts of the ministries in charge of mines and natural resources of the Member states of the ECOWAS, country-level officials of the Extractive Industries Transparency Initiative, mining experts of the ECOWAS and WAEMU Commissions, as well as experts from other structures of the UN and international development institutions working in the field of natural resources in West Africa. The participants will discuss the problem of the effective consideration of the African Mining Vision, the Directives of the ECOWAS and the EITI Standards and Principles in the main policies, laws and regulations on mining in the ECOWAS countries.
Rwanda Civil Society Agriculture Forum: update (New Times)
At least 60 civil society organisations yesterday inaugurated a joint forum to harmonise their voice in advocating for development of the agriculture sector in the country. Among the priorities of RCAF include advocacy to ensure effective participation of non-state actors in the formulation of agriculture policies and the agriculture budget making processes, coordination of efforts in the sector, and advocating for changes in some of the current agriculture policies in the country.
Alternative futures for global food and agriculture: developing robust strategies (OECD)
The global food system faces a range of challenges which will shape developments towards 2050. Feeding a growing and more affluent population while preserving sensitive ecosystems, competing for access to limited land, water and other natural resources, increasing agricultural productivity growth while both adapting to and mitigating climate change and other threats, and contributing to rural area well-being: the future for food and agriculture poses numerous trade-offs, challenges and opportunities. Three contrasting scenarios are developed to sketch different views on how the world may unfold towards the middle of the century:
Kenya to hold international investment conference (Global Post)
Kenya is planning to host an international investment conference from Nov. 22 to 25 to attract investors for projects, including expansion of airports, railway, tourism, roads, dams and energy projects. Kenya Investment Authority Managing Director Moses Ikiara said the investment summit would present investors with "business unusual plans" in wind energy, solar power, nuclear power plants and long-term projects in the oil, gas and geothermal sectors.
Infrastructure investment demands in emerging markets and developing economies (World Bank)
The authors have assembled 1960–2012 infrastructure stock data from 145 countries to estimate the demand for infrastructure services in emerging markets and developing economies. This paper identifies that the required resource flows to satisfy new demand while maintaining service for existing infrastructure amounts to $836 billion or 6.1 percent of current gross domestic product per year over the period 2014–20. The annual infrastructure investment gap for emerging markets and developing economies is $452 billion per year, which implies that emerging markets and developing economies should almost double their current spending.
PIDA: AU Infrastructure and Energy Department concludes preparatory meeting (SomalilandPress)
Inaugural Africa Islamic Finance Forum: update (Saudi Gazette)
ARMFA: ‘Bridge financial gaps for road works' (Times of Zambia)
US Chamber of Commerce partners with West African business group (The Hill)
Migration and fragility: briefing paper (OECD)
South Africa takes measures to tackle fallout from China slowdown (SCMP)
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