IMPLEMENTING THE NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT NEPAD NOVEMBER 2002 NOVEMBER 2002

IMPLEMENTING THE NEW IMPLEMENTING THE NEW PARTNERSHIP FOR PARTNERSHIP FOR

AFRICA’S DEVELOPMENT AFRICA’S DEVELOPMENT NEPADNEPAD

NOVEMBERNOVEMBER 2002 2002www.nepad.orgwww.nepad.org

NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENTNEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT

1. PRIMARY OBJECTIVE

• To eradicate poverty;• To place African countries, both individually and collectively on a path of sustainable growth and development;• To halt the marginalisation of Africa in the globalisation process;• To accelerate the empowerment of women.

2. PRINCIPLES


• NEPAD is an holistic, comprehensive and integrated sustainable development initiative for the economic and social revival of Africa.• African ownership and leadership;• Anchoring the redevelopment of the continent on the resources and resourcefulness of the African people; • Accelerating and deepening regional and continental economic integration;• Building the competitiveness of African countries and the continent; • A new partnership with the industrialized world.


3. STRATEGIC FOCUS OF THE

PROGRAMME

• To reduce the risk profile of doing business in Africa;

• To create the conditions conducive for investment, high economic growth and sustainable development;

• To increase Africa’s competitiveness in the world economy;

• To transform the unequal and donor/recipient relationship with the developed countries and multilateral institutions to a new partnership that is based on mutual responsibility and respect.


4. TOP PRIORITIES

4.1 Establishing the Conditions for Development :

• Peace and security;

• Democracy, political, economic and corporate governance with a focus on public financial management;

• Regional co-operation and integration;

• Capacity building.

4.2 Priority Sectors

• Agriculture;• Human development with a focus on health, education, science and technology and skills development;• Building and improving infrastructure, including Information and Communication Technology, Energy, Transport and Water;• Promoting diversification of production and exports, including promotion of agro-industries, manufacturing, mining, mineral beneficiation and tourism;• Accelerating intra-Africa trade and improving access to markets of developed countries.• The environment



4.3 Mobilising Resources

• Increasing domestic savings and investments;

• Improved management of public revenue and expenditure;

• Increasing capital flows through further debt reduction, increased ODA flows and foreign direct investment;

• Improving Africa’s share in global trade.


5. DESIRED OUTCOMES

• Africa becomes more effective on conflict prevention and the establishment of enduring peace on the continent;

• Economic and political governance, democracy and the protection of human rights become the norm in every African country;

• Effective poverty eradication and an accelerated pace of achieving international development goals;

• Increased capital flows and investments to the continent, both domestic and foreign;


5. DESIRED OUTCOMES (continued…)

• Increased levels of ODA to the continent and its effective utilisation;

• Africa becomes more effective in terms of policy development on an international level, ensuring that the continent’s needs are taken into account, for instance, in WTO negotiations;

• Regional integration is further accelerated; and

• Higher levels of sustainable economic growth in Africa are achieved.


6. PROGRESS TO DATE

• Policy Framework document approved by the OAU Summit of Heads of State and Government (HSIC) in July 2001;

• Heads of State Implementation Committee mandated by the OAU Summit to manage the further development of the programme;

• HSIC composed of three Heads of State and Government from each of the OAU regions meets for the first time in October 2001;

• The HSIC appoints a Steering Committee and Secretariat to co-ordinate the prepa- ration of detailed implementable programmes covering a limited number of priorities;


• The detailed implementation programmes covering all the areas prioritised by the HSIC were prepared with the support of the OAU Secretariat, The African Development Bank, the United Nations Economic Commission for Africa and the regional economic community structures.

• Inputs were sourced also from the United Nations system, the Bretton Woods Institutions, the European Union and the OECD;


• After endorsement by the OAU Summit in July 2001, the promoters of the programme made a presen- tation to the G8 leaders in Genoa in late July 2001;

• The G8 responded to the invitation to build a new partnership with African leaders by appointing a task team of personal representatives to prepare a detailed response to NEPAD;

• The G8 leaders presented their response to the African leaders in the form of The G8 African Action Plan on 27 June 2002 in Kananaskis, Canada


7. OUTCOME OF THE AU SUMMIT 2002

• Overwhelming endorsement of the NEPAD programme;• The Mandate of the HSIC extended by another year.• Strong commitment to constitutionality, democracy and good governance;• HSIC increased by one member per AU region;• Member states encouraged to adopt the Declaration on Democracy, Political, Economic and Corporate Governance and accede to African Peer Review Mechanism.


8. CURRENT FOCUS

• Operationalising the African Peer Review

Mechanism

• Further developing Programmes of Action and

specific interventions for:

- Market Access, Industrialization, Increasing Intra-Africa Trade and Diversification of

Exports;

- Science and Technology, and the establishment of Regional Centres of Excellence

• Coordinating and facilitating implementation of

projects


Examples of Projects

a. Energy Sector Project Examples

9. PRIORITY ACTIONS AND INTERVENTIONS

TAN-ZAM Line

700km 330KV interconnector from Pensulo, Zambia to Mbeya, Tanzania

Feasibility Study underway

2003-2005 160 million

TAN-KEN Line

200km 330KV interconnector from Arusha, Tanzania to Nairobi, Kenya

2003-2005 40 million

MAL-MOZ Line

200km 330KV interconnector from Tete, Mozambique to Blantyre, Malawi

Aerial Survey and De-mining complete, feasibility study to be completed 31 December 2002

2003-2005 40 million

Project Title Description StatusImplementa-tion Period Value USD



DRCANSA Line

4000km 400KV interconnector from Inga, DRC to SA via Angola and Namibia

Formation of Steering Committee, Working Group, and independent company as JV between utilities (Eskom, Nampower, Ene, Snel)

2004-2007 500 million – 1.6 billion

Mepanda Uncua Power Project

1200-1600 Mwe downstream of Cahorra Bassa, Mozambique

Feasibility study complete. Moz. govt. canvassing interest from international investors.

Envisaged commissioning date: 2010

1.5 – 2 billion

DRC-Zambia

Reinforcement of existing Tx lines from Inga, DRC to Luano, Zambia

2003-2005 510 million

Zongo-Sanga

Rehabilitation of existing Hydro plant in Kinshasa, DRC to increase/restore capacity from 17 to 95 MWe

Technical scope for plant and infrastructure identifies and assessed and costed.

2003-2004 25 million

Project Title Description Status Implementa-tion Period

Value USD

Energy Sector Project Examples continued…



NEPAD’s role:

• Interact with respective governments to accelerate initiatives and coordinate working groups to drive projects

• Encourage governments/utilities to prioritise projects as part of national expansion plans

• Encourage the creation of appropriate legislative frameworks for private or public partnerships

• Facilitate long-term risk cover for projects

Energy Sector Project Examples (continued…)


Establishment of African Energy Fund and NEPAD Funding Commission NEPAD Funding Commission

- Proposed alignment with NEPAD and Investment Advisory Council (IAC) and International Chamber of Commerce (ICC)- To facilitate investment of funding by development partner

agencies into infrastructure projects in Africa

African Energy Fund- Proposed fund to invest in energy and related projects in Africa;- Primary aim to develop interconnections between African countries;- First project identified:

• Western Corridor Transmission Project (DRCANSA HV Tx Line) Status: Feasibility study underway

Linked projects include telecommunications, computer centers of learning, smelters, roads, schools,

and clinics.

Costs: Between US$500 million and US$ 1.6 million


Isre

al, P

ales

tine

Morocco

WesternSahara

Algeria

Tunisia

LibyaEgypt

SudanEritrea

Djibouti

MauritaniaSenegal

Mali NigerChad

TheGambiaGuinea-Bissau

Ethiopia

Somal

ia

KenyaUganda

Guinea

Sierra Leone

Liberia

Côt

eD

’Ivoi

reG

hana

Burkina

Faso

Togo

Nigeria

Camer

oon

Central African

Republic

DemocraticRepublic

of the Congo

Rwanda

Burundi

Equatorial GuineaGabon

Republic of the Congo

Cabinda Tanzania

Benin

ZanzibarSeychelles

Angola

Namibia

Republic ofSouth Africa

SwazilandLesotho

Botswana

Zambia

Zimbabwe

Malawi

Moz

ambiq

ue

Mad

agas

car

Mauritius

Northern Power Pool

Western Power Pool

Eastern/Southern Power Pool

Major Network andDirection of Flow

Minor Network andDirection of Flow

Planned Interconnectionand Direction of Flow

Arab Mash

req

Iraq,

Tur

key

Jord

anEurope

Spain

ESKOMENTERPRISES

POWER POOLS AND INTERCONNECTIONS


Existing NetworksPlanned ExpansionUnder ConstructionPotential Future Grid

Mad

agas

car

Potential Future Grid— Alternative Routes

Morocco

WesternSahara

Algeria

Tunisia

LibyaEgypt

SudanEritrea

Ethiopia

Djibouti

Somal

ia

KenyaUganda

MauritaniaSenegal

MaliNiger

ChadThe

GambiaGuinea-Bissau

Guinea

Sierra Leone

Liberia

Côt

eD

’Ivoi

reG

hana

Burkina

Faso

Togo

Nigeria

Camer

oon

Central African

Republic

DemocraticRepublic

of the Congo

Rwanda

Burundi

Equatorial GuineaGabon

Republic of the Congo

Cabinda Tanzania

Angola

Botswana

Zambia

Zimbabwe

Malawi

Moza

mbiq

ue

Namibia

Republic ofSouth Africa

SwazilandLesotho

Benin

POTENTIAL FUTURE

AFRICAN GRID


b. ICT Infrastructure Project Example

SAT3/WASC/SAFE cable project (Marine Fibre Optic Cable Links)

• Benefits:- Improved and additional intra-Africa connectivity and trade in

communication services;- Broadband state-of-the-art infrastructure for high volume multimedia

communications;- Global connectivity to African countries that otherwise may not have

been able to do so individually.

• Cable landing points:- Portugal, Spain, Canary Islands, Senegal, Cote d’Ivoire, Ghana,

Benin, Nigeria, Cameroon, Gabon, Angola, South Africa, Reunion, Mauritius, India, Malaysia


INFRASTRUCTURE INITIATIVES

SAT 3/WASC & SAFE

Landing Points:1. Senegal2. Cote d’Ivoire3. Ghana4. Togo5. Benin6. Nigeria7. Cameroon8. Gabon9. Niger10. Angola11. Namibia12. South Africa13. Mauritius14. India15. Malaysia16. Portugal17. Madagascar

16

1

2 3 4 56

789

10

11

12

1713

14

15


c. Tourism Anchor Project Example

Expanded Okavango Upper Zambezi International Tourism Spatial Development Initiative (Expanded OUZIT Project)

Integrated tourism strategy aims at establishing a comprehensive coast-to-coast tourism and resource development zone, built around a core network of Transfrontier Conservation Areas.

OUZIT will deliver 15 resorts of US$100 million each by 2010. The project is expected to:

• Facilitate the development of projects that will attract more than 17 000 new tourists to Africa per day, which translates into

approximately 6.5 million per annum;

• Create direct employment opportunities for 90 900 people; and

• Provide an estimated US$1.1 billion in fiscal revenue.


c. Tourism Anchor Project Example (continued…)

• Current Status:

- Phase I: Scoping study completed

- Official approval for Expanded OUZIT as a regional project

- Phase II: Identify Key Projects(2002-2003)• Identify at least 3 new large scale investments in resort hubs• Support capacity in the management and expansion of

Gateway/Resort hubs in participating member states• Identify and engage high profile and active global investors• Address bottlenecks

- Phase III: Project Rollout/Implementation (2003-2012). Estimated cost USD 5 Billion


d. The Initiative on Pharmaceutical Technology Transfer (IPTT)

Vision:

• To contribute to generic pharmaceutical development in Africa to improve access to essential drugs at affordable prices for HIV, Tuberculosis, Malaria and related diseases;

• To establish a technological platform that will provide value-added benefit to countries by back integrating from importation of finished products to local manufacturing and ultimately to research and development.


d. The Initiative on Pharmaceutical Technology Transfer (IPTT) (continued…)

Benefits:• Foster national scientific and technological capacity;• Create a focal point for a knowledge and skills oriented society, and for a transition into value-added manufacturing;• Increase skilled employment and improve health-seeking behaviour;• Enhance economic self-sufficiency;• Provide long-term sustainable conditions for research and development for drugs for other neglected diseases.

Current Status:• Two manufacturing sited to be selected in each Ethiopia, South Africa, Uganda and West Africa;• Ethiopia, South Africa and Uganda have created project teams;• Project costs per manufacturing site estimated to be US$2 million;• Supply of essential drugs to the public sector scheduled to commence end 2003.


e. Integrated Project Approach

Example: Great African Rift Development Strategy

• Potential Key Sectors:- Agriculture and Agro-Processing- Tourism- Minerals

• Potential Outcomes:- Regional Integration- Extreme Poverty Relief- Infrastructure Development and Continental Integration

• Electricity Grid• Rail/Road Network• Inland waterways• Liquid Fuels/Gas Grid• Telecommunications


Great African Rift/Great Lakes Corridor

1. S. Sudan

2. Uganda

3. E. CongoRwanda

4. Burundi

5. W. Tanzania

6. NE Zambia

7. Malawi

8. Central Mozambique

Alternative:

6. Zambia

7. E. Botswana

8. W. Zimbabwe

9. N. South Africa


Natural Resources Principle export commodities (2000)

Burundi arable land, leisure tourism, nickel, uranium, peat, cobalt, platinum, vanadium

coffee, tea, sugar, cotton, hides

DRC arable land, cobalt, copper, cadmium, petroleum, diamond, gold, silver, manganese, coal

diamonds, copper, coffee, cobalt, crude oil

Malawi arable land, leisure tourism, uranium, coal, aluminium tobacco, tea, sugar, cotton, coffee

Mozambique arable land, leisure tourism, coal, titanium, natural gas, tantalum, graphite, aluminium, gemstone

prawns, cashews, cotton, sugar, citrus, timber

Rwanda arable land, leisure tourism, gold, tin, tungsten coffee, tea, hides, tin

Tanzania arable land, leisure tourism, gold, tin, phosphate, coal, iron, gemstone, nickel

coffee, cotton cashews, minerals, tobacco

Uganda arable land, leisure tourism, cobalt, copper coffee, fish, tea, electrical products, iron, steel

Zambia arable land, leisure tourism, copper, cobalt, emeralds copper, cobalt, tobacco

Sudan arable land, petroleum, copper, chromium, zinc, tungsten, mica, silver, gold

oil and petroleum goods, cotton, sesame

Botswana leisure tourism, diamonds, copper, nickel, salt, coal, soda ash diamond, vehicles, copper, nickel, meat

Zimbabwe arable land, leisure tourism, coal, chromium, asbestos, gold, nickel, copper, iron, platinum

tobacco, gold, ferroalloys, cotton

S. Africa Arable land, leisure tourism, platinum, gold, coal, chromium, iron, diamond, manganese

gold, diamond, other metals and minerals, chemicals, fertilizer

Great African Rift Development Strategy (continued…)


10. THE UNIQUE CONTRIBUTION

OF THE NEPAD PROCESS

Strengthening political leadership in:

• Resolving conflicts and consolidating good political and economic governance;

• Promoting regional and continental economic integration;

• Accelerating the planning and implementation of multi-country projects and programmes;


• Negotiating a new partnership with the industrialised countries that is based on mutual responsibility and accountability;

• Building confidence in the future of the continent;

• Mobilising increased capital flows, both domestic and external;

• Strengthening Africa’s participation in international fora.


11. WAY FORWARD

• Complete business plans for the next twelve months with clear goals and time frames and prepare a plan for the next five years;

• Facilitate implementation - Accelerate Marketing and Communication - Engage development partners and multilateral institutions

• Establish partnerships with key African and international organisations that specialise in the NEPAD priority areas.


• Call on international partners to commit to a sustained involvement in a partnership with Africa to address poverty and marginalisation:

- To play an invaluable role as agents for progressive change;

- To support the implementation of NEPAD’s objectives;

- To champion Africa as a destination for foreign direct investment and private sector investment.

Documents

IMPLEMENTING THE NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT NEPAD NOVEMBER 2002 NOVEMBER 2002