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Africans Rising: The Time for Action Is Now

MD Staff

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[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] T [/yt_dropcap]he fundamental imperative for Africa is to pursue inclusive growth, which will transform it from the continent of potential to the continent of prosperity, said Cyril M. Ramaphosa, Deputy President of South Africa, in the closing address to the 2017 World Economic Forum on Africa.

Ramaphosa called on the continent’s leaders to think hard about “the type of Africa we are going to leave for future generations.” Will it be a place of ashes or of half-baked solutions, or will it be a product of leaders’ best efforts to be responsive and responsible to their citizens?

“We must lead with respect and dignity,” he continued, “We are trustees and guardians of the continent for future generations.” The scourges of wastage, mismanagement and corruption must be wiped out and replaced with a united drive for inclusive growth, he said.

A comprehensive reform of the approach to education is one of the first calls to action, said Ramaphosa. Promotion of science and innovation must be central to learning, as must broadening access for all, but especially for girls and young women. And education cannot be the preserve of an emerging middle class, thus perpetuating inequality.

Ramaphosa’s call to action to change Africa’s path echoed the comments of the meeting’s Co-Chairs, who formed the discussion panel of the closing plenary session of the meeting.

“There is a real sense of urgency in Africa,” noted Siyabonga Gama, Group Chief Executive Officer, Transnet, South Africa. He suggested that governments should be run as if they are large corporates – with constant monitoring of performance in hitting targets, bold decision-making and the removal of impediments that slow down growth.

For Gama, the priorities are to integrate Africa’s five economic zones into one giant economic marketplace. Integral to this is a major drive to build infrastructure and power-generation capacity.

Winnie Byanyima, Executive Director, Oxfam International, United Kingdom, said she is “optimistic and hopeful” about Africa. She has seen people’s capacity to work together to improve their lives and, if they are given the right space to do so on a continental scale, they will seize the opportunity.

Byanyima called for the cliché phrase “African Rising” to be changed to “Africans Rising”.

Frédéric Lemoine, Chairman of the Executive Board, Wendel, France, referred to the infamous headline “Hopeless continent” and said it is no longer applicable to Africa. He said the continent’s massive challenges mean it is never going to be “a blue-sky scenario” but there is abundant cause for hope. He pointed out that Africa has been economically outperforming many parts of the world in recent times.

The energy and the strength of young people in Africa are a compelling cause for optimism, said Rich Lesser, Global Chief Executive Officer and President, The Boston Consulting Group, USA. He said accelerated reform agendas in all areas of society and a growing emphasis on “human-centricity” are clearly evident.

Ulrich Spiesshofer, President and Chief Executive Officer, ABB, Switzerland, summed up the mood at the end of the meeting: “The time for action is now.”

Outcomes of the meeting included:

Leaders of four African countries – Ghana, Kenya, Rwanda and Senegal – joined with private-sector executives and other stakeholders to recommit to mobilizing investment in agriculture through the Grow Africa partnership platform, which to date has mobilized $10.5 billion, of which $2.3 billion has been realized, reaching over 10 million smallholder farmers.

The Forum’s Global Shapers community hosted a morning of Community Conversations, bringing Davos-style discussions to an audience drawn from the people of KwaZulu-Natal.

The Solutions Summit brought together 200 members of the Forum’s Schwab Foundation for Social Entrepreneurship, Young Global Leaders and Global Shaper communities to discuss ways of scaling their impact.

The South African government partnered with the World Economic Forum Internet for All project to accelerate the connection to the internet of 23 million additional South Africans by 2020.

The Africa Skills Initiative agreed to make business commitments in six vital areas: large-scale internships and apprenticeships at all skill levels; developing future-ready curricula; foundational education delivery; retraining for unemployed youth; research and development collaboration with universities; and expanding basic IT fluency to reach 1 million people by January 2018.

Business leaders from the Partnering Against Corruption Initiative (PACI) and a number of African governments have agreed to create a pan-African network to carve out a strategic response to address corruption.

Siemens, a Strategic Partner of the World Economic Forum, entered into a partnership with Uganda, Ghana and Sudan to assist in the areas in power supply, transport and healthcare.

Africa

Persistent Conflict and Instability Hamper the Recovery of the Central African Republic

MD Staff

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According to the first issue of the Central African Republic (CAR) Economic Update published today by the World Bank, the deterioration in security conditions and the humanitarian situation is dampening hopes for a robust economic recovery in the Central African Republic. After peaking at 4.8% in 2015, the growth rate slowed to 4.5% in 2016 and 4.3% in 2017. Despite the optimism prevailing since the 2016 presidential election and the government’s promising fiscal consolidation policy, the CAR remains a fragile state that could draw lessons from the successful experience of other fragile states in order to sustain its peacebuilding and recovery efforts.

Titled “Breaking the Cycle of Conflict and Instability,” the World Bank’s publication provides an in-depth analysis of the factors creating fragility and proposes a number of avenues to achieve economic recovery. It identifies three essential prerequisites to break the cycle of instability and conflict: restoring security, combating impunity by guaranteeing compensation for the harm suffered by the victims, and promoting equitable and inclusive economic and social development.

Without a doubt, the persistent insecurity is the biggest obstacle to poverty reduction, as each new violent confrontation between armed groups leads to additional displacement, destroys private property, and complicates the work of humanitarian organizations,” said Jean-Christophe Carret, World Bank Country Director for the Central African Republic. “The protracted security crisis in the CAR is taking a toll on the capacity of the state to provide essential public services and goods in the areas of health, education, and water.

The report recommends that lessons be learned from other post-conflict countries such as Ghana, Liberia, and Rwanda, which have managed to put prolonged periods of instability behind them.

“The experience of these countries underscores the importance of promoting the development of civil society in order to consolidate democratic progress, strengthen public accountability, and enhance transparency while implementing a pragmatic set of policy and institutional initiatives to achieve gradual but steady improvement in the quality of the public service,” said Souleymane Coulibaly, World Bank Lead Economist for the Central African Republic and publishing coordinator for Economic Updates.

The new Economic Updates series for the Central African Republic will review economic trends in the country on a biannual basis in order to help the government and its development partners identify new opportunities and tackle persistent challenges.

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Africa

Mauritania Conference : AU Reopen Western Sahara File

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Since the kingdom of Morocco left the OAU in 1984, the Kingdom’s participation with the African states has been seen by its enterprise involvement in several fields like oil imports and humanitarian aid. At the end of the 90s, under the King Mohammed VI rule, Morocco’s African alignments accept a new measurement whereby, continental banking, commercial and economic exchanges took the significant stage in Morocco’s re-engagement with the African States. The main objective for this collaboration and mutual African team banding was to build up a solid South-South strategy cooperation, tapping into Morocco’s longstanding historical, cultural, geopolitical and economic band with the African continent.

On the beginning of July, the 31st Ordinary Session of the African Union(AU) meeting, which took place in Nouakchott, the capital of Mauritania which is expectedly going to discuss a report on the Moroccan Sahara Issue.

Depending on the African Union calendar released, this meeting will hold the presentation of three main reports, including a report on the Moroccan Sahara Issue, conferred by Moussa Faki Mohamed, Chairman of the AU Commission.

Basically, this is the first time that the Western Sahara dispute has been conferred with the calendar of an African Union conference since the Kingdom’s return to the African organization last year, after it had left the country three decades ago because of the same issue, which necessitates the kingdom of Morocco would face any challenge to its national case as its priority .

On Thursday, Moussa Faki Mohamed, head of the African Union Commission in Morocco, met with King Mohammed VI, Prime Minister Saad Eddin Othmani and Minister of Foreign Affairs and Cooperation Nasser Bourita, along with some of the King’s advisors to discuss the Sahara Dispute which is a report in AU.

The communiqué issued by the African Union on Vicky’s visit to Morocco did not refer to the Sahara issue with Moroccan officials. The communiqué issued on Friday made reference to the role of the Kingdom in the Union Foundation, as well as issues of major concern.

The Moroccan government refuses the inclusion of the Sahara report in the AU calendar and esteems the report to be an exclusive competence of the United Nations, especially in the presence of a total of parties opposed to the Moroccan proposal, led by the separatist Polisario Front, supported and financed by Algeria and some other countries.

Additionally, to offering a report on the Moroccan Sahara Issue, it is anticipated that the 31st AU Meeting, on 1 and 2 July, will show a report on the tools and implementation of the institutional reform decision of the African Union by Paul Kagame, President of the Republic of Rwanda. Additional report on the Africa-Africa Free Trade Area will be handled by Mohamed Essovo, President of the Republic of Niger. Moussa Faki will come up with another report on the African Common Position on the African, Caribbean, and Pacific countries beyond 2020.

This African Union Agenda also includes the presentation of the subject of the year on “Victory in the struggle against corruption: a sustainable path towards African transformation”, to be seen by Mohamed Boukhari, President of the Republic of Nigeria, to be pursued by a debate by the Conference. The concluded sessions will argue the discussion of the activities of the Peace and Security Council on Africa, in which Morocco won a seat months ago.

The calendar of the African Meeting contains a report on the implementation of the African Union’s main roadmap for practical ways to silence guns in Africa in 2020, the adoption of the AU’s 2019 budget and the ratification of appointments in the Federation’s institutions.

Morocco’s acquisition to the African Union will undisputed change the policy of how the Pan-African organization stands the Western Sahara file. Despite Morocco’s diplomatic orientation to refine solving the Sahara dispute in a pragmatic way, its policy will sustain the same as for the acceptance of the SADR is concerned. The kingdom of Morocco is likely to endure its changeless policy to delegitimize any declare or allege of the Polisario in its search for being an independent state. It will also try to undermine the political impact of the Polisario leadership and its keen supporters, South Africa and Algeria.

At the same time, to disband the SADR from the African Union will be a weak mission, as the latter can only discourage other countries whose governments were agreed towards unconstitutional layers. Several African states refuse to disband the SADR. Regardless of Morocco’s intense African policy calendar and huge commercial economic projects, there stay countries who still cover the Polisario leadership. For instance, the case of Nigeria, which get advantage from Morocco’s economic bonus, continuing exercises its position to support the Polisario in their faith for independence.

Currently, the Kingdom of Morocco has used its diplomatic and economic might to return its empty seat at the African Union, it has to bestow that it is a capable partner whose membership will favor the African Union, therefore, solving and resolving the deadlock of an African colonial dispute. In contrast, the SADR can also urge for a resolution by sustaining powerful AU member states endorsement, especially, South Africa and Algeria, to guarantee the Kingdom of Morocco brings up some sort of a win-win barraging agreement.

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Africa

New Somali Business Fund Creates Jobs

MD Staff

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Unemployment is chronic across Somalia. The SBCF is expected to generate more than 2,000 jobs, most of which will go to young people. Photo: Hassan Hirsi/World Bank

Sahal, a dairy farmer, is CEO of Bovine Industry, an urban dairy farm in central Mogadishu. The company cross-breeds Somali cattle with Jersey cattle to produce higher-quality milk.

“Mogadishu is the only capital in the world where you can’t buy fresh milk,” Sahal said. “How can a country that exports the most livestock in the world not have fresh milk?”

Despite the clear need for fresh milk, it has been difficult for Sahal and other small and medium enterprises (SMEs) like his to access capital to grow their businesses. That was before the November launch of the Somali Business Catalytic Fund (SBCF), which aims to spur economic growth in country by supporting SMEs and entrepreneurs.

With support from the SBCF, Sahal was able to fit his backyard business with grazing grass and fences. The demand for fresh milk is soaring, with an average waiting list of three months for a single liter. Soon, Sahal will be able to increase his herd of 15 cows, producing more milk and allowing him to employ more people. He believes that development should be based on grassroots needs, and simple supply/demand analyses.

“Farmers have the knowledge to pasteurize milk, produce yogurt and expand the Somali dairy sector,” he said. “We just need the machinery and capital to make it happen.”

SBCF, the Bank’s flagship job creation initiative in Somalia, targets businesses that focus on innovative processes, products and markets new to the region. It is also intended to stimulate the business and technical services industry to build sector expertise in agriculture, livestock and energy, among others. So far, the SBCF has selected 101SMEs across the Somali peninsula – South Somalia, Puntland and Somaliland — to receive financial and technical support. The selected firms are expected to generate more than 2,000 jobs.

“Poverty reduction in Somalia must be private sector-led. We have relied on traditional aid since the early 1990s, and handouts have not been a sustainable method to reduce poverty,” said Sahal. “I believe that access to capital is crucial for both job creation and dignified poverty reduction.”

Asli Health Care Company, based in Hargeisa, has also benefited from the SBCF. The company’s manager, Nemo Yusuf, founded the company after she and her partners studied imports to Somaliland. Through a market study, she and her partners studies the viability of producing beauty products and creating jobs in the process.

“We observed an excess of imports of personal healthcare and beauty products from China and the Middle East, most of which could be produced domestically,” she said. “Our study confirmed that we could produce and sell shampoo, soaps and detergents competitively,” she said. “A reality that is too familiar with Somalis is that we import most products, when we should be producing them.”

Through the SBCF, Yusef was able to purchase high-speed manufacturing equipment, allowing her to produce shampoo bottles that limit waste from importing more plastic.

Her company is also supported through the SME Facility (SMEF). SMEF provides technical assistance and business development services to assist Somali entrepreneurs to launch, manage, and grow successful businesses. Asli and her partners were trained in budget planning, finance, and human resources training, which is helping their business become more effective. SBCF and SMEF fall under the Somali Core Economic Institutions and Opportunities (SCORE) Program, which is funded by the World Bank’s Multi-Partner Fund (MPF).

Armed with this knowledge, Yusuf and her partners have expanded their business. They created a sachet-packet shampoo line as a new product.

“There is a demand for one-time use 10 milliliter sachets, especially among young people and those who cannot afford full bottles,” Yusuf said. “We are in the process of manufacturing our own bottles to drive prices even lower.”

Challenges in Hargeisa are similar to those in Mogadishu, where Yusuf said “accessing capital is probably the main constraint to private sector growth.” There are also challenges such as the availability of skilled labor, supply-chain issues related to infrastructure, affordable energy and economic policies that support private sector competitiveness are also prominent.

Yusuf can see the results in Hargeisa, where the large market could be used to create jobs for young people as well as keep currency in the market and limit inflation.

“Our company is managed entirely by fellow citizens,” she said. “We have employed an additional 17 people to support the expansion of our company, of which most are young people. A third of our employees are women.”

World Bank

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