All News
Comesa, EU team up against piracy
The Common Market for Eastern and Southern Africa (Comesa) and the European Union have teamed up to fight piracy on products and other goods and services.
The two economic blocs recently launched a 5.4-million Euro programme to promote regional maritime security by implementing a comprehensive programme to fight piracy in the Indian Ocean.
According to a statement posted on the Comesa official website, the grant agreement was signed in Lusaka by the Secretary-General of Comesa, Sindiso Ngwenya, and the EU Ambassador to Zambia, Gilles Hervio.
This is part of the larger programme to promote regional maritime security that has seen the Eastern and Southern Africa regional economic communities benefit from 37.5 million Euros to implement a comprehensive programme to fight piracy in the Indian Ocean.
The development of the programme responds to decisions of the Comesa ministers of foreign affairs, which called on all member states to support the regional initiative against piracy and consider a multi-faceted solution to maritime insecurity, the statement adds.
The larger anti-piracy programme aims at achieving five-result areas shared by four regional organisations. These aims are to ensure an action plan for Somalia; strengthen national and regional legal, legislative and infrastructural capacity for arrest, transfer, detention and prosecution of pirates in the East African Community (EAC); strengthen regional capacity to disrupt the financial network of pirates and their financiers; and minimise the economic impact of piracy under the leadership of Comesa.
The anti-piracy programme further aims to enhance national and regional capacity for maritime tasks and support functions are under the Indian Ocean Community (IOC) as well improve co-ordination and information exchange.
Comesa will also focus on supporting member states to enhance their capacity to analyse, detect and track financial flows linked to piracy by setting up and strengthening financial intelligence units.
It will further assist the development and/or strengthening of common co-ordinated and inter-agency frameworks on anti-money laundering and also ensure that anti-money laundering laws and regulations are drafted or amended.
This can be achieved through close collaboration with the international police agency, Interpol and ensure that local law enforcement agencies strengthen their capacity to investigate and prosecute financial crimes at national and international levels.
Comesa’s interest in the programme was mostly motivated by the rising transport, trade and insurance costs, which ultimately affects the regional integration process by undermining development efforts.
Approximately 90 percent of the Eastern and Southern Africa regional trade by volume is transmitted by maritime transport, it adds. In addition, Comesa member states have suffered directly from piracy including Kenya, Seychelles, Madagascar and Mauritius.
At the time that the region started to develop the programme in 2010, Seychelles had, for example, recorded a 10-percent decline in tourism revenues and a 30-percent decline in fisheries revenue. Addressing maritime insecurity is expected to significantly lower costs of trade and hence enhance integration to benefit the whole region.
Piracy is recognised as an international problem today and it is widely accepted that it requires comprehensive multilateral solution including the stabilisation of Somalia.
The European Union has in its part taken a very keen interest in addressing piracy through several other programmes including the EU Common Security and Defence Policy Naval Force (EUNAVFOR) operation ATALANTA, as well as the EU CAP NESTOR mission for regional maritime capacity building.
Related News
Ebola lays bare the fragility of the ‘Africa rising’ dream
Ebola has laid bare Africa’s institutional vulnerability, and for once rapacious Europeans are not to blame, writes William Saunderson-Meyer.
The “Africa rising” narrative of the past couple of years is emotionally compelling for anyone living here. Not because such a rise would be deserved, but because it happens to be true.
Investment in sub-Saharan Africa has been booming and the middle-class burgeoning. Although not triumphant everywhere, democracy has taken vigorous root.
Nigerian growth has suddenly knocked South Africa into second place on the gross domestic production league table. Instead of a sullen resentment towards the economic giant at the southern end of the continent, there is now an unexpected confidence that other African countries can not only replicate South Africa’s growth path but surpass it.
Then suddenly along comes the plague, an unforeseen event that churns and muddies the waters.
Ebola, a highly infectious viral disease of terrible aspect – a 50 percent fatality rate following vomiting, diarrhoea, organ failure, and often bleeding from every orifice – spreads like a veld fire through West Africa. The death toll is around 2 000 and according to the World Health Organisation likely to reach at least five-fold that.
Suddenly Africa’s institutional vulnerability stands stark. And for once, let’s not just immediately blame it all on 19th century European conquest. Rapacious indigenous political elites have been far more damaging than historical iniquities and inequities.
Take the countries worst affected by Ebola. With combined populations of 10 million, Liberia and Sierra Leone jointly can muster barely 170 medical doctors. Ivory Coast, one of the next dominos threatened by Ebola’s spread, has only 50 physicians.
While Guinea and particularly Nigeria fare far better statistically – Nigeria with a population of 170 million has about 35 000 physicians – the on-the-ground realities are nevertheless grim. Civil conflict, such as Boko Haram in Nigeria, means that often the only health services are provided by Western aid agencies and organisations like Doctors Without Borders.
After decades of neglect, the continent’s health infrastructure is dilapidated, with care truncated and ineffectual. Most hospitals are in short supply of even the most basic items, including rubber gloves necessary to avoid touching the infectious bodily fluids of Ebola patients.
The latest Ebola outbreak might be new, but the sorry health scenario is not. Africa has a 10th of the world’s population but bears 25 percent of the global disease burden. More than a 100 000 people are estimated to die annually in West Africa of malaria alone.
Yet only six of 53 African countries – including, ironically, Liberia – have met the 2001 Abuja Declaration’s pledge to dedicate 15 percent of national budgets to improving healthcare. Indeed, a third of those nations have actually cut health spending.
This pathetic performance has little to do with the legacies of Western imperialism and colonialism. It has lots to do with corrupt leaders and a lack of accountability on the part of ruling elites, or indeed any empathy on the part of these leaders with the people who are nominally their citizens.
In the Osun Defender, Nigerian columnist Pius Adesamni writes that the irresponsible leaders of Africa have one solution for every problem – “escape and leave the people at the mercy of the elements”.
“Then comes Ebola. Then comes the democracy of death. Your private jets and helicopters are no answers to this one.”
Were it not for the lives lost, writes Adesamni, he would love Ebola, since the virus is creating “a strange, unfamiliar creature called responsible leadership”.
While Ebola was unforeseen by feckless governments, that certainly does not make it unforeseeable. It has been smouldering in the forests since the last outbreak and health authorities predicted its return.
Fortunately, despite all its whingeing about colonial oppressors, Africa has a tried and tested fallback position. You will note that it has not gone to the Bric nations – Brazil, Russia, India and China – for assistance in fighting Ebola. It’s first port of call has been the evil Western nations, not only for the medical expertise needed, but for the cash needed to mount emergency interventions.
South Africa, alone on the continent, is likely to be able to cope with an outbreak, should Ebola spread here. It is in this robustness of SA’s political, economic and social infrastructure that the country’s true competitive advantage lies.
Investors won’t abandon Africa because of Ebola. There is money to be made. But many investors are likely to take a deep breath and conclude that just maybe it’s better to use SA as the staging post for their continental adventures. After all, Africa is one country, isn’t it?
Related News
Free your minds to prosper, President Kenyatta tells Africa
President Uhuru Kenyatta has called on the people of Africa to liberate their thinking to harness the enormous resources in the continent.
The President said though most of Africa gained independence as states more than five decades ago, many were yet to liberate their thinking.
He said majority of Africans still look for outside help when they live in the richest content in the world.
The President said the resource in the people’s potential was even more valuable than the resources Africa owns.
“Our focus should shift: We have a great resource in the potential in our people. We need to tap into the talents of our people,” he said.
He also said that African governments should utilise the potential of their women and youth and give more say to its people.
The President cited Kenya’s example where the youth and women are increasingly getting a bigger say in the running of the affairs of the country.
“My government now has more women in key government positions including the Foreign Ministry, Defence and Land. One third of Parliamentarians in both houses of Parliament are women. We have continued to engage the youth who are now at the centre of decision making,” he said.
President Kenyatta said Africa’s salvation lies in trading with each other even as the content build links with other parts of the world.
“I believe our potential as Africans, lies in integration and trading with each other. This is the focus we have for Kenya,” said the Head of State.
The President was speaking at the Africa Rising forum where he was a chief guest and a panelist.
Ethiopia’s Foreign Minister Tedros Adhanon Ghenreyesus, Gunilla Carlsson (Former Minister for International Development Cooperation, Sweden) and Christopher Coons (US Senator, State of Delaware and Chair Senate Subcommittee on African Affairs. Artists Angelique Kidjo was also part of the panel.
The event was moderated Mo Ibrahim (Chairman Mo Ibrahim Foundation) and Amina J. Mohammed (special advisor to the Secretary-General).
Related News
Retail market reaches saturation
Botswana retail sector has taken a slight knock in attractiveness rankings for retailers as the market nears saturation.
According to the 2014 edition of the authoritative AT Kearney Global Retail Development Index (GRDI), Botswana slipped by a single notch to 26th position in the ranking.
“Botswana ranked for the third straight year, with retail contributing 30 percent of the country’s GDP as well as many jobs. “However, the market is nearing maturity, with growth slowing despite the increased presence and entry of regional retailers who seek to exploit Botswana’s retail opportunities,” said AT Kearney. The annual GRDI ranks 30 developing countries on a 0-to-100-point scale and four variables, which include, country risk, business risk, market attractiveness, market saturation and time pressure.
Due to the mushrooming of many malls in a short space of time, the Botswana market is getting saturated with the score under that category falling to 34.8 percent from 42 percent two year ago. Under the country risk category, Botswana’s score fell to 60.7 percent from 88 percent two years ago while market attractiveness also took a tumble to 26.1 percent from 44.4 percent in 2012.
In the past three years, three malls - Sebele, Rail Park and Airport Junction have opened shop in Gaborone with most tenants being South African retailers. Reflecting the trend towards saturation, retail sector rentals have also softened in the past two years with International Property Database (IPD) estimating returns on the retail space to have declined from 20.1 percent to 16.6 percent last year largely on the back of tenants’ inability to negotiate for better rates due to the massive supply mostly in the Gaborone area. According to the AT Kearney report, annual consumer spending is now more than $3,500 per capita, and the total market is now worth $5.6 billion.
“Food and apparel are the most attractive segments, with recent growth coming in furniture and hardware. Gaborone, the capital, has most of Botswana’s formal retail, and new shopping centers are springing up, fuelled by aggressive expansion plans by current local, regional, and international players,” added the report.
For example, last year Massmart opened its second Builders Warehouse store on the outskirts of Gaborone. South Africa’s Woolworths returned to neighbouring Botswana through a takeover of its franchises as part of future expansion plans, while Shoprite also announced plans to expand.
Related News
World’s leading institutional investors managing $24 trillion call for carbon pricing, ambitious global climate deal
Days before UN Secretary-General Ban Ki-moon convenes the Climate Summit at the United Nations to spur climate action and facilitate a global climate agreement in 2015, nearly 350 global institutional investors representing over $24 trillion in assets have called on government leaders to provide stable, reliable and economically meaningful carbon pricing that helps redirect investment commensurate with the scale of the climate change challenge, as well as develop plans to phase out subsidies for fossil fuels.
“Gaps, weaknesses and delays in climate change and clean energy policies will increase the risks to our investments as a result of the physical impacts of climate change, and will increase the likelihood that more radical policy measures will be required to reduce greenhouse gas emissions,” said the statement – the largest of its kind by global investors on climate change. “Stronger political leadership and more ambitious policies are needed in order for us to scale up our investments.”
According to the International Energy Agency, the world must invest at least an additional $1 trillion per year – a Clean Trillion – into clean energy by 2050 if we have any hope of limiting global warming to 2 degrees Celsius and avoiding the worst impacts of climate change on our environment, health and the global economy. Yet global investment in clean energy was just $254 billion in 2013.
The statement recognizes the role investors play in financing clean energy, outlines the specific steps they are committing to take, and calls on policymakers to take action that supports, rather than limits, investments in clean energy and climate solutions. It was coordinated by the four investor groups on climate change – Ceres’ Investor Network on Climate Risk (INCR) in the United States, the European Institutional Investors Group on Climate Change (IIGCC), the Investors Group on Climate Change (IGCC) in Australia and New Zealand, and the Asia Investor Group on Climate Change (AIGCC) – with the United Nations Environment Programme Finance Initiative (UNEP FI) and Principles for Responsible Investment (PRI).
“The perception prevails that we need to choose between economic well-being or climate stability. The truth is that we need both. What is needed is an unprecedented re-channelling of investment from today´s economy into the low-carbon economy of tomorrow. Investors are owners of large segments of the global economy as well as custodians of citizens’ savings around the world. Having such a critical mass of them demand a transition to the low-carbon and green economy is exactly the signal Governments need in order to move to ambitious action quickly,” said Achim Steiner, UN Under-Secretary-General and Executive Director of the UN Environment Programme.
“It is significant that the largest institutional investors from around the world are in agreement that unmitigated climate change puts their investments at risk,” said Mindy Lubber, director of INCR and president of the U.S.-based nonprofit sustainability advocacy group, Ceres. ”The financial community has a message for heads of state gathering at the United Nations next week: we can’t afford to wait any longer for a climate deal.”
Stephanie Pfeifer, Chief Executive of IIGCC said: “The international investor community has today made it clear that the status quo on climate policy is not acceptable. Investors are taking action on climate change, from direct investment in renewables to company engagement and reducing exposure to carbon risk. But to invest in low carbon energy at the scale we need requires stronger policies. At the UN climate summit next week, policymakers can ensure pockets of climate leadership turn into mainstream actions.”
“Asia presents perhaps the greatest challenges and most significant opportunities in the efforts to transition towards a green economy,” said Alexandra Tracy, Chairman of the Association for Sustainable and Responsible Investment in Asia and Senior Advisor to AIGCC. “Policymakers need to balance difficult trade-offs between a development agenda and environmental concerns, but we see promising moves from governments in the region, such as the measures in China’s most recent Five Year Plan.”
Alongside the statement, the investor groups have published a report detailing examples of action being taken by investors that support a low carbon, climate resilient economy. While ambitious policy is required in order for low carbon investments to be brought to scale, these examples demonstrate that investors are already acting on climate change in a variety of ways. These activities include direct low carbon investments, the creation of low carbon funds, company engagement, and reducing exposure to fossil fuel and carbon intensive companies.
“Stronger carbon and climate frameworks are needed to catalyze institutional investment,” said Fiona Reynolds, managing director of PRI. “The time is now for national governments to overcome the political obstacles that prevent global carbon pricing and hinder long term capital flows into climate mitigation and adaption.”
Examples in the report from both developed and developing countries include:
-
Danish pension fund PKA looking to increase its new and existing offshore wind farm investments to €1.5 billion by the end of 2015.
-
U.S. insurer and pension fund provider TIAA-CREFF reduces the carbon footprint of its real estate portfolio by 17 percent, cutting 58,000 metric tons of greenhouse gas emissions.
-
Swedish pension fund AP4 is committed to decarbonizing its entire $20 billion listed equities portfolio.
-
China Utility-Based Energy Efficiency Finance Program provides loans worth $790 million, financing 226 projects and reducing emissions by 19 million metric tons of carbon.
-
ASN Bank in the Netherlands to become fully carbon-neutral by 2030.
-
Zurich Insurance Group to invest up to $2 billion in green bonds, one of many commitments this year that has resulted in 20-fold growth in green bond market since 2012.
-
HSBC Armenia partners with IFC to finance nine small-medium size enterprise energy efficiency projects in Armenia, totaling approximately $25 million and reducing carbon emissions by more than 6,600 tons per year.
-
Global bank ING has in 7 years reduced its energy project loan allocation to coal power from 63 to 13% and increased its allocation to renewable energies from 5 to 39 percent.
In addition, the investor groups have launched a public online database of select low carbon investments made by asset owners such as pension funds and insurance companies. The Low Carbon Investment Registry identifies how institutional investors are directing capital towards low carbon assets. Asset owners around the world will be encouraged to add examples to the Registry leading up to the climate negotiations in Paris.
“The Low Carbon Investment Registry shows how investors are already supporting the transition to a low carbon economy by investing in a variety of different ways – directly into renewable energy projects, into clean energy funds, through green bonds and through the establishment of public-private-partnerships,” said Nathan Fabian, Chief Executive of IGCC. “It gives policymakers a better understanding of how private capital is currently flowing into low carbon investments.”
Several signatories to the Global Investor Statement on Climate Change are expected to announce significant new individual commitments related to climate risk and low carbon investment at the UN Summit on Climate Change on September 23.
Related News
EPA conclusion – no time for complacency: IPPR
The Institute for Public Policy Research (IPPR) has warned in its latest Economy Watch Namibia publication, that although relief has been brought to affected industries, there is no time for complacency now that the Economic Partnership Agreement (EPA) with the European Union (EU) has been finalized.
Compiled by IPPR’s Research Associate, Klaus Schade, the publication notes that Namibia needs to diversify its product range and export markets and needs to become more competitive.
“The benefit of preferential access to the EU will erode over time, since the EU is negotiating free trade agreements with other countries and regional groupings. It has just signed the Comprehensive Economic and Trade Agreement (CETA) with Canada and is negotiating a mega-trade deal with the USA – the Transatlantic Trade and Investment Partnership (TTIP). The USA is involved in a second mega-trade agreement, namely the Trans Pacific Partnership (TTP) with countries around the Pacific.”
Schade remarks that although Namibia (or other third parties) is not directly affected, these agreements will eventually have an affect since they ease access to these markets for other producers and have the potential to redirect trade and investment flows. “Moreover, these agreements are reportedly setting new standards for investor and other protection that will set the scene for investment agreements elsewhere,” stated Schade.
Schade noted that the “so-called SADC EPA group” initialed the EPA just before the 1 October deadline set by the EU, making it the first regional grouping in Africa to have successfully finalized the EPA negotiations with the EU.
“This brought to an end ten years of protracted negotiations between a group of SADC countries that first consisted of the SACU member states, joined by Angola, Mozambique and Tanzania. Tanzania took a logical decision and joined the East African Community for the negotiations, while Angola opted out to trade with the EU market under the Everything-but-Arms (EBA) schemes that allows Least Developed Countries duty-free, quota-free access to the EU market for almost all products except arms. South Africa joined the negotiations although it has been trading with the EU under its bilateral and reciprocal Trade and Development Agreement (TDCA),” explained Schade.
Negotiations for a new trade agreement were necessitated by the fact that the existing Contonou Agreement between the EU and most of its former colonies in the African, Caribbean and Pacific (ACP) regions provided for non-reciprocal preferences, which were not in line with the World Trade Organisation’s (WTO’s) regulations.
The WTO granted a waiver until the end of 2007 for the continuation of the Contonou Agreement, which put pressure on the parties to agree on new terms.
Related News
Russia nuclear deal ‘scares’ critics
South Africa has potentially set itself on a collision course with the West by announcing yesterday that it had signed a nuclear partnership agreement with Russia.
The deal with Russia’s state-owned nuclear company may see Rosatom build reactors in Africa’s second-biggest economy, a development that critics of the government’s nuclear energy plan fear would put a massive financial strain on the country and hike power prices.
Rosatom, the Russian State Atomic Energy Corporation and South Africa said in a joint statement that the intergovernmental agreement on strategic partnership and co-operation in nuclear energy and industry was signed on the margins of the 58th session of the general conference of the International Atomic Energy Agency in Vienna, meeting this week.
“South Africa today, as never before, is interested in the massive development of nuclear power, which is an important driver for the national economy [sic] growth,” said Energy Minister Tina Joemat-Pettersson, who signed on behalf of the South African government.
Rosatom and the government said: “The agreement lays the foundation for the large-scale nuclear power plants procurement and development programme” using Russian VVER reactors with installed capacity of about 9 600 megawatts, or as many as eight nuclear reactor units.
Rosatom director-general Sergei Kirienko said in the statement that the collaboration would result in orders worth at least $10 billion (R112bn) to local industrial companies.
But the awarding of the contract to Russia, a fellow member of the Brics (Brazil, Russia, India, China and South Africa) bloc of emerging powers, is poised to raise eyebrows as Russia is currently the target of sanctions over the conflict in eastern Ukraine. Analysts say it is unclear how South Africa will navigate the sanctions minefield.
“It is a scary development,” a market analyst, who declined to be identified, said of the nuclear agreement.
“On the surface it seems like diversification but you are also overexposing yourself to problems in eastern Europe.”
Lance Greyling, the DA’s spokesman on energy, said Joemat-Pettersson must immediately release details on the deal with Rosatom.
“We have serious concerns about this agreement,” he said in a statement. “Last year, an unsigned draft agreement sought to give Russia exclusive rights for the construction of nuclear plants in South Africa by committing the government to securing consent from Russia should South Africa wish to enter into any other agreements with third-country organisations or countries.”
Greyling added that “this deal may also undermine South Africa’s bilateral commitments on nuclear energy with other nations and would indeed act against South Africa’s national interest, limiting our ability to effectively negotiate and procure nuclear capacity from other nations”.
The agreement comes three weeks after President Jacob Zuma visited Russia and met with President Vladimir Putin. The National Treasury said in February last year that a R300bn nuclear programme was in the final stages of study.
Areva, EDF, Toshiba’s Westinghouse Electric, China Guangdong Nuclear Power, Rosatom and Korea Electric Power have expressed interest in building the nuclear plants.
Dawid Serfontein, a senior lecturer at the School of Mechanical and Nuclear Engineering at North West University, said: “If you want to buy nuclear reactors, Russia is one of the best countries to buy from because it is at the forefront of nuclear technology.”
He noted that Russia had also promised to lend South Africa the money to fund its nuclear programme, which would be a great help. “If the decision is taken by South Africa to buy from Russia, there will thus be good reason to believe that the decision was taken on merit,” Serfontein said.
He forecast that the full price tag for the 9 600MW nuclear power capacity would be about R650bn. “Therefore, the R112bn announced yesterday is clearly only a small part of the total cost.”
Serfontein said the amounts should thus be interpreted as follows: if the whole fleet would cost R650bn, then up to R112bn of the parts and services would be bought from South African companies, while the remaining R538bn would be imported from Russia.
Earthlife Africa project co-ordinator Christian Taylor said that in the long term, the cost of nuclear electricity produced under the programme would be too expensive for ordinary people to afford. He added that South Africa was giving itself over to long-term debt with Russia.
“We must be concerned. This would be more expensive than any other alternatives. This would definitely alter the tariff price,” Taylor said.
Related News
EAC protectionism mocks Treaty goals
Last week, Dr. Richard Sezibera, the Secretary General of the East African Community (EAC) was visiting Uganda. A notable thing he said, was although regional non-tariff barriers (NTBs) were steadily coming down, a couple of new ones were also coming up.
Coincidently his words came when the acting Chair of the Council of Ministers, (the second highest body after the EAC Heads of States), was reporting that intra-EAC trade was making modest gains.
Dr. Abdulla Saadala said the sales of goods amongst member countries had gone up from $2 billion in 2005 to $5.5 billion in 2013.
He said the implementation of the Single Customs Territory has already signaled significant positive results in terms of faster turnaround time for the movement of cargo. It was long agreed that NTBs, including endless roadblocks and duplication of paperwork, were very costly and time wasting to business people.
Sezibera said the private sector has done much in tearing down these trade barriers. Understandably so, because NTBs make it expensive to do business. But he said six new NTBs have been recorded.
EAC leaders better get to grips with this situation fast, because NTBs obviously mock the basic pillars on which the EAC Treaty stands on.
Nearly 15 years ago, it was the regional leaders themselves who declared that in contrast to the first attempt at integration which was predominantly government-driven, the new EAC hinges on the private sector and civil society: the principles that govern the objectives of the community shall be ‘centred and market-driven’ (Article 7 of the EAC Treaty).
In such circumstances, it helps to go back to the very beginning and ask the question: why do we want the East African Community?
EAC economic integration will help drive down prices for goods and services. This is because the removal of trade barriers reduces or removes the tariffs entirely. All major enterprises in the region are facing up to the realities of new competition. For some, dominance in the domestic market is being chipped away by a brand from across the border. They are not happy and loudly wonder what their respective governments are doing to save precious jobs.
These are the kind of situations that cause emotions to run high but often overlook the fact that the end consumer wins by way of lower prices. In East Africa, probably sugar is the most sensitive locally manufactured item. All countries have production capacities of their own and jealously guard the industry because sugar is also a political issue.
Whenever there are occasional shortages, EAC countries are more likely to import further afield than from a neighbour who has a surplus. Indeed, sugar is the most common commodity that faces a barrage of NTBs. Which suggests its time to think more seriously about specialisation or some kind of sugar regime in which all manufacturers are treated equally in a common market.
But this where it becomes tricky and national concerns over-ride the common regional good. Inefficient producers, long protected by their governments are not likely to withdraw easily. Nor are politicians likely to abandon their constituents.
And yet some specialisation offers economies of scale, which means that the average cost of producing the good falls because more is being produced. Consumers benefit from lower prices and greater quantity of goods. Certainly dependency on another country is risky. On the other hand, some specialisation gives EAC a chance to become globally competitive. Duplication of effort can be costly.
Business people may often abuse their contacts with governments to hold on to market share. But it is governments that impose protectionist policies. And although governments can also act petty, in the context of regional integration, trade protectionism spells eventual doom for all.
Related News
Azevêdo warns of “freezing effect” on WTO work from impasse on Bali package
Director-General Roberto Azevêdo, in a speech to the UNCTAD Trade and Development Board on 22 September 2014, said that the Bali package that delivered big gains for WTO members “is now at risk”. He said “at present, the future is uncertain”, adding that if the impasse is not solved “many areas of our work may suffer a freezing effect, including the areas of greatest interest to developing countries, such as agriculture”.
Thank you Madam Chair, Ambassador Mendez Perez.
I am pleased to be here today.
I would like to thank Secretary General Kituyi for the invitation to attend this very important meeting.
My idea is to give you some thoughts about the state of play at the WTO and to share some perspectives for our future work – especially in agriculture, as the main topic of this session.
But first I think it is useful to step back and have some perspective on where we are today.
Let’s recall where we were a year ago – in the fraught weeks before the Ministerial Conference in Bali.
Who would have thought then that we would have achieved so much?
Members agreed to adopt the Bali Package and this was a major breakthrough in the negotiations.
It was the first time since the WTO was created that WTO members agreed to update existing multilateral trade rules.
Of the three areas covered by the package – development/LDC issues, trade facilitation and agriculture – I’ll just say a few words here about the latter.
That part of the Package included decisions on:
- public stockholding for food security purposes,
- the administration of import tariff quotas,
- export competition,
- government support for agriculture-related services, and
- cotton
The Package delivered big gains for WTO members and it opened a new chapter in our negotiations.
Members agreed to implement these decisions – and they agreed to adopt a work programme, by the end of this year, to deal with the remaining issues of the Doha Round.
However, all of this is now at risk.
On July 31 we missed the deadline for the adoption of the protocol of amendment on the Trade Facilitation Agreement
This was the first deadline that Ministers set for us in Bali.
I asked members to reflect over the summer break about how to deal with that impasse, taking also into account the impact that it would have in our future work.
Last week I met all members to share my assessment of the situation – and I launched a process of intensive and comprehensive consultations.
I said that we need to try to solve this issue – and quickly.
We are at an early stage of our consultations. Members are meeting with each other in sessions organised by the chairs. I am continuing my own consultations. There is a lot of activity, but at this point we don’t have a solution.
We will have another meeting of all members on 6 October.
At that time we will reassess the situation in the light of this process of consultations.
Our priority now is to ensure the implementation of the Bali Package.
There seems to be a clear interplay between concerns on the negotiations on public stockholding and the implementation of the TFA.
Both public stockholding programmes and trade facilitation were issues addressed by the Bali decisions.
There is no formal or legal linkage between these two issues, but we cannot deny that there is an important political link bringing them together.
At present the future is uncertain.
If we solve this issue, I am confident that we will be able to look ahead and resume our efforts in the broader negotiating agenda.
If we do not, members will have to think carefully about what the consequences are.
There could be an impact on all areas of our work:
- for the TF Agreement itself,
- for all the other Bali decisions – including those that benefit LDCs,
- for the DDA,
- and at the end of the day, for the negotiating function of the WTO.
My assessment is that we risk disengagement if we don’t solve this impasse shortly.
I felt it was my duty to share this view with members.
Many areas of our work may suffer a freezing effect, including the areas of greatest interest to developing countries, such as agriculture.
All negotiations mandated in Bali, such as the one to find a permanent solution for the issue of public stockholding for food security purposes, may never even happen if members fail to implement each and every part of the Bali Package, including the Trade Facilitation Agreement.
Failing to agree on new rules for twenty years is a very disturbing record.
Considerably graver than that is not being able to implement what has been finally agreed only a few months earlier.
I’ll come back to this in a moment – but let me now focus on agriculture in some more detail.
The agricultural sector has been and still remains a fundamental tool for sustainable development and for reducing poverty in most developing countries.
But agriculture has been characterized for decades by policies that seriously distort trade and production.
Such policies can take the form of high tariff barriers, various domestic support measures – through subsidies or market price support – and export subsidies or other forms of export-related support.
These trade distorting policies have a significant effect on agricultural producers in developing countries, and especially in the most vulnerable ones.
Because of these anomalies, those countries cannot fully benefit from their comparative advantages, and their agricultural revenues cannot properly contribute to gross domestic production, employment, rural development or livelihood security.
In this context, the 1994 Uruguay Round Agreement on Agriculture was a landmark achievement.
The Uruguay Round initiated a reform process.
The process was aimed at a more equitable and efficient agricultural trading system through specific commitments to reduce distortions and protection in the areas of:
- domestic support,
- export subsidies, and
- market access.
- Specific provisions were negotiated in favour of developing countries under each of those three pillars.
But of course this agreement is not perfect, it needs to be improved. The system must be made more equitable. The producers in the poorer countries cannot compete with the treasuries of richer economies and they need better conditions to access consumer markets internationally.
This is why agriculture is the cornerstone of the DDA.
The objective in the DDA is:
- to make significant reductions in trade distorting support,
- to substantially improve market access conditions, and
- to eliminate all forms of export subsidies.
As we stand today, despite the progress brought about by the commitments agreed in the Uruguay Round, these commitments still allow for even more distortive and protectionist practices than the ones we have today. There is policy space there that could be used in a very distortive fashion. This is a scenario we cannot ignore.
So it is essential that we seek to make further progress here.
And in a way that brings me back to the current circumstances.
Given the situation, I feel I should make a few comments on the issue of public stockholding for food security purposes.
Food security is not a new topic. It is and has always been a complex issue, which covers – among many elements – the role played by trade and trade disciplines.
The evolution of agricultural prices in the last 15 years also focused the attention of the international community on food security in developing countries, in particular the least-developed and the net food importing developing countries.
Everybody in the WTO recognizes the right of governments to implement policies they deem necessary to ensure food security for their populations.
The vast majority of studies conducted in recent years have confirmed that open and non-distorted trade improves the various dimensions of food security. There are several studies that evaluate the relationship between self-sufficiency and food security. Most, if not all of them, consider that prompt and reliable access to food produced abroad is a fundamental aspect of any food security strategy.
As stated in the note prepared by the UNCTAD Secretariat before this meeting:
“Trade in agriculture, in particular, may generate impetus for economic growth, enhanced food security and inclusive and sustainable development in the post-2015 period”.
There is broad consensus on these issues.
Therefore the question that WTO members are trying to answer is not whether members can ensure their food security but rather under which commonly agreed disciplines they can implement policies to achieve this goal without further distorting trade or aggravating the food insecurity of third countries.
This is why there is a broad consensus amongst experts and WTO members that advancing the Doha Round would probably be the most important practical way in which the WTO could help to create a more favourable global environment for food security.
I should not close these remarks without recalling that agriculture negotiations also include other issues of great importance to the developing world.
Cotton is a good example of that. I cannot overemphasize the importance of tackling distortions to trade and reducing barriers to market access in cotton for some countries in Africa.
All WTO negotiations will be at risk if the current impasse is not solved.
We must acknowledge that small countries are probably the ones who will suffer the most. Big countries have other options. The small and the vulnerable may be left behind if we stop WTO negotiations.
As I mentioned to you, the situation is very delicate but we’ve just started our intensive process of consultations.
I sincerely hope that by early October we will find a way to put things back on track.
With that we’ll have the engagement needed to face the hard issues – and very important issues – of the post-Bali agenda.
I am certain that this is the best way the multilateral trading system can help countries achieve their development goals.
Thank you very much.
Related News
China-aided trans-Africa railway line likely to transform regional trade
A century old British dream of building a transcontinental railway connecting the Atlantic and Indian oceans is becoming a reality with Chinese financing. Cutting through the belly of Angola, passing through the copper belt of the Democratic Republic of Congo and Zambia, then finally reaching a massive hub port being built in Tanzania, the proposed railway has the potential to integrate countries that until now were divided by a language barrier left by the British, the French and the Portugese.
By upgrading and linking railways built by the former colonial powers, the transcontinental railway will represent a major landmark in China's investment and development assistance in Africa.
China’s investment in Africa has grown rapidly in recent years, in tandem with a surge in bilateral trade.
Restoration
Earlier this month, the state-run China Railway Construction finished repair and restoration work on the 1,344km Benguela railway, which connects the Atlantic port of Lobito in Angola to Luau, an Angolan town on the border with Congo.
The Chinese company has replaced the 1,067mm narrow gauge track laid down in 1929 by Portugal, Angola’s former colonial ruler, with a 1,435mm standard gauge railway.
Angola has spent $1.83 billion in mostly oil-backed loans from China to rebuild and restart the railway as it works to recover from a 27-year civil war that ended in 2002. Service along most of the route was discontinued after 1975, at the end of colonial rule and the start of the civil war.
This in turn cut Angolan rail ties with lines in what is today Congo and Zambia. The lines in these two countries are also being upgraded, and are expected to finish in 2018.
Reconstruction of the Benguela railway began in 2006 with a $300 million loan from the China International Fund. When completed, the project will reopen the route from Lobito to Zambia for the first time in four decades.
The replacement of the old, colonial-era narrow gauge track with a standard gauge rail will also increase the speed of the trains on the line, from 30kph to 90kph.
New dynamic
China built the 1,860km Tazara railway, also known as the Tanzam railway, in the 1970s, which connects Tanzania with Zambia. Linking the Benguela and Tazara railway lines will create a transcontinental railway between the east and west coasts of Africa.
Copper from the border area between Congo and Zambia, both of which lack major sea ports, is transported mostly by truck to ports in South Africa.
The new railway across the continent will significantly quicken the transportation of copper from these two countries to both the Indian and Atlantic oceans. It will help the two countries’ mainstay copper industries to cut costs and spread risks. Copper is the biggest export of both countries.
China is also building a huge new port in Bagamoyo, Tanzania, on the Indian Ocean. Copper and other raw materials will be carried by the railway to the new port, for shipment to China.
The port project is part of the infrastructure deal Chinese President Xi Jinping signed with the Tanzanian government during his visit to the country in March 2013. Tanzania was the first destination on Xi’s African tour.
The port, designed to be an alternative to the country’s Dar es Salaam Port, could become a rival to regional maritime transport hubs such as the Kenyan port of Mombasa and South Africa’s Durban.
“China is now joining the dots in Africa and forming lines; lines that are cross-continental and will potentially change the earlier trade, investment trends laid down by the colonialists,” says Lauren Johnston, a freelance researcher for the Economist Intelligence Unit who specializes in the relations between China and Africa.
Related News
Resources should be our competitive advantage – Schlettwein
Namibia’s natural endowment of raw materials like minerals, precious and semi-precious stones, agricultural produce, fish and other marine resources, and potentially oil and gas, should not be a curse but turned into a competitive advantage.
According to Trade and Industry Minister, Calle Schlettwein, solutions to the country’s persistent and perpetual problems of high unemployment, unequal income distribution and poverty may be found in innovative strategies “that make the most of our comparative and competitive advantages”.
Speaking at the official opening of Namibia’s second International Oil and Gas Conference and Exhibition on Thursday, Schlettwein said Namibia’s economy “has to be transformed from one that relies on trading in raw materials only, to a diversified economy that produces value-added and finished goods”.
“The oil and gas sector has great potential for developing value chains. The rubber industry, plastics, fertilizers and organic chemicals spring to mind,” he said.
Before sharing this industry insight, Schlettwein warned that in the ministry’s assessment the Namibian economy is suffering from the raw material endowment curse, which is typical for many colonial economies.
“When relying on exports of raw materials we remain price takers for our export commodities; as well as for our imported finished consumer goods. The economy remains prone to external shocks and price volatility in the global market. We are perpetually forfeiting economic opportunities to those who beneficiate the raw materials imported from Namibia and we are continuously exporting jobs that are created in value chains based on our raw material supply,” cautioned the trade minister.
In a recent report on Namibia, the International Monetary Fund (IMF) stated that although Namibia has been one of the more stable economies in Africa, its ballooning import bill could in the long-term pose a major threat to government expenditure. The IMF is of the view that Namibia could double its manufacturing output from 6 percent annually and reduce its rising import bill by 10 percent, if focus is emphasized on growing secondary and tertiary industries. “I cannot agree more with this sentiment,” said Schlettwein.
Historically, Namibia’s manufacturing sector has been inhibited by numerous factors, including a lack of a serious capitalization for major manufacturing projects, limited access to finance, limited skills availability, high input costs (particularly utilities and transport), small domestic and market access constraints for export, limited access to production technology as well as stiff competition from subsidized imports.
However, Schlettwein noted that in terms of market size and access, Namibia has made significant progress. He said that as a member state of the Southern African Customs Union (SACU), the country is part of a single market that includes South Africa, Botswana, Lesotho and Swaziland.
“As a member of the SADC free trade area Namibia has quota and tariff-free access for about 90 percent of all tariff lines into the SADC area, save Angola and DRC. With the European Partnership Agreement initialled we have quota free, tariff free access into the world’s largest market, the EU. As a member of SACU, Namibia has preferential access into the EFTA (Economic Free Trade Area) group of countries (non-EU countries) and to the MERCUSUR group of South American countries. Namibia has therefore good access into the global market. What we however do not possess as yet is the productive capacity to produce finished goods with which to trade,” warned Schlettwein.
The conference and exhibition ended on Friday and has the theme “Unlocking and Optimising our Resource Potential”. The conference focussed on exploration, energy and investment and was organised by Rich Africa Consultancy.
Related News
G20 vows to boost global economic growth by 1.8 pct
The G20 finance summit ended Sunday in Cairns, Australia with a commitment to a 1.8 percent growth target designed to boost the world economy by 2 trillion U. S. dollars.
The world’s most powerful finance ministers announced plans to add 1.8 percent to their combined economic output, a move that will create millions of jobs.
Australian Treasurer Joe Hockey, who was chairing the G20 meeting, said the IMF and OECD have looked at over 900 measures put forward by countries, and estimated that these efforts could lift global GDP by 1.8 percent through to 2018.
“We want to create the environment for private sector-led growth, and provide our citizens with more jobs and better living standards,” he said.
Hockey said investment in infrastructure was one of the core G20 growth strategies.
“We have focused on lifting investment in infrastructure because of its potential to address demand weakness. It is also a key driver for improving productivity,” he said.
“We have now agreed to progress a multi-year Global Infrastructure Initiative. This initiative consists of an integrated set of actions to increase quality infrastructure investment across the G20 and beyond.
“We have committed to developing a database of infrastructure projects to help match potential investors with projects.”
Hockey said the G20 meeting agreed that monetary policy should continue to support the economic recovery, and that it should particularly address deflationary pressures where these are evident.
“Ministers and central bank governors are all too aware of the potential for a buildup in financial risks arising from prolonged, low interest rates,” he said.
“All are committed to closely monitoring these risks and building even stronger economic policy frameworks, which are the ultimate defence against the damaging impact of renewed financial market volatility.”
Hockey said the G20 was unified in its mission to modernise global tax rules and close gaps that have emerged in recent years.
These new tax rules are aimed at multi-national companies who are using legal loopholes to avoid paying tax.
On Saturday, OECD Secretary General Angel Gurria released a series of recommendations that are aimed at cracking down on tax- cheating of big corporations.
Hockey said the G20 had endorsed far-reaching initiatives which will arm its tax authorities with the information that they need to identify tax evaders through the automatic exchange of information using a Common Reporting Standard (CRS).
“We agreed to begin exchanging information through use of the CRS commencing from 2017. This will send a strong deterrence message to tax cheats with immediate effect. We are urging other jurisdictions, particularly financial centres, to match our commitment,” he said.
Hockey said improving financial regulation was central to future-proofing of the global financial system against shocks.
“As a result of policy action, our financial institutions are more resilient and less likely to wreak damage on our economies and citizens through costly failures. They have more and better capital, and have more defences against liquidity pressures,” he said.
In conclusion, Hockey said the G20 finance summit was a success because its members addressed global growth targets, global infrastructure initiatives, financial sector reform and tax integrity.
“As of today we have committed to over 900 policy initiatives that help to make the economy around 2 trillion U.S. dollars larger within 4 years. This represents millions of jobs,” he said.
Related News
Bloc strikes deal with EU on fresh produce
The East African Community has accepted a draft agreement for fresh produce exports to the European Union market.
On Saturday evening, the EAC Council of Ministers accepted a proposal by the EU to sign a deal before October 1.
The agreement, known as the Economic Partnerships Agreements (EPAs), means that Kenya will avoid heavy taxation, which its exporters would have faced in the EU had the regional bloc failed to reach consensus on outstanding issues.
“This breakthrough is good news and a clear indicator that integration has taken root,” said Commerce and Tourism Cabinet Secretary Phyllis Kandie, who chaired the Arusha meeting.
“The agreement is particularly significant to Kenya who stood to lose billions in exports to the EU if a deal was not finalised by October 1,” she said.
However, the decision appears to have been reached too late, since Kenyan flower exporters will have to pay taxes from October 1 after all. This is because the time available will not be enough to implement the provisions of the deal.
Foreign Affairs Cabinet secretary Amina Mohammed said the EAC had written to the EU informing it that they had reached an agreement.
“I must caution that because of the delays, we may have to meet a higher degree of taxation, because of the process it will have to go through to be implemented,” Ms Mohammed said on Sunday.
“We still have a gap of one to two months, but that is not big because we would have faced a gap of one to two years,” she added.
Under the terms given to the bloc, an agreement reached before the deadline means the EU will impose taxes but will refund the fees after the deal is implemented.
PAYING DUTY
EPAs govern trade relations between African countries and the European Union. They allow developing countries to export products to the EU market without paying duty. EAC was lagging behind other blocs such as SADC and Ecowas, which had already signed deals with the EU.
Kenya says it will lead EAC members in lobbying to be put at the same level with countries from other blocs.
Representatives from the regional bloc will now travel to Brussels, Belgium, to sign the agreement with the EU.
The two sides were expected to have signed the deal by Monday, but issues to do with export taxation regime and rules of origin delayed the plan.
Kenya wants a flexible regime to enable the country introduce preventive measures especially in times of drought, without burdening the farmers.
Kenya could have chosen to negotiate alone with the EU, but Nairobi opted to bring in the regional bloc, saying it would accelerate integration.
Related News
It takes all of us: Stretching the space for political agreement on climate action
The rising level of anticipation around the UN Secretary-General’s call for climate leadership has been palpable over the past few weeks, and especially so here in New York at the People's Climate March today, with Climate Week about to start and the UN Climate Leadership Summit just two days away. At the World Bank Group, we have been fielding calls from our clients – companies and countries – who are asking for support and wanting to know how they can engage on the different climate initiatives that are coming together across all sectors of the economy. Standing in my daughter’s school yard talking to other parents last week, we discovered that many of us would be joining the march. In our family’s religious community, buses were organized and rooms offered to those headed to New York to add their voices to the call for action. New York is just one location – the march organizers are talking about more than 150 other climate action events around the world.
Before stepping off, let me try to lay out how I believe this Summit can help spur action and achieve the speed and scale of action we need.
1. The Summit can stretch the zone of possible agreement
In negotiation theory, with interest-based negotiations, there is a concept of a zone of possible agreement. The Summit can help expand the political space and stretch that zone.
At the Summit, we will see an extraordinary array of concrete actions stemming from partnerships – coalitions of the working – creating that political space. It starts with carbon pricing. We have seen a remarkable groundswell of support for pricing carbon as countries, states, provinces, cities, and companies share how they are do so now, how it is boosting innovation and creating jobs, and how it will shape their futures.
With so many leaders committing to deal with the economic drivers of climate change, we begin to open up the possibility of a better agreement at the international climate negotiations in Paris in 2015. We are no longer talking about “well, if we only priced carbon then things would be different or better.” Now, a sizeable portion of the world’s population has carbon pricing, and many more jurisdictions are committed to introducing it. The companies that make our breakfast cereals, our mobile phones, fly us around the world, and provide out banking services and manage our pensions use carbon pricing in their decision making. Moving past the if and when, we can now refine the how and learn from each other.
2. The Summit has secured, once and for all, that climate is everybody’s business
For the first time since Copenhagen, the climate negotiating round in 2009, climate change is now back in the in-trays of presidents and prime ministers. In the World Bank Group, we are working to support finance and ministers of economy and planning as they take on the complexity that climate change brings to their work.
The mobilization of CEOs from every industry sector from around the world is also new since Copenhagen, saying that climate action is fundamental to business planning. It is central to the long-range planning and profitability of companies in every part of the economy. What feels very different is the realization in both public and private sectors that this has to be done together. We need leadership in both, and we need to act together.
Expanding even further on that, by having faith-based communities and civil society and industry and women and government and the UN Secretary-General all marching shoulder-to-shoulder for action today, the message is unmistakably “climate change is shaping my future, and this is my business.”
3. Leadership really does matter
We’ve seen in the last few days running up to the Summit, economic report after economic report and many economic commentators saying action to shift course to mitigate climate action is affordable, and that dealing the affects of climate change will only get more expensive the longer we delay.
In recent years, we have seen a remarkable scientific consensus emerge. Now, a strong economic consensus is also emerging. The missing ingredient is widespread political leadership. The UN Secretary-General has called everyone together for the Summit, and they’ve responded – 125 or more heads of state or deputies are coming.
Leadership matters. Our leaders have the scientific and economic analyses in front of them. They will have to lead over the next 15 months, and the quality of that leadership will matter.
4. Climate change is the ultimate threat intensifier
Climate change makes every aspect of development more difficult. From now through 2015, at the same time as we try to forge an agreement on climate action beyond 2020, the world is also embarking on negotiations around the next generation of development goals. The Summit reminds everybody of the context for achieving development goals: that we are facing a carbon-constrained world where climate impacts are deeply destabilizing, where the poor are made more vulnerable, and where climate change may push even more people back into poverty.
This context completely changes the way we can achieve the sustainable development goals (SDGs), and it makes action to mitigate climate change and action to build resilience critical political and economic priorities and, frankly, the moral underpinning of the SDGs.
5. Where movements build, they do so because they touch our lives
The march, the Climate Week activities, and the Summit are beginning to make clear to people that this is an important issue for all of us – that it’s everybody’s business, and that there are ways in which we can all feel useful.
That last point is fundamental to sustaining the movement. This is big and global, but it's about you and me. It's for leaders to decide, but it's about who we choose to lead us. Government leader, business leader, investor, faith leader, and anyone else who cares about creating a livable future, we need all of you. We need all of us.
Rachel Kyte is World Bank Group vice president and special envoy for climate change.
See also: What Does Carbon Pricing Success Look Like? Ask These Leaders
Related News
AfDB continues to show strong leadership in financing low carbon development in Africa
Six leading Multilateral Development Banks (MDBs) provided in 2013 about USD 24 billion worldwide in financing for projects in developing and emerging economies that address the challenges of climate change according to the third annual joint MDB report on climate finance. The report, released on 19 September demonstrates the shared engagement expressed by the six MDBs last week to reinforce transparency of their financing in climate change mitigation and adaptation.
The new report analyses the financial commitments from the institutions to support climate change mitigation and adaptation. The information provided has been expanded to include both a more detailed sector based breakdown and a split between public and private operations, as well as a regional breakdown of MDB financing.
From the total USD 24 billion in climate finance provided in 2013, 80%, or USD 19 billion, was dedicated to mitigation and 20%, or nearly USD 5 billion, to adaptation. Of the total commitments, 9%, or USD 2 billion came from external resources, such as bilateral or multilateral donors.
Following the launch of the report, Alex Rugamba, Director of the Energy, Environment and Climate Change Department of the AfDB declared: “This year’s climate finance report shows our continued commitment to safeguard the environment while engendering socio-economic development among the Bank’s regional member countries. The Bank’s investments in low carbon development have amounted to US$3.6 billion from 2011 to 2013 while that of adaptation has amounted to US$1.5 in the same period. Despite the progressive work by ourselves and our partner MDBs, the amount of climate finance mobilized is still too low to match the challenge. It will require a concerted global effort to mobilize sufficient climate finance resources”.
The report shows that regional coverage for 2013 is quite balanced with two regions (East Asia and Pacific, Non-EU Europe and Central Asia) each receiving roughly 20% of total climate finance provided, and four regions (South Asia, Sub-Saharan Africa, Latin America and Caribbean, EU New Member States) 10-15% each.
In Africa the AfDB has not only tackled climate challenges, but it has also seized the opportunities brought about by climate change to promote climate-resilient and low-carbon development within African countries.
The African Development Bank has made a commitment to invest US$9.6 billion between 2011 and 2015 to finance its climate-smart activities. Having made investments of US$5.2 billion between 2011 and 2013, it is on target to meet, if not surpass, this commitment with an increasing number of investments.
Related News
African nations urged to strengthen food quality so as to access more foreign markets
African countries have been advised to hold common position of issues of interest regarding food security, quality and safety when they are presented at the global level.
The advice was given mid this week in Dar es Salaam by the Permanent Secretary in the Ministry of Industry and Trade, Uledi Mussa, when officiating a three-day Coordinating Committee for Africa (CCAFRICA) colloquium on Codex funded by the African union and the United States of America.
At the meeting which was hosted by Tanzania, through the Tanzania bureau of Standards, Mussa said participants must use the opportunity to at least level the standards used by developed countries with those used by African countries in areas of goods exported and imported.
“In most cases we fail to use these opportunities even in preferential markets because we cannot meet international standards,” he said.
The PS noted further that there was need for all standards to reflect the need of the people considering that health is very important.
“But there are time when the standards of our colleagues (developing countries) are too stringent that prohibit African goods to access their markets,” he said.
Now, he said there was need for the participants to address such challenges in order to meet the standards desired by consumers.
He said sometimes it is difficult for developing countries to have traceability of their goods which is being followed by markets in the European Union and the USA.
“How is it possible to trace cattle raised by a Maasai in Arusha and expect it to have quality that meets EU standards? This is impossible. That is why this meeting calls for all African experts to chart out ways of reducing stringency of some international standards to enable some of our goods to also penetrate in the international markets,” he said.
Already the government has set disease free region as a starting pointing where cattle will be raised and later slaughtered to get meat that can be sold in the international market, he said.
For her part, the acting Director General for the Tanzania Bureau of Standards Tumaini Mtitu said the Africans have great hope that the meeting will open doors for more discussion on issues standards because now they were discussing in one voice challenges that all countries have been facing.
She said the government of the USA has funded the project after hearing the cry of African countries regarding failure of their goods to access international markets.
“Now they what us to come up with what we need in various areas including food safety, import and export of goods, inspection, hygiene and areas of nutrition,” she said.
For her part, the Mary Francis Lowe U.S Codex Manager said sponsoring issues like food safety standards is very important for both the US and Africa.
“We need to Identify areas of interest and what challenges are we meeting so that we find our solution together,” she said.
She stressed: “We want to protect and support our consumers hence food safety standards is vital. We export and import a lot; we want African countries to also reach our level of exporting and importing.”
Related News
UN and AU commit to advance business and human rights agenda in Africa
The first African Forum on Business and Human Rights concluded today [18 September 2014] with a strong call for action to make business a force for improving human rights in Africa. At the meeting, senior officials and experts underlined that the African Union and the United Nations will join forces to support responsible business practices in line with fundamental human rights standards.
“Amid rapid economic growth and new investments in land and natural resources, there is an increasing awareness of why human rights must be brought into business strategies and operations,” said Michael K. Addo, chair of the UN Working Group on Business and Human Rights.
”Not only is this the only way to ensure the interest and welfare of the people of Africa, it is also good business and critical for the sustainability of investments,” added Abdalla Hamdok, Deputy Executive Secretary of the UN Economic Commission for Africa.
The African Regional Forum, held from 16 to 18 September in Addis Ababa, brought together 200 representatives of governments, business, civil society, and national human rights institutions to debate the defining challenges of Africa today.
At the core of discussions were the UN Guiding Principles on Business and Human Rights, the global authoritative standard for preventing and addressing negative human rights impacts linked to business activity.
“All too often have human rights concerns fallen by the wayside in the race to attract foreign investment. We have to fundamentally break with this logic and ensure that business and respect for human rights go hand-in-hand,” said AU Commissioner for Political Affairs, Aisha Abdullahi.
“The UN Guiding Principles provide a globally agreed global standard on how to make business and human rights work together. What is needed now is to translate these standards into concrete action plans and implementation tools tailored to the realities of African countries”, she added.
The Regional Forum was convened by the United Nations Working Group on Business and Human Rights, with the support of the African Union Commission, the United Nations Economic Commission for Africa and the Office of the United Nations High Commissioner for Human Rights.
Participants from across Africa called for responsible business practices that respect human rights, provide adequate safeguards to protect against business-related rights abuses, and ensure victims can seek redress.
National action plans were identified as an important tool to advance the business and human rights agenda. Such plans should be developed though inclusive consultative processes, bringing on board all stakeholders, to identify problems and finding solutions.
At the Regional Forum, the AU Commission and the UN Working Group committed to work jointly to advance the business and human rights agenda. Specific steps include the development of practical tools adapted to the realities in African countries to implement the UN Guiding Principles.
The African Forum will feed into the next global UN Forum on Business and Human Rights – the world’s largest dialogue on business and human rights – to be held in Geneva from 1 to 3 December 2014.
The Working Group on human rights and transnational corporations and other business enterprises was established by the UN Human Rights Council in June 2011. Its five members are: Michael Addo (current Chairperson-Rapporteur), Ms. Margaret Jungk (Vice Chair), Mr. Pavel Sulyandziga, Ms. Alexandra Guáqueta and Mr. Puvan Selvanathan. The Working Group is independent from any government or organization. It reports to the Human Rights Council and to the UN General Assembly.
Learn more about the UN Forum on Business and Human Rights, to be held in Geneva from 1 to 3 December 2014.
Africa Global Business Forum 2014
The Dubai Chamber of Commerce and Industry has announced that five African presidents, three prime ministers and more than seven ministers have confirmed their presence at the Africa Global Business Forum 2014.
Organised by Dubai Chamber under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice-President and Prime Minister and Ruler of Dubai, the forum will be held at Atlantis, The Palm on 1 and 2 October. It will also be attended by a large number of business leaders and key decision-makers from Africa and the region.
Dubai Chamber has also announced the official partners and sponsors of the Africa Global Business Forum, which will be the region’s premier event on investing in the African continent.
The list includes the Investment Corporation of Dubai (ICD) as a title partner, DP World as a platinum sponsor, Dubai Islamic Bank and Nakheel as gold sponsors, Dubai Investments and Eagle Hills as silver sponsors, while Standard Bank and ECOWAS are official partners.
To be held under the theme ‘New Realities – New Connections’, this year’s forum is by invitation only and will bring together an exclusive audience of 500 top government ministers, officials and corporate decision-makers, heads of multinational companies, directors of private banks, wealth management companies and sovereign funds, Emirati and global business leaders and leading officials of investment promotion agencies in Africa.
Local presence at the Africa Global Business Forum 2014 includes HE Reem Al Hashimy, UAE Minister of State and Managing Director of Dubai Expo 2020, HE Sultan bin Saeed Al Mansouri, UAE Minister of Economy, HE Mohammed I. Al Shaibani, Executive Director and CEO of the Investment Corporation of Dubai and HE Sultan Ahmed Bin Sulayem, Chairman, DP World.
Confirmed speakers and delegates include HE Dr Mulatu Teshome, President of the Federal Republic of Ethiopia, HE John Dramani Mahama, President of the Republic of Ghana, HE Macky Sall, President of the Republic of Senegal, HE Paul Kagame, President of Rwanda and HE Armando Guebuza, President of Mozambique. HE Luc Adolphe Tiao, Prime Minister of Burkina Faso, HE Amama Mbabazi, Prime Minister of Uganda and HE Moussa Mara, Prime Minister of the Republic of Mali, are among other participants.
Africa’s delegation to the forum will also include Ministers of Foreign Affairs, Energy and Finance from the Republic of Mozambique, Ministers of Commerce and Industry & Investment Promotion from the Republic of Mali, in addition to HE Cheick Mobido Diarra, Transitional Prime Minister of Mali, Amb. Amina Mohammed, Cabinet Secretary, Ministry of Foreign Affairs and International Trade, Republic of Kenya, H.E. Bernarda Goncalves henriques da Silva Martins, Minister of Industry, Republic of Angola, HE Festus Mogae, the Former President of the Republic of Botswana, HE Admiral Mohab Mohammad Hussein Mameesh, Chairman of Egypt’s General Authority for Economic Zone, North-West Gulf of Suez, Hon. Dr Richard Sezibera, Secretary General, East African Community (EAC), HE Kadré Désiré Ouédraogo, President of the Economic Community of West African States Commission (ECOWAS), and Mr. Aliko Dangote, President and Chief Executive Officer of the Dangote Group and Africa’s richest man.
HE Hamad Buamim, President and CEO, Dubai Chamber, said the presence of prominent business leaders and decision-makers from Africa and Dubai will enrich the forum and make it an ideal platform to show African companies how to utilise the emirate’s experience in stimulating economic renaissance while enhancing the competitiveness of Dubai as a gateway to investing in Africa.
HE Buamim pointed out that under the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, Dubai has become the main venue for UAE companies seeking to expand in promising African markets, stressing that Dubai Chamber’s plan to open more representative offices throughout Africa is a true reflection of its commitment to raise the competitiveness of the business community in Dubai.
Dubai Chamber’s President and CEO also highlighted the calibre and diversity of the Africa Global Business Forum’s official partners and sponsors, saying that the active participation of these leading UAE companies mirrors their intention to explore further investment opportunities in Africa.
“Dubai holds in high value its relationships with the nations of Africa, and we at ICD look forward to hosting our esteemed guests at this year’s Global Business Forum,” commented HE Mohammed I. Al Shaibani, Director General of HH The Ruler’s Court, Government of Dubai, and CEO and Executive Director, Investment Corporation of Dubai (ICD). “This gathering of heads of states, ministers, decision makers, and businessmen from Africa and the rest of the world is a unique opportunity to showcase the strong potential that the African continent holds for investors and investees alike. Our geographical proximity and cultural affinity position us well to bring this great opportunity to the world and to bring the world to Africa,” he added.
HE Sultan Ahmed Bin Sulayem, Chairman, DP World, said: “Africa has great potential for growth and efficient infrastructure is key in stimulating that with ports acting as the gateway to world trade. Each country has its own unique set of circumstances and connecting with the hinterland as well as neighbouring countries inland is an important ingredient in future development. Dubai and the UAE will continue to serve as a hub connecting the continent, especially East Africa, to Asia and beyond.”
Ali Rashid Lootah, Chairman,Nakheel, added: “We are honoured to be a gold sponsor of the Africa Global Business Forum 2014. This prestigious event is the perfect platform from which to explore opportunities for investment and collaboration between the UAE and Africa.”
Dr. Adnan Chilwan, CEO, Dubai Islamic Bank, said: “DIB has already established successful franchises across key markets in Asia and the Middle East and it is widely seen as a torchbearer in the globalisation of Islamic finance. Since International expansion has always been a core component of the bank’s growth agenda, we have plotted our targets on the map in Asia and East Africa which clearly represent immense opportunities for growth, with the increasing urbanised population and rapidly improving infrastructure. With this in mind, DIB will pursue these opportunities and look forward to participating in the AGBF, which presents the ideal platform for investors to connect and engage stakeholders from the region and will further entrench Dubai’s position as an investment gateway into Africa.”
Khalid bin Kalban, Managing Director and CEO, Dubai Investments PJSC, said: “Africa is an important emerging market and we would like to tap into investments opportunities on offer for bilateral trade. At Dubai Investments, our strategy is focused on expanding our global footprint and Africa is a strategic market in our growth plans. Our association with the Africa Global Business Forum will help us understand, network and discuss prospective joint cooperation across various business domains.”
Dr Rassem N. Zok, CEO of Standard Bank Middle East and North Africa, said: “We are honoured to be partnering with Dubai Chamber for this flagship event as it fully captures the mandate of Standard Bank’s Dubai hub; ie to link Gulf based investors and corporates to the exciting flow of investment opportunities we are seeing across our 19 presence countries on the continent, in a range of sectors including mining, oil and gas, power and infrastructure and FMCG.
As Africa’s largest bank by earning and total assets, the Standard Bank Group highly appreciates and supports the great work that the Chamber has been undertaking to highlight the African growth stories; we wish the event every success,” he said.
A recent study by the Dubai Chamber of Commerce and Industry in collaboration with the Economist Intelligence Unit (EIU), has highlighted economic and investment opportunities in Sub-Saharan Africa and its potential to become the world’s fastest growing region. Increase in economic reforms, rising fiscal spending and ties with fast growing economies in Asia have been identified as the main factors supporting the economy in Sub-Saharan Africa.
Related News
Border post construction brings hope to traders
Traders crossing the Uganda-Rwanda border for business will soon have their work movement made easier following the rehabilitation of the customs office for smooth movement of goods and services from either country.
The border post undergoing reconstruction will have offices for security agencies, immigration and revenue personnel, weigh bridges, stores and bonded warehouses. A market for daily trade shall also be constructed for small commodities including food stuffs and other items which has not been common at the border.
Ntungamo District chairperson Denis Singahache said lack of good customs facilities has undermined business across the border despite the opening of the newly constructed border entry at Mirama Hills.
“Our people have been failing to do proper trade in basic commodities because they lack clearance. Travelling up to Katuna (major border post on Rwanda border) has been too much for our traders here. Most of the people had opted to smuggling because it has been the only way to get goods inside and out of Rwanda,” Mr Singahache said.
The construction is in the final stages with major structures including bonded houses, security and immigration offices at either side already being occupied. Two bridges shall also be constructed at the river separating the two countries.
The Uganda National Roads Authority spokesperson, Mr Dan Alinage, said the intention is to create a one-stop border post with all the requirements being done at the same place.
“This will ease trade and promote marketing at both sides,” Mr Alinange said.
Other entry points under construction include Bunagana on the Uganda-Rwanda-Congo border, Busia on the Uganda-Kenya border, Arua in West Nile and Malaba on Uganda-Kenya crossing, according to Mr Alinange.
THE POST
Mirama Hills border post was the major entry at the Uganda Rwanda crossing but was destroyed during the 1979 war against Idi Amin. The remaining structures were brought down during the 1990–1994 Rwanda liberation war. Nothing had been put up since.
It is a shorter distance through Mirama Hills to Kigali. Border business has been diverted to Katuna in Kabale District, about 100km longer to Kigali. Mirama border is 23km from Ntungamo Town and can be accessed through Kikagate on the Uganda Tanzania border, about 25km away. It is 120km from Ntungamo Town to Katuna border.
Related News
Africa is moving against the tide to ensure water, food and energy security in a changing climate
Africa plans to lay out a strong case for increased investments in the water, food and energy sectors at the UN Climate Summit in New York to be held on 23 September, according to the Secretariat of the ClimDev-Africa Programme in Addis Ababa, Ethiopia.
In a joint statement, the African Union Commission (AUC), the United Nations Economic Commission for Africa (ECA) and the African Development Bank (AfDB) have convened a major pre-event in New York on 22 September at the Conference Room 7, in the General Assembly building, under the theme, ‘Moving against the tide: “Africa rising to seize climate change opportunities” Water, Food and Energy Security’. The event aims to bring to the fore Africa’s particular climate challenges and opportunities and its efforts to turn these challenges into development opportunities.
ClimDev-Africa partners (AUC, ECA and AfDB) organize regular international encounters to elicit new knowledge and innovative ideas on how best Africa could rise to the challenges posed by the impacts of climate change.
During the Third International Conference on Small Island Developing States (SIDS) in Apia, Samoa, at the beginning of this month, they convened a high-level panel discussion on the theme The Paradox of the ‘small’ securing development opportunities in the face of climate change in Africa Small Island Developing States (SIDS), chaired by Mr. Carlos Lopes, the Executive Secretary of the ECA.
During the New York Climate Summit, African leaders hope to catalyze international actions and support to Africa’s climate mitigation and adaptation efforts, especially in tackling the nexus between food, energy and water.
The side event aims to showcase how the ClimDev-Africa programmes has strengthened Africa’s capacity to ‘move against the tide’ to ensure water, food, energy security in changing climate, according to Ms Fatima Denton, Director of Special Initiatives Division at the ECA, and one of the key organizers of the side event.
Climate change poses a unique set of challenges to Africa, threatening to destabilize its key sectors – agriculture, water and energy. Africa is rising to the challenge of transforming its agriculture, while addressing the continent’s food, water and energy security in a bid to sustain its current and future growth.
The side event will bring together policy makers, researchers, climate change negotiators, partners and other stakeholders to deliberate on how opportunities in climate change could be harnessed to transform agriculture, taking into account its linkages to other key economic sectors such as energy and water resources.
The Climate for Development in Africa (ClimDev-Africa) Programme is a joint initiative of the African Union Commission (AUC), the United Nations Economic Commission for Africa (ECA) and the African Development Bank (AfDB). It is mandated at the highest level of African political leadership (AU Summit of Heads of State and Government) to create a solid foundation for an appropriate response to climate change. African Ministers of Finance, of Planning and of Environment have also emphasized the potential role of the ClimDev-Africa in building resilience to the impacts of climate change in the region.
Ms. Denton added that the event will provide an opportunity to further consolidate the place of ClimDev-Africa as an institution of choice for climate change issues in Africa.
“ClimDev-Africa hopes to underscore the urgency of making needed investments and interventions to address challenges facing vulnerable groups as well as to focus on opportunities in climate change in order to bring about long term resilience to impacts of climate change and development” she explains.
For more information on the participation of ClimDev-Africa partners at next week’s summit in New York, go to http://www.climdev-africa.org/unsummit2014.