Conference of African Ministers of Finance, Planning and Economic Development

Dr. Maxwell M. Mkwezalamba,
Commissioner For Economic Affairs
African Union Commission

Your Excellency, Mr. Youssouf Ouedraogo, Minister of State for Foreign Affairs and Regional Cooperation, Burkina Faso
Dr. Ngozi Okonjo Iweala, Minister of Finance of the Federal Republic of Nigeria and Chairperson of the Outgoing Bureau of the Cmmission
Mr. Adboulie Janneh, United Nations Under-Secretary General and Executive Secretary of the Economic Commission for Africa
Dr. Donald Kaberuka, President of the African Development Bank
Honouble Ministers of Finance, Planning, and Economic Development
Representatives of Regional and International Organizations
Excellencies Ambassadors and Members of the Diplomatic Corps
Distinguished Ladies and Gentlemen.

1. It is with great honour and privilege that I deliver a statement at this official opening of the Thirty-Ninth Session of the Commission/Conference of African Ministers of Finance, Planning and Economic Development on behalf of the Chairperson of the African Union Commission, His Excellency Prof. Alpha Oumar Konare. Prof. Konare could not come to attend this auspicious occasion owing to other pressing commitments. He, nonetheless, wishes the Twenty-Ninth Meeting of Ministers of Finance and Planning and Economic Development great success.

2. Before I go any further, please allow me, on behalf of His Excellency the Chairperson of the African Union Commission and indeed on my own behalf, to extend our profound and sincere gratitude to His Excellency Mr. Blaise Compaore, President of Burkina Faso; and the Government and the People of Burkina Faso for the tremendous efforts made in hosting this very important Conference. I would also like to express our thanks and gratitude for the warm and cordial welcome and hospitality accorded to us since our arrival in Ouagadougou and for the excellent facilities made at our disposal for the success of this Conference. Your Excellency may recall that it was only in March this year that the African Union Commission in collaboration with the Economic Commission for Africa organized another Meeting of Ministers in-charge of Integration Matters on the Rationalization of the Regional Economic Communities. I must admit that it feels good to be back in this beautiful city of Ouagadougou and I look forward to coming back, again.

3. The African Union appreciates its participation in the various Conferences of African Ministers of Finance, Planning and Economic Development organized by the Economic Commission for Africa (ECA). We find the meetings critical given their emphasis on the discussion of key development issues and challenges facing our Continent in our quest to promote sustainable development and poverty reduction in Africa.

4. The participation of the African Union in these meetings is clear testimony of the excellent working relationship that exists between our two organizations, the African Union and the ECA. In this respect, please allow me, on behalf of the Chairperson of the African Union Commission, to thank Mr. Abdoulie Janneh, the UN Under-Secretary General and ECA Executive Secretary, and his entire team for working closely with the African Union Commission (AUC), and also for providing technical support in many areas of mutual interest. We also seriously take note of ECA's proposed priority areas as outlined by Mr. Janneh in his statement, which include regional integration in support of the African Union Vision and Africa's special needs in particularly working with NEPAD:

5. Africa continues to face serious social, economic and political challenges. These include stagnating and low economic growth performance, declining per capita incomes, low levels of foreign direct investment (FDI), food insecurity, declining values of exports, high levels of external debt, HIV/AIDS pandemic, high unemployment rates and several social and political conflicts. The economic and social situation of our continent is the worst in the developing world. All the relevant available statistics indicate that Africa is the poorest continent in the developing world and may not attain the Millennium Development Goals (MDGs) by the target date of 2015 despite being rich in natural resources such as arable land, minerals, fisheries and forestry products.

6. Unemployment and underemployment continue to be pressing economic and social issues and considered, among others, as direct causes of poverty in Africa. High levels of employment are believed to be one of the most direct channels to achieve economic growth and reduce poverty. According to the available statistics, the average rate of unemployment in 2003 was around 10.5 per cent in Africa and the trend over the past decades shows that unemployment in Africa has not improved significantly.

7. Therefore, the theme chosen by the ECA for this Thirty-Ninth Session of the Commission/Conference of African Ministers of Finance, Planning and Economic Development is very timely and welcome to the African Union. Meeting the challenges of employment promotion and poverty reduction in Africa will not be achieved unless more determined and sustained efforts are put in place to address these twin problems through appropriate policies. Access to education, health, water and sanitation, nutrition, among others, have intrinsic value for people's well-being and are closely linked to issues of poverty and employment. In dealing with employment and poverty issues, it is, therefore, necessary to take a holistic and integrated approach.

8. According to the 10^th African Regional Meeting of the International Labour Organisation (ILO), which was held in Addis Ababa, Ethiopia, in December 2003, about three hundred million people in Africa are living in extreme poverty. This tragic waste of human potential is mainly caused by rampant unemployment, underemployment and low productivity of the exiting jobs, particularly in agriculture, the rural sector and the urban informal economy, which are the main sources of employment in most African economies.

9. Further, it estimated that an average economic growth rate of 7 percent is required to lift half of the African population out of poverty and accelerate the achievement of the MDGs by 2015. Unfortunately, many African economies are far from attaining this economic growth rate. For instance, according to the ECA Annual Report 2006, only 4 countries in Africa registered average growth rates of more than 7 percent between 1998 and 2005. This poses a big challenge to our African leaders and policy makers.

10. The issue of women and youth employment needs not be overemphasised. The extraordinary entrepreneurial spirit of our African women and the creativity of Africa's youth constitute enormous development potentials that, if properly utilised, could contribute effectively to poverty reduction and the achievement of the MDGs. Issues of youth unemployment and underemployment, if not addressed, are invariably the root causes of political instability and civil unrest and crime, among others. It is, therefore, high time that African leaders put more emphasis than ever before on youth employment.

11. It is also imperative that Africa focuses on the creation of large and competitive markets to attract investments in the productive sectors of the economy. However, the creation of large and integrated markets must also incorporate key social targets and goals including, among others goals, respect for basic human rights, the overall unemployment rate, poverty reduction, social protection and security, and educational opportunities.

12. As we mainstream employment in our national and continental development agendas, there is need to recognize the important role of small and medium scale enterprises in employment creation. In this regard, we wish to propose putting in place business linkages forum, linking small producers and big companies. The later will procure from the former and help them meet the required standards for exports.

13. Your Excellencies may recall that African Heads of State and Government took a Decision at their 2^nd Ordinary Session held in Maputo, Mozambique, in July 2002 requesting the African Union Commission to convene an Extraordinary Summit on Employment and Poverty Alleviation. Following this Decision, an Extraordinary Summit was held, here, in Ouagadougou, Burkina Faso, in 2004, specifically to address the challenges of poverty, unemployment and underemployment in the Continent. During this Extraordinary Summit a Declaration, Plan of Action and Follow-up Mechanism were adopted, calling upon Member States to place employment at the centre of their economic and social policies.

14. The question is: What has happened since the Ouagadougou Extra-Ordinary Summit in terms of implementation of the Decisions. In pursuing its mandate, the African Union Commission has engaged itself in a number of meetings which included: (i) African Union (AU)/ILO consultative meeting held in Addis Ababa, Ethiopia; and (ii) the Fourth Ordinary Session of the Labour and Social Affairs Commission on Employment and Poverty in Cairo, Egypt, from 22 to 27 April, 2006.

15. In monitoring the impact of the Ouagadougou Declaration, the African Union Commission sent questionnaires to Members States and the Regional Economic Communities (RECs). Our analysis based on information collected revealed that a number of countries had made tremendous progress in mainstreaming the Declaration into their national strategies and national budgets. The African Union, therefore, believes that the Ouagadougou Declaration has brought back employment to the table of decision makers. From the reports received, it is clear that employment issues are no longer the preoccupation of only Ministers of Labour but are also included in national goals.

16. Please allow me to take this opportunity to thank the Member States and RECs that responded to our questionnaire, thereby enabling us to monitor progress in the implementation of the Ouagadougou commitments. We wish to urge those that have not done so to return their completed questionnaires to the AU Commission as soon as possible to enable the Commission take the matter to the AU Summit to be held in Banjul, the Gambia, in July this year.

17. Further, the African Union Commission is undertaking several other initiatives with a bearing on the Ouagadougou Declaration. For instance, given the role of statistics in policy formulation and the need for reliable, timely, and good quality statistics, the African Union Commission is setting-up a Statistical Unit to collect, analyse and harmonise social and economic statistics in Africa. In doing this, it is collaborating with Member States, the ECA and the African Development Bank. Furthermore, beginning this year, it will be organising, once a year, an African Private Sector Forum, as mandated by the African Union Assembly of January 2005 in Abuja, Nigeria. The Forum will, among others, prepare an African Private Sector Development Strategy and Action Plan. In addition, the African Union Commission is in the process of developing a continental-wide micro-finance policy and action plan. In our view, these are initiatives that require your support.

18. The work on employment done by the international organisations and Partners needs to be commended. A number of international organizations are providing valuable support to the work currently undertaken by the African Union regarding employment. One of our biggest supporters has been the ILO, whose interventions have been at all levels - national, regional, and continental.

19. Let me conclude by taking this opportunity to commend Member States, through you Honourable Ministers, for the tremendous work done in your respective countries since the Ouagadougou Extra-Ordinary Summit. Further, I wish to thank international organizations and partners that have supported us in various ways in implementing the Ouagadougou Declaration and Action Plan. Finally, I would fail in my duty if I do not, one again, commend the ECA for having chosen "Meeting the Challenge of Employment in Africa" as the theme of this Thirty-Ninth Session of the Commission/Conference of Ministers of Finance, Planning and Economic Development. The African Union will, on its part, continue to play its coordination role in following up on the Ouagadougou Declaration and bringing to you issues requiring your attention.







	Opening Statement Twenty-Fifth Meeting of Ministers of Finance, Planning and Economic Development By Dr. Maxwell M. Mkwezalamba, Commissioner For Economic Affairs African Union Commission Ouagadougou, Burkina Faso: 13th To 15th April, 2006 Your Excellency, Mr. Youssouf Ouedraogo, Minister of State for Foreign Affairs and Regional Cooperation, Burkina Faso Dr. Ngozi Okonjo Iweala, Minister of Finance of the Federal Republic of Nigeria and Chairperson of the Outgoing Bureau of the Cmmission Mr. Adboulie Janneh, United Nations Under-Secretary General and Executive Secretary of the Economic Commission for Africa Dr. Donald Kaberuka, President of the African Development Bank Honouble Ministers of Finance, Planning, and Economic Development Representatives of Regional and International Organizations Excellencies Ambassadors and Members of the Diplomatic Corps Distinguished Ladies and Gentlemen. 1. It is with great honour and privilege that I deliver a statement at this official opening of the Thirty-Ninth Session of the Commission/Conference of African Ministers of Finance, Planning and Economic Development on behalf of the Chairperson of the African Union Commission, His Excellency Prof. Alpha Oumar Konare. Prof. Konare could not come to attend this auspicious occasion owing to other pressing commitments. He, nonetheless, wishes the Twenty-Ninth Meeting of Ministers of Finance and Planning and Economic Development great success. 2. Before I go any further, please allow me, on behalf of His Excellency the Chairperson of the African Union Commission and indeed on my own behalf, to extend our profound and sincere gratitude to His Excellency Mr. Blaise Compaore, President of Burkina Faso; and the Government and the People of Burkina Faso for the tremendous efforts made in hosting this very important Conference. I would also like to express our thanks and gratitude for the warm and cordial welcome and hospitality accorded to us since our arrival in Ouagadougou and for the excellent facilities made at our disposal for the success of this Conference. Your Excellency may recall that it was only in March this year that the African Union Commission in collaboration with the Economic Commission for Africa organized another Meeting of Ministers in-charge of Integration Matters on the Rationalization of the Regional Economic Communities. I must admit that it feels good to be back in this beautiful city of Ouagadougou and I look forward to coming back, again. Chairperson Your Excellencies Distinguished Ladies and Gentlemen. 3. The African Union appreciates its participation in the various Conferences of African Ministers of Finance, Planning and Economic Development organized by the Economic Commission for Africa (ECA). We find the meetings critical given their emphasis on the discussion of key development issues and challenges facing our Continent in our quest to promote sustainable development and poverty reduction in Africa. 4. The participation of the African Union in these meetings is clear testimony of the excellent working relationship that exists between our two organizations, the African Union and the ECA. In this respect, please allow me, on behalf of the Chairperson of the African Union Commission, to thank Mr. Abdoulie Janneh, the UN Under-Secretary General and ECA Executive Secretary, and his entire team for working closely with the African Union Commission (AUC), and also for providing technical support in many areas of mutual interest. We also seriously take note of ECA's proposed priority areas as outlined by Mr. Janneh in his statement, which include regional integration in support of the African Union Vision and Africa's special needs in particularly working with NEPAD: 5. Africa continues to face serious social, economic and political challenges. These include stagnating and low economic growth performance, declining per capita incomes, low levels of foreign direct investment (FDI), food insecurity, declining values of exports, high levels of external debt, HIV/AIDS pandemic, high unemployment rates and several social and political conflicts. The economic and social situation of our continent is the worst in the developing world. All the relevant available statistics indicate that Africa is the poorest continent in the developing world and may not attain the Millennium Development Goals (MDGs) by the target date of 2015 despite being rich in natural resources such as arable land, minerals, fisheries and forestry products. 6. Unemployment and underemployment continue to be pressing economic and social issues and considered, among others, as direct causes of poverty in Africa. High levels of employment are believed to be one of the most direct channels to achieve economic growth and reduce poverty. According to the available statistics, the average rate of unemployment in 2003 was around 10.5 per cent in Africa and the trend over the past decades shows that unemployment in Africa has not improved significantly. 7. Therefore, the theme chosen by the ECA for this Thirty-Ninth Session of the Commission/Conference of African Ministers of Finance, Planning and Economic Development is very timely and welcome to the African Union. Meeting the challenges of employment promotion and poverty reduction in Africa will not be achieved unless more determined and sustained efforts are put in place to address these twin problems through appropriate policies. Access to education, health, water and sanitation, nutrition, among others, have intrinsic value for people's well-being and are closely linked to issues of poverty and employment. In dealing with employment and poverty issues, it is, therefore, necessary to take a holistic and integrated approach. Chairperson Excellencies Distinguished Ladies and Gentlemen. 8. According to the 10^th African Regional Meeting of the International Labour Organisation (ILO), which was held in Addis Ababa, Ethiopia, in December 2003, about three hundred million people in Africa are living in extreme poverty. This tragic waste of human potential is mainly caused by rampant unemployment, underemployment and low productivity of the exiting jobs, particularly in agriculture, the rural sector and the urban informal economy, which are the main sources of employment in most African economies. 9. Further, it estimated that an average economic growth rate of 7 percent is required to lift half of the African population out of poverty and accelerate the achievement of the MDGs by 2015. Unfortunately, many African economies are far from attaining this economic growth rate. For instance, according to the ECA Annual Report 2006, only 4 countries in Africa registered average growth rates of more than 7 percent between 1998 and 2005. This poses a big challenge to our African leaders and policy makers. 10. The issue of women and youth employment needs not be overemphasised. The extraordinary entrepreneurial spirit of our African women and the creativity of Africa's youth constitute enormous development potentials that, if properly utilised, could contribute effectively to poverty reduction and the achievement of the MDGs. Issues of youth unemployment and underemployment, if not addressed, are invariably the root causes of political instability and civil unrest and crime, among others. It is, therefore, high time that African leaders put more emphasis than ever before on youth employment. 11. It is also imperative that Africa focuses on the creation of large and competitive markets to attract investments in the productive sectors of the economy. However, the creation of large and integrated markets must also incorporate key social targets and goals including, among others goals, respect for basic human rights, the overall unemployment rate, poverty reduction, social protection and security, and educational opportunities. 12. As we mainstream employment in our national and continental development agendas, there is need to recognize the important role of small and medium scale enterprises in employment creation. In this regard, we wish to propose putting in place business linkages forum, linking small producers and big companies. The later will procure from the former and help them meet the required standards for exports. 13. Your Excellencies may recall that African Heads of State and Government took a Decision at their 2^nd Ordinary Session held in Maputo, Mozambique, in July 2002 requesting the African Union Commission to convene an Extraordinary Summit on Employment and Poverty Alleviation. Following this Decision, an Extraordinary Summit was held, here, in Ouagadougou, Burkina Faso, in 2004, specifically to address the challenges of poverty, unemployment and underemployment in the Continent. During this Extraordinary Summit a Declaration, Plan of Action and Follow-up Mechanism were adopted, calling upon Member States to place employment at the centre of their economic and social policies. 14. The question is: What has happened since the Ouagadougou Extra-Ordinary Summit in terms of implementation of the Decisions. In pursuing its mandate, the African Union Commission has engaged itself in a number of meetings which included: (i) African Union (AU)/ILO consultative meeting held in Addis Ababa, Ethiopia; and (ii) the Fourth Ordinary Session of the Labour and Social Affairs Commission on Employment and Poverty in Cairo, Egypt, from 22 to 27 April, 2006. 15. In monitoring the impact of the Ouagadougou Declaration, the African Union Commission sent questionnaires to Members States and the Regional Economic Communities (RECs). Our analysis based on information collected revealed that a number of countries had made tremendous progress in mainstreaming the Declaration into their national strategies and national budgets. The African Union, therefore, believes that the Ouagadougou Declaration has brought back employment to the table of decision makers. From the reports received, it is clear that employment issues are no longer the preoccupation of only Ministers of Labour but are also included in national goals. 16. Please allow me to take this opportunity to thank the Member States and RECs that responded to our questionnaire, thereby enabling us to monitor progress in the implementation of the Ouagadougou commitments. We wish to urge those that have not done so to return their completed questionnaires to the AU Commission as soon as possible to enable the Commission take the matter to the AU Summit to be held in Banjul, the Gambia, in July this year. 17. Further, the African Union Commission is undertaking several other initiatives with a bearing on the Ouagadougou Declaration. For instance, given the role of statistics in policy formulation and the need for reliable, timely, and good quality statistics, the African Union Commission is setting-up a Statistical Unit to collect, analyse and harmonise social and economic statistics in Africa. In doing this, it is collaborating with Member States, the ECA and the African Development Bank. Furthermore, beginning this year, it will be organising, once a year, an African Private Sector Forum, as mandated by the African Union Assembly of January 2005 in Abuja, Nigeria. The Forum will, among others, prepare an African Private Sector Development Strategy and Action Plan. In addition, the African Union Commission is in the process of developing a continental-wide micro-finance policy and action plan. In our view, these are initiatives that require your support. Your Excellencies Distinguished Guests Ladies and Gentlemen 18. The work on employment done by the international organisations and Partners needs to be commended. A number of international organizations are providing valuable support to the work currently undertaken by the African Union regarding employment. One of our biggest supporters has been the ILO, whose interventions have been at all levels - national, regional, and continental. 19. Let me conclude by taking this opportunity to commend Member States, through you Honourable Ministers, for the tremendous work done in your respective countries since the Ouagadougou Extra-Ordinary Summit. Further, I wish to thank international organizations and partners that have supported us in various ways in implementing the Ouagadougou Declaration and Action Plan. Finally, I would fail in my duty if I do not, one again, commend the ECA for having chosen "Meeting the Challenge of Employment in Africa" as the theme of this Thirty-Ninth Session of the Commission/Conference of Ministers of Finance, Planning and Economic Development. The African Union will, on its part, continue to play its coordination role in following up on the Ouagadougou Declaration and bringing to you issues requiring your attention. 20. I thank you for your kind attention and I wish you successful and fruitful deliberations.