Decision on the Report of the Extraordinary Session of the AU Conference of Ministers of Trade (CAMOT)
Decision on the Report of the Extraordinary Session of the AU Conference of Ministers of Trade (CAMOT)
Promoting Africa’s growth and economic development by championing citizen inclusion and increased cooperation and integration of African states.
Promoting Africa’s growth and economic development by championing citizen inclusion and increased cooperation and integration of African states.
Agenda 2063 is the blueprint and master plan for transforming Africa into the global powerhouse of the future. It is the strategic framework for delivering on Africa’s goal for inclusive and sustainable development and is a concrete manifestation of the pan-African drive for unity, self-determination, freedom, progress and collective prosperity pursued under Pan-Africanism and African Renaissance.
H.E President William Samoei Ruto (PhD), President of the Republic of Kenya and the African Union Champion on Institutional Reform. H.E. Ruto was appointed during the 37th Assembly of Heads of State and Government in February 2024 to champion the AU Institutional Reform process taking over from the H.E Paul Kagame, President of the Republic of Rwanda who led the implementation of the reform process since 2016.
The AU offers exciting opportunities to get involved in determining continental policies and implementing development programmes that impact the lives of African citizens everywhere. Find out more by visiting the links on right.
Element visible on Department Page
Decision on the Report of the Extraordinary Session of the AU Conference of Ministers of Trade (CAMOT)
Decision on the Report of 3rd CAMRMRD
Declaration on Boosting Intra-African Trade and the Establishment of a Continental Free Trade Area (CFTA)
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.
Decisions of the Executive Council Twenty-Fifth Ordinary Session, 20 – 24 June 2014 Malabo, Equatorial Guinea
Decisions, Declarations and Resolution of the Assembly of the Union Twenty-Third Ordinary Session, 26-27 June 2014, Malabo, Equatorial Guinea
Decision on the Report of the High Level African Trade Committee on Trade Issues
Nairobi CAMI-20 Declaration on Accelerating Industrialization on Africa within the Post 2015 Development Agenda
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.
STATEMENT BY
H.E Dr. ANTHONY MOTHAE MARUPING
COMMISSIONER FOR ECONOMIC AFFAIRS, AFRICAN UNION COMMISSION
AT THE EXPERTS MEETING OF
THE SEVENTH CONFERENCE OF AFRICAN MINISTERS IN CHARGE OF INTEGRATION (COMAI VII)
14-16 JULY 2014
EZULWINI, SWAZILAND
Excellencies, Distinguished, Ladies and Gentlemen,
On behalf of the African Union Chairperson, H.E. Dr. Nkosazana Dlamini Zuma, It is both an honour and privilege to welcome you all to the Experts Meeting of the 7th Conference for African Ministers in Charge of Integration (COMAI VII), taking place in this beautiful city of Ezulwini. It is gratifying to see you in large numbers today, a testimony of the great importance you attach to the realization of Africa’s integration agenda.
To begin with, permit me to express my sincere gratitude and appreciation to His Majesty King Mswati III of the Kingdom of Swaziland, the entire Government and people of Swaziland for the warm hospitality accorded to all delegations and for agreeing to host this Conference at a very short notice. Your brotherhood undoubtedly bears witness to the continued commitment of the leadership of the Kingdom of Swaziland to stand in solidarity with the African Union and support it in its realization of our integration agenda.
Excellencies, Distinguished, Ladies and Gentlemen,
Our theme for the Conference, ‘‘Infrastructure and Integration in Africa’’, could not have been placed on your agenda for the Conference of African Ministers in Charge of Integration, at a more appropriate time when our vision for the next fifty years, Agenda 2063, The Africa we Want, is adopted.
We are already in Year One of the fifty years horizon of Agenda 2063. We are therefore paying particular attention to those priority areas that will propel our Agenda forward in the first decade. Amongst the things our citizens called for during the consultations and which we ourselves prioritized in our four year Strategic Plan include: the revolution in education, skills, science, technology and innovation; and our young people are calling for harmonized curricula so they can study and work anywhere in the continent; the free movement of Africans; the Continental Free Trade Area; industrialization and economic development; and connecting all capitals and commercial centres through infrastructure, rail and roads, energy and ICT.
As we shift gear towards implementation of Agenda 2063, we urge all concerned parties, especially Member States and RECs, to be fully engaged and committed to contribute to the achievement of Africa’s vision in 50 years.
In fact, the theme of this Conference is very apt in the sense that it captures the dual nature of the challenges facing Africa which is how infrastructure development can contribute to boosting the integration Agenda in Africa, with a particular emphasis, on ensuring that it is both people-centered and relevant to the needs and aspirations of African citizens.
Excellencies, Distinguished, Ladies and Gentlemen,
There is emerging consensus on the continent that we have a window of opportunity to set Africa on the path towards integration, prosperity and peace. This growing confidence is founded on the economic growth experienced over the last decade, improvements in our human development indicators and progress in governance, creating peace and stability. It is reinforced by our continental endowments (a youthful and growing population, the potential unleashed by women’s empowerment, urbanization) and our natural resources (land, minerals, energy and marine resources), which if harnessed in the interest of Africa’s people, bodes well for the future. It is also conscious of the fact that despite the progress recorded, we continue to face immense challenges: structural underdevelopment and dependency; huge backlogs in infrastructure, basic services and human resource development and the need to build people-centred, inclusive and development public and private cultures and institutions.
In fact, Infrastructure deficits remain a serious challenge with limited financing for regional projects. For example, Africa requires 68 billion USD over the eight year period for the implementation of current PIDA priority projects. This represents 0.2-0.4% of the continental GDP in 2011 and 1% of combined national budgets for the same year.
This is despite the turn-around we are beginning to see, with increased national government and private sector expenditure and planned expenditure on infrastructure. At the same time, we know the potential economic impact that national, regional and continental infrastructure projects will have – in transport and energy especially, but also in other economic and social infrastructure areas – on the continent’s economies.
To illustrate the magnitude of the challenges, let me bring to you attention the following statistics:
• The road access rate in Africa is only 34%, compared with 50% in other parts of the developing world and transport costs are 100% higher.
• Only 30% of Africa’s population has access to electricity, compared to 70-90% in other parts of the developing world.
• Water resources are underused with only 5% of agriculture under irrigation.
• The Internet penetration rate is a mere 6% (2012), compared to an average of 40% elsewhere in the developing world.
• Deficient infrastructure in today’s Africa has been found to sap growth by as much as 2% a year.
Consequently, intra-African trade also remains abysmally low at about 12 percent compared to rates of up to 60 percent in Europe, while the pace of movement towards FTAs remains slow. You will also agree with me that without good road networks, railway systems ports and telecommunications and power, it is very difficult to achieve both our regional and continental integration objectives.
At the same time, we know that being aware of opportunities and challenges is not enough. We have today continental frameworks, such as PIDA, policies and often strategies in virtually every area of importance to our development. We are also aware that we do not start on a clean slate, that we have fifty years of experience from which we must draw lessons.
However, I must also stress that we need not to be discouraged by this situation because Africa is a developing continent and integration is an on-going process. Nevertheless, we must lend momentum to the process by continuing to debate and come up with bold measures to accelerate integration, while also drawing from success stories outside the continent. I believe with a clear-cut vision and determination to succeed, we can foster the fundamental change that is key to moving us forward, in the journey to realize a fully integrated continent.
I believe that the theme of this Conference is a topical issue that both intriguing and exciting as it determines to a large extent, how far we can take the integration of our continent forward. We hope that each and every one of you here will have the opportunity to provide valuable comments on it, with a view to charting a way forward for the integration of our continent.
To capture the gist of the theme of the Conference, we are expected, among others, to honestly provide our opinions, on some of the innovative ways to make African citizens have full ownership of the integration process, as a way of ensuring that it both relevant and value-adding to their welfare and prosperity.
Excellencies, Distinguished, Ladies and Gentlemen,
Stakes are high, and key decisions must be taken if we are to move forward. The major concern is the fact that most of our commitments and agreed actions remain just on paper, and are often never implemented. As you will agree with me, achieving African integration is not an end itself. It must have a purpose for the citizens of Africa. It must offer them prosperity, security, freedom and endless opportunities form their nation-states single handedly. An important point to bear in mind is that the ultimate objective of both regional and continental integration is to enable African countries to benefit from economies of scale, reduce transaction costs and use trade as an engine of sustained economic growth and development. This requires greater trans-boundary cooperation and joint projects and alignment of our priorities.
We must continue to focus on how best to accelerate the integration of our continent as well as how we can achieve a more intensified economic transformation by making full use of natural endowments, common objectives and global opportunities.
Our vision for a transformed and integrated African economy with first class infrastructure, borderless economic space with no barriers to movement of goods, services and persons, is, I believe, a key foundation for a sustainable and job-creating economy for the betterment of the lives of our people.
I am aware that a number of RECs have made substantial progress in a number of key areas and this success is not uniform across all the five (5) regions of Africa, and a great deal of work remains to be done.
In this respect, allow me, to applaud our leaders, for the establishment of the COMESA-EAC-SADC FTA Tripartite in 2008, which I consider to be an important milestone in the integration process towards the creation of a single Free Trade Area embracing 26 countries. In line with the historical decision of establishment of a Continental free trade Area (CFTA) by the indicative date of 2017, a lot remains to be done collectively in order to make this objective achievable. A progress report will be presented to us on this issue.
Excellencies, Distinguished, Ladies and Gentlemen
As has been the standard practice, this meeting will examine the Status of Integration Report as well as the Follow-up Report on the Implementation of Recommendations from the 6th Conference of African Ministers in Charge of Integration.
You will recall that the Last Conference held in Mauritius in April 2013 requested the AUC to develop a harmonized framework to scientifically assess the implementation of the integration process, using integration indicators and Common Benchmarks of evaluation and assessment, based on the AU wide Development Plan. In this respect, I would like to inform you that the AUC and UNECA have started working on implementing this recommendation. In this respect a first draft of the ‘’African regional integration index’’ was presented during the Joint Conference of AU Ministers of Economy and Finance and the UNECA Conference of Ministers of finance, planning and Economic development held in March 2014, in Abuja, Nigeria. The document was enriched by the comments and inputs and will be presented during this conference for consideration and adoption. The index of African regional integration can become an indispensable reference for African Governments, enabling them to see how much progress they are making towards realizing the agreed vision of an integrated Africa, and in which areas of the integration agenda they might be lagging behind.
Excellencies, Distinguished, Ladies and Gentlemen
In conclusion, I would like to reiterate that the central pillar of Africa’s integration process should be anchored on her people. Ordinary citizens should enjoy the benefits associated with regional integration, and in this connection allowing for free movement of persons across the continent needs to be made possible. Connected to this, is the need to put in place favourable conditions that enhance the skills and capabilities of our labour force, especially, those of the youth and women.
It is also my considered opinion, that, for Africa to become an active player in the global economy, the process of integration must focus on our competitiveness, integrating markets through trade liberalization, harmonizing policies, infrastructure development and promoting public-private partnerships. For this to happen, expanding and interconnecting Africa’s infrastructure is critical. I want also to believe that regional integration is a political as much as an economic project. The lack of sustained political commitment to put in place agreed policies and plans has been one of Africa’s major shortcomings, and in the context of the African Union, this is an issue that needs to be addressed.
Our agenda is loaded, and so on this note, let me thank all of you for sparing some of your valuable time for attending this very important Conference.
Thank for your kind attention!