Category Archives: Economic Development

20 July 2014, 45th yearly Moon Day

From: pwbmspac

Greetings:

Happy Moon Day. It is once again time to take note of the annual memorial for Apollo 11 lunar landing. Now it has been all of 45 years since that Sunday. I, my brother, parents, and many million others around watched that “creaky old stile black & white movie” type of scratchy video as Neal Armstrong, then Buzz Aldrin descended ladder of their lunar lander on to the lunar surface, while Michael Collins tended the command & service Apollo modules in lunar orbit.

That is 45 years past, but still significant. (Interestingly, numerically, 1969 and 2014 share the same dates / days of week calender layout.)

In mid 1970-s about 7 years afterward, a Princeton Physicist, Gerard K. O’Neil brought to public attention an interesting vision – – Space Development. That is mining, industrial manufacturing, settlements of standard terrestrial human kind beginning to establish ourselves in that valuable real estate out across the solar system That view is still worthy of grasping so as to once again set course toward helping most people to thrive economically, and look forward with hope again, not just exist in great fear that they are just a short period from being rendered destitute, while the rulers have never had it better.

In the mean time, you may still hear a few interesting bits of news. One of the coastal Emirate neighbors of Saudi Arabia have committed to sending a space probe of their own to Mars. The CEO of the Tesla electric car company and of Space X has had a successfully cargo delivery flight by his Falcon launch vehicle and Dragon reusable space craft reach the international space station. Its price tag was lower than its prior competitors. The Mars Society solicited for volunteers willing to become Mars Settlers in a few years. Many people filed applications seeking to be selected. A researcher has been publishing tech papers asserting that his theoretical studies might in a few decades culminate in Star Trek style Warp Drives becoming possible. He is on staff at a NASA center, and is hoping that the small effort may endure for a bit.

These are a few small positive notes. But surely, many folks will agree that affordable, wide open to all, access to space, for regular folk to do there what they now routinely do hear for gaining livelihoods, is taking far too long.

Sincerely,
Power Beam Spacer
North America
Sol III A (Terra)

Unlocking Economic Growth and Development through Travel Facilitation

From: Yona Maro

The 21st-century traveller has high expectations when it comes to efficiency and a low tolerance for barriers to global mobility. Unfortunately, travel infrastructure and bureaucracy are decidedly 20th century, something that is particularly noticeable at airports and in the visa application process. Indeed, in 2013, destinations worldwide required on average two-thirds of the world’s population to obtain a visa prior to departure. A “smart travel” model, one that includes smart visas, smart borders, smart security processes and smart infrastructure, could revolutionize the travel and tourism sector the way the smartphone has transformed the telecommunications and media industries. As such, it represents one of the most effective near-term measures available to policy-makers seeking to create jobs and boost growth.

http://allafrica.com/download/resource/main/main/idatcs/00081851:b9eacbf4f78b362164c32be502dd9a8f.pdf


Yona Fares Maro
Institut d’études de sécurité – SA

Africa: SADC/ICGLR MINISTERIAL MEETING PRESS RELEASE

From: Abdalah Hamis

The second joint ministerial meeting of the Southern Africa Development Cooperation (SADC) and the International Conference on the Great Lakes Region (ICGLR) countries was concluded in Luanda July 2, 2014 with concrete steps to finding sustainable peace in the region.

The well attended meeting by all country members represented by foreign and defence ministers deliberated heavily on a single agenda of voluntarily disarmament of the Democratic Forces for the Liberation of Rwanda (FDLR).

Hon. Bernard Membe, Minister for Foreign Affairs and International Cooperation, led the Tanzania delegation whereby the Tanzania Defence Minister was represented by the Tanzanian Army Chief of Staff Lt. Gen. Samuel Ndomba.

FDLR a politico-military organization whose combatants are exclusively freedom fighters originally from Rwanda settled in DRC, wrote an appeal letter to SADC secretariat expressing their readiness to surrender and hand over their weaponry to African relevant authorities. The letter also requested assistance from the organ to oversee the process of Disarm, Demobilize, Repatriate, Resettle and Re-integrate (DDRRR) in accordance to the directives of other neighbouring countries including Tanzania.

Apart from accepting the said letter, SADC member states welcomed the FDLR willingly surrender and adherence to the DDRRR process. They however strongly suggested other stakeholders such as AU, UN and ICGLR to oversee the process while Rwanda and DRC were urged to take part in the process.

In a joint session, delegates discussed the provisional six-month time frame given to the FDLR to complete the DDRRR process as proposed by the technical experts meeting prior to ministerial meeting. Democratic Republic of Congo (DRC) supported by majority countries including Tanzania insisted that the allocated timeframe was right while Rwanda claimed the past experiences proved 3 months to be enough.

However the chair and the host of the said meeting, Angola, ruled out for the six months proposal but should be revised by the third month to gauge progress.

It is the expectation of all countries in attendance that the DDRRR process is implemented within the given time frame with full engagement of both DRC and Rwanda.

The ICGLR/SADC member countries also urged international community and neighbouring countries to join hands with DRC and Rwanda in this historical peace – making process.

The third meeting of this nature is expected to take place within the next three months.

Issued by:
Government Communication Unit;
Ministry of Foreign Affairs and International Cooperation

[image]
https://2.bp.blogspot.com/-wBDw9l8Mupo/U7VptQf5daI/AAAAAAAAVFA/RIgjZwm_Agg/s640/Luanda+1.jpg
Hon. Bernard K. Membe, Minister for Foreign Affairs and International Cooperation giving country’s position during the joint SADC/ICGLR Ministerial Meeting held in Luanda, Angola July 2, 2014.

Reminder & Programm of 5th International African Festival & African Business Forum Tübingen, Germany 17 – 20 July 2014

From: African Community in Germany

Dear Excellency, Hon, CEO´S, African Diaspora, Ladies & Gentlemen,

accept compliments of the season from Tübingen –Germany, Susan Tatah – AFRIKAKTIV organization, Boris Palmer Lord Major of city of Tübingen, Christain O Erbe- President of chamber of Industry and commerce, as well as the African Diaspora in Germany, welcome you to the 5th International African Festival and African Business Forum in Tübingen 2014.
The Gap between Africa´s economic growth and poverty index arouses an unbalanced equation, Africa´s untapped opportunities – culture, raw materials, human capital, tourism as well as the role of the African Diaspora in the development of Africa. All these and many other entertainment comprises the Tübingen International African Festivals 2014 Menu!

Programm starts from Thursday, 17th to Sunday 20th of July 2014.

This year we commemorate three special events in the month of July that makes history in our lives as Africans
– 20th years of democrary in South Africa

– Kwibuka „Rwanda we remember“

– We remember Mr. Nelson Mandela

– Stop Malaria – Africa´s unbeatable challenge

The 4days events shall focus on tradefair, tourism, business opportunities, music, gastronomy, Kids & children programs and more…

Thursday: 17th July – Welcome days
Friday: 18th July – Special Business Forum & African Ambassadors conference
Saturday: 19th July – Diaspora & Dialog – Culture and Projects
Sunday: 20th July – Church and more celebration

Join us in Tübingen this year for a family weekend, this year´s specially dedicated to the children and youths with lots of creative workshops, dance, theater and more! Take a family vacation to Tübingen, you´ll not regret being here.
A special Ramadan Tent is provided for breaking fast –of our Moslems brothers and sisters – see programm for more info!

For more information on the programm 2014
http://www.afrikafestival.net

Welcome to the city of Tübingen – For travel and accomodation, please click on this link
https://www.tuebingen.de/en

Contact the Organizers

Susan Tatah
Founder & CEO
Konzeption, Organisation und Durchführung
Tel.: (+49) 152 106 103 74

Afrikaktiv e.V.
Not black, not White but Multicolored

5. International Africafestival Tübingen: 17.-20. Juli 2014
For more information visit our Homepage & Facebook!
http://www.afrikafestival.net/
https://de-de.facebook.com/AfricactivFestival
mix

Energy Access and Security in Eastern Africa – Status and Enhancement Pathways

From: Yona Maro

A report by the United Nations Economic Commission for Africa (UNECA), which assesses the state of energy access and security in 14 States of the Eastern Africa Region by employing energy access and security assessment methodologies was launched on 10th June in Kigali, Rwanda.

The report entitled “Energy Access and Security in Eastern Africa – Status and Enhancement Pathways” investigates on issues of energy technology, energy resources governance, energy and the environment, energy trade and the impact of energy on the macro-economy. It also reviews, in depth, the issues of energy access and security based on regional analysis, and case studies of Ethiopia, Tanzania, South Sudan and Uganda. It suggests pertinent recommendations on enhancing the state of energy access and security in the sub-region.

The share of the population with access to electricity in Eastern Africa is among the lowest globally. The report cites for example, that in South Sudan, a mere 1 percent of the population has access; in Burundi 2 percent; in DR Congo 9 percent; and in Uganda 12 percent. The regional access level of 27% is also below the level for middle-income countries (a policy aspiration of member States) of 82%. “Structural transformation aspiration of member States will need to overcome the energy access bottleneck impairing the pace of industrial development,” the report says.

The report further notes that due to limited progress in transition from traditional biomass as a main source of energy, since 1990 there has been a forest stock decline of 20% in Ethiopia, Somalia and Tanzania, nearly 40% in Uganda and Burundi and between 4-8% in DR Congo, Eritrea, Kenya and Madagascar, leading to household energy challenges.

Reflecting on energy security in the petroleum sub-sector, the report highlights that the region nearly exclusively relies on imported refined petroleum, with declining regional refining capacity and increasing consumption levels (increased by 63% in the last decade). Oil import is now taking a large share of GDP in member States, diverting financial resources from development. The needs for a regional and country framework on energy security management are discussed.

Yohannes Hailu, the Economic Affairs Officer in Charge of Energy at UNECA. “Energy trade with neighboring countries and regionally is an untapped opportunity in Eastern Africa” “Countries in the region which have the capacity to generate more power, given their energy resource potential, should increasingly look at regional energy trade opportunities that would mutually benefit all the economies of the region.” he added.

Hailu further noted that regional opportunities for energy sector development would have to be supplemented by greater efforts at the country level to develop indigenous energy resources, along with a national strategy and framework for energy security management.

http://allafrica.com/download/resource/main/main/idatcs/00081815:4acc122bed60e46f11b73cd6bbff3b1a.pdf

Ethiopia Welcomes Egypt’s Shift in Position Over Nile Row

From: Abdalah Hamis

BY TESFA-ALEM TEKLE

Ethiopia on Thursday commended Egypt’s unprecedented and an official decision to peacefully resolve a long-standing dispute with Addis Ababa over a controversial power plant project known as Grand Ethiopian Renaissance Dam (GERD).

“Ethiopia strongly welcomes Egypt’s interest to re-launch talk over the GERD and solve the problem through dialogue,” spokesperson for Ethiopia Ministry of Foreign Affairs, Ambassador Dina Mufti told journalists.

“Egypt has no other option except dialogue and win-win negotiation to find a solution that is acceptable by both sides,” he added.

Egypt’s newly elected president, Abdel Fattah al-Sisi, has recently pledged to resolve the water dispute with Ethiopia through dialogue.

Ethiopian officials said that al-Sisi is expected to pay an official visit to Ethiopia soon probably making it his first trip to a foreign nation since he assumed office in June 8.

Ethiopian Foreign Minister, Tedros Adhanom, who attended the new president’s inaugural ceremony in Cairo, has held meeting with al-Sisi and other high ranking officials over the multi-billion dollar power plant project.

During their discussion Adhanom has reaffirmed Ethiopia’s commitment for cooperation with Egypt based on mutual trust and confidence.

Al-Sisi and Adhanom have also agreed to reactivate the tripartite technical dialogue between Sudan, Egypt and Ethiopia and harmonize existing differences by high-level political consultations.

Addis Ababa insists the $ 4.6 billion dam project won’t adversely affect Egypt and Sudan instead the downstream countries will be benefited from the cheap and renewable hydro power processed electricity it generates.

Egypt considers the massive dam project, as a threat to its water security arguing it will eventually diminish its water share.

SUDAN REAFFIRMS SUPPORT

Mean while, Sudanese vice-president, Bakri Hassan Saleh, has reaffirmed his country’s commitment to the dam project which Ethiopia is building in Nile river near the Sudanese border.

Saleh who was in Addis Ababa earlier this week to attend a regional summit of the Inter-Governmental Authority on Development (IGAD) made the remarks while holding talks Ethiopian Prime Minister Hailemariam Desalegn.

“Sudan will derive multiple benefits from the Grand Ethiopian Renaissance Dam project,” Saleh said according to the state-run Ethiopian Radio and Television Agency (ERTA).

SOUTH SUDAN CRISES

Saleh and Desalegn have also consulted on the 6 month old conflict in South Sudan.

While commending Ethiopia’s role to peacefully end the conflict in neighbouring South Sudan, Saleh called on Addis Ababa to continue exerting maximum efforts to bring lasting solution.

Desalegn, for his part, assured his country would remain committed to end the political crises in the youngest nation.

“Ethiopia will continue to put pressure on the South Sudanese rivals through all channels available,” said the Ethiopian premier.

Leaders of the two SPLM rival factions, President Salva Kiir and his political rival Riek Machar, on Tuesday agreed to end fighting and form a unity government within two months.

At a news conference he gave Friday, spokesperson for Ethiopia foreign ministry, Dina Mufti said IGAD member countries have been frustrated by the failure of previous deals.

He however went on to saying that the regional bloc mediating the two warring factions won’t hesitate to take action if the two sides once again violate the latest agreements.

He added peacekeeping force drawn from Ethiopia, Uganda and Kenya will be deployed to end the conflict which has killed thousands since erupted in mid December last year.

Africa: U.S. Foreign Policy in Somalia

From: U.S. Department of State
Remarks
Wendy R. Sherman
Under Secretary for Political Affairs
United States Institute of Peace
Washington, DC
June 3, 2014

UNDER SECRETARY SHERMAN: Well, it’s really wonderful to be here, and I must say it’s great to see Kristin Lord who’s acting as president – she acts at it quite well. But it’s also a real pleasure for me to be here with three of my Africa mentors – Ambassador George Moose, Ambassador Princeton Lyman, and Ambassador Johnnie Carson, and my current mentor, Assistant Secretary Linda Thomas-Greenfield. I am really privileged to have worked with all of these extraordinary public servants, and very much look forward to their reflections on what we are discussing today, because they are extraordinarily knowledgeable and among the most deft and skilled diplomats I have ever known in my life. So thank you all. I’m honored by your presence here today.

I also – my colleagues were teasing with me about whether the liability insurance was paid up here at USIP. It seems that it’s not just – when I went to Somalia, everything went fine. It was a difficult trip, but extraordinarily wonderful. But it seems I don’t have much success elsewhere. When I was up on Capitol Hill, as you may have read by a David Sanger piece, I managed to rupture my pinkie finger, which will never be the same again, going to give a secure briefing to members of Congress. And then when I was recently in Vienna on Iran negotiations, I sprained my ankle, which is why I am in flat shoes. And so I’m hopeful today will be all about the promise of Somalia and nothing will be fractured or broken in the process. (Laughter.)

My purpose today is to discuss American policy towards Somalia. Within the context of the Administration’s partnership with Africa and U.S. leadership more generally, something the President’s been speaking about of late, some of you may be asking: Why Somalia? Why a speech on Somalia? My answer is that 20 years ago – and I was at the State Department at the time – the United States essentially withdrew from this country. And now we are back working in close collaboration with the international community and bearing fervent hopes, tempered of course by ongoing concerns.

Our approach Somalia is distinctive for the simple reason that Africa today defies generalization. While parts of the continent remain mired in poverty and held back by conflict, seven of the world’s ten fastest growing economies are in Africa. Domestic markets are expanding rapidly in such urban hubs as Cape Town, Addis Ababa, and Lagos. Across the region examples abound of civil society thriving, health care improving, access to education growing, and life expectancy rising.

Under the President’s leadership, U.S. policy in Africa corresponds to this diversity. The African Growth and Opportunity Act promotes free markets, attracts investment, encourages trade, and facilities integration into the global economy. The Feed the Future program harnesses the power of the private sector to help small landholders and farmers learn business skills. The African Women’s Entrepreneurship program is accelerating the growth of women-owned businesses, and the President’s Young African Leaders initiative, one that I was able to join a couple of years ago. My staff said, “You need to go do this early in the morning.” I said, “Really?” I said, “Leave the building? Not go to the morning meetings? Go do this?” I want to tell you, as soon as I was in the room, I never wanted to leave again. The energy, the vibrancy, the vitality, the promise, the possibility was simply extraordinary. This Young African Leaders initiative is helping some of the continent’s most promising young people to fulfill their potential. These measures and much, much more will be on the agenda when in early-August President Obama welcomes nearly 50 African leaders to Washington for a historic summit.

Also under discussion at that time will be the efforts of African nations themselves with support from the United States and other partners how they are responding to an array of security challenges. With African states in the lead, America is backing initiatives to return safely more than 200 girls kidnapped in Nigeria, eradicate the loathsome Lord’s Resistance Army and disarm militias, end fighting, and support peace operations in strife-torn lands across the continent.

Last week in his commencement address at West Point, President Obama said he will ask Congress to create a new, $5 billion counterterrorism partnerships fund that will help build the capacity of our international partners to respond effectively to the terrorist threat. In his remarks, the President emphasized that the nature of this threat has evolved, and our strategy must keep pace with it.

The core of al-Qaida, the force responsible for 9/11, has been weakened. Danger remains, however, because of the emergence of groups with links to al-Qaida that have embraced the same destructive agenda. One such group is al-Shabaab, the Somali-based organization that continues to carry out attacks on innocent civilians both within and beyond Somalia’s borders.

In Somalia, as elsewhere, defeating a terrorist force requires a multi-faceted approach that makes clear not only what we are against, but also what we are for. And that is the subject I want to highlight today.

As members of this audience know, Somalia is both blessed and cursed by geography. Much of its territory is arid and inhospitable for farming and grazing. But the country’s strategic location and natural harbors have long made it a focus of international interest. In the modern era, it drew the attention first of colonial powers and then, after gaining independence, became embroiled in the Cold War chess game between East and West.

In the early 1990s, disaster arrived. Internal conflicts led to the closing of the U.S. and many other foreign embassies, a devastating shortage of food, the deployment of a UN peacekeeping force, the harrowing Battle of Mogadishu, and the dissolution of organized government. Almost overnight, the very word “Somalia” became a synonym for chaos.

During this period, hundreds of thousands of people were forced to flee, factories were torn apart and sold as scrap, patriotic monuments were torn down, schools were closed, and gangs of armed thugs roamed the streets.

Calling home, famed Somali writer Nuruddin Farah was warned by his brother not to return. “Forget Somalia,” he was told, “consider it buried, dead.” Wrote Farah: “How full of tragedy is the instant when it dawns on one that one’s country does not exist anymore, either as an idea or as a physical reality.”

Not long ago, at the Dadaab refugee camp in northern Kenya, I met a young twenty year old man. He told me he had spent his entire life in the camp – his entire life. He was born there and he was still there. Think about how narrow an experience that is, especially in this, the so-called age of globalization.

The depth of Somalia’s trauma should bring home to us the distance and the difficulty of the long road back, the precious nature of the opportunity now before us, the magnitude of what has already been achieved, and the staggering amount of hard work still ahead. To be clear, tomorrow, disaster could arrive again. But today, there are tangible reasons for hope.

In a campaign that started in 2011, African Union and government forces liberated the capital and a number of major cities and towns, some of which had been under al-Shabaab’s control for as long as seven years. In 2012, a new provisional constitution was adopted and a parliament sworn in. In September of that year, the legislators chose professor and civic activist Hassan Sheikh Mohamud as President. Meanwhile, a determined effort by governments and the shipping industry put many of Somalia’s pirates out of business. In Mogadishu, real estate prices are on the rise, seaport activity is increasing, once-shuttered businesses are re-opening, and new solar-powered lights have lifted spirits and lightened streets. Returning from overseas, former Somali expatriates are now serving as cabinet ministers and re-establishing themselves as entrepreneurs.

To borrow Achebe’s phrase, in Somalia twenty years ago, all things had fallen apart. But today, the outlook is improving because Somalis themselves have taken on the responsibility for reclaiming what was lost and rebuilding what was destroyed. They are the ones who have assumed the lead.

In response to this welcome trend, the United States in January 2013 recognized Somalia’s Government for the first time in 22 years. And in September international donors pledged over $2 billion in reconstruction aid to implement – excuse me – to implement the Somalia New Deal Compact, which in President Hassan Sheikh’s words, “will lay a strong foundation for building reliable, transparent, and accountable state institutions.”

At the same time, African countries have stepped up by supporting Somali security through AMISOM, the African Union Mission in Somalia. This is the type of robust regional action we have seen more and more – in South Sudan and the Great Lakes, where diplomatic initiatives are African-led; in Nigeria, where the depredations of Boko Haram recently prompted five African leaders to link arms in Paris in a resolute show of solidarity; and in the Central African Republic and other countries where AU – African Union peacekeepers have been deployed.

In Somalia, the national authorities have begun to take charge with help and support of their neighbors. The role of the world community, including the United States, is to encourage and nurture this process, and that is exactly what we are doing. As I speak, American officials are working closely with Somali leaders, civil society representatives, and a variety of international partners to help the nation come together and move ahead.

The reasons for our involvement are straightforward. First, we have an interest in helping all of Africa sustain its economic momentum and lengthen the roster of countries that contribute to stability, prosperity, and peace. Second, a secure and united Somalia would weaken the forces of extremism and terror that feed off one another and that threaten citizens in almost every country, including the United States. Third, an increasingly stable Somalia would enable two million refugees and internally displaced persons to begin returning to their homes, thus fueling growth domestically and easing political pressures in neighboring lands. Fourth, all maritime nations will benefit if the recent decline in piracy becomes permanent. Fifth, a stable and economically viable Somalia would reduce the intense strain put on Africa’s peacekeeping resources, thus making it easier over time for the region to respond to crises elsewhere.

And finally, there is a more personal element. Some 130,000 Americans are of Somali heritage, and of these many are deeply committed to the recovery and prosperity of their homeland. They show this commitment by advocating for Somalia and by sending money back to their loved ones. Today, an estimated one-third of the country’s total income is derived from remittances – one-third of the total income of the country. This reminds us how bleak the economic picture in Somalia remains. An estimated three million citizens lack secure supplies of food and 860,000 are in need of emergency help. One baby in ten dies at birth and, of the survivors, one in seven is severely malnourished. Of the adults, fewer than half are literate.

For too long, the people of Somalia have suffered from clan-based violence and civil strife. For too long, they have been scattered and unable to establish roots. Now is the best time, the best chance in a quarter century for them to realize the promise that accompanied their nation’s independence. In that quest, the United States is right where it should be: on Somalia’s side. And as we support the country’s progress, our strategy is centered on three key elements: security, governance, and development.

In our view, these topics are not separate, but reinforcing. Development is harder in a climate of fear and so is effective governance. Terrorism both generates anarchy and thrives within it. There is no direct correlation between poverty and extremism, but people engaged in building strong communities are usually too busy to hate. And in Somalia, hate is another name for al-Shabaab.

Al-Shabaab originated less than a decade ago as a militant youth group opposed to any effort to move Somalia toward stability and democracy. Its obstruction of humanitarian aid deliveries deepened the horror of a famine that, between 2010 and 2012, claimed more than a quarter million lives. As Somalis have rejected al-Shabaab’s radical ideas, the group has sought notoriety beyond the country’s borders – orchestrating a bombing that killed 74 soccer fans in Kampala and the murder of 67 men and women at a shopping mall, Westgate, in Nairobi.

The job of degrading and defeating al-Shabaab belongs jointly to the Somali National Army and AMISOM, with support from the United States and other international partners. Over the past three years, these forces made impressive gains in driving al-Shabaab from its strongholds in Mogadishu and numerous towns in south and central Somalia. These victories caused a shift in momentum that must now be sustained.

But as daily headlines attest, al-Shabaab is still a potent threat. It continues to target government officials and humanitarian staff and to hinder the provision of basic services. Last month it carried out bombings in Mogadishu and Baidoa, and just a week ago Saturday launched a multipronged attack on the nation’s parliament, a strike that failed due to the efforts of AMISOM and Somali forces.

Our strategy for helping Somalia defend itself begins with our firm support for AMISOM’s stabilizing role. Last year we endorsed wholeheartedly a UN Security Council decision to enlarge the mission by more than 4,000 troops, thus enabling it and the Somali Army to resume offensive operations. Overall, since 2007 we have contributed more than half a billion dollars in training, equipment, and logistical support. The many African countries that participated in the mission deserve enormous credit. It is a long and wonderful list, and Somali leaders are deeply appreciative of the sacrifices they have made. The UN also plays a central role in backing AMISOM, but every stakeholder agrees that the mission cannot continue indefinitely. Our shared goal is to help Somalia develop more capable security forces of its own.

To that end, the United States is assisting the Somali National Army. In recent years, the State Department has obligated more than $170 million to help recruit and train forces that will be able to protect the country’s institutions and citizens, operate under civilian control, fairly represent Somalia’s population, and respect human rights and international law. In this connection, I note that the army recently approved a code of conduct that prohibits employing soldiers under the age of 18. I note as well that some 1,500 women are now members of that force.

As one element of our support, a small contingent of U.S. military personnel – including some special operations forces – have been present in parts of Somalia for several years. In the past, their activities focused primarily on information sharing and advising AMISOM in its efforts to counter the threat from al-Qaida and al-Shabaab. Today these personnel continue that mission but have also begun to work with the Somali National Army. In addition, last fall the Department of Defense established a small team in Mogadishu to coordinate with related efforts by the international community to help AMISOM and Somali forces.

The aid we provide includes training support for the Somali advanced infantry company, also known as “Danab” – the Lightning Force. This is a 150-person unit that we believe can become a source of future leadership for the entire army. I know from my own conversations with Somali leaders that it makes a difference to the army’s morale that the United States cares enough to assist them, and I know for a fact that there is no better source of instruction for any armed force than the U.S. military.

Additionally, as President Obama noted in his speech, our partnerships do not altogether eliminate the need for direct action to protect American lives. From time to time the U.S. military has conducted such action in Somalia against a limited number of targets, who, based on information about their current and historical activities, have been determined to be part of al-Qaida. And in the future, we may take action against threats that pose a continuing imminent threat to U.S. persons. These strikes will be conducted under the highest operational standards, including the requirement of near certainty that civilians will not be injured or killed by our actions. The goal of our military assistance to Somalia is to enhance the country’s security, and by so doing contribute to its political and economic development. The campaign against al-Shabaab is an essential part of Somalia’s struggle to recover. Equally critical, however, is progress in establishing governing institutions that are capable and credible. The good news is that Somalis have a clear idea of what they would like to achieve. This is laid out in their Vision 2016 document and in the New Deal Compact developed jointly with the international community.

Somalia now has an interim parliament, a president, and a prime minister, and a roadmap calling for a permanent constitution and national elections. Despite this, it is true that its federal governing institutions remain in their infancy. This is all quite new. Virtually every component of public administration must be rebuilt. That is why the United States is furnishing assistance to the Somali parliament and to key ministries for the purpose of professionalizing operations and training personnel, why AMISOM recently conducted an executive leadership and management course for 80 senior civil servants, and why the UN has established a strong political presence in Somalia.

Since the United States recognized the new government, we have given more than $315 million in bilateral aid. Our contributions are designed to strengthen both the public and private sectors, create jobs, increase access to modern technology, and improve the climate for key industries such as agriculture, livestock, and energy. USAID is working to increase opportunities for women and it has rehabilitated markets in 16 towns, turning unsanitary eyesores into clean, comfortable, and orderly commercial stalls. We are also collaborating with our partners to prevent the resurgence of polio and to reinvigorate the justice sector, including the Somali national police and courts.

In addition, our assistance is helping to equip 160,000 young Somalis with education and skills they will need to participate in the workforce. This is vital because, like many African countries, Somalia is remarkably young. The median age is less than half that of the United States. We are at 35 years of age; Somalia’s median is 17. Because the median age is less than half that of the United States, this creates an imperative for the nation’s leaders that can be understood by any parent – how to channel youthful energy in a positive direction.

Make no mistake, the list of challenges Somalia must address is long. As in any place where government institutions are underdeveloped, crime and corruption are severe problems. Political infighting and clan disputes have caused the country to lag behind its own timetable for reform. There’s also a pressing requirement for transparency and financial management so the government can earn trust both domestically and globally. The recent appointment of a financial governance committee and also of central bank officials are significant and important first steps.

Another priority is to ensure that when al-Shabaab is pushed out of an area, it is replaced by a governing presence that can protect citizens and instill optimism. This task is complicated by the fact that when local populations return to such areas, they often find that terrorists have stripped them of infrastructure, food, and supplies. The United States is supporting quick impact projects in these areas. But although external assistance is essential, so is inclusive government and local participation in setting priorities. If the Somali nation is to come together, the newly liberated towns must be part of it, not islands unto themselves.

Yet a further challenge to Somalia’s development is posed by its regional fragmentation. Although the country’s population is less ethnically diverse than many in Africa, its people still possess strong local affinities and clan loyalties. Somaliland in the north, for example, sought to distance itself from the tumult elsewhere by establishing its own governing structures. Neighboring Puntland also has a high degree of autonomy. Moving forward, leaders must preserve the strengths of these regional administrations while also reconciling them with Somalia’s national identity.

The appropriate means for accomplishing this include dialogue, the ballot box, and the judicial process. The United States believes that a stable federal Somalia with a credible national government in Mogadishu is in the best interest of all Somalis, but to achieve this, there must be a willingness to compromise on every side. It is critical that issues of authority and jurisdiction be settled because investors will be reluctant to make commitments if there is confusion about who is in charge. One possible model is the method by which an agreement was reached last year between the national government and the interim administration in Jubaland. This pact delineates federal and state authorities and provides a framework for managing resources and controlling revenue.

The United States will remain actively engaged with both national and regional leaders to strengthen institutions and promote cooperation on every level. Looking ahead, the pivotal test for Somalia will not be procuring more assistance from the world community or even defeating al-Shabaab. The truly defining test will be an internal one. Somalis have to decide whether they want to exist as disparate clans isolated from the world and in conflict with one another, or as a united country with all the attributes, benefits, and responsibilities that such unity brings. None of us can make that choice for Somalia.

But Somalis should know if they choose to continue to come together, they will have enthusiastic and substantial international support. Currently, America’s diplomatic team in Somalia is led by U.S. Special Representative Jim – James McAnulty. I said Jim because that’s what I think of him as – an ambassador equivalent based in Nairobi, who along with other U.S. personnel travels back and forth frequently to Somalia. The United States has not had a formal ambassador to Mogadishu since we closed our mission on January 5th, 1991. I can tell you today that this will be changing. As a reflection both of our deepening relationship with the country and of our faith that better times are ahead, the President will propose the first U.S. ambassador to Somalia in more than two decades. We indeed look forward to the day when both nations have full-fledged diplomatic missions in the capital of the other.

I said earlier that U.S. policy towards Somalia was based not solely on what we are against, but more importantly, what we are for. So in closing, let me just say that America is for a Somalia where children are born healthy and immunized against deadly disease; a Somalia where families are able to eat more than a single meal each day and where the water they drink won’t harm them; a Somalia where every boy and girl has access to an education; a Somalia where women and men are able to walk without fear; and where citizens have faith in their government because freedom has meaning and the rights of all are respected.

In his memoir, Nuruddin Farah wrote of the high value Somalis put on having a home, a place that, in his words, “affords a greater sense of privacy, of self-honor, and dignity.” Friends and colleagues, the path ahead remains rocky and uphill, but let us all have faith that the day will arrive when the people of Somalia are able to fully reclaim their home and to know once again the honor and dignity that comes with that sense of ownership.

Thank you very much. (Applause.)

AMBASSADOR CARSON: Ambassador Sherman, let me be the first to congratulate you on a excellent speech on Somalia, and also for what appears to be the announcement of a new U.S. ambassador to that country for the first time in two decades.

I’ll start by asking one or two questions but quickly move to the audience. In the last several days, the UN Food and Agricultural Organization has issued a report that states that Somalia is once again on the threshold of a major famine. My question is: How serious do you think this is likely to be? What is the U.S. doing right now to avert it? And would such a famine, if it gets out of control, undermine some of the confidence in the current government and undermine some of the stability in Somalia that has been achieved?

UNDER SECRETARY SHERMAN: A very simple question from Ambassador Carson. (Laughter.)

Of course we are concerned, and we have been concerned forever about famine in Somalia because, as I said, there is a great deal of Somalia that is arid – that food cannot be grown, and food security is enormously important. And in places, as I mentioned in the speech, where al-Shabaab has been, often whatever food was available has been stolen, taken, consumed, gone. The United States gives a fair amount of aid to Somalia, is looking at ways that we can further address the food security issues. Feed the Future program is very active in Somalia both in terms of funds and helping to build capacity, which is critical, because we all know that the real solution is a growing economy where you can’t grow food; you can import food. And as I said, agriculture is one of the areas in which we are putting a lot of our efforts to grow that sector and to grow that capacity.

There is no doubt that a true famine will further increase the insecurity of Somalia, and so the United States, which is the single largest contributor to the World Food Program, hopes that all of those appeals are met by the international community, and we are doing whatever we can to ensure that the international community responds and responds to FAO’s recent report, and that we help in whatever way we can to meet this demand. It is quite crucial.

And it is indeed, I think – if I make no other point in the remarks today, it is that all of these elements are integrated. I think that is what the President was trying to convey in his speech at West Point, which is when you have situations of a country like Somalia which is plagued by so much that is difficult and has been really nonexistent for two decades, one has to work in every sector in every way to deal with governance, to deal with terrorism, to deal with security, to deal with political development. And it is a long and complicated and difficult process, but what I found most extraordinary in my visit to Somalia was it has gotten underway, it is happening – with great difficulty, two steps forward and maybe three steps backwards from time to time, but it is proceeding forward, and it is no easy task.

AMBASSADOR CARSON: Ambassador Sherman, before we go to the audience, I’d like to raise a regional question and ask: What has been the impact of the Kenyan decision to crack down on illegal Somalis in that country, the impact in Kenya and the impact in Somalia?

UNDER SECRETARY SHERMAN: First I want to say that Kenya has welcomed hundreds of thousands of refugees from Somalia. I’ve been to Dadaab; I’m sure many of the people in this audience have been. I know you have, Ambassador Carson. And none of us would want to be that 20-year-old who has only known a refugee camp. But I think we all have to be grateful for what Kenya has done to welcome refugees into Kenya and to provide – try to provide a home until there can be a full repatriation to Somalia on a voluntary basis.

We of course would urge Kenya to continue its long history of treating refugees with dignity, within the rule of law, and to ensure their security. And the Kenyan police are a very, in many ways, sophisticated force. We rely on them in our Embassy in Nairobi for security and they are always there to help. And we would urge that the Kenyans look at any incident that has come to fore – we’ve seen all of these reports – take it seriously as they have done in the past, and try to ensure that refugees are given the most dignity possible. No one wants to be a refugee. No one chooses to be one.

AMBASSADOR CARSON: Thank you. We’re going to move to the audience, and we do have a very tight window. Questions should be short and specific, not long commentary. One question here, sir. You’ve had your hand up. Identify yourself, please.

QUESTION: Mark Tavlarides with the Podesta Group. The President’s launched a go-to-school initiative to put a million kids in school. Just wondering if you could just tell us a little bit about the importance the U.S. attaches to that initiative and what we’re doing to help them in that area.

UNDER SECRETARY SHERMAN: I think education is absolutely critical. We think access to education is critical; we have supported educational support as part of our programming through USAID, and I think that we all know everywhere in the world education is critical for the development of a country. I think what horrified everyone about what happened to the schoolgirls in Nigeria – and I think most of you in this audience know that Boko Haram has been killing and kidnapping people for some time and the world had not quite caught on to what was happening, and painfully and horrifically it took over 200 schoolgirls being kidnapped for the world to understand the risks and what was occurring in northern Nigeria. And I think what horrified all of us who have children is to imagine that the simple act of going to school – the simple act of going to school, of a girl getting an education – would mean that she should be kidnapped and in essence put into slavery is horrifying. And so education is critical for every country across the continent, and obviously in Somalia very much so.

MODERATOR: Sir.

QUESTION: Morning. My name is Mohamed Ali, Somali American Peace Council. It was a beautiful speech. We appreciate what you did and what my new country is doing for Somalia.

My question is: Why don’t we empower Somali Americans like our organization and others all over the country, because we have good projects and we are willing to go back and help the country? For instance, we have a project called Sports for Peace, and the idea is to counterbalance the terrorists. As an ex-basketball coach myself when I was a teenager back home, I’m planning to go back this summer and trying to help. We get the approval by the IRS, the tax exempt, but the USAID rules working the – like our project, but the red tape of the government is still there. So if there’s way you can empower us, maybe even waive those red tapes so we can go and help Somalia? Thank you.

UNDER SECRETARY SHERMAN: Well, I think it’s terrific that you have an organization that is working in Somalia and working with Somalis; that as an expatriate, folks have come together to see what they can do. I know that every nongovernmental organization thinks there’s too much U.S. red tape. I think that’s a given. But we have that red tape for transparency, for good governance; for ensuring how things are happening, make sure it fits into an integral program, supports the objectives of the Somali Government. So I apologize for the red tape, but it is there for a reason, and I’m sure that we’re doing whatever we can.

But I want to say that it takes all of us in whatever role we’re in – the private sector – that means companies, investors – non-governmental organizations that do their own philanthropy, as well as governments like the United States to support the primary leader, which is the Somalis themselves.

QUESTION: Thank you, Under Secretary Sherman, for a very substantive presentation. My question goes to the issue of timing. I’m Bernadette Paolo from the Africa Society. We’ve seen recently that African governments – their response to terrorism has either been ineffective or ill-timed, and waiting for the African Union and the United Nations often – that delay causes additional problems. So with the African heads of state summit coming, do you think it’s possible for preventative mechanisms to be put in place, or a security response – an early response so that we don’t have this lag time, and better cooperation and coordination among the international community and African countries? Thank you.

UNDER SECRETARY SHERMAN: Well first of all, let me say I think things have come a very long way from where they once were. There is capacity in Africa that has never existed before, and I tried to give some examples where you have African-led regional organizations that have stepped up – whether that was in Mali; whether that is in CAR; whether that is in Sudan, South Sudan; in Somalia – really throughout five heads of state. I was in Paris for the Nigerian summit – five heads of states joining arms for border security and for trying to take on a task collectively and bring each of their strengths to the table.

So I think there’s been enormous progress. And what our job should be is to nurture the development of those regional organizations to develop the capacity of Africa themselves. There have been a lot of creative ideas about that, about how to build an African force that would be permanent on the continent and able to respond quickly to crises. And I think all of these ideas I’m sure will be in discussion at sessions at the Africa summit. But I think the most important thing we can do is build the capacity of Africans themselves, because they are right there and then can do the job, as opposed to wait for a Security Council resolution getting troops to come. All of that takes time and there’s no way to cut that time short, because people do it on a voluntary basis – troop-contributing countries.

QUESTION: Thank you so much, Ambassador Sherman. My name is Cindy Waite) and I’m a Charles B. Rangel fellow, and will be entering the Foreign Service in the summer of 2016.

UNDER SECRETARY SHERMAN: Congratulations.

QUESTION: Thank you so much. Thank you again for your remarks. And I’m really interested – you made a huge announcement that the President will propose the first ambassador in over 20 years to Somalia. I’m interested —

UNDER SECRETARY SHERMAN: You interested? (Laughter.)

QUESTION: I’m sorry. I’m interested if you could just say a few remarks to those of us who will be entering the diplomatic corps and are so excited to serve worldwide, what it might look like in a few years – I know you can’t tell the future, but what that region – what it might look like to serve there, how many people are currently serving there, what a small embassy would look like in the beginning stages, et cetera. Thank you so much.

UNDER SECRETARY SHERMAN: Probably either Ambassador Carson or Assistant Secretary Greenfield can tell you how many people are serving there. I don’t know. Do either of you know off the top of your head how many people serve in Africa?

ASSISTANT SECRETARY THOMAS-GREENFIELD: (Off-mike.)

UNDER SECRETARY SHERMAN: Yeah. And Somalia?

ASSISTANT SECRETARY THOMAS-GREENFIELD: Nigeria?

UNDER SECRETARY SHERMAN: Well, Somalia we don’t have a permanent presence.

ASSISTANT SECRETARY THOMAS-GREENFIELD: (Off-mike.)

UNDER SECRETARY SHERMAN: Gosh, we have thousands of people serving in Africa.

ASSISTANT SECRETARY THOMAS-GREENFIELD: (Off-mike.)

UNDER SECRETARY SHERMAN: So – did you hear? Thirty-seven – because I don’t know – Linda doesn’t have a microphone on. Thirty-seven hundred serving overseas. And Assistant Secretary Greenfield was also the director general of the State Department, so she knows about personnel. And about a dozen in Nairobi who serve our efforts in Somalia, as well as people who come in and out on what we call TDY, which you will come to understand means when people from Washington and elsewhere come to serve a particular mission for a period of time.

I think serving in Africa is a tremendously exciting proposition. As I said, seven of the 10 largest and fastest growing economies – fastest growing, not largest – but fastest growing economies are in Africa. The youth population in Africa is both a challenge, but it also is energy that beats the band. I think we had something like – I forget – 500 slots and 50,000 people, young people apply by email to have one of those Young African Leader Initiative slots. So it is filled with energy and excitement and possibility, also is filled with conflict and danger and difficulty and painstaking and sometimes way-too-slow progress. But that is life as we all know it. So congratulations, you’ve got a great future ahead of you.

AMBASSADOR CARSON: The gentleman in the back on the left.

QUESTION: My name is Stephen Druhot. I’m a business person. I do business both in Somaliland and in Somalia. And you mentioned, Ambassador Carson, the impending possibility of a famine in that area again. Currently, the United States does have a pre-positioning warehouse in Djibouti and they have funding in the farm bill. And if this is going to happen, which is being predicted to happen, you could easily begin to move the cargo out of Djibouti towards Mogadishu at the same time you move the cargo from the United States into Djibouti because neither will be able to quell the impending disaster. It’s a solution, not a question. (Laughter.)

UNDER SECRETARY SHERMAN: Well, thank you very much for your expertise, and thank you for the work that you do. As I said, the private sector is a critical partner, so thank you for what you do in Somaliland and Somalia as a whole. Thank you.

QUESTION: Hi, I’m Dana Hughes from ABC News. I have two questions. One, if you could give any kind of a timeline for when the President plans to name this ambassador, and will that ambassador be part of the team in Nairobi?

The second question I have is: When Shabaab fell in Kismayo and Mogadishu, intelligence analysts had a real fear that they would simply spread out. With the attacks in Westgate and the continued attacks in Kenya, the attacks in Djibouti, has that fear been realized? And how does that influence U.S. security policy not just in Somalia but in the region as a whole? Thank you.

UNDER SECRETARY SHERMAN: So for your – in answer to your first question, when will the U.S. ambassador be named, I will give you government speak: Soon. (Laughter.) And that ambassador will begin working out of Nairobi. We have an office in Mogadishu in the airport compound, and I would hope that in the years ahead, as I said, that we will see a full presence both in Somalia and by the Somalis here in Washington. It’ll take some time, but we take this in a step-by-step approach.

Secondly, in terms of al-Shabaab, yes, many analysts were concerned that as they were pushed out of not only Kismayo and Mogadishu but in villages, they would bleed into the community and then just wait for the next opportunity or go someplace else, which they clearly have done. It’s why this has to be a regional approach. Terror is not about a location. It is about really a regional response that is not just country specific, because it has to do with the security of borders, it has to do with economic development, it has to with growth, it has to do with basic security and government services. There’s a whole cavalcade of integrated efforts that have to go forward to put terror on its back foot for the long term and allow the good forces of people being able to live their daily lives to come forward.

There has been a step taken in the right direction – more than one step – by Somalis themselves. But as I’ve said, this is still an uphill struggle, and I cannot tell you that tomorrow, the day after I’ve given this speech, some awful event will not happen, because al-Shabaab is clearly still present not only in Somalia but in the neighboring countries. So this is an effort that we are taking on collectively in support not only of the Somalis but of the Kenyans, the Djiboutians, and everyone else in the region and in the continent.

AMBASSADOR CARSON: Ambassador Sherman, we have a hard stop at —

UNDER SECRETARY SHERMAN: Yes, we do.

AMBASSADOR CERSON: — 12 o’clock and we have reached that moment. I, on behalf of the acting president of USIP, on behalf of the institution itself , want to thank you enormously for coming here this morning to talk about Somalia and Africa. It has been a pleasure to listen to you and to hear the progress that has been made in our policy in that country. And it’s a pleasure to see you again as well.

UNDER SECRETARY SHERMAN: Thank you all very much, and do whatever you can – every single one of you in this audience – to support the Somalis in the journey they are taking themselves and the progress they have made and all of the progress that must be yet to come. I thank you all for however you can contribute to that. Your government can do only so much. It really will take everyone in support of the Somali Government for them to do what they are trying to do for themselves. Thank you very much.

AMBASSADOR CARSON: Thank you. (Applause.)

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Tanzania, Burundi to launch One-Stop Border Post soon

From: Abdalah Hamis

Tanzania and Burundi have moved steps closer towards being the first countries in the East African Community (EAC) to operationalize the One Stop Border Post (OSBP) concept at Kabanga/Kobero .

The pilot operation is scheduled to commence in June of this year following completion of temporary structures on site and the installation of ICT systems at the border between the two countries, an achievement realised thanks to financial support from Trade Mark East Africa (TMEA).

Other than the financial support, the OSBP has also been made possible based on the bold decision by the governments of the two countries to sign the OSBP Bilateral Agreement back in 2011.

The Bilateral Agreement enables the countries to implement the OSBP concept while waiting for OSBP law, which is in the offing.

According to the tentative timetable released during a recent bi-lateral meeting between Tanzania and Burundi in the town of Gitega, Burundi, the OSBP operations on a pilot basis could start as early as 7th June, 2014.

The launching of the OSBP operations at the border will be a huge relief to travelers and traders from the two countries as they will now only stop once for customs formalities instead of twice, thereby cutting cost and time spent at the border. Clearance will also improve thanks to envisioned automation of operations at the post.

Under the OSBP concept, people entering Burundi will by-pass the Kabanga border post (Tanzania customs and immigration offices) and proceed to Kobero in Burundi where Tanzanian customs and immigration officials will work side by side.

Likewise those entering Tanzania will by-pass Kobero and stop only at Kabanga where officials of both countries will be working side by side.

According to Customs Officials Adelius Francis (Tanzania) and Bigirimana Felix (Burundi), on average, the border serves between 50 and 70 trucks per day, with more traffic moving from Tanzania into Burundi.

“Sometimes we attend to more than 100 trucks…it depends on the day,’ lamented Bigirimana who works at the Kobero border post.

Fully fledged OSPB operations at Kabanga/Kobero will begin when the construction of permanent structures completed.

TMEA’s Manager for OSBPs Israel Sekirasa told participants of the bilateral meeting who visited the border on 14th May, 2014 that the construction of the OSBP at Kabanga is expected to be completed by December this year.

He said that the construction of permanent facilities at Kobero on the Burundi side has not started but the country plans to use the modest buildings currently used for the pilot project until further notice.
SOURCE: THE GUARDIAN

AFRICA PROGRESS REPORT 2014

From: Yona Maro

GRAIN, FISH, MONEY

Africa is a rich continent. Some of those riches – especially oil, gas and minerals – have driven rapid economic growth over the past decade. The ultimate measure of progress, however, is the wellbeing of people – and Africa’s recent growth has not done nearly as much as it should to reduce poverty and hunger, or improve health and education.

To sustain growth that improves the lives of all Africans, the continent needs an economic transformation that taps into Africa’s other riches: its fertile land, its extensive fisheries and forests, and the energy and ingenuity of its people. The Africa Progress Report 2014 describes what such a transformation would look like, and how Africa can get there.

Agriculture must be at the heart that transformation. Most Africans, including the vast majority of Africa’s poor, continue to live and work in rural areas, principally as smallholder farmers. In the absence of a flourishing agricultural sector, the majority of Africans will be cut adrift from the rising tide of prosperity.

To achieve such a transformation, Africa will need to overcome three major obstacles: a lack of access to formal financial services, the weakness of the continent’s infrastructure and the lack of funds for public investment.?The Africa Progress Report 2014 describes how African governments and their international partners can cooperate to remove those obstacles – and enable all Africans to benefit from their continent’s extraordinary wealth.
DOWNLOAD REPORT

http://africaprogresspanel.org/wp-content/uploads/2014/05/APP_AR2014_LR.pdf

Yona Fares Maro
Institut d’études de sécurité – SA

Yona Fares Maro
Institut d’études de sécurité – SA

U.S.& Angola: Africa: Remarks While Touring a GE Facility in Luanda

From: U.S. Department of State
Remarks
John Kerry
Secretary of State
Luanda, Angola
May 4, 2014

Well, Jay Ireland, thank you very much for a generous welcome here to General Electric in Luanda in the center of this extraordinary economic activity. I’m very excited to be here. I’m sorry that my wife is not here, because she was born in Mozambique and speaks – her first language is Portuguese. (Applause.) So I hear it around the house all the time – muito obrigadoand all that stuff. (Laughter.)

But it’s a privilege for me to be able to be here, and I want to thank Foreign Minister Chikoti for his welcome and for the opportunity to be able to meet the president tomorrow and have a good conversation about the bilateral relationship between the United States and Angola. I am particularly pleased to be here with other representatives of the oil and gas industry, a representative from Chevron, from ConocoPhilips, as well as from ExxonMobil – Esso, as you call it here. And I’m very grateful that the representative from the U.S.-Angola Chamber of Commerce is here, too.

As you’ve heard in the earlier introductions, I’m here with former United States Senator Russ Feingold, who is our – President Obama’s and my special envoy to the Great Lakes region and who is working to produce greater stability and peace in the region. President dos Santos and Angola have provided important leadership, and I want to thank you, Angola, for the leadership an the participation and the help to solve conflicts that have gone on for too long.

But as I mentioned a moment ago, we’re standing in a place of enormous economic activity with great promise for future economic growth and development. I am accompanied on this trip by the president and CEO of the EximBank[1], Elizabeth Littlefield, because the EximBank[2] is very much a partner with General Electric and very involved in helping to support economic development here in Angola and in other parts of Africa.

In fact, though EximBank[2] we have just provided a $600 million, just about a $600 million loan guarantee that will assist in the purchase of a Boeing 777 for Angola. This will grow the opportunity of, obviously, more ability to have business and more ability to have trade, and also for people to simply come to be able to engage in some of the exciting things that are happening in Angola. In addition, Exim[2] is providing another $300 million or so of additional economic investment here in Angola.

So let me just say quickly why being here is important today. Africa is changing. Eight of the ten fastest-growing economies in the world are here in Africa. There is enormous opportunity for the people of Africa, the people of Angola, to be able to gain in healthcare, in education, in jobs, in the quality of life. And I know the government is very focused on how to provide for increased standard of living for the people of the country. That comes from fair and reasonable trade agreements where everybody benefits, where there’s an ability to create jobs. When a Boeing airliner is bought from Boeing, it creates jobs in America, but it will also create jobs and opportunity here in Angola.

General Electric has recently sold four power turbines to Angola. This is for a project in Soyo. And this will help provide the power that then generates the ability for hospitals, for schools, for homes, for cities, for stores to be able to grow and prosper. So we believe there are great opportunities on which we can build where, most importantly, Angolans will benefit.

I just spoke with the representative for ConocoPhillips, who tells me and the representative for Chevron – who tell me about the several thousands of employees. ConocoPhilipps is newer here, but Chevron has about 3,500 workers employed. So more and more Angolans are being trained to take on more and more different kinds of important jobs.

The first lady of Angola was in Los Angeles a number of years ago, and she was talking with the executives there about a disease here in Angola. A lot of people thought you couldn’t do anything about it. But Chevron, which had been working here for many years, stepped up and they talked with the Texas Children’s Hospital and they got care to be able to come her to help cure this disease for children. More than 3,000 children’s lives have been saved

So this is not just about business. This is about building a relationship between two people, two countries, and building a future. And when I look out at the economic energy out here in the port in all these containers and these ships and the work that you’re doing, I am confident that Angola, working together as you are now, will be able to help contribute to an extraordinary journey in Africa as a whole, and we will provide greater opportunity to everybody.

Thank you for the privilege. Muito obrigado. (Applause.)

[1] Elizabeth Littlefield is the president and CEO of OPIC.

[2] OPIC

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Kenya: President Uhuru Kenyatta Speech, during the 5th Northern Corridor Integration Summit

From: Sam Muigai

SPEECH BY HIS EXCELLENCY HON. UHURU KENYATTA, C.G.H., PRESIDENT AND COMMANDER IN CHIEF OF THE DEFENCE FORCES OF THE REPUBLIC OF KENYA ON 5TH NORTHERN CORRIDOR INTEGRATION SUMMIT AT SAFARI PARK HOTEL, NAIROBI ON 2ND MAY, 2014

Your Excellencies, Heads of State and Government,
Heads of Delegation Present,
Ladies and Gentlemen,
Let me begin by thanking you for honouring my invitation to this important Summit. It is a pleasure for me to welcome you all to Nairobi and in particular to this Forum. We highly appreciate your presence as it bolsters our bonds. Karibuni Nairobi!

Let me also commend the Ministers and senior officials who have been meeting during the last two days, for their diligence in preparing for the Summit. We look forward to reflecting on your report, and to advancing the work you have done.

Excellencies,
Ladies and Gentlemen,
Our region still faces a significant infrastructure deficit challenge:we must,therefore, continue to construct the infrastructure we need to raise our economies to the path of higher growth. In the near term, we will need to expand, upgrade and rehabilitate the transport network throughout our entire region to open wider economic opportunities for our peoples.

Excellencies,
Ladies and Gentlemen,
Since our first Summit in Entebbe last year, we have made remarkable progress in the priority areas we identified as crucial to our engagement. This builds on the longer history of the summits, which have seen a successive expansion of the scope of our cooperation – animated, as always, by our long-term aim of full integration. Allow me to mention some of our signal achievements so far.

As you know, our region remains beset by serious deficiencies in energy production. We chose to deal with that difficulty by investing in several generation and transmission projects, particularly in the production of geothermal power, in the construction of oil pipelines, in power interconnection and in the construction of an oil refinery. There is progress to report: the Memorandum on Geothermal Energy was signed in Februarythis year, while the electricity inter-connections between our countries are on track for completion by April next year.

Excellencies,
Ladies and Gentlemen,
We long ago recognised that we would need to build our people’s skills if we were to achieve our ambitions. It is, therefore, my pleasure to remind you that, at our last summit, we resolved to identify priority skills needed in the Integration Projects, through a regional skills audit for each sector. We also agreed to consider allocating funds for capacity building for various institutions across the region; the aim was to rehabilitate and upgrade their facilities.

Ladies and Gentlemen,
These measures will enliven the training programmes we must have, if we are to meet the demand for skilled men and women that will follow the expansion of our infrastructure.

I wish also to recall our resolution to cooperate in the development of our commodities exchange.To hasten the integration of Commodities Exchange in the region, we agreed to establish a Joint Technical Committee at the regional level. I look forward to hearing from our Ministers on the advances they have made in this task.

Excellencies,
Ladies and Gentlemen,
At the Fourth Summit in Kampala this year, we launched the East African Tourist Visa and agreed to permit the use of each other’s identity documents for travel within the region. These two initiatives have been rolled out successfully;a real evidence of the region’s desire for deeper integration. The advent of the single tourist visa eased the travels of our visitors, and effectively turned the participating countries into a single tourist destination.

Our acceptance of ID cards for travel across our borders substantially eases our peoples’ travels, opening new opportunities for cross- border trade, as well as integration at the level that matters most – between citizens. In the same spirit, we also set out to operationalize the One-stop Border Post Concept and to budget for e-visa, e-identity card and e-border management systems. I am informed that work on these matters continues at the experts’ level.

Excellencies,
Ladies and Gentlemen,
Congestion at our ports and diverse barriers along the main transport corridors have long hindered the movement of our goods. Since our first Summit, considerable improvements in the movement of cargo along the Northern Corridor have been realised. Containers from Mombasa once took 18 days to reach Kampala; that has now been reduced to 4 days. Equally worth noting is that the journey from Mombasa to Kigali now takes six (6)days in contrast to 22 days not long ago.

But this is not all about our achievements:I note with satisfaction that multiple customs declarations for fuel have since dropped by 90%. These

are great achievements; but to sustain them, we also agreed to remove all technical and non-tariff barriers to trade. Today’s Summit should therefore aim to build on these achievements by agreeing on new measures to remove the obstacles that remain.

Excellencies,
Ladies and Gentlemen,
Our achievements so far are threatened by the insecurity and terrorism that has recently caused so such concern in our region. We, the Heads of States, signed the Mutual Defence Pact and the Mutual Peace and Security Cooperation Pact during the last Summit.

These pacts expressed our common commitment to take the fight to those who prefer violence and theft instead of honest toiling to earn prosperity and freedom. Allow me now to encourage the partner states to hasten the full enactment of these agreements.

Excellencies,
Ladies and Gentlemen, Let me now touch on other infrastructure programmes we are working on.

Some time ago, we set ourselves the goal of developing a standard gauge railway system byMarch 2018. For my part, I can report that work on the Mombasa-Nairobi section was launched in Novemberlast year.

Full construction is expected to begin in July this year, and the line from Mombasa to Malaba is on schedule for completion by March 2018. The LAPSSET project, which we all expect to multiply the opportunities for trade and interaction between our nations, continues to make steady progress.

We also agreed to establish seamless operations across our air space – whether in the management of our air traffic, or in the use and sharing of the information and resources held in trust by our institutions. These plans are backed by, and depend on, our commitment to partner in the development of an ICT infrastructure-related concept.

Excellencies,
Ladies and Gentlemen, In conclusion, I wish to note that these projects and initiatives are extraordinarily ambitious. But we have no choice if we desire to fully exploit the potential of our region. We agreed to undertake those initiatives confident that we are equal to the task. It remains only to rededicate ourselves to completing what we have begun.

Thank you. God bless you all, and may He bless and lead East Africa.

CHINESE MASSIVE BUSINESS INFLUENCE IN KENYA MAY SOON COME TO AN ABRUPT END

Writes Leo Odera Omolo

SO they came with thud winning mega construction tenders worth billions of dollars on road networks, government buildings and institutions construction while carrying brief-cases swollen with bribe cash money. However, the days of massive influence by big business people from Bringing who have dominated the construction industry in Kenya for decades is soon coming to an abrupt end.

Under the reign of the retired President Mwai Kibaki, the Chinese big business people invaded the Kenyan market

The Chinese contractors fizzled out the traditional Kenya in business partners from Western Europe, especially those from the EU nations which had dominated the construction industry ib Kenya in the pre-independence and post-independence period between 1963 and 2002,

Major construction firms like Mowlem Construction of the UK, Sterling Astaldi of Italy, Israelis solebhonen and other were swept away, as the generous Chinese big business people visited government offices in Nairobi with their hands well oiled with bribe money.

President Mwai Kibaki made several official tours and state visit of China in the company of top government officials and cabinet ministers where he signed numerous bilateral agreement on trade. These missions opened floodgate, and no sooner, the streets of Nairobi, the Kenyan capital and other urban centers were swarmed by Chinese hawkers, hawking with petty wares such as ball pens, mobile phones, radios, watches and other cheap items.

At first, the indigenous Kenyan hawkers in Nairobi streets staged a near violent protest against the Chinese hawkers,

Kenyan businessmen of African origins are up in arms against any more Chinese. The National Construction Authority, the state body that is tasked with the responsibility of regulating guidelines to check on the construction sector and to check the growing Chinese influence on the oriental’s on local construction scene last month came out with the gun blasting.

The authority’s action came as the result of numerous complaints lodged by the local African contractors that the Chinese contractors were taking the lion’s share in nearly all the big construction projects.

The authority recently issued a statement saying that the local construction companies are now edged of public infrastructure work to private virtues. The Authority said it would lobby parliament and the House Committee on delegated legislation to have rules aping the Chinese contractors participation in Kenya building industry.

It reported that both house and the team have agreed that the regulation be published after Easter Monday before being tabled by Parliament.

Among the key concerns raised in the regulation is that at least 30 per cent of the monetary value of a project should go to the locals. This will made possible through joint venture or sub contracting.

Some of the Chinese construction firms undertaking major infrastructure projects in Kenya include China Road and Bridge Corporation and China Wu Yi was to constructed to build the Kshs 4.47 billion standard gauge railway line between Kenya’s port city of Mombasa and Nairobi. But already the parliament is demanding detailed account of how this particular tender contract was dished out and has called for a probe team to be setup

China WU WAS last year named the contractors University of Nairobi’s 22 story Building Complex valued at Kshs 2.3 billion ad another Chinese company China Jiangxi International is the main contractor for the proposed tallest building in Nairobi Hazina Trade Center..

The authority regulation dictate that recruitment or employment of foreign technical or skilled workers on such contracts shall be done on occasions when skills by the foreigners are not avoidably locally..The dishing out the tenders for such project must be approved by the regulating authority. Compulsory training of lower carder construction by the NCA upgrade their standards.

All these strings now being attached to construction industry retargeting to put in check the Chinese excesses.

ENDS

Africa Progress Report: Kofi Annan and other Panel Members to launch 2014 Africa Progress Report – Grain, Fish, Money

From: News Release – African Press Organization (APO)
From: News Release – African Press Organization (APO)
PRESS RELEASE

Kofi Annan and other Panel Members to launch 2014 Africa Progress Report – Grain, Fish, Money

The Africa Progress Panel will release its annual Africa Progress Report at the World Economic Forum on Africa held in Abuja, Nigeria

ABUJA, Nigeria, April 29, 2014/ — On Thursday, May 8th 2014, the Africa Progress Panel (http://www.africaprogresspanel.org) will release its annual Africa Progress Report – Grain, Fish, Money – Financing Africa’s Green and Blue revolutions, at the World Economic Forum on Africa held in Abuja, Nigeria.

Logo: http://www.photos.apo-opa.com/plog-content/images/apo/logos/app.png

Chaired by former UN Secretary-General, Kofi Annan, last year’s report Equity in Extractives – Stewarding Africa’s Natural Resources for all, made headlines with its analysis of the oil, gas, and minerals industries in Africa.

This year’s report will argue that Africa can and must unleash green and blue revolutions in its agriculture and fisheries. It will highlight the opportunities for Africa of the world’s growing demand for food and the critical importance of agriculture and fisheries for two thirds of people in Africa engaged in these sectors. The report will also recommend related policies, including policies to scale-up Africa’s infrastructure and extend its financial services. The report will also outline the urgent need to stop the plunder of Africa’s timber and fisheries.

The following Panel Members and Members of the Secretariat will be attending WEF on Africa to outline findings shared in the report.

• Kofi Annan, Chair, Africa Progress Panel, and former UN Secretary-General

• Olusegun Obasanjo, Member, Africa Progress Panel, and former President of Nigeria

• Peter Eigen, Member, Africa Progress Panel, Founder of Transparency International, and Founding Chair and Special Representative of the Extractive Industries Transparency Initiative (EITI)

• Bob Geldof, Member, Africa Progress Panel, Musician, Businessman, Founder and Chair of Band Aid, Live Aid and live8, Co-Founder of DATA and ONE Advisor and Advocate

• Caroline Kende-Robb, Executive Director, Africa Progress Panel

• Max Bankole Jarrett, Deputy Executive Director, Africa Progress Panel

Note to editor:

• Caroline Kende-Robb and Max Bankole will both be available for telephonic interviews from Tuesday 29 April until Friday 2 May, in build-up to WEF on Africa and the content expected to be shared during the official introduction of the 2014 report. There is limited interview slots available and email confirmation is required.

• Additional interviews with the panel outline above will be made available during WEF and can be arranged beforehand, again there are limited slots with each panel member and media will accommodated on a first come first served basis.

• The embargoed insights release and 2014 APP report will be sent out on Wednesday 7 May 2014.

Distributed by APO (African Press Organization) on behalf of the Africa Progress Panel (APP).

For further information, please contact:
Hill+Knowlton Strategies (d) +27 11 463 2198
Victoria Williams (m) +27 72 452 1772
Email: victoria.williams@hkstrategies.co.za

Geraldine Trennery (m) +27 82 677 5201
Email: geraldine.trennery@hkstrategies.co.za
www.africaprogresspanel.org
http://www.facebook.com/africaprogresspanel
@africaprogress

About the Africa Progress Panel

Chaired by Kofi Annan, former Secretary-General of the United Nations, the ten-member Africa Progress Panel (http://www.africaprogresspanel.org) advocates at the highest levels for equitable and sustainable development in Africa. The Panel releases its flagship publication, the Africa Progress Report, every year in May.

SOURCE
Africa Progress Panel (APP)

Four reasons Chinese companies thrive abroad

From: Yona Maro

Despite the global economic and financial crises of recent years, corporate China continues its push for globalization. China now ranks third in the world for outward FDI (2012 data), with its fastest revenue growth over the period 2008?2012 coming from operations in North America and Europe. The top Chinese multinational corporations (MNCs) are increasing their overseas assets and overseas employment at rapid rates, and seeing greater revenue increases from overseas operations than from their Chinese ones.

Moreover, today’s Chinese globalizers have even more aggressive plans for geographic and functional expansion in the near future. A survey by the World Economic Forum and Booz & Company of 125 leading Chinese globalizers shows these companies planning to expand in the next five years in virtually every region of the world and to expand their functional footprints outside of China as well.

Our research on the success of leading Chinese globalizers has also found, however, that increased effort at globalization does not necessarily lead to increased output. Furthermore, companies with similar, perfectly sound globalization strategies do not necessarily achieve similar results. What distinguishes a group of companies the report identifies as Chinese Globalization Champions from the rest of the pack is their ability to systematically tackle various operational challenges in the globalization process.

In analyzing these challenges and how Chinese Globalization Champions overcome them, we developed a reference framework for a global operating model, a framework with four building blocks: Culture, Governance, Processes, and People. Successful execution in these four areas, in turn, allows Chinese Globalization Champions to address three sets of polarities or tensions that challenge all globalizing companies: Home country & Host Country, Consistency & Innovation, and Control & Empowerment.

Our research on how Chinese Globalization Champions successfully manage these three polarities in their operating models reveals several best practices in the areas of Culture, Governance, Processes, and People from which other Chinese globalizers can draw lessons.

Link:
http://forumblog.org/2014/04/china-companies-abroad-globalization/


Yona Fares Maro
Institut d’études de sécurité – SA

Africa: EnergyNet recognised by British Prime Minister and H.M. Queen Elizabeth II in Birthday Honours

From: News Release – African Press Organization (APO)
PRESS RELEASE

EnergyNet recognised by British Prime Minister and H.M. Queen Elizabeth II in Birthday Honours

EnergyNet organises a global portfolio of investment meetings, conferences and infrastructure events focused specifically on the power and industrial sectors across Africa

LONDON, United-Kingdom, April 22, 2014/ — EnergyNet (http://www.energynet.co.uk) is delighted to announce that on the advice of the British Prime Minister, the Rt Hon David Cameron, Her Majesty Queen Elizabeth II will present EnergyNet Ltd. the Queens Award for Enterprise: International Trade, the UK’s highest accolade for business success.

Logo: http://www.photos.apo-opa.com/plog-content/images/apo/logos/energynet.png

This award has been made in recognition of EnergyNet’s international success over the last three years uniting public and private sector leaders under one common goal; to increase investment success in Africa’s power sector, promoting economic development and job creation.

Simon Gosling, MD, EnergyNet says – “Over the past few years we have been witness to a political landscape that has shifted dramatically, where Ministers from Nigeria, Kenya, Mozambique, Tanzania, Ethiopia, Ghana, Cameroon, South Africa and beyond have had to adapt to meet the needs of both ‘the people’ demanding increased access to energy and also the international investors that will help to deliver that energy.

As a reflection of this, EnergyNet’s portfolio has grown whilst remaining committed to our highly focused industry demographic, building strategic alliances with key businesses that are shaping the investment landscape across Africa, including; Norton Rose Fulbright, Aggreko, KenGen, APR Energy, GE, Schneider Electric, IIPELP, Copperbelt Energy Corp, TANESCO, National Treasury South Africa, CADFund, Globeleq, Symbion Power, Standard Bank, Standard Chartered Bank, OPIC, USAID, MCC, IFC, AFC, World Bank and AfDB.

It is these leaders who are laying the foundations for future generations and that are the champions for tomorrow’s success. However, it is the entrepreneurs of tomorrow that will create the biggest transformation. They will have the opportunity to squander what today’s industrialists build or to take continent forward to a 23rd century where Africa is King.

To support those entrepreneurs and industrialists of tomorrow we have established the ‘EnergyNet Student Engagement Initiative’ bringing legal, finance and engineering students to our international forums to promote capacity building and their own awareness of ‘Africa’s industrial potential’. It will also enable them to gain a deeper insight into the nuances of doing international business across all foreign continents which for us as a content provider is hugely important for the development of international trade for Africa.

It is an exceptional honour to have one’s achievements recognised. It is a reflection of our partners that have consistently supported EnergyNet and our values over the years and that have invested heavily (beyond just financial investment) ‘turning the lights on in this incredible continent’.

Inspiration comes in many forms, today we have been inspired to do more and to be better, but equally important, we have been inspired to remain resolute in our business strategy, linking the impact of power generation to job creation.”

Distributed by APO (African Press Organization) on behalf of EnergyNet Ltd.

For more information please contact:

Amy Offord, Senior Marketing Executive
EnergyNet Ltd.
T: +44 20 7384 8068
E: amy.offord@energynet.co.uk
V. http://www.energynet.co.uk

About EnergyNet:

Who we are:

EnergyNet Ltd. (http://www.energynet.co.uk) organises a global portfolio of investment meetings, conferences and infrastructure events focused specifically on the power and industrial sectors across Africa.

Proven to engage the decision makers and technical directors behind Africa’s most exciting economies, EnergyNet places economic development at the heart of industrial solutions, helping to generate a more stable and viable investment option for your organisation in Africa. We challenge the way your business does business in Africa; the information we provide isn’t available on the internet and isn’t out of a dusty old textbook.

Whilst EnergyNet is an Africa focused team of researchers and experienced power conference professionals, we are owned and supported globally by the UK’s largest conference and exhibitions organisation, Clarion Events. With vast resources and over 500 people covering defence, energy and utilities in Brazil, Germany, London, New York, San Francisco, South Africa, Turkey, Abu Dhabi and Singapore, EnergyNet Ltd and Clarion Events are committed to providing global insights and local partnerships.

What we do:

Knowledge, passion, detailed research and commercial thinking drive our daily activities so that our content is always ahead of the curve and our speakers are relevant and at the cutting edge of sector developments. We need to be proud of what we deliver.

Trust and confidence shape our relationships and we appreciate that we often represent major corporations and their brands. globally. The responsibility of caring for each of our clients’ brands is something that we take very seriously.

Most importantly, we listen to stakeholders from both the public and private sectors so that we can react better to the changing investment climates around the world.

EnergyNet delivers local strategies, local content and local insights for global businesses.

How can Energynet support your P&L and help limit your risk:

EnergyNet works with governments, energy and infrastructure ministries and national utilities across Africa. We work with our partners to understand their strategic needs and bring together solution providers to support those goals.

We focus on core industry providers including private power developers, investment banks and DFIs, Lawyers, credible consultants, EPCs and immediate power providers to support contract delivery and project success.

It’s not so much about the ‘global’ economies as the ‘local’ economies:

We understand what it takes to work in challenging environment to generate, transmit and distribute power, and how easily millions of dollars are wasted because of changing politics, out of date industry data or simply cultural nuances. We will support your business development by connecting you with stakeholders that provide you direction and technical insight and will work directly with you to answer the most pressing questions challenging your business.

By attending one of the EnergyNet Forum’s or Powering Africa: Series’, you’ll only meet people relevant to major power and industrial projects, including; national and local government, industrial cluster and free trade zones, major power users such mining, ports and international shipping companies as well as the legal, finance and technical solution providers behind many of Africa’s power projects.

EnergyNet has proved over the last 15yrs that by remaining focused, you can build a network that can find solutions in the most challenging of environments – “It’s all about what you know and who you know!”

SOURCE
EnergyNet Ltd.

EAST AFRICAN BUSINESS COUNCIL HAS ELECTED NEW EXECUTIVE CHAIRMAN

Reports Leo Odera Omolo

Information emerging from Arusha says the East African Business Council has elected Felix Mosha, a Tanzanian, as its new Executive Chairman for 2014/2015.

Mosha now succeeds Virnal Shah a Kenyan who had served the umbrella of private sector organization since May 2013.

Mosha, who is an Economist, will be tasked with ensuring that non-tariff barriers are eliminated as they are main uniting factor to the growth of the private sector and are slowing down the integration process.

The region also needs to speed up the integration process for the benefit of its citizens.

Mosha has outlined key privileges that he will focus on during his tenure.

They include free movement of persons across the region, movement of services, ensuring food security across the region, elimination of NTBs, free and speedy acquisition of work permits, domestic taxes, harmonisation, improving EABC viability and mobility enhancement.

Other Board members elected were Vice Chairperson Nyumbere of Burundi, Olive Kigunga of Uganda and Denis Kabera of Rwanda.

A report released by the EAC Secretariat that cover he past 55 NTRS were resolved from 36 that were resolved in 2012.

The World Bank doing business 2013 report highlighted NTBS as one of the key challenges the region faced with. Inadequate infrastructure, particularly roads, railways and energy, have also hindered the process.

Established in 1992, the EABC is the apex body of business associations of the private sector and corporates from Uganda, Kenya, Tanzania, Burundi and Rwanda. It also aims to protect the environment conducive to business and growth.

Meanwhile other new items came out of Arusha based secretariat of the EAC syas that a push to remove unnecessary trade barriers and develop key infrastructure progrests has driven trade between East African countries to new heights.

New data by the United nations (EAC) ensurer that between 2000 and 2012.

Ends

EAST AFRICAN HEADS AGREED TO CONSTRUCT NEW OIL REFINERY IN UGANDA

Business feature By Leo Odera Omolo

East Africa regional leaders have agreed to set up a regional oil refinery in Hoima town in western Uganda and a pipeline in Lamu on the Kenyan coast.

Kenya, Uganda and Rwanda struck the deal at a recent meeting held in the Rwandan capital, Kigali. Kenya’s President Uhuru Kenyatt, Yoweri Museveni of Uganda and Paul Kagame of Rwanda were in attendance during the mini-summit which was held on April 6 , 2014.

Discussion centered on the oil refinery at Hoima stated presidential joint strategic communications unit issued after the meeting.

The regional leaders also agreed on joint construction of a crude oil pipeline from Hoima to Lamu in Kenya.

The regional refinery and a crude oil pipeline to Kenya’s seaport of Lamu are among a raft of agreements that are covered in a trilateral pact signed last year.

The pact, however, left room for the three states to decide whether to pull resources for the refinery and how to do so.

Uganda and Kenya have both confirmed commercial quantities of recently discovered oil and both are currently sprucing up their midstream capacities

Kenya closed down its aging Changamwe based oil refinery last year citing inefficiencies that made locally refined fuels more costly than imported finished products

The assets of Kenya petroleum Refinery Ltd were also found to be unstable in refining the waxy oil discovered in both countries. The Changamwe based facility was built to handle urban demand and oil from the middle east. As a result, regional leaders have been favorable to pipeline and refinery options when the oil find came online.

Experts, according to media reports, have however warned that a pipeline for waxy oil is likely to be a very expensive undertaking. Concerned states therefore, will not only have to invest in an …heating system to keep the crude flowing, but also ensure its security from sabotage.

South Sudan and Ethiopia are also expected to join the initiative at a later stage as it professes flow at the Lamu port.

Meanwhile EAC countries traded more with each other than with any other trading blocs on the continent, boosting an average intra regional export as a percentage by destination of 19.5 per cent.

Comparatively, southern African Development Community (SADC), is second with an intra regional trade export average of 10.9 per cent, followed by intergovernmental authority on Development, at 0.92 per cent, and West African Economic community (ECOWAS), coming fourth at 8.6 per cent.

However intra EAC trade still suffered hiccups arising from several barriers evicted by member state. For example the latest scorecards on EAC trade launched in February show that Tanzania and Burundi have retained the highest number of restriction to cross boarder trade and flow of foreign direction investment in the East African Region.

Since the common market protocol was implemented in July 2010, Rwanda, Uganda and Tanzania have introduced at least 10 restrictions on the movement of capital in service. Several new restrictions have been introduced – – at least 10 restrictions to cross border on the movement of capital In service. Several new restrictions have been introduced or carried over into laws.

And for the case of goods, since…the enactment of the custom reunion on January 1, 2005, 51 non tariff barriers arising from regulatory measures by governments were identified between 2008 and June 2003.

The UNECA argues that the average intra regional export members are low and more needs to be done to help push them up.

While in the recent past there has been a focus on approving infrastructure by EAC heads of states, it remains a major aim to increasing intra- organization trade. Both roads and railway network are still not well established to allow the easy movement of goods and services.

UNEAC further says that intra- regional trade promotes cohesion and strengthens the barganing power of African countries as a critical of factor when negating trade agreements with rich nations.

The deal which increased intra-regional trade would also help Africa gain more from its measures. Usually the developed world buys raw materials from African Nations to manufacture goods and later sell to the continent at exravegant prices.

“Dependence on commodity prices and in some cases mineral extraction makes growth vulnerable to external shocks,“ says Andrew Mold, a senior economic affairs officer at the sub-regional office for Eastern Africa.

Economics and observers believe a diversified economy will help East African countries more from a traditional agriculture based economy to one industrial one

Ends

KENYA: EAACC AND CHIEF JUSTICE URGED TO INVESTIGATE THE CONTROVERSIAL CONSTRUCTION OF ROAD LEADING TO THE HOME OF SUPREME COURT JUDGE.

Writes Leo Odera Omolo

The Ethics and Anti Corruption Commissions {EAACC} and the Chief Justice Dr Willy Mutunga have been urged to probe the hasty and suspicious decision by the Migori County government to construct the road leading to the home of a Supreme court judge.

Migori residents are suspicious that the work which started last weekend is coming immediately after the embattled Migori governor Zachary Okoth Obado had lodge an earlier judgment by the Appeal Court had nullified his election on march 4,2013 as the governor and recommended that a by-election be held.

Obado has since lodged an appeal with the Supreme Court of Kenya seeking to overturn the Appeal court ruling and the case is scheduled to be mention on April 23.

The road construction is viewed by Migori resident as aimed at circumvent justice.The work not only ill-timed, but is also in bad taste giving bad innuendo to justice system

The work sparked off street demonstration by the ODM youth in Migori town last Saturday. The youth demanded that the work is ill-timed and therefore should be cancelled until after the hearing and determination of the court case.

The work began within three days only after the Supreme Court had suspended the dismissal of governor Obado and allowed him to resume his work as the Migori governor pending the hearing and determination of his appeal case.

The work sparked off a street demonstration by a group of rowdy DM youth in Migori town last Saturday.

The road which is branching off the Awendo-migori main road and leading to ogwedhi Is leading to the rural home of the Supreme Court judge Jacton Ojuwang’ Boma.The youth said the construction of this road by thr county government when the area governor is embroiled in protracted legal tusle before the same court where justice Ojwang’ is a member of the bench would portray the court in bad picture. and should be cancelled in the interest of justice.

Justice Ojuwang’ Boma is the husband of the PSS for Science and Technology Prof. Corette Suda. However, a top county executive official ln-charge of Roads Erustus Nyamori dismissed the complaints by the youth as unwarranted, arguing hat the PSS Prof Suda had applied to the County to repair the road last August “At that time the work was approved we didn’t know she was married to the judge. The repair work is normal”

The construction work began last weekend only a few days after governor Obado returned from Nairobi and resumed his duties. The County truck were seen busy delivering murrams while the workers were digging drainage on the site

Other unconfirmed sources said the County was also laying water pipe to connect the home with water supplies and that the whole exercise would cost the County government close to Kshs 30 million.

Ends

World Investment and Political Risk 2013

From: Yona Maro

For a second straight year, FDI to developing economies remains soft, still below previous peaks (figure 1). After declining from the 2011 peak of $628 billion to $604 billion last year, 2013 is expected to see a 2 percent increase to an estimated $617 billion—a further increase is expected only in 2015. While there has been explosive FDI growth since the turn of the century—FDI was 337 percent higher in 2011 than in 2000—the rebound of 2009-10 looks more distant. FDI now appears stable and at high levels, but with persistent economic concerns and stuttering growth, it does not look likely to return to the growth rates of the mid 2000s anytime soon.

At a sub-regional level, trends are more diverse. Sub-Saharan Africa and South Asia have shown healthy growth this year, achieving 19 percent and 21 percent increases in FDI inflows, respectively. Other developing regions are experiencing declines, particularly Europe and Central Asia, where FDI flows are expected to fall by 16 percent for the year. The other key success stories of recent years – increases in FDI from developing economies and South-South investment—continued. FDI outflows from developing economies reached a record level of $164 billion in 2012, representing a record share of 12 percent of global FDI outflows.
Link
http://viewer.zmags.com/static/production.zmags/3Wv_pdf_dd6bd5a095a2683462d61a8f6606eefa


Yona Fares Maro
Institut d’études de sécurité – SA