Documents

Report of the 3rd meeting of the Africa Partnership Forum

4-5 October 2004
Washington DC, United States of America

SECTION A

INTRODUCTION

1. The 3^rd Africa Partnership Forum took place in Washington DC on 4-5 October 2004. The meeting was co-chaired by the Representative of NEPAD (Professor Wiseman Nkuhlu, the Personal Representative of the Government of South Africa) and the Representative of OECD (Mr. Paul Frix, the Representative of Belgium.) The liaison representatives from the African Union and the G8 assisted in the chairing of the meetings. Participants from Africa included the Personal Representatives of the NEPAD Heads of State and Government Implementation Committee (HSGIC), African Union (AU) Commissioners, Heads or representatives of the Regional Economic Communities (RECs) and the Representative of the African Development Bank (ADB). Development partners were represented by the Personal Representatives of the Heads of State and Government of G8 Members, 11 non-G8 Organization for Economic Co-operation and Development [OECD] countries, United Nations agencies, World Bank [WB], the International Monetary Fund [IMF], the World Trade Organization [WTO] and the OECD. The full list of participants is attached for reference.

Welcome and Opening by Ms Constance Newman, Under-Secretary of State for Africa, USA

2. Ms. Newman extended a warm welcome to all participants and expressed hope that outcomes of the meeting would be fruitful. She reminded the meeting that the topics for the third APF meeting were food security, peace and security as well as private sector growth. She encouraged participants to provide an honest assessment of what has and what has not been achieved since the last APF in Maputo in April 2004. Ms. Newman also reminded the meeting of some of the key objectives of NEPAD, namely the eradication of poverty and the acceleration of women empowerment.

Opening Remarks by Prof. Wiseman Nkuhlu, Chairman of the NEPAD Steering Committee

3. Prof. Wiseman Nkuhlu expressed appreciation for the positive responses by

partners to the crisis in Darfur. He informed the meeting that NEPAD had prepared background papers on the three agenda items of food security and agriculture, peace and security (prepared by the AU Commission), and private sector.

4. He expressed hope that the meeting would agree on decisive action to be taken on all the agenda items, and called on the Forum to identify strategic interventions for action at a high political level, as well as define their implications of such interventions in practical terms. In this regard, he cited the establishment of the project preparation facility as key to making a breakthrough in implementing infrastructure projects; and the setting up of an APRM trust fund to facilitate the implementation of the APRM.

5. Prof. Nkuhlu informed the meeting that the AU continues to demonstrate commitment to the principles of its Constitutive Act, as elaborated in NEPAD, as well as the need to enhance the effectiveness of African institutions. He continued to explain how African leaders have reconfirmed their commitment to NEPAD, for example, during the 3^rd AU General Assembly held in July 2004, where all Heads of States attending the AU Summit also participated in the NEPAD HSGIC. As such, Prof. Nkuhlu emphasised that there are signs of a high level expectations for NEPAD to deliver. He added that the enthusiasm of Heads of State is also shared by ministers of various sectors.

6. Prof. Nkuhlu called on partners to remain focused, and to note the achievements being made on the continent, such as the many countries which are now undertaking far reaching reforms, and registering economic growth. He cited delivery as the biggest challenge facing partners. In concluding his welcoming remarks, Prof. Nkuhlu apologised for the lateness of submission of papers, and explained that this was due to the need to be clearer and more concrete on what NEPAD wanted to put forward to the meeting.

Opening Remarks by Belgian Co-Chair, Mr. Paul Frix

7. Mr. Frix, the Co-Chair from Belgian, described the African Partnership Forum as a platform on which to elaborate the basis of cooperation and partnership. He noted that the workings of the APF and how it should move forward was first tested in Maputo, and that it should now respond adequately to the specific mandate of the forum.

8. He noted that as the agenda item on private sector development was minor to the overall discussions of the meeting, it should be given more focus in future. Citing NEPAD as a unique opportunity for Africa's development, Mr Frisk noted the importance of identifying roles and responsibilities for all partners and stakeholders.

Opening Remarks by Amb. Aluko-Olukun of Nigeria, representing the African Union

9. Amb. Oluko informed the meeting that President Obasanjo had expressed his gratitude for the invitation to attend the G8 Summit of July 2004 in Sea Island. He also thanked partners for progress on debt relief discussions. He reminded the meeting that NEPAD is a "work in progress," but one gaining credibility and having the capacity to bring stakeholders together. He also said that NEPAD represents a long-term sustainable development framework for Africa, and not a quick fix. The Ambassador emphasised the need to move from theory to practice in order to demonstrate the credibility of NEPAD, noting that the APF has a unique role to play in this regard.

10. Amb. Oluko called on the meeting to also focus on the MDGs, which fit perfectly within the NEPAD framework. He said that all other processes must add value, not dissipate from ongoing NEPAD efforts. However, he noted that the challenge at continental level remains that of capacity and resources constraints.

Opening by the Deputy Secretary of State, Mr Richard Armitage

11. Mr. Armitage noted that the 3^rd APF meeting was being held at a busy time

for the State Department due to the upcoming USA elections. He cited the elections as a sign of a flourishing democracy, and pointed to the growing number of African countries which are experiencing and establishing political stability, rule of law, and transparency. He informed the meeting that the United States Government is committed to the shared values of democracy with Africa.

12. In conclusion, Mr. Armitage remarked that the principles of NEPAD are important for eradicating poverty in Africa; and that apart from humanitarian imperatives; the success of Africa is in America's best interest reasons of security, and common prosperity. He enthused that NEPAD captures the hopes of the continent, and the USA is committed to supporting Africa's strategic vision, through initiatives such as the Millennium Challenge Account and the Africa Growth and Opportunities Act (AGOA). He wished the forum successful deliberations.

SECTION B

PRESENTATION ON FOOD SECURITY AND AGRICULTURE

13. The NEPAD presentation on agriculture and food security highlighted the fact that the Comprehensive Africa Agricultural Development Plan (CAADP) is a holistic plan to address issues of agricultural growth and food security on the African continent. The presentation highlighted the fact that there are emerging agricultural success stories in Africa which could be harnessed to enhance agricultural growth and food security. Partners were consequently called upon to support, financially and technically, to harness these Africa success stories specifically in the areas of:

• The PAN Africa Nerica Rice initiative

• The Cassava Initiative

• The Food Reserve Systems

14. NEPAD called for partner support for the implementation of the CAADP roadmap that would lead towards the implementation of its identified priority programmes. NEPAD specifically highlighted the need for the establishment of a project preparation facility which would enable national governments, RECs, and Civil Society Organisations (CSOs) and the private sector to access funding for the preparation of investment programmes.

15. The meeting noted the importance of agriculture to Africa's development, as evidenced by the high-level political commitment within the AU, namely through the 10% national budgetary allocation to Agriculture for improving agricultural productivity.

16. The meeting also noted the importance of the participation of RECs, as the

building blocks of the AU and implementers of NEPAD programmes at the sub-regional level, to all APF meetings.

17. Canada announced its US$750 000 contribution to the APRM Trust fund under the United Nations Development Programme (UNDP), and also informed the meeting of its increased support to the school feeding programme under FAO. In addition, Canada also announced its contributions of US$5 million to fight the locust swarm in West Africa, as well as a further US$ 2million to the World Health organisation (WHO) to stem the tide of HIV/AIDS.

18. There was a strong call for support for the implementation of CAADP, with its four pillars, as the foundation for the launch of an African Agricultural revolution. The meeting highlighted the need to identify and implement strategic interventions for the acceleration of reforms in each of the CAADP pillars. There was general support by partners on the need to develop capacity, and increase investments in the agricultural sector in Africa. There was also the recognition that much more attention and resources need to be directed to research and development, namely trough the setting up and strengthening of regional and sub regional centres of excellence

19. There was a call for the integration of women and gender issues, land reform, and HIV/AIDS and Nutrition in the implementation of CAADP and its four pillars.

20. The meeting noted the critical role of women in agriculture in Africa, and the need to improve their access to finance, and property rights.

21. The meeting agreed that there is need to have consensus on what must be done, how it is to be done and the sequencing of these actions. The meeting noted that key to these actions is that policy and regulatory actions can work hand in hand in support of safety nets and make markets more open and competitive. The meeting discussed the role of governments in focusing on reducing market risks, and determining priorities and public expenditure.

22. The US government informed the meeting of its commitment to increase its support to agricultural science and technology, support to Public-private-Partnerships (PPP's), which should be a key component of the regional planning meetings.

23. The meeting was informed that most RECs are taking action to create free trade areas in their respective sub-regions and that they now need support to enable member states to take full advantage of the newly created markets, particularly in the area of agriculture. The meeting was further informed that some of the REC programmes also covered trade facilitation, gender equality, HIV/AIDS and its impact on food security; and land reform.

24. The meeting was reminded that most partners are aware of Africa's problems, as well as its potential, and that reducing hunger is not only a moral imperative, but also makes economic sense. It was therefore noted that Africa is intensifying its efforts in promoting agribusiness.

25. Japan informed the meeting of its commitment to promoting NERICA, for which it has confidence that it should be introduced to Africa (due to its high yield and disease resistant). Japan also informed partners that it would like to increase its contribution to capacity building and budgetary contributions to national governments. The meeting was further informed that Japan Investment Conference scheduled for November 2004 will have a section on agro-business in Africa.

26. It was noted that previously, action in agriculture was not related to policy formulation at the national level and may have been part of the reason it did not work; hence the need to bring food security and agriculture in the centre of Poverty reduction Strategy Papers (PRSPS). It was noted that to reach the Millennium Development Goal on hunger by 2015 agricultural production must be raised by 6% per year. This has the greatest likelihood of happening with the reduction in conflict, good governance, land reform, reduction of trade barriers and the empowerment of women.

27. The OECD offered its support in the area of policy advice to Africa, including policy dialogue on the role of agriculture in development.

28. The meeting noted that underlying constraint to agricultural growth and food security is institutional and capacity building. The African Capacity Building foundation (ACBF) highlighted its contribution to agriculture and food security on the African continent, which includes supporting Masters Degrees in Agricultural Economics, and supporting policy units in over 35 African countries.

29. France informed the meeting that it is beginning to "NEPADISE" its development aid system and that it will do it utmost to support NEPAD, particularly in the areas of water management and land tenure, with specific reference to MDGs; and that it is ready to get involved, together with similarly interested parties, in the area of research.

Possible follow-up actions

• Update on progress on the implementation of the AU Assembly decision to allocate 10% national budget to agriculture.

• Report on the extent to which OECD partners were meeting their commitments to re-invest in agriculture.

• Donor coordination in the agriculture sector

• Determine the extent to which infrastructure development is key to improving the development of the agriculture sector

• Facilitation of provision of adequate nutrition as part of fighting HIV/AIDS.

• Update on actions, not contingent upon partners, being taken by Africans to implement NEPAD, and CAADP in particular.

• Update on what Africa is doing to eliminate trade barriers.

• Update on what the NEPAD partners are doing to eliminate trade barriers

• Strategic interventions in the area of trade facilitation and mutual learning, and ensuring a market driven agricultural economy.

• Food aid programmes should consider the procurement of local food, or food from neighbouring countries as a way of creating markets.

• Exploring the implementation of regional approaches to food security, instead of the national approach.

• Understanding why the agriculture revolution that took place in Asia not happening in Africa?

• A report on the TICAD-Asia Investment conference in November 2004 to be made to the next meeting of the forum.

• Impact of HIV/AIDS on Agriculture

• Report on the reasons Africa and its partners were not prepared for the locust problem and develop strategies to avoid this type of emergency in the future.

• Environmental aspects of agriculture

• NEPAD will respond to all questions in writing

30. The meeting agreed that African countries and development partners would collaborate more intensely for the implementation of CAADP and its four pillars, and associated programmes.

SECTION C

PEACE AND SECURITY

31. Amb. Djinnit's presentation on peace and security was followed by input from UN OSA, highlighting the role of the UN in peace keeping in Africa, particularly in Burundi and Darfur.

32. The meeting noted the importance of preventive measures to conflict, instead of using a fire fighting approach. The meeting also commended the AU on its efforts in conflict resolution and peace building since the last APF meeting.

33. The meeting further noted the importance of effective early warning systems, democratic processes, rule of law, DRR, and the critical role they play in sustaining development efforts, particularly in the context of implementing NEPAD. There is therefore a need for long-term financing of DRR of to prevent countries slipping back into conflict. Also, Peace agreements should deal with judiciary and security sector reform - reform of the police and, if local circumstances request it, transitory measures should be taken to make sure that the salary of the national security and armed forces is paid on a regular basis.

34. Two fundamental factors were identified as being critical to sustained peace and security on the continent, namely;

• Capacity building: need to strike a balance between long term peace keeping, and short term capacity requirements. Support should be in response to priorities of African organisations including democratic institutions, and countries, which should go beyond vision and should translate into costed programmes, which will guide partners. Member states also need to contribute to peace efforts, instead of over-reliance on partners. However, it is important to note that building institutions takes time, effort, money, and good will from all partners.

• Donor coordination: need coordination to maximise impact of support.

35. There was a high degree of agreement that something concrete had to be done to address the crisis in Darfur, and also ensure that financial resources were mobilised for the deployment of troops to Darfur. There was a call for urgent action to finance credible intervention in Darfur. It was the belief of some that the African Union's mission in Darfur will be a test - fair or not. There was presented as a question as to whether the future will require a UN "blue helmeted" operation or whether a "coalition of the willing" suffice.

36. Italy briefed the meeting on its activities in the area of training of African

soldiers, and condemned the role of mercenaries in Africa.

37. Belgium recalled its action in the DRC which aim at:

• facilitating the demobilization process and resettlement of former combatants;

• training two new brigades and training the trainers for the new national army;

• Attention was drawn on this occasion on the necessity to make sure that the wages of the military in countries emerging from conflict are paid on a regular basis to avoid resumption of violence and insecurity

Possible Follow-up Actions

• AUC should convene a round table to assess the G8 commitments of Kananaskis, and establish what has been achieved (all APF members should be invited).

• The meeting noted the relevance of shared river basins as source of conflict and called for increased efforts to strengthen the capacity of affected countries to addressing the challenges of shared water basins.

• Some RECs, such as ECOWAS, have been mandated to address peace and security in their respective sub-regions. Partners may want to assist RECs to restructure themselves to play this important role, rather than intervene during emergency situations.

38. There was strong support from partners for the AU and the G8 partners to work more closely to speed up the establishment of a standby force and peace support operations.

SECTION D

PRESENTATION ON PRIVATE SECTOR

39. Ambassador Aluko-Olokun reiterated the pivotal role of the private sector in

Africa's development. He noted that Africans have long recognized the need for private sector development as an antidote to poverty eradication, and provided comprehensive list of constraints to private sector growth in Africa, key amongst them being the shortage of capital, and capacity.

40. Mr. Paul Frix, Co-Chair, making comments on the note on the "Private Sector Development Priorities within NEPAD: a few Paths for the Future" also noted that private sector development is a cross-cutting issue and is necessary in order to meet the Millennium Development Goals, insure dynamic agricultural and agro business development, consolidate peace processes and promote economic integration at national, regional and global level. Among the prerequisites to create a favourable investment climate he mentioned the:

• Implementation of sustainable and appropriate macroeconomic policies and complementary structural adjustment measures taking into account of the "supply side" problems that many African enterprises face before being able to take advantage of marked openings. This imply namely t the development of efficient local and regional BDS markets, business associations and networks, mainly in the agricultural sector and for the SMEs;

• Development of complementarities and cooperation between financial and non financial providers of services to enterprises, possibly through multi-donator platforms of facilitation at regional and local levels. Coupled with the use of new information technologies and intensified enterprises networking this approach should help to develop more easily fruitful N-S and S-S inter-enterprises partnerships.

41. The meeting noted the progress being made by African countries to remove some of the barriers to private sector growth, and called on development partners to support these efforts, particularly in the area of creation of PPPs; developing a conducive international trading regime; fair monetary systems, legislative and institutional capacity, including the taxation systems; regional integration, encouraging private sector reform to improve the quality of service; imaging of Africa and the perception of risk; and building financial capital markets.

42. The presentation called on development partners to support the Investment Climate Facility (ICF) initiative, as well as the various NEPAD programmes aimed at enhancing the business climate, such as access to energy and transport, ICTs, and appropriate technology.

43. The meeting underscored the need for PPPs. It also noted the important role of trade facilitation services in private sector growth, as well as the need to develop networks of financial and business development service providers.

Possible Follow-up Actions

44. The following actions were noted as key in addressing private sector growth in Africa:

• Analyze best practices in countries that are making progress in private sector growth, and identifying what could be done to replicate these best practices in other countries.

• Prioritize agro-industry as a cross cutting sector to underpin private sector growth in ways that would allow them to benefit from their comparative advantage in this sector, especially technology development, as well as access to capital.

• Improve the business environment and risk management, and change the perception of risk in Africa.

• Design policies and measures aiming at the development of efficient local and regional BDS markets).

• Support Miss supporting the services to SMEs to scale up operations

  • Identify ways for countries to create entrepreneurial human capacity for business development

  • Work together to promote business services that are appropriate to the needs of their countries.

  • Effective use of technology for agro-industry as an important tool to promoting the competitiveness of the sector.

  • Groom human capital for international competitiveness.

  • Create regional and country-specific joint programs and projects for promoting the private sector

  • Apply the results of research to address private sector development challenges

  • Move from research to creating industrial possibilities

  • Promote and undertake training is a important requirement

45. The meeting noted the importance of focusing and addressing human capacity, physical and financial infrastructure, in order to reduce the cost of doing business in Africa. The meeting agreed that government has a role to play in making investment opportunities known, creating entrepreneurial opportunities, and an environment for private sector led, and market driven economies. New types of efficient and transparent PPP approaches in the sector should be identified and developed jointly by governments ,local and regional authorities business associations, and specialized aid agencies

SECTION E

PROGRESS ON THE IMPLEMENTATION OF NEPAD

46. Prof. Nkuhlu gave an overview of progress in the implementation of NEPAD. He noted the passion with which African leaders continue to champion NEPAD, as a programme of the AU. He reiterated the growing interest in NEPAD by all African leaders, as evidenced by their participation in the last meeting of the Heads of State and Government Implementation Committee (HSGIC) in which all Heads of State attending the Summit attended.

47. He cited growing interest in, and support to NEPAD by the private sector, namely, the NEPAD Business Group, the Commonwealth Business Council. He also informed the meeting that NEPAD continues to interact with civil society, and convenes civil society forums on the margins of the AU Summit, and that a CSO and Gender Advisor has been appointed at the NEPAD Secretariat.

48. Prof. Nkuhlu reported that African countries have contributed more than U$12 million to the core budget of NEPAD and the costs of the Secretariat. He also informed the members that the NEPAD Secretariat in collaboration with UNDP has set up the APRM trust fund and an account established with an initial contribution of US$750,000.

49. The meeting was informed that since the last APF meeting the number of countries who had acceded to the APRM had increased from 16 to 24 and this number is expected to increase. Reviews had already commenced in 4 countries. The meeting was encouraged by these developments.

50. Prof. Nkuhlu reported that an APRM Trust Fund had been established to address the urgent need to speed up country reviews, and called on partners to support the Fund.

51. Prof. Nkuhlu thanked Canada for its announcement, in the meeting, to contribute US$750 000 to the APRM Trust Fund.

52. He further invited partners to a NEPAD Multi-Stakeholder Dialogue to be held in 22-23 October 2004.

53. The ADB briefed the meeting on its role in support of NEPAD, particularly in implementing the infrastructure short term action plan (and corporate governance, under the APRM.

54. The meeting was briefed of the ongoing work of the OECD in the area of investment climate and its program to assist African countries to achieve tax harmonization to reduce harmful tax competition and double taxation

SECTION F

THE UK COMMISSION FOR AFRICA

55. Mr. Hilary Ben informed the meeting that Prime Minister Blair has decided to focus on two priorities in the coming year: Climate Change and Africa. The meeting was informed that there are emerging conclusions from the work of the UK Commission for Africa, but the Commissioners have not yet decided on which ones they will give prominence. The meeting was informed that the Commission was having its second meeting on 8-9 October 2004 in Addis Ababa and that an update on the outcomes of that meeting could be circulated to all partners. Partners were invited to submit to Mr. Ben any issues which they felt could be dealt with at the Commission level.

56. The meeting noted that for the first time Africans are taking charge of their destiny through NEPAD, even though there are challenges to be overcome, and that follow-up by partners was consistent, as evidenced by the APF. It is therefore important that any new initiatives build on NEPAD, and compliment it, rather than overlap or detract from it.

SECTION G

ROLE OF APF

57. The meeting was reminded that the APF is not an implementing or pledging forum but rather:

• Its role should be to focus on identifying strategic issues that have impact on the accelerated implementation of NEPAD. One of the challenges ahead is also to help the NEPAD process to become an appropriate framework for donors harmonization and alignment on African priorities at continental and regional levels

• The Forum can add value by coordinating the work of partners in Africa. The added value of the forum should be measurable. Partners should be able to identify its exact role. A closer relationship between the NEPAD Secretariat and the OECD could provide mutual benefits.

• It is important that the APF discussions are frank and honest, with each side recognising the other's limitations. The challenge is to work within the diversity of the limitations of the group. It is important that each side recognises its own weaknesses.

• It is important that the Forum remains dynamic. Among the other suggestions were: 1) that there be structured between meetings some manner in which the Forum participants are informed of the status of key issues, with sufficient information to monitor progress and decide next steps to be reported at future meetings; 2) that there be established subgroups to work possibly in workshops on specific topics such as "HIV/AIDS," "gender," and "small and medium size enterprises."¹ Such groups could be prepared to report on the progress and gaps at future meetings of the Forum.

• Since this forum is a genuine partnership, both parties may submit background papers for discussion in meetings, submission of papers should not be one-sided. Another suggestion was for there to be prepared joint papers. In any event these papers should be prepared one month before the meeting in order for the participants

58. The meeting agreed that the above requires identifying, very specifically, where the gaps are, and have specific persons to fix them. The meeting was reminded that the APF forum is not for fixing issues but rather a platform that identifies ways of doing so. The meeting noted that this is the only way that this Forum can be sustained. The meeting further noted that the APF is a partnership for reform and for these reforms to take place, there is a need to build capacity. The forum can then suggest one or two institutions to deal with the issues.

Role of Co-Chairs

59. The meeting agreed that the co-chairs, with the support of the NEPAD Secretariat and the OECD would consult and identify key issues for practical follow up, which would include the production of a matrix outlining follow up actions since the first APF meeting. The meeting agreed that the role of the co-chairs should include consultations amongst themselves in between meetings, and identifying issues for intervention by the Forum.

Up-coming Meetings

60. The meeting informed of the following events:

• NEPAD Multi-Stakeholder Conference, 22-23 October 2004, Johannesburg, South Africa.

• Round table on the promotion of SMEs in Africa, to be convened by the United Nations Office of the Special Advisor on Africa (UNOSAA).

• TICAD-Asia Investment Conference to be held Tokyo, Japan in November 2004.

• OECD-ECA meeting to discuss the draft report on Mutual reviews.

Next APF Meeting

61. The next meeting will be held in Abuja, Nigeria in 2005. The dates will be communicated by co-chairs.