NEPAD Guide 2012

THE NEPAD GUIDE 2012

working for africa’s prosperity

Reg No. 1993/004149/06

AIRPORTS COMPANY SOUTH AFRICA (ACSA): YOUR Since its formation in 1993, with the mandate of owning and operating all principal South African airports, Airports Company South Africa (ACSA) has grown in leaps and bounds to become a world-class, profitable state-owned company that is run along commercial lines.

With a portfolio that boasts the country’s three main international gateways: O.R. Tambo, Cape Town and King Shaka international airports, the Company has won a number local and global awards.

It is a well-known fact that airports play a critical role in the national economy. That is why in recent years, ACSA embarked on its most ambitious infrastructure development programme ever, improving the capacity and service offerings at its network of airports at a cost of R17 billion. These improvements contributed to our country’s smooth running of the 2010 FIFA World Cup, the most prestigious event ever hosted on the African continent.

www.airports.co.za

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TRUSTED PARTNER FOR SUCCESSFUL AIRPORT BUSINESS. Are you considering a build, operate & transfer; PPP turnkey solutions; airport refurbishment, change and project management; skills transfer or redevelopment of non-aeronautical/commercial operations project?

Whatever it is, Airports Company South Africa (ACSA) is ready to partner with you to achieve success because we speak your language.

Leveraging on privatisation, corporatisation, commercialisation, change and project management skills, Airports Company South Africa has established a Consulting Division within its corporate structure. The sole purpose of this Division is to seek new opportunities for growth both within the African Continent and other parts of the world.

Five years ago, ACSA (along with its partners India’s GVK and South Africa’s Bidvest Group) won a 30-year concession to manage and modernise India’s Chatrapati Shivaji International Airport in Mumbai in partnership with the Airports Authority of India. ACSA has participated both as a shareholder (10%) and airport operator of the aviation gateway to India’s commercial centre.

Amongst others, ACSA’s responsibilities were to modernise, operate, develop and manage Mumbai International Airport to achieve worldclass standards. This required the implementation of experience-acquired, intellectual know-how including policies and procedures, IT solutions, total quality management, environmental management, maintenance

and engineering, safety, service standards, capacity planning, master plans, project management, route and traffic development, as well as stakeholder management.

Being more than up to the challenge, ACSA further embarked on providing technical exchange programmes, as part of the skills transfer initiative, within various functional areas at Mumbai International. It is this close interaction and exposure to the Indian environment that enables ACSA to implement an all-encompassing commercial transformation for Mumbai International Airport, leveraging the high traffic growth rates forecast for Asia and thereby enhancing the company’s growth over the concession period.

By 2013, the airport will have committed about US$ 2,4 billion in infrastructure development when the final phase of the new T2 Terminal is scheduled for completion. These refurbishments have vastly improved the service offering and passenger experience, positioning the airport well for future growth.

Management of self-sustaining airports is what we excel at. For a tailormade solution, contact: Mr Sandile Gigaba on +27 11 723 1510 or by e-mail sandile.gigaba@airports.co.za

2011/08/10 12:08 PM

The new face of a new world.

He is young. He thinks he is small and insignificant. But he is not. He is growing bigger and stronger, everyday. Soon he will be a leader at the forefront of economic policy, business and politics. His decisions will change lives, industries, communities, Africa and the world. And he will not be alone. He will have an entire continent with him. A continent with the resources, minerals, political stability, human potential, technology and backing of BRICS. Maybe it’s time you change the way you see Africa.

South Africa. Your African growth story starts here.

foreword

President Jacob Zuma His Excellency President of the Republic of South Africa Africa is one of the last investment frontiers in the world. The continent has an abundance of natural resources and a youthful population, but this is juxtaposed against inadequate infrastructure and sub-optimal supply chains.

It is a reality that Africa, TODAY, holds the promise of incredible investment returns. It is Africa that has the largest proportion of unused arable land in the world while food prices continue to soar. Again, it is Africa that has the largest deposits of untapped mineral wealth and yet it is the most under-developed continental market in terms of intra-trade.

That said, Africa’s place in the global market is growing and is currently estimated to be at 1 trillion US dollars.

Africa holds a competitive advantage, and within itself holds the potential to develop the critical trading mass that will spur indigenous growth.

Currently, intra-Africa trade is less than 10% of gross trade while intra-European trade is almost 60%. Almost 90% of Africa’s trade is with other continents which severely affects continentally based value addition. While challenged by socioeconomic circumstances such as education, HIV/ AIDS, malaria and maternal health, if overcome, these will result in vast human potential. By aligning African governments in policy, removing potent barriers to business development. Including infrastructure, lack of corporate governance standards and cross border trading issues and; enabling Africans through skills development, the continent can unlock its own potential.

NEPAD and Africa’s people The NEPAD vision is a partnership amongst African governments with the objective of improving the livelihoods of African people as a collective. The achievement of this is critical to ensuring that trans-boundary projects are meaningfully leveraged for sub-regional impact. NEPAD’s focus on agriculture and food security, climate change and natural resources management, regional integration and infrastructure, economic and corporate governance, and human development and capacity building; reflects deeply on the need

for Africa to strengthen its primary economic development base, while adequately providing for the severe socio-economic needs of the population of one billion Africans. It is this shared vision that binds policy makers and private sector on the continent with respect to our development priorities.

NEPAD, NEPAD Agency, NEPAD Business Foundation and socio economic development NEPAD is the flagship development programme of the African Union. The NEPAD Planning and Coordinating Agency (NEPAD Agency) and NEPAD Business Foundation (NBF) continue to implement programmes and projects aimed at realising the NEPAD vision and have made good progress to date on the key focus areas, in collaboration with public, private and civil society sectors.

NEPAD Agency programmes such as the Comprehensive Africa Agriculture Development Programme (CAADP) have encouraged signatory countries to invest at least 10% of their fiscal budgets in agriculture. These countries are assuring food security for their population and improving a sector which is fast becoming a key focus for global investment. The NBF is supporting this initiative by creating entrepreneurs along the agriculture value chain. It is also advancing smallholder farmers in the sub-region by providing them access to seed through policy advocacy, improving value and supply chain linkages for rural-women and smallholder farmers, and developing agriculture entrepreneurship learning programmes to deepen capacity.

Another notable programme is the Programme for Infrastructure Development in Africa (PIDA). PIDA has finalised its project definition phase and is in the process of unveiling the individual projects for wider buy in, investment and implementation.

This is being done through public sector, private sector and development agency workshops and forums held by both NEPAD Agency and NBF.

to the continuing its support of NEPAD, the African Union and its programmes. I am personally leading the Presidential Infrastructure Championship Initiative (PICI) on behalf of the African Union. This initiative comprises seven very substantial projects across Africa, and the government of South Africa is championing one of these projects, i.e. the North South Corridor infrastructure development project.

I will ensure that the PICI achieves impact at a sub-regional level and realises the broader goals of NEPAD. It is critical that the private sector, public sector and development agencies intensify their efforts and investments in Africa to create sustainable economic development on the continent.

Future of Africa Our future is of a collective and collaborative nature. Only when private and public sectors, development agencies, civil society and the people of Africa work together, can we truly move toward inclusive growth. No single entity can alone carry the vision for development on our continent.

It is on this note that I, Jacob Zuma, in my capacity firstly as an African and secondly as South Africa’s president, pledge and urge all Africans and the rest of the world to collectively join OUR development journey to ensure that this century will, one day, be remembered as Africa’s most defining. ■

South Africa and NEPAD The government of South Africa is committed

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Dr Ibrahim Assane Mayaki

NEPAD Planning and Coordinating Agency, Chief Executive Officer

We Are Committed To Double Digit Growth In Africa The New Partnership for Africa’s Development was adopted at the 37th Summit of the Organization of African Unity (OAU) in Lusaka in 2001.Quoting one of the initiators and former President of Nigeria, His Excellency OlusegunObasanjo, “NEPAD came as a child of circumstance and a child of necessity‘’ in a period when the continent was depicted as a ‘’hopeless continent’’.

Today, a decade later, we are proud to say that the continent is a hopeful continent.

This has been made possible due to a convergence of synergies of various stakeholders, including African leaders, ordinary citizens, civil society organizations, academia, the private sector and development partners.

On March 28, in Addis Ababa, the NEPAD Agency, in conjunction with the African Union Commission, decided to mark NEPAD’s 10th anniversary by reflecting on the continent’s past and future.Since its launch, NEPAD has introduced numerous policy frameworks and programmes such as the Comprehensive Africa Agriculture Development Program (CAADP) and the Programme for Infrastructure Development in Africa (PIDA). NEPAD has also contributed a great deal in changing the livelihood of African women and helped to equip young Africans with 21st century ICT skills to enable them to compete and participate in the knowledge economy.

Moreover, during the past decade, NEPAD has played a critical role in promoting democracy and good governance through one of its flagship programmes, the African Peer Review Mechanism (APRM). Currently, 30 African countries have signed on to this programme and more countries

are subscribing to it. Of the 30 countries, 14 have already had their policies and practices on democracy economic and corporate governance reviewed.

With the benefit of hindsight, one can testify that the vision and mission of NEPAD remain credible and have opened up new opportunities for the continent and earned the respect of development partners.

But many challenges remain.

On economic governance and management, we must put more emphasis on transparency in financial management which is an essential prerequisite for promoting economic growth and reducing poverty. It is in this regard that the private sector is critical in assisting governments toward a better delivery of continental integration projects specifically in infrastructure and agriculture. Put differently, the concern is to promote an enabling environment and effective regulatory framework for economic activities as well as protection of human rights.

It is also critical for us Africans to increase domestic resources for financing regional projects that will help to better shape our continent.With the political will, we shall overcome this critical challenge together with the support of our traditional partners.

The NEPAD Planning and Coordinating Agency, under the leadership of the AUC is committed to moving Africa towards a double digit growth that is both inclusive and sustainable.

Dr Ibrahim Assane Mayaki NEPAD Agency’s CEO

With the benefit of hindsight, one can testify that the vision and mission of NEPAD remain credible and have opened up new opportunities for the continent and earned the respect of development partners.

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CREDITS NEPAD Planning and Coordinating Agency International Business Gateway New Road & 6th Road Midridge Office Park Cnr of Challenger and Columbia Avenues Block B Midrand, Johannesburg P.O. Box 1234 Halfway House Midrand, Johannesburg, 1685 South Africa Tel: Fax: Email: Website:

+27 (0) 11 256 3600 +27 (0) 11 206 3762 info@nepad.org www.nepad.org

The NEPAD Business Foundation 3rd Floor, 395 Rivonia Boulevard, Rivonia, Johannesburg South Africa Tel: Fax: Twitter: Website:

+27 (0) 87 310 1888 +27(0) 87 310 1889 http://twitter.com/thenbf www.thenbf.org

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The Publishers would like to thank: The NBF, Lynette Chen, Derek Browne, Geoff Rothschild, Sandra Pires, Watson Hamunakwadi, The NPCA, Giles Eric Foadey, Samantha HamburgKalisa, Susan Heiman

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Disclaimer

All material is strictly copyright and all rights reserved. No portion of this publication may be reproduced in any form without prior written consent of the publisher. Whilst every care has been taken in compiling this publication, neither the publisher nor the NPCA, NBF and its associates give any warranty as to the accuracy of the content.

The views expressed in the publication are not necessarily those of the publisher, NPCA,NBF or its associates.

CONTENTS 3

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Message from His Excellency President of the Republic of South Africa, Jacob Zuma NPCA Foreword Dr Ibrahim Assane Mayaki, NPCA CEO NEPAD Business Foundation Foreword Stanley Subramoney, NBF Chairman Message from the NEPAD Business Foundation CEO Lynette Chen, NBF CEO Message from the World Economic Forum, Africa Elsie Kanza, Director, Head of Africa

GENERAL

REGIONAL INTEGRATION & INFRASTRUCTURE

32 Programme for Infrastructure Development in Africa (PIDA) 34 Presidential Infrastructure Champion Initiative (PICI) 36 Africa needs Huge Infrastructure Investment

Courtesy of African Trader Magazine 40 The Changing Mandate of DFI’s

CLIMATE CHANGE

51 The Strategic Water Partners Network (SWPN) 54 The Coca-Cola Company: A Long-Term Partner in Africa

GOVERNANCE & DEMOCRACY

HUMAN DEVELOPMENT 58 Improving Africa’s Governance 60 APRM

16 NEPAD @ 10 20 AID Effectiveness

Let Private Sector be a Catalyst for Sustainable Development

CROSS CUTTING ISSUES

AGRICULTURE & FOOD SECURITY 44 Leadership in Africa 46 Promoting Access to Pharmaceuticals in Africa 49 Water – a Fundamental Commodity

Rio TInto

22 CAADP

The Comprehensive Africa Agriculture Development Programme 26 SAADPP – Removing the Barriers 28 An end to Famine in Africa

64 Renewed Energy for Women’s Empowerment 68 AIDS

AIDS breakthrough threatened by budget woes 72 General Electric 73 Mott Macdonald 74 NEPAD Steering Committee Member Contact Details 78 NEPAD Business Foundation Members

contents

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Š2012. PricewaterhouseCoopers (“PwC�), the South African firm. All rights reserved. In this document, “PwC� refers to PricewaterhouseCoopers in South Africa, which is a member firm of PricewaterhouseCoopers International Limited (PwCIL), each member firm of which is a separate legal entity and does not act as an agent of PwCIL. (12-10657)

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We have a significant presence in every major market, both established and emerging, which makes the firm a global powerhouse with an unmatched ability to serve global, national and local clients. Our structure links local firms that possess an indepth knowledge of local business, accounting and regulatory requirements, with a worldwide network that can exploit the advantages of expertise on an international scale.

PwC is a leader in the provision of professional services on the African continent. With over 8 000 staff operating from over 70 offices in 27 countries, we have developed a global perspective, worldwide service delivery capability and a proven track record in meeting the highest client expectations and standards of excellence.

We have a diverse client base, covering the full spectrum of economic activities, and we provide a range of services to match. Our clients range from the continent’s largest and most complex organisations to some of its most innovative entrepreneurs – we are privileged to work with such an unrivalled client base. We serve many of the leading businesses in every sector on which we focus; those businesses value our rigorous, practical approach, characterised by a detailed understanding of individual client issues and by deep industry knowledge and experience. The breadth and depth of the skills and experience of our people, our size and geographic spread, and our international links ensure that we can provide value-adding solutions for business.

Africa Business Desk PwC’s Africa business desk assists clients with Advisory, Audit and Tax services. Through our extensive network of offices we are also able to provide advice on structuring international business operations and investments.

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7HOO XV ZKDW PDWWHUV WR \RX DQG ğ QG RXW PRUH E\ YLVLWLQJ XV DW ZZZ SZF FR ]D DIULWD[ ©2012 PricewaterhouseCoopers (“PwC”), the South African firm. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers in South Africa, which is a member firm of PricewaterhouseCoopers International Limited (PwCIL), each member firm of which is a separate legal entity and does not act as an agent of PwCIL. (12-10661)

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foreword

Stanley Subramoney

NEPAD Business Foundation, Chairman In 2011 Nepad celebrated its tenth anniversary.

The African Union gave Nepad a new impetus by establishing the Nepad legacy with new leadership and a renewed vision.

Africa has lost decades in trade amongst emerging economies, succumbed to various sometimes retrogressive aid driven initiatives and for the most part, lost ground due to issues of regional geo-political instability. As a result Africa sits with an onerous logistical cost for value and supply chains, making it virtually impossible for small entrepreneurs to benefit from a growing middle class consumer market. Compounding this economic phenomenon are the difficulties in which African businesses face in doing business on their own continent.

Even more critical is the need for renewal of business confidence in trans-boundary project implementation, regional regulatory stability and cooperation between governments relating to matters of jurisdictional processes.

But the issue at hand is not another review of such difficulties. We need to perceive correctly how we can overcome these potent challenges.

As Africans, we are in a position to fend off socioeconomic oblivion by using platforms such as NEPAD to effectively and in practice coordinate programmes that are necessary for our own people’s development in business. We have to address these challenges through increasing the regional coordination required to build private sector capacity and in effect, public sector support. The NEPAD Business Foundation and NEPAD Agency are two principle institutions that are endowed with the mandates and technical responsibility for continental programmes including The Comprehensive Africa Agriculture

Despite vast human and natural resources, the continent is still a marginal player in global trade.

To win in this new world regional integration is the key.

Programme (CAADP), The Programme for Infrastructure Development in Africa ( PIDA), The Presidential Infrastructure Champion Initiative (PICI) and The African Development Partnership Platform (ADPP).

A time for business, a time for African growth What really can the private sector do for Africa.

Africa has a new generation of leaders who must take responsibility for their own destiny. In the first instance, the private sector possesses vast skills, resources and technical competence to deliver Africa’s important projects. These skills could be engaged earlier on, during project conceptualization, pre-feasibility and planning in order to ensure viability. The private sector has to interact where it relates to policy issues that impact the delivery of these projects.

Trade is the vital link that can support the development of regional industries on the assurance of known dedicated markets, ease of cross-border movements of input and produce and, supportive infrastructure overall. These are some of the issues that initiatives such as the African Development Partnership Platform intend to address, led by the private sector.

The Tri-Partiate Alliance, the rules and opportunities Despite vast human and natural resources, the continent is still a marginal player in global trade.

To win in this new world regional integration is the key.

Africa has to set the business conditions it views as best fit for its own circumstances. Cross border rules, if harmonized and implemented, can open up significant opportunities in a tangible way.

The basis of our intra-African business should be less onerous amongst members of this great continent allowing the free movement of people and goods.

The opportunities for business growth should also not remain at a shareholder level alone. The opportunities for regional business should include innovative models to include smaller entrepreneurs

Trade is the vital link that can support the development of regional industries on the assurance of known dedicated markets, ease of cross-border movements of input and produce and, supportive infrastructure overall. in a process that will incubate Africa’s next generation of business people and leaders.

Tomorrow and Africa Africa is a vast and diverse continent and not a single country with a single leader. It commands a unique position on the world stage as an emerging market with high growth potential. It has a common vision enshrined in the New Partnership for Africa’s Development. We are at the point where we need to collectively support this vision in tangible ways through the NEPAD Business Foundation and the NEPAD Agency. Throughout this publication, the consistent message will be how continental programmes are positioned to integrate the private sector.

The AU – NEPAD action plan 2010-2015 defines key priority programmes and projects, anchored in the guiding principles. This is the road map for development where international, African public and private sector partners will have the most impact.

On behalf of the NEPAD Business Foundation and NEPAD Agency, I would like to invite business to participate in the tangible development of Africa.

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foreword

Lynette Chen

NEPAD Business Foundation, CEO Africa is on the move! With the finalisation of the Programme for Infrastructure Development in Africa (PIDA) and its related Priority Action Plan (PAP) and the Presidential Infrastructure Championship Initiative (PICI), the continent is ready to build the infrastructure required to bolster trade and industrial development.

Business has responded positively, with resounding interest in many parts of Africa in agriculture, resources, technology and transport. Growth in these sectors has been phenomenal in recent years and, as a region, we have attractive investment opportunities.

Africa is however perceived as a difficult continent on which to do business. This has affected the sovereign ratings of our economies, traditionally supported shorter term capital supplies, disincentivised intra African trade and placed onerous costs for business to operate.

This does not mean Africa is not attractive. As an economic region, Africa remains the fastest growing with its abundant mineral and natural resources. Various international businesses have a firm foothold on the continent, primarily in the commodities markets. Growth of up to 6%in the short term is expected on our continent and if this is to be achieved or sustained, there needs to be a greater ability to deal with private-public sector issues in a joint fashion.

A few adverse conditions are impeding Africa in achieving its potential and are resultantly limiting the utilisation of the private sector as a

Most importantly, the NBF has embarked on supporting the African Peer Review Mechanism through the working group on Corporate Governance in the ADPP. This group is set to compose the APRM report for South Africa, thereby directly supporting the South African government.

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foreword

means to attain an even higher growth rate.

Generally, we regard the private sector as more capable in the mobilisation and deployment of resources and possessing higher commercial project management competencies and skills. eLeveraging these competencies as well as having a fine balance between between public and private sector goals is very important for our socio-economic development achievable through systematic beneficiation.

The challenge of leadership The continent requires strong leadership at a policy and administrative level of government as well as within the private sector across all parts of Africa. The majority of adverse issues experienced by business stem from the lack of solid and consistent processes at the administrative layer of government. This stems from high level policy variability as a result of the transiency of the governments. Policy is highly susceptible to errant politics, which change the application of rules, increase the incidence of corruption and introduce the notion of political overtones in what should be otherwise regular processes. Businesses require certain levels of political stability and consistency In order to maintain viable operations and investments in Africa. Previously agreed upon programmes, projects and contracts should remain intact even though the government of the day has changed.

Leading by practicing The NEPAD Agency and NBF are working extensively in trying to create the conditions that can enhance the necessary interaction between the public and private sectors on policy dynamics.

The interest of the public and private sectors are not similar, but mostly are congruent. The short term focus that businesses may take is a result of the uncertainty experienced in longer term investments.

Through initiatives such as the African Development Partnership Platform (ADPP), the NBF aims to mobilise private sector’s voice in policy and non-policy issues that will enhance regional private sector investment. The ADPP is a

platform for dialogue and coordination between public sector, private sector, Development Finance Institutions (DFIs) and donor agencies to collaborate on development for the continent.

The NBF has established such working models in the agriculture (Southern African Agriculture Development Partnership Platform (SAADPP)), economic and corporate governance (African Peer Review Mechanism for South Africa) and water (Strategic Water Partners Network – South Africa (SWPN-SA)) sectors, which aim to deliver projects that have a win-win solution for both government and private sector.

The ADPP was launched by the NBF at an Absa sponsored annual NEPAD Ambassadors and Executives Dinner which was held in October 2011 under the theme, ‘the role of effective partnerships in the public and private sectors towards achieving sustainable economic development in the face of changing leadership dynamics in Africa’. This platform has helped inform how the NBF should strategically engage the public and private sectors in the future.

Through our “Removing the Barriers in Agriculture Programme”, the NBF is enabling rural women access to finance and markets, developing agri-entrepreneurs, supporting agriculture investment agencies to disseminate and support local investors and lastly, creating cross border conditions required to facilitate market access and input supply along development corridors. These efforts are concentrated in the SADC region with pilot projects being implemented in Mozambique and Tanzania.

Renewing commitment to NEPAD Heads of State and Government are showing

greater interest in developing the infrastructure required to unlock Africa’s potential and, with the finalisation of PIDA, a new dawn of growth is upon us all. The Priority Action Plan (PAP) has already identified the priority projects, assessed their current status and highlighted the project documentation necessary to bring these projects to markets. African Heads of States and Government in NEPAD have revived their support for these projects through championing targeted development corridors under the Presidential Infrastructure Championship Initiative (PICI).

The next step is for both business and the public sector to invest in infrastructure through Public Private Partnerships (PPPs) or through strategic partnerships.

The NBF is working together with the NEPAD Agency to drive awareness of PIDA and PICI within the private sector in order to secure the necessary buy-in and much needed investment to implement these infrastructure projects.

Strengthening business and therefore, developing Africa As noted earlier, a stronger and active private sector will be the basis of a stronger Africa.

There is scope for business to interactively and meaningfully connect with Africa. Connecting with Africa requires that business views local small entrepreneurs as part of its value chain.

Developing small businesses within Africa will create employment and improve sustainable livelihoods.

In Mozambique, the NBF is achieving this by connecting small entrepreneurs to large businesses through its value chain programmes, training agri-entrepreneurs and partnering to link rural women farmers to retailers. the African business has a responsibility to implement innovative programmes, not the traditional corporate social responsibility (CSR) approach, to ensure meaningful local economic development projects that will create jobs (employ local labour), support local SMMEs (procurement and integration of SMME’s into supply chain), real investment (partnering in joint ventures with local businesses), skills transfer and capacity building (training centres). This must form a core part of a new business model that is sustainable and takes cognisance of local socio-economic development issues and priorities. The business conditions for Africa will be favourable to companies that intimately understand and support the continent from a developmental perspective.

With a mandate to promote sustainable economic development in Africa through the private sector, weare confident that NBF’s programmes will move the continent forward. ■

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foreword

Elsie Kanza

Director, Head of Africa, World Economic Forum

SHAPING AFRICA’S TRANSFORMATION Africa’s outlook is bright and optimistic. The growth spurt over the past decade is expected to continue and the likelihood of Africa’s lion economies overtaking Asia’s tiger economies over the next decade is increasing. According to the IMF’s forecast for 2011 to 2015, Ethiopia, Mozambique, Tanzania, Congo, Ghana, Zambia, and Nigeria are expected to be among the word’s ten fastest growing economies. In 2012, Africa’s projected growth rate of 6% positions it as an attractive investment opportunity despite a stagnant global economy.

Over the past year macroeconomic and political stability across sub-Saharan African improved.

The birth of the new state of South Sudan raised the number sub-Saharan states to 48. Elections were held in fifteen countries in 2011 and, most recently in Senegal. However, the recent coup in Mali reminds us that the wave of peace and security across the region is fragile. While reforms to improve the environment for doing business are resulting in rising flows of foreign direct investment, rising inflation rates pose a threat to the otherwise positive macroeconomic outlook.

Africa is also growing from a relatively small economic base and development challenges such as youth unemployment, food security, health, access to energy and financial services remain important.

This year the 22nd World Economic Forum on Africa Forum is taking place in Addis Ababa, Ethiopia which is amongst others the diplomatic capital of Africa as it serves as the home for the African Union Commission and the UN Economic Commission for Africa. Ethiopia is also a prime example of Africa’s new frontier markets where

growth is being driven by agriculture. With the second largest population in sub-Saharan Africa, Ethiopia is also exemplary in exploring how growth can be translated into development.

We are bringing together over 700 leaders from all corners of the continent and around the world to share insights on the opportunities and risks underpinning Africa’s growth story. Our hope is that they will jointly determine which decisions and actions need to be taken to accelerate the current growth momentum and to transform it into a sustainable future for the continent. Accordingly, discussions in Addis will be centred on three thematic pillars.

The first pillar is Strengthening Africa’s Leadership, which will focus on the leadership priorities needed to shape Africa’s transformation as a new global growth pole. Sessions will also examine issues related to regional integration and new models that are addressing governance and institutional weaknesses.

Accelerating Investment in Frontier Markets is the focus of the second pillar, which will shed light on investment opportunities and risks in sectors that are emerging as growth drivers, such as agriculture and the retail industry. Sessions will also explore new models of partnership that are turning challenges such as infrastructure and access to financial services into opportunities.

The third pillar is Scaling Innovation for Shared Opportunities, which will examine successful innovations that are addressing Africa’s development challenges with a view to determining how these new solutions can be scaled up to benefit more citizens. Sessions will also highlight

the role that youth, women, and social media are playing in reshaping Africa’s social landscape.

Shaping Africa’s transformation will depend on new purpose, new solutions and new models of collaboration driven by Africa’s emerging leaders from across business, politics and civil society. Thus the World Economic Forum is delighted that its partnership with the NEPAD Business Foundation is encouraging private sector participation in critical development projects ranging from water, to agriculture and to infrastructure across the continent. The World Economic Forum congratulates Lynette Chen and her team on their important contribution to catalysing Africa’s agenda for growth and development. ■

The first pillar is Strengthening Africa’s Leadership, which will focus on the leadership priorities needed to shape Africa’s transformation as a new global growth pole.

foreword

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In 10 years

nepad has achieved a lot

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Ibrahim Assane Mayaki, CEO of the NEPAD Planning and Coordinating Agency, during a week of events in New York in October 2011 to mark NEPAD 10th anniversary.

In July 2001, African leaders adopted the New Partnership for Africa’s Development (NEPAD), the roadmap for the continent’s development. The following year a resolution of the UN General Assembly supported NEPAD as the main channel for UN assistance to Africa.

More recently, in January 2010, the NEPAD structures were fully integrated into the African Union as the NEPAD Planning and Coordinating Agency. Since its adoption a decade ago, how much has the plan achieved? Ibrahim Assane Mayaki,the chief executive officer of the NEPAD Agency, responded in a plaintalking interview.

Ten years after the adoption of the New Partnership for Africa’s Development (NEPAD), what is your assessment of it?

There are three major ways in which NEPAD may be assessed. First, NEPAD is the only development initiative available on an African scale. It has been with us for the past 10 years, yielding conclusive results in areas such as science, technology, agriculture and infrastructure. Ten years on, the initiative has just been re-launched with its recent integration as a development agency in the structure of the African Union. I am not aware of any other African initiative that has lasted this long and relied on a formal,

institutionalized framework such as this one, with a mandate focusing on issues of implementation.

My second point is that NEPAD is directly responsible, from the start, for some of the most important development strategies implemented in key areas such as agriculture, with CAADP [Comprehensive Africa Agriculture Development Programme], or infrastructure, with PIDA [Programme for Infrastructure Development in Africa], areas that are also deemed to be of the utmost priority. The fact that all African countries strive to implement the rules and norms of both strategies at the level of our continent is a great achievement.

My third point, little known, though, eyed with envy by Europe as well as other regions, has to do with the African Peer Review Mechanism. This original approach is about evaluating political or economic governance in countries that are willing to be assessed. It is a unique experiment, unmatched by any other region anywhere in the world.

Still, there are many people, particularly in Africa, who wonder what NEPAD is and what use it is.

The problem is that many Africans spend too much of their time repeating what the Western media says about the

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continent and about us. It will take some time to ward off this colonial way of thinking. Obviously, when you watch the way Africa is treated on a major news channel like CNN, the feeling is that Africa is plagued by misery and ruled by inept and corrupt leaders who hardly give any thought to the greater public interest. Many among us Africans tend to repeat what CNN and others have to say without taking a step back and reflecting about what we just heard. We seem to wallow in a kind of self-disparagement. Nowhere else is such an attitude so widespread than on our continent.

Unfortunately, this self-disparaging attitude does have a negative impact. We cannot afford to keep on offering our children a negative image of Africa.

We need to put things into perspective. A country like Rwanda has made significant progress while reducing its reliance on foreign aid. By mobilizing its own resources, Cape Verde has succeeded in becoming a middle-income country. Judging from the design and implementation of its new constitution, Kenya is now making significant progress in terms of governance. Botswana refuses to appeal for foreign aid, with many other countries following its example.

But to return to NEPAD, the plan remains an abstraction for many ordinary Africans. Why? NEPAD remains an abstraction because people do not know what it’s achieved, since NEPAD’s achievements were not communicated. This has to do with the wider issue of public information about Africa.

If you look at one of our most recent publications reviewing NEPAD’s achievements over the last 10 years, you will note that we succeeded in the

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many areas I mentioned earlier, and on many other issues as well. All this is little known. We need to develop strategies to increase the awareness of our achievements in the public. It is a major challenge.

Let’s speak in practical terms about two challenges that Africa is facing at the moment: famine in the Horn of Africa, and the lack of political change, which has at times resulted in revolution, as in North Africa. What does NEPAD have to offer to face up to these challenges?

First, on the issue of political change and democratization, let me say one thing: the number of countries organizing democratic elections in Africa rose sharply in the last 15 years. Also, across the continent, there are only seven countries facing very serious governance issues, out of a total of 54. But all we hear about is those seven countries with problems, not the 40 or so other countries that are better rather than worse off.

About the famine threatening the Horn of Africa and the question of food security across the continent, let us not forget that most of our countries have seen their population multiplied five times in the past 50 years. Most countries also succeeded in reaching levels of agricultural production that were unheard of 20 years ago. Obviously famine is an issue, but if you look at the 54 countries of Africa, less than a dozen countries are actually concerned by the problem.

More important still, in the last five or six years, investments in the agricultural sector are on the rise. There is still a long way to go at the political level, or in terms of resources and the way these

resources are shared, or as to how producers may take part in the definition and implementation of policies. But we’re on the right track.

Upon hearing such arguments, many would be tempted to say that you’re overly optimistic.

How do you respond?

I am mainly realistic. I am trying not to overdo it, but my feeling is, quite simply, that when it comes to African issues, people tend to shun the more realistic approach because of the vision of Africa that is continuously being forced down our throats.

Africa has two major advantages: it possesses the most important pool of natural resources and has the youngest population in the world. It is the continent of the future. And if we do not want Africa to play its role, the trick is to instill in the elites the idea that they are incompetent, corrupt and responsible for all the misery around. This is certainly not true.

One last question, on the ideological choices of NEPAD: many analysts have noted that it draws mainly from capitalist, even free-market tendencies. Capitalism has been a formidable tool geared towards the production of wealth.

It has also generated sharp inequalities.

Wealth on the one hand, poverty on the other.

Is this the direction the continent is taking under NEPAD? I have often heard these arguments, but they are not in the least justified. The impression that NEPAD is a neoliberal programme stems from the fact that, when the active minority of leaders pushed for its creation, they sought recognition from the world’s most industrialized nations, the G7 (and

We cannot afford to keep on offering our children a negative image of Africa. We need to put things into perspective. A country like Rwanda has made significant progress while reducing its reliance on foreign aid.

By mobilizing its own resources, Cape Verde has succeeded in becoming a middle-income country.

G8 thereafter). This resulted in some confusion in terms of public information, as many people were led to think that if NEPAD was recognized by the G8, its philosophy had to be neoliberal. Since then the suspicion and accusation have stuck, in a way.

But NEPAD is not a neoliberal project. It claims that for African agriculture to develop, regional markets should be created and, in turn, protected.

This means that a number of different economic approaches are part of the project, such as protectionism. NEPAD also says that for the benefit of its own development, Africa should reintroduce planning as part of its economic policies. This is not what I would call “neoliberal” in terms of policies. I should also add that NEPAD claims that the free market has demonstrated its limits, and that it has become necessary to reinvent a development state in Africa. You will agree with me that this does not have much to do with a neoliberal approach either. ■ Interview culled from the UN African Renewal Magazine

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Let the Private Sector be a Catalyst for

sustainable development

Lars Thunell, Executive Vice President and CEO, International Finance Corporation It may come as news to some, but multilateral and bilateral development banks have increased their financing of the private sector fourfold over the last decade, boosting their annual combined investment from $10 billion to over $40 billion. This has been welcomed by most of the development community, although the debate on the balance between traditional development assistance to the public sector and donor support of the private sector continues.

At IFC, the largest multilateral development bank, we have been at the center of this discussion, promoting the important role of the private sector in sustainable development. Recently we coordinated with 30 other multilateral and bilateral development finance institutions on a study – International Finance Institutions and Development through the Private Sector – which highlights the “virtuous circle” of public and private sector cooperation for development. As experts gathered in Busan, Korea for the Fourth High Level Forum on Aid Effectiveness in November 2011, the private sector had a seat at the table for the first time. This could be a turning-point, where we move from aid effectiveness to development effectiveness, while recognizing the mutually supportive roles of the private and public sectors.

There is no question that governments continue to be essential for development. They provide critical services for their populations, such as health care, education, infrastructure, and social safety nets. They also create the enabling environment for the private sector by ensuring property rights and contract enforcement, security, and macro-economic stability, as well as the proper regulatory framework. Governments’ role is to provide leadership for economic development

and to ensure that it is shared by all segments of society. Grants, multilateral and bilateral finance, and technical assistance can help those countries that do not have adequate resources or expertise in this critical task. But governments can’t do the job alone—they are only part of the recipe for development and poverty reduction.

The private sector is and must be a source of growth and opportunity that will allow people to improve their lives. While the public sector can create a sound basis for development and a good environment for investment, the private sector will generate the vast majority of jobs, help improve public services, and ultimately provide most of the tax revenues that the public sector needs.

So where do development institutions come in? As the IFI report points out, they play a critical role in supporting the private sector. Firms in developing countries need financing to expand their operations, as well as better infrastructure, improved business regulations, and skilled employees. Without these, they are not able to grow, especially in the more difficult environments where poor people live and work. Development institutions have experience working in these environments and are willing to provide capital where private markets may be risk averse. They provide advice to improve markets and make projects bankable and sustainable, attracting other investors by providing comfort and risk assurance. Moreover, they can help make private sector development more inclusive, and promote the high environmental, social, and corporate governance standards that allow projects to be sustainable.

To name just a few examples highlighted in the report – development institution funding has extended mobile phones to rural areas of Papua

Nomcebo Manzini is a busy woman. As the regional director for Southern Africa and the Indian Ocean islands of the UN’s recently created Entity for Gender Equality and the Empowerment of Women – popularly known as UN Women – she is constantly on the road from one country to another, addressing public gatherings, attending conferences and strategizing with government officials and women’s activists alike. Africa Renewal’s managing editor, Ernest Harsch, was fortunate to catch Ms Manzini at her home in Johannesburg, South Africa, in late March, during a brief stopover in her travels.

New Guinea, with all the benefits that improved communications can provide. In Senegal, publicprivate partnerships are putting in place the essential infrastructure for growth, and in India they are providing improved housing for slum dwellers. And at a crucial time in Egypt, equity investments have created jobs, while in Brazil microloans and training have improved the lives of street vendors.

Of course, at a time of scarce resources, some ask: Can donor governments afford to support the private sector as well as the public sector? The answer is yes, since in large part development institutions are self funded, using repayments from their investments to support new projects. In fact, as a result of their success, they have had limited capital needs. While substantially increasing their investments, most have not had significant capital contributions for decades. By contrast, aid to governments usually needs to be funded every year. Furthermore, since the enterprises supported by development institutions provide substantial tax revenues to their host countries, the need for development assistance to the public sector is reduced.

In summary, supporting the private sector with judicious investment is a win-win proposition for donor governments and developing countries.

A small amount of initial capital, with some well targeted advisory services, can marshal the talents and finance of private sector investors to create economic activity that ultimately is selffinancing. This should not be surprising – it is one of the historic paths to development. ■

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Agriculture and food

CAADP

Comprehensive Africa Agriculture Development Programme After decades of economic stagnation and chronically malnourished people, Africa’s leaders are intensifying efforts to find sustainable solutions to hunger and poverty through more wealth creation and growth oriented strategies. In much of Africa, agriculture is at the core of these strategies.

The policy framework on this vision and strategy is the Comprehensive Africa Agriculture Development Programme (CAADP), established as part of NEPAD and endorsed at the African Union Heads of State and Government Summit in 2003.

The CAADP notes that the high economic growth rates envisaged by NEPAD cannot be realized unless farm production and productivity is significantly increased. Higher farm output including efficient and viable production systems will directly impact on reducing hunger and bring down the cost of food imports. It will also have wider economic benefits, from stimulating rural incomes to providing raw materials for African industry.

Farmers’ yields have essentially stagnated for decades. The reasons for such stagnation are multiple, continuing dependence on uncertain rainfall, nutritional deficiencies in Africa’s soils, small and dispersed domestic markets, the

instability in world prices for African agricultural exports, the small and fragmented farm units, farmers’ frequent lack of organization, the lack of rural roads, neglect of the particular needs of women farmers (who produce most of the continent’s food), and the effects of HIV/AIDS. CAADP as one of NEPAD’s critical integral policy frameworks through which the NEPAD agency aims to stimulate and support deep-seated transformational changes in how agricultural business is done in Africa.

Agriculture has been starved of investments.

Many African governments devote less than 1 per cent of their budgets to agriculture with a lot of agriculture financing issues left to development aid financing.

In 2003, only 3.2 percent of African countries were spending at least 10 percent of their budgetary allocations on agriculture. This figure increased to 33.3 percent in 2006 before slightly dipping again to 25% in 2007. Today, ten of the 53 African countries have reached the 10 percent target and many more have increased their allocations from below 5 percent to between 5 and 10 percent range. Still, most countries have generally stayed where they were before, but there is an overall upward trend which indicates that countries are responding to the Maputo declaration.

Overall donor aid levels have also declined, since donor priorities have simultaneously shifted away from agriculture toward other sectors. From 2000 up to now the trend has been “positive”; but in last 2 years some decline is noted possibly as a result of the financial crisis Clearly to achieve Africa’s growth and development goals, a diversification of sources of financing needs to be encouraged, increasing not only allocations from national budgets and donor agencies, but also by tapping the private sector by urging it to invest in agribusiness in Africa.

But why should the private sector get involved in investing in Africa?

Martin Bwalya is the head of the CAADP initiative and we asked him a few questions around this issue.

Clearly there is a moral imperative for stepping up the funding of agriculture but why is the development of agriculture so important for Africa and where does the private sector fit in?

Agribusiness is key for creating wealth and employment in Africa and therefore provides, yes, “moral imperative”, but just as much “business sense” to invest in agriculture. Agriculture is the mainstay of most economies. Millions of smallholders depend on farming for their livelihoods, it underpins food security and poverty alleviation efforts, and supports wider economic development. Agriculture also underpins economic growth for most economies as it provides a significant source of wealth into the economy – and the potential is huge.

However, with the recent trends in global finance environment, development financing (which is the funding that African agriculture has been dependent on for the last four or five decades) will not be the same both in terms of available amounts and financing decision instruments. In the emerging world economic and finance order, , beset with its own problems, implies Africa has to innovate mechanisms for sustainable financing for agriculture, in particular, and development, in general.

It has become clear, that Africa has to identify and pursue new and different sources to finance its growth and development agenda. It is also clear

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CAADP promote inclusive dialogue and consultations across concerned parties, from governments, to donors and the private sector, around shared vision by building partnerships and getting the right people talking to each other about the right things – like creating a secure, credible environment for private sector investment financing.

that for such innovative financing, two issues come to the fore. These are “private sector investment financing” and “inward looking strategies to strengthen public and domestic private sector financing”. This implies radical review in policies and investment decisions. Africa will need to look further and deeper than “just where the next cheque is coming from”, i.e. explore for sustainable mechanisms for effective financing and as well as business driven investments with attractive returns on the investment. You are looking at ensuring an environment which makes political sense and even more so business sense to attract increased private sector investments into African agriculture.

And where does the CAADP initiative fit into this?

CAADP, and NEPAD overall, want the private sector to look at agriculture on this continent as a commercially viable venture. Agriculture as a source of wealth creation – important to both political and economic aspirations – has greater potential to provide stable and significant source of access to income for the populations and thereby a means to strengthen standards of living. There are also huge opportunities for agriculture to build its own capital to reinvest in itself.

A central goal of CAADP is accelerating agricultural production in Africa, with the target set at 6 percent

average growth per year. But it won’t stop there.

For agriculture to be profitable, value needs to be added to planting and harvesting or rearing of livestock. Previously this is where the process stopped, with goods being unable to get to market or goods that reach the market still in their raw state.

CAADP is promoting a value chain approach, highlighting other profitable agribusiness opportunities being established along every link, from demand, to production, to consumption, with opportunities for areas such as agriprocessing.

Storage and transportation are also areas that can be exploited.

There is growing demand for food and other agriculture products which will not diminish and Africa has the capacity to provide this. Africa is still untapped potential. We have to learn that profit is not always a dirty word.

So how does CAADP go about doing this?

CAADP is not just about mobilising resources for the agriculture sector. It aims to stimulate systemic transformation in “the-way-business-is-done” in the sector. This means critically examining and transforming institutional arrangements and policies across the sector.

CAADP is also stimulating and facilitating support for institutional reforms in public sector institutions in terms strengthening and aligning their capacity and ability as able partners in public-private financing and technical partnerships. On the technical side, CAADP is facilitating strengthening planning and decision making systems, especially as aspects such as link to and internalising evidence-based systems and tools in planning and decision making processes, mainstreaming and strengthening accountability mechanisms including capacity for data generation and analysis; human capital development as well as alignment and integrating of agriculture development investments alongside development investments in sectors such as infrastructure, education and health.

Addition to drawing attention to strengthen farmers’ capacity on new practices and technologies, CAADP is also highlighting desired support in building and aligning capacity in agriculture related industry including smallholder traders, transporters and agro-processers.

So, in summary, CAADP is stimulating and support the transformation in agriculture development models through three interrelated results areas, namely: a Enhanced quality of the investment plans and programmes b Aligned and supportive policies and policy design mechanisms c Stronger, appropriate and aligned institutional capacity for effective and efficient delivery of results. ■

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saadpp

The Southern Agricultural Development Partnership Platform (SAADPP) The NEPAD Business Foundation (NBF) recently launched the Southern African Agricultural Development Partnership Platform on 14 February 2012 with donor funding provided by the United States Agency for International Development (USAID). The SAADPP is a response to businesses’ need to increase investment in agricultural value chains in Africa, where potential lies.

The structure will facilitate research, dialogue and advocacy, thereby promoting stronger private and public sector interaction. It (SAADPP) will investigate and advocate for policy and non-policy solutions to removing agricultural investment constraints in Southern Africa. Through SAADPP’s meaningful private-public interactions, the structure will enable new partnerships that will explore emerging opportunities along the agri value chain in Southern Africa, an initial focus region for the programme.

The challenge of African agriculture The past decade has seen at least 6 African countries rated in the top 10 world fastest

Collaboration, cooperation, coordination, and communication between the private and public Actors …a new foundation for sustainable agriculture development in Africa.

growing economies with the continent’s growth at averaging 6% GDP per annum. The African Development Bank estimates that over 300 million people across Africa are now middle class.

Indeed, this growth must be celebrated; however it is the majority of the African people (over 35%) living below US$2 dollars a day that must concern Africa. Unfortunately Africa’s high growth rates have been accompanied by increasing inequality affecting a number of low-income states. As such, the sustainability of Africa’s current growth cannot be guaranteed. Consequently; poverty, unemployment, food insecurity, under-nutrition and HIV/AIDS continue to burden vulnerable Africans across the continent.

see to create sustainable agribusinesses and provide the much desired food and nutrition security. In recent years, at least 29 countries have embraced the Comprehensive Africa Agricultural Programme as a clear demonstration of Africa’s resolve to address food security and wealth creation objectives through primary development and growth in the agriculture sector.

Among other fiscal interventions, by signing the CAADP Compacts, African states commit to contribute at least 10% or more of their national budget in pursuit of 6% average growth rate in agriculture. Countries are required to create the necessary enabling environment through policy and institutional reforms.

Numerous African states especially in subSaharan Africa have identified agriculture as one of the few sectors that can transform the African economy while providing not only sustainable but also equitable economic, social, and environmental benefits at the household level. Over the years, billions of dollars have been invested in this sector through donors, government and the private sector in efforts to

Government and business collaboration in the agri-sector Indeed the harvest is plenty but the workers are few. The targets set for Africa’s agriculture are high but not far reaching. Private and public sectors lack the resources or incentives to fully develop the agricultural sector independently.

Communication, coordination, cooperation and most importantly collaboration between the private and public is now more necessary as foundation to support and facilitate sustainable and equitable agricultural growth in Africa.

Governments, on their own, will not be able to deal with the agricultural development and food insecurity challenges. Other partners, including and especially, the private sector have an invaluable role to play. The private sector is generally more efficient in making investment decisions, implementing viable projects and successfully establishing businesses and farming enterprises. The private sector is one of the key players in agricultural development and production. The skills, experience and financial muscle of the private sector have not been effectively used for the benefit of agriculture development and food security.

Major barriers to the private sector’s involvement have primarily been policy and non-policy induced constraints (government administration) in the sector. Business’ role in ensuring food security

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(production, access) is critical and could be leveraged even further through the development of enabling policies and targeted regulatory reforms in Southern Africa.

Improving agriculture investment through public-private collaborations The SAADPP is a private sector-led developmentoriented policy dialogue and investment partnership structure aimed at mobilising, institutionalising and increasing the voice of private sector inagricultural development and investment policy processes in Southern Africa. It is an initiative to address agricultural development and investment bottleneck in the region. By ensuring political support, commitment and buy-in from the highest levels of governments, the SAADPP aims to facilitate responsive and focused planning and collaboration between public and private actors.

The SAADPP will mobilise the private sector within agriculture and related sectors such as water and infrastructure, towards becoming active investment and development partners with others (i.e. governments, SADC Secretariat, NPCA, NGOs and civil society organisations, regional development institutions, donors, UN Agencies, etc.) to develop a sustainable agriculture sector in Southern Africa.

The main objective of the SAADPP will be to mobilise and support trade associations, farmer organisations, agri-businesses, agro-processors and other private sector organisations operating in Southern Africa, to take part in a collaborative effort to enhance sustainable agricultural development in the region. The SAADPP will follow on emergent policy recommendations that require policy adjustments, development and implementation with respective and relevant policy making bodies to ensure concrete results. SAADPP activities will open doors for new agricultural and business opportunities in Southern Africa while facilitating local agribusiness and farming communities to guarantee long-term inclusive, sustainable and equitable development.

The SAADPP will also help facilitate responsive and focused planning and collaboration between

public and private partners including governments, development agencies and social partners, thus helping to facilitate the strengthening of the private sector across the region. Overally the platform will emphasise the identification, analysis and removal of investment constraints along the entire agri-value chain clustered into four distinct priority working groups which are commodity values-chains (e.g. maize), trade and investments issues, capacity building and rural infrastructure. The structure transverses other key cross-cutting issues including advocacy for governments’ uptake, information and sharing of best practices, promoting good governance, supporting and facilitating financing opportunities, and result based monitoring and evaluation activities.

Extending our reach through strategic relationships There are numerous institutions already engaged in efforts aimed at an increased investment and involvement of the private sector in agriculture in Southern Africa. Developing synergistic partnerships with such institutions will have to be undertaken to allow the SAADPP to extend

its reach in identifying and addressing issues that constrain private sector investment and growth. Institutions as the NEPAD Planning and Coordinating Agency (NPCA), Grow Africa Forum, farmer organisations, trade associations and agribusiness chambers, SADC governments, agribusinesses, the Southern African Development Community (SADC Secretariat), Centre for Coordination of Agricultural Research and Development for Southern Africa (CCARDESA), the Food Agriculture and Natural Resources Policy Analysis Network (FANRPAN), the United Nations’ Food and Agriculture Organisation (FAO) and Development Programme (UNDP are central to this enhanced collaboration.

The SAADPP is not a panacea to dealing with all private sector investment challenges in agriculture within the Southern African region. Instead, the SAADPP is an attempt to institutionalise, consolidate and strengthen the voice of the private sector in shaping agricultural development and investment policy in the region, towards a conducive and favourable environment for business’s sustained involvement and growth. ■

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Agriculture and food

An end to

Famine in africa

Thierry Tanoh, Vice President for Sub-Saharan Africa, Latin American and the Caribbean, and Western Europe, IFC, member of the World Bank Group.

The famine in the Horn of Africa is one of the worst human tragedies of recent times and demands our immediate assistance. This is not the first time the international community needs to help, but it could be the last. Africa has 60% of the world’s remaining arable land and millions of dedicated farmers; all they need are the tools, infrastructure, and know-how to unlock the continent’s tremendous agricultural potential.

There is no reason, and no excuse, to leave the survival of millions to the mercy of the weather.

Water, that other key input for agriculture, is also a major constraint in some regions of Africa. Most countries are primarily concerned with increasing supply, but some are also starting to focus on demand management. There are a number of ways of increasing supply, such as developing new sources of ground and surface water, use of wastewater near urban areas, rainwater harvesting, and reuse of agricultural drainage. Demand can be reduced mostly by better management and innovative irrigation techniques such as precision and drip irrigation.

Emergency help can address the present crisis, but this will not solve the fundamental problems of inefficiency and low productivity. We need new solutions, and fortunately they are at hand. African governments are starting to reduce regulatory barriers to create an enabling environment for private sector investment in agriculture, and risk management and hedging tools are being set up to deal with drought, floods, and price. For example, in Kenya, through the Global Index Insurance Facility, farmers have access via mobile phones to insurance that covers them against drought or excessive rainfall.

Most of all, the development of modern agriculture in Africa requires better infrastructure. You can have the best produce, freshest flowers or most tender beef in the world, but it means nothing if you cannot get it to market without spoilage or excessive cost. Cold storage may be lacking because there is no electricity, trucks may get stuck on impassible roads, and inefficient ports may leave container loads of food rotting dockside.

These kinds of initiatives will encourage the flow of resources into agriculture, be it for the agribusinesses necessary to feed Africa’s growing cities or for smallholders who need better seeds, fertilizer and market roads. Much of this is not new for more developed regions, but it needs to become standard practice in Africa, now that banks and investors have woken up to the opportunities on the continent.

The obstacles are many, and go beyond weather and price volatility. Access to land, land titles, and lender security are among them, along with low skills, lack of innovation, poor infrastructure, and little funding. But all are solvable given the right tools. One of these is finance, for without this little can happen.

For local banks to expand credit they need the right incentives. These include access to credit bureaus and rating agencies focusing on farmers, risk sharing facilities targeting smallholders, and advisory services to provide capacity building and education. Innovative financing techniques such as structured trade finance, warehouse receipt finance, and supplier finance are already in place or being developed. For example, through the Global Warehouse Receipt Program farmers can now use the receipts from depositing their produce in warehouses as collateral for loans. Local banks also need direct support. For example, IFC is investing $25 million in Zambia National Commercial Bank to increase access to finance for small-scale entrepreneurs and rural agribusiness companies who contribute a significant portion of Zambia’s economic output.

And while we help the continent become the agricultural powerhouse it should be, let’s assure that this development is based on inclusiveness and environmental and social sustainability. Inclusiveness means that investments ensure equitable sharing of benefits between producers and consumers, and that they include smallholder participation and linkages to markets for inputs and outputs. Environmental and social responsibility means that investors conduct their business in an environmentally and socially responsible manner that takes into account the interests of the host country, local communities and the environment. More and more of them are recognizing that this is not only good, but that it is also good business.

All this can be done, and long term food security should be only an intermediate goal on the road to a booming agricultural export sector for Africa. It has happened elsewhere and there is no reason not to act now, and to act quickly. ■

We also need smallholder farm mechanization models to improve efficiency and increase yields.

For instance, farmers can be grouped together to pool their production and negotiate a favorable off-take agreement and use the receipts for leasing equipment such as tractors.

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supplied compliments of www.DiplomatAfrica.org

www.airbotswana.co.bw

Few airlines in the world could have been established so quickly and contributed so centrally to the development of their home countries as has Air Botswana.

The need for

pida

The challenge Deficient infrastructure in today’s Africa is sapping its growth. This is a continental problem that requires a continental solution.

In most of Africa, poor road infrastructure accounts for investors deciding to look elsewhere.

Only 34% of sub-Saharan Africa’s rural population lives within two kilometres of a paved road, compared with 50% in other parts of the developing world. Transport costs are higher by up to 100%. The cost of transporting goods and products to markets are two to four times higher per kilometre than they are in the United States, and travel times along key export corridors are two to three times as high as those in Asia.

Statistics show that every fifth African needs at least five hours to get to the nearest market.

Africa’s abundant energy resources in oil, gas, coal, and especially hydro-power are unevenly distributed across a compartmentalised continent, resulting in under exploitation in some areas and scarcity and inordinately high expenses in others.

As energy resources go unexploited, demand goes unserved, impeding Africa’s human development and taxing its businesses. Only 30% of the population has access to electricity, compared to 70–90% in other parts of the developing world.

Current levels of water withdrawal are low, with only 4% of water resources developed for water supply, irrigation and hydro-power use, and with only about 18% of the continent’s irrigation potential being exploited.

The Internet penetration rate is only about 6%, compared to an average of 40% elsewhere in the developing world.

Deficits like these have a clear impact on African competitiveness: African countries, particularly those south of the Sahara, are among the least competitive in the world, and infrastructure appears to be one of the most important factors holding them back.

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infrastructure

Added to this are the conflicting policies and practices which further hinder international trade, compounding the impact of poor physical infrastructure. Each region has its own infrastructure policies, as well as its own experience of infrastructure and regional projects under preparation and implementation.

Although Africa’s framework of continental and regional policies is fundamentally sound, those policies have not been thoroughly and consistently written into national legislation, even after treaties are signed and ratified. Where regional and continental infrastructure policies do appear in national legislation, too often they are not enforced.

At best, continental and regional policies approved by ministerial committees or conferences of heads of state, are no more than declarations of intent— intent to improve the delivery of common goods through continental integration; intent to facilitate trade and connectivity through harmonised standards and regulations; intent to cooperate on planning and delivering essential parts of regional networks that all agree are desirable.

But at every step, harmonisation is voluntary. In the absence of formal legal authority to see that continental and regional policies are written into effective national laws and regulations and to compel national authorities and utilities to follow through on their commitments, the regional institutions must rely on cooperation, consensus, and good will, which too often are in short supply.

As a result, what is missing are consistent national policies, regulations, and norms among countries that share regional infrastructure. The ensuing profound lack of harmonisation of laws, standards, and regulations complicates the processes of planning and financing vital regional projects while impeding cross-border economic activity.

The solution The Programme for Infrastructure Development in Africa (PIDA) is an initiative being led by the

African Union Commission (AUC), the NEPAD Secretariat and the African Development Bank (ADB). PIDA, was designed as successor to the NEPAD Medium to Long Term Strategic Framework (MLTSF), to develop a vision and strategic framework to accelerate the delivery of Africa’s current and future regional and continental infrastructure projects in transport, energy, information and telecommunications technologies, as well as trans-boundary waterways.

Its projects and studies are designed to support Africa’s regional and continental integration, boost intra-African trade, and raise African competitiveness in the global economy.

The PIDA sector studies started on 20 May 2010 with a total budget for the PIDA Study at about €7.781 million. It was to have duration of eighteen (18) months, to be completed at the end of 2011.

PIDA sets out short-term goals to be achieved by 2020, medium-term goals to be achieved by 2030, and the long term ones by 2040. It is based on expert projections that African countries will grow by an average of six percent a year until 2040, driven by a surging population, increasing levels of education and technology absorption. This implies that, over 30 years, the GDP of African countries will multiply six-fold. This continuing growth and prosperity will swell the demand for infrastructure.

In the shorter term, PIDA will focus on its Priority Action Plan. This dwells on fifty one regional and continental infrastructure projects to be implemented by 2020. These projects are designed to meet Africa’s more immediate regional and continental infrastructure needs.

PIDA is also expected to play a critical role in reducing Africa’s infrastructure deficit. The continent’s infrastructure remains the least developed in the world.

The result of the PIDA study will enable African stakeholders to speak with one voice for continental and regional infrastructure

development based on a common vision and agenda.

Difficulties in the physical implementation of regional projects The PIDA Study assembled and reviewed a panel of case studies of the efficiency of current regional infrastructure in each sector, as well as regional projects and programs under preparation or under construction.

The review revealed that the lack of alignment and financial problems were the principal drags on efficiency.

1. Lack of alignment with national and regional priorities is a primary failure factor, as good ideas become orphan projects. For example, segments of the Trans-African Highways (TAH) that correspond to the priorities of the country involved have been built, but segments that do not fit country priorities have stagnated.

2. Finding financing is another problem. Raising finance and reaching financial closure are complicated for regional projects (even those undertaken in the public sector with grant financing) because of the number of actors involved. At every turn, there is the risk that the interest of one partner will waver or that a commitment will not be met. Experienced project promoters and developers are needed to help projects clear the many hurdles to financial closure.

Financial distress bedevils regional projects in the transport and power sectors. Regional railways, even those under private concession, earn revenue that is insufficient to cover operating expenses, provide maintenance, or support expansion. Road maintenance suffers from lack of financing even where roads funds have been established. Cashstarved utilities make unreliable offtakers for fledgling regional projects. The result has been steady deterioration of existing infrastructure to the point where portions of the network have become unusable.

There are exceptions to this dismal picture.

Participants in the ICT sector enforce strict payment discipline through prepayment

of services. Other examples are the wellmaintained Maputo corridor (a toll road built and operated by a private group) and regional facilities (such as container ports) that cater to creditworthy clients. Implementation of infrastructure is always complex—the more so in the case of regional projects with many stakeholders.

• Provide options to cope with future traffic increases beyond 2020 to 2040 (where growth rates of 6-10% per year lead to increase factors of 6-10 from current trade levels) This challenge concerns especially transit traffic from landlocked countries, which in some cases is expected to increase by 10–14 times over the next 30 years.

Africa will need to implement large investment programs in the short, medium, and long term for the transport sector in order to raise transport infrastructure efficiency and capacity along ARTIN corridors and for the ARTIN air transport system to efficiently satisfy the expected transport demand, even with the added capacity from planned projects.

Second, how to develop regional corridor infrastructure in a way that includes: • The identification and development of new port locations, in combination with railway and/or road transport • The potential introduction of standard gauge railway lines • The increased use of multimodal transportation • The best use of PPP initiatives, particularly for providing infrastructure investment for both port and rail facilities and for roads where the traffic justifies it.

• The development of efficient air services and air hubs, which will increase service levels and decrease costs.

• Policy challenges to ensure the funding and maintenance of infrastructure and efficient coordination of road and rail transport across borders, as well as border crossing facilities and processes that facilitate trade and regional integration. ■

The problem faced by the African continent is to select the best, more efficient corridors together with the best combination of transport modes in order to minimize total economic costs and reduce prices to shippers and passengers.

Two sets of challenges face the transport sector: First, how to create programs and projects that will: • Expand existing operations to handle 2020 trade forecasts (which involve increases by 100%-200% in many cases)

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Progress

with pici The 16th AU Assembly of the AU-NEPAD endorsed the Presidential Infrastructure Champion Initiative (PICI) aimed at accelerating the development of regional and continental infrastructure. The initiative comprises seven regional projects drawn from the AU/NEPAD Africa Action Plan and will go a long way in addressing the interconnectivity gap to unleash Africa’s potential.

The initiative be championed by Heads of State and Government, of which President Zuma is the convenor. South Africa has recently increased its infrastructure spend in the 2012 budget aiming to develop the backbone of trade, manufacturing and ultimately, economic growth with real jobs. This commitment by President Jacob Zuma will also go a long way in increasing inward and outward efficiencies relating to trade.

As a first step, the NEPAD Agency, as the technical coordinator and Secretariat for this Initiative, undertook a status analysis of the projects. This was augmented with field missions to the countries and sub-regions involved, where deemed necessary.

Below are the 7 projects and their progress: 1. Missing Link of the Trans-Sahara (Algeria): a. A 200Km missing link from Assamaka (border with Algeria) to Arlit in Niger. The total construction cost is US$100 million and this amount has already been committed by various lending institutions, with the Government of Niger required to provide US$8 million. Construction is scheduled to start in 2013 but it is possible that this date could be brought forward.Invitations for tender for the selection of the supervising consultant and the contractor will be concluded by the end of 2012. Construction will commence in January 2013 and the estimated completion date is December 2015. b. Optic Fibre from Algeria via Niger to Nigeria (Algeria): A 4,500Km terrestrial fibre optic cable from Algiers (2,700Km) via Niger (950Km) to Nigeria (850Km). A joint Declaration was signed by the three states in June 2010. Financing for the Algeria section is already in place, and the project is expected to start in 2012, with expected completion and commercialization in 2013.

Invitations for tender for the has gone out. The total estimated cost of the project is US$80 million, and it is scheduled for completion and to be operational in 2014. The Algerian Government has created a secretariat for the implementation of the project. Financing for the Algeria section is already in place, and it is also believed that the Nigerian Government has also secured financing for their component. The Government of Niger is currently reviewing their section of the project for possible financing 2. Dakar – Ndjamena – Djibouti Road/Rail (Senegal): This is a combination of the Trans-

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African Highway 5 (Dakar to N’djamena) and 6 (N’djamena to Djibouti) a total of 8,715Km. The feasibility study is ongoing and should be completed by the end of 2011. According to the interim report, 1,276Km constitute the road missing links on the Ndjamena to Djibouti corridor. The rail missing link along the entire Dakar-Ndjamena-Djibouti corridor is on average 3871Km. 3. Nigeria – Algeria Gas Pipeline (Nigeria): A 4,300Km of natural gas pipeline from Nigeria to Algeria via Niger. The feasibility study was completed in 2006, and in 2009 the NNPC (Nigeria) and Sonatrach (Algeria) agreed to proceed with a draft MOU between the three states and the joint venture agreement. The pipeline is expected to be operational by 2015.

The review of the Unincorporated Joint Venture Agreement (UJVA) is on hold pending the resolution of Sonatrach’s (Algeria) participation in Nigeria’s upstream activities. The estimated project cost of the pipeline is US$10billion (48”) & US$13.7 billion (56”) line diameters (2006) respectively. The 2006 study estimated an internal rate of return of 15.5 – 25% (using the oil price bench mark of US$70 per barrel), and an equity payback period of 4 – 7 years (based on the line diameter option). All terms and conditions will be agreed by the parties before the financial closure of the project.

Revalidation of the project’s viability is currently being carried out by the Corporate Planning and Strategy Unit of the Nigerian National Petroleum Company (NNPC) 4. Kinshasa – Brazzaville Bridge Road/Rail (Republic of Congo): The project focuses on the construction of a fixed crossing linking Kinshasa and Brazzaville (DRC and Republic of Congo) ensuring continuity in railway and road traffic to the eastern border of DRC and beyond facilitating railway and road interconnections in Central, Eastern and Southern Africa. The feasibility for the road section started in May 2011 and it is expected to be completed in 2012. The feasibility study for the rail is expected to start soon. 2

5. ICT Broadband and link to Fibre optic into neighboring states (Rwanda): This project includes the UMOJANET (a cross-border terrestrial network that will connect African countries through broadband links) and UHURUNET (a submarine ring around the continent coastal countries linking Africa to the rest of the world). ACE (Africa Coast to Europe)/Uhurunet on the west coast is under development and will be completed in 2012.

Phase 1 business plan of Umojanet covers 12 countries in Eastern and Southern Africa, and 12 in West and Central Africa.

In September 2011, under the chairmanship of H.E. President Paul Kagame, Rwanda convened a broadband meeting in Kigali that brought the Ministers of ICT from the East African Community, the International Telecommunications Union, Telecommunications regulators as well as the leaders of Telecom companies and Internet service providers in the region. The meeting resolved to fast track development of broadband infrastructure in the region and to remove barriers and bottlenecks, both policy related as well as regulatory. In this regard, there have been follow-up meetings between the regulators in the region with a view to harmonize the regulatory environment for efficient ICT infrastructure roll out. Rwanda is also conducting a scanning exercise of ICT

and fibre optic projects in the region in order to identify potential bottlenecks for possibly intervention by the President.

6. North – South Corridor Rail/Road (South Africa): A review of all the studies that have been conducted within the North/South corridor has been undertaken. The purpose of this review is to clearly identify the implementation challenges of some of the projects, and most importantly, to prioritize the road and rail projects to be championed by South Africa.

7. Water Management, River and Rail Transport (Egypt): Technical consultations are ongoing with the Government of Egypt to define the nature and status of the project.

Moving forward NPCA will continue to coordinate this Initiative by convening another Technical Task Team meeting to develop implementation plans and strategies for each of the PICI projects. These plans and strategies will include effective public and private sector participation (PPPs), and other innovative financing mechanism such as domestic resource mobilization. In 2012, NPCA will also consult with Egypt as champion for the Water Management, River and Rail Transport, so that their specific projects within these sectors can be identified. ■

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Africa needs huge

infrastructure investment Courtesy African Trader Magazine

Africa will need about US$93 billion in infrastructure investment every year for the next decade if it is to play its part in the world economy and stimulate economic growth.

Yet, the continent’s dire need for roads, rail, ports and airports creates opportunities for the private sector to get involved, reaping not only financial rewards, but also those that come with helping the continent reach its potential.

One of the key challenges to African economic development is the lack of regional integration and infrastructure along the corridors that connect countries in the continent to each other, says the New Partnership for Africa’s Development Business Foundation (NBF) CEO, Lynette Chen.

“Regional integration is severely hampered, if not impossible, if the right infrastructure is not in place to facilitate intra-Africa trade across borders and regions,” says Chen. Intra-continental trade will “result in true sustainable economic development,” she adds.

Ebrahim Dhorat, a partner in Ernst & Young’s assurance division, says there are many opportunities for infrastructure development as it directly impacts on economic growth.

Infrastructure “is an important driver of economic growth because infrastructure is necessary for economic activity,” he says.

“Outside of the main cities in Africa, infrastructure is poor,” Dhorat says. However, this situation is being addressed. If the process is speeded up, companies will expand at a faster rate, he adds.

“Poor infrastructure adds cost to business, and some places are hugely under-serviced, simply because the cost of doing business there is too high. Businesses are being innovative about getting to these customers and consumers, but these methods are largely suboptimal,” Dhorat says.

Falling behind The Africa Infrastructure Country Diagnostics (AICD) study undertaken by the World Bank and partner organisations, which was completed in 2009 and updated last August, found the poor state of infrastructure in sub-Saharan Africa slows economic growth by two percentage points each year.

Africa’s Infrastructure: A Time for Transformation found that Africa has the weakest infrastructure in the world. “Modern infrastructure is the backbone of an economy and the lack of it inhibits economic growth,” says Obiageli Ezekwesili, World Bank Vice President for the Africa Region.

The report looked at the power, water, roads and information and communications technology (ICT) sectors. It found that Africa will have to invest US$93 billion a year for at least a decade to get infrastructure up to scratch – twice the amount that was initially estimated. Almost half the amount is needed to address Africa’s power supply, which is inhibiting growth.

“Regional integration is severely hampered, if not impossible, if the right infrastructure is not in place to facilitate intra-Africa trade across borders and regions,” argues Lynette Chen, CEO of the New Partnership for Africa’s Development Business Foundation (NBF).

The AICD report investigated 24 African countries, including Benin, Burkina Faso, Cape Verde, Cameroon, Chad, Democratic Republic of Congo (DRC), Côte d’Ivoire, Ethiopia, Ghana, Kenya, Madagascar, Malawi, Mali, Mozambique, Namibia, Niger, Nigeria, Rwanda, Senegal, South Africa, Sudan, Tanzania, Uganda and Zambia.

The report was conducted by a partnership of institutions including theAfrican Union Commission, African Development Bank, Development Bank of Southern Africa, Infrastructure Consortium for Africa, New Partnership for Africa’s Development (NEPAD), and the World Bank. Surveys were conducted among 16 rail operators, 20 road entities, 30 power utilities, 30 ports, 60 airports, 80 water utilities, and more than 100 ICT operators and ministries in 24 countries.

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The AICD programme aims to expand the globe’s knowledge of physical infrastructure in Africa, providing a baseline against which future infrastructure gains can be measured. It was launched by the Infrastructure Consortium for Africa after the 2005 Group of Eight summit at Gleneagles.

Connecting up Africa’s Infrastructure: A Time for Transformation found that ineffective linkages between different forms of transport modes, such as air, road and rail, are issues facing Africa’s transport system.

It uncovered issues such as declining air connectivity, poorly equipped ports, ageing rail networks, and inadequate access to all-season roads.

Only 40% of rural Africans live within two kilometres of an all season road, compared to some 65% in other developing regions, it says. Improving road accessibility in rural areas is critical for raising agricultural productivity across Africa.

The report also found a lack of competition in the trucking industry keeps road freight tariffs unnecessarily high, and red tape along international trade corridors results in trucks crawling at only 12 k.p.h. – as fast as a horse and buggy.

Graham Bishop, Rail Engineering Practice Lead at Mott MacDonald South Africa (Pty) Ltd, says there is an urgent need for infrastructure if Africa “has to play its role as a player in the global commodity market”.

Africa’s resource sector is booming, especially in the mining sector, which opens up the need for transport infrastructure developments to export resources. As a result, says Bishop, there is huge potential for private companies to become involved in rail, air, land and sea projects on the continent. Bishop says it’s vital to build north-

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south, north-east, as well as north-west corridors to enable minerals to be exported, and move machinery in and out of the continent.

Southern, Central and East Africa offer the most potential for infrastructure development because these areas are rich in mineral resources such as copper, iron-ore and oil, says Bishop.

There is a need to link up South Sudan, Ethiopia, Kenya, Uganda, Rwanda, Burundi and Tanzania to regional ports, as well as developing viable transport and logistics corridors to facilitate exports and imports, he says.

Work in progress Chen says part of NEPAD’s success has been the resurgence of commitment by seven African Heads of State to becoming “champions” of eight trans-boundary development corridor projects across Africa. The pledge was made by the Presidents of Nigeria, Algeria, Rwanda, South Africa, Egypt, Senegal and the DRC at the African Union Summit held in Kampala, Uganda, in July last year, says Chen.

She says the infrastructure projects include South Africa’s commitment to a North-South Corridor that includes road and rail projects; Algeria’s commitment to the missing link on the Trans- Saharan Highway, Egypt’s commitment to ports, rail and marine transport, and the DRC’s commitment to the Congo Brazzaville bridge, road and rail project.

The projects will be overseen by a Ministerial Committee and a Technical Task team with representatives from each country, says Chen.

Support from African Union Commission, the African Development Bank, the NEPAD Agency as well as other African development finance institutions is expected with the aim of completing the projects in five years, says Chen.

Political will and state backing is critical in the successful delivery of these projects, yet there are challenges such as cross-border trade and policy issues, the lack of technical and project management skills, and non-trade barriers such as governance and corruption, says Chen.

Bishop says other challenges include a lack of up to date up-to-information about what is happening in different regions and countries. There are also worries about perceived political conflicts, a lack of good governance in African countries and corruption among officials, he says.

“Most private sector players rely on hearsay information and not hard facts. For example, countries such as the DRC are considered ‘no go areas’ for security reasons, but there are other companies already doing infrastructure development projects there,” Bishop points out.

He says the private sector must learn to collaborate and work with local partners and companies that can provide them with vital information.

Funding needed About US$45 billion a year is being spent on infrastructure on the continent, a figure that is higher than initially thought, according to the AIDC. Most of the investment comes from African taxpayers and consumers.

Countries in Africa will need US$93 billion in infrastructure investment each year for the next 10 years.

Efficiencies must be improved to tackle waste, which could expand available resources by US$17 billion a year, says the AIDC. Yet, even if waste is eliminated, there will still be a funding gap of US$31 billion every year.

Low income countries would need to spend an extra nine percent of their gross domestic product every year to bridge the gap, while resource-rich economies such as Zambia and Nigeria would have to bump up spending by a more manageable four percent, says the study. “Fragile” economies would need to spend an extra 25%. To close the funding gap a wide range of sources will be needed: Public budgets, resource rents, local capital markets, private sector as well as traditional donor assistance, it says.

than five percent of global foreign direct investment projects, which doesn’t reflect the increasing attractiveness of the African growth story.

The African investment proposition needs to be effectively sold to international investors, and investors need to gain a granular understanding of the risk/reward factors of investing into and across different parts of Africa, says Dhorat.

A new plan Funding Africa requires an economic model that is different to other countries and regions, says Chen. “It should fundamentally address the needs of the people on the continent towards ensuring socioeconomic development and job creation,” she says.

However, countries with the greatest infrastructure needs are often the least attractive to investors, says the AIDC. Many of the countries in Africa will probably take longer than a decade to catch up on infrastructure and will probably have to use lower cost technologies.

There is a “major role” that the private sector can play to help implement state projects, says Chen. “The private sector’s resources, technical knowledge and experience will prove essential in developing long-standing projects in infrastructure for Africa.”

Action is urgently needed, the report argues, and the global financial crisis is underscoring the need for a massive effort to overhaul Africa’s infrastructure, says AIDC.

However, for the private sector to be successful, it must be more conscientious about the social realities of the African people, says Chen. Firms need to initiate and implement responsible social and economic development programmes that will benefit localcommunities, she adds.

Currently, funding goes into the continent from development finance sources such as the International Finance Corporation, the African Development Bank, the Development Bank of South Africa, as well as PPP (public-private partnership) projects, says Bishop.

Dhorat points out that Africa currently attracts less

“The private sector has the ability to bring the right combination of technical expertise and in many cases, the financial resources necessary to plan, implement and manage large infrastructure developments,” says Chen. The NBF works with African Union member states to develop PPP

opportunities that will benefit everyone, she says.

Chen says PPPs result in direct job creation and skills development, as well as improved access to health care facilities, roads, markets for smallholder farmers – particularly women – and overall spill-over development in many disconnected parts of Africa.

Bishop explains that PPPs provide security of investment opportunities for the private sector, assure governments of sovereignty of the infrastructure developed, and help to create employment and social development.

Companies can benefit from the opportunity to expand their “investment wings”, grow market share and improve profits, says Bishop.

Communities reap the benefits of employment, urban development and social development through poverty alleviation and the reduction of the gap between social economic classes, creating political stability.

However, says Bishop, governments first need to put a PPPenabling legal framework in place, which will aid them in sourcing finance. “Growth is relative to availability of foreign currency. If funds were available, growth could be very fast.”

NBF provides opportunities to access knowledge on development priorities for African countries, particularly in infrastructure. Such an opportunity is the NEPAD Infrastructure Conference, elaborating on Africa’s infrastructure needs and opportunities, which will be held on October 26 and 27 2011. ■ Courtesy of: www.africantrader.co.za

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The Changing mandate of DFIs Richard Combrink

What are DFIs? Development Finance Institutions (DFIs) are usually fully owned by government, often working with private financial institutions to increase private sector’s access to finance.

DFIs came into existence because government had to fulfil a role, or mandate, to provide finance to the private sector for investments that promote development and sustainable growth, as well as finance infrastructural projects. The purpose of DFIs is to ensure investment in areas where otherwise, the market fails to invest sufficiently.

DFIs include international, regional, national, and provincial institutions, with International Finance Corporation (IFC), African Development Bank (AfDB), South Africa’s National Empowerment Fund (NEF) and Eastern Cape Development Corporation (ECDC) being examples of each respectively.

When DFIs focus on providing finance through one main financial facility, they take on the form of microfinance institutions, community development financial institutions or revolving loan funds. DFIs fill the gap between financial aid and private

investment. They provide credit in the form of higher risk loans with longer maturities, equity, and risk guarantee instruments.

DFI’s usually have high liquidity because they are funded directly by government and reflows from investments, they are often exempt from paying tax on profits, and because of their direct or implied state guarantees they have very high credit ratings and thus have low costs of borrowing money.

How much funding is provided by DFIs? In 2005, total international and national DFI commitments totalled US$45 billion (US$21.3 billion of which went to support the private sector). In addition, DFIs provide almost US$200 million per annum on technical assistance to both the private and public sector to develop private investment projects.

IFC’s loan book to sub-Saharan Africa is 10% of their total loan book being US$2 billion of their US$20 billion assets under management. Britain’s CDC has about half of it’s investments in Africa, being almost £1 billion.

South Africa’s oldest DFI, at 101 years since inception, being the Public Investment Corporation, has over US$140 billion assets under management, with 25% invested in subSaharan African countries outside of South Africa.

PIC’s Isibaya Development Fund, focused purely on socially responsible private equity investments, and committed US$1 billion of its US$6 billion fund in 2011.

Another South African DFI, the Development Bank of South Africa (DBSA), with assets of almost US$6 billion, also has 25% investment in sub-Saharan Africa.

Traditional mandate of DFIs DFIs’ mandate requires them to invest in areas commercial banks do not, towards poorer regions and sectors and hence they face higher risks.

DFIs must help markets grow and seek to improve the investment climate, in order to demonstrate that enterprises can develop in economically

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challenging markets, thus contributing to sustainable development. However, since private capital must also be involved and their continued investment in future projects ensured, a commercial return must be achieved. DFIs thus seek an ‘optimum’ level of risk by balancing the cost of elevated levels of risk with the need to maintain liquidity sufficient to ensure strong institutional credit ratings and generate a surplus to support technical assistance and grants.

In order to balance this risk, large projects are financed in preference to supporting, for instance, the small-medium enterprise (SME) sector. Project finance is usually guaranteed by long term (25-year or more) take-off agreements, which cannot fail. SME businesses on the other hand are highly risky, take a lot of effort to procure a deal and require specialist sector knowledge as well as an understanding of entrepreneurial behaviour. Many DFIs rely on the investment reflows from their projects to reach self-funding status, and use this to partially subsidise any SME investments or other direct financial or nonfinancial assistance they provide. For example

in 2007, the Industrial Development Corporation (IDC), a South African DFI, had investments in 27 large projects representing 82% of assets under management, with the balance of assets in a portfolio of over 1,400 SMEs. IDC’s reflows in that year were almost equal to the assets under management at the beginning of the year, in spite of an average of 8% bad debt across the portfolio, none of which was from the large projects.

This is a typical profile of good-performing DFIs that have reached a position of self-funding, strong balance sheet, and persistent sound financial performance. These DFIs maintain relatively low risk while executing their mandate, mostly because they seek large projects with guaranteed returns, and treat the rest of their portfolio with much the same approach in assessing risk. In other words they apply project-type risk analysis even to their SME deals, thereby turning many applications away because they don’t provide sufficiently low levels of risk, and when they do fund the risky SMEs they charge high returns to match the riskiness of their investment. When DFI’s fund an SME that otherwise could not access bank loans,

they gain first mover advantage in growth but risky sectors. For instance many DFIs were repaid handsomely from their investment in Celtel.

Need for more direct impact Especially in the last decade, entrepreneurs have become increasingly frustrated with not

However, the most important note is that when young people begin to take ownership and responsibility for governance and systems of government, political leaders begin to listen. Leaders begin to introspect and question their resolve at the choices they make for their people. Young people begin to shape a new culture of discourse towards more open democracy and policies geared towards the interest of the people.

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being able to easily access cheap development funding. In countries like India analysis has shown that developing countries use their DFIs primarily to provide debt financing to companies with growth opportunities, and shy away from start-ups. Government has been noticing the poor performance of the smaller DFIs with delinquency rates above 40%, and are either consolidating them (e.g. Khula and SAMAF are merging with IDC in South Africa) or reducing the funding to the non-performing DFIs, unless they can show a greater impact in their investments.

DFIs should not lose sight of their responsibility to expand access to financing through consistently searching out underinvested countries and sectors, while working to maximise the social outcomes of their projects. It is a difficult and sometimes contradictory mission, but one which has proved remarkably successful.

Its mandate is to provide financial, technical and other assistance to achieve the objects of the bank being: to catalyse, expand and enable the delivery of basic social services, provide and build human and institutional capacity, promote broad-based economic growth and engender sustainability (triple-bottom line). However, its new mission is to advance development impact by expanding access to development finance and effectively integrate and implement sustainable development. The new approach is moving away from passive and fragmented, individual projects at local level towards working more with national departments and SOEs to accelerate and scale up infrastructure development. The DBSA’s Development Fund is aimed at supporting municipalities in capacity building, service delivery and local economic development. Unlike other DFIs, that are increasing their exposure to SMEs, DBSA’s approvals in 2010/11 were US$4.5 billion with average value per approval of US$60 million, whereas in 2009/10 it was US$2 billion with average value per approval of US$15 million.

These figures hide the fact that DBSA is focusing on impactive investments by providing bulk financing of US$1 billion to schools construction and is also managing the US$1.2 billion Jobs Fund.

In it’s short life, the NEF has targeted ailing industries in South Africa as well as sought investment opportunities that bring direct economic benefit to previously disadvantaged individuals, investing mosty in start-ups and expanding SMEs. NEF has more than doubled it’s assets under management to almost US$1 billion in its first decade. This shows the success of focusing on impactive projects.

The DBSA’s mandate hasn’t changed since it was established in 1983, focusing on infrastructure.

New Mandate for DFIs A leading expert in SMEs and entrepreneurial development in Africa, Professor Meshach Aziakpono of University of Stellenbosch’s Business School, believes that Africa’s SMEs need DFIs because the middle space of the economy is where economic growth takes place and where jobs are created. The middle space is between the companies financed by traditional financial facilities and the survivalist businesses that cannot access the traditional finance. The

The best way forward for DFIs may be to continue in their catalytic role through tighter collaborations with private sector investors and stakeholders, to share financial risk while maintaining their strong commitment to promoting best practice in their invested funds and projects.

middle space is typically filled with the SMEs that would generate immense impact for the DFIs if they were to receive more funding.

With the increased imperative for governments to deliver more impact with their investments, they are finding ways of channeling more money into projects with high impact. For instance PIC has reduced their reliance on investments in listed equities and bonds and since 2004 has been managing more of their own funds aimed at private equity investments. In Tanzania, the minister responsible for 3 government pension funds and national housing corporation and national social security fund, has directed them each to invest in 6,000 houses per fund over the next five years.

Across the board, the new mandate for DFIs is to increase the impact of their investments.

This will require investment to increase social infrastructure, including housing and schools, as well as an increase in SME investment, where the jobs are created. It will also require a shift in the way DFI employees are remunerated, adopting remuneration processes that links salary rewards not only to volume but also to the development impact of past investments, as is done at IFC. This will lead to greater development effectiveness.

Research by the FMO suggests that projects with a high development impact produce higher rates of return, so there is no argument against this change in mandate. ■

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Mentoring a new

Leadership in Africa

Exceptional African leadership is a crucial component of any form of sustainable growth in Africa, at a social and economic level.

In recent times, it has emerged clearly that there remain potent barriers to development including a lack of overall leadership in rooting out the causes of dysfunctional social, economic and political systems . The result – more young people are unemployed in Africa than anywhere in the world.

Common traits associated with good leaders include: strength of character and conviction informed by the best interest of the people and society they serve, an adherence to principles of participatory democracy and displaying a willing intent to overcome challenges for the sake of their public. Africa is not without good examples of exceptional leadership, Mozambique, for example, through leadership clarity and purpose, brought about economic growth rates of more than ten percent between 1996 and 2003, following the economic catastrophe wrought by that country’s civil war (which ended in 1992).

Leadership is not an isolated phenomenon that resides in the higher echelons of political and business structures. True leadership resides at the heart of the society and economy, in the many citizens who make up our African experience.

There is a great need, across all spheres, to

The opportunities should flow from what young people define to be the priority of their tomorrow as opposed to the perceptions of their leaders. African youth have to develop a champion’s mentality which encompasses a personal conviction to pursue one’s vision and work towards it, ambitiously and with complete resolve.

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Human development

develop the kind of thinking and self-conviction that impacts the manner in which the continent functions daily and is perceived. This progressive mentality has to be nurtured in the people that compose greater Africa.

The NEPAD Business Foundation has developed and implemented two learning programmes namely the African Leadership Programme with Wits University and the Business of Africa programme in association with the Gordon Institute of Business Science (GIBS). These programmes have equipped many graduates with an understanding of business and, a richer contextualisation of leadership.

On the subject of leadership, we spoke to Pat Pillai, Founder and CEO of Life College Group.

Life College Group specialises in mentality education and offers programmes to leaders and youth. In addition to its many programmes, Life College Group has an exclusive global rights agreement with The Nelson Mandela Foundation to develop and distribute Nelson Mandela – The Champion Within – a programme for leaders and youth. He is also an Ashoka Globalizer Fellow an Executive Producer and News Anchor with e-news in South Africa.

1. What in your view are the tenets of progressive African leadership, if we are to achieve socio-economic growth?

Firstly, socio-economic development is as much systemic as it is a state of mind. Poverty is systemic – but also a state of mind. And poverty is not confined to the poor. A poverty mentality could reside in the most powerful leaders who, over time, erode value. To achieve any progress on the continent, we must address the symptomatic and systemic conditions surrounding this phenomenon.

Symptomatically, we have to deal with the mind-set of Africans and systemically, we need to remove barriers in related macro-economic conditions including policy and governmental administrative matters. Principled leadership

with the right mentality is essential for this.

African poverty is a complex result of many factors Despite this reality and hundreds of years of abuse, Africa has demonstrated an incredible resilience, reserve, strength and capacity, making us the fastest growing continent. It takes a special kind of people to achieve this and therefore, leaders must tap into the extraordinary strength of our people.

Confronting and shifting the mentality of many of our leaders – not just investing in the competencies – will sustainably unlock the potential of Africa – as complex and diverse as she can be.

2. Is the continent moving towards consistent leadership in politics and business or is there increasing variability?

Yes and no.

Yes, because, politically, the Arab spring has served as a turning point for leaders to realise that the youth have the capacity to take ownership. Through these political shifts, people’s voices have been heard and it seems that democracy has been winning. Leaders are beginning to understand that principle-centred and consistent leadership that it truly in service of our people is what our people expect and demand. And the youth are increasingly at the forefront of that movement.

However, the most important note is that when young people begin to question leadership, governance and systems of government, political leaders begin to listen. Leaders begin to introspect and question thechoices they make for their people. Young people begin to shape a new culture of discourse towards more open democracy and policies geared towards the interest of the peopleNo, because, even though Africa’s greatest leaders have listened to dissent or difference of opinion and have incorporated this into progressive policy, many still don’t follow that example. The

retrogressive leaders suppress these issues, using state machinery to thwart such dissent.

Retrogressive African leaders are driven by a mentality that masquerades as leadership but ultimately is self-centred, counterproductive and value-destructive.

A hindrance of note is corruption. It is vital to shift our leaders’ mentality regarding corruption and the tolerance of corrupt people. It’s tough, but it can be achieved.

3. What are the opportunities for young people to become great leaders? How should their mentoring be done and what impact would the mentoring and developing of young leaders have on the future of Africa and in particular, in the way in which the continent can escape poverty?

It is incumbent upon Africa’s youth to find their calling and purpose in life and thereafter, to go out and achieve it. The role of governments is to provide an environment that is reasonably enabling but it is upon Africa’s youth to define their own destiny.

The opportunities should flow from what young people define to be the priority of their tomorrow as opposed to the perceptions of their leaders. African youth have to develop a champion’s mentality which encompasses a personal conviction to pursue one’s vision and work towards it, ambitiously and with complete resolve. There is no easy way to accomplish things on this continent but it begins by selfdefinition which allows one to actively and purposefully shape their destiny. In other words, a state that baby-sits and spoon-feeds endlessly creates dependents. Dependents will never build a great nation or continent.

Our work has proved that an insistence on self-reliance and self-leadership is the greatest determinant of personal success – regardless of circumstances.

With this in mind, mentors of the right calibre are sought out by our youth rather than imposed on our young people. A young person who has the right mentality will self-propel.

The state has a duty therefore to provide

urban, remote and estranged communities with the means to interact with quality education, real world experience and hopefully inspire a local and global outlook. But these means must provide enough empowerment to enrich the personal decision making process for our youth – who must then take up the mantle and run. Giving often cripples. Young people respond positively to being challenged if their mentality education is sound. Sowing seeds of competence and ignoring mindset is like farming without tilling the soil.

4. How is Life College mentoring young people for the future?

Life College Group is a social enterprise that is 15 years old and focuses on shifting mindset and attitudes as a key point of departure to improve readiness for life and work. We aim to unlock a principle-centred champion mentality in individuals and teams through our programmes. Early on in our development, we

Pat Pillai, Founder and CEO of Life College Group captured the unique championship mentality in notable leaders such as Nelson Mandela, Raymond Ackerman, Santie Botha, Albie Sachs, Roger Jardine, Dr Reuel Khoza, Wendy Lucas Bull and Jabu Mabuza amongst others.

Our mentorship programmes therefore shift the attitudes of the young people we train, in order for them to find their purpose and be more effective citizens of South Africa and our continent at large. This approach lends itself to us listening and coaching, rather than leading and instructing prescriptive texts. Seven universities, numerous schools, numerous blue chip companies and the South African Government employ our services. 97% of Life College graduates are either self-employed, employed or in tertiary study. www.lifecollegegroup.com

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promoting access to pharmaceuticals in Africa

situation including a lack of access to essential medicines for many of the affected populations.

This gap highlights an urgent need to prioritize the public health agenda in areas such as improving weak health systems, increasing the health workforce in quality and numbers, and more directly addressing the needs of disenfranchised populations. Almost all countries allow medicines on their market only after they have verified their safety, quality and efficacy – a process known as registration or marketing approval. This is performed by a national medicines regulatory authority (NMRA) in each country. NMRAs have to do this for research-based medicines as well as generic medicines, the latter comprising the largest proportion of medicines available in African markets.

Many countries in Africa lack the appropriate legal framework, capacity and skills and the sustainable financing necessary to undertake a rigorous assessment of safety, quality and efficacy.

This is a dilemma for sovereign nations needing to make sure that medicines for use by their own citizens meet recognised standards of safety, quality and efficacy.

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Human development

Improved access to medicines constitutes an important step to achieving the health-related Millennium Development Goals in Africa.

Slow and burdensome procedures for the registration of medicines in African countries cause major impediments to patients gaining greater access to medicines. Harmonisation of regulatory processes on the continent could offer a solution or at least greatly improve the situation.

The African population has the world’s heaviest burden of infectious and neglected diseases and faces a rapidly-rising burden of non-communicable diseases. There are multiple contributors to this

The skills, capacity and resources needed to establish and maintain an efficient regulatory authority create a challenge, even in developed countries. A real challenge in Africa is the multiplication of effort involved in obtaining regulatory approval in each and every country in which the product is intended to be marketed.

In order to deal with this time-consuming and costly process for both the regulator and the manufacturer, most first world markets participate in some form of harmonisation for medicines registration which necessitates varying models of cooperation, coordination and mutual recognition of registrations between countries.

Harmonisation project Harmonisation impacts all medicines, since all medicines have to go through a regulatory approval process to assess their safety, efficacy and quality before they can successfully get marketing authorisation, which allows them to be sold in a particular country. Therefore, this impacts all medicines in countries in Africa. The harmonisation project focuses on the 4 RECs in Africa. Each REC has to implement harmonisation in their regions first, i.e. co-operation and collaboration amongst countries in their REC first.

In addition, Africa poses special problems for

CASE STUDY – making a case for harmonisation The Pharmaceutical Industry Association of South Africa (PIASA) is a trade association of companies involved in the manufacture and marketing of medicines to the health professions in South Africa. Membership is voluntary and includes a broad representation of foreign multinational pharmaceutical companies and local companies. South Africa is a leading supplier of pharmaceuticals in southern Africa.

Kirti Narsai, Head of scientific and regulatory affairs at PIASA, conducted a survey recently to identify the type of problems members of the association were experiencing in registering and maintaining the registration of medicines in African countries.

According to Narsai, country specific requirements go against the principles of harmonisation. “However, some of the requirements are contained in technical guidelines rather than regulations or Acts, which means that they can be amended fairly easily,” she said. “In cases where these requirements have been included in legislation, it will be more difficult to deal with – examples of countries where this is an issue are Kenya and Namibia.”

manufacturers because most markets are small and the potential return on investment is limited. For a manufacturer seeking to register a product throughout Africa, application fees have to be paid in up to 54 countries, each of which has its own requirements for preparing application dossiers, its own packaging requirements, and might also require its own inspection of manufacturing sites. All of the above impose direct and indirect costs on the manufacturer and may well deter them from registering their products in more than a handful of African countries.

Many countries in Africa lack the appropriate legal framework, capacity and skills and the sustainable financing necessary to undertake a rigorous assessment of safety, quality and efficacy. This is a dilemma for sovereign nations needing to make sure that medicines for use by their own citizens meet recognised standards of safety, quality and efficacy.

Even after an application is made, many months or years may pass before the product becomes available to patients in those countries, including important new

innovations emerging from the development pipeline. Improved access to medicines remains vital to achieving the health-related Millennium Development Goals. Slow and burdensome procedures for the registration of medicines in African countries are a major impediment to patients gaining access to medicines. The regulation of medicines and harmonisation of technical standards and legislative frameworks is an important component of the regional economic integration efforts.

Under the leadership of NEPAD, the WHO, the international community and regional groups, a plan to harmonise healthcare provision in the East African Community was unveiled in March this year.

The Medicines Registration Harmonisation project will promote registration in the region for public health aimed at increasing access to quality, safe and effective drugs.

The WHO is acting as technical advisor on the harmonisation project and the EAC is the first region to launch the initiative. We will therefore be seeking to provide input into this area. ■

According to the results of the research, one of the main areas of concern was the country-specific requirements for the labelling of medicine packs. Narsai believes that the resolution of the labelling issue could make a considerable difference for pharmaceutical companies wishing to market their medicines in Africa.

“Labelling in this case refers to the legal details such as the registration number, applicant details and scheduling status on the pack of the medicine.

“In the past, most African markets recognised the South African pack, but many have subsequently changed their regulations or legislation requiring registration details for their country only to be printed on the pack of the medicine. Namibia is an example. Companies tried to combine South African and Namibian details on packaging but this is unacceptable in terms of South African requirements. After a short exemption period granted by the Namibia authorities after consultation with the South African authorities, – compliance will be required in the near future.”

“The labelling issue should be resolved as a starting point for the harmonisation project. The use of an ‘Africa pack’ or a regional pack incorporating agreed regional labeling information, could fulfil the requirements for patient safety and ease of dispensing while removing the need for manufacturers to produce uneconomically small quantities of stock for a multiple of individual markets,” concluded Narsai.

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water

a fundamental commodity Building shared value with stakeholders can only truly manifest once miners embrace sustainable development principles and guidelines as an integral and inseparable part of their operations. This includes setting targets and making a public commitment to results-driven sustainable development projects. Worldwide, Rio Tinto has committed to reduce its freshwater consumption, an issue that deeply affects communities in Africa.

A leading international mining group, Rio Tinto is active in exploration, mining and processing mineral resources focusing on large orebodies that are economic to mine over the long term.

Says Dr Elaine Dorward-King, Managing Director, Richards Bay Minerals, a Rio Tinto managed mineral sands operation in KwaZulu-Natal, South Africa, “We set our own stretch targets for the management of water and other environmental issues such as air quality, ecosystem services, biodiversity, climate change, energy, land, waste and ultimately, mine closure. These programmes include input and involvement from our local communities and experts.

“Water is becoming a critical issue, not only in Africa, but around the world. We use water at every stage of our business – for exploration, mining, processing, smelting, refining, rehabilitation, generation of hydroelectric power and drinking,” she says.

As water supply and quality challenges across the globe are exacerbated by the potential impact of climate change and increased social development, this reinforces the fact that companies can no longer afford to regard water as an inexpensive commodity. Rather, we must manage our access to water resources for our mining and processing activities as a key business risk, accounting fully for its social, environmental and economic value.

Rio Tinto has put its weight behind dealing with water issues, as described in booklets reviewing our water consumption and operational challenges both globally and in Africa, as well as our public

commitment to cut our freshwater use per tonne of product between 2008 and 2013. Between 2008 and 2011, our freshwater use per tonne of product has increased by 2.7 per cent.

The increase in freshwater use per tonne of product reflects that the Group freshwater use efficiency target is heavily influenced by aspects that are not directly related to efficiency of use or regional scarcity, such as heavy local rainfall leading to increased water storage on site and lower production at several businesses.

Our approach to water usage and how we measure and report are maturing to better account for such site-specific factors. We are reviewing our water targets to more accurately reflect local or regional conditions.

Our water strategy provides a framework for responsible stewardship by addressing waterrelated business risks and improving performance across social, environmental, and economic aspects. We focus on ways to minimise the amount of water we remove from the environment, reuse it whenever we can, and return it to the environment in ways that meet regulatory limits.

“Each of our operations has its own set of water challenges: some are located in water scarce environments where they compete with other users, whilst others need to manage a surplus from storms or groundwater. The quality of water can impact production, operating costs, nearby communities and the environment,” says Dr Dorward-King.

“For our water strategy to succeed, and indeed to protect our future water environment for the benefit of all stakeholders, Rio Tinto strives to develop good working relationships with those directly or indirectly affected by our business.

This means involving local people and the larger community in which operations are embedded, in our water planning, as well as engaging with governments and other organisations committed to sustainable water management.”

“By responsibly managing the vital resource that is water, we believe that Rio Tinto can demonstrate that mining can coexist with other land uses and community values,” she believes We work as closely as possible with host countries and communities, respecting their laws and customs. For Rio Tinto, it is important that the environmental effects of our activities are kept to a minimum and that local communities benefit as much as possible from operations. Central to this is partnering with local and global stakeholders – and in Africa this includes the Tutu Leadership Programme, the NEPAD Business Foundation (NBF), and Birdlife.

Today, Rio Tinto has more than 77,000 people, working in more than 40 countries across six continents, and more than 8,800 of them work in Africa. With exciting new opportunities in the countries we are active in, this number is set to increase dramatically. In Africa, Rio Tinto has operations and projects in Guinea, Mozambique, Zimbabwe, Madagascar, South Africa, Cameroon and Namibia; as well as further exploration sites in these countries and the Democratic Republic of Congo, Zambia and others. Africa currently makes up three per cent of our global business. ■

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Making more beer, using less water

Special partnerships between business & government to resolve a

looming crisis for water – SWPN In South Africa, water demand is expected to increase significantly over the next 30 years resulting in a severe 17% gap in supply and demand. Given the current trends of poor usage habits, physical and commercial water losses, South Africa is facing a water supply crisis. The source of this demand is driven largely by population and economic growth, which in turn leads to substantially increased water requirements for agricultural and industrial uses. This crisis will not be solvable through public sector response alone.

In a publication entitled Closing the water volume gap by 2030, which was released at COP 17 and World Economic Forum in Davos, Minister Edna Molewa said “I believe that closing the water volume gap will require the commitment of the public and private sectors, and our citizens. As such, my ministry is leading the Strategic Water Partners Network – South Africa (SWPN) with pioneer partners including the Water Resources Group supported by the World Bank (WB) and the International Finance Corporation (IFC), World Economic Forum, South African Breweries, CocaCola, Anglo American, Sasol, Nestlé, Eskom and the NEPAD Business Foundation, in an initiative to close the water gap by 2030”.

Unique challenges require unique relationships The SWPN is a unique response to a problem that is ordinarily managed in the public sector space by the Department of Water Affairs. It (SWPN) functions on the basis of a sector wide common goal namely securing future water supply for public and commercial purposes.

The DWA, through Minister Edna Molewa, invited business to collaborate in a unique partnership to solve the water crisis as part of the comprehensive water strategy for the country. This created a space for business to play an active role firstly by defining industry specific water projects best

practices and reviewing current projects that are either increasing or conserving supply and secondly, clustering solutions in special working groups and discussing, between the public and private sector, the projects that ought to be undertaken in the future with a unique buy-in and collaboration between the two sectors.

Water solutions for the future The partnership uses a two stage model that involves producing a diagnostic of the supplydemand dynamics for South Africa by 2030 and using findings to justify the replication of projects that can curb supply-demand gaps by 2030.

The SWPN, which is a public-private advisory platform, helps government shape and test concepts and governance processes seeking to close the identified future water volume gaps. This country-level support entails the use of such the SWPN as an expert group to work with government in shaping concepts into implementation.

SWPN focus areas The two key focus areas include Water Conservation/Demand Management involving increasing water use efficiency (in agriculture, industry and households), leakage reduction from distribution networks (municipal and others, including irrigation). The other area is diversifying the water supply mix encompassing reuse of effluent water, desalination (sea water and acid mine drainage) and use of groundwater (development and sustainable management of groundwater resources, in particular for rural areas).

Under the leadership of the DWA and by engaging industry partners and experts in the above areas, the SWPN is collaborating on an on-going basis to seek innovative joint solutions that support the implementation of government water strategies and overall water security for South Africa.

By promoting the efforts and activities of this partnership, government can build an even wider public-private-expert movement for action.

Currently, the working groups are identifying a pipeline of potential projects and assessing their collective potential to close the water supply gap if implementation takes place. By identifying best practices, experiences, technology and solution suppliers and advisors the SWPN is jointly reviewing with the DWA the challenges for replication; and recommend a strategy to overcome challenges including incentives for widespread adoption and contributions by each stakeholder to enable replication. With coordinating assistance from the NEPAD Business Foundation, which is the neutral secretariat of the SWPN, joint publicprivate expert collaborations within the SWPN will then structure and take forward pilot projects including buy-in, funding and implementation at a Water Summit to be held later this year.

The SWPN is co-chaired by SAB’s Andre Fourie and DWA COO Trevor Balzer representing private and public interest. The secretariat is funded by SAB. ■

The SWPN, which is a publicprivate advisory platform, helps government shape and test concepts and governance processes seeking to close the identified future water volume gaps. This country-level support entails the use of such the SWPN as an expert group to work with government in shaping concepts into implementation.

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The Coca-Cola Company: A long-term partner in Africa The history of The Coca-Cola Company (TCCC) on the African continent is characterised by its long-term commitment. During the 84 years it has been operating on the continent, the company has applied its global policies and business models to its African business in a manner that is cognisant of the local needs and dynamics.

TCCC, along with its 46 bottling partners, operates in all countries and territories in Africa and in each the business is a local enterprise. It has more than 160 plants and 68,000 direct system employees (which includes its bottling partners). Care is taken to source ingredients regionally, to hire locally, and to be part of those communities through consumer marketing activities, social partnership, and micro-enterprise.

The Coca-Cola Company (TCCC) has invested heavily in Africa over the past few years and has ambitious plans for the future of its business both globally and in Africa. By 2020, it wants to double its number of servings from 1.5 billion per day (currently sitting on 1.7 billion) to three billion, a central commitment of its 2020 Vision. How will it achieve this? In part, by investing in and focusing on Africa.

“Continued investment is required for the success of our business and the success of the community. That is why our system has invested $5.6-billion in Africa over the past 10 years. And by 2020, our system plans to invest an additional $12-billion in the continent,” says Ahmet C. Bozer, President Eurasia & Africa Group, TCCC. African partnerships According to William Egbe, Director Sustainability Eurasia and Africa Group, TCCC: “We have a shared past and bright future with Africa. Africa is not a market waiting to develop; it is a market already in development. The

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opportunity to grow and contribute is there for businesses that are prepared to function in partnership.”

One of TCCC’s key philosophies is the belief that to ensure the long-term sustainability of its business, the communities in which it operates need to be sustainable. This philosophy calls for hiring local workers, supporting local businesses and suppliers, and partnering with distributors and retailers.

Every direct job created generally generates between 10 and 16 indirect employment opportunities. Ultimately, every player in the Coca-Cola supply chain makes money through the production, distribution and sales of the brands boosting community economic value and promoting sustainable development.

“We recognise that many of the world’s most pressing sustainability challenges can be best addressed when diverse actors in society come together to collaborate. For this reason, we partner with and engage governments and non-profit organisations worldwide to help advance our shared sustainability goals,” continues Bozer.

by women with an additional 800 managed by women as co-owners.

“We have responded to our business needs and to the growing call for private sector-led initiatives drawing on core business models with our micro-distribution initiative targeting small, independently-owned distributors,” says Egbe.

In countries such as Kenya, Tanzania, Uganda, Ethiopia, and Mozambique MDCs represent the vast majority of sales. MDCs have also provided a source of global best practice for TCCC and this model has now been successfully adopted in markets in Asia. The MDC model has been recognised by the UN’s Business Call to Action initiative as a sustainable business intervention.

What ‘replenish’ means in Africa In Africa, community investments of the Coca-Cola system are managed through The Coca-Cola Africa Foundation (TCCAF). The Foundation’s mission is to enable African communities to improve the quality of their lives and fulfil their potential. TCCAF manages programmes in the areas of Water, Health and Youth Development and is also involved in humanitarian assistance and disaster relief.

It is through this commitment to partnerships and sustainable development that TCCC is making significant progress in the areas of entrepreneurial employment creation, water stewardship, and women’s empowerment.

Employment through entrepreneurship In some of its developing markets, the traditional methods of product distribution for TCCC had to be reconsidered. In many cases, roads are not suitable for large trucks and small shops cannot store bulk deliveries of products. Enter the microdistribution centre (MDC) model.

Today, there are over 3,200 of these small businesses employing some 19,000 people directly in Africa. More than 800 of these businesses are exclusively owned and managed

The Replenish Africa Initiative (RAIN) was announced in 2009 and consolidates the company’s investment of $30-million over six years (for the period 2010 to 2015) in water projects in Africa. The initiative aims to provide over two million people in Africa with access to clean water by 2015.

The Coca-Cola Africa Foundation is the custodian of the initiative and has supported or is developing a total of 42 projects in 28 countries across the continent: 15 of these projects are complete, 13 are ongoing, and 14 are in development. By 2015, RAIN will have launched over 100 water programmes across Africa.

This success is also due to the strong partnerships that TCCAF has established across the continent.

The Coca-Cola Company in Africa • 100+ brands • 46 bottling partners • The Coca-Cola system is one of the largest private sector employers in Africa with approximately 68,000 permanent employees and nearly 900,000 retail partners • 160 bottling and canning plants Africa-wide • $5.6 billion invested over the past decade in Africa (to 2010), with planned investment of $12 billion by 2020.

“The Foundation has formed strategic partnerships with organisations who, like us, desire to find long-lasting solutions to Africa’s water problems through local experience, community involvement, technical knowledge, and funding,” says William Asiko, President of The Coca-Cola Africa Foundation.

To date, RAIN has partnered with approximately 40 funding and implementing partners including NGOs, multi-lateral organisations, and local and national governments. For instance, RAIN incorporates partnerships such as the Water and Development Alliance (WADA) with USAID (United States Agency for International Development).

WADA is a public-private partnership between TCCC and USAID which focuses on delivering the water stewardship goals of the respective organisations. USAID is a key donor partner through WADA for many RAIN projects.

“For TCCC, leaving a lasting legacy is not about one project. It is an ongoing commitment. Helping African communities tackle their water challenges is an important priority for our company and our bottling partners. It is an area where we can make a positive and lasting impact,” says Asiko.

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Eco-friendly refrigeration The Coca-Cola Company’s global system currently has: • More than 380,000 units of HFCfree refrigerated equipment in use.

• More than 3.9 million intelligent energy management devices in use on its refrigeration equipment, reducing customer electricity consumption and saving an estimated $300 million annually.

• Improved the energy efficiency of global manufacturing operations by 15 percent since 2004. Increased the number of fuel efficient delivery vehicles.

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Women at the forefront In 2010, TCCC announced the ‘5 BY 20’ global initiative. This has been designed to empower five million businesswomen in 206 countries within the Coca-Cola system (both the company and its network of bottling partners) by 2020. It focuses on women who own or operate small businesses.

plastic bottles, it lightens the company’s footprint on the environment.

It will focus on four key business needs – business skills training, financial services, mentoring and networks, and access to technology. In essence, it will connect women entrepreneurs with what they require in order to succeed.

Energy Due to the scale of its operations, the efforts of TCCC and its more than 300 global bottling partners to reduce carbon emissions have farreaching benefits.

“Women are critical to our success. As we grow our business we will need to rely on them even more. We are uniquely positioned to reach out to the businesswomen in our system to help them overcome the barriers they face, enabling them to reinvest in themselves, their families, and their communities, and contribute to economic development,” says Bozer.

The largest component of this system’s climate footprint is in the roughly 10 million units of refrigeration equipment which keep Coca-Cola’s beverages cold. The global system also has more than 900 bottling plants and a fleet of approximately 200,000 delivery vehicles.

Environmental protection Embedded in its 2020 Vision is how TCCC is addressing issues of climate protection and the reduction of its carbon footprint on the planet.

Business growth should not be accompanied by a growth in the carbon footprint of the company.

“We recognise that climate change may have long-term direct and indirect implications for our business and supply chain. Our first responsibility as a business is to measure and manage our climate footprint,” says Bozer.

Its sustainable packaging strategy also plays an important role in its efforts to protect the environment. It has altered the design of its packaging to use more recycled and renewable materials, and TCCC continues to work on efforts to increase community recycling.

The innovative PlantBottle™ packaging is the first, fully-recyclable beverage container made from up to 30 percent plant materials. While the packaging has the same look, feel, and performance as PET

This innovation has been shared with Heinz through a strategic partnership announced early last year enabling that company to produce its ketchup bottles using PlantBottle™ packaging.

To address this, TCCC has transitioned to an HFC-free insulation foam for new equipment, eliminating 75 percent of direct GHG (greenhouse gas) emissions. The company had over 100,000 coolers using natural refrigerant fluids in service by the end of last year and has set a target to phase out the use of HFCs in all new cold drink equipment as of 2015.

Hybrid vehicles have also been introduced to system fleets and a range of energy efficiency measures implemented in manufacturing processes and environments.

Together with the public sector, civil society, and other industries, the Coca-Cola system has achieved measureable progress in contribution to the protection of the planet.

“We have a role to play in working to use the best possible mix of energy sources, while improving the energy efficiency of our manufacturing and distribution processes. We look forward to continuing to work with others to find innovative solutions to the challenges of climate change,” concludes Bozer.

Bringing safe water to Africa Over the last 20 years, between 600,000 and 800,000 hand pumps have been installed in sub-Saharan Africa. However, a staggering 30 percent of these are known to fail prematurely, amounting not only to a lost investment of almost $1.5 billion, but also a significant failure in the sustainable provision of clean, safe water to the affected communities.

To help address this problem, The Coca-Cola Company (TCCC) has entered into a water partnership that has been designed with long-term sustainability in mind.

Safe Water for Africa, a partnership between TCCC, Diageo, WaterHealth International (WHI), with co-funding from the International Finance Corporation (IFC), is committed to provide safe water access to at least two million people across West Africa on a sustainable basis.

Safe water for all In the case of the Safe Water for Africa (SWA) project focusing on West Africa, communities help to determine the appropriate, affordable usage fees for the water purification service of each WaterHealth Centre (WHC) installed in a community. Over time, the increased adoption of the service will be able to cover the cost of the operation and maintenance of the facility, allowing it to become financially self-sufficient and ultimately totally sustainable.

“By implementing this innovative clean water access model, which incentivises proper maintenance and operation of the water centres, Coca-Cola and its partners are assuring the project’s sustainability and helping countries move toward their United Nationals Millennium Development Goals,” says Alfonso Libano, Chairman, Equatorial Coca-Cola Bottling Company.

In Liberia, TCCC and WHI have moved to begin the implementation of their clean water service, starting with the building of 30 WHCs – at least five will be up and running this year.

Liberian President Johnson Sirleaf recently noted that stakeholders are “coming together behind our common development goals; and Coca-Cola is

clearly providing a strong example to other corporations – demonstrating how the private sector can partner with others to make a concrete difference in the day-to-day lives of Liberians by making safe drinking water available to 10,000 residents of New Georgia.”

TCCC’s goal is to develop community projects that are also sustainable by partnering with local authorities, development agencies, bottling partners and communities – TCCC and it’s bottlers are collectively called the Coca-Cola system.

“Coca-Cola understands that for it to be successful over the long term, the communities in which it operates must be sustainable economically, environmentally, and with strong local support systems, As a result, Coca-Cola is engaged with WHI in building healthy communities in Liberia by providing access to safe, clean, drinking water to at least 300,000 Liberians,” says William Egbe, Director Sustainability Eurasia and Africa Group, TCCC.

The Coca-Cola Company and water stewardship Water is integral to The Coca-Cola Company (TCCC). It is essential in manufacturing the product range and vital for growing the healthy agricultural component used in its production. As a water user, TCCC is committed to maintaining the water balance by returning to communities and nature the amount of water it uses in its production operations by 2020.

While no one company or organisation can solve the world’s water problems alone, Coca-Cola has quantified and made its commitments public and is working to assist where it can. It has set global, time-bound, measurable targets in three areas related to water stewardship; reduce, recycle, and replenish: • Reduce the Company’s water use ratio while growing the unit case volume, with a target to improve water efficiency by 20 percent over 2004 levels by 2012.

• Recycle the water used in operations by returning treated water to the environment at a level that supports aquatic life by the end of 2010.

• Replenish water in communities and nature through the support of healthy watersheds and community water programmes to balance the water used in finished beverages and meet and maintain this goal by 2020.

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Governance & Democracy

Improving Africa’s

governance

By David Mehdi Hamam and Ben Idrissa Ouédraogo

before it’s too late

David Mehdi Hamam is chief of the Policy Analysis and Monitoring Unit and Ben Idrissa Ouédraogo is a programme officer at the UN Office of the Special Adviser on Africa.

Peer review opening avenues for citizen engagement The ongoing agitation in Africa triggered by the “Arab Spring” demonstrates yet again the importance of good political and economic governance for the continent’s development.

Through their street demonstrations, Africans are expressing their will to reassert control over their own destinies. They are struggling for dignity, freedom, genuine social justice and access to economic opportunities.

The Arab Spring has dramatically shown that economic performance alone is not enough in the long run. After all, Tunisia, Egypt, Libya, Algeria and Morocco were among the fast-growing “African lions” (analogous to the Asian tigers). As leading development practitioners emphasize, economic prosperity and political freedom must go hand in hand.

African leaders understood this when they launched the New Partnership for Africa’s Development (NEPAD). To more specifically promote good governance, human rights and sound economic management they then initiated the African Peer Review Mechanism (APRM) in March 2003.

Innovative and inclusive The APRM, one of the most innovative facets of NEPAD, is a voluntary self-monitoring mechanism by which African leaders subject their policies and practices to peer review by other Africans in four related areas: democracy and political governance, economic governance, corporate governance and socio-economic development.

The reviews are comprehensive and inclusive.

Consultations are not only in the capital city with government officials but also in the countryside and with representatives from the private sector,

civil society, trade unions, parliaments, local councils and so on.

A full peer-review cycle goes through five stages: a country self-assessment; a country review; a review report; the actual peer review — in which review findings are discussed by heads of state at summits of the African Peer Review Forum — and the publication of the report. Fourteen of the 30 countries belonging to the APRM have completed their first peer reviews.

Reviews have pinpointed overarching issues, such as diversity management, electoral violence, land reform, youth unemployment, gender equality and corruption. These suggested the theme of the UN’s eighth African Governance Forum, to be held in Johannesburg, South Africa, in 2012: “Democracy, Elections and the Management of Diversity in Africa.”

Critical challenges Yet the APRM is facing critical challenges, including limited financial and human resources and problems in enforcing and implementing the recommendations in the reviews’ national programmes of action. Some experts argue that the master questionnaire, used in conducting the review, is not covering enough of issues such as agricultural policy, the informal sector, environmental protection and media freedom.

The recent social unrest could have been prevented if the APRM had been effectively operating and its recommendations had been implemented. These protests have the merit of bringing urgent issues of democracy and freedom to the centre of the political agenda for both Africans and their development partners. The APRM can capitalize on the bottom-up approach promoted by these revolts. ■

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Peer review’ & civil society keep

african leaders on their toes

Amos Sawyer on the African Peer Review Mechanism

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Governance & Democracy

Amos Sawyer is a member of the Panel of Eminent Persons of the African Peer Review Mechanism (APRM), established in 2003 by the New Partnership for Africa’s Development (NEPAD), the continental development plan. Mr Sawyer is no novice on governance issues. During the early 1980s he chaired Liberia’s constitutional commission and in 1990-94 was interim president of the country, during one phase in that West African nation’s long civil war. He currently chairs Liberia’s Governance Commission, which recommends political and institutional reforms to consolidate peace and advance democratic practices.

Since the APRM’s formation, 30 African countries have joined the voluntary arrangement. Members have their governance practices reviewed through national consultations and discussions with APRM review panels and African heads of state. How well has this process been working, and what lies ahead?

Since the democratization wave of the 1990s there have been many different governance initiatives in Africa. What’s unique about the Peer Review Mechanism? What does it add?

It adds several things. First, it is a self-assessment, done by the country itself, in an all-inclusive way: government, civil society, the business community.

Second, it is a peer review. It is held by the African governments themselves. Peers from outside sit together with the leadership of the country.

That engagement involves constructive criticism, illustrations of best practices. But it doesn’t end there. A programme of action is formulated, and the head of state being reviewed has an obligation to come back to his colleagues every two years to report on the progress that has been made.

It is slow. It is not confrontational. But a country that does it right has windows opened for the international community to support its development programmes. It strengthens its systems of governance, because the very methodology compels countries to engage with their own constituencies.

You have spoken about the peer review as putting into practice the spirit of the Arusha Declaration of 1990.* Yes, I think so. The 1990 popular participation conference urged bringing out the human potential in the developmental process, that trade unions, farmers’ groups, all should be involved in governance. We should move beyond thinking about “the government” and start thinking about “governance,” which admits the interaction of various constituencies of people. The peer review is giving some practical implementation to that.

The Arusha conference was organized by the UN, but also had civil society involvement.

NEPAD was initiated by some African heads of state. The peer review seems to combine the two. You have people on the Panel of Eminent Persons who come from civil society, but at the end of the process the review goes to African heads of state for approval. Do you see any tension there?

Yes. In fact we are working on that. One of the issues suggested by civil society groups in Africa is that the review process at the level of the heads of state should either take place with the involvement of civil society or there should be a concurrent process where civil society would have its own take on the report. I wouldn’t be surprised if in a few more years we see some changes.

In some countries that have gone through a peer review, civil society groups complained

that those who were able to participate were mainly government-approved.

You have a mixed bag of cases. There are some countries in which civil society is not only well organized, but has demanded and therefore achieved a presence in the political process. In other places civil societies are still fighting to get a seat at the table and organizing themselves to build their capabilities. Where there is weak civil society input, we note that very strongly in all of the reports. And in the programme of action we will note that civil society empowerment is a major project that should be undertaken.

There are controversies about what civil society is. We encourage governments to engage the various groups and associations and come up not only with a working definition, but a space for participation of non-governmental organizations within the policy process.

The most recent accession to the APRM is your own country, Liberia. Do countries coming out of war need a little time to settle before a peer review would be useful?

I think it’s just about the right time for Liberia. A country coming out of conflict needs to put its institutions right. And it’s good when you are newly establishing your institutions for them to conform to the standards that are required by the peer review process. The legislature, for example, should be free from executive control. Legislators should undertake their constituency responsibilities

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and private sector involvement. It speaks directly to the challenges identified in the self-assessment report, so it’s targeted. The problem is that you also have the poverty reduction strategy or the medium-term development plan, which sometimes look to other priorities. We shouldn’t be talking about separate compartments. We should be talking about doing this together. Some have done it another way, using the programme of action as their development programme. Mauritius is doing that right now.

seriously. The judiciary should be independent and well funded, giving people access. Civil society participation should be respected. And [the peer review] can help us correct whatever we are doing that may not be done properly.

Some issues, like corruption, gender and climate change, affect many countries.

Many of these issues are cross-cutting, not only because they touch everything in the national agenda, but some of them cross borders and are of continent-wide concern. Especially corruption, which is due to a lot of factors, including how institutions function, patrimonialism and the system of governance. Every African country has a little bit of this, so it’s an issue that everybody wants to talk about. Land grabbing is becoming a problem, the lack of land access for women and vulnerable groups, the struggle between plantation agriculture and small food production — every country has

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this problem to deal with. The extent to which we can address such issues together and form ideas is very helpful.

What we are also discussing is that the governance arrangements in some of these areas have to be designed differently. Sometimes you have to think outside the box, beyond the nation-state. If you have a pastoral group moving seasonally to where the greener lands are, that requires a different kind of governing arrangement, an authority that can look after them whatever country they come from.

We have to learn to talk about an authority that might cross two or three borders.

How thorough is the implementation of the national programmes of action that come out of the peer reviews?

The programme of action is constituted not only by the government alone, but also with civil society

Governance & Democracy

How do you know the APRM is having an impact?

How do we know the APRM is working? Sadly, we know all too soon when it is not working. At the 2006 review of Kenya, four or five critical issues were singled out in the report. Those came back to haunt us, with the electoral violence [in 2007–08].

Now, from the office of the president down to civil society, they all say that if they had followed the report they could have avoided many probleMs Now Kenya is following the plan and a good deal of progress has been made.

In South Africa we raised the issue of xenophobia.

I was not a member of the panel, but a consultant in the preparation of that report. At first there was denial. At many sticking points the South African government felt that we were wrong. But the panel member who was in charge of the process stuck to the report and it went through. South Africa has now come around to the problem [of xenophobia], unfortunately after it blew up [in violence in 2008].

In normal cases we follow the implementation of the plan of action and every two years the country has to write a report. Some countries are behind in coming forth, but the reports that are made are taken very seriously. Countries may be asked for special reviews if problems are continuing to

occur. We are still perfecting the mechanism for monitoring, and we will get that over time.

Thirty countries have acceded to the APRM, but only some have gone through a full review.

What is the problem?

Thirty countries have acceded, 14 have completed.

Another two are on the way and by January will be finished. Another, Tanzania, has invited the commission to come in, and that will be done. We are told that Gabon, the Republic of Congo and Liberia are preparing. So we still have quite a few to work on, at least 10 or so.

We have recently come up with a policy of reengaging those countries that have not been forthcoming. We are planning visits to see how we can get them to move forward quickly on the peer review process. Now, that’s still just 30 out of Africa’s 54 states. So we have a lot of work to do with those that have not shown any interest at all.

We encourage African leaders to join their colleagues. I have been impressed at the sessions where leaders engage each other. The discussions are really substantive. The questions are straightforward, made in a polite and respectful manner.

I have seen leaders say, “We didn’t do this right.

We’ll come back to you next time and we will have improved.” I think such peer pressure can be more powerful than many other pressures. I have a lot of faith that if we do the peer review right, it can make a significant contribution to the establishment and the sustenance of good governance in Africa.

For a number of years NEPAD was outside the main structure of the African Union (AU).

Now it is more integrated. What is the APRM’s status?

I think we are following the path of NEPAD. So far the forum of heads of state is the sovereign body

of the APRM. That may well remain the same, I don’t know. But what is being done now is to work towards getting the APRM to become an agency within the AU much like NEPAD. This might mean a change in the organizational structure, in the way the APRM relates to the AU. It might even change the voluntary nature of participation. All of this has to be worked out.

The integrity of the panel is key. Whatever changes are made, anything that compromises the integrity of the panel is not a good idea.

Any final thoughts?

I know that this idea of a peer review comes against the background of an Africa in which we see some of our leaders sitting tight, some are authoritarian, some are participating in corruption. While some of this is true, I think the idea of involving African leaders themselves in a transparent process of

self-examination and peer review has some strong merits. It can produce significant results that are beneficial for Africa. We need to encourage this process. We need to have it supported. We need to encourage and strengthen civil societies so they become significant players. In this way we can build our democratic systems and governments, as well as tighten up on accountability and transparency.

I am hopeful.

Edited from Africa Renewal online

“We can build our democratic systems,” says Amos Sawyer of the Peer Review’s Panel of Eminent Persons.

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Cross-cutting issues

Renewed energy for women’s

empowerment

Interview with head of UN Women in Southern Africa

Photograph: Africa Renewal / Ernest Harsch

Nomcebo Manzini is a busy woman. As the regional director for Southern Africa and the Indian Ocean islands of the UN’s recently created Entity for Gender Equality and the Empowerment of Women – popularly known as UN Women – she is constantly on the road from one country to another, addressing public gatherings, attending conferences and strategizing with government officials and women’s activists alike. Africa Renewal’s managing editor, Ernest Harsch, was fortunate to catch Ms Manzini at her home in Johannesburg, South Africa, in late March, during a brief stopover in her travels.

“Women’s political representation is absolutely important,” says Nomcebo Manzini, head of UN Women for Southern Africa.

Nomcebo Manzini is a busy woman. As the regional director for Southern Africa and the Indian Ocean islands of the UN’s recently created Entity for Gender Equality and the Empowerment of Women – popularly known as UN Women – she is constantly on the road from one country to another, addressing public gatherings, attending conferences and strategizing with government officials and women’s activists alike. Africa Renewal’s managing editor, Ernest Harsch, was fortunate to catch Ms Manzini at her home in Johannesburg, South Africa, in late March, during a brief stopover in her travels.

In South Africa and Mozambique, women have reached the benchmark of 30 per cent women’s representation in parliament. What’s the picture across Southern Africa?

As a sub-region we certainly have a long way to go. A few countries have been doing well, but there are others that have regressed. In terms of women in political leadership positions, the average is only 18 per cent. It is way below the 30 per cent we have been calling for, and far below the 50 per cent that the heads of state and government agreed to in signing the Gender and Development Protocol [of the Southern African Development Community, SADC]. We are seeing a lot of change at the local level. Most countries seem to be doing much better in terms of representation in local governments.

This might be because women work in the community and are better known at that level.

they can engage from a perspective of basic human rights and understand broader governance issues and democracy in general. Some countries are in deep conflict. Our position is to support women to participate in negotiations, in mediation, but also in prevention. In Comoros, for instance, we are working within the context of the UN country team on a peacebuilding project. Our contribution is to build the skills of women to understand the issues of gender relations in peace, in peacebuilding, even in conflicts and how conflicts happen. Even if they understand that, they need to build allies within the traditional leaderships, amongst men, with their partners, etc. We try to engage a more holistic approach to dealing with such issues.

UN Women coordinates the Africa Unite campaign, which targets violence against women and girls. What is the main challenge?

The problem is the resources. We are not getting enough funds from national budgets or from the donor community. African heads of state launched the campaign in Africa in January 2010. We are now doing advocacy with the different heads of state to ensure that their ministries of planning and finance allocate funds for implementing the national action plans.

Women’s political representation is absolutely important because participation is a basic human right. Women bring their experiences, knowledge and capacities, which are different from those that men bring.

We have safer cities programmes that we will be rolling out in several countries, working with UNICEF. Research shows that rape of young girls is normally of school children in the early morning when they are going to school, and in the evening when they are going back home, often through thick bushes and other unsafe pathways. But when we talk to governments about this, they hardly have the resources to provide sanitation and water to communities. They don’t see it as a priority.

Beyond getting into office, how can women better engage with broader governance issues, including political conflicts?

One of the things that UN Women is doing is building capacities for women to participate in leadership, but transformative leadership, so that

And the judicial and security systems?

We work with the police, military and other entities in the security sector to make sure they understand the gender dimensions of policing and security, also gender-based violence. We had a conference two weeks ago to talk about how we

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Cross-cutting issues

can support the SADC gender unit to mainstream gender in the SADC Organ on Politics, Defence and Security. We talked about ensuring that the officers who go on peacekeeping missions have some gender training.

When you do the research, it is very much: “I didn’t want to sleep with him, but he forced me.” And then there is the whole issue of “survival sex” in Southern Africa, where young girls will sleep with older men so that they are able to go to school.

We look also at the informal justice sector. In Southern Africa research clearly shows that when women experience abuse or violence in the home they are not going to the police as a first port of call. They go either to their families or to traditional leadership.

And women are also more likely than men to be in poverty…

It seems as though even our governments have now acknowledged that development is not going to happen without the full involvement and participation of women in the economy. But they have not just all of a sudden become benevolent.

It is because of the advocacy that has been coming from the women’s movements and from the ministries responsible for women and gender.

At UN Women we are working with five governments in the sub-region in a pilot programme to see exactly what women are doing to get out of poverty. Most of these women are in what is called the informal sector, and their work is not recognized. The women who kept the Zimbabwe economy going at the lowest point in its history are not recognized even today. Yet they ensured the survival of their families and the economy.

There has been real progress in narrowing the gap between boys and girls entering primary school. But do the girls stay in school?

That is a fundamental point. Looking at many countries, we find that there is parity in terms of entry. In some countries girls are even surpassing boys in entering basic education. But as you move further into the school years and you get into grade seven and eight there are fewer girls continuing in school. Parents are more likely to withdraw the girls from school if they are cash-strapped – or the girls are going to get married. The other problem is that pregnancy in schools is very high and girls will drop to have the babies. Girls also tend to have more work to do in the home, so they have less time to study and therefore tend to have a lower passing rate than the boys.

Southern Africa has the highest HIV prevalence rates in the world. How are women affected?

So much money has come through for programmes against HIV and AIDS. But the work has not taken into account the clear connection between gender inequality and the spread of HIV/ AIDS. In some Southern African countries there are 5 per cent of men with HIV, but you find 20 to 22 per cent of young women of the same age group with HIV.

It is absolutely fundamental to deal with the economic empowerment of women, because we know that when women have that economic independence they are more likely to be able to make decisions about their dignity, their security and their welfare.

Does UN Women work with rural women?

We have a $33 million project that we are currently fund-raising for as UN Women to do exactly that, to work with rural women, particularly rural women farmers. It is a major challenge. At least 70 per cent of the labour in agriculture is women. When we seek $33 million, that’s a drop in the ocean really, it’s nothing in terms of the need. And what

It is absolutely fundamental to deal with the economic empowerment of women, because we know that when women have that economic independence they are more likely to be able to make decisions about their dignity, their security and their welfare. happens when the $33 million is finished? We need to be able to define programmes that governments include in their own national development plans.

And governments must be able to desist from corruption. It is not that the national resources are not there, but they are misused.

UN Women has just been created, merging four different UN entities that dealt with women. For women here in Southern Africa, what difference can UN Women make?

What I see already is just an amazing amount of renewed energy for women’s empowerment in the various areas of work, since the creation of UN Women. Renewed hope indeed that UN Women will do things better and faster in promoting women’s rights globally. It is a very tough call for us in UN Women to deliver on that.

I was privileged to be part of the first strategic meeting for UN Women in January this year, when all the different entities came together. You could feel it in the room, the energy. Madam [Michelle] Bachelet is using her diplomatic skills to bring us together. We have been holding consultations with different partners, including the donor community, governments and civil society organizations, to define what should be in our strategic plan. So we continue to be hopeful, and totally energized. ■ Source: African Renewal

Cross-cutting issues

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Cross-cutting issues

AIDS breakthrough threatened by

budget woes

By Michael Fleshman (African Renewal Magazine)

New discovery brings hope, but will the funds be there?

After 30 years and over 20 million deaths in Africa alone, US researchers now report that early treatment of people infected with the human immunodeficiency virus (HIV) that leads to AIDS cuts transmission of the disease by over 96 per cent. The news has sent shock waves through the medical and scientific world. Unexpectedly announced by the US National Institutes of Health on 12 May after a six-year clinical trial, the discovery that anti-retroviral drugs (ARVs) can make people living with HIV far less infectious means that humanity finally has the tools to reverse the global epidemic.

The announcement has been welcomed as a “game changer” by Michel Sidibé, the head of UNAIDS, the UN’s anti-AIDS agency. The high rate of new infections — almost 2 million in Africa alone in 2009 — he told Africa Renewal, made it impossible for treatment programmes to keep pace. But the recent discovery now gives the continent the potential to make dramatic cuts in new infections and get ahead of the treatment curve.

The $73 million, nine-country study found that beginning ARV treatment shortly after diagnosis reduces the amount of HIV in the body to almost nothing, making it much less likely that people with HIV will infect others. Previously, patients began ARV treatment only in later stages of the disease, which damages the body’s natural defences against illness. Although there is no cure for HIV, a combination or “cocktail” of different ARV drugs suppresses the virus and allows the body to recover. The patient must take the drugs for life.

Treatment as prevention “This finally settles the debate over whether to invest in prevention or treatment,” says Mr Sidibé.

“Now we know that treatment is prevention.” The study prompted UN Secretary-General Ban Kimoon to open a three-day conference on AIDS at UN headquarters in early June with the declaration that “today we are gathered to end AIDS.” Nor was it the only good news for Africa, the region hit hardest by the disease. UNAIDS reported at the 8-10 June meeting that AIDS-related deaths, overall infection rates and new infections have dropped in recent years, while access to ARVs has skyrocketed, although it remains well short of the need (see table below).

High hopes hit tight budgets Having the technology to curb AIDS, however, is not the same as having the political will to do so. Sceptical observers note that total spending on HIV and AIDS programmes is already about $8 billion short of needs and that past pledges to increase spending on anti-AIDS services are unmet. Where the money will come from to put many millions of new patients on treatment, as the study urges, is anybody’s guess.

Instead, the breakthrough on treatment comes amidst signs of donor fatigue. After a nearly 10fold increase in resources for HIV treatment and prevention programmes in African and other developing countries over the past decade — money that has saved the lives of millions — UNAIDS and the US-based Kaiser Family Foundation report that international AIDS funding was essentially static in 2009, at $7.6 billion, the first year ever without an increase. The numbers for 2010 are even worse, showing an actual drop from 2009 levels, the first significant decline in AIDS donor funding since the epidemic began.

“I think the era when we could rely on increased funding for AIDS programmes in developing

countries is probably over for good,” Kaiser Family Foundation Vice-President and Global Health and HIV Policy Director Jennifer Kates told Africa Renewal. “The only real question is whether funding will hover around current levels or whether last year’s drop is the beginning of a long-term decline” — a situation that would make it difficult for people in developing countries to take advantage of the breakthrough.

‘Disowned and abandoned’ The tighter budgets are already beginning to bite.

In testimony before the US Congress last year, Dr Peter Mugyenyi, director of the pioneering Joint Clinical Research Centre in Kampala, the first and largest ARV treatment facility in Uganda, praised Washington’s multi-billion-dollar AIDS treatment programme, the President’s Emergency Plan for AIDS Relief (PEPFAR), for saving countless African lives. Because of funding from PEPFAR,

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the Global Fund to Fight AIDS, Tuberculosis and Malaria, national health budgets and other donors, the number of Africans on ARVs has risen from fewer than 50,000 in 2002 to about 4.5 million in less than a decade. “The carnage that I and my fellow health care providers used to witness on a daily basis faded as the situation changed from despair and misery to hope.”

But he also told the lawmakers that “the twin realities of the [2008] economic crisis and flat-lining of funds for PEPFAR threaten to reverse these highly positive changes and miss opportunities to defeat the epidemic.” ARV treatment must continue uninterrupted for life, Dr Mugyenyi noted, and funding needs to increase as newly infected patients join those already in therapy. Already, he continued, “my institution … is not taking on any new patients. We are forced to turn away desperate patients daily…. Nowadays when new ones reach a stage when they require therapy … they are disowned and abandoned to their fate.”

Dr Mugyenyi agreed with public health experts who argue for increased funding for other deadly diseases in Africa — but not by taking money away from AIDS as some in the West have suggested.

He reminded the US legislators that, despite the huge improvement in access to treatment over the past decade, fewer than half of those Africans

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Cross-cutting issues

who need the drugs currently receive them. Other urgent health needs, he said, should be met, “but not at the expense of HIV/AIDS, which needs increased support.” He quoted Ugandan Health Minister Jim K. Muhwezi in noting that “concern is growing across the African continent” about the slowdown of international assistance for anti-AIDS programmes, a concern that surfaced before the current cuts.

Doing more with less But with the means to roll back HIV now within reach, many doctors and researchers have called for radical changes in the global campaign against AIDS in order to do more with less. That would include redefining ARV treatment as a prevention tool and expanding testing to identify people with HIV before they infect others.

An article in the 11 June 2011 issue of the influential medical journal The Lancet called for moving money out of poorly targeted and often-ineffective prevention programmes aimed at changing individual behaviour into ARV-based treatmentas-prevention efforts. The authors argued that greatly expanded treatment programmes would save money over the long term by preventing millions of new infections and deaths.

The Lancet editorialized that paying for such a large increase in drug access, and administering

the powerful drugs to tens of millions of additional patients through today’s overstretched public health systems, is “a huge challenge.” But the discovery that treatment is the most effective prevention, it concluded, presents the world with an unprecedented opportunity to “make a big difference” in the 30-year war against AIDS. Treatment versus trade rules Advocacy groups, including the South African Treatment Action Campaign and Doctors Without Borders, point to other factors jeopardizing treatment access. Chief among them are restrictions on the export of cheaper generic copies of patented ARV medicines to African and other poor developing countries.

Generics have been at the heart of the African treatment revolution over the last decade, driving costs down from as much as $15,000 per year in 2000 to as little as $200 per year currently, making it possible to treat millions of low-income people. The innovative combination of up to three of the most effective ARV drugs into a single tablet by Indian generics manufacturers also cut costs and made staying on treatment much easier for patients.

Because India, Thailand and some other countries were not yet signatories to the new, more restrictive intellectual property rules adopted by the World Trade Organization (WTO) in 1995,

they were free to manufacture and market generic ARVs in African and other poor countries. In recent years, however, the main exporters of generics have adopted WTO controls, jeopardizing future supplies of the low-cost anti-AIDS drugs on which treatment-as-prevention programmes will rely.

Africa led a successful fight at the WTO for an exemption for the export of generic drugs in 2003.

But since then just one shipment of drugs has been made under its complicated procedures, a track record that has all but dashed hopes that the exemption would serve as a pharmaceutical lifeline to African and other poor countries. Michelle Childs, policy director for Doctors Without Borders’ drug access programme, also accused the US and the European Union of seeking tougher patent protections than required by the WTO in bilateral trade negotiations with developing countries. Such actions, she told Africa Renewal, further undermine access to medicines by the global poor.

Despite the remaining obstacles, UNAIDS head Sidibé is optimistic that Africa is turning the corner on HIV/AIDS and that resources for the continent’s other urgent health needs will be found.

“You cannot deal with maternal health and child health and maternal mortality in Africa and not deal with HIV,” he told Africa Renewal. “You cannot deal with tuberculosis if you cannot deal with HIV and vice versa. So this means that AIDS can be used to leverage progress in other areas. It is time to take AIDS out of this mode of crisis management and look at it as a long-term response.”

Sub-Saharan Africa’s progress against AIDS

People living with HIV New infections New infections among children AIDS-related deaths % of population with HIV

2001

2009

20.3mn

22.5mn*

2.2mn

1.8mn

0.19mn

0.13mn

1.4mn

1.3mn

5.9%

5%

Number of countries with 25% or greater decline in infections since 2001

na

22

% of those needing treatment receiving ARVs**

2%

37%

* Higher number reflects the decline in deaths due to ARV treatment ** 2002 figure Source: African Renewal from UNAIDS data.

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Partnerships GE believes that Africa’s solutions should emanate from Africa. The company has forged significant partnerships in its key markets, and is committed to expanding its partnership strategy by driving dialogue in order to deliver on infrastructural needs. The partnership portfolio ranges from Eskom and Transnet in South Africa, the national carriers in countries like Kenya and Rwanda, as well the NRC in Nigeria.

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Independent Recognition of GE • World’s most admired company Fortune Magazine -1998, 1999, 2000, 2001, 2002, 2006, 2007, 2008, 2009, 2010 • World’s most respected company Financial Times – 1998, 1999, 2000, 2001, 2002, 2003, 2004 Barron’s Magazine – 2005, 2007, 2008, 2009 • #1 Company for Leaders Fortune Magazine – 2007, 2009 • Dow Jones Sustainability Index 2005, 2006, 2007, 2008, 2009 • Best U.S. Corporate Governance Investor Relations Magazine – 2007 • Best in Leadership Development Leadership Excellence Magazine – 2007, 2008 • World’s most ethical company Ethisphere Magazine – 2007, 2008, 2009, 2010 • Most innovative company Business Week – 2007, 2008, 2009, 2010 Ecomagination™

Communications Contact Thulisile “Thuli” Phiri GE Media Relations Manager Africa Tel: +27 11 237 0019 Mobile: +2779 875 9876 Fax: 086 586 4110 Email: thulisile.phiri@ge.com

Mott MacDonald Mott MacDonald’s £I billion business spans 140 countries with over 14,000 staff working in all sectors from transport, energy, buildings, water and the environment to health and education, industry and communications. Our breadth of skills, sectors, services and global reach makes us one of the world’s top players in delivering management, engineering and development solutions for public and private sector customers across Africa and around the globe.

We provide a comprehensive range of planning, design, project delivery and business advisory services covering all stages of a project from concept to completion. Our total service offering incorporates all aspects of project and programme management, management consultancy and construction economics. As a multisector professional services provider, our planning, advisory, technical and management activities also encompass the social and institutional dimensions of development, including health and education. Adding to our capabilities in mainstream technical and management disciplines, we’re skilled in specialist fields as diverse as low carbon technologies, aviation strategy, land use planning, coastal management, nuclear engineering and organisational reform.

Africa presents diverse needs and huge opportunities. We are currently working in 39 countries across the continent and to support our clients, wherever they are based, we are well under way with developing five sub-regional offices – in north, southern, east, west and central Africa.

Supporting development and economic growth in Uganda, Swaziland, the Democratic Republic of Congo, Tanzania and South Africa, we are bringing world best practice to road, highway and freight rail projects. In Mozambique, we have been contracted to work on a new 1000km rail line which will transport coal from the mines being developed in Tete Province to the new port planned for development in Nacala on the Indian Ocean. The scheme will cater for an initial export

Supporting development in a tangible way In support of the Millennium Development Goals, we are working with government, donor, civil society and non-governmental organisations on projects including provision of clean water and sanitation, immunisation, institutional reform, provision of universal education and improvement of infant and maternal health.

Howard Bate, Regional Director – Africa of 40Mtpa of thermal coal escalating to 100Mtpa in the coming years.

With a buoyant international oil and gas market we are helping customers in Rwanda and the Democratic Republic of Congo with a project to capture methane from Lake Kivu, whilst on Nigeria’s Bonny Island liquefied natural gas plant we are providing engineering services.

Importance of PPPs as vehicles greater investment Private finance and public-private partnerships (PPPs) are of growing regional interest and our South Africa-based Infrastructure Finance Advisory team is working on multiple projects across the region including the Renewable Energy REFIT Programme, providing both project management and technical advisory services to the South African National Treasury in a landmark renewable energy programme to procure Independent Power Producers (IPPs). In Kenya, the team is working as transaction advisor on the Kenyatta University project which is aimed at providing housing to both post-graduate and self-sponsored students at the facility where there is currently limited on-campus accommodation available.

Staying closely attuned to our customers’ varying needs and aspirations, we strive through our commitment to continuous improvement and customer care to add maximum value on every assignment. We serve national and local governments, health and education authorities, transport operators, industry, utilities, developers, contractors, commercial companies, banks, funding agencies and non-governmental organisations. We take pride in every commission, no matter the size.

Mott MacDonald is committed to working in partnership with our customers and supply chains to incorporate sustainable solutions into our projects. We are experts in sustainable design, construction and management, seeking to include sustainability as a driver at the most critical conceptual, planning and feasibility stages of all our projects, addressing the whole-life costs and impacts from a truly multidisciplinary viewpoint.

With major offices and centres of excellence across Africa and around the globe, we bring our skills and resources directly to our customers, wherever they or their projects are based. Each office has in-depth knowledge and understanding of local conditions and practices, backed by our worldwide resources – enabling us to offer services around the clock, around the world.

www.mottmac.com

73

Nepad Steering Committee Members COUNTRY

Algeria

TITLE

NAME

POSITION

ADDRESS

Amb.

Rabah HADID

Advisor & Member, NEPAD Steering Committee Ministry of Foreign Affairs Algiers, Algeria

Tel: +213 21504248 Fax: +213 21504238 E-mail: rabah.hadid@gmail.com

Mr

Mr Belkacem Smaili

Counselor, Ministry of Foreign Affairs Algiers, Algeria

Tel: +213 21504218 Fax: +213 21 504218 Cell: +213 554217323 E-mail: smailibelkacem@yahoo.fr

Amb.

Mariam ALADJI BONI DIALLO

Special Advisor to the President and Personal Representative of the President of the Republic of Benin on the NEPAD Steering Committee

Special Advisor to the President and Personal Representative of the President of the Republic of Benin on the NEPAD Steering Committee

Mr

Mahounan Vincent Ferrier

Governance/NEPAD Desk Officer Ministry of Foreign Affairs Cotonou, Benin

Governance/NEPAD Desk Officer Ministry of Foreign Affairs Cotonou, Benin

Hon

Victor Mengot

Minister Special Duties. The Presidency Yaoundé, Cameroon

Tel: 237 99535499 Fax: 237 22200641 E-mail: arreymengot@yahoo.fr

Ms

Nsoga Julienne

Chief NEPAD Office Ministry of External Affairs Yaoundé, Cameroon

Tel: +237 220 21 20 Cell: +237 7756 8484 Fax: +237 22201133 E-mail: nsogajulie@yahoo.fr

Mr

M O Muzungu

Counselor, Embassy of the Democratic Republic of Congo, Arcadia, Pretoria

Tel: 012 344 6475/6 Fax: 012 344 4054 E-mail: drctrade@lantic.net

Hon.

Josue Rodrigue Ngouonimba

Minister in charge of NEPAD/APRM Matters Minister Admin, Territore & Integration Ministry of Planning

E-mail: jr.ngouonimba@yahoo.fr

Mr

Apollinaire Itoua

Directeur General Direction Generale Du Nouveau Partenariat Pour le Developpment De L’Afrique (NEPAD) Brazzaville, République du Congo

Tel: Tel: E-mail:

+242 5824248 +242 6586722 apo_itoua@yahoo.fr

Amb

Ibrahim Ali Hassan

Assistant Foreign Minster & Personal Representative of the President of Egypt Ministry of Foreign Affairs, Cairo, Egypt

Tel: Fax: Cell: E-mail:

+202 25749539 +202 2574 7406 +20122714272 Ibrahim_alihassan@mfa.gov.eg heba_chokeir@yahoo.fr

Mr

Alaa Hegazi

Counselor, Minister of Foreign Affairs- Egypt

Tel: +202. 25749826-8 (Work) GSM: +20186220166 E-mail: alaay.hegazy@ties.itu.int

alaahegazy@gmail.com

Amb.

Newai Gebreab

Economic Advisor, Office of the Prime Minister, Addis Ababa, Ethiopia

Tel: Fax: Cell: E-mail:

+251 111 241206 +251 11 1241322 +251 911204384 edri@ethionet.et

Mr

Aurelien Ntoutoume

Minister in charge of NEPAD, Libreville, Gabon B.P. 561, Libreville, Gabon

E-mail:

lineclara@yahoo.fr

Ms

Line-Clara Mberanguenza

Conseillr du Ministre du charge du NEPAD Ministere de l’integration et du NEPAD Libreville, Gabon

Tel: Fax: E-mail: E-mail:

+241 625353/ 728463 +214 721540 linaclara@yahoo.fr; za-lineclara@msn.com

Amb.

Humphrey Leteka

Advisor/ Representative Ministry of Foreign Affairs Maseru, Lesotho

Tel: Fax: E-mail:

+266 63122939 +26622 hleteka@yahoo.com

Benin

Cameroon

DRC

Congo (Rep of)

Egypt

Ethiopia

Gabon

Lesotho

74

NEPAD CONTACT DETAILS

COUNTRY

Libya

TITLE

NAME

POSITION

ADDRESS

Mr

GUMA I. AMER

Director of Africa Department; Tripoli, Libya

Tel: Fax: Cell:

Mr

Adel O. Issa

Deputy Director

adellibya@yahoo.com; Libya Embassy in South Africa Email: libyasa@telkomsa.net

Madagascar

Suspended from the AU, for now Hon.

Abbie Marambika Shawa

Minister for Development & Planning & Personal Representative of the President of Malawi on the Steering Committee,

Tel: +265 1 788131 Fax: +265 1788131 Cell: +256888351849/999131977 E-mail: amshawa2001@yahoo.co.uk;

Mr

Andrew Nyirenda

Ministry of Development & Planning Lilongwe, Malawi

E-mail:

anden400@yahoo.com

Malawi

Mali

No representation yet Amb.

Tuliameni Kalomoh

Special Advisor Ministry of Foreign Affairs, Windhoek, Namibia

Tel: Cell: Fax: E-mail:

+264 61 282 9111 +264811247825 +26461309463 /264 61 223937 tuliameni@gmail.com;

Ms

Annie K. Naand

Ministry of Foreign Affairs Windhoek, Namibia

Tel: E-mail:

+264 61 282 2261 anaanda@mfa.gov.na

Amb

Tunji Olagunju

Special Adviser to the President & CEO, NEPAD Nigeria Maitama, Abuja, Nigeria

Tel: Fax: Cell:

234 9 4133898 234 9 413898 234 8072224224

Mr

Sola Akinbade

NEPAD Nigeria Secretariat Special Assistant to the CEO, NEPAD Nigeria, Abuja, Nigeria

Tel: Email:

+2348055127066 solaakinbade@yahoo.com sa@nepadaprmnigeria.org

Dr

Jean Paul Kimonyo

Personal Representative of the President of Rwanda to the Steering Committee, Kigali, Rwanda

Tel: +2500788307359 E-mail: jpkimonyo@presidency.gov.rw

iizere@presidency.gov.rw

Mr

Ibrahima Mbaye

Ministre Conseiller en Charge du NEPAD Dakar Senegal

Tel: +221 33868 85 69 Fax: +221 33821 45 04 Cell: +221 774542069 E-mail: Ibambaye40@gmail.com

Amb.

Abdul Minty

Deputy Director General: Ambassador and Special Representative Disarmament and NEPAD, Department of International Relations and Cooperation (DIRCO), OR Tambo Building, Pretoria, SOUTH AFRICA

Tel: Fax: Cell: E-mail:

+27123511500 +27123291471 +27829030258 asm@dirco.gov.za

Amb.

Sonto Khdjoe

DDG, Africa Multilateral DIRCO Pretoria

Tel: Cell: E-mail:

+27 123510555 +27 726146169 kudjoes@dirco.gov.za

Amb.

Ajay Bramdeo

Chief Director: Africa Multilateral, Department of International Relations and Cooperation (DIRCO), OR Tambo Building, Pretoria, SOUTH AFRICA

Tel: Fax: Cell: E-mail:

+27123510547 +27123236643/1087 +27788031917 bramdeoa@dirco.gov.za

Dr

Tagelsir Mahgoub

Minister & Personal Representative of the President on NEPAD Steering Committee, Kartoum, Sudan

Tel: +249912394946 Fax: +2499794503 Cell: +249912304729 E-mail: er-tagelsir@live.co.uk

Dr

Ibrahim Degash

Advisor in charge of NEPAD Affairs And the APRM Focal Point Nile Street, Kuwaltl Building 3rd tower, Khartoum, Sudan

Tel: Fax: Cell: E-mail: E-mail:

+249183794500 +249 183794506 +249 912304729 ibrahimdagash@hotmail.com executive@nepadsudan.gov.sd

Mr

Mohamed Adel Smaoui

General Director for Political, Economic and Cooperation Affairs for Africa and African Union, Tunis, Tunisia

Tel: E-mail: E-mail:

+ 27 1 23426282 at.pretoria@iburst.co.za ‘afrique@amilcar.tn’

Namibia

Nigeria

Rwanda

Senegal

South Africa

Sudan

Tunisia

+218 21 3409303 +218 21 3409301 + 21891321 8231

NEPAD CONTACT DETAILS

75

Representatives of Regional Economic Communities Recs and Partner Institutions on the NEPAD Steering Committee COUNTRY

AU COMMISSION

APRM

TITLE

NAME

POSITION

ADDRESS

Dr

Maxwell Mkwezalamba

Economic Affairs Commissioner AU Commission, Addis Ababa, Ethiopia

Tel: Cell:

+251 115533451 + 251 911201 648 Mkwezalambam@africa-union.org maxmkwezalamba@yahoo.com DingileJ@africa-union.org dingiljere@hotmail.com

Mr

Paul Chimenya

Special Assistant to the Commissioner

chimenyaP@africa-union.org

Mr

Mandla Madonsela

Director, AUC NEPAD Desk

MadonselaM@africa-union.org

Mr

Jean-Yves Adou

Focal Point for NEPAD Matters African Union Commission (AUC) Addis Ababa Ethiopia

Tel: 00251 11551700 Ext. Cell: 00251 912149860 E-mail: adoujy@africa-union.org

Mr

Shifa Assefa

Officer-in-Charge APRM Secretariat, Midrand, South Africa

Mr

Donald Kaberuka

President African Development Bank B.P.323 Tunis Belvedere Tunisia

Mr

Alex Rugamba

Director, NEPAD, Regional Integration and Trade, AFDB Tunis

E-mail: a.rugamba@afbd.org

Mr

Ralph A. Olaye

Manager, NEPAD, Regional Integration & Trade Department, Africa Development Bank B.P.323 Tunis Belvedere Tunisia

Tel: +216 71103075 Fax: +21671332694 E-mail: r.olaye@afdb.org

Mr

Sindiso Ngwenya

Secretary General Common Market of Eastern and Southern African States, PO Box 30051 Ben Bella Road Lusaka, Zambia

Tel: +260-211229725 Mobile: +260 96 838888 E-mail: sngwenya@comesa.int E-mail: secgen@comesa.int E-mail: cmwanza@comesa.int

Dr

Mohammed Al-Madani Al-Azhari

Secretary General Community of Sahel-Saharan States PO Box 4041, Tripoli, Libya

Tel: +218 3614832 Fax: +218 3614832 E-mail: censad_sg@yahoo.com

Mr

Ibrahim Abani

Deputy Secretary General CENSAD, Tripoli, Libya

E-mail: halilou_as@yahoo.fr

censad_sg@yahoo.com

Major Gen.

Louis Sylvain Goma

Secretary General Economic Community of Central African States BP 2112, Libreville, Gabon

Tel: +2241 444 731/746 664 Fax: 241 44 47 31/ 444 4732 E-mail: ceeac.orgsr@inet.ga

Mr

David Mbadinga

Coordinator, Studies & Interconnection in Central Africa

Tel: 241 44 47 31 Fax: 241 44 47 32 Mobile: 241 53 03 02/40 26 30 E-mail: mbadingadavid@yahoo.fr

COMESA

CEN-SAD

76

Mme Kaba Gambe Anne Office of the President

+216 71102327 Mr Raymond Zoukpo Tel: +216 711 02201 Fax: + 216 71 352577

AfDB

ECCAS

Sec. D/L: + 216 71102800

a.umubyeyi@afdb.org

NEPAD CONTACT DETAILS

COUNTRY

ECOWAS

IGAD

SADC

UMA/AMU

TITLE

NAME

POSITION

ADDRESS

Amb.

James Victor Gbeho

President ECOWAS Commission 60 Yakubu Gowon Crescent P.M.B. 401, Abuja, Nigeria

Tel: +234 -9-314 7647-9 Fax: +234-9-314 3005/314 7646 E-mail: mercedesmensah@yahoo.com

Ms

Raheemat O. Momodu

ECOWAS Liaison Officer to the African Union 60 Yakubu Gowon Cresent P.M.B.401 Abuja, Nigeria

Tel: Cell: Fax: E-mail:

Eng.

Mahboub M. Maalim

Executive Secretary IGAD PO Box 2653, Djibouti, Djibouti

Tel: +253 354 050 Fax: +253 356 994/253353520 E-mail: igad@igad.org

Mr

Tomas Augusto Salomão

Executive Secretary SADC Private Bag 0095 Gaborone, Botswana

Tel: +267 395 1863 Fax: +267 318 1070 E-mail: registry@sadc.int

Dr

Angelo Mondlane

Head PSP P.Bag 0095 Gaborone, Botswana

Tel: +267 395 1863/ 267 713 11555 Fax: +267 395 2848 E-mail: amondlane@sadc.int

Mr

Habib Ben Yahya

Secretary General Arab Maghreb Union/ Union du Maghreb Arabe 14 Rue Zalagh Agdal, Rabat, Morocco

Tel: +212 37 671 274/78/80/85 E-mail: sg.uma@maghrebarabe.org

Amb.

Juma Mwapachu

Secretary General EAC PO Box 1096, Arusha, Tanzania

Tel: +255 27 250 4253/8 Fax: +255 27 250 4481/250 4255 E-mail: eac@eachq.org Alt. Email: josephbirungi@eachq.org

Mr

Abdoulie Janneh

Executive Secretary UN Economic Commission for Africa PO Box 3005, Addis Ababa, Ethiopia

Tel: Fax: E-mail: E-mail:

+ 251 11 551 72 00/ 51 12 31 + 251 11 551 10 52 abdoulie.janneh@uneca.org mmistir@uneca.org

Prof.

Emmanuel Nnadozie

Director, Economic Development & NEPAD Division UNCEA Addis Ababa Ethiopia

Tel: Fax: Cell: E-mail:

+251 11 5443163 +251 11 5511 4416 +251 91 1677916 ennadizie@uneca.org

Prof.

Kwabia Boateng

Chief, NEPAD Support Section Economic Development and NEPAD Division (EDND) UNECA Addis Ababa, Ethiopia

Tel: +251 1115443571 Cell: +251 911180195 E-mail: kboateng@uneca.org Alter E-mail: kwabiaboateng@yahoo.co.uk

Mr

Tegegnework Gettu

Assistant Secretary General & Regional Director, United Nations Development Programme.

One UN Plaza, New York, USA

E-mail: gettut@undp.org

Ms

Zemenay Lakew

Senior Regional Programme Coordinator

Tel: 08127311756 E-mail: zemenay.lakew@undp.org

Mr

Patrick Hayford

Director, UN Office of the Special Adviser on Africa.

1 UN Plaza New York, USA

Tel: +1 212 963 3461 Cell: +1 6462201697 E-mail: hayford@un.org

Mr

Mehdi Hamam

Senior Economic Affairs Officer UNOSAA UN Plaza, New York

Tel: +1 212 963 2645 Fax: +1 212 963 3892 E-mail: hamamm@un.org

EAC

ECA

UNDP

OSAA

+251 115517700 Ext. 1625 +251 910162065 +251 114670097 rmomodu@ecowas.int raheemat@hotmail.com

NEPAD CONTACT DETAILS

77

78

FOUNDING PARTNERS

PARTNERS AND STRATEGIC ALLIANCES

PLATINUM MEMBERS

CORPORATE MEMBERS

NBF MEMBERS

CORPORATE MEMBERS

CORPORATE MEMBERS

CORPORATE MEMBERS

SMME MEMBERS

NBF MEMBERS

79

A haul truck driver for RÜssing at the controls of the mine’s simulator for training haul truck drivers. The 180 degree screen displays 3D real-life moving images of the actual mine areas in which haul truck drivers will operate. The simulator is a Cyber-Mine system, purpose designed for RÜssing, which is used to train all drivers on the mine. It is an accurate simulation of the pit and mine conditions. A new driver will initially spend their time working in a real situation, watching an experienced driver. Once the basics have been learnt, the simulator is used to mimic unusual or emergency situations which cannot be trained for under real conditions.

Striving for global sector leadership Rio Tinto is a leading global business delivering value at each stage of mineral and metal production. We find, mine, develop and process the Earth’s mineral resources to supply a broad range of essential minerals and metals, helping to meet global needs and contributing to improvements in living standards.

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Our values and reputation are critical in accessing people, capital and resources. Maintaining our leadership in sustainable development and building our reputation allows us to constantly renew our licence to operate. Our commitment to sustainable development is recognised by our continued listing on the FTSE4Good, the Dow Jones Sustainability Indexes and the Carbon Disclosure Leadership Index.

Rio Tinto 2 Eastbourne Terrace London W2 6LG United Kingdom

Rio Tinto The Planes 38 Wierda Road West Sandton 2196 South Africa

T +44 (0)20 7781 2000

T +27 11 911 9700

Being a responsible employer, neighbour, partner and citizen is integral to what we do today, contributes to our legacy and helps build all our futures.

Our well established strategy, our single set of standards and values and our diverse portfolio of quality assets position us for growth on a global scale.

We have recently added to our interests in Africa by acquiring a majority stake in Riversdale Mining Limited, which has coal assets in Mozambique. Our African portfolio also includes Murowa Diamonds in Zimbabwe; Palabora Mining Company and Richards Bay Minerals in South Africa; RĂśssing Uranium in Namibia; QIT Madagascar Minerals in Madagascar; Simandou iron ore project and CBG bauxite mine in Guinea; and Alucam smelter in Cameroon. www.riotinto.com