Friday, 25 May 2018

African Development Bank takes landmark lead on formation of Africa Financial Alliance for Climate Change


By Winston Mwale
The international community has pledged to mobilize $100 billion in climate finance per annum by 2020 to support adaptation and mitigation projects in developing countries
BUSAN, Republic of Korea, May 25, 2018/ -- Scientific evidence shows that African economies are already reeling from the devastating effects of climate change, further exacerbating their development challenges. Of the 10 countries in the world that are most threatened by climate change, seven are in Africa.

Cognizant of this situation, the African Development Bank (www.AfDB.org) led the way to what may turn out to be Africa’s most decisive action to ensure that the continent is not short-changed by climate finance.

At the 53rd Annual Meetings of the Bank (https://am.AfDB.org/en), in Busan, Korea, the institution brought stakeholders together for an “open dialogue” to discuss the establishment of the Africa Financial Alliance for Climate Change (AFAC). The initiative was well received by key continental and global stakeholders who agreed with the Bank that Africa needs immediate climate change action.

“The establishment of the African Financial Alliance for Climate Change is a call for us to stand together to mobilize climate finance at scale to meet the needs in Africa,” Akinwumi Adesina, President of the African Development Bank, said Friday.

The 2015 Paris Climate Agreement calls on countries to increase their ability to adapt to the adverse impacts of climate change without threatening food production, and make financial flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.

“As Africa’s premier development financial institution, the African Development Bank is already taking action. The Bank is leading Africa’s transition to climate resilient economies,” he said. “The financing needs to meet the ambitions of the Paris Climate Agreement in Africa are enormous. The implementation of Africa’s Nationally Determined Contributions (NDCs) would require investments of at least $2.7 trillion for mitigation and another $488 billion for adaptation by 2030.”

The international community has pledged to mobilize $100 billion in climate finance per annum by 2020 to support adaptation and mitigation projects in developing countries. However, of the US $820 billion in climate finance flows for 2015 and 2016, only US $16 billion was for Africa. This represents a mere 2% of the total.

“This is why the African Development Bank is hosting this open dialogue to initiate the establishment of the African Financial Alliance for Climate Change as a call for us to stand together to mobilize climate finance at scale to meet the needs in Africa,” Adesina added.

He noted that the Bank could not achieve the task alone, pointing out that without achieving the Paris Climate Agreement in Africa, the world will not achieve the required reductions in greenhouse gases to keep global temperatures below the required target.

The Alliance brings together Africa’s financial sector, including Ministers of Finance, Central Banks, insurance and reinsurance companies, sovereign wealth and pension funds, stock exchanges as well as global thought leaders to mobilize climate finance for Africa. It also hopes to come up with concrete proposals to mobilize both domestic and international finance for climate-resilient development in Africa.  “Together, we can create a Decarbonisation Index for Africa,” President Adesina told the meeting.

“The idea of having the Alliance is a fantastic one, because we recognize that the world is also looking to us. While Africa is not the primary cause of the climate change that we see in the word today, we are the continent where the impact is very great, and the world is not as prepared to finance us to take care of this impact. We can’t let it go because it is our people who are suffering,” said Ngozi Okonjo-Iweala, Chair of the Africa Risk Capacity (ARC).

“Just for you to know the impact of climate change, of all the drought that occurs in the world, 41% occurs on the African continent. We lose about 485,000 people to indoor pollution, premature deaths that could have been avoided and also the devastating impact caused by flood. I can go on and on.”

The President of the Development Bank of Southern Africa (DBSA) and Chair of the Association of African DFIs, Patrick Dlamini, observed that collaboration was crucial to catalyzing funds and making a difference. “This is possible under the leadership of the African Development Bank. We can then play our role as development finance institutions to being the policy instruments of our various Governments and in alliance with partners.”

The CEO of the Global Environment Facility (GEF), Naoko Ishii, pledged the support of her organization for the Alliance and was optimistic that it would motivate the GEF to do much more for Africa.

For his part, Howard Bamsey, CEO of Green Climate Fund, said, “The Alliance is a fundamental step towards meeting the climate change challenge in Africa. There has to be an African solution to the challenge that we face and this initiative presents the opportunity to mobilize that.”

The Africa Financial Alliance for Climate Change will be launched on the margins of the Africa Investment Forum (www.AfricaInvestmentForum.com) in South Africa, November 7 to 9, 2018 and will bring together heads of financial institutions.  


Thursday, 17 May 2018

Siemens takes Digital Solutions of the year award at Africa Utility Week

By Winston Mwale
Siemens provides a comprehensive portfolio of products, solutions, and services to help build and operate microgrids of any size
JOHANNESBURG, South Africa, May 17, 2018/ -- Siemens (www.Siemens.com) wins the Digital Solutions of the year award for its Siemens South Africa Head Quarters Micro Grid Project at the Africa Utility Week Industry Awards evening which took place in Cape Town last night.

Why Microgrids are the future of Energy Management

The traditional power grid provides reliable power most of the time. But when natural disasters or security breaches threaten the grid, the ensuring blackouts can be catastrophic and costly.

It is for this reason that organisations and utilities are working together to build resilient, flexible power systems called microgrids. Operating either as part of traditional grid or independently (or both), mircogrids are revolutionizing the way we manage our energy resources.

Why do Microgrids matter?

A microgrid is a scaled-down version of the centralized power system. It can generate, distribute, and control power in a campus setting or small community.
·  They are reliable and flexible
·  They are resilient
·  They more secure
·  They save money
·  They store and incorporate renewable energy

Siemens provides a comprehensive portfolio of products, solutions, and services to help build and operate microgrids of any size. We provide generation and distribution of electrical energy as well as monitoring and controlling of microgrids.

Wednesday, 16 May 2018

Kenya's Amu Power Signs Clean Coal Technology Agreement with GE

By Winston Mwale
GE Power will design, manufacture and deliver its market-leading Ultra Super-Critical clean coal technology components (boiler and steam turbine generator) and air quality controls systems for the Lamu Coal Power Plant

Kenya's Amu Power Signs Clean Coal Technology Agreement with GE

NAIROBI, Kenya, May 16, 2018/ -- Gulf Energy (https://GulfEnergy.co.ke), the developer of the 1050Mw Lamu Coal Power Plant (Amu Power) (www.AmuPower.co.ke), the largest private sector led infrastructure project in East and Central Africa, has today entered into a Clean Coal Technology agreement with General Electric (GE) (www.GE.com) that will see the plant use GE’s Ultra-Supercritical Clean Coal Technology making it one of the most technologically advanced coal fired power plants in the world.  Amu Power is the special purpose company that will own and operate the 1,050 MW coal fired power plant in Lamu County, Kenya, under the Public Private Partnership (“PPP”) framework.

The agreement was signed at Nairobi, Ministry of Energy offices in Nyayo House in the presence of Hon. Charles Keter, the Cabinet Secretary, Ministry of Energy (MoE), Dr. Eng. Joseph Njoroge, the Principal Secretary, State Department of Energy, Mr. Jim Rigassio, the Commercial Counsellor in the US Embassy (Kenya), Mr. Pushpinder Dhillon, the Counsellor for Economic Affairs in the US Embassy (Kenya); by the Managing Director of Amu Power Company Limited, Mr. Francis Njogu and Mr. Jay Ireland the President and CEO, GE Africa. Others in attendance included the Ministry’s staff, Amu Power staff and GE staff.

The Agreement will also see GE through its affiliates acquire a stake in the equity of Amu Power, subject to obtaining regulatory, board and lenders’ approval. Under the Agreement, GE Power (www.GE.com/power) will design, manufacture and deliver its market-leading Ultra Super-Critical clean coal technology components (boiler and steam turbine generator) and air quality controls systems for the Lamu Coal Power Plant.

In a briefing to H.E President Uhuru Kenyatta at State House following the signing, the parties informed H.E the President that GE’s Ultra-Supercritical technology will guarantee a clean environment through elimination of emissions, and lower the overall cost of power generation in the country. The parties further noted that upon completion, the Lamu Coal Fired Power Plant will be the single largest Independent Power Producer (IPP) in the region and will account for up to 30% of power generation capacity in Kenya.

Francis Njogu, Amu Power Managing Director said, “This is truly a historic moment for Kenya and the East African region as a whole. We are confident that this partnership forged today will go a long way to position Kenya as an Industrial hub in the continent. Kenya has been looking for ways to enhance its generation mix to provide the most efficient, least-cost and reliable power in a sustainable manner; and the technology offered by GE gives us a unique opportunity to achieve this ambition.”

The Lamu Coal Fired Power Plant will be a key player in supporting the realization of the Government of Kenya’s (GOK’s) ‘Big Four’ agenda, specifically in the manufacturing sector by providing steady, reliable and affordable power. The sector’s growth will create new employment opportunities every year that the Kenyan workforce will benefit from.

Statistics show that connections to the national grid grew to 6.2 million in 2017 up from one million in 2010. As the country transitions into a middle-income economy by 2030, supply of adequate, reliable and affordable energy is a key foundation.

George Njenga, the Commercial Leader, GE Steam Power, Sub-Saharan Africa said, “Kenya’s energy demands are growing as the government seeks to implement its critical ‘Big Four’ agenda. GE Ultra Super-Critical Coal Power technology will deliver cleaner, affordable, reliable and efficient solutions as well as critical power to help meet the country’s growing needs.”

GE’s Ultra Super-Critical technology keeps raising the efficiency bar of coal power plants and has reached 47.5% efficiency in the world’s most efficient coal power plant in Germany. GE Power’s best in class power generation technology is currently in operation in new generation steam plants like the Manjung 4 in Malaysia as well as future plants like the Hassyan in Dubai.

The Lamu Coal Fired Power Plant project is part of the GOK’s vital and crucial initiative in the energy sector to address present electricity affordability and reliability challenges. At a tariff of US Cents 7.81/kWh, the Lamu Coal Fired Power Plant will provide base-load capacity at the lowest non-subsidized tariff in the country. Additionally, it will have the flexibility to profile the generation according to the daily demand pattern, compared to other power production technologies that are inflexible; reducing generation costs by 12% - 36%.



Tuesday, 15 May 2018

Agenda and Speakers announced for debut Africa Blue Economy Forum 2018

By Winston Mwale
Participants will include Captain Peter Hammarstedt, Chairman, Sea Shepherd Australia and Dr Kamal-Deen Ali, Executive Director, Centre for Maritime Law and Security Africa
LONDON, United Kingdom, May 14, 2018/ -- The Africa Blue Economy Forum (ABEF) (www.ABEF2018.com) 2018 has announced the final agenda and confirmed speakers for its first edition, in London on 7-8 June.

The Forum will bring together government ministers, business leaders, ocean experts and environmental and maritime organisations, to discuss the economic contribution of the African oceans.

A Governments Panel will address how to bring the blue economy into mainstream national and regional development plans. 
Speakers include HE Aziz Rabbah, Minister of Energy, Mines and Sustainable Development, Kingdom of Morocco and HE Derick Ally, High Commissioner to the UK, Republic of Seychelles, whose government is already implementing a National Blue Economy Roadmap.

Founder and CEO of World Ocean Council, Paul Holthus and Imed Zammit, CEO, Institut Méditerranéen de Formation Aux Métiers Maritimes will discuss climate change and ocean governance, addressing increasing threats to the world’s oceans and appropriate governance frameworks on sustainability in Africa.

Maritime security has become a priority for most of Africa’s regional communities since the early 2000s, with threats ranging from piracy, to illegal, unreported and unregulated fishing. 
One panel discussion will focus on the issues of policy and security. Participants will include Captain Peter Hammarstedt, Chairman, Sea Shepherd Australia and Dr Kamal-Deen Ali, Executive Director, Centre for Maritime Law and Security Africa.

According to the Food and Agriculture Association (FAO) of the United Nations, employment in the fisheries and aquaculture sectors has grown faster than both the world’s population and employment in traditional agriculture. 
In Africa, the scope for sustainable aquaculture growth can positively impact extreme poverty, building resilient communities and fostering strong economies. 
At ABEF 2018, experts will discuss tapping in to these areas to boost job creation and training for African youth.
Leila Ben Hassen, founder of ABEF 2018 and CEO of the event’s organiser, Blue Jay Communication (http://BlueJayCommunication.com), said: “This programme is designed to include as many different experts in their respective fields as possible, to drive forward the conversation and – more importantly – actions on Africa’s blue economy, to the mutual benefit of local and national communities”.

Murdoch University, Perth, Australia, is hosting its first symposium on the Blue Economy in conjunction with ABEF 2018, as part of the Third Murdoch Commission on the theme ‘Africa’s Challenges for Progress: Implementing the Africa Progress Panel recommendations’.

The symposium will bring together a number of experts from Africa and around the world to explore how to advance the implementation of the recommendations made by the Africa Progress Panel related to sustainable fisheries in Africa.

East Africa Hub: Voith's new center for hydropower projects in East Africa

By Winston Mwale
Technology group Voith opened its new East Africa Hub in the Ethiopian capital Addis Ababa
ADDIS ABABA, Ethiopia, May 15, 2018/ : On May 11, 2018 technology group Voith (www.Voith.com) opened its new East Africa Hub in the Ethiopian capital Addis Ababa. 

In doing so the company is highlighting its active contribution to the development of electricity generation from hydropower in East Africa.

From now on, the technology group will be planning and coordinating projects in nine countries in the east of the continent from this new facility.

The opening ceremony was attended by Ethiopia's State Minister of Water, irrigation and Electricity Dr. Frehiwot Woldehanna, German ambassador to Ethiopia Brita Wagener, Uwe Wehnhardt, CEO of Voith Hydro and Member of the Corporate Management Board, and numerous guests from the business and political arenas.

Voith has been a partner in the region for more than 70 years

In his opening address, Uwe Wehnhardt emphasized the enormous potential of hydropower in the region. “Voith has been supporting the development of clean energy generation in Africa since the 1940s. We are reinforcing this commitment through the opening of our facility in Addis Ababa,” says Wehnhardt.

Voith will work with customers and investors to continue to play an active role in developing a sustainable energy supply in Africa. In this context, training measures are an important element for Voith and will in future also be coordinated from Addis Ababa.

The purpose of the training is to pass on the company's extensive expertise in hydropower to local experts. Because Voith sees its role in the region not only as a supplier of cutting-edge hydropower technology but also as a full partner for developing energy infrastructure.

Many reasons for Ethiopia as a location

There were several reasons in favor of the new Voith location in Ethiopia.

“Good market conditions and the proximity to our customers and partners, as well as the hydropower market potential and impressive economic development in recent years make Ethiopia an ideal base for our new site,” explains Uwe Wehnhardt.

With a hydropower potential of 45,000 MW, Ethiopia has one of the largest resources on the African continent. Since 2011, the country has been boosting the development of renewable energies and aims to be the energy hub for East Africa in the medium term. 


“Due to the longstanding history of hydropower projects in Ethiopia there are a large number of well-trained experts in the country. Some of these experts are now supporting us in our new East Africa Hub,” says Wehnhardt. 

The good logistics are also a point in favor of Ethiopia. For example, all the countries serviced – Egypt, Kenya, Sudan, South Sudan, Rwanda, Tanzania, Uganda and Zambia can be reached by direct flights in just a few hours.

Numerous projects under construction
Already, Ethiopian hydropower plants with Voith technology are supplying up to 900,000 households in the country with clean, sustainable electricity. One of these power stations is Gilgel Gibe I, which went onto the grid in 2004.

Its three Francis turbines from Voith have a capacity of more than 180 MW – sufficient output to supply electricity to over 120,000 households in the rural Oromia region around 260 km to the south-west of Addis Ababa. For the Gilgel Gibe II power plant Voith also supplied four Pelton turbines and generators and the electrical and mechanical equipment.

It also trained the power plant personnel. Before Gilgel Gibe II was operational, only 15 percent of Ethiopian villages had electricity. Nowadays half of all rural communities are connected to the grid.

Numerous other hydropower projects are currently under construction in Ethiopia. In the coming years they will increase the installed capacity by a further 1,500 MW and also bring Voith's share of electricity generation from hydropower to around nine percent of the country's entire power generation.

Voith is also playing a leading role in hydropower projects in other East African countries. For example, the company is currently upgrading the small power plant Wanjii in Kenya.

Voith is replacing the turbines, generators, control technology and all electrical and mechanical equipment.

This will increase the capacity of the power plant by around 20 percent. The comprehensive upgrade is set to be completed by mid-2019. 

Conference of Ministers praised for tackling ‘real’ African issues

By Winston Mwale 

The ECA Conference of Ministers was praised for discussing ‘real’ issues affecting the continent. At the heart of the debates was the AfCFTA. Its success would depend on a concerted and common approach to advance trade facilitation. Ministers also recognised the central role of private sector to help push forward the AfCFTA project.

ADDIS ABABA, 15 MAY 2018: Finance ministers and policy makers from across the continent have reaffirmed their commitment to the African Consolidated Free Trade Area (AfCFTA) at the close of a high-level meeting widely praised for discussing ‘real’ issues affecting the continent. 


The event, hosted by the UN Economic Commission for Africa (ECA) in Addis Ababa (Ethiopia), called for governments to ensure they make the policies and investments necessary to capture the economic benefits of the proposed trading bloc.

A ministerial statement from the 51st session of the Council of Ministers recognised the potential of the AfCTA to advance industrialisation, economic diversification and development to foster prosperity for all on the continent. It also, however, recognised the challenges including concerns over the impact upon the tax base arising from a single continental market for goods and services, reporting: ‘The short-term impact is likely to be minimal and will be outweighed in the medium and long term by the positive impacts of revenue from other sources of taxes.’ 


These new sources would arise from economic growth and diversification from trading in a bloc of 1.2bn consumers.

The summary also acknowledged the need for the bloc to advance trade facilitation measures. 


These include simplified trade regimes for informal cross-border traders and upgrading trans-boundary infrastructure to assist firms keen to penetrate the new markets opened up by the agreement. 

The private sector was recognised as playing the central role in achieving this project to create a more empowered, inclusive and transformed continent. 

It would also be essential for businesses to partner with governments to develop innovative financing solutions to tackle health, education, infrastructure and environmental challenges that could hold back Africa from effectively operating and benefitting from the bold economic plan.

The statement came after four days of dialogue and robust exchange on the theme ‘African Continental Free Trade Area: Creating fiscal space for jobs and economic diversification’ that addressed key issues for the continent including agriculture’s role in economic growth; financing infrastructure; tackling illicit financial flows; and an integrated strategy for the Sahel.

The theme of the meeting was considered highly relevant by the participants who commended the organisers for focussing on ‘real’ African issues. Dr. Robert Nantchouang, Senior Knowledge Management Expert from the African Capacity Building Foundation, said the meeting successfully highlighted pressing issues related to the economic integration agenda. 


He remarked: ‘It was a timely and opportune moment for African countries to gather around a common issue that was embraced by all participants. Nobody was left behind in this discussion.’

Vera Songwe, Executive Secretary of the ECA, reaffirmed the commitment of her organisation to support governments moving towards economic integration through its convening, thought process and operational functions. 


The meeting recognised the preeminent role of human and institutional capacity building that would enable the AfCFTA to meet many of the continent’s development needs. She commented: ‘Africa is waiting. Our challenges are huge but we are on the way to solving them through the AfCFTA.’

The meeting forms part of wider consultations on the historic deal that was signed by 44 presidents and government leaders in Kigali (Rwanda) in March 2018. 


Countries will now be required to ratify and implement the legal instruments of the agreement that would create a trade bloc with a combined gross domestic product of more than $3 trillion together with an additional 300,000 direct and 2 million indirect jobs according to the African Union. 

Poor development outcomes reflect enduring challenges in natural resources governance

By Winston Mwale

ADDIS ABABA, 13 MAY 2018: Africa has been slow to convert its natural resources endowments to tangible development outcomes because of weaknesses in governance, according to the fifth edition of the African Governance Report published by the UN Economic Commission for Africa (ECA).

The report launched during the ongoing ECA Conference of Ministers in Addis Ababa (Ethiopia) argues that the good governance of natural resources in Africa requires institutions that have both the proper mandate and capacity to manage resources efficiently. 


They also require the capabilities to formulate, implement and enforce sound policies and regulations.

Abdalla Hamdok, ECA Deputy Executive Secretary and Chief Economist, said although natural resources had become a central activity on the continent, there remains serious challenges to achieving sustainable and inclusive growth with value-added outputs. 


He explained that good governance is the key to enabling resource-rich countries to effectively transform their economies.

‘Africa is very rich in minerals but has very little value addition to them, leading to less revenues generated by countries from natural resources,’ said Mr Hamdok when commenting on the common strategy of exporting commodities in their raw form.  


He added: ‘Countries need to critically think on the importance of value addition for their exports if they want to benefit fully from it.’

Adam Elhiraika, ECA Director of the Macroeconomic Policy Division, said ownership rights to natural is the major challenge to good resource governance in Africa.


In relation to economic diversification, he remarked, ‘African countries’ dependent upon natural resources that are limited lead to economies with an inability to spread growth to other sectors and across the population.’

The report, based on case studies from eight geographically diverse countries (Botswana, Cameroon, Cote d’Ivoire, Egypt, Madagascar, Nigeria, Tanzania and Uganda), drew upon a range of empirical evidence. ‘Among these countries, Botswana is the only country that has a long term development plan on the utilization of its natural resources for the benefit of its citizens.’ noted Mr Elhiraika.

Speaking at the launch Bience Gawanas, UN Secretary-General's Special Adviser on Africa, said, ‘The paradox for African countries is that they are rich in resources yet they are poor because only very few benefit from these resources.’ She added: ‘Resources should not just increase the GDP of our countries but improve the lives of our people.’ In addition, she also highlighted that illicit financial flows and corruption in the continent are make it essential for nations to exercise good governance of their natural resources. 


Frequently the direct exploitation of natural resources − including agriculture, forestry, oil, gas and minerals − that often dominates economic activity has only benefited the few in many societies.

Among the recommendations by the report is the requirement for the strengthening of  institutional and regulatory frameworks to enhance transparency and accountability in economic governance. 


Such effective governance is vital for sustainable development, poverty eradication and socio-economic transformation. 

The report recommendations and key messages arising from the discussion will now contribute to ongoing efforts to strengthen Africa’s natural resources sector as a stakeholder and enabler of development on the continent.

Experts call for combined forces to stem illicit financial flows

By Winston Mwale

ADDIS ABABA, 13 MAY 2018: Experts have called for combined forces to stem the illicit movement of money and capital from one country to another amid revelations that illicit financial flows from Africa were stifling the continent’s development progress.

Speaking at a high-level discussion during the UN Economic Commission for Africa’s (ECA) Conference of Ministers, Abdalla Hamdok, the organisation’s Deputy Executive Secretary, said money illegally transferred across borders in addition to aggressive tax avoidance now amounted to a loss of $100 billion annually for African states. 


He remarked, ‘I think the debate is not about the seriousness of the issue. The challenge is how we can arrest it,’ and added, ‘This is an African problem. The only way we can resolve together is by working together with our partners.’

Dr. Nara Monkam, Research Director at the Africa Tax Administration Forum, shone a spotlight on the destination of funds and profile of those engaged in the transferring the money: ‘Some multi-national corporations employ tax evasion, trade mis-invoicing and abusive transfer pricing.’ 


According to the Director, inter-country cooperation at a continental level was required to tackle such practices. In addition, given that illicit financial flows from Africa involve actors from across the globe, and that the laws and policies of non-African jurisdictions have a serious impact on illicit flows from Africa, it has become a priority to review the adequacy of global frameworks in tackling illicit financial flows. 

Dr Monkam also added there was also a need for greater funding for technical assistance on tax matters and improvements in tax administrations.

A call was also made to amplify advocacy for the return of illicit financial assets by Akingbolahan Adeniran, Rule of Law Advisor to the Vice President of Nigeria. 


He argued, ‘In the domestic setting, receiving a stolen asset is a crime. Why is receiving stolen asset from a victim country not a crime?’ 

In addition to the loss of finances for affected states, flows have a number of other negative effects, such as undermining governance, contributing to environmental degradation, skewing income distribution, deepening inequality, and exacerbating conflicts, particularly in resource-rich countries.

The commitment of governments was deemed crucial by Professor Annet Wanyana Oguttu, a tax law expert at the University of South Africa, called for political to combat illicit financial flows. She said, ‘It all bogs down to political will,’ and added, ‘many African countries have been dragging their feet.’

The event also saw the launch of two ECA publications, A Study on the Global Governance Architecture for Combating Illicit Financial Flows and Base Erosion and Profit Shifting in Africa: Reforms to Facilitate Improved Taxation of Multinational Enterprises. 


During the event, Abdalla Hamdok thanked the Government of Norway for funding the ECA High Level Panel on Illicit Financial Flows from Africa chaired by former South African President Thabo Mbeki and noted the country stood out as an ‘extremely progressive partner’. African countries have committed themselves to tackling these flows through target 16.4 of the UN Sustainable Development Goals and the 2015 Special Declaration of the Assembly of the African Union on Illicit Financial Flows.

We are all winners with AfCFTA, Ethiopian PM tells ECA Conference of Ministers

By Winston Mwale

ADDIS ABABA, 14 MAY 2018: The transformational opportunities offered by the African Continental Free Trade Area together with the measures needed to unlock them has been the focus for a High-level Ministerial Dialogue convened by the UN Economic Commission for Africa in Addis Ababa (Ethiopia).

During the official opening of the 51st Conference of Ministers, Dr. Abiyi Ahmed, the Prime Minister of Ethiopia, urged the assembled finance ministers and policy makers to use their ‘collective vision’ to create the right conditions and commit the necessary resources for the creation of the world’s largest trading bloc. 


The Prime Minister, who stated that his government is ready to ratify the AfCFTA deal and deposit its instruments to the African Union, said: ‘Let us finance our own development. 

There are no losers with the AfCFTA. We are all winners.’ He also stated it must create ‘inclusive prosperity’ for all Africans, including marginalized and vulnerable communities.

Discussions on the theme ‘The African Continental Free Trade Area: creating fiscal space for jobs and economic diversification’ addressed specific concerns in relation to falling tax revenues arising from the free movement of goods. According to the ECA, however, the ratio of tax revenue to gross domestic product is already low in African countries. 


The ratio for many of them falls below 15 per cent, widely considered the minimum threshold for a state to function efficiently. Philip Lane, Ireland’s Central Bank Governor, drew upon his country’s experience within the European Union trading bloc to explain how such structures can offer economies sustained growth. 

Addressing the opportunities arising from such a bloc, he remarked: ‘A large export base provides stability, the diversification of markets and economic transformation through free trade.’ The resulting growth in prosperity leads to the tax base broadening, especially for small states whose ‘home market’ grows as cross-border trade expands to embrace other countries.

The importance of infrastructure and logistics for the AfCFTA was a major focus for the meeting. Vera Songwe, Executive Secretary of the ECA, emphasised the importance of ensuring trading happens in a ‘seamless’ way along the vital road corridors of the continent. She observed: ‘If we provide the infrastructure and border reforms necessary through the AfCFTA we can create jobs and growth.’

Caution, however, was sounded by Prof. Emmanuel Nnadozie, Executive Secretary of the African Capacity Building Foundation, in relation to ensuring nations actually implement the plan. 


He observed, ‘Capacity is at the centre of the problem’ and recommended that robust institutional arrangements, appropriate regulatory changes and private sector involvement would ensure the AfCFTA is implemented in an expeditious manner.

A highlight of the gathering was the Adebayo Adedeji Lecture given in honour of Prof. Calestous Juma, a renowned supporter of harnessing innovation and technology to advance Africa’s development, who died last month. 


The lecture was given by Prof. Mary Teuw Niane, Senegal’s Minister of Higher Education, Scientific Research and Innovation. Her lecture reflected upon envisioning a science, technology and innovation future for Africa. Each year the service of Prof. Adedeji, the longest serving ECA Executive Secretary, is remembered through a lecture given by a prominent individual who has made a special contribution to Africa’s development.  

DEMONSTRATION

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