Capital Edition 156

PORSCHE : ABC MOTORS MISE SUR LA DISTINCTION ET L’EXCLUSIVITÉ La célèbre marque allemande Porsche, officiellement représentée à Maurice par Stuttgart Motors Co. Ltd, prend ses quartiers à Phoenix. Le Porsche Centre propose à ses visiteurs un cadre moderne et convivial à la hauteur de l’élégance qui caractérise le constructeur

Edition 156 – Mercredi 20 novembre 2013

11TH EDF

A NEW DAWN

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While Mauritius was still discussing the merits of the Budget Speech, the future of European development funding in Africa was being worked out, last week, at Ebene. High-level representatives of major regional organisations (COMESA, EAC, IGAD and IOC), under the IRCC platform, as well as SADC (as an observer), held working sessions, from 11th to 15th November, with their counterparts from the European Union (EU). On the menu : the modalities for the programming of the 11th European Development Fund (EDF).

Capital gathered their thoughts in a special issue published on Thursday 14th November 2013, which we present in this edition, in pages 7 to 26

The Mauritian economy benefits from a vision adopted by all its actors. Such is the opinion of Federico Sutti, DLA Piper’s Managing Director for Europe & Africa. The Italian lawyer, who was recently in Mauritius for the launch of the DLA Piper Africa Group, is of the opinion that the country’s strategy for attracting investment is working and that it has a reputation for being business-friendly

FEDERICO SUTTI

MANAGING DIRECTOR FOR EUROPE & AFRICA, DLA PIPER

« PROGRESS MEANS TO BE OPEN TO OUTSIDE INVESTORS » FINANCE

EXPORTATION

FINANCIAL SYSTEM CHARACTERISTICS

LA BRAMER BANK PREND PLACE AU CŒUR DE PORT-LOUIS

LES PRODUITS MAURICIENS À LA RECHERCHE D'UN “BRAND”

MAURITIUS LAGS BEHIND SINGAPORE

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ACTA PUBLICA

MERCREDI 20 NOVEMBRE 2013 CAPITAL | EDITION 156

AVENIR. La jeune Bramer Bank vise le segment africain en 2014

FINANCE

La Bramer Bank prend place au cœur de Port-Louis

En installant son quartier général à La Place d’Armes, dans un vieux bâtiment de plus de 175 ans qu’elle a fait rénover, la Bramer Bank exprime son respect du passé et marque sa confiance dans l’avenir. La jeune banque affiche également ses ambitions africaines ▼ JAMIROUDDIN YEADALLY

MODERNITÉ ET AUTHENTICITÉ

«N

ous avons souhaité contribuer à la préservation du patrimoine architectural du pays en gardant l’authenticité du bâtiment », devait souligner le Chairman de la Bramer Bank, le Professeur St. John Bates, à la soirée inaugurale, vendredi dernier. Le bâtiment tout en pierres de taille, aurait été construit par des marchands britanniques ou franco-mauriciens entre 1840 et 1870.

Le nouveau siège social de la Bramer, uu cœur du centre des affaires de la capitale, offre un cadre moderne, confortable et unique à ses clients. Mises à part les opérations traditionnelles de Retail Banking, différents bureaux ont été aussi aménagés pour recevoir des clients intéressés aux services de Private Banking. « La banque, qui veut augmenter sa présence dans le domaine du financement des opérations commerciales internationales, ambitionne de déployer ses services sur le continent africain. La Bramer Bank est en progression constante et dispose désormais d’actifs d’une valeur de Rs 14.3 milliards, soit une croissance de 31.5% par rapport à 2012. Elle développe ainsi les ressources qui lui permettront de rehausser ses activités d’International Banking en se focalisant sur l’Afrique en 2014 », devait indiquer le Chairman.

Le Chief Executive Officer, Ashraf Esmael, a fait ressortir que le nouveau bâtiment abritera aussi les services de Private Banking et de Trade Finance qui auront un rôle important à jouer dans le développement de la banque. « Il est particulièrement important pour nous d’offrir un service qui se concentre sur

De gauche a droite : Professeur St. John Bates, Chairman de Bramer Bank, Dawood Rawat, Chairman Emeritus de BA Investment, Rundheersingh Bheenick, gouverneur de la Banque de Maurice et Ashraf Esmael, Chief Executive Officer de la Bramer Bank

la qualité de chaque détail – et c’est ce que nous espérons réussir avec le nouveau siège social à la Place d’Armes », a ajouté le CEO de la banque.

ENVIRONNEMENT DYNAMIQUE Pour sa part, le gouverneur de la Banque de Maurice devait qualifier la démarche de la Bramer Bank comme étant « audacieuse », envoyant un signal fort aux grands noms du marché. « Cette branche ultramoderne emmène la compétition à un tout autre niveau. Le groupe BAI a accompli un travail louable en transformant la Bramer Bank en une solide alternative aux banques traditionnelles », devait dire Rundheersing Bheenick, procédant à l’ouverture officielle de la banque.

Il devait également ajouter « qu'au fil

des années, nous avons bâti notre infrastructure financière pour transformer le pays en un centre financier international respectable. C’est un travail lent, qui nécessite de la patience et nous oblige à rester au courant des meilleures pratiques internationales. Occasionnellement, ceux qui sont confortables dans leur façon de faire diront que nous avançons trop vite. Ils ne réalisent pas que nous opérons désormais dans un environnement très dynamique.

Nous ne pouvons pas nous permettre d’avoir un secteur financier local où les éléments clés résistent au changement ».

D'ailleurs, le gouverneur de la Banque centrale a profité de l’occasion pour donner la réplique aux banquiers qui se plaignent que le secteur bancaire mauricien est surtaxé, cela dans le sillage de la hausse annoncée dans le discours

Le succès de la rénovation du bâtiment colonial et la qualité du travail exécuté avec précaution pour protéger le bâtiment d’origine a également été reconnu et salué par l’Aapravasi Ghat Trust Fund. Les rénovations qui ont duré deux ans, ont été entreprises par une équipe de professionnels qui ont relevé le défi de créer une banque moderne au sein d’une ancienne structure en pierres, préservant ainsi le cachet historique de ce bâtiment vieux de plus de 175 ans.

Celui-ci a été entièrement rénové, au coût de plus de Rs 100 millions, alliant avec succès la modernité avec l’authenticité du Port-Louis d’antan. Ce bâtiment considéré comme étant un bâtiment de Grade 1, est situé dans le Buffer Zone de l’Aapravasi Ghat World Heritage Site.

Cotée à la Bourse de Maurice, et faisant partie du British American Investment Group of Companies, la Bramer Bank a connu une croissance de 31.5% de ses actifs lors des 9 premiers mois de 2013, alors que ses dépôts ont augmenté de 31%. Créee en 2008, elle compte actuellement plus de 60,000 clients dans divers segments du marché, soit le business, le détail, l’International Banking et le Private Banking.

du budget 2014 : « Ceux-là peuvent toujours sortir du domaine bancaire pour rejoindre une autre industrie. Je peux vous assurer qu’il ne manque pas de requêtes de ceux qui souhaitent intégrer le marché bancaire local ».

Faisons ressortir que la Bramer Bank a récemment reçu le Brand Excellence Award dans la categorie de Banking & Finance à la World Brand Congress qui a eu lieu en octobre 2013 à Mumbai en Inde et que le nouveau siège social situé à la Place d’Armes est déjà ouvert au public.

ACTA PUBLICA

MERCREDI 20 NOVEMBRE 2013 EDITION 156 | CAPITAL

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FINANCIAL SYSTEM CHARACTERISTICS

Mauritius lags behind Singapore In his speech at the opening ceremony of the new Bramer Bank headquarters, the Governor of the Bank of Mauritius left no doubt as to how far behind Singapore – often a model for our country – we still are when it comes to financial inclusion. The latest Global Financial Development Report, which supports recent data provided by Rundheersing Bheenick, shows there is a big gap to bridge in terms of financial system characteristics ▼ HERRSHA LUTCHMAN-

BOODHUN

F

inancial inclusion, defined as the proportion of individuals and firms that use financial services, has become a subject of considerable interest among policy makers, researchers and other stakeholders. Rundheersing Bheenick is one of them. At the inauguration of the new Bramer Bank headquarters, on Friday, he laid emphasis on the fact that, compared to Singapore, which boasts a very high percentage of adult population having a bank account (98%), Mauritius still has a long way to go.

Indeed, the Global Financial Development Report 2014, entitled 'Financial Inclusion', published on the 11th of November, indicates that only 80% of the Mauritian population over 15 years of age have accounts at a formal financial institution. “Some 20% of the adult population is still unbanked. A basic no-frills account should be part of the basic human rights of any citizen in a modern monetized economy. We, bankers, have our work cut out to make finance accessible to every citizen in this country”, said the Governor of the Bank of Mauritius.

There are, in fact, many things to improve in a country that aspires to become the Singapore of the Indian Ocean.

The 2014 Report also provides data on the financial system characteristics from 2009 to 2011 (Editor’s note: Refer to

table). Mauritius lags behind Singapore in the following segments: private credit by deposit money banks to GDP (%), account at a formal financial institution (%, age 15+), the bank lending-deposit spread (lending rate minus deposit rate), the stock market capitalization and outstanding domestic private debt securities to GDP (%) and the stock market turnover ratio.

LISTED COMPANIES The private credit by deposit money banks to GDP (%) measures the domestic private credit to the real sector by deposit money banks as a percentage of local currency Gross Domestic Product (GDP), while the account at a formal financial institution measures the percentage of adults with an account (self or together with someone else) at a bank, credit union, another financial institution, for example cooperative,

micro-finance institution, including adults who report having a debit card.

On the stock market front, the capitalization and outstanding domestic private debt securities to GDP measures the market capitalization including the amount of outstanding domestic private debt securities as percentage of GDP, market capitalization being the share price times the number of shares outstanding. Listed domestic companies are taken into consideration here, while investment companies, mutual funds or other collective investment vehicles are not included.

Finally, the stock market turnover ratio is the total value of shares traded during the period divided by the average market capitalization for the period.

The latter is calculated as the average of the end-of-period values for the current period and the previous period.

Financial system characteristics

Mauritius Singapore

Private credit by deposit money banks to GDP (%)

Account at a formal financial institution (%, age 15+)

Bank lending -deposit spread (%)

Stock Market capitalization + private debt securities (% to GDP)

Market capitalization excluding top 10 outstanding domestic (% to total market capitalization)

Stock Market turnover ratio companies

Stock price volatility

84.0 99.7

80.1 98.2

1.0% 5.2%

59.0 153.8

43.2 71.1

7 85.9

15.8% 23.8%

Level of Financial Inclusion (2011)

Mauritius Singapore

Account at a formal financial institution (%, age 15+)

Loan from a financial institution in the past year (%, age 15+)

Electronic payments used to make payments (age 15+)

Debit card (%, age 15+)

80.1 98.2%

14.3% 10.0%

7.4% 41.5%

50.9% 28.6%

Les produits mauriciens à la recherche d'un « brand » POUR FAIRE connaître et vendre leur produit sur le marché international, la centaine d'entrepreneurs ayant répondu à l'invitation d'Enterprise Mauritius pour écouter l'expérience de Giacomo Valentini, hier matin, ont eu de quoi s'inspirer pour leur label. L'atelier interactif sur le thème « Building a Sustainable Brand for Mauritian Products » leur a été fort instructif.

Le président d’Orobianco Group a partagé avec son auditoire mauricien les expériences de son parcours dans l'indus-

trie du « design and fashion » et a élaboré sur l'importance du branding dans tout projet de marketing, qu'il soit local ou international. Giacomo Valentini, d'origine italienne, a fondé la maison Orobianco en 1996. En créant des accessoires tels que des sacs à main 'Made in Italy', son entreprise devait, quelques mois après sa création, connaître un succès phénoménal au niveau du marché local et international.

Sa compagnie est présente dans plusieurs pays et ses chiffres d'affaires en Australie et au Japon ont totalisé 200 millions d'Eu-

ros l'année dernière. « Label is the most important part of the game and Mauritius should be working at making a strong label which will be recognised throughtout the world », a déclaré le célèbre designer, qui trouve, par ailleurs, que Maurice jouit d'une position géographique très enviée au niveau des affaires et que le pays est dotée d'une « very skilful » main-d'œuvre.

Pour sa part, le Chief Executive d'EM, Dev Chamroo, devait faire ressortir qu'il est important d'avoir du succès locale-

ment, mais qu'il est aussi nécessaire de développer un « brand » pour être vendable à l'international : « Il y a beaucoup de 'brands' qu'on utilise à Maurice mais qui ne marchent pas à l'etranger ».

De cet atelier, les nombreux participants ont bénéficié de solutions ainsi que de conseils pour une meilleure visibilité de leurs produits à travers un branding bien pensé et travaillé. De retour dans leur entreprise, ils auront à travailler sur des projets à être présentés à EM l'année prochaine.

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ACTA PUBLICA

MERCREDI 20 NOVEMBRE 2013 CAPITAL | EDITION 156

The Governor's call

According to Rundheersing Bheenick, had Mauritius not undertaken the right reforms, it would have been hit harder by the financial crisis. He also touches upon the balance sheet issue the BoM faces

T

he Bank of Mauritius has recently published its Annual Report, as well as the Statement by the Governor. The latter has provided a detailed review of the year and has given his opinion on the way forward. From the Ponzi Schemes to the Monetary Policy Committee, he says it all. He also makes a call to the local authorities to share the burden.

Had reforms not been undertaken at the right time, Mauritius would have known worse days. For the Governor of the Bank of Mauritius, Rundheersing Bheenick, there are increasing signs that the international front is nearing the end of the crisis, and sustainable recovery is on the way. “Had we not engaged in, at times, painful reforms, we would have been hit harder by the

crisis. The reforms must continue if we are to maintain our preeminent position in Sub-Saharan Africa”, he says, despite changes which have made of Mauritius a more diversified and resilient economy.

However, there is a need to worry, especially when taking into consideration the BoM's balance sheet. Last year, the Bank launched the Operation Reserves Reconstitution (ORR) to achieve a six months' import cover. Although a good measure, the ORR resulted in excess rupee liquidity in the domestic money market. This pushed the BoM to conduct open market operations to mop up the surplus. “We had to complement the issue of Government securities with our own paper which reached a record level of almost Rs 19 billion”, explains the

Governor. Therefore, this decision came with a cost and finally weighed heavily on the Bank's balance sheet.

“The continuation of open market operations at the same level as in recent months will rapidly become unsustainable for us. A few years ago, I had flagged this issue. Today, I am renewing my call to the authorities to share the burden as it is certainly not in the interest of the nation to have a central bank with weak finances”, he warns.

As regards the Monetary Policy Committee (MPC), and the voting pattern on Repo Rates, Rundheersing Bheenick simply explains that the monetary policy making is a forward-looking exercise requiring objectivity and independence of mind, and should, in his view, be ideally operationally independent of Government.

COMMONWEALTH BUSINESS FORUM

Deal with WTO to generate $100 billion CADER-SAYED HOSSEN AU PARLEMENT

“Aucune hausse des prix des carburants” A L'ANNONCE de la mesure budgétaire concernant la taxe d'une roupie sur chaque litre d’essence et de diesel pour subventionner l'achat de 200 autobus 'semi-low floor', nombreux étaient ceux qui craignaient une répercussion directe sur le prix de ces carburants.

Hier au parlement, le ministre du Commerce a donné l'assurance que ce 'levy' qui entrera en vigeur en janvier prochain, n'aura aucune incidence sur le prix de ces produits.

“There will be a change in the price structure for Mogas and Gas Oil with the introduction of the Re 1 levy. However, at the same time, another item within the price structure will also be removed such that there will be no change in the retail price of Mogas and Gas Oil. Therefore, I wish to assure the House that there will be no increase in the retail price of petroleum products as a

result of this measure”, a répondu Cader Sayed-Hossen à la Private Notice Question (PNQ) de Paul Bérenger.

Par ailleurs, ce prélèvement d'une roupie sur chaque litre d'essence et de diesel rapportera Rs 350 millions au gouvernement annuellement, a précisé Cader-Sayed Hossen. Selon le budget 2014, 'This Mechanism will provide a subsidy of Rs 1 million per bus'. Ce qui fait que les 200 autobus coûteront au moins Rs 200 million. Conclusion : au moins Rs 150 millions iront dans les caisses de l'Etat annuellement.

En ce qui concerne la Maurice Ile Durable (MID) Levy de 3 sous sur chaque litre d'essence et de diesel, les consomateurs ont payé Rs 224 millions en 2011 et Rs 126 millions en 2012. Ils paieront quelque Rs 132 millions cette année.

The aspect of the Commonwealth Summit that has been most mediatised in the past few weeks has been the human rights issue, as there have been claims of persecution of the Tamil minority by the Singhalese government.

But financial issues were also at stake DURING HIS inaugural speech, President Rajapaksa of Sri Lanka said : ''The selection of the Forum theme, namely, "Partnering for Wealth Creation and Social Development" is undoubtedly relevant and timely. The theme of today's Forum ideally fits Sri Lanka's own philosophy, while also articulating a vital need in today's global economy''. Around 1,500 representatives from 83 countries were present at this event.

Among the most notable guests were representatives from Royal Bank of Scotland (RBS), HSBC and Standard Chartered Bank.

Indeed, the movers and shakers of the commonwealth economies met in the course of the Commonwealth Business Forum. The Chairman, Mohan Kaul, said, to highlight the impact of the forum, that the Government of Nigeria received over US$ 3 billion worth of investment, Malta saw tripling of levels of investment in the country, and Uganda’s infrastructure sector alone received US$ 2 billion after successive Commonwealth Business Forums.

In 2009, he explained, “when the forum was held in Trinidad and Tobago, nine MoUs (Memorandum of Understanding) were signed during the forum’s proceedings and received US$ 1 bil-

lion in investment with a focus on energy. During the biggest forum yet held in Perth, Australia, in 2011, over US$ 10 billion worth of business was discussed, with US$ 6.5 of it completed so far”. British Prime Minister David Cameron in his parliamentary speech on the commonwealth summit said : « The Foreign Secretary and I also used the meeting to build the case for more open trade and for developing our links with the fastest growing parts of the world. The Commonwealth backed a deal to be officialised at next month’s World Trade Organisation meeting in Bali that could cut bureaucracy at borders and generate $100 billion for the global economy ».

As we can understand, the Commonwealth which has long been an institution with a political purpose is now playing a key role in the world's economy. Over 20 percent of global trade takes place within the Commonwealth today. This is generating massive opportunities for investment and the stated figures say a lot about the contribution such sums can make to both developing and developed nations. This is where the real wealth of the Commonwealth lies. Business opportunities like these must be taken advantage of.

A.M

FINAL REPORT

MERCREDI 20 NOVEMBRE 2013 EDITION 156 | CAPITAL

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FEDERICO SUTTI, MANAGING DIRECTOR FOR EUROPE & AFRICA, DLA PIPER

“PROGRESS MEANS TO BE OPEN TO OUTSIDE INVESTORS”

The Mauritian economy benefits from a vision adopted by all its actors. Such is the opinion of Federico Sutti, DLA Piper’s Managing Director for Europe & Africa. The Italian lawyer, who was recently in Mauritius for the launch of the DLA Piper Africa Group, is of the opinion that the country’s strategy for attracting investment is working and that it has a reputation for being business-friendly PHOTO : INTERNET

▼ ARVIN MOOTOOCURPEN

BUSINESS ACUMEN

F

ederico Sutti, managing partner of DLA Piper for Europe and Africa was recently in Mauritius, at the invitation of Jurisconsult Chambers, DLA Piper’s representatives in Mauritius, for the launch of the DLA Piper Africa Group. A function was held last Friday, at the Labourdonnais Hotel in Port Louis, with members of the business community invited to meet lawyers from the DLA Piper Africa Group. DLA Piper is today the largest international business law firm in the world with 4,400 lawyers in 72 offices situated in 32 countries.

This function was a good opportunity for all the African lawyers to meet with Mauritian business persons.

When he says he is surprised and impressed by the economic progress Mauritius has made in the last 10 years, it is because he knows we have been a monocrop economy for decades before transforming into a service oriented one.

But what did one of the biggest law firms on the planet really see in our economy for them to set foot here? “What we learned about the country is that you have a vision, you have a strategy and most of all I understand that most people here can go in the same direction. In many countries, where they have some good ideas and some views, they have not been able to come together and agree to move in the same direction as you did. That’s the great difference”, he says.

WITHOUT FEAR Sutti's understanding of economics tells him that the Mauritian business community has been able to get Parliament to call the patterns of trade that was necessary to launch economic progress and vice-versa: “The end result is that you are doing very well, you have created a reputation of a business friendly economy that welcomes outside and bigger firms into the economy without fear of being taken over. Progress means mostly to be open to outside investors”. The lawyer speaks from experience: “In most places where DLA Piper has been, the local lawyers and the local business community have often tried to prevent us from getting into the market because they want to protect themselves from competition. As such, the fact that you are open to us means you are prepared to face the competition and I believe this is the reason you are being suc-

Italian lawyer Federico Sutti is one who has a keen business acumen and has proven it as the Managing Director of the Italian branch of the German Law Firm Schürmann & Partner. When the American Law Firm Coudert Brothers, which later became DLA Piper, merged with Schürmann & Partner, he managed the Italian side of the merger. Thanks to his support, DLA Piper is now the biggest international law firm in Italy. He has been awarded 'Managing Director of the year' for 2010 and 2012 in the Top Legal Awards. He usually talks in conferences about the importance of Private Finance Initiative and Public-Private Partnerships (PPP).

In most places where DLA Piper has been, the local lawyers and the local business community try to prevent us from getting into the market because they want to protect themselves from competition.

As such the fact that you are open to us means you are prepared to face the competition and I believe this is the reason you are being successful. You are not afraid of the outside world despite your size cessful. You are not afraid of the outside world despite your size. You are becoming a bridge between Africa and Asia, you are attracting investment from Europe and the strategies that you have behind the double taxation treaties are very smart and clever.

The fact that you are attracting investment

from a number of countries and a number of companies investing in Africa are now coming or going through Mauritius, tells me that this not happening by chance”.

In most economies, as Federico Sutti says, the behavior of the business community is to call for laws that block any outside bidders from having a say on how the firms are run. Not only local firms want to keep control over their property, but they also want to permeate their actual rate of profits at the detriment of national economic growth. But it seems here, and as Sutti points out, that some people having the power to call the shots have understood this.

MOVE FORWARD Marc Hein, Head of Practice at Jurisconsult Chambers obviously did. He says: “We have realized that if we want to grow it is in our interest to get into an international network. Things are getting pretty sophisticated when it comes to law and in this state of constant development in the legal services, not being in an international network at this time, we will lose.

In today's world, one cannot stagnate because when we do so, we fall. So the only

solution is to move forward and such an international network allows this.”

Sharing a conversation he had with a British banker recently, Federico Sutti says he was surprised to hear him refuse his invitation to invest in Italy, one of the biggest economies in the world. Instead the London Banker said he was going to Mauritius, which is becoming a major destination for investment.

Present at the function, Chief Justice Bernard Sik Yuen says that “this move is bound to uplift the quality of legal services which law firms provide to their clients.

This comes at a critical time when Mauritius is focusing on the African continent and promoting itself as a useful platform for investments. It would not be inappropriate to mention that with the passing of the International Arbitration Act 2009, Mauritius is posing itself forward as an international Arbitration centre. It is but a natural sequent that a jurisdiction like Mauritius, which positions itself as an international financial centre, should also set in place proper services for fast international dispute resolution like mediation and arbitration. So I am pleased to tell you that the judiciary of Mauritius supports the project of making Mauritius an International Arbitration Hub.” Ammar Oozeer, Partner & Barrister at Law from Juristconsult Chambers adds: “The DLA Piper Africa Group will provide access to full-service law firms who have direct and solid experience in some 16 African countries across all key sectors. This partnership between Juristconsult Chambers and DLA Piper brings us access to specialised legal expertise, knowledge and know-how not available locally and enhances our capacity.”

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POST SCRIPTUM

MERCREDI 20 NOVEMBRE 2013 CAPITAL | EDITION 156

OPINION JEAN-PIERRE LENOIR

J’AI JOUÉ À L’AUTOMOBILISTE-TOURISTE...

C

irconstances obligent, je me suis retrouvé, l'espace d'une journée, au volant d'une voiture de location. Jusque-là rien de plus banal. J'avais prêté la mienne, plus grande, à des amis de passage pour qu'ils puissent transporter leurs bagages dans le bungalow qu'ils avaient loué. N'étant pas un fanatique de la chose automobile, je me contentais seulement de vérifier qu'il y avait un volant et les pédales réglementaires pour me permettre de me déplacer, ce qui, vous en conviendrez, est la raison pour laquelle nous achetons une voiture. Elle était loin d'avoir des allures de celles prisées par les « returning residents. » Au même titre que l'habit ne fait pas le moine, la voiture peut, elle, faire le larron ! J'avais, sur la portière, le capot et le coffre, de magnifiques autocollants avec un mélange de plage et de mer bleue, prouvant à ceux qui auraient pu en douter qu'il s'agissait bien d'une voiture à touristes... avec un touriste de circonstance dedans... Moi !

Comme j'ai toujours pensé que la route était le plus grand révélateur de la nature humaine, j'ai décidé de jouer le jeu.

M'approchant lentement d'un policier, je l'observais discrètement mais avec attention, comme s'il était le premier policier « tropicalisé » que je rencontrais. Était-il ou non en service ? Je venais de voir à la télé des policiers français casqués et caparaçonnés à l'air un peu méchant.

J'en étais loin et sa décontraction me rassura. Sa démarche, la façon dont il se retourna sur une fille qui passait et les pistaches qu'il était en train de grignoter, m'incitèrent à m'approcher de lui sans crainte, pour lui demander un renseignement routier. Il fut d'une très grande gentillesse, me demandant même mon nom et l'endroit d'où je venais. Je fus rassuré en me disant que le tourisme de masse n'avait pas tué chez cet homme la cu-

riosité et la gentillesse propres aux Mauriciens normalement constitués. Un à zéro pour la gentillesse...

Premiers feux, premières désillusions.

Alors que je ralentissais pour m'arrêter au feu qui venait tout juste de passer au rouge, je fus dépassé par un bolide dont le conducteur ne savait probablement pas que les cimetières étaient remplis de gens pressés. Il brûla en bonne et due forme le feu rouge ! Je le rencontrai de nouveau au prochain feu et arrêté près de sa voiture, je décidai de lui demander, en prenant un fort accent français, pourquoi il avait brûlé le feu rouge. Il me regarda avec des yeux de poisson mort qui me firent comprendre que j'aurais mieux fait de m'adresser à la voiture plutôt qu'à son conducteur qui pensait que je venais probablement d'une autre planète. Un partout !

Route Royale, dont je ne sais toujours pas pourquoi elle s'appelle toujours comme ça ! Pour moi, la monarchie mérite mieux, mais enfin... Un pauvre automobiliste essaie de s'extraire de son parking. Je m'arrête pour lui permettre de passer et lui fais signe. Pas un geste de remerciement. Moi touriste, je suis chez lui, donc il ne me doit rien... Sa punition arrive le plus naturellement du monde lorsque, furieux que je me sois arrêté pour le laisser passer, un automobiliste me double et manque de lui rentrer dedans. Je décide d'attribuer deux points à cet épisode peu gentil. Deux à un...

L'autoroute... Aaahhh l'autoroute !

C'est là et nulle part ailleurs que l'automobiliste peut donner libre cours à toutes ses pulsions, bonnes ou mauvaises. Allez !

Bien calé dans ma peau de touriste un peu perdu, je fais semblant d'hésiter entre la bretelle pour Quatre-Bornes et la route de Port-Louis. Un coup de klaxon intempestif me rappelle à la dure réalité locale.

Quand on sait tendre l'oreille, le klaxon peut revêtir des sonorités et significations

différentes. Simple rappel gentil pour un zigzag intempestif ou un clignotant oublié. Là non ! Une litanie sonore dans laquelle se mêlait toute la frustration du conducteur et son sentiment de supériorité probablement acquise lors de l'obtention de son permis de conduire... Passant à côté de moi, ses yeux me lancèrent un terrible regard alors que ses lèvres marmonnaient quelque chose de fort heureusement inintelligible. Trois à un pour l'imbécilité !

J'eus un moment la velléité de faire un crochet par Port-Louis pour tester le respect des « passages cloutés » par l'automobiliste local. Le souvenir horrible de cette pauvre vieille de 85 ans, fauchée sur les clous par un assassin du volant à PortLouis, près du théâtre, m'incita plutôt à continuer ma route.

Autoroute du Nord. Le marchand de fruits du bord de la route va constituer l'étape ultime de mon test. Accent français à la bouche, je lui demande le prix des letchis. Huit cent roupies le kilo ! Je ne bronche pas. Il interprète mon silence et me consent une petite « ristourne ». Pendant que je médite sur la folie des hommes et le cours du letchi, un local s'arrête et demande le prix des mêmes letchis. Le marchand me regarde d'un air angoissé et me tourne le dos pour annoncer le prix. L'automobiliste s'en va avec sa grappe et moi avec mes illusions perdues...

Quatre à un et un match perdu pour tout le monde...

P.S. Je suis repassé le soir dans ma voiture de « local » et me suis arrêté auprès du même marchand pour lui demander le prix des mêmes letchis, cette fois-ci en créole. Je crois qu'il ma reconnu. Il m'a balbutié qu'ils étaient à Rs 240 le kilo. « Prix la fine mari baissé depi grand matin », lui ai-je fait remarquer, en lui disant de garder ses fruits pour lui...

SPECIAL ISSUE

24TH IRCC PLENARY MEETING

MEETING OF MEMBER STATES, REGIONAL ORGANISATIONS AND EU

FRANCESCA MOSCA,

MAHBOUB MAALIM,

“WE ARE WILLING TO HAVE THE PRIVATE SECTOR ON BOARD”

“AFRICA IN A POSITION TO TAKE DECISIONS”

EUROPEAN COMMISSION DIRECTOR

NEW IRCC CHAIRPERSON

New IRCC Chairperson Mahboub Maalim asks the European Union to trust the leadership of the African continent, headed by the IRCC. Africa, he says, is in a position to choose with whom to discuss its different needs, as it has many friends around the globe

In a mini-interview yesterday morning, the European Commission Director for Cooperation for Sub-Saharan Africa & ACP Commission made it clear that the European Union is going to be selective in its financing. Europe's shortage of money, she confirmed, will be a key turning point in the Africa-Europe relations as far as project financing is concerned

11TH EDF

A NEW DAWN

DR KIPYEGO CHELUGET, ASSISTANT SECRETARY GENERAL OF THE COMESA

ANGELO EDUARDO MONDLANE, SADC

“NO COMPETITION BETWEEN REGIONAL ORGANISATIONS, BUT COMPLEMENTARITIES”

“THE EUROPEAN UNION HAS A SAY IN HOW ITS RESOURCES ARE USED”

24TH IRCC PLENARY MEETING M E E T I N G O F M E M B E R S TAT E S , R E G I O N A L O R G A N I S AT I O N S A N D E U

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11TH EDF

SCOPE FOR A RE-INVENTED IRCC?

S VIKRAMDITYASING BISSOONAUTHSING, COORDINATOR AND HEAD OF SECRETARIAT OF THE IRCC

ince its creation in 2001, the core focus of the Inter-Regional Coordinating Committee (IRCC) has been to support, facilitate and coordinate the access to European Union (EU) funding of Eastern and Southern Africa – Indian Ocean (ESA-IO) Regional Economic Communities (RECs). These support programmes underpin several regional integration and cooperation endeavours.

Avoiding duplication and building economies of scale along aid effectiveness principles is at the core of the IRCC’s mandate. The managed resources are significant: over the 9th and 10th European Development Fund (EDF) the combined total initial envelopes for the ESA-IO region has been nearing the EUR 1 billion.

IRCC has been able to ensure that grant resources from the EU are mobilised, programmed, identified and formulated in a coordinated way and on behalf of the participating RECs (COMESA, EAC, IGAD and IOC). This coordination has seen joint implementation of programmes covering the 4 RECS thereby taking advantage of economies of scale and avoiding duplication. The scope of such support has been limited by the fact that only one partner (the European Union) has been involved and as such not much coordination has been done with other partners and other funding financial institutions.

WIDENING THE IRCC’S MANDATE: BEYOND EU DEVELOPMENT FUNDING A wider mandate was construed in the September 2009 “Lusaka Declaration” from the high level meeting of the ESAIO ROs, their Member States, represented at Ministerial level, and high officials of the European Commission. Amongst others, the Declaration highlighted the need for streamlined procedures, instruments and measures for programming and timely delivery of EU support to regional integration. Concerns were expressed that speedier funding delivery was critical to implement projects on time and produce benefits early. Delays in aid disbursements for investment projects (e.g. regional infrastructure) led to escalation of costs and significant opportunity costs. It was apparently more prudent to go for commercial loans in financing such projects.

A broadened IRCC caucus of ESA-IO ROs and their Member States, which met in Nairobi in August 2012, noted the new openings under the EU’s Agenda for Change in terms of innovative financing mechanisms. Following this meeting, the interest of other public and private partners is being explored to cooperate within the framework of the IRCC; the ultimate goal being to favour intra-platform lever-

aging and blending of the EU grant funding, the preferred choice of the EU being the EU-Africa Infrastructure Trust Fund.

This type of financing will become the norm rather than the exception for the future of EU support to regional integration in this part of the world, with early indications by the EU that nearly 50% of regional 11th EDF would be devoted to blending and leveraging for regional infrastructure development.

The ESA-IO Member States and their Regional Organisations have put forward that the matching financial resources for leveraging and blending for regional infrastructure financing should be open to the international and continental vehicles such as the Africa 50 Fund, as well as to regional development banks and funds and other public and private resources including equity funds. IRCC may be set to play a key role in such arrangements to effectively broker the bankable programmes, assist in their packaging, liaising with the financiers upfront, appraising the development planks, etc.

After more than a decade of being exclusively funded from EU resources, a new IRCC platform, to be compatible with the final financial and governance architecture of the regional 11th EDF, if so endorsed by its membership, will need to draw across a new diverse membership for its sustainability. Success relies on a common conviction of the collective gains arising from dialogue and a common operational framework across several Regional Organisations (ROs), and in a platform regrouping all interested cooperating partners.

THE FUTURE IRCC From its initial rationale, the IRCC could profile itself as a pillar of aid effectiveness. In this context, it is good to note today that the IRCC has led ROs to embrace the Global Partnerships for Development issuing from the Busan High-Level Forum (IV) of December 2011 and to be party to the technical dialogues within that framework such as, for example, on mutual accountability.

This was the culmination of the past three years of sustained lobby by the IRCC for the regional dimension of aid effectiveness to be recognized in the work to Busan HLF IV. Building on ten years of lessons learnt, with more partners and newer ways of financing regional assets and services, there is hope of accelerating the pace of economic integration in the region. To make this happen, future resources will have to be channelled towards building and strengthening intra-regional markets and productive capacities, much needed to underpin the sustainability of the region’s in-

tegration efforts, the emerging free trade areas and the forthcoming common markets. This should go hand in hand with the physical connectors: regional infrastructure - transport and communications and regional energy pools. At macro level, these will be the Key Performance indicators for the IRCC, but how can these objectives be achieved?

Several approaches are possible inside the wider caucus. Traditional grants-based programmes can support newer, more ambitious high potential goals and attract further public and private funding. The setting up of new vehicles, preferably regionally-owned, is also worth considering notwithstanding recourse to continental vehicles such as the Africa 50 Fund. The new platform should also underscore and coordinate approaches by groups of countries on specific themes or sectors and by intra-platform configurations of various entities, mixing regional organisations, countries, development finance institutions, private sector, etc.

A higher level and intensity of coordination, coherence and complementarity assurance will be needed. Ultimately, this should work towards cementing the building blocks of the African Union, and, perhaps, reinstate some confidence in achieving the objectives of the Abuja Treaty – creating one single African market. This should be the global objective for IRCC in whatever new skin the IRCC finds itself in for the future.

To conclude, this article’s core argument is: IRCC should indeed re-invent itself to take into account the changing global environment and lessons learnt during the past ten years. Constraints to regional integration in Africa have largely been related to supply side handicaps (e.g. poor infrastructure and weak productive and marketing facilities). Addressing these constraints would require an IRCC that is designed and institutionalised to be able to coordinate and mobilize a combination of domestic or regional resources, big and traditional donors such as the EU and the emerging players.

This also implies an IRCC framework that is able to coordinate a number of funding instruments with an added advantage of allowing for blending of grants and interest bearing instruments (loans and other risk capital). This will imply the ability to work closely with other specialized funding agencies such as national, regional and international financial institutions. The re-invented IRCC should be able to facilitate backward and forward linkages between the African Union and the RECs in order to realize the vision of a bigger African Union Customs Union in line with the provision of the Abuja Treaty.

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FRANCESCA MOSCA, EUROPEAN COMMISSION DIRECTOR

“We are willing to have the private sector on board” In a mini-interview yesterday morning, European Commission Director for Cooperation for Sub-Saharan Africa & ACP Commission made it clear that the European Union (EU) is going to be selective in its financing. According to Mrs Francesca Mosca, it is high time for the private sector to be involved in major African regional infrastructure projects, as these are also of a commercial nature. Europe's shortage of money, she confirmed, will be a key turning point in the Africa-Europe relations as far as project financing is concerned. This also raises the question of whether African states will exclusively have to take loans from European institutions ❚ We understand that there has

been major changes in the 11th EDF guidelines, compared to EDF 9 and 10. Can you tell us more about these changes?

In fact, what we found is that we would like to have a regional envelope for SADC, COMESA, EAC, IGAD and IOC. However, this envelope should not all be managed by the regional organisations. A big part of it, which we would use for big infrastructure programmes, could be managed by other actors, and should be used in conjunction with loans from the banks and other institutions in order to have some leverage. We cannot finance big regional infrastructure projects, be it roads or energy, only with grants ❚ Why is that?

We do not have enough money.

When we are talking of corridors, they might cost up to EUR 500 million or one billion... It is not possible to finance this by grants, and it is not fair, because they are commercial projects. Therefore, it would be useful to have new actors coming on board like the European Investment Bank or the African Development Bank. We can hence use the grant either for the studies or for interest rate subsidies, that is for other things. We feel we would get more out of it than what we are doing right now.

in order to identify and formulate projects. We will maintain, in any case, a dedicated envelope for each regional organisation, and on top of that, they will be overviewing what is done on the regional programme. ❚ What about the question of

overlapping memberships in regional organisations?

This is exactly why we are proposing one single envelope for the whole region. We do not want to twice finance things coming from different posts. We want to have regional organisations sitting together to discuss the strategic vision and the priorities, and then come to say we need to finance.

We definitely want a stronger role for the regional organisations, but not necessarily an implementing role in everything. ❚ When referring to banking in-

stitutions, are you talking about worldwide banking institutions, or are there some limitations set by the EU? No, we are thinking of European and African institutions. As I mentioned, it could be the European Investment Bank, but it can also be the African Development Bank, amongst others, but also the private sector. In our new policy, we are more willing to have the private sector coming on board. ❚ Like Private Equity Firms for

❚ We know that there are re-

gional organisations, but what should we understand from the term 'new actors' you just used?

Well, this is what we are discussing, but it should be clear that we want regional organisations to maintain their role and want them to have a clear say on everything which is done at the regional level, but we would like regional organisations to concentrate also on their regional integration agenda more than just using all their resources

example?

Yes, this is an idea. It is not easy, because it is a complete change, but that is what we are thinking of. ❚ A first assessment of the dis-

cussions so far?

Well, we are starting the discussion. We are going to see tomorrow (Editor's note: today) where we are and we have another session in Brussels, in early December, to get things going.

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While the relations between the European Union and Africa are as strong as ever, Dr Richard Sezibera, Secretary General of the EAC, believes they have evolved into a real 'dialogue' between equal partners. Although many issues need to be dealt with, the outgoing IRCC Chairman says that at the end of the day, agreements will have to be reached

DR RICHARD SEZIBERA, SECRETARY GENERAL OF THE EAC

“AFRICA IS A PARTNER...”

P

ride in what has been accomplished during his one-year mandate. This is what Dr Richard Sezibera, the outgoing IRCC Chairman, feels when he thinks about the work done.

His thoughts, however, immediately turn towards the future, towards Mahboub Maalim, the man who replaces him in that capacity. Dr Sezibera, who is the Secretary General of the East African Community (EAC), one of the four regional organisations under the umbrella of the IRCC, is adamant that Mahboub Maalim will have the full support of the EAC and other regional organisations. All decisions, he stresses, will be collective ones.

During his mandate as Chairman of IRCC, Dr Sezibera has had to lot of work to do to complete the programming of the projects falling under the 10th EDF. “As we all know, we began late, but once we got the guidelines and the financing, we very quickly put forward the programming of EDF 10, which is now being implemented,” he says.

At the same time, discussions have taken place, with the EU, on the modalities of the 11th EDF, a matter which is still very much on the agenda.

“We have talked, discussed, and so far, I am happy because of what has been done,” he says, confident that all the burning issues will be sorted out in the best interests of both Africa and Europe.

As far as blendering and leverage is concerned, Dr Sezibera says that although the idea is a positive one, modalities still have to be agreed upon.

“Concerning EDF 11, I led a mission to Brussels where we gave the European Union our opinion on the draft guidelines. We have just concluded a meeting in Mauritius, with all our members, and we

have agreed upon a common position concerning EDF 11. A position that, of course, we will share with the EU. “Now concerning the issue of blendering and leverage, this is an issue that came from us. In 2010, we had approached the EU and we told them: 'Look, you have very little money for major infrastructural projects”, and we asked them whether we can use these funds and leverage more funds from our other international partners like regional banks and domestic resources to blend and mobilize resources for infrastructure. At that time, they were not yet ready to do so, but now, they have proposed it in EDF 11. We welcome that proposal, but we need to agree on the modalities of how it will be done,” says the outgoing IRCC Chairman.

OWN AGENDA Whatever pans out, states Dr Sezibera, Africa is ready for such changes. As far as the EAC is concerned, there is already an East African Development Bank and the development of an East African Development Fund to finance infrastructural programmes in the region is in the pipeline.

Dr Sezibera insists that there is no tension in the negotiations between the European Union and regional organisations under the IRCC. But those negotiations, he says, are crucial: “True it is that the discussions have been long. Africa knows what it wants and Europe has its own agenda which we must respect. But at the end of the day, we shall have to reach agreements. In the past, it was very one-sided. Europe decided unilaterally and Africa followed, but these days, Africa knows its position and there is a dialogue now.

“Africa comes to the table as a partner, not as a beggar. Africa has a lot to offer,

The fact that we are having long discussions with the EU shows that Africa has a lot to show and to say

Europe has a lot to offer and it’s up to us to agree on the parameters of our engagement. It’s a new world, a new Africa, and the fact that we are having long discussions with the EU shows that Africa has a lot to show and to say.”

Commenting the possibility that SADC becomes the fifth regional organisation under the IRCC, Dr Sezibera says the organisation he has led during the past year is open to SADC's membership, but that a decision remains to be taken by SADC. His hope, in that respect, is that a positive decision comes during the coming year.

“The policy organ for SADC is scheduled for next year. I do not know what the decision will be but we will welcome SADC in IRCC. If the organisation chooses to remain in the configuration it is with Europe, that will be its decision. But I wish to underline that the issues we shall be raising with Europe are issues that we have fully consulted with our brothers in SADC,” says Dr Sezibera.

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MAHBOUB MAALIM, NEW CHAIRPERSON OF IRCC

“AFRICA IN A POSITION TO TAKE DECISIONS”

WEDNESDAY 20 NOVEMBER 2013 CAPITAL | EDITION 156

24TH IRCC PLENARY MEETING M E E T I N G O F M E M B E R S TAT E S , R E G I O N A L O R G A N I S AT I O N S A N D E U

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New IRCC Chairperson Mahboub Maalim asks the European Union to trust the leadership of the African Continent headed by the IRCC. Africa, he says, is in a position to choose with whom to discuss its different needs, as it has many friends around the globe ❚ You are the new Chairper-

son of the IRCC (InterRegional Coordinating Committee) and the Secretary General of the Intergovernmental Authority on Development (IGAD).

What was the purpose of the creation of IGAD? IGAD was formed in 1986 as a result of the very serious drought and famine that occurred for the first time in the Horn of Africa. So, among the United Nations Assembly Resolutions, it was decided to set up IGAD to deal with that disaster and to make sure there was proper coordination when it came to humanitarian relief. ❚ Apart from famine, what

action has IGAD taken as a regional organisation?

IGAD has eventually taken up the issues of political stability, peace and security, food security, migration and the regional integration of the countries in the Horn of Africa. IGAD comprises eight member states, namely Djibouti, Ethiopia, Kenya, Somalia, Sudan, South Sudan, Uganda and Somalia. ❚ Regional organisations ope-

rating under the umbrella of IRCC are asked to take charge of particular sectors.

What are the burning issues that need to be taken up or are being looked at

by IGAD presently?

We have two big issues at IGAD at present: peace and security, and drought resilience.

These two issues are on top of the agenda, but that does not mean that the other issues are not important. We have to select our priorities. ❚ How can funding from

Brussels directly impact the issues of peace and security and drought resilience?

First of all, Europe has been a very good partner. We are thankful to the European Union and the European citizens for being so close to us for so long. As you know, EDF 10 is ending this year, and we will enter another cycle, that is EDF 11, which will be a fiveyear cycle of funding.

The EU has already told us that regarding the issues of peace and security and drought resilience, EDF 11 is prepared to fund. They are also prepared

Development Bank, etc. That is a good thing that can set a milestone.

to fund regional integration and infrastructural projects.

These sectors are priorities for IGAD. The IRCC as well is prepared to discuss with Brussels to see how best, within the area of their interests, we could benefit from such funding.

❚ Despite all that has been

said and heard, can we say that IRCC, IGAD, COMESA, EAC, IOC and Africa as a whole still consider Europe as their first partner in terms of trade and aid?

Africa has a multiplicity of needs, but the continent is also in a position to take decisions.

Africa is very close to the European Union, but we also work with other financing partners.

It depends on what issues are being discussed. We have different friends and we are in a position to choose with whom to discuss as we have different needs. No friend of ours is able to cater to all our needs and requests, just as Africa is not in a position to provide all the things they want from us. This is something that is easily understandable.

❚ One of the issues on the

agenda of the IRCC meeting in Mauritius was the question of overlapping memberships in respect of funding. Your opinion as new IRCC Chairperson?

Everything is about discussion. Nothing is about casting stones. Nothing has yet been decided. The European Union has been kind enough to share with us their views on how best they want to work with us. We have laid these on the table for our members to see and decide what is the best way to work with the European Union.

As new Chairman of the IRCC, I believe it will be difficult to deal with the European Union asking one thing from one organisation and another from yet another organisation.

I agree, on this particular issue of overlapping memberships, that it is the best thing to do in the long run. I agree with that.

But not now, it's too premature.

I agree that the concern is legitimate, but I think we must continue to work in a way that accommodates all of us until we get there. We will get there anyway. It is just a question of time. ❚ So you agree with Brussels

but you say not now...

I agree with the fact that what they are saying is a concern. However, we cannot jump on something just because there is a concern. You need to look at the timing. As far as this particular issue is concerned, in my view, we are not ready. We need time to go there. We will get there if they give us time. ❚ We have been told that in

terms of funding, the EU will partly fund some projects. Where will the member states find the rest of the funding?

What you are calling part funding is what the European Union calls blending and leverages. For the record, let me say that I personally sug-

❚ As new IRCC Chairperson,

Africa is very close to European Union, but we also work with other financing partners. It depends on what issues are being discussed. We have different friends and we are in a position to choose with whom to discuss as we have different needs gested that idea four years ago.

The point is that the money EU gives us is not a small amount of money, but sometimes it is not a big amount of money either when we come to huge infrastructural projects. So we thought that it would be more interesting and reasonable to join other sources of funding. But at that

time, the European Union thought it would not work.

We are therefore very happy that Brussels now believes this formula can work. Where will the rest of the money come from? Well there are many other sources. Governments can go for loans, soft loans from financial institutions like the World Bank or the African

what is your message to the EU? Brussels has been a very close ally to the IRCC and to the entire African continent, and we do know and understand some of the concerns they are raising. My message to Brussels is: we are prepared to discuss a few of your concerns.

Let's work together, as we just need a time frame to address them. ❚ Nearly all the African

organisations talk of the problem of connectivity as a major obstacle in the regional integration projects.

Who has the duty to tackle such problems?

It should be both the member states and the private sector. We need PPPs for such problems. We need frameworks that are relevant. Airlines like Ethiopian Airlines and Kenya Airways are doing their best, but that is not sufficient. They cannot fill all the gaps. That issue is on our agenda, but it needs to be discussed at the continent level, first and foremost at the Heads of State Summit. We need to bring our proposals on board and see how we can realize them. This issue of connectivi-ty is something that it is being discussed everyday in Africa.

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HENRI-BERNARD SOLIGNAC-LECOMTE SENIOR ECONOMIST AND HEAD OF UNIT, EUROPE, MIDDLE-EAST & AFRICA (EMEA) DEVELOPMENT CENTRE

“INFRASTRUCTURE AT STAKE”

T

he Organisation for Economic Cooperation and Development (OECD) monitors trends in economic development and watches out for economic growth. If the years 2002 to 2013 represent a decade of growth for Africa, “we are not yet there”, warns Henri-Bernard Solignac-Lecomte, Senior Economist and Head of Unit, Europe, MiddleEast & Africa (EMEA) Development Centre. And what is at stake with the 11th European Development Fund is infrastructure An upcoming publication of the Organisation for Economic Cooperation and Development (OECD), of which we had a brief glimpse during the internal consultations, reveals that there is a number of constraints in enhancing African governments' capacity to invest in infrastructure.

The spending already represents twothirds of the governments' budgets in terms of operations and maintenance, while the private sector accounts for 21% of the expenditure.

Moreover, funding agencies often deplore weak economic, financial, social and environmental appraisal, as well as inadequate attention to maintenance and poor domestic resource mobilization.

For the Senior Economist and Head of Unit, Europe, Middle-East & Africa (EMEA) Development Centre, the idea is that 40 to 50% of the funds of the EDF will be allocated to infrastructure; this item being the major stumbling block that prevents many African economies, including those of the eastern and southern regions, to switch from a period where growth has been good, but not enough to really create the jobs needed, to a period where we can really talk about structural transformation.

HUGE INVESTMENTS Transforming economies, pursues the Senior Economist, means helping them create better activities, and becoming more modern with better jobs and decent pay, creating more value and paying more taxes to government.

It requires that a country allows, for example, the processing of the raw materials it has in its soil, such as metal and minerals. However, that demands an enormous increase in utility supplies, particularly electricity.

And connecting to markets, both regional and global, requires better infrastructure like harbours, airports, roads, railways. That again, for him, is something which costs a lot of money.

“To put it in a provocative way, we

can say that so far it has been the easy part. Ten years of good growth in Africa was fairly easy. It required good macroeconomic management which, to be fair, has been really widespread in many African countries. But switching to the more demanding structural refinery demands huge financial investments. The problem is: where is the money to come from?” asks Mr Solignac-Lecomte.

The Senior Economist points out that governments in the region are already the main contributors through the provisions of their public budget.

Under the particular economic circumstances, they cannot do much more. “The money is not going to come from donors. The signal that the European Union is giving here is that we are going to continue to invest with you in infrastructural projects, but only by providing seed money. That should help you leverage resources elsewhere.”

For instance, if the EU provides 10% of the budget, the organisations need to come up with 90% for the funding for their projects. Now, he adds, those 90% cannot just be borrowed by governments. That would mean restarting the vicious circles of debts like what has been experienced in the eighties and nineties. Therefore, he continues, the point of the discussion, on Tuesday, was to see what other resources can be leveraged, and in particular, if private investment can be brought in; or if public investment from other development finance institutions in Europe, such as Proparco or KfW (Kreditanstalt für Wiederaufbau, a German government-owned development bank) and public banks which lend for activities in developing countries, can be considered. “We can leverage private equity for instance. But what is at stake here is to know to what extent the seed money can actually be blended with the variety of private and public funding in order to rise to the challenge of promoting infrastructure”, says Henri-Bernard SolignacLecomte.

Nevertheless, he adds, infrastructure financing by development partners suffers from the same weaknesses as public funding. Therefore, the 11th EDF conundrum is that grants are to be used as catalyst to leverage additional funding, because increasing debt ratios is not viable. The shortterm vision is to come to a blending, that is combining different instruments to fund projects, while the medium-term vision is to increase domestic resource mobilisation, to lead the way on the infrastructure agendas.

How to proceed with this is another riddle.

The signal that the European Union is giving here is that we are going to continue to invest with you in infrastructural projects, but only by providing seed money. That should help you leverage resources elsewhere

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❚ There are some changes to the 11th

EDF as compared to the 9th and 10th. Can you please elaborate on this?

What we are trying to do is to elevate the level of regional integration, which is vital. Economic development, as well as political development, is important. The idea is to have as many strong players as possible and to make sure that those who have the comparative advantage and knowledge play a key role. We need strong regional organisations to steer the whole process.

They are the ones who endorse, steer and decide what fits in their regional processes. They should rely – and this was not excluded in the past, but has become much more important now – on new partners who have competencies to do their jobs. It does not mean that we want to change the rules of the game. We want them to concentrate on and reinforce their strategic goals, and use those who can offer some of the support services. Regional integration still has a long way to go. We feel the speed is picking up. The world is changing fast and globalisation is a reality. The regional organisations have to be in a position to follow this.

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Much like an investor in a commercial enterprise, the European Union wants to see better results for the money it puts into the African continent. Projects need to be completed and completed faster to elevate the level of regional integration.

For that to happen, Claudia Wiedey, EU Head of Division, Horn of Africa, East Africa and Indian Ocean, believes regional organisations have to look at the best possible mechanisms

CLAUDIA WIEDEY, EU HEAD OF DIVISION, HORN OF AFRICA, EAST AFRICA AND INDIAN OCEAN

“AFRICA MUST ADAPT TO A CHANGING WORLD”

terms of funding?

You see different responses in different countries in regards to economic development. Look at a country like Mauritius. You have started on a very sound footing, with a very solid economic reform program. What we see today is due to the foundations that were laid. It bears fruit until today. The economic foundations are the prerogatives of the country. The regional organisations have to make sure that they capitalise on that, and decide on the way forward as a region. Europe, of course, has lots of internal discussions on how much funds can go into which particular avenue. But that does not equal to a reduced commitment of the EU to supporting the 11th EDF. We are very clear in this respect. We do not have the figures broken down yet, but the commitment has remained the same as in the past, despite the difficult economic situation in Europe.

❚ What do you expect from regional

organisations in terms of the dynamism the EU wants to see?

Most of them have their regional strategies. I would still maintain that some of our evaluation studies have shown that the rate of implementation and performance has not been as smooth and swift as we would have liked to see. We, as Europeans, pay a very high importance to this. We want to see swift returns, not in terms of interest, but in terms of results. To have the regional organisations respond to this challenge is another issue. They have to look at the best possible mechanism. There are many important players who have specific competences that one particular organisation cannot have. Banks, specific regional organisations which have specific knowledge, or the private sector... There are so many actors. For the regional organisations, it is important to bring them all together and use them at their best capacity.

That is something we are trying to formalise in the 11th EDF. I do not say it was not possible before, but it was not a focus as such. We are trying to say that we need to increase speed. The world is moving very fast around us in terms of trade, of globalisation... We would like the regional organisations to keep pace and make sure they are invested in this. ❚ One of the major issues regarding

regional organisations is the overlapping memberships. What would be the advice of the EU to tackle this matter?

It was mentioned on Wednesday morning, during the debate session, by Dr Sezibera, that multiple memberships have advantages and disadvantages.

They provide opportunities, but there are risks also. He put it very well. There

❚ One concern, as regards funding, is

We, as Europeans, pay a very high importance to this. We want to see swift returns, not in terms of interest, but in terms of results. To have the regional organisations respond to this challenge is another issue

are certain things that, as a country, you may do in one context, and not in the other. For example, custom unions cannot be done in several organisations.

You have to make a choice there. You belong here or there. This is one possibility of looking into that. The message that we would like to spread is to be aware when it comes to customs and trade integration. You have to decide and look at where you see the biggest advantage. It may well be that it is not in the same configuration. The regional organisations would have to see how to proceed with this. For us, it is important because we cannot finance the same initiatives from different parts. If we get a call for support to customs integration from one country, but for two different configurations, it is not credible for us, and therefore we cannot finance. ❚ With what is happening on the in-

ternational economic scene since the 2008 crisis, how tough is it now to be the fatherly figure to Africa, in

the need to bring in other sources to create the blending. Is there indeed a need to worry?

If you look at the infrastructure demands and needs across the region or across the continent, as well as other continents, they go far beyond what you can do on grant funds. There is no way to find, anywhere in the world, including in the European Union, sufficient grants to fund as soon as the infrastructure is needed. There are interested players who are willing to support and blend on bankable projects.

But this must be projects that prove – and right at the beginning they have to be looked at in this way - that there will be returns. It's very important to make solid assessments from the beginning.

There will always be projects, including in infrastructure, that are not eligible or not making use of blending, for example small infrastructure issues. That is not excluded from grant funding. For the peak infrastructure we are talking about, that will serve commercial interests and regional integration, there is sufficient economic interest in having a blend and leveraging different sources for funding.

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DR KIPYEGO CHELUGET, ASSISTANT SECRETARY GENERAL OF THE COMESA

“NO COMPETITION BETWEEN REGIONAL ORGANISATIONS, BUT COMPLEMENTARITIES” Having served at IGAD as Chief, Conflict Prevention, Management and Resolution Officer in the late 1990’s, before joining the EAC as Deputy Secretary General for Projects and Programmes (2001-07), few people are better placed than Dr Kipyego Cheluget, Assistant Secretary General of the COMESA, to comment on regional organisations. He believes that despite the common goals, they are complementary in the work they are doing

T

he Common Market for Eastern and Southern Africa (COMESA) is determined to play a significant role in Africa. As a regional integration grouping of 19 African states which have agreed to promote regional integration through trade development and to develop their natural and human resources for the mutual benefit of all their peoples, COMESA is also a member of the Inter-Regional Coordinating Committee (IRCC).

According to Dr Kipyego Cheluget, Assistant Secretary General of the COMESA, it has been known for centuries that larger markets assist member states to generate and to sustain higher levels of production, which creates more jobs and higher income. It is also economic consensus, in Africa, that regional markets assist to overcome the size limitations of national markets. What might be considered relatively new is the adoption of a developmental approach to regional integration, that covers market integration and industrial and infrastructure development. But

this developmental approach has also met with consensus in Africa, he says, especially since the adoption of the Lagos Plan of Action in 1980.

Despite the presence of other sister regional organisations, Dr Cheluget believes that each organisation contributes to the welfare of Africa and promotes regional integration. “The reason COMESA, as an institution, exists, is to deliver development in the region, through the overarching strategy of economic integration and a focus on facilitating regional trade and investment.

The regional integration programs of COMESA aim at providing a seamless economic space, a policy space that facilitates trade and investment, for job and wealth creation,” he explains.

CLOSER RELATIONS If the four sister regional organisations within eastern and southern Africa share common goals, Dr Cheluget insists on the complementarities that exist among them, as each of them covers specific areas. While the main area of COMESA intervention is linked to economic regional integration through promoting trade, investment

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The reason COMESA, as an institution, exists, is to deliver development in the region, through the overarching strategy of economic integration and a focus on facilitating regional trade and investment and infrastructure development, the Indian Ocean Commission (IOC) is in charge, among others, of Fisheries, the Intergovernmental Authority on Development (IGAD) leads on peace and food security, and the East African Community (EAC) mainly deals with political integration.

“All contribute to strengthen regional integration, to raise the standard of living of their peoples and to foster closer relations among their member states. There is no competition among the four regional organisations, but only complementarities. This is why the role of the IRCC is important,” he adds.

Touching upon the guidelines for the 11th EDF, Dr Cheluget underlines it is a very sensitive issue for member organisations of the IRCC. After the draft EU guidelines for the ACP Regional organisations were presented in mid-September 2013, he believes there has been a very good political dialogue on it with the EU partners.

OVERLAPPING MEMBERSHIP “We agreed that our region will have to submit comments within an agreed timetable and that has been done. Our assessment is that we are on a good track and we are confident that the final product will contribute to improve the implementation, enhancing regional integration within our region,” he says Nevertheless, there remains the issue of the treatment of overlapping membership of states within more than one regional organisation, which has to be guided by the Cotonou Partnership agreement, namely by article 7 of annex 4. “The Cotonou Partnership Agreement, which is the legal framework of our cooperation, is not providing such space which might be politically sensitive for our member states,” says Dr Cheluget.

The Assistant Secretary General is optimist about all these issues being taken up in dia-

logue with the EU, as the EDF is important to member states.

A number of projects, in various cooperating areas, have been completed with the support of EDF resources, for which he insists Africa is very thankful to its EU partners. These projects concern, amongst others, infrastructure development (Gatuna-Kigali road, DjiboutiEthiopia corridor, Chirundu OSB…), capacity building both at member states and regional level through the RISP project, and the RISM project to support member states implement regional integration programmes, especially in the areas of revenue loss when implementing regional commitment in the area of trade liberalization.

Another issue high on the agenda is the part-funding of major projects through EDF funds, that is the blending/ leveraging for infrastructure

ETCETERA

projects. “There is a need for more dialogue among the partners/contributors (member states, regional organisations, public-private partnerships and other cooperating partners who will have to put their money in the basket) to agree on implementation modalities for this new approach proposed to fund infrastructure projects which are demanding big resources,” says Dr Cheluget.

The Assistant Secretary General of the COMESA says that part-funding will mean the rest of the money will have to be

According to Dr Kipyego Cheluget, growth remains the way to create wealth for the people of member states of the different regional organisations. “To spur growth, COMESA's current strategy is economic prosperity through regional integration. With its 19 member states, a population of 490 million, a combined GDP of $525 billion, an annual import bill of around US$155 billion and an export bill of US$108 billion in 2012, COMESA forms a major market place for both internal and external traders.

“Its area is impressive, even in terms of the vast areas of Africa, as COMESA countries have a total combined area of about 12.6 million square kilometers and a booming regional trade (formal intra-COMESA trade in goods reached $19.3 Billion in 2012, up from 3.1 in 2000). These figures mean that the organisation is a credible force in regional, continental and international relations.

A force for good, because according to Article 3 of the Treaty, the reason COMESA exists is to improve the living standards of the people in the region,”

found somewhere for the benefit of the populations of member states of regional organisations. “We will have to mobilize resources from member states, the private sector and other cooperating partners. That is why the implementation modalities of blending and leveraging need to be agreed upon in good time and prior to the entry into force of the 11th EDF,” he adds.

Cooperating partners and financial institutions which will be supporting/funding the projects will get the reimbursements

if they are participating in terms of loans. In case it is an investment done through a company with “different shareholders”, the company will manage the projects for the benefit of the shareholders. But for Dr Cheluget, through whichever channel this is done will not alter the fact that the real ‘owners’ of such projects will remain the beneficiary member states and the region, for the benefit of regional economic and political integration.

UNDERSTANDING COMESA

he said.

Indeed, the COMESA Treaty, which sets the agenda for the organisation, covers a large number of sectors and activities. However, the fulfilment of the complete mandate is regarded as a longterm objective, and for COMESA to become more effective as an institution, it has defined its priorities within its mandate, over the medium term, as being the promotion of regional integration through trade and investment.

The objectives of the organisation are “to attain sustainable growth and development of the member states by promoting a more balanced and harmonious development of its production and marketing structures; to promote joint development in all fields of economic activity and the joint adoption of macroeconomic policies and programs to raise the standard of living of its peoples and to foster closer relations among its member states; to cooperate in the creation of an enabling environment for

foreign, cross-border and domestic investment; to cooperate in the promotion of peace, security and stability among the member states in order to enhance economic development in the region; to cooperate in strengthening relations between the Common Market and the rest of the world, and the adoption of common positions in international fora; and to contribute towards the establishment, progress and the realization of the African Economic Community.

According to these objectives and binding undertakings, as well as the programs being implemented, COMESA aims at deeper market integration covering the establishment and operation of a free trade area, a customs union, and a common market, as well as an economic union involving integration through harmonization and coordination of policies in the various sectorial areas, progressively leading to “a payments union as a basis for the eventual establishment of a monetary union”.

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Le secrétaire général de la COI ne se fait pas de soucis concernant la fidélité financière du Fonds européen de développement pour la région Afrique et océan Indien. Tout en trouvant juste les exigeances imposées par l'Union européenne à ses partenaires africains, Jean-Claude de L'Estrac insiste sur la prérogative des organisations dans la conduite du processus d’intégration régionale

JEAN-CLAUDE DE L’ESTRAC, SECRÉTAIRE GÉNÉRAL DE LA COMMISSION DE L’OCÉAN INDIEN

« POUR UNE APPROCHE DAVANTAGE CENTRÉE SUR DES RÉSULTATS » ❚ Expliquez-nous le rôle de la

Commission de l’océan Indien, en quelques mots...

La Commission de l’océan Indien (COI) conduit depuis trente ans des actions d’intérêt régional en faveur du développement de ses cinq pays membres : les Comores, la France/Réunion, Madagascar, Maurice et les Seychelles.

Cela est nécessaire parce que les problèmes qui nous affectent ne sont pas limités par nos frontières. Nos îles sont vulnérables. Elles sont toutes affectées par les effets du changement climatique.

Pareillement, nous sommes très éloignés des grands marchés et des centres mondiaux de décision et de production.

La sécurisation de nos vastes étendues océaniques, menacées par la pêche illégale et la piraterie maritime, sont aussi des défis qu’aucun de nos pays membres ne peut relever seul.

La COI est donc une force d’action collective qui favorise la mutualisation des ressources et des moyens dans la conduite de projets d’intérêt commun.

C’est dans ce sens que nous avons lancé les grands chantiers de la connectivité maritime, aérienne et numérique. L’Indianocéanie, pour s’insérer durablement et de manière compétitive dans la mondialisation, doit être con-

nectée en son sein et au vaste monde. Contrairement à ce que j’entends, je constate que nous sommes encore très mal connectés au monde. ❚ Vous parlez de projets

communs, mais ils sont peu connus…

En effet, ils sont parfois peu connus de nos populations, et aussi, il faut le dire, de nos décideurs. Et pourtant, ils apportent des résultats concrets. Je vous en donne un exemple : le Plan Régional de Surveillance des Pêches (PRSP), financé par l’Union européenne, a permis depuis 2007 de procéder à 35 missions conjointes de surveillance maritime, ce qui représente 1 000 jours de patrouille en mer. Ces missions ont permis de procéder à 400 inspections en mer, 10 arraisonnements, de dresser 41 procès-verbaux. Ce projet qui mutualise les moyens de nos pays membres a un double impact : en luttant contre la pêche illégale, nous sécurisons les eaux de l’Indianocéanie et nous contribuons à la gestion durable des pêches. ❚ L’Union européenne (UE)

propose de nouvelles directives pour l'allocation de ses fonds destinés à l'Afrique et à l'océan Indien. Ce n'est pas une tâche aisée pour les

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organisations régionales de coordonner leurs réponses au bailleur...

Nous avons reçu les lignes directrices de la programmation du 11e FED en septembre dernier, lors d’une mission conjointe des Secrétaires généraux des organisations régionales d’Afrique orientale et australe et de l’océan Indien, à Bruxelles.

Les réunions que nous conduisons toute cette semaine, entre nos organisations régionales, et avec nos pays membres et l’Union européenne, visent à coordonner nos réponses sur les modalités de cette programmation.

Plus simplement, le 11e FED prévoit des changements notables dans l’architecture de l’aide européenne à destination de la région, comparativement aux 9e et 10e FED. Le Dr Richard Sezibera, Secrétaire général de la Communauté d’Afrique de l’Est (EAC) et président sortant du Comité interrégional de coordination (CIRC), qui réunit l’EAC, l’Autorité intergouvernementale pour le développement (IGAD), le Marché commun d’Afrique orientale et australe (COMESA) et la COI, a adressé une correspondance à Catherine Ashton et Andris Piebalgs (respectivement haut représentant de l’Union européenne pour les Affaires étrangères et commissaire au Développement, NdlR.) suite à notre mission conjointe à Bruxelles en septembre dernier.

Dans cette correspondance, le Dr Sezibera fait état de quelques points qui méritent d’être discutés ou clarifiés. ❚ Peut-on avoir un aperçu de

ces quelques points ?

Le premier concerne le rôle des organisations régionales qui ne doit pas être dilué ou minimisé. Nous souhaitons que le Programme Indicatif Régional (PIR) reconnaisse le rôle moteur de nos organisations dans la conduite du processus d’intégration régionale, et ce au nom de leurs pays membres. Nos organisations sont en outre « dûment mandatées » au titre de l’Accord de Cotonou qui régit la coopération entre l’Union européenne et les pays ACP. Il s’agit donc de rappeler, à l’Union européenne et aussi à nos pays membres qui peuvent avoir des intérêts nationaux, que ce sont nos organisations qui doivent garder la prérogative de la mise en œuvre du processus d’intégration régionale.

Ensuite, il était question de ne présenter le draft du PIR aux organisations qu’après sa présentation au comité du Fonds européen de développement. Nous pensons que l’approbation du PIR doit être d’abord obtenue des organisations régionales dûment mandatées avant soumission à ce comité. Il s’agit de nous assurer de la pleine conformité de ce document avec nos stratégies de développement et nos engagements régionaux.

Enfin, la nouvelle configuration du 11e FED prévoit l’intégration de la Communauté de développement d’Afrique australe et orientale (SADC) dans le PIR. Or, nous sommes encore en attente d’une décision des instances décisionnelles de la SADC à ce sujet. Cette nouvelle configuration n’est donc pas acquise.

Malgré ces quelques points qui restent à clarifier, je crois que la programmation du 11e FED nous motive à adopter une approche davantage centrée sur des résultats. Le principe qui sous-tend l’ensemble de cet exercice est celui de l’efficacité de l’aide conformément à l’Agenda pour le changement de l’UE. ❚ A l’ouverture de la 24e

réunion plénière du CIRC, vous évoquiez des tentatives de minimiser le rôle des organisations régionales…

C’est vrai, nous notons avec inquiétude une tendance de certains Etats à vouloir replacer les Etats au centre de l’intégration régionale. Les lignes directrices de l’UE soulignent, elles-mêmes, l’intégration insuffisante de la dimension régionale dans les stratégies nationales de développement.

Je suis catégorique : les organisations régionales sont les plus à mêmes de conduire des politiques ambitieuses d’intégration régionale. Et nos résultats sont honorables, contrairement à ce que l’on voudrait faire croire. ❚ L’UE propose qu’un Etat

bénéficiaire revendique son appartenance à une seule organisation dans le cas d’une multiple appartenance, ce qui rend la tâche difficile pour des pays comme Maurice...

La philosophie derrière cette proposition consiste à éviter la duplication des actions et des financements, et donc d’aller dans le sens d’une gestion efficace des fonds qui sont alloués à la région. Cette philosophie, nous la comprenons parfaite-

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ces enveloppes. ❚ Quelle est la part qu'en a

Nos partenaires de développement, en l’occurrence l’UE, sont plus exigeants – et à juste raison – compte tenu du contexte international de crise qui prévaut. Nous ne pouvons compter sur l’appui de nos bailleurs sans en contrepartie respecter les principes de transparence, de gouvernance et sans adopter une culture du résultat ment.

Comme l’a rappelé le Dr Sezibera dans sa correspondance adressée à Catherine Ashton et à Andris Piebalgs, les organisations régionales parlent au nom de leurs Etats membres. Nous sommes les Etats membres et nous sommes mandatés pour conduire l’agenda de l’intégration régionale. Les fonds qui sont alloués aux organisations régionales sont donc utilisés de manière globale, holistique. En outre, en définissant trois secteurs prioritaires d’intervention pour chacune des organisations régionales, nous pouvons éviter la duplication dans l’utilisation des ressources financières. ❚ Est-ce à dire que le finance-

ment des projets par l’UE peut être compromis dans les prochaines années ?

Je ne pense pas qu’il soit compromis. Je crois plutôt que nos partenaires de développe-

ment, en l’occurrence l’UE, sont plus exigeants - et à juste raison - compte tenu du contexte international de crise qui prévaut. Nous ne pouvons compter sur l’appui de nos bailleurs sans en contrepartie respecter les principes de transparence, de gouvernance et sans adopter une culture du résultat.

C’est ce que nous faisons. Et c’est ce qui constitue notre engagement le plus fort dans la programmation du 11e FED. Nous devons aussi nous conformer aux priorités de l’Union européenne. Elle a aussi son mot à dire sur l’utilisation des fonds qu’elle met à disposition de sa politique d’aide au développement.

Je crois qu’il y aura toujours un appui conséquent de l’Union européenne, mais celui-ci sera de plus en plus complété par la mise en place de mécanismes de financements innovants (blending et leveraging) par d’autres bailleurs, dont la Banque africaine de développement, les programmes des Nations unies, l’Agence française de développement, voire par de nouveaux acteurs tels que les puissances émergentes, à commencer par la Chine. ❚ Quel est le montant

attendu de ce 11e FED ?

Je ne peux préjuger du montant, mais on sait déjà que le 11e FED est, à lui seul, doté de 31,5 milliards ! A titre de comparaison, les 9e et 10e FED totalisaient conjointement quelques 37 milliards.

Nos organisations régionales réunies sous le CIRC ont géré depuis le 9e FED près d’un milliard d’euros. L’UE met des fonds conséquents au service du développement. Elle fait preuve d’un effort constant pour maintenir et augmenter

tiré la COI ?

Actuellement, nous conduisons six projets financés sous le 10e FED, dont le PRSP pour un montant de 12 millions que j’ai évoqué.

Je citerai également le projet SmartFish, ambitieux par son financement – 21 millions – et son ampleur géographique, soit une vingtaine de pays d’Afrique orientale, australe et de l’océan Indien. Ce projet vise à consolider le secteur de la pêche au niveau régional par des actions touchant à la sécurisation de la filière, à l’amélioration des cadres réglementaires, à la durabilité de la ressource, à la valorisation commerciale des produits de la mer, à la surveillance des pêches etc. Il est mis en œuvre conjointement avec l’Organisation pour l’alimentation et l’agriculture des Nations Unies (FAO) et intervient aussi bien dans nos îles que sur la côte est-africaine et dans les régions lacustres (Lac Victoria, Lac Tanganyika, NdlR).

C’est d’ailleurs à travers SmartFish que la COI a apporté son appui technique aux deux saisons de fermeture temporaire de la pêche aux ourites à Rodrigues. Les effets positifs de cette mesure conservatoire ont été immédiats et indéniables. Notamment au plan économique : Rodrigues a engrangé un gain financier additionnel de Rs 18 millions en 2012, et la production est passée de 71 tonnes à 185 tonnes entre 2011 et 2012.

J'aime aussi dire qu’il y a un aspect « genre » à cette réussite, puisque le projet profite directement aux piqueuses d’ourites.

C’est aussi sur des fonds européens à hauteur de 15 millions chacun que les projets Biodiversité et Energie renouvelable et efficacité énergétique vont bientôt débuter leurs opérations. Ces deux projets d’envergure contribueront, j’en suis convaincu, à la création d’une Indiaocéanie de croissance durable. C’est notre objectif. ❚ L’UE restera donc le

principal partenaire de développement de la région et de la COI ?

L’UE restera un partenaire incontournable. Mais d’ores et déjà, nous devons anticiper la nouvelle architecture de ce partenariat. Le 11e FED nous conduit à la fin des Accords de Cotonou d’ici 2020.

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ANGELO EDUARDO MONDLANE, DIRECTOR, POLICY PLANNING & RESOURCE MOBILISATION, SADC

“The European Union has a say R in how its resources are used”

egional organisations will be required, under the 11th EDF, to identify priority projects which will be submitted to the European Union for approval. Some are of the opinion that member states with overlapping memberships should not be forced to choose between regional organisations, as EU guidelines published in September 2013 state they have to in order to access funding. Their argument is that “it is not the kind of EDF to have if we are obliged to choose”.

The Southern African Development Community (SADC), present at the internal consultations as an observer, offers a different view on the matter. “At the beginning of any cycle, the EU prepares guidelines. We have to agree, since we are the ones who are the owners of the strategies and the blends,” points out Angelo Eduardo Mondlane, Director, Policy Planning & Resource Mobilisation of SADC. He goes on to tackle the overlapping memberships issue. “All that is being said is that one member state should not benefit twice, but only once, from these resources. The regional agenda belongs to the regional economic communities. Now, when we are talking about the use of EU resources, the latter certainly has a say. That's all you need to understand.”

The Southern African Development Community (SADC) has yet to declare its intention to join, or not, the IRCC. If Angelo Eduardo Mondlane's words are representative of the mood in the regional organisation, although issues still remain with the EU guidelines for the 11th EDF, differences also exist between SADC and other regional organisations in terms of their analysis of the EU-Africa relation

The regional agenda belongs to the regional economic communities.

Now, when we are talking about the use of EU resources, the latter certainly has a say. That’s all you need to understand

BUILDING BLOCKS That statement does not stop him from saying there are certain aspects of the new guidelines SADC does not necessarily adhere to. For instance, the EU is proposing to use a number of stakeholders in order to implement various African projects. There is small difference of point of view, he pursues, between the two parties, in the sense that SADC and other regional organisations believe that regional economic communities must be at the centre of this process.

For Angelo Eduardo Mondlane, the EU can identify stakeholders who can eventually have a comparative advantage during implementation of projects, but that must be in line with the priorities of the regional organisations. “That is something we need to adjust so as to have the same understanding of the matter,” he says.

To summarize, the ownership of the integration agenda should lie within the regional economic communities. Nevertheless, he adds, one cannot deny the fact that it is the EU which puts forward the funds, which means it has some prerogative to say how they should be used.

The new EU guidelines also propose a seed funding which, for the SADC observer, should eventually make things as easy as before. “Once you have this, you can attract the rest of the funds you need. This is the idea. If you have a grant towards a certain project, you can attract investors who can cover the rest,” he says In that respect, Angelo Eduardo Mondlane believes regional organisations should only define priority projects at the beginning of discussions with the EU, and prove that they are viable and sustainable in the long term, through feasibility studies, “in order to convince the EU.” This, however, doesn't change the main objective of the different regional organisations, which is to achieve development through regional integration. “We are the building blocks and that is why our problems are complementary and we need to coordinate among ourselves”, he says.

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AJAY KUMAR BRAMDEO, HEAD OF AFRICAN UNION COMMISSION EMBASSY IN BELGIUM

“MY CONCERN IS ABOUT THE OWNERSHIP OF OUR PROJECTS”

Regional organisations of the African continent are in discussion with the European Union to agree on the guidelines for the 11th FED, which will run from 2014 to 2020. Major changes put forward by the Europeans have been received with uncertainty and a good dose of skepticism by the continent's stakeholders. Ajay Kumar Bramdeo, head of African Union commission embassy in Belgium, focuses his criticism on the co-chairing issue of regional steering committees

T

he negotiations on the 11th European Development Fund (EDF), the financial arm of the Cotonou Agreement, between the European Union (EU) and regional organisations (RO) are on. During internal consultations held between representatives of the RO, on Tuesday 12th November at the BPML offices in Ebene, Ajay Kumar Bramdeo, Ambassador of the African Union (AU) to Brussels, raised the issue of the cochairing of a regional steering committee if set up in the context of the 11th EDF. “My concern is more about the ownership of our programmes and projects as African regional organisations and member states. I have yet to see how the principle of co-chairing will add value to what is already in place”, explains the Ambassador.

His concern is not a blind one, because as he states, there will be nothing to complain about if an improvement is brought about by the co-chairing, thereby enhancing project implementation. However, to co-chair just for the sake of being there, to listen to discussions and share an opinion on which projects the EU is likely to favour later on in the process would mean giving far too much influence to the partner that is the EU. According to Ajay Kumar Bramdeo, the EU is getting deeper into regional structures, and taking decisions at its convenience. Which is contrary to what the Ambassador would like to see, that is a real independence at the regional level. “Those who will be funding alongside the EU might also want to cochair. To have the funders say this puts you on a different footing. You don't have a choice! It is like saying that we have the right to co-chair because we are providing funds,” he pursues.

A MORE EQUAL SAY If Ajay Kumar Bramdeo doesn't see the EU becoming the co-chair of regional steering committees, it is because the Regional Organisations, especially the African Union, are learning lessons from the past. Lessons which tend to show that if the EU gets its way, it will make use of that platform to influence the choice of which projects to fund.

Ambassador Bramdeo has experienced similar situations through the EU-Africa Partnership, where meetings are co-chaired, and where equality is implied, but does not always translate into actions.

“There's no point asking which side has more influence and determines which things are best!” he exclaims.

The focus is thus on letting Africa have a more equal say, the bottom line being that the continent has to uphlod its image, which is more of a regional one. “We won't get back what we lose,” cautions Ajay Kumar Bramdeo.

Another change being brought about by the EU as regards the 11th EDF is that countries which belong to different regional organisations will have to declare membership of only one RO when it comes to obtaining funding through that channel. This decision has been taken by the EU in order to avoid duplication of funds.

However, notes the Ambassador, the RO already work towards common objectives by being complementary, thus avoiding duplication.

We want to avoid being straight-jacketed, with your arms tied behind your back, and then being unable to be flexible That is the strategy behind the RO as they move towards regional integration of the continent. The various initiatives that are taken by the regional economic communities and other organisations like the IOC, COMESA, EAC, IGAD and SADC (as observers), all serve the same purpose. They afford a look at how market integration happens, as well as that of the people.

A long term vision which is being pursued by all RO. “We have parallel initiatives that are trying to achieve the same objectives. The exercise we are undertaking as internal consultations with the aim of meeting the European Union on Thursday is to have a common position, so as to be able to look at the European Development funding for the programming and the regional integration agenda,” he explains.

The African Union, adds Ambassador Bramdeo, is concerned with the issues which are bound to crop up as many member states belong to two or even three RO. “Sometimes, you have certain projects with one group of countries, and you have other ones with other groups of countries. If you are going to limit access to funding for your projects from one organisation, you are not going to be able to integrate in other respects with the other regional organisations.

What we want to avoid is being straightjacketed, with your arms tied behind your back, and then being unable to be flexible,” he adds.

Ambassador Bramdeo also feels that it is good to have expertise, technical assistance and financing from a variety of partners. In that way, the projects can go ahead and be implemented. “If

the project is big enough and requires billions, then there will be multi-stakeholders coming on board. Of course, there will also be domestic resources that we will be mobilizing, either at national level through the member states, or at domestic level,” he adds.

There is no denying that the new EU guidelines bring about important changes. For Ambassador Bramdeo, change is good if it is going to improve what has been in practice in the past.

“In this instance, we are trying to assess and evaluate why the EU is introducing certain changes, and whether it will actually, in our opinion, make the process more efficient, quicker or user friendly. It is a bit unclear as to what the implications of some of the changes will be. We are a bit reluctant and hesitant,” he admits.

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24TH IRCC PLENARY MEETING M E E T I N G O F M E M B E R S TAT E S , R E G I O N A L O R G A N I S AT I O N S A N D E U

WEDNESDAY 20 NOVEMBER 2013 CAPITAL | EDITION 156

FINAL JOINT CONCLUSIONS FROM THE CONSULTATIONS BETWEEN THE EASTERN AND SOUTHERN AFRICA – INDIAN OCEAN (ESA-IO) REGIONAL ORGANISATIONS (COMESA,EAC, IGAD, IOC) AND THEIR MEMBER STATES, AND SADC SECRETARIAT (AS OBSERVER) 12 NOVEMBER 2013, EBENE, REPUBLIC OF MAURITIUS We, the Representatives of the European Development Fund National Authorising Officers, and of Ministries in charge of regional integration and cooperation, of the ACP Member States of COMESA, EAC, IGAD and IOC, and their Chief Executives, hereafter termed “ESA-IO region”, in presence of the SADC secretariat (as observer) meeting in Ebene, Republic of Mauritius, on the 12th November 2013, on the 11th European Development Fund regional programming,

Make the following Joint Conclusions : 1.

2.

Re-affirm : -

The Joint recommendations of the Meeting of the 23-24 August 2012 held in Nairobi,

and, with regard to :

3.

(i) The conclusions of the ACP NAO RAO Ministerial Meeting of April 2013 in Brussels, (ii) The outcome of the consultations of the African Ambassadors Group in Brussels, (iii) The Letter dated 4th October 2013 from the Chair of the IRCC addressed to Mrs Catherine Ashton and Commissioner Andris Piebalgs of the European Union, (iv) The formal comments of the Regional Organisations attached to the letter of 4th October on the draft Programming Guidelines for regional 11th EDF programming and the EU’s first analysis of the Regional

more of the regional organisations and provided that the programmes have followed the due diligence process through the RSC,

indicative programme,

that : the ESA-IO RECs and their Member States have agreed to the comments made through the IRCC Chair to the European Union by the IRCC Chair’s letter of the 4 October 2013, The proposed financial architecture of the 11th EDF for the region is accepted, provided the specific issues around the individual ROs’ envelopes and the modalities for financing of the infrastructure component are resolved, The specific envelopes, one pertaining to each RO, will be programmed through a Regional Steering Committee (RSC) involving the Duly Mandated Regional Organisation (DMRO) and its correspondent EU Delegation and NAOs; the RSC may invite as members other actors in regional integration and cooperation such as civil society representatives, apex bodies for private sector and other regional or international actors,

4.

The RSC is responsible for all programme identification and formulation , the DMRO being also the RAO for the RIP,

5.

Member States can benefit from regional EDF resources inside the single RIP independently of their membership status to one or

Channel13 Ltd 8, Mère Barthelemy Street, Port-Louis Tel : +230 213 1555 - Fax : + 230 213 1552 Email : info@channel13.mu Printed by Yukondale Ltd - Plaine Lauzun

6.

The determination of the specific envelopes for each RO should in no case pre-empt or request the exclusive commitment of any Member State to that RO in terms of benefiting from EDF resources,

7.

The RSC will identify the members to be part of it while keeping in focus that the structure will be kept as light as possible,

8.

The programming will be driven by the ROs’ own development strategies and work plans, and by default, by their Treaties, understanding that a maximum of three sectors only can be defined inside each specific envelope and for which the DMRO and the EU will agree upon,

9.

The different RSCs are regrouped at their DMROs level into an 11th EDF IRCC which will ensure the coherence and complementarity of programmes submitted by each RSC and which will also take decisions for identification and formulation of programmes pertaining to the two other envelopes covering all regions : cross- regional envelope and the infrastructure envelope,

10. The EU role in the RSC and at the higher IRCC level will be driven as per the principles embodied in the Paris Declaration,

SPECIAL ISSUE

the Accra Action Agenda and the Busan Outcome Document and the Global Partnership for Development, 11. With respect to the infrastructure envelope, estimated to be around 40-50% of the 11th EDF regional allocation, note is taken that it will be implemented via innovative financing mechanisms such as blending and leveraging, 12. The matching financial resources for leveraging and blending for regional infrastructure financing should be open to the international and continental vehicles such as the Africa 50 Fund, as well as to regional development banks and funds and other public and private resources including equity funds, 13. The higher coordinating platform, the IRCC, regrouping the RSCs at executive levels, can be broadened to attract other cooperating partners and international financing institutions, public and private, with an emphasis on additional resources to leverage and/or blend with EDF grants, targeting financing for regional infrastructure development, 14. Further assessment of the proposed changes by the EU in the 11th EDF regional approach may need to be conducted ahead of a final decision ; this may require a postponement of the Ministerial meeting of NAOs and RAOs scheduled with the EU for 2-5 December 2013.

EDITOR IN CHIEF Rudy Veeramundar SUB EDITOR Jonathan Luchmun EDITORIAL TEAM Herrsha Lutchman-Boodhun, Leevy Frivet EDITING Clency Lajoie, Vishwadeo Gobin PHOTOGRAPHER Nicholas Larché MARKETING Steeven Pumbien DESIGN Knivel Goonmeter, Ibrahim Atchia (Etcetera Ltd) Tel : +230 213 1555

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GROS PLAN

MERCREDI 20 NOVEMBRE 2013 CAPITAL | EDITION 156

BUSINESS EXPANSION

CENTRALISATION OF TREASURY NOW POSSIBLE WITH STANDARD CHARTERED BANK Cross-border growth among large local companies in the African region is driving many to centralise their treasury operations. Responding to this growing demand, the Standard Chartered Bank has decided to help large companies manage their multi-country strategies in Africa ▼ HERRSHA

LUTCHMAN-BOODHUN

M

any corporate treasurers are realizing that the only way to achieve effective control of their corporate treasury operations is to have their own local experienced team in a particular region; while many governments and local authorities see this as a great growth opportunity to attract business.

The Standard Chartered Bank in Mauritius is one of them. It launched, last Wednesday, an innovative Liquidity Management Platform at the Hennessy Park Hotel, in presence of the Minister of Finance,

Xavier-Luc Duval, the Bank's Chief Executive Officer for Africa, Diana Layfield, and some 120 representatives of the industry.

The product is specifically structured to streamline the treasury opera tions of companies who wish to channel investment and manage multicountry strategies in Africa. Therefore, the new product targets global corporates and multinationals with expanding businesses and a presence in more than one African market. Using the latest technology, this tool helps centralise a company's treasury activities across multiple countries, there-

GROWTH. The new product targets global corporates and multinationals

by improving operational efficiencies and enhancing competitiveness.

The Bank's latest product is in line with Mauritius' ambition to be Africa's leading Regional Treasury Centre. The latter helps a company align its treasury policies, improve the visibility of information and

La MCB ne veut pas concurrencer les banques africaines LA MCB (Mauritius Commercial Bank) accueille en ce moment, et ce jusqu'à vendredi, une cinquantaine de banquiers venus de différentes parties d'Afrique dans le cadre de la 5e édition de sa conférence annuelle « Africa Forward Together ». Les banques africaines ont un aperçu de ce que la MCB, qui se positionne effectivement comme un « Bank of Banks » sur le continent africain, peut leur offrir en termes d'opportunités, comme par exemple d'externaliser leurs opérations sur le sol mauricien.

Par ailleurs, les résultats du premier trimestre de l'année financière 2013-14 de la Mauritius Commercial Bank (MCB) viennent d'être publiés. De juillet à septembre, la banque a réalisé des bénéfices nets de Rs 1,28 milliard, une progression de 12,9% par rapport à la période correspondante en 2012. Qui plus est, cette performance, fait ressortir le conseil d'administration, prend en considération l'augmentation du 'Special Levy' applicable aux

banques comme stipulée dans le Budget 2014. Par ailleurs, le 'Net Interest Income' a grimpé de 9.5% pour totaliser Rs 1.9 milliard en l'espace de trois mois, grâce à la bonne performance des filiales et des sociétés associées, ainsi que les activités à l'international. Ainsi, l'amplification continue des activités de financement du commerce international à l'étranger ont fait grimper les recettes liées aux frais et commissions par 19% pendant le premier semestre. Par contre, les provisions pour créances douteuses ont augmenté de Rs 77 millions pour atteindre Rs 183 millions à la fin du premier trimestre.

Le conseil d'administration a également fait savoir qu'il a approuvé, jeudi dernier, la restructuration de la banque, soit la séparation des activités bancaires et non-bancaires. Le plan devra encore être validé par la Banque de Maurice, la Financial Services Commission (FSC) et la Stock Exchange of Mauritius (SEM).

fund flows, and significantly reduce the resources necessary for treasury processes. As a result, the client can significantly improve cash management efficiencies, capital optimisation and risk management.

“We see an increasing number of fast-growing cor-

porates based in Mauritius, Asia or other parts of the world, that find it compelling to set up a RTC to support their growth agenda in the region and beyond. The treasury centralisation provided by Liquidity Management across their group operations means improved working

capital management efficiency, ultimately helping to sharpen business competitiveness”, says Sridhar Nagarajan, Chief Executive Officer of the Bank. For Diana Layfield, Africa remains a key part of Standard Chartered’s international strategy, and the continent presents an exciting future with 7 of the world's top 10 fastest growing markets over the next decade. Therefore, the Bank is ready to leverage its strength and support to Mauritius in its ambition to be a leading Regional Treasury Centre for Africa, facilitating and managing valuable trade and investment on the continent.

Croissance de 13,9% pour la SBM POUR LES quinze mois se terminant au 30 septembre 2013, la State Bank of Mauritius (SBM) a, comme à l'accoutumée, affiché une bonne santé financière. Les résultats ont été approuvés par le conseil d'administration jeudi dernier et il en ressort que les bénéfices après impôt du groupe a enregistré une croissance de 16,4%. Ils passent ainsi de Rs 3,3 milliards pour la même période de l'année précédente, à Rs 3,9 milliards.

Les opérations extérieures de la banque ont retenu une provision supérieure en ce qu’il s’agit du 'credit impairment' au cours du trimestre, ramenant ainsi la croissance des 'operating profits' à 13,4%. Le ratio de coût par rapport au revenu s’est quant à lui légèrement amélioré, puisqu'il est passé à 32,50% pour la période se terminant au 30 septembre 2013, alors qu'il était de 33,67% pour la même période de l’année précédente.

Les 'gross advances' du

groupe ont atteint Rs 70,5 milliards, et les dépôts Rs 76,9 milliards, des performances qui auraient pu être encore meilleures. « La croissance des avances et des dépôts aurait été de 14,48% et 5,56% respectivement, comparé à juin 2012, si la banque n'avait pas stratégiquement réduit les actifs à faible rendement et les dépôts en devises à coût élevé », précise à ce sujet le conseil d'administration.

ANNÉE CIVILE Ce dernier se montre toutefois quelque peu inquiet sur les perspectives, surtout en ce qui concerne l'environnement du crédit au niveau local, qui serait « sujet à des défis majeurs. » Toutefois, cela n'empêchera pas la SBM de prospecter les opportunités de diversification dans les pays d'Afrique et d'Asie.

Il est à noter que le groupe a modifié son année financière, celle-ci se terminant désormais au 31 décembre au lieu du 30 juin.

La période financière en cours est de 18 mois (1er juillet 2012 au 31 décembre 2013), et sera, par la suite, calquée sur l'année civile.

Elle commencera donc au 1er janvier pour se terminer au 31 décembre.

Notons également que le 7 novembre dernier, Mauritius Telecom et la SBM ont lancé deux nouveaux services, notamment l'Orange Money E-Voucher et l'Orange Money Micropayment. Le but est de faciliter davantage la vie des clients et des détaillants d'Orange.

Le service Orange Money Evoucher est un moyen fiable et pratique pour les détaillants d’Orange d’effectuer le paiement de leur ‘airtime’ à Mauritius Telecom par un simple SMS, suite à quoi leur compte bancaire à la SBM sera débité.

Quant au service Orange Money Micropayment, il permettra aux clients de régler leur achat quotidien chez un détaillant d’Orange Money à travers un SMS.

MARKET

MERCREDI 20 NOVEMBRE 2013 EDITION 156 | CAPITAL

Ensuring human and peoples' rights in Africa

ON MONDAY, the Prime Minister of the United Republic of Tanzania, H. E. Mizengo Kayanza Peter Pinda, opened the Seminar on the Judicial Dialogue between the African Court and National Judiciaries organized by the African Court on Human and Peoples’ Rights, taking place in Arusha from 18 to 20 November 2013 at the Arusha International Conference Centre (AICC). The Seminar brought together Chief Justices/Presidents of Supreme and Constitutional Courts and other representatives of national jurisdictions of African Union Member States as well as Members of African Sub-regional Courts and Members of the continental institutions of the African human rights system.

The objective of the Dialogue is to enhance discussions between these institutions to ensure protection of human and peoples’ rights in Africa and share experiences and challenges with a view to enhancing the protection of human rights and consolidating judicial processes to that end. In her welcome address to the participants, the President of the African Court on Human and Peoples’ Rights, Honourable Lady Justice Sophia A.B. Akuffo, said that though this dialogue specifically focuses on collaboration towards enhancing human rights protection at the various levels, it will lay the groundwork for future dialogue on the overall transformational role that judicial institutions can and ought to play in African Union Member States and their regional and continental institutions.

Major partnership between DHL and Engen

DHL EXPRESS, the world’s leading international express services provider and Engen, Africa’s leading multinational fuel retailer and provider of convenience services, have signed a retail partnership, in a bid to provide customers with better access to global express services.

A consumer looking to send documents or parcels overseas can simply walk into an Engen service station to send his/her shipment, ensuring greater convenience and accessibility to the powerful global network which DHL offers. This includes all domestic and international shipments to major centres across over 220 countries worldwide.

The project, which will pilot at four Engen service stations in the Namibian capital Windhoek, will then be rolled out in phases. Botswana, Ghana, the Democratic Republic of Congo, Kenya and Tanzania are earmarked for the second phase.

Consumers will also be able to take advantage of DHL’s new product offering, Express Easy, at the Engen outlets. Express Easy provides an easy way to send documents or parcels, as consumers can choose an envelope or one of seven box sizes and enjoy a fixed price for that size, rather than paying a rate based on the weight of the parcel. Consumers are simply able to pick their box, pay the fixed rate and send their document or parcel to any of DHL’s global destinations.

LOCAL FRONT

DOWNWARD PERFORMANCE FOR UBP THE UNITED Basalt Products (UBP) registered a low performance for the quarter ended September 2013. The Group's revenue dropped by 3.8% while the operating profit decreased from Rs 96.4 million to Rs 81 million. In terms of overseas core business operations, the Board explains that

its subsidiary company in Madagascar pursued on a positive trend, but same cannot be said for Sri Lanka. The subsidiary still has difficulties in gaining a fair market share. The Group's profit also decreased from Rs 73.1 million to Rs 64.8 million for the quarter. “Our performance for the current financial

year is highly dependent on the prevailing economic climate to favour investments in property development and public infrastructure projects. In this respect, the Board takes note of the national budget's measures aimed at boosting up the construction industry going forward although the timing of implementation and the impact of such measures are yet to be determined”, adds the Board.

MARKET SHARES – TUESDAY, NOVEMBER 19, 2013 COMPANY AIR MTIUS LTD ALTEO LIMITED BRAMER BANKING ENL LAND LTD GAMMA CIVIC H.MALLAC IRELAND BLYTH LTD LUX ISLAND MCB MAURITIUS UNION ASSURANCE NMH OMNICANE ROGERS SBM SUN RESORTS TERRA CIM FINANCIAL DEM BLUELIFE LIMITED CIEL INVESTMENT CIEL TEXTILE CONSTANCE HOTEL DEEP RIVER INVESTMENT ENL INVESTMENT UNION FLACQ LTD UNION SUGAR ESTATE UNITED INVESTMENT

NOMINAL

LAST CLOSING PRICE

LATEST

CHANGE

% CHANGE

VOLUME

VALUE

10.00 1.00 10.00 10.00 10.00 10.00 10.00 7.50 10.00 1.00 10.00 -

13.60 36.90 6.12 50.00 33.50 105.00 99.00 33.30 205.00 125.00 87.00 85.00 199.00 1.05 36.00 41.00 8.10

13.50 37.00 6.10 51.00 33.70 105.00 99.00 33.30 204.00 123.00 87.00 85.50 199.00 1.05 35.90 40.00 8.20

-0.10 0.10 -0.02 1.00 0.20 -1.00 -2.00 0.50 -0.10 -1.00 0.10

-0.74 0.27 -0.33 2.00 0.60 -0.49 -1.60 0.59 -0.28 -2.44 1.23

7,100.00 60,462.00 4,000.00 205,900.00 5,500.00 500.00 280.00 41,155.00 8,809.00 800.00 700.00 13,798.00 1,000.00 3,084,700.00 2,000.00 119,605.00 53,600.00

96,450.00 2,236,414.00 24,400.00 10,445,350.00 186,400.00 52,500.00 27,645.00 1,370,433.25 1,798,096.50 98,400.00 60,900.00 1,173,080.00 199,000.00 3,238,165.00 71,900.00 4,784,215.25 438,366.00

10.00 10.00 1.00 1.00

8.00 3.95 25.10 29.25 5.46 49.00 7.82 52.00 9.82

8.00 3.91 25.10 29.25 5.46 49.00 7.98 52.00 9.82

-0.04 0.16 -

-1.01 2.05 -

17,000.00 579,032.00 63,000.00 100.00 49,900.00 59.00

136,000.00 2,272,969.40 1,584,800.00 546.00 395,030.00 578.20

< 29

BANK OF MAURITIUS EXCHANGE RATES TUESDAY, NOVEMBER 19, 2013 BUYING

SELLING

Country

Currency

TT

DD

Notes

AUSTRALIA CANADA EMU JAPAN NEW ZEALAND SINGAPORE SOUTH AFRICA SWITZERLAND U.K. U.S.A.

AUD 1 CAD 1 EUR 1 JPY 100 NZD 1 SGD 1 ZAR 1 CHF 1 GBP 1 USD 1

27.8567 28.4887 40.5145 29.8057 24.7712 23.8562 2.9329 32.513 48.3243 30.0629

27.6872 28.3059 40.3457 29.5036 24.6221 23.7395 2.894 32.3387 48.1337 29.9776

27.3978 28.0796 40.1859 29.0831 24.3498 23.6197 2.8392 32.101 47.9251 29.9301

TT/DD/Notes

29.0986 29.7409 41.6877 31.1421 25.8801 24.9765 3.0805 33.9252 49.7212 30.9477

GOLD COINS TUESDAY, NOVEMBER 19, 2013 Denomination

Weight(gm)

Diameter(mm)

Price (Rs)

100 250 500 1000

3.41 8.51 17.03 34.05

16.5 22 27 32.69

5425 13185 26225 52140

MARKET ACTIVITY TUESDAY, NOVEMBER 19, 2013 Market Capitalization

207,527,375,737.04

Total Volume Traded

3,823,140

Total Value Traded

31,327,842.30

TOP 5 – OFFICIAL MARKET Symbol NIT CMPL ENL LAND LTD MDIT CIM FINANCIAL

Open 36.30 16.30 50.00 5.78 8.10

MOST ACTIVE – OFFICIAL MARKET Symbol SBM ENL LAND LTD TERRA FINCORP ALTEO LIMITED TOP GAINERS - DEM Symbol MTIUS COSMETICS CONSTANCE TROPICAL PAR (O) UNION FLACQ LTD ENL LTD (P) MOST ACTIVE – DEM Symbol CIEL INVESTMENT CIEL TEXTILE LTD UNION FLACQ LTD

Open 54.75 160.00 5.78 7.82 28.00

Latest 43.50 17.30 51.00 5.86 8.20

% Change 19.83 6.13 2.00 1.38 1.23

Volume 3,084,700 205,900 119,605 102,780 60,462

Latest 57.50 166.25 5.98 7.98 28.50

% Change 5.02 3.91 3.46 2.05 1.79

Volume 579,032 63,000 49,900

DISCLAIMER: Publication of the above figures has been done with reasonable care and diligence. However, Capital makes no representations, gives no warranty and disclaims all liability in respect thereof and shall not be held liable for any damage, loss or costs incurred resulting from any error in the information or any use of the said information. Appropriate independent advice should be obtained before making any investment decision.

Une publication de Channel13 8, rue Mère Barthelemy, Port-Louis Tel : 213 1555 - Fax : 213 1552 Email : info@channel13.mu Imprimé par Yukondale Ltd - Plaine Lauzun

RÉDACTEUR EN CHEF Rudy Veeramundar (En congé) DIRECTEUR EXÉCUTIF Rajen Valayden CHEF D’ÉDITION Clency Lajoie RÉDACTION Herrsha Lutchman-Boodhun, Dorothy Bonnefemme, Jamirouddin Yeadally, Jessen Soopramanien PHOTOGRAPHE Nicholas Larché COLLABORATEUR Jean-Luc Balancy (En congé) CONCEPTION GRAPHIQUE Knivel Goonmeter, Ibrahim Atchia ADMINISTRATION Nishta Salandy, Essane Auleear RESPONSABLE PUBLICITÉ Steeven Pumbien Mob : 5788 5025 Email : steeven.p@channel13.mu

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WIDE ANGLE

MERCREDI 20 NOVEMBRE 2013 CAPITAL | EDITION 156

AFRICA’S MOST INFLUENTIAL WOMEN IN BUSINESS AND GOVERNMENT 2013

ALINE WONG HONOURED AS OVERALL CONTINENTAL WINNER FOR 2013

Award winners, finalists and members of the jury pose for a photo souvenir with Mauritian Minister of Gender Equality, Mireille Martin (fifth from the right)

▼ JAMIROUDDIN

YEADALLY

A

The hand-made fashionable jewellery on display raised curiosity amongst participants after the award ceremony

line Wong, one of the most successful women entrepreneurs in Mauritius and the founder and Managing Director of L’Inattendu Ltée was honored as the Overall Continental Winner in the Africa’s Most Influential Women in Business and Government SME's (Small and Medium Enterprises) category. The award ceremony

was held at the Hennesy Hotel in Ebene, on Wednesday last. Mauritian ministers, African delegates, as well as eminent CEOs and business women attended the ceremony.

For the record, the Africa’s Most Influential Women in Business and Government award ceremony is held each year by Celebrating Excellence in Organizations (CEO), a South African organization, recognising the

Aline Wong, happy as ever as she receives her award from the hands of Commander Tsietsi Mokhele – Chief Executive Officer of SAMSA (left), and Annelize Wepener – Chief Executive of CEO Holdings

women, across the African continent, who are making a difference and a major contribution to various economic sectors.

MAKING A DIFFERENCE This year, the AMFCE (Association Mauricienne des Femmes Chefs d'Entreprises) partnered with CEO Communications as it positioned itself as the local counterpart for Africa’s Most Influential Women in Business and Government 2013. After having had a successful 13 years of CEO Communications hosting South Africa’s Most Influential Women in Business and Government in South Africa, the need to recognise the women in Africa was felt. The awards for Africa’s Most Influential Women in Business and Government 2013 marks the first year beyond the borders of South Africa.

Through a lengthy nomination and judging process, CEO identified women in top executive positions that are making a difference in the private and pu-blic sector. And Aline Wong just happened to be chosen by the judges for her extraordinary performance as a 'successful femme entrepreneur'. According to judges, Mrs

Wong has been highly innovative and has worked hard to carve a niche for her enterprise in a challenging international environment. Her company exports textile products to Europe and South Africa, and caters for the local market as well.

On the other hand, the Lifetime Achievers Award of Africa’s Most Influential Women in Business and Government 2013 was given to another Mauritian, namely Dorish Chitson, Director of OVEC (Overseas Education Centre), for her long contribution to the education sector. Pria Thacoor, Director of P&P Link, Priscilla BalgobinBhoyrul, Barrister at law, Vimi Appadoo, Managing Director, Dale Carnegie Training (Mauritius) and Deepika Faugoo, Head of School of Business, Management and Law, University of Technology Mauritius, also bagged awards.

It is worth highlighting that 16 nominations were received from Mauritius this year. The next edition of Africa’s Most Influential Women in Business and Government will be organised in August 2014, on the African continent.

WIDE ANGLE

MERCREDI 20 NOVEMBRE 2013 EDITION 156 | CAPITAL

< 31

PORSCHE

ABC MOTORS MISE SUR LA DISTINCTION ET L’EXCLUSIVITÉ La célèbre marque allemande Porsche, officiellement représentée à Maurice par Stuttgart Motors Co. Ltd, prend ses quartiers à Phoenix. Le Porsche Centre, spacieux de 500 mètres carrés, propose à ses visiteurs un cadre moderne et convivial à la hauteur de l’élégance qui caractérise les modèles emblématiques du constructeur allemand ▼ JAMIROUDDIN YEADALLY

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e Porsche Centre fait provision pour l’ensemble des modèles de la gamme : 911, Boxster, Cayman, Panamera, 918 et Cayenne et le tout dernier-né, le Macan, un SUV plus petit que le Cayenne, qui viendra s’ajouter à la gamme dans les mois à venir. « Grâce à Porsche, ABC Automobile fait son entrée dans le segment du luxe », a fait ressortir Dean Ah Chuen, Executive Director de la division automobile du Groupe ABC lors de l'inauguration, mercredi dernier, en présence du président de la République par intérim, le

chef juge Bernard Sik Yuen, et du Premier ministre. Le Porsche Centre, a ajouté Dean Ah Cheun, vient mettre « le haut de gamme au service d’une économie qui se veut résolument tournée vers ce qu’on peut appeler la distinction et l’exclusivité ».

Un rêve du Groupe ABC devenu réalité.

Délégué à Maurice par Porsche AG Germany pour l’événement, le directeur général de Porsche France, Marc Ouayoun, se félicite du partenariat du constructeur allemand avec l’agence mauricienne. « Nous nous sommes immédiatement entendus car nous avons tout de suite vu que nous partagions la même vision : professionnalisme, exigence, passion

de la qualité et du client, innovation… », a-t-il soutenu. Et de faire comprendre que pour Porsche « il n’y a pas de petit marché. Il y a des marchés avec un potentiel de croissance, et l’Ile Maurice en est assurément un de par son dynamisme économique, sa diversification et sa stabilité ».

Le showroom Porsche dispose de toutes les commodités pour bien accueillir les clients. Un « fitting lounge » permet aux éventuels acquéreurs de choisir les couleurs et teintes des modèles, y compris celles des intérieurs et d’autres accessoires disponibles. Une boutique propose toute une collection

d’accessoires design qui comprend, entre autres, vêtements, montres et modèles réduits. Le Porsche Centre est ouvert 7 sur 7.

Symbole de dynamisme, de réussite et de bon goût, Porsche est présent dans 115 pays. La marque connaît un développement prodigieux depuis quelques années sur les marchés historiques (Europe et Etats-Unis), mais aussi désormais en Chine, en Amérique du Sud et en Afrique. En vingt ans, les chiffres de vente ont été multipliés par 7, passant de 19,000 unités à près de 150,000 en 2013. Objectif 2018 : 200,000 unités.

(De gauche à droite) Mme Sidharth Sharma, Anu et Salim Beebeejaun, Isabelle Harel, Sidharth Sharma et Antoine Harel

(De gauche à droite) Marc Ouayoun - directeur général de Porsche France, Professeur Donald Ah Chuen - Managing Director d’ABC Banking Corporation, Denise Ah Chuen et Dean Ah Chuen – Executive Director ABC Automobile

Des invités présents pour la soirée ont tenu à immortaliser leur souvenir aux côté du Porsche Cayman

Deux charmantes hôtesses de l'agence HEAT

Le juge Gérard Angoh et sa femme, Angel