The Government of Myanmar announced today the passage of the Myanmar Companies Act, one of key reforms to improve the country’s business environment supported by the Asian Development Bank (ADB).
“Along with the recently revised Myanmar Investment Law, this reform represents an important step toward creating an enabling business environment in Myanmar,” said Duong Nguyen, an ADB Financial Sector Economist. “ADB has supported these efforts since 2012 as private sector development is the key driver of inclusive growth as it increases productivity, generates jobs, and stimulates investment.”
The new Companies Act adopts international best practices on company formation, business registration process, corporate governance, and lifts the threshold on foreign ownership.
ADB, with funding from the Government of Japan, has supported these efforts through a $1.5 million technical assistance grant approved in 2014. This grant has provided assistance to Directorate of Investment and Company Administration (DICA) to draft the new company law, and to conduct public consultations, advocacy, and public education on the law. In addition, the grant will procure an electronic company registry, train DICA staff to administer the registry, and assist DICA with re-registration of enterprises.
The new law and registry will simplify and reduce the cost of incorporating a business in Myanmar, and thereby support private sector investment. Small- and medium-sized enterprises will also benefit from a more transparent and lower-cost registration system.
“The new law will provide an opportunity for small businesses to formalize, and thus gain better access to finance and public services,” said Ms. Duong. “Moreover, an improved investment environment will support inclusive economic growth through increased enterprise startups and subsequent jobs generation.”
Africa-Europe Alliance: Two new financial guarantees under the EU External Investment Plan
Today in the margins of the 2019 Africa Investment Forum in Johannesburg, South Africa, the European Commission signed two guarantee agreements with two Member States’ development finance institution: the Dutch ‘Financierings-Maatschappij voor Ontwikkelingslanden N.V’ (FMO) and the Italian ‘Cassa Depositi e Prestiti’ (CDP). These guarantee agreements are part of the implementation of the EU External Investment Plan, the financial arm of the Africa-Europe Alliance for Sustainable Investment and Jobs.
Commissioner for International Cooperation and Development, Neven Mimica said: “The agreements signed today, worth €70 million, will help us to unlock more than €500 million in new investment in Africa and the EU Neighbourhood. These guarantees aim at mitigating and sharing the risk with other private investors in countries where otherwise these investments would not be as attractive. They will help to boost access to finance for small businesses, notably in the tech sector – and create up to 175,000 jobs directly and indirectly.”
Two guarantees, one goal: more investment in partner countries
The two guarantees will significantly boost investment and access to finance for small businesses (MSMEs), especially in the technology sector, in the countries covered by the Plan.
FMO Ventures Programme
This €40 million guarantee agreement is a partnership with FMO, the Dutch development bank. It targets Sub-Saharan Africa and the EU Neighbourhood. It will guarantee venture capital provided by FMO to start-up companies, in particular led by young entrepreneurs. The companies will use technology to lower the costs of making or supplying products and services that were previously unaffordable to many people. The guarantee will target companies offering digital solutions in a wide range of areas, from agriculture, access to energy and financial services to education, healthcare, transport and logistics. It will support up to 125,000 new jobs, directly and indirectly.
Archipelagos One4A – One Platform for Africa
The €30 million Archipelagos guarantee agreement is a partnership with Cassa Depositi e Prestiti (CDP), the Italian Development Bank, and the African Development Bank (AfDB). It will support access to finance across Africa for high potential small businesses. In order to help their growth, the programme supported by the guarantee will provide financing through innovative capital markets solutions. It will also enable financing partners to share the risk of investing in projects. By doing so it will generate up to 50,000 jobs, many for young people, and benefit about 1,500 small businesses in 10 African countries.
These guarantees are part of the External Investment Plan, which, by investing €4.5 billion, is set to leverage €44 billion in total investment. Out of the total budget, the EU has already allocated €4.2 billion.
The EU External Investment Plan is using €4.5 billion in public funds to leverage €44 billion by 2020 in public and private investment for development in countries neighbouring the EU and in Africa.
The plan has three pillars. The first is finance. Through financial guarantees, the EU mitigates the risk in countries with difficult environments so that private investors and development banks will lend to entrepreneurs or finance development projects.
The plan’s second part is technical assistance. This funds experts who help develop new projects, to the benefit of will authorities, investors and companies. Technical assistance may include, for example, market intelligence and investment climate analysis, targeted legislative and regulatory advice, support to partner countries in implementing reforms, chains and identification, preparation, and help to carry out necessary investments.
The third part is investment climate support. The EU works closely with governments in partner countries to help them improve the conditions which investors consider when making their decisions. These include the business environment and a country’s political and economic stability. The EU also brings together governments and business to discuss investment challenges.
The External Investment Plan is a key part of the Africa-Europe Alliance for Sustainable Investment and Jobs, launched by European Commission President Jean-Claude Juncker in September 2018. The Alliance aims to boost investment which creates jobs and promotes sustainable development.
UNIDO and Morocco’s MASEN to strengthen cooperation to deploy renewable energy technologies
The United Nations Industrial Development Organization (UNIDO) and the Moroccan Agency for Sustainable Energy of the Kingdom of Morocco (MASEN) signed a Memorandum of Understanding (MoU) to develop and implement projects deploying advanced renewable energy technologies in Morocco and targeted African countries, with the aim of creating aspirations to support African countries on their path towards inclusive and sustainable industrial development.
The partnership with MASEN complements UNIDO’s ongoing activities under its flagship ‘Low Carbon Low Emission Clean Energy Programme’ in Africa, which seeks to reduce poverty by promoting industrial growth through renewable sources of energy. It already started in 2017, on the margins of the 22nd Session of the Conference of the Parties (COP 22) to the UN Framework Convention on Climate Change (UNFCCC), when UNIDO Director General LI Yong, and MASEN President Mustapha Bakkoury launched the Vanadium Flow Battery project to demonstrate smoothing and stabilizing electricity output. An official handover ceremony is planned to take place in Ouarzazate, Morocco, in conjunction with a workshop gathering Moroccan officials and representatives from neighboring countries.
With MASEN’s support, UNIDO proposes to create a platform for the dissemination of renewable energy technologies in targeted countries while developing the local production of some technology components, thus creating grounds for achieving shared prosperity, economic competitiveness and environmental sustainability.
EU delivers on stronger European Border and Coast Guard to support Member States
Today, the Council has officially adopted the Commission’s proposal to reinforce the European Border and Coast Guard. The European Border and Coast Guard Agency will have a standing corps of 10,000 border guards, a stronger mandate on returns and will also be able to cooperate more closely with non-EU countries, including those beyond the EU’s immediate neighbourhood. This will give the Agency the right level of ambition to respond to the challenges facing Europe in managing migration and its external borders.
Welcoming today’s final adoption, First Vice-President Frans Timmermans and Commissioner for Home Affairs, Migration and Citizenship Dimitris Avramopoulos said:
“Today the European Union has achieved an ambitious task of transforming the EU border agency, Frontex, into a fully-fledged European Border and Coast Guard. This Agency will be equipped to offer tangible support to Member States to manage the EU’s external border – wherever and whenever needed.
From less than 300 border guards on the ground in 2014, the European Border and Coast Guard is now deploying around 1,300 officers and will soon have a 10,000-strong standing corps available for deployment. This is a collective achievement, which would not have been possible without strong political support for a common approach.
The European Border and Coast Guard is now stronger than ever. While Member States will remain responsible for the management of external borders, the standing corps will provide unprecedented operational support on the ground. Its officers will be able to assist national border guards in conducting identity and document checks, with border surveillance and return operations.
The Agency will also provide support beyond the EU’s borders. With European Border and Coast Guard officers already deployed in Albania and soon in other Western Balkan countries also, the Agency will be able to cooperate with third countries beyond the EU’s immediate neighbourhood.
We have spared no effort to make sure that Member States have the necessary tools to protect their borders and ensure the security of European citizens.
But our work is not yet done. The Commission will now provide its full support to help the Agency quickly take up its new tasks and ensure the standing corps swiftly reaches its full capacity of 10,000 border guards.”
The European Parliament and the Council will now jointly sign the final text. The text will then be published in the Official Journal of the European Union and the European Border and Coast Guard’s reinforced mandate will enter into force 20 days later. The new European Border and Coast Guard standing corps will be ready for deployment from 2021, and will then gradually reach its full capacity of 10,000 border guards.
The European Border and Coast Guard consists of Member States’ authorities responsible for border management and return, and of the European Border and Coast Guard Agency. It was established in 2016, building on the existing structures of Frontex, to meet the new challenges and political realities faced by the EU, both as regards migration and internal security. The reliance on voluntary contributions of staff and equipment by Member States has however resulted in persistent gaps affecting the efficiency of the support the European Border and Coast Guard Agency could offer.
In his 2018 State of the Union Address President Juncker announced that the Commission will reinforce the European Border and Coast Guard even further. The objective of this upgrade was to equip the Agency with a standing corps of 10,000 border guards and to provide the agency with its own equipment to allow it to respond to challenges as they arise. The European Parliament and the Council reached a political agreement on the Commission’s proposal on 28 March 2019. With the last step completed in the Council today, both institutions have now formally adopted the text.
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