Documents

Progress report to the 22nd meeting of the NEPAD steering committee

Johannesburg, South Africa
30-31 March 2005

1. Introduction

The Twelfth Summit of the Heads of State and Government Implementation Committee (HSGIC) held in Algiers, Algeria on 23 November 2004 called for the fast tracking of the implementation of NEPAD. The HSGIC further confirmed priorities that had been identified at the NEPAD Multi-stakeholder Dialogue, held in Johannesburg in October 2004. Therefore, the work of the NEPAD Secretariat in the past six months concentrated on responding to the call by the HSGIC to focus on a few priorities for increased impact of NEPAD. The identified priorities are:

i. Enhancement of the capacity of RECs for the implementation of regional initiatives and programmes, including the establishment of NEPAD implementation task teams;

ii. Selection and support for the effective implementation of infrastructure projects vis Information and Communication Technologies (ICT); Shared Water Basins; Energy; and Transport.

iii. The speedy implementation of the CAADP;

iv. Integration of NEPAD priorities into national development plans in order to enhance the ability of countries to meet the Millennium Development Goals (MDGs); and

v. Reinforcement of engagement with the international community, particular in line with the upcoming G8, Commission for Africa and APF processes.

2. Progress in implementation

2.1 Enhancement of Capacity of RECs

Following the last HSGIC Summit, which called for the enhancement of REC capacity for the effective implementation of NEPAD, the NEPAD Secretariat undertook initiatives to respond to this call. This included preparations for workshop, which was convened by President Obasanjo in Abuja, Nigeria on 7-8 March 2005. In addition to the need to build the capacity of RECs, the workshop also identified the need for enhancing capacity at member state level as well at the NEPAD Secretariat. The workshop therefore identified mechanism to address the capacity challenges and constraints of RECs with respect to the implementation of NEPAD. Although the workshop format focused on infrastructure related challenges faced by RECs, member states and other implementing agencies, the following challenges and constraints were found to be generic and applicable to all other sectors of NEPAD:

• Capacity Building

• Institutional coordination

• Resource mobilization

• Monitoring and information sharing

• Internalization of MDGs

The workshop reconfirmed that the effective resolution of the above cross-cutting challenges will have a positive ripple effect on speedy implementation of NEPAD. The detailed report on this item is attached as Annexure 1.

Sectoral progress with regards to building the capacity of RECs has also been achieved in infrastructure, and environment.

2.1.1 Selection and Support for Effective Implementation of Priority Infrastructure Projects

One of the objectives of the Abuja workshop was to identify priority projects for infrastructure in each REC, for immediate implementation. The workshop resulted in the identification and reconfirmation of infrastructure priority projects, which are ready for implementation, including capacities required to bring them to fruition. The development of a project data base is also underway.

The detailed progress report is attached as Annexure 1.

2.1.2 Human Resource Capacity for Implementation of the NEPAD Environment Action Plan

Based on HSGIC call in November 2004 for the enhancement of the capacities of RECs for NEPAD implementation, the NEPAD Secretariat and the United Nations Environment Programme (UNEP) are, within the framework of the UNEP/GEF Medium Sized Project (MSP) on the Development of Sub-regional NEPAD Environmental Action Plans, have capacitated the RECs through the recruitment of a senior Environment and Natural Resources Co-ordinator in each of five RECs. The RECs involved are the Economic Community for West Africa States (ECOWAS); the Inter-Governmental Authority on Development (IGAD); the Economic Community of Central Africa States (ECCAS); the Southern Africa Development Community (SADC); and the Arab Maghreb Union (UMA), for the next three years. Plans are underway to provide support to the other RECs on a long-term basis.

2.2 Implementation of CAADP

Significant progress has been achieved with respect to speeding up the implementation of CAADP. Following the 3rd Africa Partnership Forum meeting, in October 2004, where partners were mobilized partners to support the implementation of CAADP, USAID has taken a lead in supporting the implementation roadmap of CAADP. This roadmap has resulted in hosting of a series of sub-regional consultative meetings under the direction of RECs and member states, as primary implementers.

The consultative process has resulted in an action-oriented process, which defines investment options and institutional arrangements that would allow: (i) RECs and member countries to prepare investment projects; and (ii) an agreed process for development partners to plan for long term financial assistance to RECs and member states. The sub-regional workshops were scheduled as follows:

• East and Central Africa 25 - 28 January 2005, Dar-Es- Salaam, Tanzania.

• SADC Region 15 - 18 February 2005, Maputo, Mozambique.

• ECOWAS Region 15 - 18^th March 2005, Bamako, Mali.

• The North Africa sub region 12-13 April 2005, Cairo, Egypt.

• The wrap up will take place on the 21 - 22 April, 2005 in Accra, Ghana.

The sub-regional workshops have already resulted in specific commitments, including 150 million USD from the AfDB for the SADC Food Security and Irrigation program and support from the World Bank to implement the Multi-Country Agriculture Productivity Program (MAPP) in ECOWAS and SADC.

The wrap up meeting in Ghana, which is scheduled to be opened by H.E President Kufor, is a critical step in the implementation process. It brings together national government and private sector leaders, G8 members, Heads of bi-lateral and multi-lateral development organizations, and international business leaders to agree on actions to support implementation of the CAADP agenda at regional and country levels. The specific objectives are:

a. Reaffirmation of the Maputo Pledges and review of progress achieved to date with respect to meeting the related commitments;

b. review and clarification of, as well as agreement on, the outcomes of the 4 Regional Implementation Planning meetings, in particular the regional early actions and long term action plans for the implementation of the CAADP agenda;

c. agreement on governance and coordination principles, institutional arrangements, and key actions by national governments, regional economic communities, and development partners at the regional and country levels in order to successfully implement the early action agenda within the next 12 months;

d. exploration of new strategic partnerships with the private sector to facilitate implementation of the early actions and support implementation of the broader CAADP agenda; and

e. commitment by national governments, development partners and the private sector to finance CAADP early actions which are to be implemented over a period of 12 months, and to provide long term financial and other implementation assistance.

A detailed progress report on the implementation of CAADP is attached as Annexure 2.

2.3 Integration of NEPAD Priorities for Attainment of MDGs

One of the challenges facing NEPAD is the integration of national and sub-regional plans within the framework of NEPAD, as well as the capacity of countries to align their budgets with NEPAD priorities in order to meet the MDGs. Since 2003, the NEPAD Secretariat, with support from the UNDP, has been preparing an African MDG Report to identify the constraints, prospects and challenges in meeting the MDGs and assess resources needed to achieve the MDGs in Africa.

The Report, which also aims to identify effective strategies on harmonization, implementation and monitoring to track the continent's progress towards the goals through 2015, will be launched at the next AU Summit in July 2005.

Following the recently concluded 1st Mid-Term AU Summit, which mandated the AU Commission to coordinate and lead the process of developing an African Common Position in collaboration with Member States, and in close consultation with RECs, the UN Economic Commission for Africa (ECA) and the African Development Bank (ADB), the NEPAD Secretariat is now working with the AU Commission towards the finalization of an AU/NEPAD MDG Report. The UNDP is supporting this process.

The Report will thus lay the foundation for collective action by African leaders, policy makers and their development partners in helping African countries meet the MDGs by 2015. The detailed progress report of this initiative is attached as Annexure 3.

2.4 Investment of Government Managed Employee Funds

Following the proposal by President Mbeki at the 12^th HSGIC in Algeria in November 2004 regarding the possible use of Employee Pension Funds for investment in NEPAD projects, the NEPAD Secretariat has interacted with the Public Investment Corporation of South Africa, which has initiated research on this matter in 14 African countries. Initial results indicate that these countries have about USD 127 billion under their control.

The NEPAD Secretariat has now requested Hon. Trevor Manuel, Minister of Finance of South Africa, to raise the matter with his colleagues in May 2005, during the ADB annual meeting. Specifically, the Minister has been asked to brief his colleagues on the initiative and solicit their support for the further development of the project.

2.5 Engagement with the International Community

2.4.1 The UK Commission for Africa

The report of the UK Commission for Africa was released on 11 March 2005. The release of the report has been received with varied reactions by stakeholders. On a general note, the report reiterates the key messages that NEPAD has been advocating in the past three years vis substantial enhancement of resource inflows, debt cancellation, and fostering the realization of the Doha Agreement, particularly in creating greater market access to African countries.

The impact of the report will be widely measured by the extent to which the rest of the G8 and other development partners will support and take action on its recommendations. This buy-in will also depend on the extent to which African leaders and stakeholders will continue to promote the report's messages, in line with NEPAD, to development partners collectively and bilaterally.

The Steering Committee's interactions, as an advocacy strategy, with this process since May 2004 can be confidently judged as having been successful in putting NEPAD on the international agenda. The challenge moving forward is to ensure that the recommendations are translated into delivery.

A detailed commentary on the report is attached as Annexure 4.

2.4.2 The G8 Africa Action Plan

The next G8 Summit is due to be held in Gleneagles in early July 2005 in preparation for the Summit, the NEPAD Steering Committee representatives met with the Africa Personal Representatives (APRs) of the G8 on 28 February 2005 in Johannesburg. The purpose of the meeting was to jointly assess the implementation of the G8 Africa Action Plan with a view to the G8 APRs and the NEPAD Steering Committee submitting a joint report to the next G8 Summit highlighting progress made, challenges and constraints, gaps and recommendations for the speedy implementation of the G8 Africa Action Plan.

The NEPAD Steering Committee highlighted the following as priorities for consideration at the next G8 meeting:

• More predictable, co-ordinated assistance (CAADP as an example of good donor co-operation through US leadership) that respected national priorities and reduced burdens on weak African capacity.

• Increased support to regional programmes that foster regional integration in ways that compliment bilateral support.

• A big push that would send strong messages to non-G8 countries, including OECD countries, as well and make sure that the increased aid was not just given to a few countries.

• Conflict resolution, peace and security, and support to the APRM

• Focus on infrastructure, ICT and agriculture

• Private sector engagement and generation of private sector investment

As we move towards the G8 Summit, it is important that African Heads of State and Government continue to persuade the G8 for practical implementation of the G8 Africa Action Plan.

The detailed report of the meeting of 28 February 2005 is attached as Annexure 5.

3. Integration of NEPAD into au structures and processes

A verbal report by Prof. Nkuhlu will be provided at the meeting.

4. Date of next meeting

The next consultative meeting of the Steering Committee will be held back-to-back with the next HSGIC meeting in Egypt, at a date to be announced.