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N$223.5 bn needed for infrastructure development
It is estimated that government will require about N$223.5 billion over the next four years to finance infrastructure projects in Namibia.
According to the Director of Research and Chief Economist at the Bank of Namibia, Florette Nakusera, this figure is broken down into N$17.9 billion for roads, N$60.9 billion for railways, N$34.9 billion for ports, N$9.7 billion for airports, N$50.8 billion for energy and N$45 billion for housing.
Speaking at the Bank of Namibia’s 16th Annual Symposium, which took place in Windhoek yesterday under the theme “Financing of Infrastructure for Sustainable Development in Namibia”, Nakusera said available funding for infrastructure during the next four years adds up to about N$73.5 billion, leaving a shortfall that needs to be financed through alternative sources of about N$150 billion.
Speaking on behalf of the Director General of the National Planning Commission (NPC), Tom Alweendo, the Permanent Secretary in the NPC, Leevi Hungamo, said: “The importance of infrastructure in support of economic growth has long been recognized. However, the provision of infrastructure services to meet the demand of businesses, households and other users, is one of the major challenges of economic development.” He added that the failure to invest in infrastructure determines the future development of a particular country or region, thus infrastructure is an important term in judging a country or a region’s development.
Hungamo further noted that a huge gap exists in the world between required infrastructure and the existing infrastructure. He mentioned that statistics on the global level shows that an estimated 1.1 billion people live without safe drinking water, 1.6 billion live without electricity, 2.4 billion do not have proper sanitation and more than 1 billion are without access to an all-weather road or telephone services. According to Namibia’s 2011 Housing and Population Census, 20 percent of Namibian households do not have access to safe drinking water, about 70 percent of households have no access to electricity for cooking and 60 percent of households have no access to proper sanitation.
“There is a huge discrepancy in accessing these services across regions and between rural and urban areas and the gap is more pronounced in sub-Saharan Africa and Asia. Therefore, the key to African renaissance is in the development of extensive, adequate and quality infrastructure,” remarked Hungamo.
During his welcoming remarks at the annual symposium, Bank of Namibia Governor, Ipumbu Shiimi, noted that Namibia generally has a good core physical infrastructure relative to other sub-Saharan African countries.
“Despite vast geographical size, Namibia has managed relatively well to develop good transport networks, electricity distribution lines, water and telecommunications across the country. However, more investment in infrastructure is still needed if Namibia is to achieve higher and sustained growth and achieve Vision 2030,” remarked Shiimi.
The Bank of Namibia Governor continued that there is now a greater need to revamp key existing infrastructure and to build new infrastructure as the existing ones have reached the end of their lifecycle. Priority infrastructure includes new roads, deepening and modernizing port facilities, houses and upgrading of power generation capacities.
Shiimi explained that since independence, government has consistently invested in various development projects of an infrastructural nature. “Financing of these projects was mainly done, directly and indirectly, through the annual budgetary allocations, which was funded with the income collected from taxes and debt. Of late, state-owned enterprises were encouraged to raise funds on the capital markets, either through their own balance sheets or backed by government guarantees, and more recently to engage in public-private partnerships,” said Shiimi.
In Namibia, the national budget is the main source of infrastructure financing among government financing initiatives.
Government’s capital expenditure since independence until 2009 has been less than 6 percent of gross domestic product (GDP), which is contrary to the first National Development Plan’s (NDP1) pronouncement to have capital spending 6 percent of GDP.
The average spending for 2010 to 2012 was about 6 percent and this was attributed partly to the implementation of the Targeted Intervention Programme for Employment and Economic Growth (Tipeeg).
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Eastern African Insurance Regulators conclude Seminar on Regulatory and Supervisory Frameworks
Insurance Regulators from Eastern Africa today concluded a two week seminar in Dar Es Salaam on the regulatory and supervisory frameworks in the region. Their discussions were also focused on developing an action plan to enhance, and to stimulate further regional cooperation.
The seminar titled Building More Effective Insurance Supervision which attracted participants from across the region, was organized jointly by the Toronto Centre and the International Monetary Fund’s (IMF) Africa Regional Technical Assistance Center for Eastern Africa – East AFRITAC (AFE) in cooperation with the Tanzania Insurance Regulatory Authority.
The seminar was motivated by the growing importance of the insurance industry in the region, the increasing cross-border operations and the as well as significant regulatory challenges that are faced by practitioners in the region.
In his opening remarks, Mr. Juma Juma Makame, Deputy Commissioner of the Tanzania Insurance Regulatory Authority, emphasized that further regional cooperation is necessary not only in developing effective frameworks to supervise the cross-border activities of insurance companies, but also to realize the convergence and harmonization of frameworks within the East African Community (EAC) Partner States.
During the seminar, participants discussed their country priorities with regard to enhancements to be made to the supervisory and regulatory frameworks, and also with regard to consumer education. Participants received training and assistance on developing action plans and on the implementation of the measures needed to effectively realize some of the country priorities. In addition, technical presentations were held on financial analysis, capital adequacy, stress testing, on- and off-site supervision, intervention, enforcement and winding-up, and participants worked in groups on several case studies.
Speaking at the closure of the seminar Ms. Anna Msutze, Director of the Financial Stability Directorate of the Bank of Tanzania addressed the participants on the evolving financial stability function and the set-up of the Financial Stability Forum in Tanzania as a means to implementing effective macro-prudential oversight. She highlighted the importance of the risk transfer function of the insurance sector and its contribution to the creation of a more stable operating environment for households, non-financial corporations, financial institutions, and public sector entities giving them greater certainty in their forward planning and more entrepreneurial freedom. This reinforced the importance of establishing effective supervision and to address the topics discussed during the seminar.
Twenty-nine insurance supervision officials from 8 countries (Burundi, Eritrea, Ethiopia, Kenya, Rwanda, South-Sudan, Tanzania, and Uganda), a representative of the Secretariat of the East African Community and two Financial Stability experts of the Bank of Tanzania attended the seminar.
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Who is not cooperating with China?
Senior Chinese officials and scholars attending a global conference have said it is “unfair and deceitful” for some western countries to condemn the China-Africa partnerships yet the same countries are actively working with China to develop their own economies.
Scholars from China and Africa are attending an International Conference on African Agriculture, Rural Development and Sino-Africa Cooperation, which opened on 21 September in Nanjing, China.
“There is something wrong with the world we live in today,” Prof Liu Chengfu said.
“China is cooperating with virtually everyone, and when we deal with European countries or America, then the relationship is normal and ok.”
“However, when we cooperate with Africa, the partnership is suddenly viewed with suspicion.”
Prof Liu is vice director of the China Society for Africa Studies at Nanjing University.
He said despite a blooming relationship that has seen trade between Africa and China increase exponentially over the past decade, the Sino-Africa partnership continues to receive negative attention from some western countries, and China’s increasing engagement with Africa is often portrayed as prowling the resource-rich continent.
Yet one of the major milestones of Sino-Africa cooperation is that Africa is rapidly gaining recognition on the global market.
Furthermore, research shows that, compared to many years of African engagement with Europe and America, the Sino-Africa relations have yielded more benefits more quickly.
Prof Liu said China and Africa need to work together in addressing this misconception, perpetrated by those who “feel threatened” by this blossoming relationship.
The Director of the Department of African Affairs in the Ministry of Foreign Affairs, Lin Songtian concurred, saying it is sad to note that some developed countries do not want to consider Africa as an equal partner in the global market.
Rather, they want Africa to remain on the periphery as a source of raw materials and not a manufacturer of finished goods.
“Africa will not be politically independent if it continues to rely on aid,” he said, adding that it is for this reason that China does not offer aid but is interested in fostering a win-win partnership that is based on mutual trust and respect.
He said Africa has the capacity to become a major player on the international stage, and China stands ready to assist the continent to achieve its developmental goals.
These goals can be achieved by boosting agricultural production, he said, as the sector has a greater capacity than most other industries such as tourism to be a lynchpin for socio-economic development, mainly because investment in agriculture benefit the people directly, especially poor people, of whom a significant number are farmers on the continent
“Africa is gifted with numerous resources such as land, water, good climate and labour force to feed itself,” said Ambassador Lin, who is a former ambassador to Liberia and Malawi.
“China is willing to share experiences with Africa on how to transform its agriculture sector.”
He urged Africa to invest more in infrastructure development, including road and rail, to ensure the smooth movement of farm produce, services and people across the region.
There is also need for the continent to increase the use of irrigation, technology and research to boost production.
Another major issue for Africa is to co-opt youths and women in agriculture development, since these make up the majority population in the region.
The International Conference on African Agriculture, Rural Development and Sino-Africa Cooperation (CAARDSAC), which runs from 21-28 September, aims to create a platform for better communication and scholarly exchange among Chinese and African researchers.
Some 20 researchers from Africa are participating in the conference, which coincides with the 50th Anniversary of the Centre of African Studies of Nanjing University (CASNJU).
CASNJU was established in 1964 and has played an important role in promoting African studies in China.
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As development goals near deadline, Ban urges global leaders to ‘finish the job’
Great gains have been made in the global effort to achieve the Millennium Development Goals, known worldwide as the “MDGs,” but with the deadline fast approaching more must be done to fully meet the targets set for 2015 and beyond, Secretary-General Ban Ki-moon said on 25 September 2014.
In his remarks to a gathering of 300 global leaders convened by the MDG Advocacy Group, Mr. Ban applauded the successes made so far in pushing forward with the Goals and in having “raised awareness, mobilized resources, and helped shape policy.”
“The MDGs have transformed the lives of millions of people,” he told delegates at the gathering, which was held on the margins of the General Assembly’s annual high-level debate.
The meeting, organized by the MDG Advocacy Group, a body of global leaders and eminent personalities assembled by the Secretary-General to promote the implementation of the Goals, also marked the release of the Group’s latest report – Accelerating Action: Global Leaders on Challenges and Opportunities for MDG Achievement – which confirms the strides made so far.
The eight MDGs, agreed by world leaders at a UN summit in 2000, are described as a 15-year roadmap to fight poverty, hunger and disease, protect the environment and expand education, basic health and women’s empowerment.
According to the new report, in fact, the past two decades has seen the likelihood of a child dying before the age of five nearly reduced by half while the maternal mortality ratio has dropped by 45 per cent. At the same time, antiretroviral therapy for HIV-infected people has saved an estimated 6.6 million lives and another estimated 3.3 million people were saved from malaria due to the diffusion of major preventions such as bed nets and treatments. Efforts to fight tuberculosis, meanwhile, have saved an estimated 22 million lives.
“Fewer people are in poverty. More children are in school. We are making inroads in the fight against malaria and tuberculosis. Families and communities have greater access to an improved drinking water source,” the Secretary-General noted.
With 462 days remaining until the MDG deadline, the report strikes an optimistic note, adding that with many of the Goals already met – including the reduction of poverty, increasing access to clean drinking water, improving the lives of slum dwellers, and achieving gender parity in schools – many more targets are also within reach by the end of 2015.
But, Mr. Ban warned, much more remained to be done in order to “finish the job.”
“We must do more to finish our targets on hunger and chronic child malnutrition. Faster progress is needed to meet the goals of reducing child and maternal mortality and to improve access to sanitation,” he continued.
The Secretary-General urged delegates to help focus on what he described as “two critical fronts” in the battle towards realizing the Goals: accelerating progress towards meeting the MDGs and preparing for a post-2015 world.
“We need a strong successor framework in place,” affirmed Mr. Ban. “Building mechanisms for effective partnerships and multi-stakeholder accountability will be critical to the success of the post-2015 development agenda.”
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‘The future of Africa is in unity’, says Niger’s President, among continental leaders at UN Assembly
Addressing the United Nations General Assembly at its annual high-level debate, Mahamadou Issoufou of Niger warned today against attempts to balkanize Africa and underscored that the post-2015 sustainable development agenda need to be anchored in the “three D’s”: defense, democracy and development.
“The Pandora box of balkanization that is open in Africa needs to be closed again if one does not want the whole continent to go up in flames,” said President Issoufou, the first of several African leaders to address the General Debate of the 69th Assembly
“The future of Africa is in its unity. The move beyond the borders inherited from colonization is not to create new borders along ethnic or religious bases but to go beyond the current boundaries via integration,” he added.
Africa will be the continent of the 21st century with a strong middle class born out of good policy and economic governance that eases poverty through income distribution, the President noted.
The leader of the West African country highlighted conflicts in neighbouring Libya, Mali and Nigeria. He warned the international and local communities that it would be dangerous to let the insecurity grow instead of helping to bring about a peace, and called for a strategy that cuts off financing and blocks a terrorist strategy that uses propaganda heavily covered by the press adn social media.
In his address, Mohamed Moncef Mazouki, President of Tunisia, said that his country was moving ahead with a peaceful democratic transition, though it and its people had lived for many years under despotism.
“We are trying to grapple with the counter-revolution with moderation and ending the residue of despotism.” he said, emphasizing that Tunisia is also initiating socio-economic development that will be in harmony with the environment and in line with the sustainable development goals of the UN.
Yet, Tunisia’s progress was occurring “at the heart of a region that had witnessed political conflagrations” and the heinous activities of armed groups aimed at undermining the drive for democracy. He was ver concerned, for example, about the situation in neighboring Libya, and hoped that the leaders there would soon agree on a peaceful democratic State without outside influence or interventions. The wise men in the country must preserve national consensus.
More broadly, he expressed deep concern about the activities of armed groups committing grave acts in the wider region and the Middle East. Tunisia was ashamed that such acts were being carried out in the name of Allah, who was for peace and humanity. Nothing justifies this violence, which has reached such unprecedented levels, Mr. Mazouki said. Condemning the heinous killing of prisoners or hostages no matter what nationality they are, he said: “we are all human beings.”
He went on to say that regimes must rule in harmony with the will of the people. They must promote development, education and other polices which would lead to unifying societies and improving living standards. Some of the major powers had supported despotism for many years under the pretext of ensuring stability. Turning to the Israeli-Palestinian conflict, he called for lifting of all blockades on Gaza and throughout the territory. The Palestinian people are crying out for rebuilding their devastated lands, he added.
Finally, he reiterated his country’s call for the creation of an “international constitutional court” which would give advice on such issues as elections and adherence to international legal norms. Mr. Mazouki said that he hoped such a tribunal would soon “see the light of day”, bringing about the end of despotism. He hoped that process would not take as long as it taken to create the International Criminal Court (ICC).
Also addressing the Assembly, Hery Martial Rajaonarimampianina Rakotoarimanana, President of Madagascar, said that his country was home to five per cent of the world’s biodiversity. As such, when he took office, he had “declared war” on traffickers of rosewood, as well as on all those traded in protected species. He also established an inter-ministerial committee that monitored Madagascar’s “zero tolerance policy” on all trafficking of wildlife and natural resources.
Yet, the President continued, traffickers were able to thwart the stringent oversight measures, largely because of shortfall in resources. Madagascar’s location made it imperative to protect its natural environment and marine resource. It was a perilous region, vulnerable to piracy and all manner of trafficking. While addressing other pressing issues, the Government had been able to declare nearly 10 per cent of the country as protected natural reserves.
On other matters, he said that after years of political instability and crippling polices and measures such as sanctions, Madagascar will not reach the Millennium Development Goals (MDGs) by 2015. However, the country is undertaking a major drive to invest in its people, enhance its infrastructure, expand education opportunity and boost ICT use. Citing one major example, he said more than 100 basic healthcare centres had been opened in recent months.
In additions, President Rajaonarimampianina said tangible results had also been achieved on the security front including, curbing massive cattle theft in parts of the country. As for the post-2015 development agenda, he said that Madagascar was committed to creating a modern, open and transparent nation that respected human rights. “
“Our primary goal is to bring our people out of their precarious situation,” he said, citing major projects to boost Madagascar’s agriculture sector. The aim is not only to improve livelihoods at home, but to transform Madagascar into a “food hub” in the region. He added that his Government is also working hard to create jobs and enhance its tourism infrastructure, both of which are vital for development.
Since Wednesday, speakers have taken to the podium in the UN’s renovated General Assembly Hall to address the 193 Member State on the theme of “Delivering on and Implementing a Transformative Post-2015 Development Agenda” as well as urgent crises ranging from the ongoing conflicts in Syria, Iraq, Ukraine and South Sudan.
Climate change was among the topics noted in the addresses of other leaders today, including Ethiopia’s Hailemariam Dessalegn. The Prime Minister told the Assembly that climate change is undermining his country’s efforts to meet its development aspirations, including the Millennium Development Goals (MDGs).
He called for international support on mitigation and adaptation, to adequately recognize the efforts of his country to minimize the impacts of climate change.
“Although we have contributed virtually nothing to global warming, we are indeed playing a leading role in terms of mitigation by scaling up our efforts in renewable energy and promoting energy efficiency,” Mr. Dessalegn said.
“It is only fair and proper that this be adequately recognized and supported,” he added, noting that the world has the capacity and resources to address the challenges, though it still requires leadership and political commitment at all levels.
He also addressed the security situation in the region, including the fighting in neighbouring Somalia, and ongoing crisis in South Sudan, towatds whose peaceful resolution Ethiopia is cooperating with the UN, the African Union and other international partners.
“We cannot be oblivious to the nexus between our sustainable development agenda and the global situation of peace and security,” Mr. Dessalegn cautioned.
In his address, Al Hadji Yahya Jammeh, President of Gambia, said it was well known that injustice, iniquities, exclusion and greed created international tensions that could lead to catastrophic consequences. This is exacerbated by the “lamentable inertia on the part of the United Nations” as powerful Member States took advantage of weaker ones. The founding fathers of the Organization had intended a world body committed to promoting the principles of peace and security, respectful of the cultural values of all peoples.
To uphold those principles, the Member States needed to avoid all forms of aggression by exercising maximum restraint in their pursuit of national interests. When there were wars, the world economy suffered. The UN must be an all-encompassing global body working in the service of all, and not just for a few, he said.
Mr. Jammeh said the international community should build from the implementation of the Millennium Development Goals to face the challenges of the day. The themes of this year’s General Assembly were thus timely, and gave impetus to further the international agenda post-2015. There is a need to take stock of the Millennium Development Goals’ achievements and failures, particularly struggling countries that would not meet their targets on time.
There are a few current issues in which the United Nations could play a stronger role, he said. One such case is the Ebola disease. For the affected countries, development efforts are now on hold as they grapple with the virus. Humanitarian aid from the United States to battle Ebola was more than just a humanitarian gesture; it was a matter of national security.
The situation in the Middle East remained dire, he said, decrying the loss of life in Palestine, especially that of women and children. Israeli settlements on Palestinian lands are unacceptable and undermine any prospect for a two-State solution. The UN has played a strategic mediating role in the past, and must take up a leading role to achieve a durable and peaceful settlement.
In his speech, the President of Gabon, Omar Bongo Ondimba, said his country has launched a national strategic plan to ensure sustainable development. “This plan stems from a vision, an approach that led to define an ambitious development that integrates the concerns reflected in the Millennium Development Goals (MDGs) and the challenges of climate change and food security.”
“It gives prominence to everything that contributes to the development of the potential of young people. The strategy implemented by Gabon aims to accelerate the structural transformation of its economy in the near future, from a cash economy to an economy of industries and services with high value added,” he added.
Mr. Bongo stressed that these efforts can only thrive in a political, economic and social environment where good governance exists, and it is in this context, that Gabon has institutional instruments such as the National Commission for the fight against illicit enrichment, whose mission is to ensure transparency and the obligation to be accountable in the management of public funds.
“Since then I have made the fight against corruption a priority and…audits and inspections are conducted extensive nationwide with consistent results,” said Mr. Bongo.
On the Ebola crisis, Mr. Bongo said that since the threat of the spread of the virus is global, national responses must be followed up by a general mobilization at the international level.
“My country, which once won the battle with several crises of the Ebola virus, proposes to provide the services of the International Center for Medical Research in Franceville, whose expertise on this epidemic is proved,” he said.
Also addressing the Assembly, Arthur Peter Mutharika, President of Malawi, said that in late May, his country had held its first ever tripartite elections, which enabled Malawians to choose their political leadership, through a democratic and peaceful process. The elections ushered him into office, as the fifth President of the Republic of Malawi. “I would, therefore, wish to inform this Assembly, that despite few challenges, the elections were free, fair, transparent and credible… Malawi has come out of the election much stronger than before.”
He went on to say that the choice of "Delivering on and implementing a Transformative Post 2015 Development Agenda" as the theme for this session of the General Assembly, could not be more appropriate. The fight against poverty, hunger, and inequality, constitutes the greatest challenge of our time, he said, adding that the theme further augurs well with the plans and aspirations of the people of Malawi.
“It is important that, the next global development agenda, should draw lessons on the successes and challenges of the current blue print, the Millennium Development Goals (MDGs). Rather than seeing 2015 as an end point, we must view it as the beginning of a new era; an era in which we eradicate extreme poverty, protect the environment and promote economic opportunity for all,” he declared.
Continuing, President Mutharika said Malawi is on track to achieving four of the eight MDGs, namely: reducing child mortality; combating HIV and AIDS, malaria and other diseases; ernsuring environmental sustainability; and developing a global partnership for development. However, it is unlikely that the country would meet the remaining goals: eradicating extreme poverty and hunger; achieving universal access to education; ensuring gender equality and empowerment of women; and improving maternal health.
“Malawi, will, therefore, be entering the post-2015 development [era] with unfinished business of the MDGs,” he said, explain that one reason for this is inadequate resources. Commitments made by development partners have been unpredictable and often times not fulfilled. “To achieve delivery of the post-2015 development agenda, the global community should not repeat this mistake,” he said, stressing that, more importantly, accountability and transparency, as well as monitoring and evaluation mechanisms, should be promoted.
Also speaking today, Jakaya Mrisho Kikwete, President of Tanzania, similarly highlighted the importance of the upcoming MDG deadline in 2015, and issued an appeal to the international community that it “not lose sight of the unfinished business of the Millennium Development Goals.”
With 461 days remaining until the MDG target date, he warned that the world risked falling short on its promises because of the “unpredictable, unreliable, insufficient and untimely availability of financial resources”, and he called for the creation of “a mechanism to ensure a stable, predictable and reliable source of finance” for nations as they pushed forward in achieving the post-2015 development agenda.
Turning to the issue of climate change, President Kikwete thanked Secretary-General Ban Ki-moon for having convened the recent Climate Summit at UN Headquarters in New York. The President noted, however, that a legally binding climate agreement is imperative and added that Africa was “appealing to all countries from all continents” to reach a consensus at the upcoming UN Climate Change Conference in Paris. “Failure is not an option,” stressed President Kikwete.
The President also voiced concern about the expanding Ebola crisis but expressed his hope that the international community bore the “technology, knowledge and financial resources, which if put together, can stand up against the threat” of the disease.
On that note, he specified four areas in which the UN, its agencies, the US and “other countries with technical-technological capabilities” could help those countries affected by the crisis, including providing a “continued and bolstered” support for the countries until the disease is contained; assisting other nations in Africa “to build capacity for surveillance, isolation and treatment”; intensify efforts to provide those affected countries with cures and vaccines; and, finally, “to stop the stigma that is developing against Africa because of Ebola” which threatens “to kill the all-important tourism trade and investments.”
Also taking the General Assembly podium, Mankeur Ndiaye, Senegal’s Minister for Foreign Affairs and Senegalese living abroad, said it was important to work towards inclusive development. His Government has put into place a national development plan as a reference point for economic and social policy.
Africa faced myriad challenges, one of them being terrorism in the Sahel, which threatened the very foundation of societies and hindered development efforts. He welcomed the Security Council’s adoption yesterday of a resolution pledging to fight extremism, militia and armed groups.
The Horn of Africa is also affected by several conflicts, and West Africa is faced with a health catastrophe now with the Ebola outbreak, he said, welcoming the resounding success of today’s Secretary-General meeting which declared that the virus is not just an Africa problem and warranted international attention and resources.
A holistic approach is needed to strengthen capacity of countries that often face reoccurring crises. To that end, Senegal pledged to continue to support UN peacekeeping operations. But in those affected countries, in addition to political resolutions, economies must also be strengthened so that people have a chance at a better life. The severity of different crises is systematic of a status quo in which reform of the Security Council continues to be bogged down.
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In DRC, an Atlas to boost renewable energies
The Democratic Republic of Congo (DRC) has adopted, for the first time in Africa, an interactive atlas of renewable energy sources.
A virtual continent, the DRC has a wide diversity of natural resources, allowing it to consider a significant growth in hydro, wind and solar energy.
With 600 interactive maps, the Atlas, created by UNDP, Netherlands Development Organization SNV and the Congolese Ministry of Water Resources and Electricity, will inform policy-making on decentralizing energy and encourage further investment in this sector.
Ultimately, Congo will aim to increase the number of sustainable development initiatives, which will limit carbon emissions while creating new livelihoods for populations across the country.
The Atlas is the result of a comprehensive series of studies carried out in remote areas of the country, and it will help to understand the needs required to meet the commitments of the DRC in the “Sustainable Energy for All” initiative (SE4All).
The latter has set three objectives to be achieved by 2030: ensure universal access to modern energy services; double the rate of improvement in energy efficiency at the global level; doubling the share of renewable energy in the global energy mix.
The Atlas reveals a number of opportunities. For example, only 217 of the 780 hydro sites identified by the Atlas were known publicly.
Another example: while the Inga dam alone holds an electricity potential of 44,000 MW, elsewhere in the country, decentralized energy sources, much of them small or mini hydro plants, could create 10 000 MW. The Atlas confirms that small hydro applications are better suited to the local market structure.
Still, the challenges are immense, as it is necessary to mobilize and coordinate large amounts of capital from the public and private sectors; promote standards and policies for energy efficiency; and implement a supportive policy environment.
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‘Ban imports of products that can be produced domestically’
The government has been called upon to ban the importation of products which can be produced by small scale entrepreneurs in the country.
Stakeholders say, markets in the country are dominated by cheap foreign produced products waging an unbalanced competition against locally produced versions.
Speaking during the opening of the Inter-religious Village Community Banks (IR -VICOBA) business exhibition yesterday in Dar es Salaam, Anglican Church of Tanzania Bishop Valentino Mokiwa said the ban will significantly boost local producers.
“The ban will help create market for local products and that way increase local entrepreneurship and create jobs…it will help end poverty,” he said
Commenting on the launched Inter-religious Village Community Banks, Bishop Mokiwa said many Tanzanians find it difficult to start their own business due to lack of initial capital, capacity limit of banks to offer loans and complicated loan procedures.
“The introduction of VICOBA will be a solution to many but the problem remaining is the matter of reliable market,” he said.
“We must support local efforts and the ban on imports of products that can be produced locally will help,” he suggested.
Mokiwa said globalisation of markets and production has produced many opportunities but also caused threats for businesses with locally manufactured goods forced to compete with products that are cheaper and of better quality from emerging economies such as China, India, and Brazil.
“These inexpensive imports are rapidly replacing locally made goods and impede small-scale manufacturers from dominating their domestic market, the government has to take action,” he said.
In his comments, Country Representative of Norwegian Church Aid Gwen Berge who supported formation of the IR-VICOBA the groups are built on strong religious values.
“In future, our emphasis will be on mobilising these groups and providing viable mechanism enterprises,” she said.
“We want to work with the private sector in a symbiotic manner leveraging all our competencies for job creation,” she said.
She said NCA will continue to practice their collective mission to see communities mobilised and empowered to address economic vulnerability and to articulate their theory for change from community mobilisation, training and knowledge formation to action, job creation and social change.
The Inter Religious Village Community Banks (IR -VICOBA) symposium and Business Exhibition commenced earlier this week in Dar es Salaam and ends today.
The, main theme for the exhibition was “Inter Religious Relations, Peace and Development: IR VICOBA as Vehicle for Development” and it attracted numerous exhibitors showcased their products and had the opportunity to network.
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Market access, packaging, finance, key to export competitiveness – experts
Diversifying the Nigerian economy away from oil would require paying more attention to making agriculture and value-adding manufacturing export more competitive.
Good market penetration and effective packaging on the part of the exporter, as well as adequate financing from banks and government would be key to achieving this, stakeholders at the BusinessDay-organised seminar entitled, ‘Agric Transformation Agenda: The Role of Non-oil Export in Economic Diversification,’ have said.
Fidel Anyanna, programme director, Dalehan Limited, who also doubles as CEO, Horeb Safety & Security Services Limited, said export financing needs could be met through advance payment for overseas buyers, internally generated funds, credit from banks to other financial institutions, as well as credit provided by the government in the buyer country.
Anyanna added that Nigerian banks’ risk-averse behaviour often resulted in small scale firms being burdened with high requirements that constrained their access to loans and financial services.
He observed that exporters needed to know that banks often looked for collateral or security for proposed lending, as well as credit worthiness and capacity of the buyer to execute the orders within the stipulated delivery schedules.
He listed financial viability of the export contract, status of the buyer’s country, along with political and economic conditions in the buyer’s contract and compliance with export trade control and exchange control regulations in force, among prospect indicators.
He said while there should be adequate infrastructure and institutional support (incentives) from the government, intending exporters should increase their access to market information and garner good export training to develop capacity to cope with the strenuous demands of the international market.
“There is the need for exporters to train on packaging and standards. The international market is based on standards, not sentiment. When you package a product so well, even someone who does not want to buy can be forced to. Again, most farmers produce without a focus as to where the products are going,” he stressed.
Joseph Idiong, director-general, Association of Nigerian Exporters, said his group had thought it wise to propagate export financing, adding that farmers must be conscious of the fact that producing for export required different levels of technology, raw materials and training.
Ivana Osagie, managing director/ CEO, Notore Seeds, pointed out that the problems facing the agric export sector could be mitigated by clustering small-scale farmers and linking them up with large-scale players, to bring them to an understanding of key processes and procedures.
According to her, agriculture must be understood as a science, rather than an art, as people from research institutions or academic backgrounds needed to be instructed on practical agricultural processes, while more should be done to mechanise agriculture, encourage internal effectiveness and economies of scale.
She further observed that Nigerian banks must think of innovative ways of encouraging financing as it is done in other climes such as the United Kingdom and other countries in Europe.
“By using the right fertilizer, applying the best practices and approaches, one metric ton can be increased to the value of 10 metric tons,” she said.
Frank Aigbogun, publisher/CEO, BusinessDay,said though people often got frustrated with the way things were done in the country, they must begin to realise that things were gradually changing, even though some might consider the changes slow and halting.
He added that the likes of Notore and the Bank of Agriculture, which were doing a lot to diversify the Nigerian economy and increase non-oil exports should be emulated by other institutions.
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William Ruto tells Africa to seal yawning gap in milk supply
Deputy President William Ruto Wednesday told African states to open up their borders for trade among themselves to close the milk deficit gaps that are currently exploited by Europe.
He said the dairy sector has great potential to transform livelihoods on the continent with the Common Market for East and Southern Africa (Comesa) having a milk deficit of two million metric tonnes that is mostly covered by imports.
He spoke during the opening of the 10th African dairy conference and exhibition at Kenyatta International Conference Centre organised by the Eastern and Southern Africa Dairy Association.
The DP urged players in the dairy industry to pressure their governments to open borders.
“Boundaries should not become hurdles but bridges that create market for the countries to enable more investments. We should read from the same script to produce more, close the deficit gap and expand markets through value addition,” he said.
The government will set up semen centres to double the amount available to farmers from 800,000 straws to improve breeds and raise production. The centres with liquid nitrogen will be built in Meru, Nyandarua, Eldoret in the first phase.
TRANSPORT AND STORAGE
The next phase will be in Voi, Sotik and Kirinyaga next year.
“We have noticed that transport and storage cost components form a huge part of the cost of semen. Going forward, we want to make the semen available and affordable to increase production,” the DP said.
The conference, which has attracted 545 delegates, was told that the dairy industry needed more investment in modern technology to meet global demand.
Mr Ruto said the Kenya Veterinary Vaccine Production Institute will turn to oil-based vaccines from water-based ones, which will reduce the cost to the farmers by 70 per cent while the Kenya Meat Commission will adopt modern machinery to improve processing.
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Africa could become single air transport market by 2016
Africa could become a single air transport market that will remove the need for bilateral air services agreements by early 2016, the industry lobby said on Wednesday.
African Airlines Association (AFRAA) Secretary General Elijah Chingosho told Xinhua that the regulatory texts and legal institutional framework are scheduled to be finalized in October.
“Guidelines will soon be formulated that will enable the African Union to carry out negotiations among the various trading blocs with a view to realizing a single African air transport market,” Chingosho said.
The Yamoussoukro Decision of 1988 calls for the liberalization of Africa air skies. Some of the reasons for the delay in the full implementation of the decision is the protection of national airlines.
Chingosho said that African Civil Aviation Commission (AFCAC) should be strengthened in order to oversee and enforce the implementation of a single air transport market
According to AFRAA, the West African region has the most liberal airspace. The reason may be that several states do not have national airlines to protect, while they require moving people and high value goods within the region. And in North Africa, Morocco has largely very liberal regime.
The East African Community (EAC) is partially liberalized while in the Southern Africa Development community region, Zambia and Zimbabwe are becoming more liberal as they wish to promote their excellent tourist facilities.
Chingosho said there is need for adequate aviation infrastructure in order to cope with the growing airline traffic, adding that in order to develop a vibrant aviation sector, safety standards within the continent must be up to global standards.
He urged African airlines to consolidate their operations to enable them to become viable operating entities which can attract financing at competitive rates.
Chingosho also said the issue of visa requirements for Africans traveling to other African states is affecting the growth of the sector, adding that if visa regimes are not relaxed, the AU vision of social, political and economic integration cannot be realized.
“It is often much more difficult for an African to get a visa to travel from one African State to certain African States than it is for a citizen of other regions,” he said.”It is unfortunate that some African states find it easier to grand favorable traffic rights to non-African airlines that are denied their African counterparts.”
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Building Competitive Green Industries: The Climate and Clean Technology Opportunity for Developing Countries
Much of the emphasis on climate change has been on urging countries to act to avoid environmental catastrophe. This new report, “Building Competitive Green Industries: the Climate and Clean Technology Opportunity for Developing Countries”, frames responding to climate change as an extraordinary economic opportunity, particularly in developing countries. The report, published by infoDev, a global innovation and entrepreneurship program in the Bank Group’s Trade & Competitiveness (T&C) Global Practice, recommends actions by the public and private sectors to foster the growing market for SMEs in the clean technology sector.
“Fostering home-grown clean-tech industries in developing countries can create a sustainable and wealth-producing sector of the economy,” said Anabel Gonzalez, Senior Director for the World Bank’s Global Practice on Trade and Competitiveness, “while simultaneously addressing such urgent development priorities as access to clean and affordable energy, clean water and climate-resilient agriculture.”
In just the last decade, clean technology has emerged as a major global market. Over the next 10 years, an estimated $6.4 trillion will be invested in developing countries. Of the total market in developing countries, some $1.6 trillion will be accessible to SMEs, according to the report. China, Latin America and Sub-Saharan Africa are the top three markets in the developing world for SMEs in clean technology, with expected markets of $415 billion, $349 billion and $235 billion, respectively for sectors such as wastewater treatment, onshore wind, solar panels, electric vehicles, bioenergy, and small hydro.
To unlock this environmental and economic potential, more can be done to support green entrepreneurship. Clean technology SMEs face daunting challenges, particularly in accessing early and growth stage financing. Countries can help by creating targeted policy incentives to encourage their own clean technology sectors. The report provides policymakers with a range of practical instruments that help support SMEs in clean technology sectors such as innovative finance, entrepreneurship and business acceleration, market development, technology development, and the legal and regulatory framework. These policy considerations are illustrated through case studies of national programs in South Korea, India, Thailand, and Ethiopia.
The report highlights clean technology market opportunities that can have great social impact. In Kenya, for instance, the roughly 80 percent of the population not served by the electricity grid represents a vast market for new climate solutions. Local entrepreneurs and SMEs are deriving innovative solutions in solar and biogas technologies. This not only creates jobs and improves the environment but also provides new offerings for sustainable, off-grid electricity to the poorest 40 percent of the population.
Clean technology jobs compare favorably to jobs in other sectors, requiring more skill and delivering better pay and on-the-job safety. The move towards a lower carbon and more resource-efficient economy is expected to yield a double-dividend in terms of employment and environmental improvement.
infoDev’s Climate Technology Program supports local climate and clean technology SMEs and startups through its targeted Climate Innovation Centers (CICs). To date, the Kenya CIC has helped 83 small firms whose services have provided over 8200 persons access to safer water, have given almost 49,00010 people access to low carbon energy sources and 59,675 tons of CO2 – the equivalent of the exhaust of almost 13,000 cars annually – have been mitigated.
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India-Africa trade summit postponed due to Ebola outbreak
An event aimed at promoting trade and investment between India and Africa has been postponed due to concerns over the deadly Ebola outbreak, India’s foreign affairs ministry said on Wednesday.
The worst Ebola outbreak on record has killed more than 2,800 people in West Africa. The U.S. Centers for Disease Control and Prevention warned that between 550,000 and 1.4 million might be infected in the region by January.
The India-Africa Forum Summit (IAFS) was due to take place on the outskirts of New Delhi on Dec. 4, and would have seen more than 1,000 delegates – including heads of state, businessmen and journalists – from all 54 nations of the African Union.
“In consultation with the African countries, we decided to postpone the event because of the large numbers of delegates expected to attend,” Syed Akbaruddin, spokesman for the ministry for external affairs, told the Thomson Reuters Foundation.
“Due to the public health guidelines issued because of the Ebola virus, there would have been logistical difficulties in dealing with the large number of delegates attending,” he said, adding that the summit would be rescheduled for 2015.
Trade between India and Africa has increased by almost 36 percent to reach $70 billion in 2012/13, from $50 billion in 2010/11, according to the ministry of commerce and industry.
Under the framework of the IAFS, India has also provided assistance in areas such as food and energy security through sharing of expertise, as well as setting up training institutions in several African nations.
Two such summits were held in 2008 and 2011, but the spokesman said this event was expected to the biggest and included a business conclave and media event.
World Health Organization officials say the risk of Ebola being imported into India is low, but India has been proactive in preparing for an outbreak.
The government has set up facilities at airports and ports to manage travellers showing symptoms of the disease, such as fever or intense weakness. Authorities are following up on and keeping track of such passengers for up to four weeks.
According to the latest bulletin from India’s health ministry issued on Sept. 9, 1,033 passengers were being tracked, while 16,812 passengers had been screened so far.
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TFA panel meet: India to stick to its stance at WTO meet
India is going to again push for its demand to have a parallel agreement on public stockholding for food security purposes, as the preparatory committee on a trade facilitation agreement (TFA) is set to meet on September 29 at the World Trade Organization’s (WTO), headquarters in Geneva.
After missing the deadline of July 31, when the protocol of amendment to the TFA was expected to be signed, member-countries were expected to reach a possible consensus on the demand made by India. It seems after a month-long break, countries have rather hardened their positions. While the majority of developed and developing countries have agreed to convert the TFA into a legal framework, India and some countries have demanded a parallel agreement on public stockholding for food security.
A senior commerce department official told Business Standard: “WTO has a long history of missing deadlines, mainly pertaining to those that benefit developing countries. So, missing the July 31 deadline did not bring the world to an end. Deadlines are important but not sacrosanct. India is not backing off from the TFA. All that we have asked for is a parallel agreement on public stockholding. If the Bali Package has to be implemented, then the whole package has to be implemented.”
Following the preparatory committee meeting, the WTO trade negotiating committee is expected to meet on October 6, followed by a meeting of the General Council on October 21, which is equivalent to a formal ministerial meeting.
Earlier this month, after years of delay, India notified its agriculture subsidies at the WTO for 2004-05 till 2010-2011. In the notification, India said it had given subsidies worth $56.1 billion to farmers. The notification indicated its domestic food security programmes had not breached the WTO’s prescribed limits.
According to officials in the ministry of commerce and industry, India is in no danger of crossing the 10 per cent threshold of food subsidies under the WTO’s agreement on agriculture and it will not breach the level in the near future.
However, developed countries have questioned the methodology adopted by India in calculating its subsidies.
Deputy US Trade Representative and US ambassador to the WTO, Michael Punke, said the ‘key member’, ie India, which blocked implementation of TFA had given confusing signals on what it wanted done. “If the position is to hold the implementation of the TFA hostage until there is a permanent solution to public stockholding, then we and many others would see it as fundamentally rejecting the Bali package. That is untenable and would have serious ramifications – for Bali, for the post-Bali work programme and for the WTO itself,” Punke said in a statement at an informal meeting of the heads of delegation in Geneva.
In similar vein, while acknowledging conflicting demands amongst member-countries over food security and TFA, WTO Director-General Roberto Azevêdo said a “strict parallelism is not possible”.
Launching consultations on the Bali Package, Azevêdo said while the negotiation on TFA was concluded in the Bali Package, the talks on public stockholding for food security purposes was an outcome of that package.
“That is the plain fact of the matter – indeed all of the Bali decisions have their own very specific timetables which advance at different paces. Nonetheless, we must find a way of providing comfort for those with outstanding concerns on food security,” Azevêdo said.
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Ban hails ‘bold’ announcements on tackling climate change as historic UN summit closes
Bold new actions to immediately tackle climate change were announced today by Government, business, finance and civil society leaders attending a historic Climate Summit convened by United Nations Secretary-General Ban Ki-moon, who has long urged workable solutions based on “clear vision anchored in domestic and multinational actions.”
“Today was a great day – a historic day. Never before have so many leaders gathered to commit to action on climate change,” Mr. Ban said, summing up the day-long event, which drew a unique mix of international players who announced their vision and commitment for reaching a universal and meaningful climate agreement in 2015, as well made announcements on actions that will reduce emissions, enhance resistance to climate change and mobilize financing for climate action.
“The Summit delivered,” declared the UN chief, noting that leaders had reaffirmed determination to limit global temperature rise to less than 2 degrees Celsius by cutting emissions. And many, from all regions and all levels of economic development, advocated for a peak in greenhouse gas emissions before 2020, decisively reduced emissions thereafter, and climate neutrality in the second half of this century.
On finance, the Secretary-General said public and private sources showed the way forward for mobilizing the needed resources. Leaders expressed strong support for the Green Climate Fund. And a total of $2.3 billion was pledged towards the Fund's initial capitalization today, and others committed contributions by November 2014.
“A new coalition of Governments, business, finance, multilateral development banks and civil society leaders announced their commitment to mobilize upwards of $200 billion for financing low-carbon and climate-resilient development,” he said, adding that private banks announced they would issue $20 billion in “Green Bonds” and that they would double the market to $50 billion by 2015, next year.
As for carbon pricing, “one of the most powerful tools available for reducing emissions and generating sustainable development and growth”, Mr. Ban said that many Government and business leaders supported putting a price on carbon through various instruments and called for intensified efforts to eliminate fossil fuel subsidies. Some 30 companies had announced their alignment with the Caring for Climate Business Leadership Criteria on Carbon Pricing.
Among the day’s other highlights, he said the Summit had heard how strengthening resilience – both climate and financial – is a smart and essential investment. Adaptation needs are growing, particularly for the least developed countries and small island developing States, which are most at risk and need most international support.
Finally, he spotlighted that “new coalitions are forming to meet the full scope of the climate challenge,” and citied the first Global Agricultural Alliance which was launched today to enable 500 million farmers worldwide to practice climate-smart agriculture by 2030.
Leaders of the oil and gas industry, along with national Governments and civil society organisations, made an historic commitment to identify and reduce methane emissions by 2020.
“A new Compact of Mayors, representing 200 cities with a combined population of 400 million people, pledged new commitments to reduce annual emissions by between 12.4 and 16.4 per cent,” added the Secretary-General, telling delegations that those highlights would serve as his Chairman’s Summary, which would be distributed soon to Member States.
Looking ahead, Mr. Ban urged the participants to maintain the spirit of compromise and commitment that characterized the discourse at the Summit. “We must fulfil and expand on all the pledges and initiatives brought forward today.”
As the international community walked together on the road to Lima and Paris (milestone meetings of the parties to the UN Framework Convention on Climate Change) in December 2014 and 2015, he said “let us look back on today as the day we decided – as a human family – to put our house in order to make it liveable for future generations. Today’s Summit has shown that we can rise to the climate challenge.”
Earlier in the day, Mr. Ban already welcomed specific commitments made by specific countries, including “generous pledges” of $1 billion each by President François Hollande of France and Chancellor Angela Merkel of Germany.
He noted that The European Union pledged to adopt the 40 per cent emissions reductions target this October, Grenada called for all island states to go 100 per cent renewable, and China announced that it will peak its emissions as soon as possible and double its support for the South-South Cooperation.
“We have heard significant pledges of finance and resources,” he said. “Finance is the enabler of what we want to achieve. This morning, you have acknowledged its crucial importance. Private finance is out there, and public finance can be the lever to access it.”
Addressing the special mid-day wrap up session, United States President Barrack Obama said that of all the immediate challenges world leaders were set to address this week during the General Assembly’s high-level segment – terrorism, inequality disease – there is one issue that would define the contours of the current century more than any other, and that is the urgent and growing threat of a changing climate.
“Indeed ... deepening scientific evidence says this once distant threat has moved firmly into the present; no nation is immune,” he said, underscoring that “the climate is changing faster than our efforts to address it. The alarm bells keep ringing. Our citizens keep marching. We cannot keep pretending we do not hear them. We have to answer the call.”
The mid-day segment was also addressed by Jakaya Kikwete, President of Tanzania and Coordinator of the Committee of the African Heads of State and Government on Climate Change; Baron Waqa, President of Nauru and Chair of Alliance of Small Island States (AOSIS); and Zhang Gaoli, Vice-Premier of China.
Read the Member Statements from the 2014 Climate Summit here.
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Kenyan exporters lobby EU to speed up new trade pact
Fresh produce exporters are optimistic of a positive outcome in the delayed signing of an economic partnership agreement between the five-member East African Community and the 28 European Union states.
The EAC delegation is today expected to open negotiations with the EU in Brussels over the finalisation of the draft EPA deal that was agreed on by Kenya, Tanzania, Uganda, Rwanda and Burundi on Saturday.
Foreign affairs and international trade secretary Amina Mohammed said on Sunday that the meetings with EU were expected to run through to Friday.
The Kenya Flower Council yesterday said it hopes the negotiating parties can fast track the ratification of the EPA in a record six weeks if it's signed this week.
This, according to KFC chief executive Jane Ngigi, will mitigate the danger of Kenyan exports losing a considerable share in EU markets to its main competitors Ethiopia, Colombia and Ecuador.
EU accounts for about 90 per cent of Kenya's flower market, a leading foreign exchange earner with close to Sh50 billion in annual inflows.
Ngigi said that the price of Kenya's flower exports to EU are consequently set to go up by between four and eight per cent once they are categorised under General System of Preference tariffs from October 1.
“We are waiting to see a positive outcome out of the negotiations,” Ngigi said in a telephone interview. “Our hope is that they can agree to take a maximum of six weeks for the agreement to be ratified.”
EU's resident Trade and Communications counsellor Christophe De Vroey maintained yesterday that the approval process “typically takes three to four months”.
He nonetheless said it can take much less time if there is political will.
The damage, though short will hurt Kenyan exporters who from next Wednesday will have part of their earnings taken up by export tariffs under the GSP regime.
Kenya is, as a result, arguably the only African country whose exports will not enjoy preferential, duty free access to the EU markets.
This is because the rest of the EAC countries are cushioned through ‘Everything But Arms’ trade agreement for Least Developed Countries.
Majority of the other countries are also protected through the Economic Community of West African States and Southern African Development Community trade blocs that have already signed and ratified the EU EPAs.
On Monday, the EU in a public notice said Kenya exports including fresh produce that have been been enjoying duty free access to the lucrative EU market since January 2008 will now be slapped with duties of between 2.6 and and 20.5 per cent.
“This being a trade issue, we have provided our members with as much information as possible including the right documentation they need to have,” Ngigi said.
While Ngigi has estimated losses at Sh1 billion a month, Vroey has brings it down toto Sh400 million.
The World Bank’s first Economic Update report for the Republic of Congo
The World Bank on 18 September 2014 launched the first Economic Update report for the Republic of Congo which monitors the economic and financial situation in the country.
“This report is an important element of the World Bank’s program in the Congo, a country that has benefitted from the boom in oil revenues for almost a decade and that is engaging in an ambitious rehabilitation and construction program of its infrastructure, but social development is not improving at the same rate,” said Sylvie Dossou, World Bank Country Manager for the Republic of Congo.
The report is intended to encourage constructive dialogue on public policies with the country’s authorities, academics, the private sector, and civil society.
Congo’s economy is growing, but at an inadequate pace to further its progress toward development.
Its current growth is lower than the rate projected in the 2012-2016 National Development Plan (NDP). From 2011 to 2013, average growth was 3.5%, instead of the targeted 8.5% to achieve the country’s development objectives. This insufficient growth is due to the below-average performance of the oil sector. However, the relatively strong performance of nonoil sectors helped mitigate the performance of the oil sector.
Favorable indications of sustained growth over the next three years
The annual growth rate of the economy is expected to reach 7.6% from 2014 to 2016. Support to this projection includes strong growth of the non-extractive industries due to the government’s diversification policies and investments in infrastructure; stabilization of oil production with the discovery of new deposits over the coming years; and the prospect of implementing effective mining activities.
However, several factors could affect growth that need to be addressed. Internal pressures such as rent seeking and uneven distribution of resources between infrastructure and the social sectors; poor absorptive capacity in regards to investments spending; weak expenditure chain; spending on the preparations for the 2015 All Africa Games in Brazzaville; and the volatility of oil prices.
“Investing efficiently in infrastructure could help the Congolese economy make up for lost time on the path to development,” stated Fulbert Tchana Tchana, Senior Economist for the Republic of Congo.
Economic infrastructure, driver of sustainable growth
The cost of infrastructure and the ability to gain access to it is a significant constraint to the development of the private sector in Congo. Current and/or planned investments can contribute to economic diversification because they will allow for a considerable reduction in the cost of production inputs.
Need for better implementation of public finance reforms
In order to boost the country’s development, the government could implement reforms on sound public finance management, particularly to infrastructure investment: strengthen the preparation and planning of investment projects, establish a system for monitoring investment projects from commitment to budget execution, streamline procurement procedures and the disbursement system. The government could also speed up the distribution of electricity to consumers in order to stimulate manufacturing. Finally, it could develop monitoring and evaluation tools for the implementation of the country’s economic diversification program.
» Republic of Congo Economic Update: The Road to Economic Development | September 2014 (PDF, 6.48 MB)
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Listen more closely to Africa’s voice on climate change
As more than 120 world leaders converge on New York this week for an unprecedented UN climate summit, one highly significant voice needs to be heard. That voice belongs to Africa.
In all the global discussions around rising sea levels, shrinking rain forests, imperiled species and biodiversity, green bonds and carbon prices, Africa’s unique stake and contribution to a global climate strategy needs to be more front and center. This is only right for a continent that has contributed the least to the profound changes underway in the Earth’s climate but whose people will suffer its withering impact the most.
Consider that Africa is responsible for only 3.8 percent of global greenhouse gas emissions yet from the Sahel to the Horn of Africa to the south of the continent, African countries experience first-hand the devastating effects of increasingly severe droughts and floods and more extreme weather patterns that scorch or drown their crops. Africa’s political and business leaders are already committed to a climate-resilient growth path, yet the path promises to be bumpy.
Recent World Bank research outlines a disturbing scenario for Sub-Saharan Africa in a 2°C warmer world, forecasting dramatic effects on agriculture and food production in a region where 80 percent of Africans rely on agriculture to make ends meet for their families. Consequently, we cannot separate agriculture and food security from climate change. Agriculture in Africa accounts for 30-40 percent of GDP. A 1.5°C to 2°C increase in temperature by the 2030s and 2040s will lead to a 40- to 80-percent reduction in the area of land suitable for growing maize, millet and sorghum. These cereals are the mainstay of African diets. They provide the bulk of people’s daily food intake especially in the drylands of the Sahel and the Horn of Africa.
We must also amplify the links between climate change and conflict. In a groundbreaking 2013 paper published in Science magazine, economists Solomon Hsiang, Marshall Burke, and Edward Miguel argued that there is strong evidence linking climatic events to human conflict in Africa and across all other major regions of the world. The magnitude of climate change is substantial they wrote: for each one standard deviation change in climate toward warmer temperatures or more extreme rainfall, median estimates indicate that the frequency of interpersonal violence rises 4% and the frequency of intergroup conflict rises 14%.
Africa’s harsher climate of the future will also change traditional livelihoods. As temperatures rise, Africa’s iconic savanna grasslands will dry up and threaten the livelihoods of their pastoral communities. Given the sensitivity of livestock – their goats, cows, and other animals – to extreme heat, too little water and feed, and disease, pastoralism as a centuries-old way of life is likely to be in danger.
Rainfall patterns will dramatically change; droughts and floods will be more frequent and lead to a 3-percent expansion in total arid areas. Coastal populations in Guinea-Bissau, Gambia and Mozambique would face the greatest risk of inundation and storm surges. Coastal erosion represents a major threat as a large part of Africa’s GDP derives from activities such as fishing, tourism and trade. Entire cities and villages along the coast – capital cities and crucial deep-sea ports – could be wiped out due to rising sea-levels. Countries such as Togo, Ghana and Mozambique could lose more than 50 percent of their coastal GDP, according to recent estimates.
Sustainable management of the region’s rich natural resources – forests, water, land – can contribute to the storage of carbon, while supporting livelihoods and generating economic benefits. Madagascar, one of the poorest countries in the world, also harbors 5 percent of the world’s known biodiversity. Before the country’s political crisis, nature-based tourism was a $500-million industry, growing at 10 percent per year. But the island is also on the list of the most climate change-vulnerable countries which will have a significant impact on its biodiversity.
Africa is one of the world’s fastest-urbanizing continents. Parched rural hinterlands will steadily force people to move to already-crowded cities, creating overcrowding, stressing supplies of safe drinking water and drainage and sanitation.
At the African Union Summit in Malabo, last June, Tanzanian President Jakaya Kikwete reminded his audience that the “effects of climate change are likely to strike to the detriment of the whole continent”. He added that Africa now requires in excess of US$15 billion per year to combat climate change, a figure that continues to rise.
The good news is that Africa is uniquely well positioned to build resilience, especially in energy and agriculture, and has already embraced sustainability. Being green is good for business. In Kenya, small farmers are now earning carbon credits from sustainable farming. In South Africa, the city of Johannesburg recently issued its first green city bond to finance low-carbon infrastructure. In Mauritania, solar energy now powers 30 percent of Nouakchott’s energy use. In Africa, wind and solar potential can be over 1,000 GW but needs to be fully exploited.
The continent has embarked on a clean power revolution that brings more electricity to people’s homes, businesses, clinics and schools. With only one in three Africans having access to energy, the task is urgent. Africa has tremendous untapped hydro, geothermal, and solar power and must be developed to provide the electricity needed to offer sustained – and green – growth for the benefit of all its citizens.
The World Bank is stepping up to the challenge. We are financing transformational projects that attack poverty from multiple angles. We are supporting governments to promote “climate-smart agriculture” so that African farmers can achieve higher yields and make their farming more resilient to the changing climate. In DRC, a $73.1-million technical assistance project will pave the way to bring hydroelectric power to 9 million people.
These interventions are just a starting point – not nearly enough to address the monumental energy needs of the continent. Though prices for renewables have declined significantly in the past decade, these energy sources are still costly. The green energy revolution in African cannot be achieved without financial support of the international community, to bring down the costs of adopting these clean technologies.
The warning signs are clear: climate change under even the 2°C scenario is a menacing threat to sustainable development in Africa. These impacts could potentially overwhelm existing development efforts. We ignore the early warning signs at our collective peril. But, through collective action, we can ensure a climate-resilient future that benefits all Africans and the entire planet.
Makhtar Diop is the World Bank Vice President for the Africa Region
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India remains undisputed global leader in offshoring services. Even increasing the lead further!
While India still struggles with her own basic IT infrastructure including (but not limited to) lackluster internet connectivity or power issues, in one area Indians have consistently beaten the world every way possible – Offshoring services.
India’s superior IT offshoring services prowess is unmatched and has played a dominant role in putting India on the global map.
A.T.Kearney, a leading global management consulting firm with offices in more than 40 countries recently came out with their Global Services Location Index (GSLI) that brings forth most popular offshore locations preferred by world business leaders. Every year, the GSLI analyzes and ranks the top 50 countries worldwide as the best destinations for providing outsourcing activities, including IT services and support, contact centers and back-office support.
The GSLI for 2014 is out and according to it, India has remained the most popular offshoring destination by a a fair margin. According to the index, India has actually increased it lead over others compared to previous years. The report states:
“The undisputed leader in the field for the past decade, India is still unrivaled in both scale and skills, and it is increasing its advantage over second-place China.”
According to NASSCOM, the IT services, BPO and voice services sector today employs over 10 lakh people. In 2014, the Indian IT & BPO industry is expected to grow by close to 15% to nearly USD 120 billion – out of which more than 80% will come from offshoring.
What is notable is even after a decade being on the top, India is still growing and while other countries are trying to catch, India is increasing it’s lead further.
In last few years, many experts and analysts have been talking about India losing it’s sheen in offshoring business, but AT Kearney’s report is a clear proof that these thoughts are unsubstantiated.
While wages in India are increasing reducing it’s financial attractiveness, other countries are sailing in the same boat. Infact, one of the main reasons why China has not been able to come close to India is because their wages are rising more rapidly compared to India.
Among the 3 main factors – Financial attractiveness, People skills and availability and business environment – the in case of first and second India leads the world by large margin. India is probably the only country that has such huge pool of people resources, a factor that most other countries (except China) lack. While India may not have a fantastic environment, the two strong factors are enough to keep India on Top.
The report also states that India will sustain it’s lead in offshoring services business in near future and the reason is – Indian IT players are evolving much faster than their peers. They are expanding their traditional offerings to include R&D, engineering & product development, analytics, and other specialized services, leveraging their extensive experience and highly skilled workforces.
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Leaders at UN summit take steps to ensure food security for 9 billion people by 2050
With demand for food set to increase 60 per cent by 2050, world leaders, major corporations and civil society at the United Nations Climate Summit today pledged commitments to transform agricultural practices by increasing productivity while reducing carbon emissions.
“I am glad to see action that will increase agricultural productivity, build resilience for farmers and reduce carbon emissions,” said UN Secretary-General Ban Ki-moon as he opened the meeting. “These efforts will improve food and nutrition security for billions of people.”
Nine billion people are expected to be living on the planet in 25 years and food production will need to spike in order to feed them.
Today, at the biggest climate conference in history, more than 20 Governments, and 30 organizations and companies announced they would join the newly launched Global Alliance for Climate-Smart Agriculture, which aims to enable 500 million farmers worldwide to practice climate-smart agriculture.
The countries joining represent millions of farmers, a quarter of the world cereal production, 43 million undernourished people and 16 per cent of total agricultural greenhouse gas emissions.
Civil society organizations also committed to take action on the ground that “protect the poorest and most vulnerable farmers from climate change,” according to a joint statement released today.
While farmers, fishers, and foresters have already adapted to climate change through indigenous and scientific knowledge, they need investment and policy changes to better manage risk, forecast weather and better use natural resources.
The Global Alliance strives to achieve increases in agricultural productivity and farmers’ incomes while simultaneously reduce greenhouse gas emissions. Ensuring people have access to quality food and nutrition is also a priority.
On a regional level, the Africa Climate-Smart Agriculture Alliance – set up by the African Union – brings governments and civil society together to help about 25 million farming households across the continent practice climate-savvy agriculture by 2025.
“Africa is leading by example, and the Africa Climate-Smart Agriculture Alliance will help ensure that the agriculture sector can continue to be an engine of economic growth and social development for all our people, even in the face of climate change,” said Nkosana Dlamini-Zuma, Chair of the African Union Commission in a statement.
A similar initiative in North-American will be launched in 2015 to help farmers adapt and improve resilience to climate change.
Major corporations are committing to the cause as well. Walmart, McDonald’s and the Kellogg Company have committed to increase the amount of food in their supply chains that are produced with climate-smart approaches – an important step to curb carbon emissions.
Walmart, the world’s largest grocery store, sells 70 million tonnes of food annually. McDonald’s buys two per cent of the world’s beef, a major source of agricultural greenhouse gas production.
The International Fund for Agricultural Development (IFAD) and the World Bank also announced today that 100 per cent of their agricultural investment portfolios – about $11 billion – would be climate-smart by 2018.
And the World Food Programme (WFP) expanded its R4 Rural Resilience Initiative to empower food insecure rural households in Malawi and Zambia.
These pledges come on the heels of the Secretary-General’s plea to keep global temperature increases to less than two degrees Celsius by reducing emissions, moving money, pricing pollution, and strengthening resilience.
Agriculture is just one of eight action areas identified as critical during the Abu Dhabi Ascent, a two-day meeting held in the United Arab Emirates in May 2014. Others include sustainable urban public transport and investment in renewable energy.
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SADC Gateway: Namibia to fast-track port project
Namibia Ports Authority will start the first phase of a new harbour known as Southern Africa Development Community Gateway Port, in early 2015, a year ahead of initial schedule.
The first phase of the new harbour, situated 5 kilometres north of Walvis Bay on the way to Swakopmund and is aimed at catering for exporters and importers of commodities from landlocked Southern Africa neighbours, involves building a R4-billion oil tanker jetty, petroleum pipelines and a 75-million litre oil storage facility, Namport Chief Executive, Bisey Uirab, said in an interview recently.
“The first phase, construction of the tanker jetty of the Gateway Port that was planned for 2016 will commence in 2015 signifying the urgency of the project,” Uirab said.
Increasing demand from mining companies for oil and petroleum products “is also increasing the viability of this development ahead of expectations”, Uirab said.
Namibia raised its fuel levy on all grades by R0.10 per litre to R0.25, and will further raise it to R0.40 a litre to help finance the tanker berthing and storage facilities, Mines and Energy Minister, Isak Katali, said in a statement on August 28.
China Harbour Engineering Co and state-owned Roads Contractor Company were awarded the tender to build the tanker jetty that can handle two 60 000-tonne deadweight (DWT) tankers, at any given time, Uirab said. The second and third phases of the port, initially slated to start in 2020, involve construction of a huge multi-purpose dry bulk terminal and a coal terminal, primarily to cater for about 65 million tonnes of shipments from Botswana’s Mmamabula coalfields with five berths.
Namibia and Botswana are jointly developing a 1 500km TransKalahari railway line to transport coal from eastern Botswana to markets in China and India. The new port also targets to handle increased shipments from Democratic Republic of Congo, Zambia and Zimbabwe. Namport says it is strategically located to offer direct sailing to Europe, Asia, North American and Middle East.
“Our geographical positioning makes us the obvious and cost-effective gateway to SADC. We also capitalise on the fact that we are a medium size port compared to regional ports, we are less congested hence waiting time is reduced,” Uirab said.
Namport in May started expanding the container terminal at its existing deep water port of Walvis Bay to raise capacity to 1 million twenty foot equivalent (TEU), as it gears for increased business within the region.
The SADC Gateway port is linked to the TransKalahari Railway line, so far the biggest cross-border rail project, which will also serve as a major trade artery between Namibia, Botswana, DRC, Malawi, Zambia and Zimbabwe.
Namibia and Botswana will invite private sector bidders to tender to conduct a detailed feasibility study on the construction of the Trans-Kalahari Railway line in the coming two months.
The two countries, which are jointly developing the railway line want to issue bids for the construction of the railway line before the end of the year, Namibia’s National Planning Commission Permanent Secretary, Levi Hungamo, said in an interview.
Botswana and Namibia agreed in March this year to establish a jointly owned company to administer the development of the railway line, estimated to cost nearly US$15 billion.
A jointly administered office would be opened ‘soon’ in Windhoek, Namibia’s capital, and both countries are currently in the “process of selecting staff members”.
“We would want to see the feasibility study concluded before the end of the year and have the tenders out in the market inviting potential developers this year. We can then start identifying winning bidders in 2015,” Hungamo said.
Botswana has an estimated coal resource of more than 200 billion metric tons in its Mmamabula coalfields and wants to ship 115 million tonnes of the fuel per year within a decade to meet growing demand in China and India.
Various companies would be involved in the feasibility studies and the construction of the rail line, Hungamo said. “There is no single company that possess the skills to do this project, we expect multi-disciplinary companies from feasibility to construction. Or even consortiums,” Hungamo said.
“We want to see this project developed now, we don’t want to see this development in 20 years,” he added.