The development of small hydro-power plants in

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1 1 Issue #: 518_ 17th May 2017 Joint Office to develop Small Hydro-Power projects unveiled The development of small hydro-power plants in the region is set for a major boost following the start of a joint initiative between COMESA and the International Centre on Small Hydro-Power (ICSHP). Two joint offices have been opened in China and at the COMESA Headquarters in Zambia to facilitate the mutual implementation of small hydro-power projects in the region. The COMESA/ICSHP office in Zambia was opened Wednesday 17 May It will provide among others, for joint planning on small hydro-power projects, implementing policy research, publish policies and informat on renewable energy sector and promote cooperation for investment and financing of small hydro power projects. (L-R) Prof. Cheng Xialei, Mr Sindiso Ngwenya, Mr. Zhang Zhitong and Ambassador Kipyego Cheluget A similar office was established in Hangzhou, China in April this year during which a Memorandum of Understanding between COMESA and ICSHP was signed. The MoU provided the framework for cooperation between the two parties in green small hydro power. It also aims at enhancing the role of the ICSHP, in particular, carrying out the project of Lighting up Rural Africa, with the support of United Nations Industrial Development Organization (UNIDO). The Chief Planner at the Ministry of Water Resource of China, Mr. Zhang Zhitong, the Director General of the ICSHP Prof. Cheng Xialei and COMESA Secretary General, Sindiso Ngwenya jointly unveiled the Lusaka office. Speaking at the event, Mr Zhitong said the collaboration between China and COMESA was aimed at promoting international standards in the construction and management of small hydro-power plants in Africa. He said: Africa has great potential for small hydropower and renewable energy which, through this cooperation will benefit from China s experience and skills. He said that training workshops on small hydropower will be conducted every year to build the capacity of COMESA countries on small hydro power development. The next workshop will take place in Madagascar in July this year. Secretary General Sindiso Ngwenya said at least 50 small hydro-power projects have been identified in the region for development and will be showcased during The 8th Hydropower for Today Forum to be held in Lusaka, Zambia later in the year. The Forum will be jointly organized by COMESA and the Ministries in charge of water resources of China and Zambia. This bulletin is published by the COMESA Secretariat Corporate Communications Unit but does not necessarily represent views of the Secretariat. For Feedback: pr@comesa.int Contact Address : COMESA SECRETARIAT, COMESA Center, Ben Bella Road P.O. Box 30051, , e-comesa@comesa.int In addition to small hydro power development, Mr Ngwenya said the utilization of inland water bodies, which are plenty in the region, will be addressed under this partnership. ICSHP was established in 1994, and is a non-profit institution operating under the auspices of (UNIDO). Its mission is to promote small hydro-power development worldwide. It is based in Hangzhou, China and serves as the headquarters of the International Network on Small Hydro-power (INSHP) with more than 470 members from 80 countries. COMESA Secretary General is the current Honorary Chairperson of the Coordinating Committee of the Network.

2 2 COMESA in strategic partnership with Islamic Fund Health experts in DRC trained on quarantine procedures Eighteen animal health and plant diseases officials in the Democratic Republic of Congo have been trained in quarantine practices and procedures. The training was hosted in Kinshasa from 25 to 29 April Its objective was to strengthen the operational capacity of animal quarantine staff in order to improve their services to beneficiaries. It will also ensure the country is safe from exotic diseases and also protect the livestock from local diseases. Development partners from Europe, North America, Latin America, Asia and China will also be part of this ground breaking initiative to be coordinated by COMESA, the Secretary General said. Dr Waleed Al-Wohaib and Mr Sindiso Ngwenya The Islamic Solidarity Fund for Development (ISFD) will provide funding to micro enterprises in COMESA countries that are members of the Islamic Development Bank. This will be done once the ISFD receives a request from COMESA. The agreement was reached during a meeting between the Secretary General of COMESA Sindiso Ngwenya and the Director General of the ISFD Dr Waleed Al-Wohaib. The meeting took place in Jeddah, Saudi Arabia. The two agreed on areas of strategic cooperation which COMESA will take lead in bringing together national development banks, sovereign wealth funds and multilateral development banks in the Gulf Cooperation Council Countries. These will be used to fund COMESA regional programs and projects to realize economic transformation. As part of the strategic collaboration, regional and international multilateral development banks, namely the Trade and Development Bank (formerly PTA Bank), African Development Bank and World Bank among others will be invited to join the initiative. Development partners from Europe, North America, Latin America, Asia and China will also be part of this ground breaking initiative to be coordinated by COMESA, the Secretary General said. The ISFD is a member of the Islamic Development Bank. The African Union Inter-African Bureau for Animal Resources (AU-IBAR) in coordination with COMESA Secretariat through the Reinforcing Veterinary Governance Programme (VET-GOV) organized the training. Dr. Yoseph S. Mamo COMESA VET-GOV Coordinator told e-comesa that his programme has been working with various COMESA Member States to establish quarantine stations. The aim is to prevent the transmission of Trans-Boundary Animal Diseases and zoonotic diseases into the country through imported livestock and their products. The increased and faster international trade and travel exposes every country to the danger of infiltration of known and unknown transmissible diseases which have the potential of serious and rapid spread, adverse socio-economic and human/animal health consequences, he said. The training was also expected to build the capacity of staff working at border quarantine offices in DRC on practices and procedures.

3 COMESA advocates for renewable energy The quest for adequate, quality, cost-effective, clean and affordable supply of energy in COMESA recently led the Secretariat to undertake a study tour of Italy to explore ways that the region could borrow lessons on developing and increasing the use of renewable energy. 3 Assistant Secretary General in Charge of Programmes Ambassador Dr. Kipyego Cheluget and the Chief Executive Officer of the Regional Association of Energy Regulators for the Eastern and Southern Africa (RAERESA) Dr Mohamedain Seif Elnasr participated in the tour that covered three cities of Rome, Treia and Sassuolo from 2 to 4 May The purpose of the visit was to initiate knowledge, innovative and learning based cooperation between COMESA and some Italian private sector companies on developing renewable energy in our region, Ambassador Cheluget said. He noted that COMESA and the African continent at large have vast untapped potential for all forms of renewable energy which could be unlocked. COMESA believes that renewable energy could play a vital role in the energy mix and could be a solution to the energy challenges that many countries are facing, Amb Cheluget said. Renewable energy sources have little or no greenhouse gas emissions, making them excellent sources of carbon credits that bring additional income. Some of these renewable energy sources that are expected to play a vital role in the energy mix include small hydro power, bioenergy, solar and wind. COMESA is also facilitating the removal of barriers for renewable energy development in the region by creating an enabling regulatory environment in Member States. It is also harmonizing them to create a large market for large scale deployment of renewable energy technologies. Increased investment in renewable energy sources in most countries will spur growth and encourage private sector investment and participation, facilitate trade in renewable energy technologies and promote the use of renewable energy technologies, Dr Mohamedain told e-comesa. He added that it was against this background that COMESA was targeting Italy and other countries to penetrate the renewable energy market by deploying their technology in solar, wind, small hydro power and geothermal among others. Kenya is leading in the use of geothermal energy while Egypt is leading in wind power. Ethiopia, Zambia, Rwanda, DR Congo and Madagascar (among others) are lead in the use of small hydro power. COMESA signs memo with COIDIC COMESA and China Overseas Infrastructure Development and Investment Corporation (COIDIC) have signed a Memorandum of Understanding that will provide a framework to guide the relationship between the two entities on the delivery of specific energy and infrastructure development projects in the region. This was done in South Africa on 26th April 2017 during the opening of the COIDIC newly built Africa office in Merlose, Johannesburg. COIDIC will be involved in the planning, designing, financing and construction of infrastructure projects across Africa in the energy, transportation and Information and Communication Technology (ICT) sectors. Secretary General Sindiso Ngwenya (L) at the opening of the COIDIC offfice The Secretary General Mr. Sindiso Ngwenya and the South Africa Deputy Minister of Trade and Industry, Mr Bulelani Magwanishe unveiled the offices. Mr Ngwenya described the launch of the COIDIC offices as a sign of commitment to the pledge made by China to foster a Win-Win Cooperation for Common Development.

4 4 Agro Industry players push for harmonization of policies and regulatory frameworks Stakeholders in the in the Agro-industry have completed a two-day dialogue that addressed issues affecting sustainability and growth in the sector. The 2nd Agro Industry Dialogue which took place in Kenya, May 2017, came up with common positions to be structured into the policy processes to improve commodity supply chains. Close to 50 participants composed of agro industry companies, horticulture processing and producer companies, dairy companies, corporates and SMEs within the agriculture sector, standard setting institutions, agriculture regulatory and trade institutions and other stakeholders supporting agriculture development attended. Among the key recommendations from the forum was the need to harmonize policies and regulatory frameworks governing agro industries in the COMESA region as a way of promoting intra-regional trade. Anchored on the theme; Promoting Sustainable Agro Industries and Supply chains in COMESA the dialogue provided a platform for knowledge sharing amongst the stakeholders in each of the selected commodity supply chains. Stakeholders urged COMESA to encourage and support member states that have not already established national dairy boards or equivalent national regulatory body to do so. In this regard, the COMESA Business Council will promote exchanges and lesson-sharing between Member States that have successfully established such institutions and those that wish to do so. Once established, the regulatory bodies should improve coordination across relevant ministries and agencies dealing with food safety and animal health. They should engage with relevant stakeholders when developing regulations to ensure that these respond to the needs and interests of private sector dairy actors in the country, including smaller actors, the dialogue report noted. The delegates recommended the establishment of a regional repository to provide information on businesses and equipment sourcing from within COMESA. This will encourage more regional market linkages and intra-regional trade though local sourcing. On horticulture, the dialogue recommended the harmonization of standards between regulatory authorities in countries with strong trade ties or partnerships towards mutual recognition of certifying bodies. Speaking at the forum, COMESA Business Council Chief Executive Officer Ms. Sandra Uwera described competitive and sustainable Agro Industries and supply chains as the best tools for economic development and intra-regional trade. We seek to solve the underlying issues that are preventing market access, and also to create more consumer confidence in African products in order to increase intra- trade in Africa, she said. In a region where agriculture is at the center of support for the livelihoods of the rural economy and quickly taking prime space on the urban stage, Ms. Uwera said it was essential to develop strategies which can boost the competitiveness of local producers in increasing the purchase of local, quality, value added products to satisfy regional demands. The recommendations of the dialogue will be streamlined into an advocacy position for the CBC that will feed into the upcoming COMESA Trade and Customs and policy organs meetings in The CBC organized the forum in partnership with the African Regional Standards Organization (ARSO), the United States Agency for International Development East Africa (USAID), Pan African Quality Infrastructure (PAQI) and European Centre for Development Policy Management (ECDPM).

5 Manual on Monetary Transmission Mechanism adopted 5 Country delegates attending a past COMESA conference manual on Application of Advanced Panel A Data Analysis with Special Application to the Impact of Financial Structure on Monetary Transmission Mechanism, has been validated. The manual whose overall objective is to equip users to undertake analysis of all aspects of panel data analysis was endorsed during a five- day workshop in Nairobi from 8th to 12th May, The manual demonstrates all steps from data organization to results interpretation applying bank level data using the Eviews software. Ten COMESA Member States including Burundi, DR Congo, Ethiopia, Kenya, Madagascar, Rwanda, Sudan, Swaziland, Zambia, and Zimbabwe were represented in the workshop. It was organized by the COMESA Monetary Institute (CMI). Prof. Kinandu Muragu, the Executive Director of the Kenya School of Monetary Studies (KSMS) where the workshop was hosted and the Director, COMESA Monetary Institute (CMI) Mr. Ibrahim Zeidy addressed the participants. They observed that Panel Data Analysis combined cross section and time series data allowing analysis across banks, industries, countries or even specific regional blocks or continents. The application of Panel Data Analysis to transmission mechanism of monetary policy is important for effective implementation of monetary policy, Prof Muragu said. He pointed out that a better understanding of the transmission mechanism of monetary policy was an important prerequisite for implementing a sound monetary policy. It allows a judgment to be formed as to the extent and the timing of monetary policy decisions which are appropriate in order to maintain price stability, he said. Following the feedback from the workshop, Mr. Zeidy said the manual will now be published by CMI as a knowledge product that will provide member central banks with an analytical guide on application of advanced Panel Data Analysis. The decision to develop the manual was made during the 22nd Meeting of the COMESA Committee of Governors of Central Banks held in Bujumbura, Burundi in March, 2017.