Issue #97 - Friday, April 27th, 2007

Transcription

1 Issue #97 - Friday, April 27th, 2007 Precarious Food situation in COMESA Nothing should stand between a needy or dying child and the WFP said Ms Sheeran. The Executive Director was speaking in Addis Ababa on her first trip since assuming office begging of April this year. Ms Sheeran told a meeting attended by Aid and Development Agencies that Africa was her priority hence her visit. The new Executive Director of the United Nations World Food Programme (WFP), Ms. Josette Sheeran has pledged her commitment to work to cut hunger in Africa through Power of Purchase to support sustainable Agriculture. The Executive Director has since stressed the need for WFP to procure food for emergency from national and regional sources. For example in 2004, WFP purchased about 3.5 million tonnes of grain worth about 1.1 billion dollars. Of this amount 800,000 tonnes was purchased in Africa. Some of the leading suppliers in COMESA include Uganda, Ethiopia, Kenya, Malawi Sudan, Rwanda, Egypt, and Zambia. Ms Sheeran told a consultative round table that WFP overhead was only 7% thus ensuring cost effectiveness. Equally important is for WFP to attend to food emergency on a timely basis. And addressing the same meeting, COMESA Secretary General, Erastus Mwencha said the food situation in the region was precarious. The number of people consuming less would increase if there was no significant intervention. The COMESA region should not be a net importer of cereals but issues related to inadequate production and productivity, poor rural and regional infrastructure conditions and linkages, poor storage facilities and other considerations have meant that the region has been compelled to be a net importer of cereals, Mr Mwencha pointed out. In 2004, the COMESA region produced 46.3 million metric tonnes of cereals mostly maize, but imported 17.5 million tonnes, or nearly 40 percent of the production at the cost of US$3.3 billion. Not much has changed in the last two years. To meet the cereal requirements for consumption, replace imports and meet other uses, the region would need to produce in about 80.6 million tones or double the region s current production levels. Given the region s hugely underutilized arable land, favourable This bulletin is published by the COMESA Secretariat Public Relations Unit but does not necessarily represent views of the Secretariat. Contact Address : COMESA SECRETARIAT, COMESA Center, Ben Bella Road P.O. Box 30015, , pr@comesa.int 1

2 The Grain Trade Summit COMESA AND EAGC SIGN MOU TO PROMOTE OPEN REGIONAL GRAIN TRADE MARKETS 2 COMESA ASG Ambassador Nagla El-Husseiny exchanging an MoU with Nick Hutchinson chairman of the Eastern Africa Grain Council (EAGC) at the 2nd African Grain Trade Summit held in Nairobi April 2007 The Common Market for Eastern and Southern Africa (COMESA) and the Eastern Africa Grain Council (EAGC) signed a Memorandum of Understanding (MOU) on 19th April 2007 which aims at promoting the development of a vibrant, viable and sustainable grain industry and market in the region for maize, wheat, rice and other cereals. The EAGC whose Secretariat is located in Nairobi, Kenya, consists of grain producers, traders, millers and farmer s associations and processors in the COMESA region. The MOU was signed during the 2nd African Grain Trade Summit held in Nairobi, Kenya, at Intercontinental Hotel on 18-19th April 2007 by Ambassador Nagla El Hussainy, COMESA Assistant Secretary General and Nick Hutchinson, Chairman of the EAGC. The MOU comes in the wake of the recognition by both COMESA and the EAGC that the challenges of agriculture and grains development in Africa require concerted efforts to exploit the opportunities of abundant resources, technology, innovation and modern approaches, which must be implemented to improve the production and marketing of grains in the COMESA region and the African Continent in general. The EAGC and COMESA agreed to, take measures to promote open and freer grain trade throughout the region by creating a conducive environment for trade and removing barriers to such trade such as ad-hoc import and export bans; identify priority areas for attention to improve the development of the grain industry in the region in line with the competitive trends that may emerge from time to time regionally and internationally; and cooperate in seeking and applying modern technologies and approaches in the industry to facilitate efficiency, improved productivity and value addition within a regional value chain framework. The Grain Trade Summit brought together over 250 delegates from the EAC and COMESA regions, Africa in general and other world players in the cereals sector. It was organized by the EAGC with the assistance of the Regional Agricultural Trade Expansion Support (RATES), a programme funded by the United States Agency for International Development (USAID) in partnership with COMESA, the East African Community (EAC) and the Kenya Maize Development Programme. The theme of the Conference was Structured Grain Trading and Commodity Risk Management Staying the Course. The meeting was officially opened by the Minister of Agriculture of the Republic of Kenya, Honourable Kipruto Arap Kirwa.

3 Shire-Zambezi Waterway Project, A Dream Come True Ngwenya COMESA Assistant Secretary General in Charge of Programmes Mr Sindiso Ngwenya has described the Shire-Zambezi Waterway Project as a dream come true for the region. He said this in Lilongwe, Malawi on 25th April 2007 at the signing ceremony of a Memorandum of Understanding (MoU) by Malawi, Mozambique and Zambia. We are gathered here today as part of the initiation of the translation of the realization of the dream on the Shire-Zambezi Waterway into an operational project. This has indeed been a dream come true within the shortest possible time, We in COMESA are convinced that this project when fully implemented will provide a platform for the region to cluster special economic zones which will change the social, political and economic landscape of what is currently characterized by underdevelopment and intensified marginalization, Mr Ngwenya said. He added that the Shire-Zambezi Waterway Project should be viewed as complementary to the projects on the rehabilitation of the existing road and rail infrastructures to the nearest ports to Malawi which includes measures aimed at improving operational efficiencies of existing inter-modal transport operations. It is not far fetched imagination that when developed, the Shire-Zambezi Waterway will bring significant benefits to Malawi in particular and the region as a whole. The other countries in the region that will use this Waterway will have direct transport savings cumulatively for all countries would be in excess of US$ 250 million annually, Mr Ngwenya said. The COMESA Council of Ministers and the COMESA Assistant Secretary General Mr Sindiso Ngwenya Authority of Heads of State and Government have designated the Shire-Zambezi Waterway as a priority regional integration project. This is in line with similar decisions by both the NEPAD and SADC. To bring the project to fruition, the COMESA Secretariat has allocated US$500, 000 for hydrographic survey. The funds came from the European Development Fund. Together with the NEPAD and SADC Secretariats, we shall leave no stone unturned to ensure that all technical, economic and environmental impact assessment studies are done expeditiously, Mr Ngwenya added. The Assistant Secretary General used the occasion to commend President Bingu wa Mutharika and Ministers of Finance and Transport and Public Works Honourable Goodall Gondwe and Henry Mussa for they commitment to ensure that work on the Waterway is commenced. Among several dignitaries that attended the signing ceremony were Honourable Dr Antonio Munguambe Minister of Transport and Communications from Mozambique, Honourable Christopher Mushohwe Minister of Transport and Communications from Zimbabwe and His Excellency Joshua Simuyandi Zambian High Commissioner to Malawi. 3

4 COMESA Business Forum Set for Nairobi An estimated 500 business leaders from COMESA countries are expected to attend the Business Forum scheduled to take place on May 18 19, 2007 in Nairobi, Kenya. The Business Forum will be part of the COMESA Policy Organs Meetings scheduled for May 11 23, The meetings are expected to culminate into the 12th COMESA Heads of State and Governments Summit on May 22 23, Organised under the theme Deepening Integration for Diversification and Value Addition the forum presents an opportunity for Business Leaders from COMESA member States to meet and discuss issues of common interest regarding the strengthening, deepening and expansion of trade and investment in the region. Running alongside the Business Forum will be a trade exhibition slated for May 14 20, It has been planned to have a multi-pronged agenda that will facilitate the discussion of key issues around attaining the COMESA Customs Union, deepening of the Free Trade Area (FTA), expansion of intra and extra-comesa trade and trade facilitation, financial instruments for investment and growth, infrastructure development, and trade in services including ICTs and the financial sector. The forum will also enable the COMESA Council of Ministers to have a roundtable meeting. The African Industrial Association rejects the Economic Partnership Agreements The African Industrial Association has written a letter to the African and European negotiators to express its strong opposition to the conclusion of the Economic Partnership Agreements (EPAs) on the basis proposed by the EU. As the negotiations between the European Union (EU) and the African States are entering a crucial phase, we wanted to say very clearly that African industrialists totally oppose the principle of reciprocal market opening between the EU and the different African regions. The unbalance and the gap between the partners are too deep to have a viable agreement on this basis, declared Pierre Magne, the President of the AIA. While numerous industries in this region are emerging, the proposed market opening will 4 condemn Africa to become an importation counter. For the AIA, the major stake today is, more than ever, the industrialisation of the continent which is an essential factor to create wealth and jobs on the continent. Looking at the current EPAs proposals, Africa has a lot to loose. The African regional blocks do not constitute open markets and the regional integration very often remains virtual, something that is not true of the European market. Meanwhile, the costs of production are still very high in Africa (financing difficulties, infrastructural deficits, small national markets, juridical insecurity, bureaucracy, etc ). Moreover, there have been no incentives for investments or subsidies in Africa since the conclusion of Structural Adjustment Programmes. The situation in the EU cannot be more different, highlighted Pierre Magne. to page 7

5 Regional Customs Guarantee Scheme Training Underway in Lusaka COMESA Secretary General Mr Erastus Mwencha says he is encouraged with the progress in preparations for the commencement of operations of the Regional Customs Transit Guarantee Scheme (RCTG). He said this in a speech read on his behalf by Mr Geoffrey Osoro, Officer in Charge of the Division of Trade, Customs and Monetary Affairs at the opening of the Training on the operation of the Regional Customs Transit Guarantee Management Information System (RCTG-MIS). The training has attracted experts from Customs, Banks, Insurance Companies, transporters, clearing and forwarding companies and national sureties from Northern Corridor countries. You will agree with me that the commencement of operations of the Scheme critically depends on the successful operations of the MIS. I urge you to thoroughly follow the training and internalize the operations of the MIS. During this training, you will consider a proposed work plan for the piloting, come up with a work programme that clearly states the time frame and defines the role of each participant in the piloting exercise, Mr Mwencha added. The 3-day training held at the Secretariat is a follow up to the decision made at the launch of the RCTG on 21st September 2006 in Kampala, Uganda. The meeting agreed that training on the RCTG- MIS should be conducted for Sureties, Customs, Clearing and Forwarding Agents and Transporters. This is to facilitate the piloting of the RCTG-MIS in the Northern Corridor. The official name of the Northern Corridor is the Transit Transport Coordination Authority (TTCA), and the members are Burundi, Kenya, Rwanda, Uganda and DRC. The Secretary General informed the training that since the launch of the RCTG in Kampala, several activities have been undertaken to ensure the successful commencement of the scheme. These include the development, installation and deployment of the RCTG-MIS at the COMESA Secretariat, a content Manager has been recruited, the RCTG legal and technical documents have been finalized and the 1st draft on the study on the establishment of the Reinsurance Pool has been reviewed. I am also pleased to further inform you that since the Kampala meeting, Djibouti, Madagascar and Burundi have ratified the RCTG Agreement and this has brought the number of countries which have ratified the scheme to ten. Zambia and the Democratic Republic of Congo are expected to ratify the Agreement this year, Mr Mwencha revealed. 5

6 World Dairy Players to Converge in Zambia important role that technology plays in modernizing the dairy industry and in diversifying the range of dairy products from the natural milk to products such as butter, cheese, ghee, yoghurt, cream, ice-cream, flavoured drinks and others. Dairy is a critical to the region in many respects. It is both a commercial and small-holder undertaking with the potential to empower large numbers of rural populations I terms of improved incomes and nutrition even more important in the face of HIV/ AIDS and related illnesses. The Republic of Zambia will on May 2007 host the 3rd African Dairy Conference and Exhibition to the held at Taj Pamodzi Hotel in Lusaka. The Conference is being organized by ESADA (the Eastern and Southern African Dairy Association), a regional industry body that brings together players in the dairy value chain comprising dairy farmers and processors in the EAC (East African Community) and COMESA (Common Market for Eastern and Southern Africa) regions. The Conference is being hosted by ESADA under the auspices of the Zambia Dairy Processors Association (ZDPA), the Zambian Chapter of ESADA in partnership with COMESA. ESADA receives technical assistance from the Regional Agricultural Trade Expansion Support RATES) programme, a COMESA initiative supported by the United States Agency for International Development (USAID). The theme of the Conference, is, African Dairy: The Future is Technology in recognition of the The Conference is expected to attract about 200 delegates from the COMESA region and all over Africa as well as from major dairy producing countries as far as Poland, New Zealand, Australia, India and the United States. It will bring together under one roof, stakeholders in the dairy value chain comprising, farmers and farmer organizations, breeders, processors, equipment manufacturers and suppliers, traders and distributors of dairy products as all as policy makers among them, the International Dairy Federation (IDF). The last Conference was held Kampala, Uganda in May This is a major boost for Zambia s dairy industry as the Conference is expected to result in major benefits for Zambia in terms of more exposure of the Zambian dairy sector, investment and partnerships with both regional and international players in the dairy sector. The President of the Republic of Zambia, His Excellency Levy Patrick Mwanawasa is scheduled to open the meeting together with the Secretary General of COMESA, Mr. Erastus Mwencha. from page 1 climate and abundant water resources, this need not be a daunting task. With proper policies, strategies and partnerships between the public and private sector as well as the International community including the WFP this goal can be achieved or even exceeded. said Mwencha. He then elaborated on the COMESA agricultural programme under the Comprehensive 6 Africa Agricultural Development Programme (CAADP). Before her appointment Ms Sheeran previously worked as Deputy United States Trade Representative before moving to the State Department as Deputy Secretary.

7 The African Industrial Association rejects the Economic Partnership Agreements from page 4 The AIA rejects the proposals made by the European Commission. Transition periods of 12 to 18 years before full reciprocity will not be sufficient to bridge the competition s differential between the EU and Africa. The idea of excluding some sensitive sectors would confine Africa in an economically and morally unacceptable industrial framework. For the AIA, any partnership between Africa and the EU must aim at developing the strong potential of the African industry through a special and different treatment. History has indeed shown that no economy is viable and strong if it does not develop itself under protection. This was the case of, among others, USA, Europe, Japan and China. It should not be different for Africa today. We invite the negotiators to get out of their meeting rooms and to go in the field to measure the difficulties facing the African industry. We urge the African and European decision makers to hear the voice of all the African industrialists who want to play an active part in the definition of an agreement with the EU which will offer real development prospects to Africa, concluded Pierre Magne. The African Industrial Association (AIA) is an organization that brings together major industrial companies operating in Africa. Our organization calls for the strengthening of the African industry and of its capacity to contribute to the development of the African continent. Letters to the Editor: Dear Nampito, I wish to thank you very much for the News Letters. I find them quite useful. Please keep on sending me such Newsletters which contains useful information. Highest regards Kenneth A. Nkankha Events 16th 18th May 3rd African Dairy Conference and Exhibition Lusaka, Zambia Murphy s Law It was not the apple on the tree but the pair on the ground that caused the trouble in the garden 11th 23rd May 12th COMESA Policy Organs meetings, Business Forum, first Ladies Roundtable and Heads of State Summit Nairobi Kenya 7