Craig Eisele on …..

February 1, 2012

The Threat of a Water War Egypt and Sudan to Stand Together

Egypt and Sudan draw battle lines with upstream nations over access to the Nile

NATIONS FIGHT over water, especially when access is curtailed or threatened, and there are the ingredients for a battle over the 4,100-mile long Nile River. Egypt and Sudan have counted on the abundance of the Nile’s life-giving flow. Now upstream nations want to keep more of the abundance for themselves. Ethiopia, Uganda, Kenya, Tanzania, Congo, Burundi, and Rwanda are asserting their rights to more of the river’s relentless flow. Washington needs to intervene to forestall hostilities between the countries.

Britain conquered Uganda and Kenya in the 19th century in part to protect the precious Nile waters from being diverted away from their critical possession of Egypt, the Suez Canal, and the Red Sea route to India. Without the yearly sustaining floods of the Nile, agriculture and settlement in the valley of the river from Luxor to Cairo and Alexandria would have been impossible.

When Britain in the 1920s controlled all of the waters of the Nile, bar those sluicing down the Blue Nile from Ethiopia, it signed a pact that gave Egypt and Sudan rights to nearly 75 percent of its annual flow. This 1929 agreement was confirmed in 1959, after Egypt and the Sudan had broken from Britain but while the East African countries were still colonies.

A new 2010 Cooperative Framework Agreement, now signed by most of the key upstream abutters, would give all riparian states (including the Congo, where a stream that flows into Lake Tanganyika is the acknowledged Nile source) equal access to the resources of the river. That would give preference to large scale upstream energy and industrial, as well as long-time agricultural and irrigation uses.

Egypt and Sudan have refused to sign the new agreement, despite years of discussions and many heated meetings. Given climate change, the drying up of water sources everywhere in Africa and the world, Egypt, which is guaranteed 56 billion of the annual flow of 84 billion cubic meters of Nile water each year, hardly wants to lose even a drop of its allocation. Nor does Sudan, guaranteed 15 billion cubic meters.

About 300 million people depend on the waters of the Nile. The upstream countries, with still growing populations, believe that their socio-economic development has long been unfairly constrained by Egypt’s colonial-era lock on the river. Ethiopia and Uganda have not been able to support agricultural schemes. Nor have they been able fully to harness the river or its tributaries for industry and power. Both have suffered from major hydroelectric shortages in recent years.

Egypt has declared the continued surge of the Nile waters a “red line’’ that affects its “national security.’’ There is discussion in Egypt about the use of air power to threaten upstream offenders, especially if Ethiopia becomes too demanding. In theory, Ethiopia could divert much of the Blue Nile to its own uses. Or Ethiopia and others could charge Egypt for water that has largely escaped modern pricing.

Egypt is sufficiently disturbed by Ethiopia’s potentially aggressive water designs that it has recently made friends with Eritrea, Ethiopia’s arch enemy. In 1998, Ethiopia and Eritrea went to war over slices of insignificant mountainous territory. Although the shooting ended in 2000, a peace settlement handed down by the World Court in 2006 has still not been observed by both sides. If Egypt attacks Ethiopia, Eritrea might join in. Egyptian generals claim that Israel is on the other side, helping the upstream nations by encouraging their thirst for water and by financing the construction of four hydroelectric projects in Ethiopia.

All these issues provide conditions for a war over water. Washington, Egypt’s largest donor, has significant leverage to de-escalate tensions and mediate between the haves and have-nots. After all, Washington supports both Egypt and Ethiopia lavishly and militarily. It needs to demand that all sides stand down.

July 13, 2011

What is a non-traditional Strategic Planner?

What is a nontraditional Strategic Planner?

The easy answer is one that does not use the same format as Boston Consulting Group or Booz Allen. But that is too easy. See the large firms are often brought in to help boost someone else’s plan or to Design and implement a Management Information System. But who challenges the Top Management of Major Companies today. The short answer is almost nobody. And the reasons are as obvious as fear and as subtle as brown nosing.

A NON traditional Strategic Planner can come in many forms but for the sake of this post… and of course to bolster my own work,,, I would like to share with you my approach to Strategic Planning.

Let’s start with a simple idea. Often the problem that a person or company thinks they are facing is not really the problem but a symptom. There are other times that the problem is misstated. But realizing that the core issues are not being addressed is an afterthought most of the time.

Then there is the failure to see the future with greater accuracy. A bold statement given that NO ONE can see the future but we can predict with greater accuracy the further we extend our information sources outside of the Core Business.

In deciding a future for a company it is always important to identify issues affecting the employees, the Supplies and the Customers.

The Non traditional approach will see what is happening in these entities world and what is the potential that their business or behavior will be affected. Not just stopping there but going even further as to what may be happening in the Communities from Local to National to International and then what is happening in Technology outside of your core.

The purpose of this extensive network information gathering is to provide not only data for current operations but to see where the future may  be affected by those external forces.

One need only look at Facebook’s phenomenal growth and now Facebook is facing n uncertain future in how to grow as the number of subscribers is flattening out and they look to Apps to grow or to change the paradigm in how their growth is measured.

Changing the paradigm is always an interesting way to change the future of a company… the Companies that are most successful do this on a regular basis and are leaders. The rest are followers and will grow or decline in response to how quickly they can adapt.

But there is another approach that is often over looked. When companies/ organizations or even societies face uncertain futures the Questions that are posed are usually a knee jerk reaction to a change in environment. WE HAVE A PROBLEM they say… but as I said above the problem they state is usually just a symptom and if treated as the sole problem does not address what is really going happening.

Sometime the problems are “unsolvable” in the context that they are presented. This is where my favorite technique is used the most and to the greatest advantage,

“IF YOU CANT SOLVE THE PROBLEM YOU ARE FACING YOU ARE FACING THE WRONG PROBLEM”

The second part of this is also appropriate in evaluating if the supposed problem is really a problem or just a symptom

“CHANGE THE DEFINITION OF THE PROBLEM TO COME UP WITH WORKABLE SOLUTION”  

This also opens the door to not only being an industry leader but ancillary business with limited windows of opportunity and fabulous returns on investment.

A Practical Example;

Egypt: a Country of 80+ million people that depend on the Nile River.. There is a nearly a century old Treaty brokered by the British that dictated the amount of water that must flow to Egypt from the riparian Countries (those upstream and on the Blue and White Nile Rivers). This was not just for the use of the Egyptian people but to prevent the salty water of the Mediterranean from moving up the Nile River and contaminating Fresh water (potable water) supplies.

Most of these countries are breaking the treaty for various reasons. The most egregious of these is Ethiopia which claims the water as its own for purposes of Industrial, Hydro Electric, Dams, Commercial, Agricultural and human consumption without regard to Egypt’s critical needs. Adding to this siphoning off of water is the study by Egypt that even with all the water previously guaranteed by the treaty it would have water shortage problems by 2016.

The PROBLEM that is stated is that these riparian countries must release the water to Egypt. In all frankness that will not happen. Egypt has said it vies the taking of this necessary water as an act of war, and they appear to be justified. But WAR in a conventional manner is not a resolution to the problems Egypt really faces.

Some have suggested that Egypt use Desalinization plants that consume power that is still in short supply in Egypt and if Fossil Fuel is used then the huge cost is difficult to bear for the industrial nations of Europe and North America let alone Egypt Egypt has authorized a nuclear power plant they hope will help but it does not sole the REAL PROBLEM.

From my statements above you know that I have attempted to redefine the problem. The problem is how much water flows through the Nile River. You may at first say that is obvious and given the current attempts to resolve the problem as most see it (that being the Riparian countries excessive use) that there is little hope of getting more water to the Nile. But you would be wrong in assuming that the above listed actions are the ONLY methods of getting water to flow in the Nile.

There is another way to bring water to the Nile… and yes I have found it… but I will not give it away at this time. This is how I do strategic planning… not only can I bring more water to the Nile for less than 500 million US Dollars but I can create and sustain 10’s of thousands of new jobs in the process. These jobs go a long way to improve the economy of Egypt and to foster greater stability as well. Basically this plan addresses several of Egypt’s needs at the same time.

How can Egypt pay for this… that answer is simple as well. With the exception of maybe 5 million dollars upfront the Entire project can be paid for with no other funds from Egypt or loans Guaranteed by Egypt or even by giving away things to outsiders. Others will pay if for no other reason than peace

This is the type of strategic planning I do. Find issues that appear to have no solution redefine those problems, devise a strategy that will not only address that particular problem but also other problems in the environment, incorporate other “benefits” into the solutions presented, and just as important find the economic benefit that pays for the solutions as implemented. It is a NON traditional manner of Strategic Planning… but something I think should be more main stream in all areas of business, government and society.

To be a truly effective Strategic Planner we must look beyond the reality presented to see if that is truly the reality. Challenge the conventional thinking and come up with creative but executable methods that incorporate benefits that are far reaching assure a future positive outcome.  It is not easy although it may appear to be. It takes a mindset that is not rigid, is flexible, and a think tank type approach. Simply it takes thought and creativity which few have today.

I am not soliciting business as I turn down 50 times more projects then I take on because most who seek my skills are not really looking for ideas they are looking for approval for their own. I am very very selective and of course expensive… but I generate returns far greater than most as I believe the economic realities demand profits in one way or another.

I am better in explaining things in person then I am in writing… as is the case for many my mind is usually faster than my fingers but I hope I was able to at least give you food for your thought processes

Craig Eisele

April 27, 2008

African Aid… Is It Really Aid Or Just Makes Us Feel Good??

African Aid… a study in inefficiency

OK… maybe I am not going to actually do a study… most of my data is allegoric (from stories). But it is a reality that Aid to Africa is not efficient for many reasons that are solvable.

When aid is given with strings attached such as the mandated use of the donor counties personnel or equipment and supplies then it is not aid to Africa it is aid to the Donor Countries’ manufacturing or consulting firms. Expert costs can be triple or even quadruple the cost of the same services in the Donor Countries because of travel, housing (to the donor countries standards) and high salaries of Donor country employees sent to Africa.

I have traveled to Africa frequently and have been in approximately 20 countries in the continent. While Greed, fraud and corruption do exist, it is the cost of goods and services that donor countries provide that takes a great deal of the AID that is supposedly given. Cash sent to most African Countries is subject to redistribution because of other more pressing needs. And sometimes the Strings on the aid have profound negative effects on other parts of the recipient African Countries economy and existing farming or manufacturing enterprises. There is an article in this blog about Namibia and Angola and the Cattle ranching that has been devastated by some of those strings to aid there.

I understand that Donor Countries want to try and maximize benefits to their domestic enterprises when giving aid… but competition for those aid funds can significantly reduce costs and maximize the benefit of the AID to the recipient countries.

Let me move to a different part of this issue… the raising of funds for Aid Organizations. Former President Bill Clinton has stated (paraphrased) that if there was profit to be made in solving global poverty then there would be no global poverty…. But that statement is based upon a false premise… that global poverty can be solved… I am adamant on this.. GLOBAL POVERTY CANNOT BE SOLVED…. Not in my life time… and not even in this century… poverty will always be with us as long as we are a society that functions on money… someone will always be at the bottom of the scale and hence we will always have poverty. This is a fact of life that cannot be dismissed out of hand. (Please note I am not tackling the issue of the measurement of poverty or its definition at this time… maybe later)

What we can do is significantly reduce poverty by revamping and reorganizing the AID that is given and the manner in which it is given.

People think that AID is free… it is not… every aid organization has to raise funds.. that take time, personnel and money… however we can make guidelines on how much of the aid given is actually used for those ongoing fund raising and strategizing efforts as well as the Organizations basic operations and expenses.. For this I am in favor of a sliding scale ranging from 3.5% to 20% depending on the total amount raised per year. This is not include the actual administration of the project (for which I feel not more than 20 % should be allocated to non-resident administration of the ACTUAL Project)

From personal experience:

I have been forming a new NGO (Non-Government Organization) and NPO (Not for Profit Organization) called the Africa Genesis Project. The mission is to “rehabilitate” the sub Saharan “trade routs” in this region. The studies have already been done showing the benefit in trade for the respective countries (a cost benefit analysis). But it does not even begin to show the increase in employment, local economies and the attraction to FDI (Foreign Direct Investment) that would accompany such a project.

The Cost for this is fast approaching 50 BILLION US Dollars. Is that a lot of money?? Yes it is… but in comparison to the 60 Billion dollars in aid for AIDS in Africa than this is smaller and brings more advantages (in my opinion) and allows the aid for AIDS to be delivered more effectively and efficiently to a greater number of people. I agree with the need for AIDS assistance… but I also know that the people of Africa need more.When it costs only 1,000 dollars to send a container to a Kenya Port but 10,000 dollars to take it inland at twice the time and takes 5 days to repair the truck afterwards,… this is an abomination and the extra costs are something the Africans cannot afford.

Roads bring JOBS, and jobs bring economic prosperity and that in turn brings peace and stability to Africa!!!

But how can we raise such amount of funds for the overall rehabilitation of Africa?? If ANYONE expects that Africa can finance this with its current economic situation and with the Debt that it already has, then that person is not fathoming the realities of the condition of Africa and worse is dismissing the prolonged suffering of hundreds of millions of people in Africa. Further it has allowed countries like China to take advantage of this situation to give “no string” loans that continue to exacerbate the problems in Africa.

The ONLY way to really help Africa is one MASSIVE injection of Aid that can transform most of Africa into a productive society. That aid can ONLY come from Governments around the world. That raises a major problem in how to even start such a fund raising effort to implement this project.

My calculations indicate I need 50 million dollars to START this project and 500 Million Dollars to continue to promote and administer the Africa genesis Project over 7 years.

Why so much?? One word answer… POLITICS!!!

I cannot even get an appointment with my own congressional or senate representative in the United States to present this project… and the form in which I presented is not in “proper form” with the relevant brochures and packages needed to promote such a massive project. Multiply that effort with my need to approach the governments of the United Kingdom, France and the rest of the EU, Japan. Australia, Canada, and the Middle East as well as many other countries, (as this is a global issue requiring a global solution) then you start to see not only the massive size of the Africa Project in Rehabilitating these trade routes, but the Global Efforts needed to see it though. And the ONLY way is to hire (at a significant cost) “Consultants” (lobbyists) who can effectively get this project into the hands of those who can make it happen in their respective Governments.

The Africa genesis Project will Guarantee that 96% of ALL money raised for the project will be spent directly on the project and not on fundraising, promotion or administrative expenses of the organization itself. Further that NO Distribution will be to any government organization UNLESS that Organization has actually performed or is performing real work on this roads project. Simply ONLY those actually working on the Road Project will be paid and 80 percent of ALL work must be by Local African Companies and using African employees.

We realize that a lot of Equipment must be purchased for this project. It is expected that Caterpillar and John Deer will receive about 500 million dollars each for equipment and spare part orders… HOWEVER WE MUST be able to negotiate process to reduce costs and maximize benefits to AFRICA. We will NOT tolerate paying even list, let alone OVER list as Caterpillar and John Deer have indicated in my limited discussions with them. The same for every other manufacture and supplier of other equipment, materials and supplies… COSTS will be PARAMOUNT in our vigilance to assure that this work can be done UNDER BUDGET. It is though our “lobbying” efforts that we will make sure that any “strings” attached to the aid given by donor countries for domestic purchases allow us to make bidding and negotiations fair practice in our efforts to supply this project. We cannot allow unfair profits (windfalls) to accrue to anyone on the backs of Africa and its people.

And yes, even I need to get paid, as I am not independently wealthy. So for those of you questioning that, I assure you I am NOT working for free and expect compensation that is reasonable for a project of this size. However I will note that I already know that there are many problems and issues that will need to be addressed on a project this size that will NOT be in the budget … hence my “compensation” will mostly be used for the resolution of those issues and to support the Africa Genesis Organization in its endeavors. Fist Aide Stations, water well drilling, education assistance and the like are just some of those things that are NOT in the Budget for this project and need to be taken care of but NOT from the 96% of the funds that were donated and are to be used ONLY for the Road rehabilitation project as already identified.

If you are a regular reader of this blog you know I have proposed creating a “backbone” infrastructure project that would transverse Africa as well as circumnavigate the Entire Continent, that would end up being approximately 70,000 Kilometers in length. This “backbone would have a 4 to 6 lane modern highway, an Electric Power line transmission, a railroad, and Fiber Optics and Oil and Gas and water pipelines, ALL TO BE FINANCED AND OPERATED BY PRIVATE (non governmental) INVESTMENT. This Investment could approach 1 trillion dollars over 10 to 15 years.

My plans for Africa my be grandiose to some… but a real vision was needed to solidify the continent for economic, and political and peace issues and the overall heath and welfare of the people of Africa… this is my mission… to transform Africa into a place where aid is not needed as much as it is now, and to improve the human sprit of all Africans.

Craig Eisele

March 31, 2008

Caterpillar Video on the Benefits of Road Construction in Africa

This may be a PR piece by Caterpillar for their benefit… nonetheless it is also a good PR piece for those who espouse the Highway building as necessary infrastructure for Africa. Madagascar may be an island but it is the same story on the Continent of Africa.

Click here: 

Caterpillar Madagascar Video

or cut and paste:

http://www.cat.com/cda/layout?m=8703&x=7&f=177263#/madagascar/

March 30, 2008

Outragous Costs of Domestic transport in Africa Shows Needs that Can Be Addressed by Private Enterprise.

The two arms of Coega, South Africa’s newest port, extend into the Indian Ocean in graceful arcs. These breakwaters — one is 2.6 km long, the other 1.3 km — are built from thousands of dolosse, huge, oddly-shaped, 30-ton concrete blocks that interlock. They are designed to protect the vessels that, when the port is fully operational in 2007, will use this facility to ship manganese, iron ore and other South African products to China, India and the rest of the world. The government-funded Coega Development Corporation (CDC), which is building an industrial zone on 11,000 hectares of farmland next to the port, likes to think of the massive complex on South Africa’s southeast coast, 20 km from Port Elizabeth, as a symbol of industrial Africa flexing its muscles. “If you want to change lives and the history of this continent, you need to develop infrastructure,” says Vuyelwa Qinga-Vika, spokeswoman for the cdc. “We’re not going to advance if we don’t even have the roads to bring medicine to the rural areas. We’ve got to start building.”

The call to construction is ringing out across Africa. Infrastructure is the new buzzword, pushed by leaders from South Africa’s Thabo Mbeki to Senegal’s Abdulaye Wade. It’s also a key topic at this week’s World Economic Forum (WEF) meeting in Cape Town, where political and business leaders from Africa will meet with heads of some of the world’s biggest companies to discuss, among other things, how Africa’s priority infrastructure projects can boost growth. According to a Gallup International survey commissioned by the WEF, Africans “focus more heavily on economic issues than do citizens in other parts of the world.” One in three Africans fear a failure of the economy compared to just one in five globally.

Despite a commodity boom that pushed growth to 5% in Africa last year, the continent’s leaders want better infrastructure to win more business. The New Partnership for Africa’s Development (NEPAD), an African initiative that aims to lure $64 billion in annual investment by tackling bad governance, ending conflicts and making the continent more business-friendly, has put improved infrastructure near the top of its to-do list. “There can be no meaningful development without trade,” reads NEPAD‘s infrastructure action plan. “And there can be no trade without adequate and reliable infrastructure.”

The need is as obvious as it is urgent. Africa’s roads and railway lines, ports and power grids are neither adequate nor reliable. Outside of southern Africa and Mauritius, much of the continent’s infrastructure is crumbling or nonexistent. Consider the Democratic Republic of Congo. You could fit France, Germany, Italy, Norway, Spain and Britain inside it, and the country is packed with timber and minerals, yet it has only a few thousand kilometers of paved road and 10,000 fixed telephone lines, and produces about the same amount of power as Albania. In other war-torn countries, such as Somalia and Sierra Leone, public buildings have been destroyed by years of fighting. Corruption and mismanagement have left public utilities in places such as Cameroon and Nigeria run down and inefficient.

The lack of infrastructure deters many companies from investing — and drives up costs for those that do. The World Bank estimates that to ship a container from Baltimore in the U.S. to Tanzania costs about $1,000, but to transport that same container from Tanzania to neighboring Burundi costs $10,000. “In many countries, companies have to generate their own power, dig for water, pay heavy distribution and telephone charges,” says David Hampshire, chairman of Diageo Africa, one of the continent’s biggest marketers of beer and spirits. “All these costs add up, and they end up being paid for by the consumer.”

To attract more investment, Africa has drawn up plans to spend billions over the next few decades. Zambia and Burkina Faso, both landlocked, want to build new rail lines through neighboring states to improve their connections to the sea. In East Africa, the Kenyan government and the rebel movement in southern Sudan plan to build a new railway track — at an estimated cost of more than $4 billion — from Sudan more than 1,000 km south to Rongai, Kenya, about 170 km northwest of Nairobi, where it will connect with the existing line to the Indian Ocean port of Mombasa. That notoriously inefficient harbor, along with some half a dozen others around Africa’s coast, is set to undergo a massive expansion and modernization program over the next few years.

The next decade may also finally see the completion of the Trans-Saharan Highway from Algeria to Lagos, Nigeria. Equally bold is the West African Gas Pipeline, which will tap natural gas from the Nigerian oil fields in the country’s southeast and then run almost 700 km along the coast with links to power plants in Lagos, Benin, Togo and Ghana. The most ambitious plan is for a massive dam on the lower Congo River which would eventually produce more than twice the power generated by China’s controversial Three Gorges scheme — enough to sell electricity across the continent as well as export it to Asia and Europe. But that project is at least 20 years away.

Surprisingly, funds for new projects aren’t lacking. Africa’s richest countries are eager to build. South Africa’s government, for instance, is funding the new Coega port and industrial zone. “Private business is not too keen on putting money into infrastructure, so the government has said it will take the lead,” says Lionel Billings, manager for Coega’s enterprise development and investor interaction. Rich donor nations in the West often help finance schemes in poorer countries, as does the World Bank. A growing number of private and foreign government-backed infrastructure funds based in Europe and the U.S., such as AIG African Infrastructure Fund and New Africa Infrastructure Fund, are also supplying capital.

The problem is confidence. Financiers, whether private or public, need projects that they can rely on. “We’ve got liquidity we’re embarrassed about,” says Keith Palmer, chairman of the London-based Emerging Africa Infrastructure Fund and vice chair of the U.K. investment bank NM Rothschild & Sons Ltd. “But there’s a lack of well-structured, creditworthy opportunities.” Business leaders cite numerous hurdles to investment: corruption, political instability and African governments’ lack of capacity to run huge projects and reluctance to hand over control of projects to the private sector. Richard Laing, chief executive of the Commonwealth Development Corporation, Britain’s agency for investment in the developing world, says the problem is dealing with African governments which have “an unwillingness to let go and a lot of distrust.”

There’s also a catch-22: Africa needs investment and improved infrastructure to develop, but finds it hard to attract the capital such projects need without more development. Thormählen Schweisstechnik, a German company that last year won the right to construct and operate for 25 years the planned railway line from Southern Sudan to the Kenyan coast, is already running into problems with the Kenyan government. Klaus Thormählen, head of the company, says, somewhat euphemistically, “the decision-making process [does not] maintain its dynamics during the times of our absence.” A spokesman in the Kenyan President’s office says that Kenya backs the scheme and is working with the German company to make sure the line is built.

Back at Coega port, a huge crane lifts another concrete block into position. The dock area, which was constructed behind a dam wall, has now been flooded, and is awaiting its first ship. “One of the things that will make it meaningful for South Africans is to see the first businesses set up here,” says Qinga-Vika. “It may just be concrete and steel and new roads, but this is a symbol of hope that we’re doing something to turn this city and continent around.”

Some Photos of the existing Trans-African Highway

For a good look at the condition of some of Africa’s “highways” please see the web site listed below.

“Trans-African Highway Shots” 

or cut and past the following:

http://www.virb.com/design4/photos/1103703

Road reflects why $568 billion in aid to Africa has largely failed


    

 

Wednesday, December 19, 2007

Road reflects why $568 billion in aid to Africa has largely failed

By CHRIS TOMLINSON Associated Press Writer
NAIROBI, Kenya (AP)

To judge how far aid has helped Africa along the road to prosperity, just look down at the pavement _ or the lack of it.
The most important highway in East Africa starts at the Indian Ocean port of Mombasa. Tens of thousands of trucks every year carry food, fuel and other goods to 100 million people in east and central Africa up a bone-jarring two-lane road.
Despite millions of aid dollars spent on roads, the wear and tear is so bad that journeys take weeks. And the cost makes it cheaper to have a container of corn shipped from Iowa than to truck it 500 miles (800 kilometers) to western Kenya.
In the 50 years since the first African countries won independence, the world has spent US$568 billion (euro394 billion) on Africa. Yet Africans are poorer now than a quarter century ago, and much of the money has ended up on the road to nowhere. This dismal record is sparking a vigorous debate on how best to help the world’s poorest continent, and to what degree aid is the answer.
A growing chorus of Africans is saying what they need is not handouts, but investment so they can rebuild on their own.
“Africans….are tired. They are tired of being the subject of everybody’s charity and care. And what is happening in many African countries now is the realization that nobody can do it but us,” said Ngozi Okonjo-Iweala, a World Bank managing director and former finance minister of Nigeria, at a talk on a changing Africa. “We can invite partners who support us, but we have to start.”

___

Roads are the lifeblood of an economy, the delivery system for agriculture, mining, tourism and other mainstays of African industry. But roads in Africa are few and bad. When foreign companies calculate the price of doing business on the continent, they look at figures like the cost of transportation and decide to go somewhere else.
“No one would ever have 100 million people in the rich world along a broken-down, two-lane, undivided road as we do here,” said leading economist Jeffrey Sachs about Nairobi. “If the donors were thinking about what would really provide development, it’s a proper, divided highway on which truck traffic could go.”
Truth is, they did think of it _ and almost built it _ 40 years ago. But today, the east-west Trans-African Highway exists only on maps. On the ground, it turns into a muddy footpath in the jungles of eastern Congo.
The story of the highway shows why aid to Africa has largely failed in the past, and what can be learned for the future.
Back in 1969, the Japanese government proposed extending the Mombasa Highway to Lagos, Nigeria on the Atlantic Ocean. The four-lane, 4,400-mile (7,080-kilometer) paved highway would be slightly longer than Interstate 90 running from Boston to Seattle across the United States. It was to bring modern trade to six African countries.
By 1971, the deal had the support of the six countries, nine other rich countries and six international aid agencies. They hoped to have at least two lanes of all-weather road open by 1978.
It did not take long for problems to emerge. Dictator Idi Amin took control of Uganda and threatened neighboring Kenya, which then closed the highway.
The fight reflected a constant plague for foreign aid to Africa _ corrupt dictators, and donors who gave them money to protect political and economic interests. Nowhere was this exchange clearer than in Zaire, now known as Congo.
Zaire needed to build roads from scratch. But the Central African country was ruled by Mobutu Sese Seko, one of the most brutal dictators in African history.
Mobutu took power during the Cold War, at a time when the United States and the Soviet Union were scrambling for influence in Africa. In the mid-1970s, he was a funnel for arms flowing to anti-communist rebels.
And so billions of dollars poured into Zaire to keep him happy, and to maintain the flow of Zairean gold, diamonds and copper to the West. Western nations largely looked the other way as the aid money disappeared into his offshore bank accounts and into the pockets of dozens of corrupt leaders.
Mobutu stopped plans for the highway in 1974, after stealing the money Belgium gave him for initial surveys. In a well-known African joke that reflects the thinking of the time, a young African dictator calls Mobutu for advice after coming under rebel attack.
“Did they come by sea?” Mobutu asks.
“No,” the younger ruler would reply.
“Did they come by air?” Mobutu asks.
“No, they came by road,” the protege answers.
“Tsk tsk, my son, I always told you,” Mobutu says. “Never build roads.”

___

Despite Mobutu in Zaire, the highway was in good condition in Kenya. In the 1970s, the East African country’s economy was booming, with trucks filled with valuable coffee and tea running downhill from mile-high (1.6-kilometer-high) Nairobi and across breathtaking African savanna to the port of Mombasa.
But roads do not last forever. The average African highway is designed to last 15-20 years, if properly maintained, says Andrew Gitonga, the Kenya roads project officer for the European Union. Since 1983, the European Union has spent US$200 million (euro139 million) to repair Kenya’s section of the highway and has about US$120 million (euro83.2 million) more of road projects planned this year.
Gitonga says the road needs to be completely rebuilt.
“There has been no standard maintenance program for 15 years, so the roads are falling into disrepair until they collapse,” he says. “Some government contracts in the past were given in an untransparent manner to unqualified contractors without clear standards.”
The transition between good road work and bad is painfully obvious when you hit a pothole at 50 mph. A close examination of the hole will show that whoever built it skimped on the thickness of the rock bed and the asphalt surfacing, pocketing a little extra profit.
Almost every day road workers can be seen patching the holes. One man sprays in some tar, a second shovels in a little asphalt and a third goes over it twice with a compactor. Within five minutes the lane is open, with hundreds of cars every hour driving over a repair that will probably last less than six months, or until the seasonal rains wash it away.
The same neglect for maintenance has led to the slow deterioration of thousands of donor-funded projects over the years.
Just off the Mombasa highway in Nairobi, the International Committee of the Red Cross maintains its distribution hub for eastern Africa. Trucks loaded with food and supplies set off to deliver aid to some of the world’s most desperate people.
The biggest obstacle: The roads.
“The roads are in a desolate state and they are not getting any better,” says Bent Korsgaard, logistics director for the Kenya office.
A University of Minnesota study determined that big trucks cost about 43.4 cents a mile (1.6 kilometers) to operate on normal roads. In Africa, the cost for Red Cross trucks is US$2.88 (euro2) a mile (1.6 kilometers).
A truck that follows the Trans-African Highway for the 1,500 mile (2,400-kilometer), 21-day roundtrip to Butembo, Congo requires five days in the workshop when it gets back. It’s cheaper to hire a Russian cargo plane than to drive a truck to some cities within 620 miles (1,000 kilometers).
That doesn’t even count the bribes truckers have to pay on African roads. A recent survey in West Africa found they range from about US$3.33 (euro2.3) per 60 miles (97 kilometers) in Togo to US$25 (euro17) in Mali.

___

Roads are hardly the only aid fiascos. Kenya alone is littered with dozens of half-baked, half-built projects funded by wealthy countries, monuments to good intentions gone awry.
Often donors did not understand Africa or talk to Africans. The Norwegian government built a fish processing plant on Lake Turkana in the 1970s to provide jobs for nomadic cattle herders _ soon doomed in part because the local community had no fishing culture.
In a self-assessment in 1987, the World Bank found 106 out of 189 African development projects audited _ almost 60 percent _ had serious shortcomings or were complete failures. African agriculture projects failed 75 percent of the time.
The World Bank did better when it worked more closely with communities and better monitored projects. But a recent report on aid from the World Bank’s private arm, the International Finance Corporation, found only half of its Africa projects succeed.
Aid is also hampered because it is often determined not just by what poor countries need but by what rich countries want to give to boost their own economies.
Much so-called foreign aid never leaves the country that promised it, because donor governments spend it to buy domestically-produced products or hire its own citizens as consultants. The World Bank estimates that throughout the 1980s, more than half of all aid was tied to what donor countries wanted to export, often at higher prices than could be found on the market. This practice reduced the value of aid by anywhere from 11 to 30 percent.
Under the Buy American Act, the U.S. Agency for International Development must spend aid money to buy products and services from U.S. suppliers whenever possible, and then deliver them aboard expensive U.S.-flagged ships or planes.
“Foreign assistance is far from charity,” J. Brian Atwood, the USAID director under former President Bill Clinton, told Congress in 1995. “It is an investment in American jobs, American business.”
Other rich nations do the same. Japan, one of the largest donors to Africa, provides a lot of aid in the form of four-wheel-drive vehicles _ despite the roads.
Sachs, the Columbia University professor, argues past aid failed because not enough was invested at every level, in every sector. In 2004, Sachs and the United Nations started the Millennium Project experiment to supply 12 African villages with all they need, all at once, and see if they can be self-sufficient in five years.
“The speed of results is astounding and the point is that if the resources are there, the rate of improvement is wonderful,” Sachs says. “I believe that we’re at the cusp of that now.”
Sachs’ nemesis, economist William Easterly of New York University, retorts that Sachs’ results are on a very small scale. He says only a free market can lift a nation out of poverty, and wants to see far more limited aid for specific programs with good track records, such as health care.
Easterly argues that aid bureaucracies are now rewarded for giving money that never reaches those who need it.
“It’s just not possible for outsiders with their experts to create economic development and prosperity in another country,” he says. “We should say: `There are a lot of problems and as rich outsiders we can’t fix everything, but where can we do the most good for the most people?”’
The stakes are high. The outcome will decide if _ and how _ the world spends another US$568 (euro394) billion on Africa.

___

The dream of a world-class road network for Africa is still alive, at least on paper. The African Union has a plan to build it, but it would take tens of billions of dollars that could come only from rich countries.
The east-west Trans-African Highway is still missing about 1,826 miles (2,939 kilometers). But West African states are building a regional network that will run from landlocked Chad to the Western port of Dakar in Senegal, and from Mauritania to Nigeria. Kenya is also building a road to neighboring Ethiopia.
Aid to Africa is going up again to about US$37 (euro26) per capita, from a low of US$24 in 1999. But this time the world has learned something. Aid to countries with more democratic systems has tripled at the expense of those whose leaders have unchecked power, according to the World Bank.
These days, when a new road is under construction in Kenya, white cars with European Union flags on the doors visit every day to make sure every inch of the highway is built to specification.
And a maintenance contract comes with it.

 
To judge how far aid has helped Africa along the road to prosperity, just look down at the pavement or the lack of it.

The most important highway in East Africa starts at the Indian Ocean port of Mombasa. Tens of thousands of trucks every year carry food, fuel and other goods to 100 million people in east and central Africa up a bone-jarring two-lane road.

Despite millions of aid dollars spent on roads, the wear and tear is so bad that journeys take weeks. And the cost makes it cheaper to have a container of corn shipped from Iowa than to truck it 500 miles to western Kenya.
————————————————–
“Africans do not want to be viewed as a charity case,” adds Okonjo-Iweala, a World Bank managing director. “Ninety-nine point nine percent of Africans are people who are getting on with their own lives. All they are asking for is….a set of tools.”

Roads are the lifeblood of an economy, the delivery system for agriculture, mining, tourism and other mainstays of African industry. But roads in Africa are few and bad. When foreign companies calculate the price of doing business on the continent, they look at figures like the cost of transportation and decide to go somewhere else.

“No one would ever have 100 million people in the rich world along a broken-down, two-lane, undivided road as we do here,” said leading economist Jeffrey Sachs about Nairobi. “If the donors were thinking about what would really provide development, it’s a proper, divided highway on which truck traffic could go.”

Truth is, they did think of it and almost built it 40 years ago. But today, the east-west Trans-African Highway exists only on maps. On the ground, it turns into a muddy footpath in the jungles of eastern Congo.

In conversations with some colleagues and a few so-called friends, I’ve often been the subject of strong criticism for my view that aid money would be better spent on infrastructure and institutions that facilitated the free flow of business and international trade as opposed to food shipments. It’s hard for non-supply chain/logistics people to understand that if you don’t have the necessary infrastructure in place it doesn’t matter how much you throw at the system, it simply isn’t going to move well and all your money is going to be eaten up in logistics costs. It’s no different than looking at international trade – countries with poor infrastructure make trade difficult and expensive. It’s no different with aid logistics. And I think this article is accurate in stating that what most Africans want is not a handout, but simply the means to stand on their own two feet and support themselves. This guy gets it. Although to get Africa’s infrastructure off the ground will take more than micro-credits the concept is still there.

 

http://www.taipeitimes.com/

Published on Taipei Times
http://www.taipeitimes.com/News/editorials/archives/2007/12/22/2003393678

Trans-African Highway mirrors failure of Africa aid

Africans are poorer now than a quarter century ago, despite the US$568 billion in aid poured into the continent in the past 50 years. Many say what is needed is investment, not more aid By Chris Tomlinson
AP, NAIROBI
Saturday, Dec 22, 2007, Page 9

http://www.taipeitimes.com/News/editorials/photo/2007/12/22/2007112964

ILLUSTRATION: MOUNTAIN PEOPLE

To judge how far aid has helped Africa along the road to prosperity, just look down at the pavement — or the lack of it.

The most important highway in East Africa starts at the Indian Ocean port of Mombasa. Tens of thousands of trucks every year carry food, fuel and other goods to 100 million people in east and central Africa up a bone-jarring two-lane road.

Despite millions of aid dollars spent on roads, the wear and tear is so bad that journeys take weeks. And the cost makes it cheaper to have a container of corn shipped from Iowa than to truck it 800km to western Kenya.

In the 50 years since the first African countries won independence, the world has spent US$568 billion on Africa. Yet Africans are poorer now than a quarter century ago, and much of the money has ended up on the road to nowhere. This dismal record is sparking a vigorous debate on how best to help the world’s poorest continent, and to what degree aid is the answer.

A growing chorus of Africans is saying what they need is not handouts, but investment so they can rebuild on their own.

“Africans … are tired. They are tired of being the subject of everybody’s charity and care. And what is happening in many African countries now is the realization that nobody can do it but us,” said Ngozi Okonjo-Iweala, a World Bank managing director and former finance minister of Nigeria, at a talk on a changing Africa. “We can invite partners who support us, but we have to start.”

LIFEBLOOD

Roads are the lifeblood of an economy, the delivery system for agriculture, mining, tourism and other mainstays of African industry. But roads in Africa are few and bad. When foreign companies calculate the price of doing business on the continent, they look at figures like the cost of transportation and decide to go somewhere else.

“No one would ever have 100 million people in the rich world along a broken-down, two-lane, undivided road as we do here,” said leading economist Jeffrey Sachs about Nairobi. “If the donors were thinking about what would really provide development, it’s a proper, divided highway on which truck traffic could go.”

Truth is, they did think of it — and almost built it — 40 years ago. But today, the east-west Trans-African Highway exists only on maps. On the ground, it turns into a muddy footpath in the jungles of eastern Congo.

The story of the highway shows why aid to Africa has largely failed in the past, and what can be learned for the future.

Back in 1969, the Japanese government proposed extending the Mombasa Highway to Lagos, Nigeria on the Atlantic Ocean. The four-lane, 7,080km paved highway would be slightly longer than Interstate 90 running from Boston to Seattle across the US. It was to bring modern trade to six African countries.

By 1971, the deal had the support of the six countries, nine other rich countries and six international aid agencies. They hoped to have at least two lanes of all-weather road open by 1978.

It did not take long for problems to emerge. Dictator Idi Amin took control of Uganda and threatened neighboring Kenya, which then closed the highway.

MOBUTU

The fight reflected a constant plague for foreign aid to Africa — corrupt dictators, and donors who gave them money to protect political and economic interests. Nowhere was this exchange clearer than in Zaire, now known as Congo.

Zaire needed to build roads from scratch. But the Central African country was ruled by Mobutu Sese Seko, one of the most brutal dictators in African history.

Mobutu took power during the Cold War, at a time when the US and the Soviet Union were scrambling for influence in Africa. In the mid-1970s, he was a funnel for arms flowing to anti-communist rebels.

And so billions of dollars poured into Zaire to keep him happy, and to maintain the flow of Zairean gold, diamonds and copper to the West. Western nations largely looked the other way as the aid money disappeared into his offshore bank accounts and into the pockets of dozens of corrupt leaders.

Mobutu stopped plans for the highway in 1974, after stealing the money Belgium gave him for initial surveys. In a well-known African joke that reflects the thinking of the time, a young African dictator calls Mobutu for advice after coming under rebel attack.

“Did they come by sea?” Mobutu asks.

“No,” the younger ruler would reply.

“Did they come by air?” Mobutu asks.

“No, they came by road,” the protege answers.

“Tsk tsk, my son, I always told you,” Mobutu says. “Never build roads.”

REPAIRS, REBUILDING

Despite Mobutu in Zaire, the highway was in good condition in Kenya. In the 1970s, the East African country’s economy was booming, with trucks filled with valuable coffee and tea running downhill from 1.6km-high Nairobi and across breathtaking African savanna to the port of Mombasa.

But roads do not last forever.

The average African highway is designed to last 15 to 20 years, if properly maintained, says Andrew Gitonga, the Kenya roads project officer for the EU. Since 1983, the EU has spent US$200 million to repair Kenya’s section of the highway and has about US$120 million more of road projects planned this year.

Gitonga said the road needs to be completely rebuilt.

“There has been no standard maintenance program for 15 years, so the roads are falling into disrepair until they collapse,” he said. “Some government contracts in the past were given in an untransparent manner to unqualified contractors without clear standards.”

The transition between good road work and bad is painfully obvious when you hit a pothole at 80.5kph. A close examination of the hole will show that whoever built it skimped on the thickness of the rock bed and the asphalt surfacing, pocketing a little extra profit.

Almost every day road workers can be seen patching the holes. One man sprays in some tar, a second shovels in a little asphalt and a third goes over it twice with a compactor. Within five minutes the lane is open, with hundreds of cars every hour driving over a repair that will probably last less than six months, or until the seasonal rains wash it away.

MISGUIDED DONORS

The same neglect for maintenance has led to the slow deterioration of thousands of donor-funded projects over the years.

Just off the Mombasa highway in Nairobi, the International Committee of the Red Cross maintains its distribution hub for eastern Africa. Trucks loaded with food and supplies set off to deliver aid to some of the world’s most desperate people.

The biggest obstacle: The roads.

“The roads are in a desolate state and they are not getting any better,” says Bent Korsgaard, logistics director for the Kenya office.

A University of Minnesota study determined that big trucks cost about US$0.434 per 1.6km to operate on normal roads. In Africa, the cost for Red Cross trucks is US$2.88 per 1.6km.

A truck that follows the Trans-African Highway for the 2,400km, 21-day roundtrip to Butembo, Congo requires five days in the workshop when it gets back. It’s cheaper to hire a Russian cargo plane than to drive a truck to some cities within 1,000km.

That doesn’t even count the bribes truckers have to pay on African roads. A recent survey in West Africa found they range from about US$3.33 per 97km in Togo to US$25 in Mali.

Roads are hardly the only aid fiascos. Kenya alone is littered with dozens of half-baked, half-built projects funded by wealthy countries, monuments to good intentions gone awry.

GOOD INTENTIONS

Often donors did not understand Africa or talk to Africans. The Norwegian government built a fish processing plant on Lake Turkana in the 1970s to provide jobs for nomadic cattle herders — soon doomed in part because the local community had no fishing culture.

In a self-assessment in 1987, the World Bank found 106 out of 189 African development projects audited — almost 60 percent — had serious shortcomings or were complete failures. African agriculture projects failed 75 percent of the time.

The World Bank did better when it worked more closely with communities and better monitored projects. But a recent report on aid from the World Bank’s private arm, the International Finance Corp, found only half of its Africa projects succeed.

Aid is also hampered because it is often determined not just by what poor countries need but by what rich countries want to give to boost their own economies.

Much so-called foreign aid never leaves the country that promised it, because donor governments spend it to buy domestically-produced products or hire its own citizens as consultants. The World Bank estimates that throughout the 1980s, more than half of all aid was tied to what donor countries wanted to export, often at higher prices than could be found on the market. This practice reduced the value of aid by anywhere from 11 to 30 percent.

Under the Buy American Act, the US Agency for International Development must spend aid money to buy products and services from US suppliers whenever possible, and then deliver them aboard expensive US-flagged ships or planes.

“Foreign assistance is far from charity,” J. Brian Atwood, the USAID director under former President Bill Clinton, told Congress in 1995. “It is an investment in American jobs, American business.”

Other rich nations do the same. Japan, one of the largest donors to Africa, provides a lot of aid in the form of four-wheel-drive vehicles — despite the roads.

MILLENNIUM PROJECT

Sachs argues past aid failed because not enough was invested at every level, in every sector. In 2004, Sachs and the UN started the Millennium Project experiment to supply 12 African villages with all they need, all at once, and see if they can be self-sufficient in five years.

“The speed of results is astounding and the point is that if the resources are there, the rate of improvement is wonderful,” Sachs says. “I believe that we’re at the cusp of that now.”

Sachs’ nemesis, economist William Easterly of New York University, retorts that Sachs’ results are on a very small scale. He says only a free market can lift a nation out of poverty, and wants to see far more limited aid for specific programs with good track records, such as health care.

Easterly argues that aid bureaucracies are now rewarded for giving money that never reaches those who need it.

“It’s just not possible for outsiders with their experts to create economic development and prosperity in another country,” he said. “We should say: `There are a lot of problems and as rich outsiders we can’t fix everything, but where can we do the most good for the most people?”‘

The stakes are high. The outcome will decide if — and how — the world spends another US$568 billion on Africa.

DREAM STILL ALIVE

The dream of a world-class road network for Africa is still alive — at least on paper. The African Union has a plan to build it, but it would take tens of billions of dollars that could come only from rich countries.

The east-west Trans-African Highway is still missing about 2,939km. But West African states are building a regional network that will run from landlocked Chad to the Western port of Dakar in Senegal, and from Mauritania to Nigeria. Kenya is also building a road to neighboring Ethiopia.

Aid to Africa is going up again to about US$37per capita, from a low of US$24 in 1999. But this time the world has learned something. Aid to countries with more democratic systems has tripled at the expense of those whose leaders have unchecked power, according to the World Bank.

These days, when a new road is under construction in Kenya, white cars with EU flags on the doors visit every day to make sure every inch of the highway is built to specification.

And a maintenance contract comes with it.

http://en.wikipedia.org/wiki/Trans-African_Highway_network

Capetown to Nairobi
Nairobi to Lagos
Lagos to Dakar
Dakar to Kano
Kano to Algiers
Algiers to the 21st century.

 

Would you try to off-road?

http://en.wikipedia.org/wiki/Image:Map_of_Trans-African_Highways.PNG


http://www.expertafrica.com/



 


Andrew Maykuth, The Inquirer’s Johannesburg bureau chief, and photographer Michael Wirtz journeyed through East Africa, accompanying a food aid truck into rebel-held territory in Sudan. Their odyssey through Kenya and Uganda into Sudan is chronicled here in articles, photos, and multimedia presentations.


http://www213.pair.com/maykuth/odyssey/pages/start.html

Andrew Maykuth, The Inquirer’s Johannesburg bureau chief, and photographer Michael Wirtz journeyed through East Africa, accompanying a food aid truck into rebel-held territory in Sudan. Their odyssey through Kenya and Uganda into Sudan is chronicled here in articles, photos, and multimedia presentations.

Trans African Highway 1 on Flicker Photo Sharing: http://www.flickr.com/photos/11707386@N06/2201934782/

 



Start the year off right. Easy ways to stay in shape in the new year.

TOO Many Committies May DOOM a “Trans-African Highway” System

The below are a reason why a “TRANS-AFRICAN HIGHWAY”  is so difficult to realize. How many committees are necessary?? Would it not be better to handle ALL of these from the AU (African Union)???

  • Lagos-Mombasa Trans-African Highway Authority
  • Coordinating Committee of the Dakar-Ndjamena Highway
  • Algiers-Lagos Trans-Saharan Coordinating Committee
  • Tangiers-Lagos Trans-African Highway Coordinating Committee
  • Ndjamena-Masawa-Djibouti Trans-Sahelian Highway Coordinating Committee
  • Tripoli-Windhoek Highway Coordinating Committee
  • Beira-Lobito Trans Southern African Highway Coordinating Committee
  • Tangiers-Cairo Trans-African Highway Coordinating Committee
  • More Proof of the Need for a NEW Paradim for African “Aid” in Infrastructure Development


    Published on Taipei Times
    http://www.taipeitimes.com/News/editorials/archives/2007/12/22/2003393678

    Trans-African Highway mirrors failure of Africa aid

    Africans are poorer now than a quarter century ago, despite the US$568 billion in aid poured into the continent in the past 50 years. Many say what is needed is investment, not more aid

    By Chris Tomlinson
    AP, NAIROBI
    Saturday, Dec 22, 2007, Page 9

    To judge how far aid has helped Africa along the road to prosperity, just look down at the pavement — or the lack of it.

    The most important highway in East Africa starts at the Indian Ocean port of Mombasa. Tens of thousands of trucks every year carry food, fuel and other goods to 100 million people in east and central Africa up a bone-jarring two-lane road.

    Despite millions of aid dollars spent on roads, the wear and tear is so bad that journeys take weeks. And the cost makes it cheaper to have a container of corn shipped from Iowa than to truck it 800km to western Kenya.

    In the 50 years since the first African countries won independence, the world has spent US$568 billion on Africa. Yet Africans are poorer now than a quarter century ago, and much of the money has ended up on the road to nowhere. This dismal record is sparking a vigorous debate on how best to help the world’s poorest continent, and to what degree aid is the answer.

    A growing chorus of Africans is saying what they need is not handouts, but investment so they can rebuild on their own.

    “Africans … are tired. They are tired of being the subject of everybody’s charity and care. And what is happening in many African countries now is the realization that nobody can do it but us,” said Ngozi Okonjo-Iweala, a World Bank managing director and former finance minister of Nigeria, at a talk on a changing Africa. “We can invite partners who support us, but we have to start.”

    LIFEBLOOD

    Roads are the lifeblood of an economy, the delivery system for agriculture, mining, tourism and other mainstays of African industry. But roads in Africa are few and bad. When foreign companies calculate the price of doing business on the continent, they look at figures like the cost of transportation and decide to go somewhere else.

    “No one would ever have 100 million people in the rich world along a broken-down, two-lane, undivided road as we do here,” said leading economist Jeffrey Sachs about Nairobi. “If the donors were thinking about what would really provide development, it’s a proper, divided highway on which truck traffic could go.”

    Truth is, they did think of it — and almost built it — 40 years ago. But today, the east-west Trans-African Highway exists only on maps. On the ground, it turns into a muddy footpath in the jungles of eastern Congo.

    The story of the highway shows why aid to Africa has largely failed in the past, and what can be learned for the future.

    Back in 1969, the Japanese government proposed extending the Mombasa Highway to Lagos, Nigeria on the Atlantic Ocean. The four-lane, 7,080km paved highway would be slightly longer than Interstate 90 running from Boston to Seattle across the US. It was to bring modern trade to six African countries.

    By 1971, the deal had the support of the six countries, nine other rich countries and six international aid agencies. They hoped to have at least two lanes of all-weather road open by 1978.

    It did not take long for problems to emerge. Dictator Idi Amin took control of Uganda and threatened neighboring Kenya, which then closed the highway.

    MOBUTU

    The fight reflected a constant plague for foreign aid to Africa — corrupt dictators, and donors who gave them money to protect political and economic interests. Nowhere was this exchange clearer than in Zaire, now known as Congo.

    Zaire needed to build roads from scratch. But the Central African country was ruled by Mobutu Sese Seko, one of the most brutal dictators in African history.

    Mobutu took power during the Cold War, at a time when the US and the Soviet Union were scrambling for influence in Africa. In the mid-1970s, he was a funnel for arms flowing to anti-communist rebels.

    And so billions of dollars poured into Zaire to keep him happy, and to maintain the flow of Zairean gold, diamonds and copper to the West. Western nations largely looked the other way as the aid money disappeared into his offshore bank accounts and into the pockets of dozens of corrupt leaders.

    Mobutu stopped plans for the highway in 1974, after stealing the money Belgium gave him for initial surveys. In a well-known African joke that reflects the thinking of the time, a young African dictator calls Mobutu for advice after coming under rebel attack.

    “Did they come by sea?” Mobutu asks.

    “No,” the younger ruler would reply.

    “Did they come by air?” Mobutu asks.

    “No, they came by road,” the protege answers.

    “Tsk tsk, my son, I always told you,” Mobutu says. “Never build roads.”

    REPAIRS, REBUILDING

    Despite Mobutu in Zaire, the highway was in good condition in Kenya. In the 1970s, the East African country’s economy was booming, with trucks filled with valuable coffee and tea running downhill from 1.6km-high Nairobi and across breathtaking African savanna to the port of Mombasa.

    But roads do not last forever.

    The average African highway is designed to last 15 to 20 years, if properly maintained, says Andrew Gitonga, the Kenya roads project officer for the EU. Since 1983, the EU has spent US$200 million to repair Kenya’s section of the highway and has about US$120 million more of road projects planned this year.

    Gitonga said the road needs to be completely rebuilt.

    “There has been no standard maintenance program for 15 years, so the roads are falling into disrepair until they collapse,” he said. “Some government contracts in the past were given in an untransparent manner to unqualified contractors without clear standards.”

    The transition between good road work and bad is painfully obvious when you hit a pothole at 80.5kph. A close examination of the hole will show that whoever built it skimped on the thickness of the rock bed and the asphalt surfacing, pocketing a little extra profit.

    Almost every day road workers can be seen patching the holes. One man sprays in some tar, a second shovels in a little asphalt and a third goes over it twice with a compactor. Within five minutes the lane is open, with hundreds of cars every hour driving over a repair that will probably last less than six months, or until the seasonal rains wash it away.

    MISGUIDED DONORS

    The same neglect for maintenance has led to the slow deterioration of thousands of donor-funded projects over the years.

    Just off the Mombasa highway in Nairobi, the International Committee of the Red Cross maintains its distribution hub for eastern Africa. Trucks loaded with food and supplies set off to deliver aid to some of the world’s most desperate people.

    The biggest obstacle: The roads.

    “The roads are in a desolate state and they are not getting any better,” says Bent Korsgaard, logistics director for the Kenya office.

    A University of Minnesota study determined that big trucks cost about US$0.434 per 1.6km to operate on normal roads. In Africa, the cost for Red Cross trucks is US$2.88 per 1.6km.

    A truck that follows the Trans-African Highway for the 2,400km, 21-day roundtrip to Butembo, Congo requires five days in the workshop when it gets back. It’s cheaper to hire a Russian cargo plane than to drive a truck to some cities within 1,000km.

    That doesn’t even count the bribes truckers have to pay on African roads. A recent survey in West Africa found they range from about US$3.33 per 97km in Togo to US$25 in Mali.

    Roads are hardly the only aid fiascos. Kenya alone is littered with dozens of half-baked, half-built projects funded by wealthy countries, monuments to good intentions gone awry.

    GOOD INTENTIONS

    Often donors did not understand Africa or talk to Africans. The Norwegian government built a fish processing plant on Lake Turkana in the 1970s to provide jobs for nomadic cattle herders — soon doomed in part because the local community had no fishing culture.

    In a self-assessment in 1987, the World Bank found 106 out of 189 African development projects audited — almost 60 percent — had serious shortcomings or were complete failures. African agriculture projects failed 75 percent of the time.

    The World Bank did better when it worked more closely with communities and better monitored projects. But a recent report on aid from the World Bank’s private arm, the International Finance Corp, found only half of its Africa projects succeed.

    Aid is also hampered because it is often determined not just by what poor countries need but by what rich countries want to give to boost their own economies.

    Much so-called foreign aid never leaves the country that promised it, because donor governments spend it to buy domestically-produced products or hire its own citizens as consultants. The World Bank estimates that throughout the 1980s, more than half of all aid was tied to what donor countries wanted to export, often at higher prices than could be found on the market. This practice reduced the value of aid by anywhere from 11 to 30 percent.

    Under the Buy American Act, the US Agency for International Development must spend aid money to buy products and services from US suppliers whenever possible, and then deliver them aboard expensive US-flagged ships or planes.

    “Foreign assistance is far from charity,” J. Brian Atwood, the USAID director under former President Bill Clinton, told Congress in 1995. “It is an investment in American jobs, American business.”

    Other rich nations do the same. Japan, one of the largest donors to Africa, provides a lot of aid in the form of four-wheel-drive vehicles — despite the roads.

    MILLENNIUM PROJECT

    Sachs argues past aid failed because not enough was invested at every level, in every sector. In 2004, Sachs and the UN started the Millennium Project experiment to supply 12 African villages with all they need, all at once, and see if they can be self-sufficient in five years.

    “The speed of results is astounding and the point is that if the resources are there, the rate of improvement is wonderful,” Sachs says. “I believe that we’re at the cusp of that now.”

    Sachs’ nemesis, economist William Easterly of New York University, retorts that Sachs’ results are on a very small scale. He says only a free market can lift a nation out of poverty, and wants to see far more limited aid for specific programs with good track records, such as health care.

    Easterly argues that aid bureaucracies are now rewarded for giving money that never reaches those who need it.

    “It’s just not possible for outsiders with their experts to create economic development and prosperity in another country,” he said. “We should say: `There are a lot of problems and as rich outsiders we can’t fix everything, but where can we do the most good for the most people?”‘

    The stakes are high. The outcome will decide if — and how — the world spends another US$568 billion on Africa.

    DREAM STILL ALIVE

    The dream of a world-class road network for Africa is still alive — at least on paper. The African Union has a plan to build it, but it would take tens of billions of dollars that could come only from rich countries.

    The east-west Trans-African Highway is still missing about 2,939km. But West African states are building a regional network that will run from landlocked Chad to the Western port of Dakar in Senegal, and from Mauritania to Nigeria. Kenya is also building a road to neighboring Ethiopia.

    Aid to Africa is going up again to about US$37per capita, from a low of US$24 in 1999. But this time the world has learned something. Aid to countries with more democratic systems has tripled at the expense of those whose leaders have unchecked power, according to the World Bank.

    These days, when a new road is under construction in Kenya, white cars with EU flags on the doors visit every day to make sure every inch of the highway is built to specification.

    And a maintenance contract comes with it.

    Another Example of the Need for a NEW Pardigm in Road Infrastructure Building in Africa

    The Article below is an example of how traditional methods of building Infrastructure, especially roads, is not working in Africa. It should be self-evident that a new Paradigm is necessary.  It has been the focus of Trans-African Development Strategies to build this Infrastructure and to bring jobs and prosperity to ALL Africans. It is our fervent hope that the Governments of African Countries can agree to this and work together to make this change for the sake of their people. 

    Where is the Lady in Boots?
    Vanguard (Lagos)
    COLUMN
    27 March 2008
    Posted to the web 27 March 2008

    By Ochereome Nnanna
    Lagos
    SHE came into the job, tall and stately. She also came in well dressed for the job. She is not the first lady that graced the plum chair of Minister of Transport (now Transporta-tion).

    But her dressing alone when she was appointed gave hope and expectation that she was all business. She toured major airports in the country as well as some of the worst roads.

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    When she arrived at the collapsed sections of the Sagamu-Benin expressway, she put on black boots and a yellow helmet.

    With cameras beamed on her, she broke down and shed profuse tears over the level of decay of the road and the concomitant human suffering that had been the order of the day for years but which the regime of ex-President Olusegun Obasanjo simply ignored.

    When she wiped tears from her eyes, she told newsmen: “We have a lot of work ahead and four years is not a lot of time. I hope everybody is ready to go with us”. Shortly after that at a National Council on Works meeting in Kano, she disclosed that the Obasanjo regime spent over N450 billion on roads in eight years but failed to give value for the money.

    Just before the Minister for Transportation, Diezani K. Allison Madueke, was sworn-into office, there had been a concentration of media reports on the deplorable condition of this particular highway, which is easily the most strategic stretch of the nation’s 34,340 kilometres of federal roads.

    LET me justify this claim. This road drains vehicular traffic from the nation’s economic capital and mega-cities of Lagos and Ibadan in the West and connects to the South East and South South zones, the oil and gas powerhouse of Nigeria.

    It is part of the yet-to-be-developed pan-African highway.

    With this road in a state of total disrepair, the grinding pace of the economy of this country is exacerbated, especially as road transport moves 90 percent of our goods, services and personnel.

    Media reports had it that commuters on this road spent up to 48 hours to cross a distance of less than 150 kilometres. Many tankers and trucks lost their goods, thus, impoverishing many struggling traders.

    And so, when Diezani Madueke made her well-publicised tour, many people expected immediate action. Indeed, Nigerians are “ready to go” with her, but, alas! she is nowhere to be found.

    We were told that work would start immediately after the rains stopped in 2007. When I decided to visit the East by road over the past two weeks, I was full of expectation that repair work on this road would have reached a stage of substantial accomplishment.

    I expected a buzz of activities, as construction juggernauts ply the length and breadth of the bad portion of the road from the western border of Ondo State to the western wing of the Benin bypass (which is already fast deteriorating less than six years it was put into use!).

    But what did I see. A mere nothing! No sign of construction activities, even though seven months of hardcore dry season have passed since the minister staged her Nollywood teary caper.

    Instead, I did see obvious signs of heavy construction work at the Owerri end of the Onitsha-Owerri dualisation project and Julius Berger was firmly on ground to the delight of many.

    These days, when we hear of the Minister of Transportation, it is either Diezani Madueke is in a power tussle with her colleague in charge of aviation, Felix Hyat, or Hyat, along with top chiefs of the aviation agencies, is misleading the nation with false information about the missing aircraft at Obudu and recanting later.

    Some people are saying that the current budget stalemate could be responsible for the freeze in reconstruction activities on this road. It is easy to come up with excuses for failure to live up to expectation.

    It is already the end of March. Before the budget is finally signed into law and the capital vote is released, it will be May. The rains would have set in. Then, we will be told once again to wait until the rains stop.

    When the rains stop in November, it will take, at least, another month before contractors mobilise to site. It will be the end of December and the money will be returned to the treasury as “unspent fund”! In Nigeria, any excuse will do so long as it justifies failure.

    LET me close with this parting shot. Yar’Adua’s female ministers do not seem to be raising the flag of women as much as the women in Obasanjo’s cabinet. Neither are the men in Yar’ Adua’s cabinet, come to think of it. Can youth think of any Yar’ Adua minister who stands out? We want to hear from you.

    Which one among them kicks up mettle as much as the Nasir el Rufais, the Ngozi Okonjo-Iwealas and the Oby Ezekwesilis? Almost one year later, Yar’Adua’s ministers do not seem to have taken Nigeria one step forward in their respective areas of operation.

    The President has quite a number of deadwoods to send home as he clocks one year this May.

    March 28, 2008

    Infrastructure Development Tops AfDB Projects in Africa

    I have read the article below and am in awe of the lack of strategic planning and the failure of appropriate methodology to bring to Africa this much needed Infrastructure. This lack of this basic “backbone” infrastructure is what hold Africa back more than any other issue that faces Africa today. Trying to develop Africa in the same way as North America or Europe is NOT feasible. There has to be a unique and special plan such as the one developed by Trans-African Development  Strategies and the sister Company Trans African Development Company to bring this “backbone” Infrastructure to fruition. The current approach will hold Africa back for at least 50 years. When I read articles like this I can honestly say I am furious at the lack of true understanding… but then I remember that organizations like AfDB are NOT inclined to think “outside the box” …. As those who know me will tell you I subscribe to the basic philosophy “If you cannot solve the problem you are facing…. then you are facing the wrong problem” If AfDB and others would redefine the problem as I have then the realistic and implementable solutions would be obvious!!! But I have tried to discuss this with AfDB and others… and to my dismay they are not interested in even considering anything but the “Status Quo” thus dooming Africa and it’s people to decades of unnecessary poverty and suffering. My offer to AfDB and others interested in truly and honestly solving these and other issues that face Africa remains open but I am NOT optimistic that closed minded individuals will ever consider other pragmatic approaches.
    Infrastructure development tops AfDB projects in Africa
     
     
    The announcement was made during a recent conference on African infrastructure held in Senegal, which brought together donors, government ministers, and representatives of regional bodies such as the African Union and its intergovernmental development initiative, NEPAD.
    An AfDB press release notes that the promised funds will come from the bank’s low-interest lending window, the African Development Fund (ADF). In December, the Bank secured commitments from donors to contribute a record $8.9 billion to replenish the ADF for the next three years.
    It has earlier been reported that the loans will finance regional infrastructure projects, including the construction of “a number of major road and rail projects aimed at crisscrossing the continent with transport corridors.”
    Proposed projects would include transcontinental transportation corridors that would require a huge outpouring of money. They would serve to benefit exporters and, by extension, transnational companies that profit the most from Africa’s commodities.Some of the more ambitious proposed projects include the construction of “Trans-African highway projects to connect Beira in Mozambique to Lobito in Angola, Dakar in Senegal to Lagos in Nigeria, and Lagos to Mombassa in Kenya.”
    While Africa suffers from an acute lack of infrastructure, it is important to consider what type of infrastructure is most needed to help alleviate poverty on the continent. By and large, transcontinental highways and railroads will require a huge outpouring of money and serve to benefit exporters and, by extension, transnational companies that profit the most from Africa’s commodities. Roads and high-quality railroads are indeed necessary to move goods to and from land-locked countries such as Uganda.
    The sheer scale of transcontinental projects, however, could distract effort and funds from these more manageable projects, and in the end the more grandiose projects have a higher likelihood of being abandoned because of unmet expectations.
    At the same time, Africa’s poor will likely remain cut off by the lack of basic local road networks and adversely affected by the intense footprint that such large-scale physical infrastructure projects often entail.
    A recent study by International Rivers and Environmental Defense also shows that large, capital-intensive infrastructure projects such as these tend to be the most prone to corruption. Questions also remain as to whether the AfDB has the requisite experience to identify and mitigate the serious potential impacts of these projects, and whether it wields sufficient leverage to ensure that its social and environmental safeguards, which are strong on paper, are enforced.
    Since it resumed regular operations after facing a financial crisis in the early 1990′s, the AfDB has sought to define itself as a lender with special expertise on infrastructure in Africa. It has consistently allocated a significant portion of its lending to the sector, and was chosen to coordinate regional infrastructure initiatives, such as NEPAD’s Infrastructure Action Plan and the Infrastructure Consortium for Africa (ICA). However, the AfDB has made limited progress in its convening role, and few of its ambitious plans to create regional energy, transportation, and water initiatives under NEPAD have come to fruition.
    While African governments appear keen to benefit from this and other regional infrastructure schemes, it remains unclear the extent to which this latest initiative is demand-driven or being pursued at the behest of donors. The lion’s share of new donor commitments at the AfDB have been earmarked for infrastructure, while a new high-level panel (see “High-level panel issues report on prospects for African Development Bank”) on the Bank recognizes that the board of the ADF is disproportionately influenced by its donors. A recent Financial Times article suggests that AfDB President Donald Kaberuka “is facing dissent from some African staff concerned that efforts to carve out an independent role for the AfDB are being undermined by some western donors.”

    March 5, 2008

    Protected: Trans-African Group of Companies (Clarification)

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    February 13, 2008

    EU Stands to Increase Market Share in Africa With EPAs

    EU Stands to Increase Market Share in Africa With EPAs

    Inter Press Service (Johannesburg)
    NEWS
    26 January 2008
    Posted to the web 26 January 2008

    By Julio Godoy
    Paris
    While the real impact of the economic partnership agreements (EPAs) on the economies of African, Caribbean and Pacific (ACP) countries will be “small”, the pace of negotiations and of the liberalisation of their markets is too fast and will damage their economies, according to numerous French economists and development experts.

    “The main problem with the EPAs is that the European Union wants to go too fast with the negotiations, too fast with the regional integration in the ACP group, and too fast with the market liberalisation in there,” says Bénédicte Hermelin, research director at GRET, a Paris-based umbrella organisation of international cooperation groups.

    The EPAs, supposed to take effect as of January 1, 2008, propose to create a free trade area between Europe and the 79 ACP signatories of the Lomé Convention. The convention goes back to the 1970s.

    EPAs are part of the Cotonou agreement — a much wider agreement signed between the European Union (EU) and the ACP countries in June 2000 in the capital of Benin. It covers aid, trade and political cooperation between the two groups of countries.

    The Cotonou agreement replaced the Lomé convention, which gave ACP countries special access to sell certain products in European markets.

    EU officials defend the EPAs as trade and development tools, as Peter Mandelson, EU commissioner for trade, has put it. In a speech on January 20, 2005, Mandelson described the EPAs as “potentially a crucial, hugely positive contribution that Europe can and must make to trade and development” in Africa.

    The EPAs’ “purpose is the successful integration of the ACP economies in the global economy — and by that I mean putting the ACP on a ladder of prosperity that ends the grinding poverty which is the daily experience of so many ACP citizens,” Mandelson said.

    But numerous ACP governments and European non-governmental organisations oppose the EPAs, for they consider them an instrument of “European economic neo-colonialism”, which would destroy these low developed economies by forcing ACP countries to open their markets to subsidized agricultural goods from Europe.

    However, says Hermelin, at least regarding agriculture, “for Africa, the imports of poultry from Brazil are more dangerous than those from Europe”. Similarly, she says, Africa will need to import milk from Europe “still for a long time, until its milk production can satisfy the local demand”.

    Other experts believe that the EPAs will strengthen Europe’s trade position in Africa at the cost of inter-Africa trade.

    “If African coastal countries, such as Senegal, completely open their markets to European agricultural products, then the Saharan countries producing livestock will lose their market shares in those neighbouring countries,” Benoit Faivre-Dupaigre, an economics researcher at the French Institute for Research on Development, told IPS.

    Like Hermelin, Faivre-Dupaigre denounced the pace of negotiations on the EPAs imposed by the EU. “This fast-track liberalisation contradicts the experience of industrialized countries, which needed decades to build up their domestic markets before they opened them up to international competitors,” he said.

    According to a study by the Paris-based Research Centre in International Economics (CEPII, after its French name), the impact of EPAs on ACP economies would be negative, if small.

    On the one hand, the liberalisation of trade with the EU would represent a 22 percent growth of imports from Europe. But, if 20 percent of these new imports are blocked by the “sensitive products” clause, that growth would fall to 16 percent, representing some 3.5 billion euros in new imports from Europe.

    However, these new imports from Europe would substitute goods the ACP countries presently bring in from the U.S., Brazil, China, Japan and other countries, thus reducing the new trade debit balance for the ACP countries to 1.8 billion euros.

    As the CEPII notes, given that the ACP countries imported a total of 102 billion euros in goods and services in 2005, that new deficit is insignificant.

    More important is the ACP custom revenues loss due to EPAs, as estimated by the CEPII. These losses could go up 3 billion euros per year for the ACP countries, with individual impacts going on from five to 35 percent of the state budget.

    In the cases of the poorest countries, such losses can be of enormous importance for states almost deprived of income, notes the CEPII.

    Such data lead Roger Blein, French development advisor for the Economic Community of West African States (ECOWAS, a regional group of fifteen West African countries), to believe that “even if the impact of the EPAs would be modest, it is clear that the EU is trying to expand its market share in the ACP countries.

    “When the European Commission says that Europe does not have any economic interest in the EPAs negotiations, it is lying,” Blein added.

    In general, French critics of the EPAs recall that while the EU farmers do enjoy of massive subsidies — some 50 billion euros in 2005 — small agricultural producers in the ACP do not.

    The French group ATTAC, for instance, argues that these subsidies for European agricultural goods already encourage overproduction and, if added to so-called free trade agreements such as the EPAs, will also promote export dumping.

    This will lead to the destruction of livelihoods in developing countries, representing a real and palpable menace for those countries’ “food sovereignty”.

    ATTAC stands for Association for the Taxation of Financial Transactions for the Aid of Citizens and opposes neoliberal globalisation in general, from the World Trade Organisation to the policies of the World Bank and the International Monetary Fund.

    In a position paper published last December, ATTAC recalls that the production of tomatoes in Ghana was affected by the structural adjustment programmes imposed by the International Monetary Fund in the 1980s and 1990s. “The import of tomatoes skyrocketed, from 3,600 tones to 24,000 tones,” ATTAC says in its paper.

    This growth in imports led to “weakening of the Ghanaian farmers, traders and the food processing industry in the country”. EPAs would launch a similar process in the whole of Africa, ATTAC claims.

    World Leaders Issue Call to Action on Millennium Development Goals

    Personally, I believe this (article listed below)is too little too late… and the basic NEEDS of Africa to meet and even exceed these goals are not congruent with the basic need for infrastructure like a drivable road!! 

    World Leaders Issue Call to Action on Millennium Development Goals

    World Economic Forum (Geneva)
    PRESS RELEASE
    28 January 2008
    Posted to the web 28 January 2008
    Davos
    World leaders have issued a joint statement at the World Economic Forum Annual Meeting in Davos vowing to make 2008 a turning point in the fight against poverty.

    The world is facing a “development emergency”, they said. “We pledge to work together to help the world get back on track to meet the MDGs.”

    Leaders spearheading the call to action include Ban Ki-moon, Secretary-General, United Nations, New York; Umaru Musa Yar’Adua, President of Nigeria; Gordon Brown, Prime Minister of the United Kingdom; H.M. Queen Rania Al Abdullah of the Hashemite Kingdom of Jordan, and Member of the Foundation Board of the World Economic Forum; William H. Gates III, Chairman, Microsoft Corporation, USA; Klaus Schwab, Founder and Executive Chairman, World Economic Forum; Bono, Musician, DATA (DEBT, AIDS, TRADE, AFRICA), United Kingdom; and John T. Chambers, Chairman and Chief Executive Officer, Cisco, USA.

    “We are here to say one thing loud and clear: Not on our watch!” said UN Secretary-General Ban Ki-moon.

    “I speak to those who are most vulnerable to climate change and those who suffer the most grinding poverty. Let 2008 be the year of the bottom billion,” he said.

    “We all agree that it is time to move from promise to performance …. Let us put our promises back on track for all the world’s children,” said Queen Rania.

    “This is a moral compact, not a legal contract. To take a concrete step forward, we must take this from a moral compact to legally binding contracts,” Bono told a packed press conference. “Thanks to African leadership and debt cancellation, 29 million children are now in school,” he said.

    “For us in Africa, the achievement of the MDGs is our sacred duty,” said Nigerian President Umaru Musa Yar’Adua. “One of the major challenges in Africa is the infrastructure gap that is one of the key enablers of the achievement of the MDGs. I welcome this initiative from the global community.”

    “It is right that, here in Davos, we tell the truth that there is a development emergency and that we must summon everyone in a call to action to take measures to meet the MDGs by 2015,” said British Prime Minister Gordon Brown.

    “This [call to action] fits in with the idea of creative capitalism,” said Gates. “We can make more progress and it is important to be part of this endeavour,” he said. “I want to challenge the business community” to join the renewed efforts of governments and NGOs, said Chambers. “It’s the power of collaborative innovation that makes a difference,” he said.

    The joint statement said:

    “At the Millennium Summit in 2000 the international community – every world leader, every international body, almost every country – vowed to spare no effort to achieve the seven key Millennium Development Goals (MDGs).

    Halfway to 2015 we have made some vital progress:

    • 3 million more children survive every year
    • 2 million people now receive AIDs treatment
    • There are 41 million more children in school
    • 2 million lives are saved every year by immunization
    • Polio, leprosy and neonatal tetanus are on the verge of elimination
    • African economies have been growing at 6% for the past three years, and are set to grow faster in the years ahead

    This progress inspires us all to do more. We know we can make a difference. But we still face an enormous challenge – a development emergency:

    • 72 million children are still not in school and many who are receive a very poor quality education.Half of the developing world lack basic sanitation.
    • If current trends continue, the world is likely to miss the MDG sanitation target by almost 600 million people.
    • Over half a million women still die each year from treatable and preventable complications of pregnancy and childbirth.
    • Over 33 million people are living with HIV, and more than 1 million people die of malaria every year, including one child every 30 seconds.
    • 980 million people still live on less than US$ 1 a day.

    So without an extraordinary effort we will fail to achieve the MDGs. 2008 is a critical year. If we don’t begin to get back on track we will fail. Today in Davos we – the undersigned – commit to work to make 2008 a turning point in the fight against poverty. We are pleased to join the 19 countries and 21 private sector companies that are now signed up to the MDG Call to Action. And we pledge to work together to help the world get back on track to meet the MDGs.

    We know we will only succeed if governments, the private sector, faith groups, civil society and NGOs work together.

    And to catalyse, inspire and focus activity within this broad coalition – and to measure progress towards the 2015 pledges – today we agree that the world community should set some 2010 milestones towards our 2015 goals, including:

    • 75 million more people lifted out of extreme poverty in Africa
    • 25 million more children in school
    • 4 million more children’s lives saved
    • 35 million more births need to be attended by skilled health personnel between now and 2010
    • 70 million more people given improved access to water

    A series of international meetings throughout 2008 will identify what more we all need to do to meet these goals and agree concrete action plans:

    • In the spring, the private sector will meet and announce new measures to help achieve the MDGs.
    • In June, European leaders will set out what more the EU can do to accelerate progress towards the MDGs.
    • In July, the Japan G8 Summit will focus on development and climate change.
    • In September, at the UN – and for the first time ever – governments, businesses, civil society organizations, NGOs and faith groups will all convene to mark the halfway point to the MDGs, take stock of progress and agree additional steps the international community will take to accelerate action.
    • And the Italians have agreed to take this forward into 2008 with their G8.
    • The world is witnessing a development emergency, and we need a worldwide effort to get back on track to meet the MDGs. We commit to join and redouble our efforts.”

    More than 2,500 participants from 88 countries are in Davos, Switzerland, including 27 heads of state or government, 113 cabinet ministers, along with religious leaders, media leaders and heads of non-governmental organizations. Around 60% of the participants are business leaders drawn principally from the Forum’s members – 1,000 of the foremost companies from around the world and across all economic sectors.

    Removal of Trade Tariffs Not Solution for Continent

    Removal of Trade Tariffs Not Solution for Continent

    New Vision (Kampala)
    OPINION
    28 January 2008
    Posted to the web 29 January 2008

    By John Ssempebwa
    Kampala
    REFERENCE is made to the article titled “African Governments Should Remove Trade Tariffs”, published in The New Vision, January 9. Removing trade tariffs is no solution to Africa’s problems; it cuts government revenue, worsens trade deficits and poverty. In May 2007, the Uganda Revenue Authority (URA) collected sh228b of which sh122b was from imports.

    Without import duties levied, especially on finished goods that are also produced in Uganda and ostentatious goods, how will government fund roads, hospitals, drugs and arms without donors?

    Whereas Europe can depend on indirect domestic taxes levied on red light districts, casinos, tobacco and alcohol, Uganda cannot remove import duties because its per capita income is less than $400 meaning that less than 1% of all Ugandans have entered a casino.

    Uganda has an increasing trade deficit of sh$1.4b. Trade deficits cause massive lay offs as imported goods subject domestically produced goods to competition, forcing sub-optimal capacity utilisation and laying off workers.

    This malignant tumour in the Ugandan economy is the reason why impressive growth rates have not translated into better welfare for many Ugandans (Gross Domestic Product is an inverse function of the trade deficit).

    Removal of import duties will encourage consumption of imports, worsen the trade deficit, jobs will be lost and markets for agro produce will dwindle. Poverty will worsen.

    Before import duty is removed, consumers should have sufficient purchasing power to spend and pay indirect taxes without the consumer feeling the tax burden. This requires industrialisation. In fact, Europe’s industrial development was shaped by fierce protectionism called “Fortress Europe” during which Britain levied an average tariff of 32%, France developed its current agricultural protective system, Bismarck dumped the German Free Trade Policy and average industrial tariffs stood at 19% in Europe.

    More so, Intra-African trade liberalisation needs a cautious approach since the EU has already signed free trade areas with leading African economies such as South Africa and Egypt.

    Removing tariffs on goods from South Africa in the absence of appropriate rules of origin means offering the EU duty free market access to Uganda yet “EU” has no offensive trade interests in Uganda. Why offer a lift to a rich man who has several Rolls Royces?

    The principle of asymmetry has to come into play when discussing removal of trade tariffs and any other trade controls in Africa. Some countries are at higher levels of development because of advantages bestowed upon them by European colonial masters. Full and immediate liberalisation of trade with such countries can only mean jobs lost in Uganda.

    In lieu of liberalising Africa’s trade, if the EU is interested in enabling Africa to benefit from world trade, the EU must compensate Africa for the damaging effects of liberalisation implied in the Economic Partnership Agreements.

    Africa’s true allies will not be those who impose liberalisation but those who help Africa adjust to the liberalisation by solving its supply side constraints, for example, building the big dam in neighbouring Congo (The dam could reduce the cost of power in Central and Eastern Africa by 50%), building an alternative route for Uganda’s imports through Tanzania.

    These projects have been identified by Africa and are contained in the development matrix of the Economic Partnership Agreements Negotiations.

    It is unfortunate that the EU agrees to the development matrix but hates a detailed one that identifies the costs and exact projects. Africa seems to know its problems better now. Liberalisation is surely not the solution to our problems.

    The writer is the Director of Trade at the Private Sector Foundation

    January 25, 2008

    African bank to champion infrastructure financing

    African bank to champion infrastructure financing

    Fri 25 Jan 2008, 5:33 GMT
    By Diadie Ba
    SALY PORTUGAL, Senegal (Reuters) – Sixty percent of the African Development Bank’s $8.9 billion soft loan resources for 2008-2010 will go towards infrastructure projects on the continent, a bank official said on Thursday.

    Last month, donor countries agreed a record level of support for the bank’s soft loan window, the African Development Fund, amounting to $8.9 billion for the next three years, 52 percent up from the 2005-2007 period.

    The AfDB, whose shareholders include Africa’s 53 nations and 24 non-African donor countries, lends commercially to Africa’s richest nations and at concessionary rates to poor ones from its Development Fund, financed largely by Western donors.

    Addressing an African ministerial conference in Senegal on Infrastructure Financing, Youssouf Ouedraogo, special adviser to AfDB President Donald Kaberuka, said $4.8 billion of these funds for concessionary lending were earmarked for infrastructure.

    This included a number of major road and rail projects aimed at criss-crossing the continent with transport corridors.

    “These resources are insufficient …. the bank will spare no effort to try to mobilise additional resources coming from multilateral and bilateral partners, sub-regional banks and the private sector,” he told delegates at the conference in the coastal resort of Saly Portudal.

    Ouedraogo said the bank was already financing and carrying out feasibility studies in major existing transport corridor projects, such as those to link Djibouti on the Red Sea with Dakar and Libreville on the Atlantic coast to the west.

    It would also support trans-African highway projects to connect Beira in Mozambique to Lobito in Angola, Dakar in Senegal to Lagos in Nigeria, and Lagos to Mombasa in Kenya.

    Financing was also earmarked for three major bridge projects, at Rosso over the Senegal River between Senegal and Mauritania, over the Gambia River in Gambia and the Kazangula bridge over the Zambezi between Zambia and Botswana.

    In addition, the bank was contributing to the financing of the rehabilitation and expansion of the giant Inga dam hydropower project in Democratic Republic of Congo.

    In his speech to the conference, Senegalese President Abdoulaye Wade urged African countries to work together to develop the continent’s deficient infrastructure under the New Partnership for African Development (NEPAD), which aims to fight poverty and improve governance.

    “For several years, nobody wanted to hear about infrastructure. Today, we are unanimous,” he said.

    Historically, Africa’s infrastructure has been geared to old colonial markets in Europe, resulting in economic isolation for the 40 percent of Africans who live in landlocked countries, and starving local markets of cross-border roads and railways.

    “Without infrastructure, there’s no development. We need a single voice and a single agenda,” Bernard Joba, commissioner for infrastructure at the African Union, told the conference, which was attended by representatives of regional and international organisations.

    December 9, 2007

    Libya Opens Natural Gas Exploration to Foreign Firms.

    Gazprom, Shell, Sonatrach and Polski win first gas contracts in Libya

    Libya on Sunday awarded four potentially lucrative gas exploration contracts to fuel giants Shell, Gazprom, Sonatrach and Polski, the first ever given to foreign firms as relations warm between Tripoli and the West.

    The biggest award went to Algerian firm Sonatrach in association with Oil India and Indian Oil, which was given four blocks covering 6,934 square kilometres (2,677 square miles).

    Russian giant Gazprom was awarded three exploration blocs with a total area of 3,936 square kilometres in the southern Ghadames basin.

    Gazprom beat off competition from Gaz de France, Inpex of Japan, Russian rival Lukoil, Britain’s BG and Polski, agreeing to cede 90 percent of its eventual production to Libya’s state-owned National Oil Corporation (NOC).

    Anglo-Dutch company Shell was handed a two-block contract to explore a 1,790 square kilometre area in the northern Sirte basin and Polish firm Polski was also awarded a two-block area in the southern Murzak basin.

    Shell was awarded its exploration rights following a bid of 93 million dollars and 85 percent of its eventual production.

    Sonatrach outbid Gaz de France, BG, Polski and Germany’s RWE and proposed 87 percent of its production go to the NOC.

    A total of 35 companies had been pre-selected to bid for the dozen contracts awarded Sunday to explore 41 gas blocks in the Mediterranean, the Sirte basin in the north-central area of the country, Cyrenaica further east and Murzek and Ghadames in the south.

    The blocks cover a total of 72,500 square kilometres (almost 28,000 square miles), an area the size of Scotland.

    It was the first time Libya invited tenders for natural gas exploration.

    Regarding eight as yet unattributed blocks, National Oil Company president Shukri Ghanem said the NOC “will decide next week if it will award licences or if it will keep them for a second invitation to tender.”

    With the end of UN sanctions after Libyan leader Moamer Kadhafi’s dramatic decision in December 2003 to abandon weapons of mass destruction programmes, oil and gas exploration has picked up at a frenetic pace.

    OPEC member Libya is the African continent’s second largest oil producer at 1.7 million barrels per day. It also has natural gas reserves estimated at 1,314 billion cubic metres (46,403 billion cubic feet).

    Among the notable losers on Sunday was French company Gaz de France, which imports large quantities of Libyan natural gas.

    Earlier, a company official said it was keen to “get a foothold” in exploration in the country.

    “Libya interests us the most and we wish to work there,” head of exploration and production at Gaz de France Renato Gurrero-Serreau told AFP.

    Kadhafi, whose country spent years in diplomatic isolation for its alleged support of terrorists, begins a high-profile visit to France on Monday during which he will hold talks with President Nicolas Sarkozy in Paris.

    BioFuels and the Future of Africa

    Biofuels: danger or new opportunity for Africa?

    by Romaric Ollo Hien

    The growing promotion of environmentally-friendly biofuels is raising questions for Africa: are such fuels a threat to food security or a golden opportunity to cut down on fossil fuel bills.

    Some 300 experts from the continent and further afield in the Americas and Europe, gathered earlier this month in the impoverished capital of the non-oil producing west African nation of Burkina Faso to debate the pros and cons of biofuel generation on the continent.

    “No matter what we say, today biofuels represent a pragmatic solution in light of the energy problems in relation to soaring oil prices,” said Paul Ginies, managing director of the Ouagadougou-based International Institute for Water and Environment Engineering.

    Generation of biofuels could help provide solutions to transport costs and reduce expenditure on energy in rural areas by between 30 and 40 percent, argued Ginies.

    Biofuel farming should not be perceived as being in competition with food production and other types of agriculture, he stressed.

    “These two types of production are very well reconciliable. Our ambition is that they can help one another,” Ginies said, noting that biofuel byproducts could serve as livestock feed or fertiliser for food crops.

    But Moussa Hassane, managing director of the National Institute of Agronomy Research in Niger, insisted that Africa should be wary of the sudden interest in biofuels.

    “Why the particular interest in biofuel production now in Africa? Africa has always been a leading raw material reserve tank for the West,” he said.

    “Africa constitutes the ideal site for the production of biofuels. But of what benefit is that to the continent? Could that be done without posing a danger to food production,” he asked.

    Maurizio Cocchi of an Italian renewable energies non-governmental organisation Energy Transport Agriculture also urged caution.

    “I am happy that African countries understood … the environmental risks and threats to food security related to biofuel production. There are still uncertainties that would require research,” he said.

    Daniel Ballerini, of a French bio-energy development research institute Enerbio, suggested that biofuels be reserved for certain limited uses.

    “Biofuel does not have have to be used for transport (vehicles), it should be used, for example, in tractors’ engines. I am not for the use of biofuels in cars as long as the problem of food security remains,” he said.

    “We should not use good land for the production of energy, we should cultivate biofuel crops on land that is less favourable for food crops,” he said.

    Experts elsewhere see the growing demand for biofuels coupled with the high prices of fossil fuel having a dramatic impact on millions of people, especially in Africa where food prices are beyond the reach of many.

    Escalating food prices have affected almost every nation on the continent, so far sparking violent protests in parts of West Africa, home to the greatest number of the world’s most poverty-stricken countries.

    Senegal’s Wade Blasts EU

    Europe, Africa stuck on key issues

    By BARRY HATTON, Associated Press Writer

    The first summit between Europe and Africa in seven years came to an acrimonious end Sunday with leaders squabbling over human rights and no progress on a looming trade pact deadline.

    Old divisions surfaced at the two-day summit as leaders swapped accusations over the crises in Zimbabwe and Darfur, and postcolonial tensions deepened over free trade deals.

    The World Trade Organization has ruled that the EU’s 30-year-old preferential trade agreement with Africa was unfair to other trading nations and violated international rules. New deals are meant to be finalized by Dec. 31.

    Senegalese President Abdoulaye Wade said most African leaders had rejected the European Union’s free trade proposals, known as Economic Partnership Agreements, and wouldn’t discuss them further.

    The proposals “aren’t in Africa’s interest,” Wade said in angry comments at a news conference.

    Negotiations on the pacts — meant to replace colonial-era trading systems between Europe and its former colonies — have lasted five years and officials had hoped the summit would bring a breakthrough.

    The EU is offering African governments unrestricted access to its 27-country market if they in turn grant tariff reductions for European goods — a measure Africans fear will make their less competitive local companies vulnerable.

    African Union Commission President Alpha Oumar Konare said the EU had to give up its “colonial approach.”

    “The riches of Africa must be paid for at a fair price,” he said.

    During previous talks, African governments have said the agreements would do little to boost their access to European markets. They also viewed the conditions as an EU attempt to meddle in African affairs.

    Friction between the continents comes as many African countries are developing strong trade ties with China, whose influence has soared on the back of billions of dollars in aid and investment.

    The EU is concerned that the search by China and other rising powers for oil and other resources across Africa comes with no demands for democracy and human rights. Africans, though, say the Chinese come willing to negotiate as equals.

    Officials from both continents said the presence of more than 70 heads of government at the summit showed leaders on both continents wanted better relations. But they left the Portuguese capital with only a broad statement of intentions.

    Human rights and aid groups expressed exasperation. Save the Children said in a statement the summit was “a high-profile exercise of little substance.”

    Differences over the human rights record of Zimbabwean President Robert Mugabe and measures to help end the conflict in the western Sudanese region of Darfur dogged the event.

    Asked what was his message to Europe as he arrived at the summit venue Sunday, Mugabe said nothing but raised his arm and made a fist.

    German Chancellor Angela Merkel said Saturday the EU was “united” in condemning Mugabe for what they view as his economic mismanagement, failure to curb corruption and contempt for democracy. British Prime Minister Gordon Brown stayed away from the summit in protest against Mugabe’s attendance.

    Mugabe was reportedly scathing toward his European critics in his speech at a closed session.

    “He said criticisms were trumped-up charges against Zimbabwe and the result of arrogance from the EU,” according to a European official who attended the summit, but who spoke on condition of anonymity because she was not authorized to discuss the details publicly.

    Ghanian President John Kufuor, current chair of the AU, said the organization supports mediation efforts among Zimbabwe’s main political parties being led by South African President Thabo Mbeki and aimed at political reform. But he insisted that meddling from outside Africa would be unhelpful.

    “We want to encourage a homegrown solution so there will be a restoration of normalcy and good governance for the people of Zimbabwe,” Kufuor said.

    Measures to help end the conflict in the western Sudanese region of Darfur were another point of contention.

    Sudanese President Omar al-Bashir has so far refused to allow non-Africans into a 26,000-strong U.N.-A.U. peacekeeping force planned for Darfur. EU nations, meanwhile, have failed to come up with the needed military hardware to support the operation.

    Sudan and United Nations envoys met on the sidelines of the summit. They said in a brief joint statement there had been “clarification” of some issues but gave no details.

    On trade, European Commission President Jose Manuel Barroso acknowledged the difficulty of reaching free-trade deals between wealthy European countries and poor African nations.

    “It is a challenge for both Africans and Europeans and will require time,” Barroso said in a speech to the gathering.

    The World Trade Organization has ruled that the EU’s 30-year-old preferential trade agreement with Africa was unfair to other trading nations and violated international rules. New deals are meant to be finalized by Dec. 31.

    The two sides will press ahead with talks on interim accords with individual African countries to assure they continue to enjoy privileged access to European markets, he said.

    “We are nearly there and we now need to focus all of our energy to achieve this priority objective,” Barroso said.

    ___

    Associated Press writers Daniel Woolls, in Lisbon, and David Stringer, in London, contributed to this report.

    Africa Becoming Estranged from EU.

    EU, Africa open new chapter after no-hold-barred summit

    by Amelie Bottollier-Depois

    EU and African leaders pledged Sunday to create a new partnership of equals at a summit marked by rows over trade and Darfur and a vitriolic attack by Zimbabwe’s Robert Mugabe on European “arrogance.”

    After two days of what hosts Portugal described as a no-holds barred debate, leaders of the two continents put their names to an “Africa-EU Strategic Partnership” agreement to take their relationship to “a new, strategic level.”

    They vowed “to move away from a traditional relationship and forge a real partnership characterised by equality and the pursuit of common objectives” and which “capitalises on the lessons of the past.”

    And in a post-summit address to his guests, Portugal’s Prime Minister Jose Socrates said the often troubled history between the continents had entered a new era at the first such summit in seven years.

    “What is important is that we met each other face-to-face, on an equal setting, in a new spirit,” said Socrates.

    “I think I can say the idea that has been expressed most often is that this summit represents the turning of a page in history.”

    Ghana’s President John Kufuor, the African Union’s current president, agreed the summit had witnessed frank exchanges but on an equal footing.

    “We met at this summit talking plainly and directly as equals,” said Kufuor whose country was the first in Africa to gain independence from a European colonial power, Britain, exactly 50 years ago.

    But despite the declaration on a “shared vision” for the future, the shadow of colonialism prevented any real warmth in a summit where starkly different views on issues such as immigration and human rights were on display.

    German Chancellor Angela Merkel accused Mugabe on Saturday of “harming the image of the new Africa” with his rights record.

    Mugabe hit back on Sunday, charging British Prime Minister Gordon Brown, who boycotted the summit over his presence, was behind criticism of Zimbabwe.

    “Yesterday, we heard four countries — Germany, Sweden, Denmark and the Netherlands — criticise Zimbabwe for lack of human rights for non-observance of the rule of law..,” the Zimbabwean president said at a closed door session.

    “Does the German chancellor and the pro-Gordon gang of four of yesterday really believe that they have a better knowledge of Zimbabwe” than African bodies? “It is this arrogance that we are fighting against.”

    Sudanese President Omar al-Beshir received a similar carpeting from a delegation of European leaders, including Portugal’s Socrates and French President Nicolas Sarkozy who implored him to allow the rapid deployment of a UN-led peacekeeping force to stem the bloodshed in the western Darfur region.

    “We told him it is in Sudan’s best interests … that there is a halt to the massacres on its territory and that in order for the massacres to stop, the hybrid (UN-AU) force needs to be deployed as soon as possible,” said Sarkozy.

    Wary of China’s growing push into Africa, the European Union has been keen to nail down new trade agreements before the expiration of existing deals at year’s end.

    But while the message from Europe was no one would be pressured into agreement, African Union Commission chief Alpha Oumar Konare warned EU negotiators to “avoid playing certain African regions off against each other.”

    “No one will make us believe we don’t have the right to protect our economic fabric.”

    EU Development Commissioner Louis Michel condemned the comments.

    “I think that it was excessive and unjustified and that it was not the best way to defend the interests of Africa,” he said.

    Asked how negotiations on the Economic Partnership Agreements (EPAs) were going, Italian Prime Minister Romano Prodi told reporters: “Not easy.”

    “The African countries are more and more afraid to be in some way pushed down by sudden competition, so they are asking for guarantees.”

    If West Gets Agricultral Subsdies WHY can’t Africa?? WTO to Blame??

    Farmers in Africa, West rethink subsidy

    By CHRIS TOMLINSON, Associated Press WriterFarmer Loi Bangoti picks corn by hand on the lush, cool slopes of his land, nestled under the cloudy shadow of Africa’s highest mountains.

    Half a world away, farmer Tim Recker drives his combine through the famously flat, open corn fields that stretch out in the sun across the plains of Iowa.

    For all their differences, both men rely on a complex global food market that decides how much their corn is worth and who will buy it. And the lives of both — along with millions of other farmers — will be affected by a growing movement to change one of the biggest forces shaping the market: subsidies.

    Many experts agree farmers need help to grow food year in and year out, but Western farmers may get too much and African farmers too little. Western farmers receive billions of dollars in subsidies every year, which makes their food cheap to grow and sell. African farmers are left on their own because of decades of anti-subsidy policies pushed by the World Bank and others as a condition for aid money.

    Now Africans are fighting back.

    Some African countries are considering subsidies for their own farmers — Malawi has started providing discount vouchers for seed and fertilizer to farmers and is seeing such a bumper crop that it now sends emergency corn to neighboring Zimbabwe. African nations have also joined in lawsuits opposing American subsidies, resulting in a World Trade Organization ruling in October that the U.S. could face billions of dollars in sanctions.

    At the same time, subsidies are facing more scrutiny than ever within the United States. A farm bill before Congress — the first in five years — was once a shoo-in, but now faces the threat of a veto from President Bush. He has called for an end to farm subsidies by 2010 to avoid trade conflicts.

    The complexities of the subsidy debate play out far from the courts and the chambers of power in the daily lives of farmers like Bangoti and Recker.

    Bangoti’s story shows how a little help can go a long way. He points with pride to his two acres of corn, beans and potatoes, stretching up the slopes of Mount Meru in a mosaic of various greens dotted with the brown of a few fallow fields.

    Back in 1992, Bangoti lived in a mud hut, worked as a day laborer, herded skinny cows and harvested barely enough corn and beans to feed his family. Then scientists came to his farm as part of an agricultural aid program.

    They looked at his soil, found the right seed and gave him his first batch of chemical fertilizer. They showed him how to get as much milk from two dairy cows as from his 20 traditional cattle. The techniques were simple, yet rare in Africa, where few labs analyze soil samples and few companies develop improved seed.

    By 1993, Bangoti had tripled his output — and profits. At the time, he was profiled in an Associated Press story on African farming. His success since proves it was no accident. He is still farming, and still thriving.

    “I built my own modern house,” Bangoti, 50, says proudly, sitting under a shiny tin roof surrounded by dark blue concrete walls. “I was able to send my children to school. … A long time ago, you could have a lot of cows, and have nothing. Now, with this modern way of living, you can have a few cows, but produce more.”

    Bangoti says all it would take is a little training and a few supplies for Africans to grow all the food they need.

    They once did, in the 1960s. Now, Africans import 25 percent of what they eat. Their share of the global agricultural market is down from 8 percent to 2 percent. And theirs is the only continent where food production per capita has fallen — roughly 22 percent since 1967, according to the World Resource Institute.

    One reason, experts say, is the loss of subsidies. In exchange for foreign aid, debt-saddled African countries agreed to cut subsidies. Less than 4 percent of government spending in sub-Saharan Africa now goes to agriculture.

    But without a safety net, a single bad season can bankrupt a farmer, and often does. And without help, African farmers are too poor to pay for the good seed and fertilizer that bring land to life.

    There are signs of change. The World Bank is rethinking its stance on subsidies after a scathing internal review last month, and it made agriculture the center of its agenda this year for the first time in more than two decades. About 70 percent of Africans live off the land, and agricultural reform — from seed to market — is the surest way to lift the continent out of poverty.

    African governments have promised to double their spending on agriculture. And the Gates Foundation and former U.N. Secretary-General Kofi Annan are leading an effort to bring to Africa the green revolution that swept through Asia.

    As Bangoti leafs through a photo album of the experts who have visited his farm, he says the training and the aid have changed his life.

    “Now I am always moving forward,” he says. “I never go backward.”

    Bangoti says he could grow even more — if he could sell it. But he is competing against farmers in the richest countries of the world who get a lot more help, such as Recker.

    The corn fields Recker sees through the glass patio doors of his modest ranch house have supported his family for generations. Recker followed his father and grandfather into farming, and works 1,500 acres in northeastern Iowa with his brother.

    Today, the price of corn is at a record high because it is in demand to make ethanol. Recker’s business revolves around the timing of the markets as much as the seasons. As he sits at his breakfast table in his overalls and baseball cap, his mobile phone beeps to announce the arrival of the opening commodity prices at his local mill.

    It was a different story when Recker started out in the mid-1980s, during one of the country’s worst agricultural crises. He says he could never have survived it without subsidies.

    Subsidies kick in when prices are low. But they are given for each bushel, which creates an incentive for farmers to grow as many bushels as they can. The torrent of food then drives down world prices and makes it next to impossible for African farmers to compete.

    Some of the extra food ends up in Africa. Most Iowa corn floats down the Mississippi River on barges to become feed for livestock or grist for ethanol. But at some point Recker’s corn has almost certainly gone to Africa for food relief, which experts say destroys local markets.

    The United States — the largest donor to the U.N. World Food program — sends Africa corn, wheat, sorghum and soybeans. Aid agencies then have to hand out free or cheap American food instead of buying from African farmers. The cheap imported grain keeps Africans poor, and dependent on cheap imported grain.

    The crisis is such that Atlanta-based CARE International, one of the world’s largest charities, announced in August that it would walk away from $45 million in American food to avoid disrupting the economies of the people it wants to help.

    The subsidy system makes it hard for African farmers to compete on the world market. Western farmers get 29 percent of their income on average from their governments, according to the Organization for Economic Cooperation and Development. So they can sell their food for far less than Africans who get no subsidies.

    African farmers may get help from an unexpected source — American corn and wheat farmers.

    A new generation of corn and wheat farmers is arguing that the current subsidy system no longer meets the needs of their rapidly changing business. Instead of subsidies per bushel, they want the guarantee of a minimum level of revenue for each farm.

    The change seems small, but it could result in farmers growing far less — and dumping far less extra corn and wheat on global markets. So Recker, the president of the Iowa Corn Growers Association, goes to Washington every three weeks to make a case that will benefit Bangoti, quite by accident.

    “I think we have an opportune time to make sweeping changes in farm policy,” Recker says. “We need to have a program that is designed to supplement the farmer only when he needs it, and when he needs it most.”

    Other farmers are not so sure. Peanut and cotton farmers want to keep the current subsidy system but get more money from it.

    American cotton farmers receive $3 billion a year in subsidies — sometimes more than half their income, said Daniel Sumner, an agricultural economist at the University of California at Davis. He calculates that African cotton farmers — who pick each bud by hand and dig furrows with plows and oxen — lose $250 million a year because of the U.S. subsidies. That’s enough for each of those farmers to feed two children and pay all school fees for a year.

    Cotton farmers in the U.S. say that the impact of subsidies on Africans is overstated, and that African farmers face internal challenges such as productivity and low yields.

    Back in Tanzania, Loi Bangoti is not waiting for the outcome of the subsidy debate. In fact, he has never heard of subsidies for Western farmers, and he has no idea how they might affect his business.

    But he is thrilled with his own success. His four sons have embraced the new ways he learned, and one even teaches modern dairy farming in a new program in neighboring Uganda.

    He is especially proud of one thing: He no longer needs or takes handouts.

    December 6, 2007

    Surprise: Africa Needs $43 Billion to Restore Road Network

    Actually this should not be a surprise to anyone. DRC (Democratic Republic of Congo) which is the land mass size of ALL of Western Europe, is proported to have less than 500 Kilometers (300 miles) of PAVED Roads. Trans African Development Company (Not-For-Profit Company) has been attempting to establish a fund to raise 45 Billion US Dollars to rehabilitate the Sub-Saharan Trade Routes as a form of AID to Africa… This “Aid” is the type that Africa NEEDS to help sustain itself and the benefits are already well quantified!!

    Craig Eisele

    Here is the Article:

    Continent Requires $43 Billion to Restore Road Network

    Leadership (Abuja)

    NEWS

    3 November 2007

    Posted to the web 5 November 2007

    By Ofem Uket

    African states, including Nigeria, will require about $43 billion to restore the state of roads in the region, considering the long neglect and low maintenance of the highways.Such roads will require immediate rehabilitation, and this restoration can be applied on such roads that are economically justifiable, and to prevent further deterioration, would require annual expenditure over the next 10 years of at least, one per cent of regional Gross Domestic Product (GDP).

    The economics of cost of poor road maintenance are borne by road users. Refusing or differing road maintenance increases the cost of road transport, and raises the net cost on the economy. Each naira differed or saved on road maintenance increases the vehicle operating cost.

    One of the key concepts to reduce the low level of maintenance on roads is by commercialisation of roads, which of course, the federal government has embarked on through the bidding process on classified roads across the country to be given out on concession.

    Another key element of surface transportation now and in the future, will be toll roads. That is, bringing roads into the market place, and putting them on a fee for service basis. That way, the government will spend less, and roads will be more attractive to use and will be restored to its lost glorious condition of the past.

    For instance, Ghana installed an independent board to oversee the management of its road fund created in 1995, Tanzania in 1992, and Zambia in 1995, while Lesotho and Malawi are in the process of creating autonomous road funds and road boards.

    Out of the 10.711 kilometres of road (motorway) networks in France, 7.186 kilometres are owned and operated by concessionaires for a toll of half a Franc per kilometer (6 cent/mile) , which is charged to cover the cost of financing, construction, operation, maintenance and general profit. And in other countries like Chile, Santiago and South America, they charge according to the distance covered, and the charges are structured in three levels.

    Motorists in Nigeria are willing to pay for the use of roads, according to statistics on random sampling opinion, in so far as federal roads are put in a perfect motorable condition that will guarantee safety of lives and property, contrary to the death traps that exist on the highways presently.

    There has to be a clear cut distinction on maintenance and rehabilitation of federal roads handled by government, and the ones managed by the private sector under the commercialisation exercise.

    African Economy is Extreemly Attractive

    Economy May Become Africa’s Most Attractive

    Angola Press Agency (Luanda)
    NEWS
    26 November 2007
    Posted to the web 27 November 2007
    Luanda
    The Angolan economy may become in coming years one of the most attractive in Africa south of Sahara, as it is scoring favourable developments, where transparency in business is concerned.

    This was said Monday in Luanda by US consultant, Barney Rosemberg, who was speaking on Ethics and Global Trade, during a seminar organised by the Association of Angolan Economics Journalists (Ajeco).

    According to him, this fact can attract world companies into the Angolan market, making the country economically stronger.

    He said that in order for the country to reach this level, it should continue directing its transparency efforts towards aspects where ethics contribute to business growth.

    He considered ethics in business as values and acts that have to do with, among other aspects, integrity, honesty and respect for people.

    The expert stated that the new tendency in businesses indicates a growing movement of companies towards opening “Ethics and Conduct” or “Conformity” offices. The idea in setting up such departments is to push forward solutions to the companies’ internal problems.

    According to Barney Rosemberg, a programme of ethics for companies permits to improve businesses, save money for shareholders and employees, rather than for fines and penalties.

    Organised by Ajeco in partnership with the US Embassy to Angola, the event received contributions from journalists, business people, students and guests.

    Africa’s Equity Markets

    Africa Has Functioning Equity Markets

    The Voice (Francistown)
    NEWS
    27 November 2007
    Posted to the web 27 November 2007

    By Chedza Simon

    Sub Saharan Africa is said to be having excellent and functioning equity markets, which are an added and competitive advantage to investor confidence for the continent.

    Stephen Jennings, CEO of the Renaissance Group said while doubters, investors and African continent observers claim that high commodity prices are alone propping up Africa’s economic vitality, the continent has exciting and functioning equity markets.

    “Prior to1989, there were only five (5) stock markets in Sub Sahara Africa. Today there are 16 countries with fully operational bourses. These exchanges have seen a dramatic growth in market capitalisation rising from $14,5 billion in 2002 to nearly $100 billion now, a compound annual growth of nearly 50 percent,” he said.

    Jennings said while liquidity is still limited, it is increasingly rapid. According to his company’s finds, equity turnover in Sub Sahara Africa year to-date is $15,7 billion, a two-fold increase from all of 2006. “Thriving stock markets and robust capital markets officer considerable benefits. They prompt more robust financial disclosure, improved corporate governance, a focus on shareholding rights and regulatory best practices. They boost domestic savings and they increase the quantity and quality of investment and investors.”

    Renaissance Group was, this year, involved in two landmark $300million equity capital markets transactions, one for Access Bank and the other for Union Bank. There is at least $1 billion offering in the wings for early next year, said Jennings.

    Domestic demands and investment are key drivers in Sub Sahara Africa’s economic expansion. “There are pent up savings in both government and the private sector which when put to work will further increase the speed of economic growth of Africa. Many governments have saved rather than spent their commodity and debt relief windfalls. Companies are also ready to increase borrowing because the cost of debt has fallen below expected rates of return.”

    For economies to prosper, Jennings said, there is need to foster sustainable domestic private sector. He is confident that for Sub Sahara Africa to prospect, governments need to accelerate enactment of legislation and developing regulatory regimes to reduce the cost and barriers of doing business in Sub Sahara Africa. “Land ownership and reforms is one very important case which is crucial to creating a strong and flourishing domestic private sector. Lowering and creating a level playing field for foreign investors is also necessary because the participation of foreign investors in the region’s capital markets will drive valuation to international levels,” said Jennings.

    December 5, 2007

    EU’s Michel says summit should bring fundamental change to EU-Africa relations

    From the International Herald

    Tribune

    EU’s Michel says summit should bring fundamental change to EU-Africa relations

    The Associated Press

    Friday, November 30, 2007

     

     

    BRUSSELS, Belgium: The European Union’s top development official said Friday he hoped next week’s Europe-Africa summit would lead to a “fundamental shift” in bilateral relations and allow the EU to reclaim ground lost to China.

    EU Development and Humanitarian Aid Commissioner Louis Michel said that while colonial history remains on Europe’s conscience and “Africa will probably still exploit it for some time,” the two sides must structure their future partnership as one of equals.

    “The donor-recipient mode has led to attitudes on both sides. We must get rid of the give-and-take attitude,” Michel said in a speech to the European Policy Center think tank. “I hope the summit is going to lead to a fundamental shift in relations.”

    The Dec. 8-9 summit will focus on five main issues: governance and human rights, peace and security, migration, energy and climate change, and trade.

    Portugal, which holds the EU’s rotating presidency, wants the Europe-Africa summit to herald a period of closer cooperation between the 27-nation EU and the 53-member African Union and counter the influence of China, which has invested billions of euros (dollars) in developing African countries in recent years.

    “In Europe we don’t always realize that, but African countries, which used to be out there with a begging bowl, are becoming quite popular, and they’re taking advantage,” Michel said.

    The protracted spat between Britain and Zimbabwe over the presence of Zimbabwean President Robert Mugabe is threatening to overshadow the summit. British Prime Minister Gordon Brown has said he would stay away from the summit because of Mugabe.

    But Michel said he didn’t think the summit would fall hostage to the spat.

    “At the bottom of this is colonial history, you can’t rewrite history … but if you don’t offer them a new framework they will always work with this historical memory,” he said.

    Africa-Europe – Alternative Parallel Summit

    European and African CSOs and social movements will debate alternatives in Lisbon

     

     

     

    European and African civil society organizations will meet in Lisbon on 8 to 9 December, in parallel with European Union / African Union Summit.

    They will alert political leaders and public opinion of the two continents to the disasters caused by trade competition, economic exploitation of ecosystems, restrictive migration policies and contempt of the most fundamental economic and social rights.

     

     

    The second European Union / African Union Summit will be held in Lisbon on 8 – December 2007.

     

     

     

     

    In the words of the European Commission this Summit should sanction the transition from a “European strategy in Africa” towards a “Euro-African strategy” based on real partnership. On the program (although the final agenda has not yet been revealed): climate change and energy issues, governance and human rights, and migrations, mobility and employment. So far as Africa is concerned, the main priorities for discussion are agriculture and food sovereignty.

     

     

     

     

    The issue of the Economic Partnership Agreements, initially swept under the carpet by the Portuguese Presidency which did not want such a sensitive question to endanger the success of “its” Summit, has recently become come to the fore and will, in fact, be a core stake of the debates. Given the contentious course of the negotiations, in particular the disintegration of the regional blocks, Lisbon could well be the theatre of disruptive discussions.


     

     

    Words face to face with a cruel reality

     

    EPAs directly threaten the survival of the majority of the African populations and are provoking an unprecedented opposition throughout the continent ; at the same time, the “fortress – Europe” does not unveil any alternative and intensifies its violation of fundamental rights.


     

     

     

    Treated as a reservoir of raw materials and/or a market of new potential consumers, the African continent’s wealth is coveted by international economic actors, its local markets are under attack by foreign exporters and its populations are relegated to the position of recipients of miserly international assistance which perpetuates their dependence.

     

     

    Far from shouldering Europe’s responsibility to develop real solidarity with Africa, the European Union’s policies regarding Africa are all inspired by a strategy which directly threatens the economic, social, environmental and cultural rights of the African populations. Underwritten by the European transnational firms in perpetual search for new markets, the EU strategy in Africa weaves together aggressive trade agreements with facilities for exploitation of revenue for European companies and increasing restrictions on the movement of the people, to the detriment of ecosystems and equitable redistribution of local resources.


     

     

     

    What can Europe propose to its African partners in alternative to the so-called “pro-development” trade agreements? How to formulate a migration policy which respects the international human rights conventions and provides meaningful support for development processes in Africa?


     

     

     

    It is to communicate these concerns and propose responses to them that European and African international solidarity organizations, social movements NGOs, farmers’ organizations and trade unions will gather together in Lisbon on 8 to 9 December.


     

    THE ORGANIZATIONS INVOLVED

     

     

    PORTUGAL: AJP/ ATLA/ATTAC/ Bacalhoeiro/ Cores do Globo/ FDLI/Fundo de Apoio Social de Cabo Verdianos em Portugal/Gaia/ Khapaz/Moinho da Juventude/ Panteras Rosa /Solidariedade Imigrante/ SOS-Racismo/ UMAR/ZDB

     

     

     

    Europe : Seattle To Brussels Network/ActionAid International/Attac Europe and its national membership/ AITEC-IPAM/Cordaid/Ecologistas en accion/Terra Nuova/Friends of the Earth Europe/IATP, Migreurop network/Transnational Institute/War on Want/Via Campesina Europe/11.11.11/WIDE, World Development Movement/No Vox Network/Nova Terra/Survie France, CCFD, Secours Catholique-Caritas, Zimbabwe Watch.

     

     

     

    AFRICA : African trade network/ACORD Kenya/Alternatives Niger/Seatini/Mouvement des Sans-Voix- Mali/ People Parliament/ROPPA/Eastern and Southern African Small Farmers Federation/National Smallholders Farmers Association of Malawi/CADTM Maroc/Plate-forme sous-régionale des organisations paysannes d’Afrique Centrale/Publish what you way Congo/Jubilee Zambia/Eastern African Farmers Federation.


     

     

    PROGRAM

     

    Friday 7th December

    15h00 Press Conference

    19h-22h00 Cultural events in various sites of Lisbon

     

     

    Saturday 8th December

     

    Venue: Fac. de Belas Artes – Chiado (College of Fine Arts – in Chiado)

     

    09h00 Opening of the meeting: Welcome and plenary session

    10h30-13h30 Discussions in parallel sessions

     

     

    Theme 1- Ecology, Natural Resources, Agriculture and Food Sovereignty

     

    Theme 2 – Migrations

    14h30–17h30 Discussions in parallel sessions

     

    Theme 3 – Economic Development and Trade

     

    Theme 4 – Human Rights

    17h30 – 19h30 Self-organized workshops

     

     

     

    Sunday, 9th December

     

    Venue: Fac. de Belas Artes – Chiado (College of Fine Arts – in Chiado)

    10h00 – 12h00 Joint Strategy Meeting: Campaigns and common struggles

    12h00 – 13h00 Final Plenary and Final Joint Statement

    Afternoon: Demonstration

     

     

     

    Venue Address:

     

    Faculdade de Belas Artes

     

    Largo da Academia Nacional de Belas Artes – Lisbon

     

    By underground, please take the blue or red line and exit in Baixa-Chiado


     

     

    PRESS AND contacts

     

     

    Nuno Mendes: +351 962501351 / africa.europa.alternativas.press@gmail.com (Portuguese, English and Spanish)

     

    Amélie Canonne (AITEC) : +33 (0) 143712222 / amelie.aitec@reseau-ipam.org (French and English)

     

    Alexandra Strickner (IATP/Attac-Austria): +43 13174014/ a.strickner@iatp.org (English, German, French and Italian)

     

    More Info: http:// africa-europa-alternativas.blogspot.com

    EU Trade “Deals” for Africa under Attack

    Oxfam Warns Continent About EU Trade Deal
    Business Day (Johannesburg)

    NEWS
    28 November 2007
    Posted to the web 28 November 2007

    By John Kaninda
    Johannesburg
    LONDON-based charity Oxfam has warned African countries not to rush into signing the European Union (EU) Economic Partnership Agreements (EPAs) in their present form as this would result in opening up the continent’s markets to EU trade “too fast and too deeply”.

    The institution feared that the move would at the same time expose vulnerable African farmers and fledgling industries to unfair — often subsidised — competition from Europe, said Luis Morago, head of Oxfam’s EU Advocacy Office.

    The call was made after Botswana, Lesotho, Mozambique and Swaziland on Friday initialed a free trade agreement with Europe. SA and Namibia are yet to sign the agreement.

    Morago fears that in the next few weeks other regions could give into pressure from the European Commission to sign deals before the end of the year .

    “Countries are being placed under enormous pressure to sign deals before the end of the year that could cause significant damage to their economic prospects.”

    Morago said: “They are being asked to trade off the interests of their exporters — who will see a hike in tariffs from January 1 if no deals are signed — against the livelihoods of some of their most vulnerable subsistence farmers and industries.”

    He said the latter would face competition from Europe if the tariffs were taken down.

    “It suits the commission to spread the impression that regions are falling into line and others should do so too.

    “But we would urge developing countries to take heed of the range of voices raised against these deals — from the World Bank to trade lawyers to civil society and trade unions — and resist the pressure .”

    If African countries remove the majority of tariffs on imports, they will face massive losses of government revenue, potentially jeopardising spending on health and education, Oxfam said.

    The body also believed that the negotiations were undermining critical regional integration processes. The EU Commission has said that it was obliged to finalise free trade deals by next month according to the World Trade Organisation (WTO) rules.

    However, Oxfam has argued that the existing preference scheme, known as GSP+, could be extended to ACP countries to guarantee continued access to EU markets in the absence of a new deals, or the waiver granted by the WTO could be extended.

    GSP+ is a new single scheme that covers — for the period 2006-08 — approximately 7200 products that can enter the EU duty free from vulnerable countries. However, these are reserved for countries whose governing principles accept the main international conventions on social issues, human rights, environmental protection and good governance.

    The deal initialed between southern Africa on Friday covered trade in goods only.

    It lacked a lot of significant information, including how many tariff lines would have to be cut, by how much and the percentage of trade that could be exempt . The full offers are due to be exchanged on December 6 and the deal will need to be signed by ministers and then ratified before it is final.

    Last week, there were suggestions that East Africa had signed a deal. This turned out to be untrue but countries are under a lot of pressure to agree to sign before the end of the year to protect their existing export business .

    What is Expected on EU-Africa Summit (Opinion)

    Need to Face Facts On EU-Africa Summit

    Financial Gazette (Harare)
    COLUMN
    29 November 2007
    Posted to the web 29 November 2007

    By Mavis Makuni
    Harare
    THE Africa File instalment in the November 15-21 issue of The Financial Gazette elicited a response from Herald columnist, Godwills Masimirembwa, who seemed to have missed the point I was making when I said British prime minister Gordon Brown could be vindicated if Zimbabwe carried out its threat to cause a “showdown” when the European Union-Africa Summit is held in Lisbon in just over a week’s time.

    This, however, did not surprise me as the columnist’s penchant for classifying ideas into pre-determined categories extended even to my person. In his lengthy article, he referred to me no less than three times as “my sister, Mavis” or “Mavis, my sister.” He, however made sure to cite himself as “this writer” and his Herald colleague simply as Caesar Zvayi, without resorting to any indulgent terms to imply a superior-subordinate situation.

    In a patriarchal society with a political culture of intolerance for divergent views, such condescending references are repugnant and are a barrier to objective communication and debate. I therefore, hereby give notice to Masimirembwa that I express views in my columns as your equal, as a Zimbabwean with as much right as yourself to comment on events in my country. In doing so, I do not defer to you on the basis of gender or any other reason and you should not patronise me as your “sister” to be preached to or talked down to. With that clearing of the air out of the way, let me now return to the main issue.

    The diplomatic row over whether or not Zimbabwe should be invited to the summit in Portugal erupted after Brown had threatened to boycott the event because he believed the presence of Zimbabwe’s head of state, President Robert Mugabe, would turn the meeting into a media circus. My observation that this could indeed happen was made after a story had been published in the official press quoting government officials threatening that there would be a repeat of the public display witnessed at the Earth Summit in South Africa in 2002 when the Zimbabwean head of state blasted Tony Blair in particular and the West in general for meddling in the affairs of African countries.

    Masimirembwa took this observation to mean that I had advocated that Zimbabwe should be “put on trial”, which I deny categorically.

    Yes, I argued, and still argue that if Zimbabwe has nothing to hide, there should be no trepidation about explaining its position convincingly without any grandstanding, with respect to the accusations of repressive governance and human rights abuses consistently levelled against it. It is a deliberate misinterpretation, in my opinion, to say that any country about which issues are raised at international gatherings at which it is an equal partner is on trial.

    Masimirembwa says: “Who will ask questions about Zimbabwe’s human rights record, about governance issues in Zimbabwe” in the same breath as he rails against the “illegal sanctions” imposed on the country’s leadership by the selfsame EU. Does he want readers to believe he has forgotten the reasons the EU and the United States have advanced for resorting to the travel bans and other restrictions imposed on those on the targeted sanctions list?

    My argument is that it does not make sense to make all the noise that has been made about regime change and illegal sanctions at home and then recoil at the prospect of presenting the crafters and imposers of these measures with convincing facts to show why they are wrong in maintaining and renewing the embargoes.

    The Herald columnist knows as everyone does that the ruling party has made the lifting of sanctions one of the conditions for its participation in the talks between it and the Movement for Democratic Change (MDC), which are being mediated by South Africa’s President Thabo Mbeki. ZANU PF has insisted that the MDC should call for the lifting of sanctions although the opposition is not the government of the day. It, however, would presumably have to appeal to the very same EU that is hosting the Lisbon summit.

    The apparent unwillingness of the government to fight its own battles when the need or opportunity arises, gives the unfortunate impression that it would prefer to use the MDC as a “shield” instead. If the government is sincere in claiming that it wants sanctions lifted because they are hurting the ordinary person, it should be prepared to prove once and for all that it is falsely being accused of the abuses the EU and its allies have cited for imposing the bans. These blocs have spelt out the improvements they want to see before lifting the targeted sanctions. These improvements will not benefit the EU and its allies but the people of Zimbabwe.

    It has to be said that when you declare a war as Zimbabwe says it has done against the West, it is unrealistic to insist that you will fight it on your own terms because you are bound to encounter all types of terrain. Those you are supposed to be fighting will respond, justifiably or not, as they deem fit. It is therefore important to know when to hold fire, retreat or advance. Unless a war is waged purely for its own sake, without regard to national interests, I submit it is neither astute nor practical to have one stock answer such as sovereignty, to fit all eventualities. Solutions to problems should be designed to fit specific situations.

    Masimirembwa paid tribute to President Mugabe for articulating African causes on the international arena. He will agree that doing this entails questioning and denouncing the policies and actions of other countries and their leaders. The President would not be able to make speeches such as the one at the Earth Summit and those he delivers at the United Nations if regular targets of his attacks like United States President George Bush and Tony Blair’s successor Gordon Brown complained that such scrutiny meant their countries were being put on trial.

    EPAs Under Fire From European Parliamentarians

    EPAs Under Fire From European Parliamentarians
    Inter Press Service (Johannesburg)

    NEWS
    30 November 2007
    Posted to the web 30 November 2007

    By David Cronin
    Brussels
    No fanfare was made in Brussels in the past week over European Union officials’ breakthrough in the trade talks on economic partnership agreements (EPAs) with almost 80 African, Caribbean and Pacific (ACP) countries.

    For, while interim deals have been reached with nine countries, doubts persist over whether a full range of accords can be secured before a December 31 deadline set by the European Union (EU).

    Five East African countries – Kenya, Uganda, Rwanda, Burundi and Tanzania – signed an agreement with the EU on November 27. A few days earlier, the Southern African states of Botswana, Lesotho, Swaziland and Mozambique gave their assent to a similar deal.

    The EU’s executive, the European Commission, claims that its offer in the EPA negotiations is the most generous ever proposed as part of trade talks. The ACP, it says, would be allowed to sell their goods free of duties or quotas to the EU from next year. Sugar and rice would be the only exceptions.

    This has done little to assuage the concerns of anti-poverty activists, who point out that any gains from greater exports to the EU could be eclipsed by the damage done by the largely reciprocal market openings that ACP countries would have to undertake.

    These would allow subsidised European food products, with which local producers would be in no position to compete, to effectively swamp the ACP markets. Under the interim deals with East Africa, for example, taxes on two-thirds of imports from the EU would be eliminated.

    Although the Commission has given assurances that the EPAs will be a tool for promoting regional integration in Africa, its critics argue that its tactics could be undermining that objective.

    The interim agreements with Southern Africa have been reached, without South Africa or Namibia yet on board, although Angola has signalled it could soon join an agreement.

    And in negotiations with a West African regional grouping, the EU side has indicated it may sign a separate deal with Ivory Coast without its neighbours. Both the West and Central African groupings in the talks have not yet presented the Commission with formal offers on questions of market access.

    Glenys Kinnock, a veteran member of the European Parliament (MEP), said she had “never encountered the kind of pressure that the ACP has faced during these negotiations”.

    Accusing the Commission of “intransigence and lack of flexibility”, she argued that it is “threatening regional integration and causing regional tensions”.

    Ján Figel, a member of the European Commission, said this week that EU officials have taken “a pragmatic and flexible approach”. Nonetheless, Figel, who was deputising for Trade Commissioner Peter Mandelson, warned ACP governments that they risk having considerably higher taxes imposed on their exports to the EU if they do not conclude EPAs by the end of the year.

    But Marc Maes, a trade specialist with Belgian anti-poverty group 11.11.11, said that the Commission had hardened its position during the negotiations.

    Whereas it had indicated that ACP countries would be allowed a 25-year transition period for opening up their markets to most European imports, this period has been shortened to a maximum of 15 years in many cases. “The Commission has been moving the goalposts,” he told IPS.

    He noted that EU governments earlier this month issued a call to the Commission to display flexibility in the talks. “The Commission has not offered maximum flexibility,” he said. “It has been constantly raising the stakes.”

    The international non-governmental organisation Oxfam’s Luis Morago said: “The way these negotiations have been conducted so far is inimical to development.

    “Countries that are massively dependent on the EU as a market for their goods and as a major aid donor are being told they must either sign deals now that involve drastic liberalisation or face an increase in tariffs from January next year that would devastate their export industries. This is not fair negotiation but brinkmanship.”

    All of the deals signed this year are expected to be limited to trade in goods. Negotiations aimed at expanding the EPAs to cover investment, competition, services, public procurement and intellectual property could continue into 2008.

    Although many ACP countries have been opposed to having negotiations that cover such an extensive range of issues, the Commission only agreed in October to restrict discussions for the remainder of this year to trade in goods.

    In an exchange of views with Figel, the German Green MEP Frithjof Schmidt said: “It is astonishing to hear you talking about the negotiations as though everything has gone well for the Commission.

    “In truth, the negotiations have been overburdened by the Commission. The ‘goods only’ announcement was a confession of the Commission’s failings and it was too little, too late. Your strategy has been a mistake,” Schmidt said.

    French Socialist Harlem Désir argued that the EU threat of increasing tariffs on ACP goods in the absence of agreements is a “type of blackmail”.

    Helmuth Markov, a German left-wing MEP, branded the EU’s tactics as “a catastrophe”, arguing that the overriding concern of officials was to prise open ACP markets to Western businesses.

    “Partnership means respect,” he said. “When we Europeans can still have an attitude of ‘take it or leave it’, it has nothing to do with partnership.”

    Globalization on Trail for Failure to Share With Lesser Developed Nations

    Globalisation in the Dock
    Inter Press Service (Johannesburg)

    NEWS
    28 November 2007
    Posted to the web 28 November 2007

    By Francis Kokutse and Rosalia Omungo
    Dar es Salaam
    The latest conference to be held under the Helsinki Process opened in Tanzania’s commercial hub, Dar es Salaam, Tuesday, with calls for the gains of globalisation to be shared fairly amongst nations.

    “There is a widespread sense that this framework is neither complete nor balanced,” said Tanzanian Foreign Affairs Minister Bernard Membe. “Many countries lack the basic economic, technological and institutional capacities needed to benefit from globalisation, and have limited bargaining power to fully participate in global markets.”

    The Helsinki Process on Globalisation and Democracy is a joint initiative by Finland and Tanzania that got underway in 2003, to give representatives of the North and South “a new kind of equal forum…to come together to discuss common issues of concern”, according to the Helsinki website. This came against the realisation that the problems posed by globalisation require broad-based solutions.

    The first phase of the process (2003-2005) focused, in part, on developing extensive co-operation to address global problems, and concluded with a conference in the Finnish capital, Helsinki. The second leg of the initiative (2005-2007) has aimed at pushing for certain proposals made during the first chapter to be implemented; its objectives also included continuing with broad consultation on the difficulties facing the international community.

    This week’s conference (Nov. 27-29), being held under the theme ‘Inclusive Governance — Bridging Global Divides’, marks the end of the second phase of the Helsinki Process. It will review what has been achieved over the past two years.

    Membe said global institutions such as the International Monetary Fund, the World Bank and the World Trade Organisation had to become more democratic and inclusive.

    In addition, he highlighted the need for inequalities of market access to be dealt with, and noted that there was an urgent need to give social concerns equal weight with economic factors in efforts to free trade: “Trade liberalisation requires proper institutions for adjustment and social security — capital flows will dry up in times of social unrest — and international investment calls for rapid educational advancement of the labour force.”

    Delegates at the opening ceremony were also addressed by Finnish Deputy Foreign Affairs Minister Teija Tiilikainen, who echoed the call for improved global governance. This was needed, she said, to deal with “contemporary challenges related, for example, to…changes taking place in global security and the environment…”.

    Tiilikainen said the nature of globalisation required “all international actors (to) join their efforts”, and that since the launch of the Helsinki Process in 2003, “the need for dialogue among stakeholders from different regions (had) only become clearer”.

    “Bridging the divides between different states, cultures and actors seems to be more topical now than it ever has been and therefore it is important that we consider how the experience of the Helsinki Process could support us in this endeavour.”

    Tiilikainen said the Helsinki Process had been able to provide a “neutral forum for dialogue” where no single group felt “disadvantaged or prejudiced”.

    “This may not seem as a great achievement in and of itself, but we must remember that it is very difficult to build trust and new kinds of partnerships in an environment where one group or another feels underhanded.”

    The opening events of the Dar es Salaam meeting also included a panel discussion on how the experiences of the Helsinki Process could help overcome global divisions.

    Present at the discussion was Anna Tibaijuka, U.N. under-secretary-general and executive director of the United Nations Human Settlements Programme (UN-HABITAT), who said that inadequate local government was posing severe challenges to development in an era of rapid urbanisation.

    “We need to have complete devolution of power, a genuine one where we empower people with their locally elected leaders to decide their development,” she told IPS.

    “When people are moving into cities, we have to find a way for their voice to be heard in a structured manner.”

    For his part, Solomon Gichira — programmes officer at the Nairobi-based All African Conference of Churches — believes people at grass roots can come up with their own solutions for problems, and that little faith should be placed in officials.

    “Government does not act. Once you get to power you forget the people’s problems, from the potholes in the roads to bigger problems. If we go to the people, we will move; if not, we will go back to square one.”

    According to UN-HABITAT, 2007 marked a watershed in urbanisation: it was the first year in which the number of people living in cities equaled that living in rural areas. Urban growth is highest in sub-Saharan Africa.

    By 2030, some five billion people are expected to be city dwellers, against about three billion in the countryside.

    However, cities are ill-equipped to deal with this influx. Already, about a billion people — one in six persons — live in slums. In sub-Saharan Africa, more than 72 percent of urban dwellers live in informal settlements.

    African States Headed for Faster Growth

    States Headed for Faster Growth
    The East African (Nairobi)

    NEWS
    26 November 2007
    Posted to the web 26 November 2007

    By Francis Ayieko
    Nairobi
    Many African economies appear to have turned the corner and have embarked on the path of faster and steadier economic growth, says a new World Bank study.

    According to the Africa Development Indicators 2007 study, released in South Africa on November 14, the solid economic performances across Africa between 1995 and 2005 contrast sharply with the economic collapse of the 1975-1985 decade and the stagnation experienced between 1985 and 1995.

    The report indicates that sustained and equitable economic growth can be achieved by accelerating productivity and increasing private investment. Accomplishing this, the report notes, will require improving the business climate and infrastructure in African countries, as well as spurring innovation and building institutional capacity.

    “Over the past decade, Africa has recorded an average growth rate of 5.4 per cent, which is at par with the rest of the world. The ability to support, sustain and in fact diversify the sources of these growth indicators would be critical not only to Africa’s capacity to meet the Millennium Development Goals but also to becoming an exciting investment destination for global capital,” said Obiageli Ezekwesili, the World Bank vice-president for Africa.

    In 2005 (the latest year for which the report posts data), the performance varied substantially across countries, from 2.2 per cent in Zimbabwe to 30.8 per cent in Equatorial Guinea, with nine countries posting growth rates near or above the seven per cent threshold needed for sustained poverty reduction.

    African countries fall into three broad categories along this continuum. The first group of seven countries comprises the continent’s major oil exporting economies, home to 27.7 per cent of its population.

    The second grouping of 18 countries – 35.6 per cent of Africa’s population – show diversified, sustained growth of at least four per cent, and the third grouping of 17 countries – home to 36.7 per cent of Africa’s population – are characterised by their resource-poor nature. They are conflict-prone, afflicted or emerging from conflicts, or just trapped in slow growth of less than four per cent.

    Greater integration with the global economy especially through export trade, appears as a common characteristic of all African countries that have recorded sustained growth.

    This largely explains the aggregate efficiency levels and investment volumes, comparable to India and Vietnam recorded by these countries.

    Ms Ezekwesili said overall investments in Africa increased from 16.8 per cent of gross domestic product to 19.5 per cent of gross domestic product between 2000 and 2006.

    In such countries, the report notes, policies have become better, thanks to the reforms of the past decade, inflation, budget deficits, exchange rates and more manageable foreign debt repayments.

    African economies, it says, are also more open to trade and private enterprise; governance is on the mend and more is being done to fight corruption. These economic fundamentals have helped spur growth, but equally important, to avoid the growth collapses that took place between 1975 and 1995.

    The study warns that growth in Africa is more volatile than in any other region. That volatility, it says, has dampened expectations and investments.

    “The report found that avoiding sharp declines in GDP growth was critical to Africa’s economic recovery. Indeed, it was crucial for the poor, who suffered greatly during the declines,” explained John Page, the World Bank’s chief economist for Africa. “Avoiding growth collapses is key to accelerating progress towards the MDGs in Africa.”

    The report identifies stronger and more diverse export growth as key to sustaining growth and reducing volatility. It laments the higher indirect costs of exporting in Africa – 18 per cent to 35 per cent of total costs – compared with indirect costs in China, which are a mere eight per cent of total costs.

    As a result, while efficient African enterprises can compete with Indian and Chinese firms in terms of factory floor costs, they become less competitive due to higher indirect business costs, including infrastructure, which the study identifies as an “important emerging constraint to future growth.”

    Sub-Saharan Africa lags at least 20 percentage points behind the average for poor developing countries on almost all major infrastructure measures.

    This has pushed up production costs, a critical impediment for investors.

    Africa’s unmet infrastructure needs are estimated to total around $22 billion a year or five per cent of GDP, plus another $17 billion for operations and maintenance.

    Despite the negative impact of poor infrastructure, 38 African countries have increased their exports. Overall, the continent’s exports rose in value from $182 billion in 2004 to $230 billion in 2005.

    Exports were fuelled by growing pockets of non-traditional exports such as clothing from Lesotho, Madagascar and Mauritius; successful connections between farmers and buyers such as with the initiative that boosted Rwanda’s coffee exports to the United States by 166 per cent in 2005; and the aggressive expansion of successful export goods such as cut flowers, whose exports from Kenya more than doubled between 2000 and 2005, making cut flowers the country’s second biggest export earner after tea.

    Kenya is still among the poorest economic performers in sub-Saharan Africa, despite growth rates consistently exceeding three per cent since 2003, a new World Bank report says.

    However, both Uganda and Tanzania are ranked among the top performers, with GDP growth rates averaging four per cent a year and more between 1995 and 2005.

    According to Africa Development Indicators, Kenya is ranked among the “slow-growth economies” in Africa, characterised by either being resource-poor, conflict-prone or “trapped in slow growth of less than four per cent.”

    The World Bank says that African economies need to achieve growth rates of around six to 7.5 per cent for sustained poverty reduction and only Uganda (on 6.1 per cent) achieved these growth rates over the 10 year period 1995-2005. Tanzania’s figure was 5.3 per cent.

    Kenya’s average growth rate over the same period was 2.9 per cent, making it among the bottom dozen poorest performing economies over this period.

    Additional reporting by Paul Redfern

    Kufuor Gives Recipe for Africa’s Economic Growth

    Kufuor Gives Recipe for Region’s Economic Growth
    Vanguard (Lagos)

    NEWS
    28 November 2007
    Posted to the web 28 November 2007

    By Victor Ahiuma-Young
    Lagos
    GHANIAN President, Mr. John Kufuor, yesterday in Accra, Ghana, said the process towards economic emancipation of the African continent was getting tougher by the day in the face of globalisation.

    Mr. Kufuor noted that the continent has to forge strategic partnership with others outside it to benefit from technological transfer, attract investments for projects and enhance accessibility to global market.

    At the formal emergence of a new trade union organisation in the continent, International Trade Union Confederation AFrican Regional Organisation (ITUC-Africa), Mr. Kufuor pointed out that the daunting task of economic liberation of the continent could be achieved with government, employers and labour working at cross purposes but through a winning partnership amongst these stakeholders.

    Declaring the congress of the new ITUC-Africa open, the Ghanian President told delegates across the African continent and beyond that the greater challenge facing the continent’s economic emancipation was information technology and declared that African must be in the mainstream of ICT which is moving at a fast pace to take full advantage of globalisation.

    EU Gets NO DEAL On EPAs in Kigali Round

    No Deal On EPAs in Kigali Round
    The Monitor (Kampala)

    NEWS
    27 November 2007
    Posted to the web 26 November 2007

    By Robert Mukombozi
    Kigali
    THE 14th Kigali round of the African, Caribbean and Pacific and European Union members concluded with nothing tangible over the controversial issue of Economic Partnership Agreements.

    After nine days of intensive negotiations, ACP countries maintained that they needed more time to negotiate a deal on the ACP-EU EPAs for which a World Trade Organisation waiver expires at the end of 2007.

    The EU has been asked to urgently consider shifting deadlines.

    “We urge the European commission to acknowledge that more time is needed for ACP states to assess the implications of the agreements proposed, given that negotiations have only taken place in earnest for the past to years,” reads the Kigali declaration adopted by the ACP-EU Joint Parliamentary Assembly.

    The ACP states also declared on November 22 that they have been put under pressure by the European Commission to sign an EPA and that this was against the spirit of the two blocks partnership.

    HITCH: The Manager of Legal and Bonds Customs Department, Mr Nicholas Kanabahita (R), and Comesa Senior Insurance Expert Berhane Giday (L) at a recent ceremony. File photo

    Actually they have made their position clear on the matter that agreements reached whether interim arrangements of full EPAs, must ensure that no country is left worse off after the expiry of the negotiation deadline.

    While the ACP group rallies for the future consideration of the deal, the EU says its signing is timely.

    Amidst the protests, Ms Glenys Kinnock, the co-president of the ACP-EU Joint Parliamentary Assembly said a new deal was possible.

    Ms Kinnock says that the attempts to frame such agreements had proven difficult, largely because the commission negotiators had approached the talks on EPAs as if they were conventional free trade negotiations focused on market opening, rather than as tools for development.

    However, the ACP declined to bow to the EU’s “coated plea”.

    In fact, the Commission threatened to cut aid extended to these “notorious states”.

    The EC Commissioner for development and humanitarian aid, Louis Michel told participants at the closure that they needed to be more careful because they are ready to invest all there is to move the EPA.

    He also said that Europe would concentrate on “promoting sustainable development” using “substantial means to accompany the EPA process”.

    In this regard, Mr Michel indirectly implied that they would finance under the European Development Fund (EDF) package to influence the ACP states to comply.

    The EU has committed funds amounting to over two billion Euros as aid for developing countries would be tailored to governance programmes and economic reforms in their interest.

    But the ACP was not moved.

    The member states ignored the EU threats and unanimously agreed to suspend further negotiations on the matter of signing the EPA deal, probably, until when EU is ready to listen to their demands.

    This declaration follows the Cape Town agreement of 2002, adopted at the start of the EPA negotiating process.

    Meanwhile some developing countries have warned at this Kigali round that they will never sign EPAs in their current form. The official position of most countries, however, is-that development -friendly EPA- is the objective and so far there has been no real discussion about alternatives to EPAs. It was a job abandoned for NGOs among other trade activists on the sidelines.

    EU Trade Deal to Remove Visa Fees… Good Deal or Red Herring??

    EU Trade Deal to Remove Visa Fees
    East African Business Week (Kampala)

    NEWS
    26 November 2007
    Posted to the web 26 November 2007

    By Jude Etyang And Phillip Nabyama
    Kampala/London
    Visa fees for travellers to European countries could be dropped starting January 2008, in what looks like a sweetner in the talks for Economic Partnership Agreement (EPA) between East Southern Africa (ESA) and the European Commission (EC).

    The provision for eliminating consular fees also applies to both parties hence ESA countries won’t charge their EU visitors.

    Visa fees fall under Aticle 10 which defines Customs Duty as any duty or charge levied in connection with the importation of goods. East African Business Week has seen a copy of the interim agreement which will govern trade relations between the two blocks starting December 31, 2007 till December 31, 2008.

    The parties also commit themselves to have a comprehensive EPA by December 31, 2008.

    Imports of products originating from the ESA States shall be allowed in the European Union free of customs duties and charges having the equivalent effect, except for sugar, according to Article 11 of the interim agreement.

    The “Interim Agreement Establishing A Framework for Economic Partnership Agreement,” was due for signing at the end of last week by ministers of the member countries.

    It states the key objective as; “To establish the framework, scope and principles for further negotiation on trade in goods including, rules of origin, trade defence instruments, custom cooperation and trade facilitation, sanitary and phytosanitary measures, technical barriers to trade, agriculture, economic and development cooperation on the basis of the proposals already submitted.”

    The provisional pact is a stop-gap measure after the two parties failed to sign the EPAs which are supposed to replace the Lome agreement.

    The Lome agreement which gave ACP countries tarrif-free-and-quota-free access to the European market expires in December 31, 2007 because it doesn’t fit into WTO fair trade rules.

    The ACP countries are dragging their feet to sign the contorversial EPAs in which the EU is seeking full liberalisation of their markets.

    Trade activists have warned that giving the European goods full access to LDCs will kill local industries.

    The ESA also agree to reduce tarrifs on EU goods and to provide a time-frame for the liberalisation process of their markets as soon as the agreement comes into force.

    The ESA report showed that Kenya, Uganda, Rwanda and Burundi signed the agreement except Tanzania.

    Article Five of the interim agreement on Trade Regime for Goods states that there will be a gradual liberalisation of the goods market of ESA countries.

    “The complete liberalisation of the (European) Community’s market for ESA exports and the progressive and gradual liberalisation of goods market in ESA in accordance with the modalities established in this Agreement,” the article states.

    For the duration of this Agreement, the Parties also agree not institute any new duties or taxes in connection with the exportation of goods to the other Party, The agreement also removes all non-tarrif measures.

    “…all import or export prohibitions or restrictions in trade between the Parties, other than customs duties and taxes, and fees and other charges provided for under Article 10, whether made effective through quotas, import or export licenses or other measures, shall be eliminated upon the entry into force of this Agreement.

    No new such measures shall be introduced,” Article 17 reads partly.

    An EPA Committee comprising representatives of the member states shall be responsible for the administration of all matters under this Agreement and for the fulfilment of any of the tasks mentioned in this Agreement.

    Africa Questions WTO and Meaning of FREE Trade With EU and EPA’s

    There is No Need for the Continent to Sign EPA
    The Monitor (Kampala)

    COLUMN
    26 November 2007
    Posted to the web 26 November 2007

    By Teddy Sseezi Cheeye

    Europe is pressurising its former colonies to sign an enslaving trade agreement known as EPA. In my view African countries especially poor ones like Uganda should not be rushed into signing the so-called EPA agreement.

    To start with the WTO has ruled existing preferential trade arrangements between poor countries and developed countries illegal. In other words, both WTO and multinational companies in Europe find the present preferential trade arrangement discriminatory.

    The underlying economic principle is that by removing trade barriers like preferential trade arrangements, both human and material resources should be able to maximise their comparative advantages and be able to move freely across the global, leading to Adam Smith’s theory of specialisation, efficiency and affordability of both production of goods and provision of services which is good for everyone. There are three fundamental economic issues, which must be resolved before rushing into signing the EPA:

    Global Competition

    First of all, I agree with President Yoweri Museveni’s position, that there is nothing wrong to subject every one to the economic laws of competition. In other words, if both the WTO and multinational companies in Europe have decided that preferential trade arrangement with former colonies hinders global competition and is therefore considered illegal, fair enough. Let the preferential trade arrangements be terminated.

    But this does not necessarily mean that former colonies should be coerced into signing new trade arrangements since by implication the new trade arrangements (EPA) will not be any better than the previous preferential trade arrangements.

    It is vexing for Europe and WTO to rule preferential trade arrangements illegal and at the same time agitate for another form of neocolonial trade binding agreements, which after all have not been publicly disclosed and discussed in detail up to local community levels in order to get the much needed consensus.

    Liberalisation

    The second intriguing economic issue which needs to be resolved is liberalisation, the platform for free trade. The underlying principle as stated above is that with free movement of both human and material resources, enterprising individuals should be able to deploy both resources any where in the world, unhindered, which would lead to specialisation, efficiency and affordability.

    In other words Europe is correctly saying that it has comparative advantage in production of goods and provision of services, in which it has specialised, in which it is efficient and which are affordable.

    However there is an omitted case that must also be urged in the same breath. African countries too have economic comparative advantages within the global framework of free trade. While Europe giant companies like Nestle may want to sell food products in Africa and at the same time access raw milk and coffee, African entrepreneurs too want to sell their products and offer their services to Europe as well. But in order to carry out this free global trade, Africans too must be free to enter Europe as and when they want, just like the way Europeans enter African countries freely.

    We cannot have a tilted free-trade arrangements where Europeans enjoy global free movements to any country in the world while Africans are restricted access to Europe, where they are supposed to go and search for markets or offer services on the basis of comparative advantage of affordability.

    Affordability

    One of Africa’s comparative advantages is in the area of offering cheep labour in developed countries, which has led to the emergence of remittances as the leading sources of finances to developed countries. For example while according to World Bank (as cited by President Museveni) remittances to developing countries last year amounted to $120 billion financial aid to developing countries was only $13 billion in the same period.

    Similarly while last year IMF and WB gave peanuts to East Africa, (less than $500 million), remittances to EA hit an astronomical $37b. In other words, while Europe wants to take advantage of its comparative advantage, it is silent on granting easy access to Africans to go to Europe and offer cheap labour, which is our comparative advantage. We cannot have free trade without free trading men and women.

    In my view the above and many other issues need to be resolved before we enter into disadvantageous agreements like the ones done during colonial period..

    The writer is the Director of Economic Monitoring in the President’s Office

    EU – African EPA Trade Negotiations Extended

    Citizens Need a Fair Deal in EU Trade Treaty
    The New Times (Kigali)

    NEWS
    29 November 2007
    Posted to the web 29 November 2007
    Kigali
    The East African Community (EAC) clinched a deal with the European Union (EU) which allows for a continuation of negotiations on trade partnerships between the blocs.

    This gesture comes just weeks after member states within the Africa Caribbean and Pacific (ACP) grouping met here in Kigali and asked for more time to study the new trade deals known as the Economic Partnership Agreements (EPAs).

    Unfortunately member states within the ACP have only a month to decide whether to adopt the EPAs or the Europeans would impose higher tariffs as a consequence.

    There is a feeling among many African negotiators that Europe is using the excuse of the World Trade Organisation (WTO) rules to rush the negotiations.

    While we appreciate the urgency with which EAC handled the matter by signing a provisional deal with the EU on Tuesday, our leaders in the regional community should not hurry to bow to the mounting pressure.

    An analysis done on the potential impact of the EPAs prepared by the United Nations Economic Commission for Africa (UNECA) shows that the proposed opening up of 80 per cent of trade of the EAC with Europe, will result in loss of tariff revenue of up to $130m per year.

    Rwanda and a number of other African countries have already introduced 100 percent customs tariff waivers on commodities originating from certain regional communities. Already billions of Francs are being lost through this process although there are certainly significant benefits that accrue from regional communities.

    Now with EPAs, it means that the already struggling African producers will have to compete directly with their European counterparts who hitherto enjoy subsidies.

    Any hurried commitment by developing nations would subsequently see our economies undergoing significant dislocations with regional trade losing ground at the expense of European imports.

    It is equally important to note that Africa’s exports to Europe are nowhere close to match what Europeans export to Africa.

    That is why leaders of developing countries shouldn’t scatter their efforts by splitting themselves into geographical locations, but rather devise a common approach in their negotiations with the EU.

    As our leaders travel to Lisbon next month for the EU-Africa Summit, they should be able to advocate for a poor African producer whose efforts could be shattered in the face of stiff unfair competition.

    China Defends Its Presence in Africa

    China Defends Its Presence in Continent
    The New Times (Kigali)

    NEWS
    4 November 2007
    Posted to the web 4 November 2007

    By Magnus K Mazimpaka And Ignatius Ssuuna
    Kigali
    A Chinese Diplomat has defended his country’s increasing presence in Africa. The Chinese Acting Ambassador to Rwanda, Wang Xinm.Li said China is not motivated by the continent’s resources but sincere support.”Our friends will continue making noise but this will not stop us from supporting African states and improving people’s standards of living,” he said.

    He insisted no one will stop China’s engagement in Africa’s economic and political fields. “You cannot expect no noise from other causes of the world,” Wang Xinm Li said but added that, “Nobody will silence us.”

    The US and European governments have tried to link the 2008 Beijing Olympics with Chinese policy in Darfur, saying they run counter to the Olympic spirit.

    Mid this year, reports said, a group of 108 members of the US House of Representatives sent a letter to the Chinese government warning that the Beijing Olympics could be endangered if China did not revise its foreign police, citing Sudan as a case in point.

    Some American entertainment figures have raised threat of an Olympic boycott unless China moves more forcefully to use its influence in Sudan with which it has profound economic and military ties.

    Hollywood actress and activist Mia Farrow, who was in Rwanda recently, said China, Sudan’s main oil customer and arms supplier has a lot of influence in blocking the deployment of a United Nations and African Union peacekeeping force.

    “China’s responsibility to play a constructive role in ending this Genocide extends beyond their relationship as Sudan’s primary economic partner and diplomatic protector,” Mia Farrow was quoted as saying.

    “Mia Farrow was here (Rwanda) doing a lot of propaganda against China but she should go to Iraq and do the same,” Wang Xinm. Li told reporters on Friday.

    He added that the campaign against China is a “political motive” of other powerful states yet China enjoys a normal relation with Sudan as it has with other African countries.

    Sudanese President Omar Hassan al-Bashir has accepted the 3,500-member reinforcement team to bolster the African Union force.

    He blocked the deployment of the 20,000-strong peacekeeping force envisioned in a plan worked out by the former U.N. secretary general, Kofi Annan.

    “Since the breakout of the crisis of Darfur, China has done much in that regard and has used its influence and unique position and relations between the two countries to alleviate the crisis in Sudan,” the Chinese Diplomat said.

    He said China has diplomatic missions in all African countries except five- Burkina Faso, Swaziland, Malawi, Gambia, Sao Tome and Principe.

    This has raised concerns of other World Powers about China’s engagement in economic and political relations with Africa.

    Last year, Beijing held a Summit of the Forum on China-Africa Cooperation (FOCAC), and China pledged to offer $5 billion in preferential loans and credits, and double aid to Africa by 2009, while announcing a package of assistance, investment, trade and other key projects for public health and education in Africa.

    About 41 heads of state and senior officials of 48 African countries took part in the diplomatic event which was held under a theme “Friendship, Peace, Co-operation and Development.”

    Wang said there is a need to promote a balanced, co-ordinated and sustainable development of the global economy to enable all countries to share its benefits and realize common development and prosperity.

    Last year, China and Rwanda recorded a total trade turnover of more than US$34million.

    Rwanda exports to China have increased by more than 80% between 2004 and last year.

    Also a number of Chinese companies have started investing in Rwanda.

    A Chinese based company recently launched a subsidiary in Rwanda to provide digital Pay-TV and broadband Internet services.

    Rwanda’s Foreign Affairs Minister Charles Murigande in the recent past said China’s investment shows its commitment to strengthen cooperation between the two countries.

    China is actively involved in infrastructure construction, finance, technology and communications, education, Health and road construction in Rwanda.

    December 4, 2007

    Poorest Farmers Ignored By UK Govt.’s Overseas Agricultural Policy

    Poorest Farmers Ignored By UK Govt.’s Overseas Agricultural Policy

    Concern Worldwide UK (Dublin)
    PRESS RELEASE
    27 November 2007
    Posted to the web 27 November 2007

    The agricultural policy of the UK government’s Department for International Development’s (DFID) is ignoring the needs of the poorest farmers and prioritising economic growth over tackling hunger and improving food security, according to a report published tomorrow by Concern Worldwide.

    The report – Unheard Voices – The case for supporting marginal farmers - asserts that the failure of DFID’s agricultural policy to specifically address the needs of the poorest farmers in developing countries is particularly concerning given the fact that more than 75% of the world’s hungry and malnourished live in rural areas and depend directly or indirectly on farming for their survival.

    “Whilst marginal farmers should be at the centre of DFID’s efforts to defeat poverty and reach the Millennium Development Goals (MDG’s) they are instead being ignored in favour of farmers who produce surplus for markets and are therefore considered able to contribute to the growth of the economy” says Ruchi Tripathi, Head of Policy for Concern Worldwide and co-author of the report.

    The report reveals that the shift towards economic growth and away from pro-poor policies in agriculture by donors such as DFID has led to a decline in aid to agriculture overall and a weaker demand for assistance from developing country governments. This decline and the way in which aid to agriculture has been allocated means that poor farmers are excluded and unable to access the support they desperately need for low-cost technologies that would help them increase their food output and tackle hunger and spiralling poverty in the rural areas.

    The report provides clear examples of the way in which poor farmers, including those with whom Concern Worldwide works, have shown that with the right kind of assistance such as simple low-cost technologies, training in new farming practices and the provision of tools and seeds, they have the potential to significantly increase their output, make themselves more food secure and improve their livelihoods.” This is why donors such as DFID should take into account their specific needs when reviewing their agricultural policy instead of pursuing a ‘one size-fits all’ approach which further marginalises the poorest farmers” says Ruchi Tripathi.

    Mahlathi Moyo, Concern Partner and Chairperson of the Mongu District Farmers’ Association in Zambia adds: “Poor farmers are facing many challenges that affect their ability to grow enough to feed their families, but these challenges can be overcome. Good agricultural policies that are appropriate to specific geographical areas must be put in place, and the people responsible for developing those policies must listen to the voices of the poorest farmers to ensure that their circumstances are taken in to account”.

    The report forms part of Concern Worldwide’s campaign ‘Unheard Voices’, which calls on DFID to ensure that when reviewing its agricultural policy in 2008 that the role of poor farmers in defeating rural poverty is acknowledged and that their needs are prioritised instead of focusing only on farmers that already produce for markets.

    Read the full report.

    Concern Worldwide is an international, non-governmental, humanitarian organisation dedicated to the reduction of suffering and working towards the elimination of extreme poverty in the worlds poorest countries.

    China to Help Africa Breed Fish

    China to Help Continent Breed Fish

    The New Times (Kigali)
    NEWS
    14 November 2007
    Posted to the web 14 November 2007

    By Kabona Esiara And Agencies
    Kigali
    China has promised to work with the New Partnership for Africa’s Development (Nepad) to develop the fishing industry in Africa.

    Through the Chinese Academy of Fisheries Sciences (CAFS) and the WorldFish Centre, Chinese agreed to work on a scientific research programme on aquaculture-fish growing.

    They particularly focus on fish breeding and to co-host future Forums on Fisheries Science and Technology, according to a Nepad Dialogue, a monthly online publication.

    The development comes at a time when fresh water fish stocks in African are dwindling but the local and international markets for the fish are steadily growing.

    To mitigate against the shortages, Rwanda government is encouraging the private sector to invests in fish farming. The country mostly depends on fish supplies from Uganda, Burundi and Tanzania to feed her population.

    According to The Nepad Dialogue, an online publication, the agreement was announced at a luncheon hosted for the Nepad and WorldFish Centre delegations by the president of CAFS, Prof. Zhang Hecheng.

    This was during the 2007 Chinese Forum for Fisheries Science and Technology held in Qingdao, the capital city of Shandong province.

    Nepad was represented by Dr. Sloans Chimatiro, Nepad fisheries advisor, and WorldFish by Dr. Raul Ponzoni. Under the agreement, WorldFish will mobilise international scientists, particularly fisheries scientists from Africa to give them an opportunity for wider scientific exposure.

    In addition, the Chinese Academy of Fisheries Sciences, through its cooperation with the WorldFish Centre will explore opportunities to collaborate with African partners in fisheries and aquaculture research and technology development under Nepad.

    The National Fisheries Technology and Extension Centre in the Ministry of Agriculture also pledged to work with Nepad to assist African partners in the field of fisheries and aquaculture.

    The Forum was co-sponsored by Shanghai Fisheries University, WorldFish Centre, Fisheries Research Agency of Japan, National Fisheries Research and Development Institute of Korea, Ocean University of China and Institute of Oceanography and Yellow Sea Fisheries Research Institute of the Chinese Academy of Fisheries Sciences.

    It is reported that during the Forum, Dr. Chimatiro presented a paper entitled “NEPAD action plan for the development of African fisheries and aquaculture: seeking new partnerships in fisheries and aquaculture science”.

    Improving China’s Image

    Improving China’s Image
    Business Daily (Nairobi)

    OPINION

    28 November 2007
    Posted to the web 28 November 2007
    By Calestous Juma

    China’s ability to respond rapidly to requests for investment in new areas such as infrastructure has emboldened many African leaders who are under pressure to meet their electoral promises.

    But such rapid responses have seen China establish its presence in many African countries and made it vulnerable to unfavourable diplomatic exposure.

    In Darfur, for example, rebels are demanding that China be excluded from peacekeeping efforts. They argue that China’s role is compromised by the fact that its oil revenues are supporting the Sudanese government.

    China needs to rethink its image in Africa so that it can be an effective player in a broader international alliance for Africa’s development. New diplomatic efforts that involve partnerships with other nations around the world would make China’s interest in Africa better. In other words, Africa’s development interests should be seen as the basis for defining China’s diplomatic policy on Africa.

    Africa’s capacity to develop and become a major player in the global economy will depend largely on the extent to which it is able to train a large section of its population in science, technology, engineering and mathematics.

    China could make significant contributions to Africa if it joined other nations around the world to help Africa build up its scientific and technical competence. Much of this is going to involve creating a new generation of technical and entrepreneurial universities.

    There is considerable disquiet over China’s economic relations with countries that have poor governance records. Most of the governance challenges are a result of weak democratic institutions as well as access to opportunities for professional training.

    China could contribute to improvements in the situation by supporting the establishment of training programmes in development management in particular and governance in general.

    In addition, China could work with African countries in expanding and in responding to their needs to move into emerging technological fields such as information technology, biotechnology and nanotechnology.

    Many of these technologies can be used to promote alternative development approaches that reduce ecological damage.

    For example, China’s experience in biotechnology could be used to promote sustainable agriculture in Africa as recommended in Freedom to Innovate: Biotechnology in Africa’s Development, the report of the High Level African Panel on Biotechnology prepared for the African Union.

    Other fields could include expanding critical infrastructure such a wireless broadband which can help to extend communications capabilities on the continent. Finally, emerging fields such as nanotechnology could be used to develop ecologically-sound products that can enable Africa to pursue sustainable development paths.

    Chinese enterprises will continue to be a visible part of the African landscape. It will be critically important for them to cultivate a good image of corporate citizenship and to work closely with local communities. If the enterprises do not adopt an outlook of good citizenship, they attract local resentment.

    The work to build a positive image must start now and China’s presence in Africa will need to go beyond the current connections with governments and more engagement with the public, including support to non-governmental development efforts.

    Many of the transactions between China and Africa are kept confidential and little is known about their terms. Promoting greater transparency and mutual learning from those arrangements will help to improve the image of Chinese businesses in Africa.

    Prof Juma teaches at Harvard University’s Kennedy School of Government

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