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Statement by the Chairperson of the AU Commission H.E. Dr. Nkosazana Dlamini Zuma at the Seventh Conference of African Ministers in Charge of Integration (COMAI VII)

STATEMENT BY THE CHAIRPERSON OF THE AU COMMISSION H.E. DR. NKOSAZANA DLAMINI ZUMA

AT THE SEVENTH CONFERENCE OF AFRICAN MINISTERS IN CHARGE OF INTEGRATION (COMAI VII)

MINISTERIAL MEETING
17-18 July 2014

EZULWINI, KINGDOM OF SWAZILAND

 
Representative of His Majesty, His Excellency, the Right Honourable Dr. Barnabas Sibusiso Dlamini, the Prime Minister of the Kingdom of Swaziland
Deputy Prime Minister Hon. Paul Dlamini
Honourable Ministers and Leaders of Delegations
Chief Executives of Regional Economic Communities,
Excellencies, Commissioner for Economic Affairs, Dr. Anthony Maruping and Commissioner for Infrastructure and Energy, Dr. Elham Ibrahim
Leadership of both Houses of Parliament of the Kingdom Swaziland
Representatives from the UNECA, the ADB and the Nepad Agency
Ambassadors, High Commissioners and Members of the Diplomatic Corps
Officials from Capitals, the RECs and the AU Commission
Distinguished Guests, Ladies and Gentlemen,
I am delighted to be with you in this beautiful town of Ezulwini, Swaziland and to welcome you to the Seventh Conference of the African Ministers in Charge of Integration (COMAI VII).

We thank His Majesty’s, his Government and the People of the Kingdom of Swaziland for the hospitality and excellent arrangements and facilities accorded to the Conference and delegations. It is always a great pleasure to come back to Swaziland, where I spent five of my youthful years at the Mbabane Public Hospital as a doctor. Two of my daughters were born here, so it feels like coming home.

Your Excellencies,
This 7th Conference of Ministers in Charge of Integration focuses on the theme of ‘Regional integration through infrastructure development.”
During the yearlong Golden Jubilee celebrations of OAU/AU last year, Africa looked at the past, the present and planned for the future. Through consultations with Africans from different walks of life, young and old, men and women, rural and urban, workers and professionals, business persons, academics and artists, we developed our vision for the future, which we call, Agenda 2063. The Africa we Want.
They related their aspirations, that they want an Africa that is integrated and prosperous; peaceful, democratic and inspired by the values of Pan Africanism; an Africa that takes her rightful place in the world. Agenda 2063 is not only about aspirations, it is about bringing together into one framework our continental, regional and national plans. It also sets out milestones which we must achieve in the first five years, the first decade, by 2025, 2037, 2050 up to 2063.
The Malabo AU Summit agreed to allow more time for further consultations in Member states, the RECs, and inputs from broader society, to be submitted in writing by the end of October this year and by January we will adopt the framework and the first ten year plan.
It gives this important sector of Ministers in Charge of Integration a further opportunity to make an input into this framework, as has many other sectoral meetings of Ministers.
Excellencies,
Building on the lessons and experiences of the fifty years since the formation of the OAU, we know that the unity and integration of the continent and the development of its infrastructure remains key to constructing an Africa that is peaceful and prosperous.
At national levels, infrastructure such as energy, transport, ICT and infrastructure to expand access to basic services such as sanitation and water, health and educational facilities, are the important hardware for development and a better life for all our citizens. At regional and continental levels, through the Programme for Infrastructure Development in Africa (PIDA) and the Infrastructure Master-plans of the RECs, we seek to connect African capitals and commercial centres through road, rail and ICT, to power our economies and communities through energy projects, including renewable and fossil fuel energy, and to increase agricultural production through irrigation projects, building storage facilities, distribution infrastructure and markets.
Infrastructure are the hardware without which economic and social development, industrialization, agriculture and intra-Africa trade on the continent will remain very slow. We therefore have to address the constraints - such as project development and implementation capacity and skills, financing, and the cross-border coordination issues that hamper the implementation of PIDA priority projects.
The software are equally important, especially the need for investments in our people, as our most precious resources: in their education, access to basic services and health. Our development will be continue to be at half-pace if we also do not empower women to play an important part in the social, political and economic affairs of our societies.
In the same vein, we must make full use of the fact that we are a youthful continent. We therefore talk about an education and skills revolution, especially in science, technology, research and innovation, to ensure that we educate, train and empower millions of young people in high and medium level skills, to enable us to develop, build and maintain the infrastructure we need, to beneficiate our natural resources, to build agribusinesses and to industrialize.
To effect this education and skills revolution, we must act at national level, but we must also work together at regional and continental levels; by strengthening and harmonizing our university, technical and professional training, so that qualifications are recognized across the continent, to build centres of excellence and share critical skills.
Technology also allows us to leapfrog development, and with the advances in ICT, we are exploring e-learning with universities and industry, to enable us to massively increase access to further and higher education.
The other software issues are the integration actions on which we will receive reports today. We have amongst other things undertaken to launch the Continental Free Trade Area by 2017, a target that is now less than three years away; we have projects in some RECs to harmonise financial regulations and practices; in others we cooperate around border and customs issues and deal with non-tariff barriers that make the flow of goods, services and persons difficult.
We must however agree, that given the competitive advantages of the continent (especially our human and natural resources) and the need to claim our proper stake of global trade and production, the pace of African integration is very slow. Indeed we hope the discussions at this Conference, will give us ideas as to how concretely to accelerate integration.
The benefits and synergies of integration are no doubt well-known to us all, including larger markets. An economy of 50 million can easily be ignored, but an integrated economy of over two billion people, will be difficult to ignore. Integration therefore remains at the core of the Pan African vision and of the mission of the African Union.
Your Excellencies
It is for these reasons that Integration is seen as a critical enabler of Agenda 2063, and Agenda 2063 as a driver for continental integration.
The just-concluded AU Summit in Malabo noted the aspirations of our people that emerged from the consultations we held with different sectors, including the RECs and different Ministerial meetings. In addition, it noted that Agenda 2063 encapsulates our various continental, regional and national plans and frameworks into a coherent whole.
More importantly, it urged all of us, to ensure that we prioritise those actions that will in the coming decade move our countries, regions and Africa towards the critical tipping point, where transformation becomes real and irreversible.
In the Agenda 2063 popular version, a number of such priority actions are identified, including the critical issues of skills and infrastructure we spoke about earlier, but also the free movement of people and goods, including consideration of an African passport.
The call to action also talks about flagship projects such as the development of a Pan African integrated high speed rail network, that will not only link all our capitals and commercial centres, but also provide an important boost for research, development and technology transfer, skills development, manufacturing and to intra-Africa trade and tourism.
We will have a session later when we will discuss in further detail Agenda 2063 and our Post 2015 Common African Position. These contain Africa’s vision and aspirations for itself. It goes without saying, that unless we take responsibility for ensuring that this vision is realize, no-one else will. This includes the issue of domestic resource mobilisation to finance African development.
One of the bitter lessons from the last fifty years is that we cannot continue to develop visions and frameworks, and then expect others to take responsibility for financing our development and institutions.
Long time ago, our founding fathers and mothers, said that we have to be self-reliant, and that donor money, no matter how important and appreciated, cannot be the mainstay of African development. That is still true today.
We have the opportunity to do things differently: to be confident that our peoples’ aspirations and the dream of an Africa that is integrated, peaceful and prosperous is achievable, provided that we construct this future based on actions taken now. We all must play our part, as Member states, Regional Economic Communities and continental institutions
On that note, may I thank all of you for attending this important Conference and wish the 7th COMAI fruitful deliberations.
Thank you for your kind attention.

Dates: 
July 17, 2014
File: 
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English

Report f the 5th Meeting of AU Sub-Committee of DGs of Customs, Cotonou, Benin

5th ORDINARY MEETING OF THE AU SUB-COMMITTEE OF DIRECTORS GENERAL OF CUSTOMS

12 – 13 September 2013
Cotonou
Benin Doc. CCD/5.AUSC.DG/R1
Original. English

REPORT

REPORT OF THE 5TH ORDINARY MEETING OF THE AFRICAN UNION
SUB-COMMITTEE OF DIRECTORS GENERAL OF CUSTOMS
12-13 SEPTEMBER 2013, COTONOU, BENIN

Introduction

1. The 5th Ordinary Meeting of the African Union Sub-Committee of Directors General of Customs was held from 12 to 13 September 2013 at the Palais des Congres in Cotonou, Benin. The theme of the meeting was ‘Towards a Trade Facilitation Strategy for the Continental Free Trade Area’.

Participation
2. The following Member States attended the meeting: Algeria, Benin, Cameroon, Democratic Republic of Congo, Republic of the Congo, Côte d’Ivoire, Ethiopia, Gabon, Guinea, Gambia, Ghana, Kenya, Liberia, Malawi, Mali, Mozambique, Niger, Nigeria, Senegal, Seychelles, South Africa, South Sudan, Sudan, Swaziland, Togo, Tunisia, Uganda and Zimbabwe. The Regional Economic Communities and International organizations present were CES-SAD, COMESA,EAC, ECOWAS, FEWACCI,IOM, SADC, UNECA, WCO-ROCB ESA, CCES and WCO. List of participants is attached as Annex I.

Agenda Item 1: Opening of the Meeting

3. The Director General of Benin Customs and Excise, Colonel Paul Lafia Tabe welcomed his counterparts to Cotonou, Benin, the venue of the 5th Ordinary Session of the AUSCDG of Customs. He expressed his gratitude to H. E. Dr. Thomas Boni YAYI, the President of the Republic of Benin for his support in hosting the meeting.

4. In his remarks, the Director General bemoaned the low level of intra African Trade, which currently is estimated to be 12 %, a figure which is far low compared to other regions of the world. He concluded his remarks by recalling the Theme of the WCO for 2012, ‘Borders Separates, Customs Unites’ and urged Africa’s Customs Administrations to work hand and glove with trade so as to support Africa’s Regional Integration Agenda and establishment of a Continental Free Trade Area (CFTA).

5. The Secretary General of the World Customs Organization (WCO), Mr. Kunio Mikuriya, expressed his gratitude to the African Union Commission for inviting him to the 5th Ordinary Session of the AUSCDGC, and the Government and People of Benin for hosting the meeting. He pointed that the Theme of the meeting also reflects a shared vision of the WCO, and that Customs administrations world over are the engines of Trade Facilitation who play a very important role in the movement of people and goods across national borders.

6. Mr. Mikuriya highlighted the 2014-2017 WCO Strategy and how Customs can use some of the provisions therein such as the Economic Competitiveness Package, the Data Model and the RKC to improve the efficiency of the Customs Administrations. He reiterated the commitment of the WCO to support AU’s programmes in the area of Customs reforms and modernization and concluded by urging the Directors General of Customs to exchange ideas and share their experiences so as to come with sound ideas in support of the envisaged CFTA.

7. In her opening remarks, Her Excellency, Mrs. Fatima Haram Acyl, Commissioner for the Department of Trade and Industry at the African Union Commission thanked the Government and People of Benin for hosting the meeting. H.E. Commissioner Acyl recalled the Decision of the AU Heads of State and Government during the 18th Ordinary Session of their Assembly held in Addis Ababa, Ethiopia in 2012 to Boost Intra African Trade and Establishment of the Continental Free Trade Area by 2017, as an indicative date. She also pointed that work is already ongoing and various structures of the Architecture are being put in place and to the realization of the Decision requires commitment of all stakeholders, especially from the AUSCDGC.

8. H.E. Commissioner Acyl pointed that trade facilitation is important for Africa to realize its position in the global arena, but also faces a lot of challenges in the process. Such challenges vary from existence of poor and, at times obsolete telecommunications services, poor physical infrastructure and that almost one third of African Countries do not have access to oceans or seas to facilitate movement of their goods to overseas markets. She concluded by sharing with the Directors General the African Group’s position on the WTO Trade Facilitation Negotiations and the Round scheduled for Bali, Indonesia towards the end of 2013.

9. Her speech is attached as Annex II to this Report

10. The Minister of State, H.E. Francois Abiola on behalf of H.E. Dr. Thomas Boni YAYI, the President of the Republic of Benin welcomed the Directors General to Cotonou and wished them a pleasant stay. He thanked the Commission of the African Union for having chosen Cotonou as the venue of the 5th Ordinary Session of the AUSCDGC and also for the work done since the Decision to fast track the establishment of the CFTA was taken.

11. H.E. Francois Abiola highlighted on Africa’s low trade levels and urged the meeting to come up with sound decisions on the removal of Non-Tariff Barriers so as to facilitate legitimate trade. He also pointed on some of the challenges encountered in the movement of goods across national borders, which range from the existence of poor physical infrastructure to unethical behavior by some border officials, and the need to address them. H.E. the Minister of State concluded his opening remarks by urging the Directors General to come up with policies that also promote small scale traders, especially women and thereafter, he declared the meeting officially open.

Agenda Item 2 : Election of the Bureau

12. The Bureau of the meeting was constituted as follows:-

• Chair - Benin
• Vice Chair - South Africa
• Rapporteur - Cameroon
Friends of the Chair
• WCO West/Central Region Nigeria
• WCO East/Southern Region Malawi
• WCO Northern Region Algeria

Agenda Item 3 : Adoption of the Agenda and Organization of Work

13. The agenda was adopted without amendment and is attached as Annex III.

14. The meeting adopted the following as its working schedule as suggested by the Commission:-

• Morning: 09.00 – 13.00
• Afternoon: 14.30 – 18.00

Agenda Item 4 : Presentation of the Benin Customs and Excise

15. In their presentation, the representatives of Benin Customs and Excise underscored the important role that Customs play in the overall economy of Benin. They elaborated the various milestones that the Customs achievements through its reform and modernization program such the introduction of ASYCUDA ++. The presentation also highlighted the Single window System that enables traders to accomplish clearance formalities electronically. In addition to the introduction of the single window, the meeting was informed that Benin Customs has also established a risk management system and Valuation data base, revised the customs code, introduction of pre-clearance controls and post clearance audit.

16. These reforms have yielded considerable benefits notably the reduction in clearance time, simplification of clearance procedures which have led to the overall increase in Customs revenue. This has also improved relations between Customs and other stakeholders in the logistics chain.

17. In the discussions that ensued the meeting demonstrated interest on the issues covered by the presentation especially, the single window, the valuation certification system and the use of scanners to ameliorate customs controls.

Agenda Item 5: Consideration of the Report of the Customs Experts Meeting

18. The Chairperson of the Meeting of Experts presented the Report of their Meeting. In the discussions that ensued, the Directors General raised the following issues;

i. There is need to seek clarification from the High Level African Trade Committee on the mandate of the Customs Technical Committee under the continental free trade area Architecture vis-à-vis the continued existence of the Meeting of AU Sub-Committee of the Directors General of Customs;

ii. While Customs Administrations have a role to play on the development and negotiation of rules of origin, in most countries this is a responsibility of Ministries of Trade;

iii. Economic Partnership Agreements (EPAs) between some African countries and the European Union are threatening regional integration programmes in African countries.

19. Thereafter, the Directors General made the recommendations which are attached as Annex IV.

Agenda Item 6: Exchange of views on The Trade Facilitation Strategy for
Boosting Intra -African Trade (BIAT) and Establishment of a
Continental Free Trade Area

20. The Director General of Swaziland Revenue Authority made a presentation on a proposal for the development of a common Single Window system for Africa. The Directors General considered the proposal and made the following observations:

I. The WCO has already developed a comprehensive package from which Customs Administrations can borrow from

II. Single Window systems world over are complex and diverse and it may be difficult to have a ‘one size fits all approach’

III. Member States are at different levels on the development and implementation of Single Window systems, and as such, the proposal could be a challenge to some countries to embrace

IV. Some countries lack capacity to implement the proposed measures and may require some assistance in this regard

V. The approach to the implementation of Single Window System may vary from one country to the other; some would wish to engage the private sector through PPPs, while for others, the respective Governments would want to own it

21. The Directors General recommended that the Experts meeting should examine the proposal for the development of a common single window system for African taking into consideration the WCO Single Window Compendium and best practices from countries that have already implemented such systems, and report to the 6th meeting of the Directors General of Customs.

22. With regards to the discussions on the proposed CFTA, the Directors General noted that it will be important to carry out studies at the national and regional levels as may be appropriate to assess the impact of the CFTA on customs revenues, the establishment of a compensation fund for revenue loss and other issues related to rules of origin and competitiveness.

23. The Directors General then recommended that the AUC in collaboration with UNECA should commission an impact study in the establishment of the CFTA in order to provide Member States with a good base for engagement in the negotiations.

Agenda Item 7: Date and Venue of the 6th Ordinary Meeting of the African
Union Sub-Committee of the Directors General of Customs

24. The 6th Ordinary Session of the AUSCDGC will be held in 2014 in Congo Brazzaville, Republic of Congo

Agenda Item 8: Any Other Business

25. No issues were raised under this agenda item

Agenda Item 9: Approval of the Record, the Recommendations and the
Framework of Action for the year 2013-2014

26. The report and recommendations were adopted as amended

Agenda Item 10: Vote of Thanks

27. A representative of the Togo delegation delivered a vote of thanks on behalf of the Directors General of Customs. He thanked the Government and People of Benin for hosting their 5th Ordinary Session.

Agenda Item 11: Closing Ceremony

28. The Director General for Benin Customs and Excise thanked the African Union Commission for having chosen Benin as the host of the meeting. He also expressed his gratitude to the Secretary General of the WCO, the RECs and international organizations for having been able to attend the meeting. He wished his counterparts safe journeys to respective countries.

29. In his closing remarks, the Secretary General of the WCO expressed satisfaction in the manner the meeting was held. He urged the Directors General to take advantage of the various WCO tools and practices available to support the establishment of the CFTA.

30. The Head of Customs Cooperation division of the African Union Commission thanked the hosts for the sound preparations done to enable hosting the meeting. He also thanked the Directors General for having been able to attend the meeting, and for the high quality of their contributions. He informed the Directors General that the recommendations of their meeting were going to be submitted to the 8th Conference Ministers of Trade scheduled to be held at the Commission Headquarters in Addis Ababa, Ethiopia in October 2013.

30. The Minister of State of Benin Government thanked the Experts, the Directors General, AUC and staff from Benin Customs and Excise for the various roles they played to make the meeting a success. He complimented the Directors General for the high quality of their work and had no doubt that the recommendations made would be acceptable to the Policy Organs of the African Union.

31. The Minister of State recalled the role played by Customs Administrations in both collecting revenue for respective Governments and the need to facilitate legitimate trade. He congratulated the Republic of Congo for having been chosen as the host of the 6th Ordinary Session of the Directors General of Customs, before formally closing the meeting.

ANNEX IV

RECOMMENDATIONS OF THE 5TH MEETING OF THE AFRICAN UNION
SUB-COMMITTEE OF DIRECTORS GENERAL OF CUSTOMS

On the activities of the Customs Cooperation Division of the African Union Commission

I. That AU Member States are urged to consider seconding Customs Attaches to the Customs Cooperation Division through their respective Diplomatic representations in Addis Ababa, Ethiopia. The AUC should within 3 months provide Member States with information for secondment and skills set required for areas requiring support;

II. That the AU is urged to maintain the AU Sub-committee of Directors General of Customs despite the endorsement of a Customs Technical Committee under the CFTA architecture;

III. That the AUC is urged to take action in regard to the official recognition of the AUC-ECA-AfDB Sub-Committee on Customs Cooperation;

IV. That the AU Commission is urged to initiate the process of developing the draft Protocol on Customs Cooperation in accordance with Article 39 of the Abuja Treaty.

On the interconnectivity of Computerized Customs Information Systems

I. That the Directors General endorse the Road Map and Strategy for the continental Interconnectivity of Computerized Customs Information Systems in Africa;

II. That Member States in collaboration with the RECs are encouraged to put in place the necessary legal framework and other arrangements for the interconnection of their computerized Customs Information Systems to facilitate exchange of data;

III. That Member States in collaboration with the RECs are urged to harmonize their data on the basis of the WCO Data Model in order to facilitate electronic exchange of information.

On the outsourcing of core Customs functions

That Member States are encouraged to provide Customs Administrations with the necessary resources to enable them acquire the appropriate capacity in view of gradually phasing out intervention of pre-shipment inspection companies and other similar private operators in core Customs functions.

On Rules of Origin

I. That the Technical Working Group should continue its work on Rules of Origin especially in relation to the proposed Draft Framework on Rules of Origin for the CFTA and the Matrix on Road Map for Rules of Origin Negotiations;

II. That in the forthcoming TFTA negotiations on Rules of Origin, due consideration should be given to the draft negotiating text proposed by the African Union Technical Working Group on Rules of Origin.

On the Revised Kyoto Convention

I. That when drafting CFTA negotiating texts at the continental level, the RKC provisions could be included in the texts such that any Party that would have agreed / signed the texts will be bound to implement the elements of the RKC;

II. That Regional Economic Communities are urged to formulate their legislation on the principles of the RKC to facilitate accession by Member States;

III. That the AUC and the RECs in collaboration with the WCO endeavor to promote the advantages linked to accession and the implementation of the RKC at the country level;

IV. That Members States are encouraged to accede to the 10 Specific Annexes in addition to the General Annex;

V. That Member States are urged carry out self-assessment of their national legislation in comparison with the RKC, where necessary with technical assistance from the WCO;

VI. That Member States are encouraged to put in place change management policies where they do not exist to support implementation of the RKC;

VII. That Customs Administrations are encouraged to lobby other relevant national institutions on the need to fast track pending national processes for accession to the Convention;

VIII. That Members States are encouraged to utilise the RKC toolkit developed by the WCO and to continue to work with the WCO on the development of other RKC tools to facilitate implementation of the RKC.

On Coordinated Border Management

I. That the AU Commission, with the assistance of RECs and technical partners, should develop a continental policy framework, on Coordinated Border Management and submit for adoption by the Policy Organs of the Union;

II. That Member States are urged to consider raising awareness and pursuing strategies to formulate clear national policies on Coordinated Border Management in Member States and institutionalize such practices in the African Union drawing inspiration from regional policies on CBM;

III. That the AUC should organise multi-sectoral workshops at national, regional and continental levels with a view to building the capacity of institutions as well as enhancing their coordination mechanisms;

IV. That AU Member States are urged to consider using the WCO Project Map Database to facilitate donor agency interventions in CBM efforts in order to avoid duplication and ensure efficient utilization of resources in line with the Paris, Busan and Accra Declarations on aid effectiveness.

On the Implementation Matrix for the CFTA

That the AUC should take all necessary steps to ensure continued collaboration with the RECs to ensure their full participation into the CFTA process.

On International Trade Agreements Issues

I. That Customs Administrations are urged to continue to engage effectively on trade facilitation aspects of the WTO Negotiations in collaboration with Ministries of Trade and the Geneva based African Group;

II. That Customs Administrations are urged to support the African position on the necessity of equally binding provisions on technical / financial assistance and capacity building.

On other matters

That the AUC is urged to prepare a draft proposal to review the Rules of procedure of the Sub-Committee of Directors General of Customs with a view to institutionalizing the meeting of Experts proceeding the session of the Sub-Committee.

English

Key Note Address for H.E Tumusiime Rhoda Peace Commissioner for Rural Economy and Agriculture African Union Commission at the International Conference on Revolutionising Finance for Agricultural Value Chains

Key Note Address for H.E Tumusiime Rhoda Peace
Commissioner for Rural Economy and Agriculture
African Union Commission
at the International Conference on Revolutionising Finance for Agricultural Value Chains
14-18 July 2014,
Nairobi, Kenya

Prof. Kinandu Muragu, Executive Director, Kenya School of Monetary
Studies

Dr. Evans Kidero, Governor, Nairobi County

Prof. Njuguna Ndung’u, Governor, Central Bank of Kenya

Millison Narh, Chairman of the African Rural and Agricultural
Credit Association (AFRACA) and Deputy Governor, Bank of Ghana

Luca Alinovi, Representative, Food and Agriculture
Organisation of the United Nations (FAO), Kenya

Michael Hailu, Director, The Technical Centre for Agricultural and
Rural Cooperation (CTA) of the African, Caribbean and Pacific (ACP) Group of States

H.E Ambassador Lodewijk Briet, Head of Delegation, European Union

Honourable Felix Koskei, Minister of Agriculture, Livestock and Fisheries,
Kenya

Honourable Akinwumi Ayodeji Adesina, Minister of Agriculture and Rural Development,
Nigeria

Honourable Ministers from other AU Member States

Excellences, Distinguished Delegates, Ladies and Gentlemen,

I. Introduction

It is an honour for me to be part of this landmark dialogue on Revolutionising Finance for Agricultural Value Chains. Let me register the appreciation of the of the African Union Commission. I thank the Government and people of Kenya for graciously hosting this dialogue, for generous hospitality and for the excellent facilities placed at our disposal. Let me also, at this juncture, express gratitude to the Governor of the Central Bank of Kenya for the invitation. I also wish to commend the Bank’s collaboration with the African Rural and Agricultural Credit Association and the Technical Centre for Agricultural and Rural Cooperation in organisng this dialogue. The African Union is proud to partner with you because your initiative complements the efforts we are championing on the continent in the framework of Accelerated African Agricultural Growth and Transformation in line with the Comprehensive Africa Agriculture Development Programme (CAADP).

It is, therefore, my singular honour to deliver this statement on behalf of the African Union Commission.

II. Importance

I need not over-emphasise the importance of agriculture because the high turn up of participants at this international conference is eloquent testimony of the value that leaders, stakeholders and partners accord to agriculture. This commitment and enthusiasm is encouraging and promising that this time African agricultural transformation will materialise just like the green revolution in Latin America and Asia.

Let us, all the same, remind ourselves of a few pertinent facts about the driving role agriculture plays in the economic development and future growth of the African continent. You are aware that the agricultural sector remains the predominant sector in most AU Member States. We cannot tire to talk about this. It accounts for up to 80% of employment, 20% of total exports, and 40% of GDP. It has been established that agriculture, and agriculture related industries in Africa, are the top winners, above all other sectors, for a broad base of African citizens and from the perspective of returns on investment.

So, if the most important resource that Africa has are its own citizens and if for most of our citizens the occupation is agriculture, which other sector would deserve more attention than agriculture and supporting industries if we want to raise the standard of living of our people in pursuit of prosperity which is part of the vision of the African Union that aspires for: “An integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena.’’….?

III. Support

Since it goes without saying that agriculture needs, deserves and must have support, it is imperative that we agree on the kind of investment needed for agriculture and effective and efficient mechanisms for delivering this investment for agriculture to produce the results and impacts we desire for the Africa We Want as captured in Africa Agenda 2063:
“A Shared Strategic Framework for Inclusive Growth and Sustainable Development & A Global Strategy to Optimize the Use of Africa’s Resources for the Benefit of all Africans”. Our convening here for the International Conference on Finance for Agriculture acknowledges that agriculture is a business, which begins on the farm and continues through building value-chains that defines the steps toward achieving the Africa where every citizen would like to live and not to migrate from.

The critical support that Africa’s agricultural sector requires is five-fold:

(i) To coordinate from a multi-sectoral approach public sector investment with rural economies at the centre where small holder farmers are empowered to evolve into enterprises that can contribute to and benefit from their sweat. Smallholder farmers have been the bedrock of African agriculture and should, therefore not be taken for granted or marginalised but rather empowered ;

(ii) To attract African financial capital into agriculture and supporting industries to strengthen agriculture value chains while at the same time improving financial sector performance culminating in resilient economies and societies. Governments need to put in place an enabling institutional and policy environment to encourage private sector finance and investment in agriculture;

(iii) To foster African innovation and entrepreneurship to catalyse Africa’s agricultural transformation while reducing risks from climate change and market shocks; to build a resilient citizenry

(iv) To focus across the board on women access to productive resources especially land and finance so that they can move from being farmworkers towards producers and owners of agribusiness;

(v) To harness the energy, quick-learning, and creativity of the youth and channelling them towards agricultural entrepreneurship. Mechanization of farming and value chain development are instrumental in attracting the youth to agriculture. And as you know definitely we shall not attract our youth to farming when we still use a handhoe.

This support needs to be implemented simultaneously, and not piecemeal, if it is to deliver the desired results and impacts in an accelerated manner. This is the only way to capture the moment that Africa has in its history for renaissance in line with the Theme of the just-concluded 50th Anniversary of the OAU/AU: Pan Africanism and African Renaissance.

If you look at resource allocation, how much goes to agriculture? Suppose this amount was increased, imagine what impact it would have on households, communities and nations, their economies and stability. And as you know, food security is really political, it brings crises.

Africa needs to learn from the West; we do not have to reinvent the wheel. Look at the U.S the world's leading economy, its foundation is agriculture. They invested in research, they invested in agribusiness; and in fact in the entire agricultural value chain. Up to now they still subsidise their agriculture; and which developed economy in the world does not subsidise its agriculture? Isn't it time that we put our money where our mouth is, as the saying goes? Why should we say no to subsidies for agriculture when even the developed countries like USA and others do subsidise their agriculture?

We have, in fact, seen that the non-oil economies that are registering fast growth, are those that are investing significantly in agriculture – am not going to mention them but they are there in Africa. They are investing in extension services, agricultural credit, targeted fertilizer subsidies, and so on. This is an example worth emulating.

IV. Opportunities

Fortunately, we are favoured with the following opportunities to tap for agricultural transformation:

(i) The agricultural vision, the Comprehensive Africa Agriculture Development Programme (CAADP) underscores the importance of agriculture and serves as a rallying framework for all AU Member States, Regional Economic Communities and their stakeholders and partners to work together to achieve the Accelerated African Agricultural Growth and Transformation. Over two thirds of AU Member States have signed CAADP Compacts and formulated National Agriculture, Food and Nutrition Investment Plans, ready for implementation, and in some cases already under implementation.

(ii) Africa has 60% of the world’s uncultivated arable land which when responsibly managed will underpin world-class agricultural transformation in Africa;

(iii) Africa has abundant water resources sufficient for irrigated agriculture, fisheries and aquaculture and sanitation for a healthy and productive population;

(iv) Africa’s population heralds huge and dynamic consumer markets given that by 2050, Africa will be home to one-fifth of the world’s population;

(v) Africa has the world’s youngest population that is dynamic and innovative who offer prospects for agricultural transformation and prosperity;

(vi) Africa is urbanising at an unprecedented rate opening opportunities for agribusiness and agroprocessing as part of the agricultural value chain;

(vii) The momentum towards the establishment of the Continental Free Trade Area by 2017 will boost intra-African trade dominated by African agricultural products because that is where Africa has a comparative advantage;

(viii) The operationalization of the Programme for Infrastructure Development in Africa (PIDA) will also boost intra-African trade dominated by African agricultural products. Intra-African trade requires appropriate infrastructure.

(ix) The purchased inputs business in Africa is ripe for investment given the lowest rank that Africa occupies in the world in the use of fertilisers, certified seeds, irrigation equipment and others;

(x) The market for African produced agricultural products will equate to at least USD40 billion which is the price tag for Africa’s current annual food imports. This money we donate it to buy food from outside and we also end up donating our jobs. And with world food production needing to rise by 40% over the next 30 years, Africa could be an important part of the solution.

These opportunities illuminate what is possible when you, the leaders, stakeholders and partners work together in public private partnership in pursuit of transforming Africa’s agriculture and economy.

V. Conclusion

Your Excellences, Honorable Ministers, Ladies and Gentlemen, I trust that, in the spirit of Pan Africanism and African Renaissance, you are all committed and determined to double your efforts to take advantage of the opportunities I have enumerated and more, in order to stem chronic hunger and malnutrition, water borne diseases, dependency on food imports, and food supply uncertainty. When we achieve the Accelerated African Agricultural Growth Targets we will ensure an unshakeable foundation for agriculture and Africa’s national, regional and continental economies in a way that perpetually fosters innovation, public and private investment in agriculture, and is fertile ground for Africa’s youth to realize their dreams and ambitions. This vision was expressed at the 23rd Ordinary Session of the Assembly of Heads of State and Government of the African Union, held in June 2014, in Malabo, Equatorial Guinea. Further, the overwhelming participation here of over 800 persons, from 80 countries as we have heard at this landmark Finance for Agriculture meeting, indicates the tremendous alignment in today’s Africa that agriculture is the priority sector for wealth building and prosperity of Africa’s citizens, today and long into the future.

I look forward to a lively and productive dialogue during this week so that we all return with insights that we can apply toward increasing African investment in agriculture and accelerating African agricultural transformation and growth.

I thank you for your kind attention.

Dates: 
July 15, 2014
File: 
PDF icon Keynote Address (En)
English

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