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Statement by H.E. Ambassador Jean-Baptiste Natama, Chief of Staff, Bureau of the Chairperson African Union Commission at the Investment Symposium, Kuwait City, State of Kuwait, 18 November 2013

Statement by H.E. Ambassador Jean-Baptiste Natama, Chief of Staff, Bureau of the Chairperson African Union Commission at the Investment Symposium, Kuwait City, State of Kuwait, 18 November 2013

November 18, 2013

STATEMENT BY H.E. AMBASSADOR JEAN-BAPTISTE NATAMA
CHIEF OF STAFF, BUREAU OF THE CHAIRPERSON, AFRICAN UNION COMMISSION AT THE INVESTMENT SYMPOSIUM

KUWAIT CITY, STATE OF KUWAIT
18 NOVEMBER 2013

Excellency
Excellencies Members of Government of the State of Kuwait
Representatives of Regional and International Organizations
Members of the Private Sector
Distinguished Guests, Ladies and Gentlemen

I wish to begin by expressing my gratitude to all of you for taking time off your busy schedules to participate in this significant Investment Symposium being held in this beautiful capital city of Kuwait, State of the Kuwait. Please accept our warm welcome. I also wish to thank the Government and the People of this nice and hospitable country of Kuwait for hosting this Symposium and making available all these excellent facilities before us. I also wish to join hands with you in thanking Direct Aid, the Kuwait Chamber of Commerce and Industry, for accepting to jointly host this symposium with the African Union Commission.

Excellencies
Distinguished Guests,
Ladies and Gentlemen

Africa with the globe’s third largest population (15% of the world population), is not only a significant reservoir of human resources ready for active engagement in the continental and global economy, but also a vast potential market for both global traders and investors. According to the McKinsey & Co Report, about half of Africa’s one billion people will live in cities by 2030 from about 40 percent now and the continent’s top 18 cities will have combined spending power of $1.3 trillion.

The African continent is endowed with enormous natural and mineral resources. For instance, Africa accounts for 10 percent of global crude-oil reserves, 75 percent of Cobalt, 47 percent of Diamond, 80 percent of Platinum, 40 percent of Chrome, 38 percent of Uranium, 32 percent of Gold and 28 percent of Manganese. Moreover, the continent is rich with abundant flora and fauna, which renders it highly suitable for the promotion and development of eco-tourism. Thus, investment opportunities are abundant in the mining and tourism sectors. Africa is also largely agricultural based and provides opportunities for agro-processing and manufacturing.

Excellencies
Distinguished Guests, Ladies and Gentlemen

It is also the case that the rate of return on foreign investment is higher in Africa than in any other developing region, according to McKinsey and Co. Report. This means that Africa provides excellent investment opportunities for both the domestic and foreign investor.

For Africa to attract investment and record solid growth rates on a sustainable basis, appropriate macroeconomic policies are being formulated and implemented. There is also proper economic governance to ensure that macroeconomic fundamentals are right for economies to perform well.

Among other things, trade and financial markets have been liberalized in many African countries, the number of days it takes to process business permits and licenses have been reduced, a number of state-owned entities have been privatized to improve efficiency and competitiveness, and a number of countries are investing more in infrastructure development. Issues relating to controlling inflation, adopting appropriate exchange rate regimes, setting optimal interest rates and management of other economic variables have resulted in the adoption of appropriate fiscal and monetary policies in many of the African countries. These measures have contributed to improved competitiveness, high economic growth rates, and increased job creation.

These reforms have, among others, resulted in increased volume of investment. According to UNCTAD “World Investment Report 2010”, Foreign Direct Investment into Africa rose to $88 billion in 2010 from $9 billion in 2000, resulting in an increase of foreign direct investment (FDI) stock in the region to $ 511 billion. Further, the total value of the cross-border Merger & Acquisition sales in Africa reached its highest level: US$21 billion in 2010 (US$8 billion in 2007).

To pursue these impressive results, we need to build on infrastructure gaps which could enhance opportunities for investment, from the private sector and public-private partnerships. Private Sector is essential and could mobilize financial resources, help fill the gap towards sustainable infrastructure development and above all promote a more inclusive growth that can be translated into effective poverty reduction.

Excellencies
Distinguished Guests, Ladies and Gentlemen

The recent Arab-Africa Economic Forum which took place between 11-12 November 2013, in Kuwait has underscored the need for Africa and Arab countries to deepen practical cooperation in diverse areas (African cooperation in the field of development, Food Security, Investments, Trade Exchange and Non-Governmental Organizations) so as to push forward in an all-round way the new type of Africa Arab strategic partnership. I wish to make, in this connection, the following two proposals:

First, strengthen strategic coordination to uphold common interests. The two sides should maintain high-level exchanges, engage in closer political dialogue and consultations and step up coordination and cooperation on major global issues of mutual interest, with the view of increasing the voice and representation of developing countries in the international system and jointly build a more just and reasonable international political and economic order.

Second, enhance economic cooperation and trade to realize mutual benefit and win-win progress. The strong economic complementarity between Africa and Arab regions offers us broad prospects for mutually beneficial cooperation. We should work hard to increase investment flows, speedily reverse the investment downturn recently recorded. Africa and Arab countries will encourage more enterprises from both regions to invest in Africa and ask them to shoulder more social responsibilities and live in amity with the local people. We will combine economic cooperation, investment and trade with technology transfer and take active steps to launch technical and managerial personnel toward target beneficiaries.

Excellencies
Distinguished Guests,
Ladies and Gentlemen

Until the advent of the global economic and financial crisis, Africa had been on a relatively impressive growth trajectory, recording an average growth rate of about 6% per annum. This was no surprise, in view of the efforts across the continent to bring about rapid socio-economic development through a series of reforms aimed at improving macroeconomic management, strengthening institutions and improving the investment climate, among others. African economies have been generally resilient to the crisis, despite the negative effects of reduced demand for products and a decline in the level of remittances, just to mention a few.

Realizing this critical role of the private sector, the African Union (AU) Heads of State and Government at their Summit in January 2005 in Abuja, Nigeria, decided to institutionalize the African Union Private Sector Forum as an annual event to provide an interface between the African Union policy makers and private sector actors. Since taking this decision, five Forums have been organized in different African Union member states which have made important recommendations in support of private sector development in Africa for the consideration of AU Member States, private sector actors, and other key stakeholders.

In line with these recommendations, the AU Policy Organs have adopted instruments such as the African Union Private Sector Development Strategy and Action Plan, the African Union Micro-Finance Policy Framework and Action Plan, the African Union’s Minimum Integration Programme, the African Agri-Business and Agro-Industries Development Initiative (3ADI), PIDA (Programme on Infrastructure Development in Africa), the CAADP (Comprehensive African Agriculture Development Porgramme).

Excellencies,
Distinguished Guests,
Ladies and Gentlemen,

It is renowned today that enterprise development, trade and investment play significant role in the creation of value chains and is vital in the attainment of economic growth, employment and poverty reduction in African countries.

More specifically, Small and Medium-Size Enterprises are the engine of the economic development through the development of the private sectors for Africa as well as for Arab. The Small and Medium-Scale Enterprises contribute to boost the exports, transfer of technology, generate employment, and increase regional trade as well as entrepreneurship.

It is therefore important to heap on our efforts in ensuring financing of small and medium-sized projects through supporting maneuver of national development banks and social funds in the Arab and African regions due to their role in reducing unemployment and providing new business opportunities in the area of private sector.

I need to reveal that at the African Union Commission level, we are also looking at developing strategic partnership between the African private sector and those of other regions including the Arab world.

Excellencies,
Distinguished Guests,
Ladies and Gentlemen,

African Union Commission attaches great importance to boosting the Arab Africa strategic cooperation in all fields of common interests and we should therefore redouble our efforts to achieve the remaining objectives before our next symposium.

Successful development experiences over recent decades have consistently confirmed that good governance, sound economic environment and well-functioning physical and social infrastructure are essential ingredients for fostering private sector-led growth.

We welcome you and all those who wish to support the Africa’s development priorities, such as development of infrastructure, policies aiming at the processing and adding value to raw materials, regional integration, capacity building and human resource development.

Excellencies,
Ladies and Gentlemen,

Let me seize this opportunity to invite all Africa-Arab Businessmen and Businesswomen to support a formation of a platform for meaningful engagement between the African and Arab business actors. I invite you all to support these efforts through modernizing the export oriented industrial supply systems and positively responding to the ever increasing global demand for food and other agricultural products owing, among others, to urbanization, population growth and rising middle class in Africa as well as in the Arab world.

I wish you very fruitful deliberations and thank you for your kind attention.

I thank you.

Topic Resources

November 20, 2013

Third Africa-Arab Summit Resolutions

November 20, 2013

THIRD AFRICA-ARAB SUMMIT
19 - 20 NOVEMBER 2013
KUWAIT CITY, STATE OF KUWAIT

Min/Africa-Arab/Decl1(III) Rev.1
ق- 033 (13/11)21-س ع م ل (0607)

KUWAIT DECLARATION

We, the Leaders of African and Arab Countries, meeting in our Third Africa-Arab Summit in Kuwait City, the State of Kuwait, from 19 to 20 November 2013 under the Theme “Partners in Development and Investment”;

Expressing our gratitude to His Highness the Amir of the State of Kuwait Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, for all the efforts he exerted in order to ensure the successful convening of the Third Africa-Arab Summit, and Fully Believing that through His Highness well-known wisdom and genuine commitment, the Africa-Arab relations will achieve great progress in all fields;

Conveying our profound gratitude and appreciation to His Highness the Amir of the State of Kuwait Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, Amir of the State of Kuwait for his generous initiative, which demonstrates his commitment to the promotion of Africa-Arab cooperation in all fields, as evidenced by the directives given by His Highness to the Kuwaiti Fund for Arab Economic Development to grant concessionary loans to African countries to the tune of one (1) Billion US Dollars spread over the next five years. This initiative is also manifested through investment and its insurance to the tune of one (1) Billion US Dollars for the next few years, with emphasis on infrastructure, through cooperation and coordination with the World Bank and other International Institutions.

Also Expressing our sincere appreciation for the Annual Prize of one (1) Million US Dollars allocated by the State of Kuwait, in memory of the late Dr. Abdurahman Al-Sumet, for development research in Africa under the auspices of the Kuwait Scientific Development Institutions.

Expressing Further our profound gratitude to the Government and people of Kuwait for the warm welcome, generous hospitality, and efficient organization that provided most positive and favorable conditions for the convening of the Third Africa-Arab Summit;

Congratulating the African Union on the 50th Anniversary of the founding of the Organization of African Unity (OAU)/African Union (AU), and Welcoming the commemoration of this important milestone in African history;

Renewing our commitment to the common principles and goals enshrined in the Constitutive Act of the African Union and the Charter of the League of Arab States, and the promotion of the principles of International Law and the United Nations Charter, in particular the principles pertaining to the respect for national sovereignty of States, their territorial integrity and non-interference in their internal affairs, and Stressing our commitment to the protection of human rights and respect for International Humanitarian Law as well as our mutual goals to positively contribute to global security stability, development and cooperation;

Reaffirming our commitment to strengthen cooperation between Africa and the Arab Region on the basis of a strategic partnership that endeavours to maintain justice, international peace and security, while Expressing grave concern over the challenges posed by the continued prevalence of conflict, insecurity and instability in some parts of our regions;

Conscious of our multiple ties and interests by reason of geography, history and culture;

Expressing our desire to promote cooperation in the political, economic and socio-cultural fields;

Reaffirming our commitment to continue our efforts to overcome the challenges and removing the obstacles facing the activation and development of Africa-Arab cooperation and organize the meetings of its follow-up mechanism;

Guided by our common resolve to strengthen South-South cooperation as well as the solidarity and friendship between our countries and peoples with a view to fulfilling the aspiration of our peoples to consolidate Africa-Arab relations, based on the principles of equality, mutual interests and respect;

Welcoming the progress made by African and Arab countries in maintaining peace and stability as well as in improving respect for human rights and good governance in their respective regions;

Recognizing the role of the African Union’s Committee of Ten Heads of State and Government on the United Nations Reform in promoting and canvassing Africa’s position on the Reform in accordance with the Ezulwini Consensus and Sirte Declaration;

Welcoming the decision of the League of Arab States (LAS) Council at the level of the Summit to establish an Arab Court of Human Rights headquartered in Bahrain which is regarded as a support to the common Arab system in the field of Human Rights and enhancement, respect and protection for these rights in a frame of law prevailing in international accords, the principles of international law and International Bill of Human Rights;

Firmly condemning terrorism in all its forms and manifestations, as well as transnational organized crime such as hostage taking, human trafficking, drug trafficking, piracy, ransom payment and illicit proliferation of arms, and Reiterating our resolve and commitment to work together in this regard;

Underlining the need for Africa and the Arab World to exchange intelligence information to combat terrorism in all its forms and manifestations; in this regard, Appreciating the instrumental role played by the African Centre for Research and Study on Terrorism (ACRST) in Algiers, Algeria;

Welcoming the donation of 100 million US dollars by the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz to the United Nations Counter-Terrorism Centre (UNCCT) to combat terrorism;

Stressing our strong determination to decisively address the underlying causes of conflict and violence in Africa and the Arab Region, with a view to creating a conducive environment for the prosperity and well-being of the peoples of the two regions;

Mindful that the youth employment challenges in Africa and Arab Region is primarily structural, and Recognizing the need to pursue efforts to develop supporting policies for economic growth, and adopt financial policies that can guarantee sustainability in order to enhance poverty eradication policies including Millennium Development Goals (MDGs) and Post 2015 Development Agenda;

Commending the Resolution of the 3rd Arab Development Summit held in Ryad, Saudi Arabia in January 2013 to raise by 50% the capital of the Arab Financial Institutions, including the Arab Bank for Economic Development in Africa (BADEA) and appreciating the role of BADEA in the promotion of Africa’s Development;

Welcoming the support provided by the Arab Fund for Technical Assistance to African Countries (AFTAAC) to the Commission and its various regional offices such as the Semi-Arid Food Grain Research and Development (SAFGRAD);

Noting that the food gap and food insecurity are major impediments and exacerbate the vulnerability of certain segments of society;

Expressing our full support for regional integration through increasing the volume of Africa-Arab trade and investment, and deepening market integration that can significantly contribute to sustainable economic and integrated social development such as employment generation and poverty reduction, inflow of direct investment, industrial development and accelerated integration of the two regions into the global economy;

Underscoring the importance of the Africa-Arab Partnership Strategy and the Joint Action Plan 2011-2016 adopted during our Second Summit in 2010 in Libya and Reiterating our commitment to expedite their implementation;

Emphasizing the need to enhance the role and participation of the Private Sector and Civil society of our two regions in economic development, efforts as well as planning and implementation of joint programs and projects;

Have agreed to:

1. Promote South-South Cooperation between African and Arab countries and build closer relations between the Governments and peoples of the two regions through frequent visits and consultations at all levels;

2. Strengthen diplomatic and consular relations between African and Arab countries through regular consultations between diplomatic missions accredited to the United Nations (UN) and other regional and international organizations in, among others, Addis Ababa, Cairo, Brussels, Geneva, New York and Washington D.C, with a view to harmonizing positions and developing common policies on issues of mutual concern;

3. Urge all relevant stakeholders to find peaceful settlements to political crises in the two regions;

4. Support the progress made in peace building and post-conflict reconstruction and development in the two regions and encourage the countries concerned to pursue and consolidate their efforts, and Call upon the International Community and the International Financial Institutions to support these countries through the granting of debt relief as well as lifting of economic sanctions applied on some of them;

5. Enhance cooperation and coordination between African and Arab countries to combat terrorism in all its forms and manifestations, including criminalizing ransom payment to terrorists and confronting transnational crime to further support international efforts in this regard;

6. Strongly condemn terrorism and trafficking of all forms in Africa and in the Arab Region, particularly in the Sahelo-Saharan Region epitomized by the severe crisis in Mali, and Request Africa and the Arab Countries to support the implementation of the United Nations Integrated Strategy for the Sahel;

7. Reaffirm our strong commitment for a comprehensive Reform of the United Nations system, including its Security Council, to reflect current global realities and make it more regionally representative, balanced, democratic, effective and fair, and Call upon the two sides to coordinate their positions in this regard, taking into consideration the Ezulwini Consensus of the African Union (AU) and the relevant Resolutions of the League of Arab States (LAS);

8. Agree to create the necessary conditions to encourage and facilitate investment in African and Arab countries. Reaffirm further the need to increase the volume of trade and investment flows between the two regions, support the existing industrial development initiatives in order to reduce poverty and generate employment for our youthful population;

9. Enhance cooperation and facilitate investment in the field of energy aimed at jointly developing new and renewable energy sources as well as expanding access to reliable and affordable modern energy services in the two regions;

10. Call Upon the African Union Commission and the General Secretariat of the League of Arab States and the existing financing institutions from both regions to set up a task force to coordinate their efforts in the implementation of the Africa-Arab Joint Action Plan and other projects;

11. Coordinate our positions in the multilateral trade negotiations and work together with a view to achieving a balanced outcome at the 9th World Trade Organization (WTO) Ministerial Conference scheduled to be held in Bali, Indonesia, in December 2013, on potential deliverables in Trade Facilitation, Agriculture and an acceptable package for the Least Developed Countries (LDCs) as well as special and Differential Treatment provisions in favour of developing countries;

12. Strengthen the Africa-Arab Economic Forum to enhance the role and participation of the Private Sector and Civil Society Organizations of the two regions in the partnership process;

13. Call Upon the African and Arab financial institutions as well as other relevant stakeholders, including the Private Sector and Civil Society to support the acceleration of Africa-Arab inter-regional trade in accordance with the Joint Action Plan 2011-2016;

14. Call Upon African and Arab Chambers of Commerce and Industry, as well as other private sector institutions to conduct regular meetings and consultations with a view to strengthening the working relations between them;

15. Welcome the hosting by the Kingdom of Morocco of the 7th Session of the Africa-Arab Trade Fair from 19 to 23 March 2014, and Support the organization of Africa-Arab Fair every two years alternately in Africa and Arab regions and undertake other trade promotion activities and encourage the public and private sector of the two regions to actively participate in the preparation and organization of such events;

16. Encourage the governments, private sector and civil society of the two regions to play a major role in boosting agriculture;

17. Strengthen cooperation on issues concerning Rural Development, Agricultural Development and Food Security. In that regard, Commend the Kingdom of Saudi Arabia for the successful hosting of the 2nd Africa-Arab Ministerial meeting on Agriculture and Food Security, held in Riyadh on 2 October 2013;

18. Call Upon the African Union Commission (AUC) and the General Secretariat of the League of Arab States (LAS) to work in collaboration with the African and Arab Financial Institutions and the Private Sector to support the implementation of the infrastructure development programs in both regions with a focus on transport, water and sanitation, telecommunications and ICT;

19. Support the cooperation programmes on cultural exchanges aimed at consolidating the common values of African and Arab peoples, and Welcome the opening of King Abdullah Bin Abdulaziz International Center for Interreligious and Intercultural Dialogue and invite Member States to cooperate with the Center;

20. Reaffirm the need to strengthen cooperation in the field of education and scientific research programmes and share best practices in these two fields through the organization of joint activities;

21. Agree to elaborate integrated health programmes within the development plans. In that regard, Reaffirm our commitment to ensure that vulnerable groups have access to primary and essential types of medicines and therefore support initiatives to integrate the policies combating epidemic diseases (malaria, tuberculosis and HIV/AIDS) and non communicable diseases in educational, information and public awareness programs;

22. Support strategies and initiatives aimed at the elimination of discrimination against women in order to achieve equality and equity and raise public awareness regarding the human rights, values and principles, which guarantee women's rights and their role in society;

23. Call Upon all governments to formulate the necessary laws to protect youth and women and enhance their economic empowerment, ensure their participation in the decision-making process on an equal footing with men, and guarantee their full participation in all aspects of political, economic and social activities;

24. Promote the interactions between the African and Arab civil society organization to enhance people-to-people relationship and Call Upon the African and Arab Civil Society to continue to play their positive role in promoting peace, security, stability and humanitarian assistance and development, and request the African Union Commission and the General Secretariat of the League of Arab States to take all necessary steps to enhance interaction with these actors;

25. Strengthen the capacities of the African Union Commission and the General Secretariat of the League of Arab States and provide them with all necessary means, including financial and technical support, to enable them to effectively implement the Africa-Arab Partnership Strategy and Joint Action Plan 2011-2016, as well as this Declaration;

26. Support the setting up of the Africa-Arab Technical and Coordination Committee and other strategies to enhance cooperation and facilitation on migration issues and coordinate efforts of both regions, for the mutual benefit of the two partners and Express the necessity to provide security and social protection for migrants and support countries receiving migrants, refugees and displaced persons, in particular Burkina Faso and the Republic of Yemen;

27. Agree to establish an Africa-Arab Center for exchange of information in order to minimize the infiltration of illegal migrants;

28. Rationalize the establishment of Africa-Arab joint institutions to avoid duplication of efforts and financial burden on the two coordinating organizations and mandate the Coordination Committee of the Africa-Arab Partnership to take necessary actions in this regard;

29. Take actions and measures, including the activation and rationalization of joint structures, deemed essential for the effective implementation of the Action Plan;

30. Institutionalize meetings of the Monitoring and Follow-up Mechanism of the Africa-Arab Partnership and strengthen inter-secretariat consultations and involve the Sub-regional organizations to participate in implementation of this partnership;

31. Apply the principle of rotation in hosting Africa-Arab Summits and therefore, Agree to hold the Fourth Africa-Arab Summit in Africa in 2016.

Done in Kuwait City on 20 November 2013

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