Progress Report on the Implementation of the Decisions of the First Session of the Technical Committee on Natural Resources and, Science and Technology

1. Introduction

1. This report aims at briefly providing information on the level of implementation of the decisions of the 1st meeting of the Committee on Natural Resources and, Science and Technology (CNRST-1). The report covers the period from November 1999 to October 2001. It describes the activities carried out by ECA in direct or indirect response to the directives and recommendations of CNRST-1, and provides information on the activities undertaken by other stakeholders.

2. It is to be recalled that ECA's activities during the above-mention period are carried out within the framework of the biennium 2000-2001 as approved by the United Nations General Assembly and in fulfilment of the mandate given to CNRST by the ECA's Conference of Ministers Responsible for Economic and Social Development and Planning through Resolution No. 826 (XXXII) of April 1996. The planned activities for the biennium 2002-2003 have been articulated within this mandate and in light of the recommendation of CNRST-1.

3. With regard to mineral and energy resources, CNRST-1 took note of the actions taken by ECA to implement the recommendations of the "Second Conference of the African Ministers Responsible for the Development and Utilisation of Mineral and Energy Resources" held in Durban, South Africa, from 21 to 22 November 1997. The Committee noted the importance of these recommendations and asked member countries, ECA and other partners to actively and expeditiously pursue their implementation.

4. With regard to all natural resources, CNRST-1 further re-emphasised that special attention should be given to:

5. The report provides information on actions taken to:

(a) Promote and facilitate co-operation among African countries in the areas of natural resources, science and technology;

(b) Facilitate exchange of information and sharing of experiences in natural resources, science and technology; and

(c) Undertake advisory services to member States.

2. Major Developments

6. During the period under review, a number of initiatives have been advanced which will have implications for changing the continent's development environment. Notably these are:

7. The initiatives have as a common objective the launching of Africa's development efforts. They further indicate a strong political commitment by African leaders to take full responsibility for the destiny of the continent. The adoption of the Constitutive Act of the African Union is a laudable landmark on the path to African Unity and collective development. These initiatives, together with the ECA's work programme for 2002 and 2003 in the areas of natural resources and science and technology, will provide anchorage for the work of CNRST as they provide a common vision and a structured development framework that should guide the work of the Committee in the future.

3. Activities carried out by ECA

3.1. Mining

8. In response to the recommendations of CNRST-1, ECA's activities on the mining sector during 2001-2002 focused on:

9. In this respect, ECA continued to collaborate with the Southern African Development Community (SADC), Union Economique et Monétaire Ouest Africaine (UEMOA) and Southern and Eastern African Mineral Centre (SEAMIC). ECA has been regularly attending the SADC Mining Ministers Meeting as well as the meetings of the policy organs of SEAMIC. In addition, ECA continued to serve as a member of the Board of Directors of SEAMIC. These three organisations have been very active in harmonising policies, laws and practices impacting on the development of mineral resources in their respective sub-regions. In all these fora, ECA provided strategic support, policy guidelines and exchanged experiences on best practices.

10. SADC has been very active in creating conditions for the development of natural resources. To this effect, it held a workshop on the implementation of the SADC Mining Protocol in April 2001. The workshop reviewed the SADC Mining Programme of Work and examined the successes and failures of each of the sub-committees in which the SADC mining sector is sub-divided, namely, geology, mining and marketing, mineral processing, environment, human resources development and information. The workshop also evaluated developments in the international mining industry, which have impact on the SADC mining sector.

11. The main objectives of the workshop were:

12. In UEMOA, member States agreed in November 2000 to adopt a common mining policy and legislation, including a harmonised fiscal code. The main objectives of this policy are:

13. In SEAMIC, member States approved a new Shareholders Agreement which allows for the transformation of their accumulated financial contributions to the organisation into equivalent shares and proportionate voting powers. In addition, the Shareholders Agreement will permit the participation of other stakeholders including the private sector, as long as their combined shares do not exceed 20 percent of the total shares, and that they pledge to observe SEAMIC's mission and objectives. Also important was the introduction of Performance Contracts. These contracts will regulate the way in which SEAMIC delivers its services to its member States. It is expected that through the Performance Contracts, the (capacity) utilisation of SEAMIC's services by its member States will increase.

14. In addition to attending mining meetings and conferences where the case of sustained mineral development was promoted, ECA was also busy preparing parliamentary documentation and recurrent and non-recurrent publications including newsletters. Advisory services and fieldwork were also conducted specially on small-scale mining. In this respect, the following was carried out:

15. This meeting, which took place in Douala, Cameroon from 18 to 20 December 2000, was organised by the ECA Sub-regional Development Centre for Central Africa (SRDC-CA). The main recommendations of the meeting were on strategies and programmes for strengthening sub-regional co-operation in energy and mineral resources development in Central Africa and on the revitalisation of the Central African Mineral Resources Development Centre (CAMRDC). With regard to CAMRDC, the meeting recommended that member States should:

16. The meeting further recommended that:

17. The Centre was directed to:

18. This study is aimed at assisting African countries with mineral economies to establish optional frameworks for the development of their mining sectors. The study suggests that this development requires collaboration between the public and the private sectors where responsibilities, resources, risks and benefits are shared. Through this collaboration higher productivity and competitiveness can be achieved. It further proposes that governments should move away from engaging in production activities and should confine themselves to policy making and regulation. It however, while mining can be considered primarily a private sector activity, governments have an important role to play in order to accelerate the development of the sector. This role should focus on:

19. The study also recognises the role of the private sector as a major source of financial resources, technology, and technical skills. It calls for the creation of an enabling environment to attract foreign direct investment and that will help dispel the perception that Africa is a high-risk destination.

20. The newsletter focuses on the main events in the mining and energy sectors such as conferences, seminars, meetings, workshops and symposia organised by ECA and/or in which ECA participated. It also provides information on the assistance provided to sub-regional development institutions, particularly to the Southern and Eastern African Mineral Resources Development Centre (SEAMIC). It further elaborates on the status of implementation of some mining and energy projects designed to promote economic co-operation, such as the UEMOA's Common Mining Policy, the West African Gas Pipeline and the West African Power Pool in the ECOWAS sub-region, as well as the Southern Africa Power Pool in the SADC sub-region.

21. This paper was prepared by ECA secretariat for presentation to the special session of the Conference of African Ministers of Energy and Mining held in Ouagadougou, Burkina Faso, from 29 November to 3 December 2000. The paper notes that despite its impressive wealth, Africa remains poor. It further indicates that, in general, earnings from mineral exports have not been ploughed back into productive activities and have not contributed to improving the quality of life of local communities. The paper proposes several policy, institutional and technological instruments to transform mining in Africa into an instrument of sustainable development and poverty alleviation.

22. This report presents the results of a desk study and field missions to Kenya, Tanzania, South Africa, Zimbabwe and Zambia aimed at identifying the constraints, factors and issues impacting upon the competitiveness of small-scale enterprises in the energy and mineral sectors of those countries, and outlining areas of intervention by major stakeholders to address constraints. The study proposes that appropriate regulations should be put in place to promote small-scale enterprises that would reduce restrictions and improve the regulatory framework governing the sector and the system for granting licenses. In addition, it proposes that (i) the agencies overseeing the sector should be properly resourced with adequate human resources, funding and equipment to effectively and efficiently administer it; (ii) access to financial resources should be facilitated through affordable interest rates and mobilising grants and loans; (iii) human resources and skills should be developed by facilitating access to training on production, processing and business management; (iv) access to mineral resources should be extended by finding and allocating additional suitable ground for small-scale mining; (v) appropriate technology should be developed; and (vi) access to information (including information on markets) should be expanded.

23. The study reiterates that to develop a competitive SSE sector there is need to create supporting research and development infrastructure that is capable of carrying out pioneering work on appropriate technologies for the sector. These technologies should be simple to use, robust, affordable and adapted to local environment and conditions. These technology innovations should be achieved through enhancement of local capacity to acquire, develop, internalise and adapt modern technologies. In addition, there is need to follow strategies that contribute to the reduction of transaction costs, improve productivity, increase the rate of return on investments and reduce risks to the environment.

24. The compilation of the Compendium has to await the outcome of studies which have been commissioned by the Mining, Minerals and Sustainable Development (MMSD) project and consultation with the Collaborative Group on Artisanal and Small-scale Mining (CASM). It is expected that the compendium will be prepared during the biennium 2002-2003. Once prepared, ECA plans to organise a regional seminar to review and draw lessons from best practices in small-scale mining.

25. The Indaba Conference that is organised on a yearly basis in Cape Town, South Africa, is one of the most important venues for promoting investments in the mining sector in Africa. ECA has been participating regularly in this event with a view to keeping abreast with the developments in the mining sector in Africa and enhancing collaboration and networking with other organisations and stakeholders.

26. The special session of the Conference of African Ministers of Mining and Energy held in Ouagadougou, Burkina Faso from 29 November to 3 December 2000 noted earlier, focused on actions to be taken regarding: (i) the harmonisation of mining policies and legislation, (ii) resources development and alleviation of poverty; and (iii) the partnership to be established between the government, mining companies, and local communities for sustainable development. The Conference decided to:

Promote harmonisation of mineral policies and legislation by:

Address poverty alleviation by urging governments to:

Remove financial, technical, and institutional constraints by:

Promote partnership between government, mining companies, local communities in order to achieve for sustainable development

27. Considering the critical role and importance of the mining and energy sectors as driving forces for socio-economic development in Africa and the need to organise regular meetings among African mining leaders, and in order to create an effective mechanism to ensure follow-up and implementation of recommendations and resolutions adopted in mining and energy fora, the Ministers further decided to:

28. The Ministers acknowledged the importance of the proposed Africa- United States Conference on Energy scheduled for 11-15 December 2000 and urged member States to attend it. ECA contributed a paper as mention above and helped service the meeting.

29. The Seventh Meeting of the Board of Directors (BOD) of the Southern and Eastern African Mineral Centre (SEAMIC) was held in Dar Es Salaam, Tanzania from 6 to 9 March 2000. Despite the fact that the introduction of a shareholding system in SEAMIC would imply that the members of SEAMIC would only be those who have shares in the organisation, the BOD suggested that ECA, without being a shareholder, would continue to be part of the Policy Organs and the Board of Directors of SEAMIC. In this regard, ECA attended the meeting of the legislative organs of the Southern and Eastern Mineral Centre (SEAMIC) that took place at the Centre's headquarters in Dar-Es-Salaam, Tanzania from 22 to 26 May 2000, namely the meeting of the Standing Committee of Officials, which was presided over by ECA, and the meeting of the Governing Council.

30. In these meetings, the Work Programme and Budget for 2000-2001 for the Centre was approved together with the suggested amendments to the Financial Rules and Regulations. A Shareholding Concept and Performance Contracts were also introduced.

3.2. Energy

31. CNRST-1 urged that the recommendations of the Second Conference of the African Ministers Responsible for the Development and Utilisation of Mineral and Energy Resources held in Durban, South Africa, from 21 to 22 November 1997, should be implemented expeditiously in particular those aimed at:

(i) The establishment of policies which facilitate the participation of the private sector in the development of natural resources;

(ii) The promotion of natural resources; and

(iii) The strengthening of co-operation among member States and all other actors involved in the development of natural resources.

32. In response to CNRST-1 request, ECA prepared and carried out the following studies and out the activities respectively:

33. The aim of the study is to assist African countries establish appropriate policy, institutional, legal and regulatory frameworks for attracting private sector participation in the development of energy.

34. This study, which is under preparation, aims at establishing appropriate policy and institutional frameworks for implementing rural electrification programmes for African countries particularly by promoting the utilisation of new and renewable sources of energy.

35. The aim of the planned study is to propose model project documents for rural electrification projects using new and renewable sources of energy.

36. The Implementation of the West African Power Pool (WAPP) Project started with the adoption of the Indicative Master Plan by the First ECOWAS Energy Ministers Meeting held in Accra, Ghana, in November 1999. The Energy Ministers signed the Inter-Governmental Memorandum of Understanding (MoU) for implementing the project in their second meeting held in Lome, Togo, in September 2000. The Draft Inter-Utility Memorandum of Understanding was adopted by the Chief Executives of the national power companies at the ECOWAS meeting held in March 2001 in Dakar, Senegal.

37. Progress is being made with the establishment of the Regional Electricity Regulatory Association (RERA) in the Southern African Development Community (SADC) region. An added impetus was given by the SADC Energy Ministers at their meeting held in Kinshasa, Democratic Republic of Congo, from 4 to 8 June 2001. Because there is an increasing integration of electricity systems in southern Africa, it was deemed necessary to review the current regulatory arrangements and RERA is intended to be the vehicle to achieve this. Neighbouring countries have agreed to form an integrated electricity market, which will provide significant benefits arising from economies of scale and shared resources. Indeed, the successful regional integration of electricity systems requires a framework for transactions to take place, arrangements for systems operations, and a system of tariffs for use of transmission infrastructure. Many countries in the region have either established or are in the process of setting up regulatory bodies. These regulatory authorities are beginning to examine the implications that increasing interconnections and cross-border trade may have on their roles and responsibilities.

38. Plans for Kenya and Tanzania to connect their power grids to the South African Power Pool (SAPP) have been disclosed early in 2001. Feasibility studies on the Kenya-Tanzania-Zambia transmission lines are scheduled for completion in December 2002. The governments of Kenya, Tanzania and Zambia have also approved a project implementation programme that will allow for the review of the studies and ensure that a developer is selected by December 2002. The project involves three phases: Nairobi-Arusha, Arusha-Mbeya, and Mbeya-Pensulo (Zambia). Tanzania will have to reinforce its internal transmission lines between Arusha and Mbeya so as to match the anticipated power capacities. Feasibility studies for the Tanzania-Kenya Power Interconnector, funded by the governments of Kenya and Tanzania, are due for completion by January 2002. Although feasibility studies for the Zambia-Tanzania 330kV interconnector were completed in 1998, these have now to been reviewed and updated1.

39. The Kenyan government will fund a complementary study on the viability of extending the Kenyan oil pipeline from Eldoret to Kampala in Uganda. Kenya is also financing the complementary study. These resources will be recouped from the private sector firm licensed to build and manage the pipeline. The European Investment Bank funded the first study, and the report was submitted to the two governments in 1999. Once implemented, the extension will result in a significant reduction in the cost of oil products in Uganda, Rwanda, and the eastern part of the Democratic Republic of Congo; all of which import refined oil products through Kenya. A consultant will review and update work that has so far been carried out, including a feasibility study carried out by an international consultant in May 1995, and also undertake a cost-benefit analysis of competing modes of transport2.

40. The OAU/AEC General Secretariat convened the meeting of African Energy Experts in Cairo, Egypt, from 22 to 25 May 2000. The meeting considered the proposal for the establishment of the African Energy Commission (AFREC) and reviewed the draft constitution of the Commission. The Conference of African Ministers of Energy held in Algiers, Algeria from 23 to 24 April 2001, considered the recommendations of the Cairo meeting and decided on the immediate establishment of the African Energy Commission. The Assembly of Heads States and Governments of the OAU, held in Lusaka, Zambia, from 9 to 10 July 2001, endorsed that decision. The Summit requested the OAU Secretary General to cooperate very closely with Algeria, the host of AFREC, and the Bureau of the Conference of African Ministers of Energy on the implementation of the provisions of the Convention and the speedy establishment of an interim structure of the Commission to enable it to begin its activities without delay.

41. The first US-Africa Energy Ministers meeting was convened by the Secretary of Energy of the United States of America in Tucson, Arizona, on 13-15 December 1999. The Ministers agreed to initiate a sustained co-operative effort through governmental leadership and participation of the private, and other sectors, including regional and sub-regional economic, intergovernmental, multilateral and non-governmental organisations, to support the growth of adequate, accessible, environmentally safe and sound, secure, and affordable energy supplies. The Ministers reaffirmed their commitment to putting in place policies and undertaking programmes that will enhance investment and partnerships in clean energy technologies and the efficient production and utilisation of traditional energy sources. and increase access to energy for Africa's people.

42. The African Energy Ministers and representatives of the United States Secretary of Energy met in Durban, South Africa, at the second Africa-U.S. Energy Ministers Meeting on December 11-15, 2001, to advance a co-operative partnership developed in the March 1999 U.S. -Africa Ministerial meeting, in Washington, D.C. The meeting was held under the auspices of the "Blueprint for U.S.-Africa Partnership" and in light of the joint statements agreed to at the Tucson Conference aimed at strengthening energy co-operation between the U.S and African countries. In this meeting, Ministers focused on policies and practices that promote economic development, address environmental concerns, encourage private investment, enhance regional integration, and increase access to energy to the people of Africa. Successful policies and practices would lead to the creation of a sustainable energy infrastructure in Africa in the 21st Century and would advance Africa's economic and social development.

43. The Ministers endorsed a Declaration on the Promotion of Sustainable Energy Development and Co-operation in Support of the Environment, confirming their agreement to implement sustainable energy policies and promote clean energy options. In addition, aware that private investment and partnership are crucial to meeting Africa's growing energy needs in the 21st Century, they issued a Declaration on the Implementation of Investment Principles for the Energy Sector.

44. As part of the process of preparation of the Ninth Session of the Commission for Sustainable Development (CSD-9), the United Nations Department of Economic and Social Affairs (UN-DESA), in collaboration with the United Nations Development Programme (UNDP) and the World Energy Council (WEC), decided in 1998 to undertake a global study aimed at assessing the world energy situation. African regional consultations were organised in Nairobi, Kenya, from 25 to 26 January 2000, to provide experts in energy from the Africa Region with an opportunity to review and comment on the World Assessment draft report. The experts were also requested to provide additional information specific to Africa, and identify and articulate options that are of particular relevance or importance to the region. Another High-Level Regional Meeting on Energy and Sustainable Development was also convened in Nairobi, Kenya, from 10 to 13 January 2001, to consider the revised draft report on the World Energy Assessment before its submission to the session of the Commission on Sustainable Development which was held at the United Nations Headquarters in New York in April 2001.

3.3. Water

45. One of the more specific recommendations of CNRST-1 was for ECA to implement the decisions and recommendations of the meeting of Chief Executives of African River/lake Basin Organisations (RBOs) organised by ECA in mid 1999. The decisions and recommendations of this meeting were numerous and were directed to both ECA, the RBOs and other partners.

46. To this effect, ECA, on its part, organised the 7th and the 8th annual meetings of the Interagency Group for Water in Africa in 2000 and 2001 respectively. All African RBOs were invited to these meetings. The seventh meeting was attended by, among others, the representatives of both the Zambezi River Basin Authority (ZRA) and the Niger River Basin Authority (NBA). ECA presented at this meeting a report on the decisions and recommendations of the earlier meeting of the RBO Chief Executives and urged the Interagency Group for Water in Africa member agencies to cooperate among themselves in the implementation of the RBO Chief Executives' meeting decisions.

47. The seventh Interagency Group for Water in Africa (IGWA) meeting decided that in order to bring the African RBOs in the mainstream of IGWA member agencies' activities, future meetings of the body should be held at selected RBO headquarters. One of the recommendations of the Chief Executives' meeting was to organise their meetings on a routine basis. The 7th IGWA meeting decided that if that is to be done, then the RBOs should finance their own participation at such meetings and should possibly also host them by rotation. Accordingly, the Niger Basin Authority offered to host the 8th annual meeting of IGWA at their headquarters in Niamey, Niger and all African RBOs were invited to the meeting. Unfortunately, none of these RBOs except the host NBA participated at the meeting.

48. In response to other recommendations of the RBO Chief Executives' meeting and the CNRST-1, ECA carried out the following activities in the water sector:

3.4. Science and Technology

49. CNRST-1 recommended that member States and ECA build capacities in the area of sustainable development of natural resources and also to define a strategic vision in the area of science and technology and the valorisation of natural resources in the context of globalisation. It further recommended that support mechanisms be put in place to facilitate the sharing and exchange of experiences and knowledge in the area of science and technology and natural resources. In addition, ECA was requested to acquire capacity to provide technical, advisory and training services to member States to enable them to set up appropriate mechanisms for commercialising research and linking research to industry.

50. In the area of science and technology, ECA's activities aim at assisting member States in building their scientific and technological capabilities to address Africa's development potential. As science and technology is cross-cutting and pervading all areas of the economy, responsibilities in each sector of activities (information and communication technology (ICT), agriculture, water, energy, mineral, women,... etc.) are diffused throughout ECA's Divisions. The small science and technology team situated in the Food Security and Sustainable Development Division (FSSDD) serves as the focal point of ECA in matters related to science and technology in general. The activities of the team thus cater for cross- cutting science and technology issues, with emphasis on food security and sustainability.

51. The activities aim at strengthening the capacity of member States in tackling regional and sub-regional issues in science and technology through the organisation of a regional forum, the analysis of key issues of interest to member States, advocacy, awareness raising, networking and technical co-operation. The activities also aims at strengthening international co-operation and inter-agency co-ordination, harmonisation and liaison with institutions and organisations concerned with science and technology in Africa.

52. The activities contribute to: (1) Increasing member States' awareness and commitment to apply science and technology to alleviate poverty and ensure food security and sustainable development; (2) Increasing co-operation between African countries in the area of science and technology; (3) Promoting effective science and technology policies and strategies for addressing the nexus issues; and (4) Sharing relevant information on science and technology and best practices and enhanced communication amongst science and technology.

53. In 2000-2001 the activities in the area of science and technology were seriously inhibited by the high-level of staff vacancies which are however being addressed through ECA's current recruitment campaign. The most important activities carried out during this period included:

4. Conclusion

54. The development, exploitation and utilisation of natural resources in today's environment requires the involvement, collaboration, and the establishment of partnerships between several stakeholders including governments, the private sector, bilateral and multilateral development agencies, local communities, NGOs and other partners. The extent of activities described in this report reflects, to a certain degree, these new developmental relationships and dynamics.

55. ECA has, within the resources made available to it, carried out advocacy and advisory activities, raised awareness, undertook policy analysis and provided capacity building services to African member States with the objective of strengthening regional co-operation, and improving the competitiveness of African natural resources products in a globalising world.

56. During the period under review, there has been a general decline in the prices of primary commodities, including minerals. The continent also witnessed a decrease in the inflow of foreign direct investment (FDI). In addition, the crisis in Asia reduced the appetite of international investors to invest in new and emerging markets where risks are perceived to be higher. The effects of globalisation and science and technology-based competitiveness made the situation more acute.

57. To improve the investment climate, Africa has recognised that it should:

58. This view point has been articulated in many of the conferences, meetings and workshops organised during the period under review, and in studies prepared by different stakeholders including ECA. Unfortunately, the infrastructure to promote greater utilisation of the African natural resources base, which should be based on a strong science and technology network, has not improved much. In that regard, most of the pronouncements on the need to harness science and technology could be translated into visible and measurable results. However, the awareness levels on what constitutes critical issues for natural resources development in Africa has been raised considerably.

59. In the future the focus should be on less ambitious but implementable programmes and projects. These should be aimed at improving the backward/forward and lateral linkages. The optimal framework to achieve these objectives should be based on an expanded co-operation between African countries. Since a natural resources-driven sustainable developments strategy requires support form a strong science and technology infrastructure member States and other stakeholders will need to provide additional and sustained support to the existing Centres of Excellence in science and technology and establish new ones where required.

1 The East African, Nairobi reported this on 23 April 2001.

2 These news were reported in the East African in 16 April 2001