Aid for Trade: African Perspectives by Dr. Cornelius T. Mwalwanda Principal Advisor and head United Nations Economic Commi...
Outline of Presentation <ul><li>Background </li></ul><ul><li>Aid for Trade Africa Regional Review </li></ul><ul><li>Priori...
Background <ul><li>Africa as a region remains at the margins of the world economy and global trade </li></ul><ul><li>Afric...
Background (Continued) <ul><li>Despite recent impressive growth rates, the continent still lags behind other regions </li>...
Aid for trade Africa Regional Review <ul><li>The Dar review was organised by UNECA, ADB, WTO and Government of Tanzania. <...
Key issues Discussed <ul><li>Integration to global economy a central objective. </li></ul><ul><ul><li>Will generate necess...
Key Issues Discussed (continued) <ul><li>Africa needs access to modern “infrastructure” for transport; customs; and standa...
Regional Breakout Sessions <ul><li>Regional integration critical to Africa trade growth. </li></ul><ul><li>Discussions cen...
Regional Breakout Sessions  West and Central Africa Selected Issues <ul><li>High trade costs, weak institutions and fragme...
Regional Breakout Sessions: West and Central Africa Priorities <ul><li>Human and institutional capacity building including...
Regional Breakout Sessions: Eastern and Southern Africa Selected Issues <ul><li>Region has comprehensive programs e.g. the...
Regional Breakout Sessions: Eastern and Southern Africa Priorities <ul><li>Trade facilitation. </li></ul><ul><li>Transport...
Regional Breakout Sessions: North Africa Selected Issues <ul><li>Regional integration not deep enough – low intra-UMA trad...
Regional Breakout Sessions: North Africa Priorities <ul><li>Trade facilitation. </li></ul><ul><li>Optimization of energy r...
Cross cutting themes <ul><li>Country leadership. </li></ul><ul><li>Focus on regional projects. </li></ul><ul><li>Identify ...
Recommendations and Way Forward <ul><li>ECA and ADB with WTO continue to raise awareness and understanding of AFT. </li></...
Concluding Remarks <ul><li>Africa as a region needs Aid for Trade even more than any other region because of its capacity ...
Concluding Remarks <ul><li>The challenges ahead include how to transform what has so far been “goodwill” into concrete act...
Concluding Remarks <ul><li>THANK YOU FOR YOUR ATTENTION </li></ul>
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Aid for Trade: African Perspectives

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By Cornelius Mwalwanda, UNECA - Brussels, 5 December 2007

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Aid for Trade: African Perspectives

  1. 1. Aid for Trade: African Perspectives by Dr. Cornelius T. Mwalwanda Principal Advisor and head United Nations Economic Commission for Africa (ECA) Geneva Advisory Services
  2. 2. Outline of Presentation <ul><li>Background </li></ul><ul><li>Aid for Trade Africa Regional Review </li></ul><ul><li>Priorities from regional breakout sessions. </li></ul><ul><li>Cross-cutting issues with respect to Africa </li></ul><ul><li>Roadmap for Africa in Aid for Trade </li></ul>
  3. 3. Background <ul><li>Africa as a region remains at the margins of the world economy and global trade </li></ul><ul><li>Africa’s share of world output is still marginal and it’s share of world trade still below 2% </li></ul><ul><li>Millions of Africans still live below the poverty line (at less than $1.00 per day) </li></ul><ul><li>Achieving the Millennium Development Goals (MDGs) could up lift millions from poverty </li></ul>
  4. 4. Background (Continued) <ul><li>Despite recent impressive growth rates, the continent still lags behind other regions </li></ul><ul><li>The need to integrate African economies into the global economy and trading system becomes an imperative </li></ul><ul><li>Raising Africa’s competitiveness and reducing transactions costs are essential for integration in the global economy </li></ul><ul><li>Africa can benefit from globalization and the opportunities generated </li></ul><ul><li>Aid for Trade an be an important catalyst </li></ul>
  5. 5. Aid for trade Africa Regional Review <ul><li>The Dar review was organised by UNECA, ADB, WTO and Government of Tanzania. </li></ul><ul><li>Broad participation. </li></ul><ul><ul><li>34 African Ministers of Finance and Trade. </li></ul></ul><ul><ul><li>Key donors and international agencies. </li></ul></ul><ul><ul><li>Private sector. </li></ul></ul><ul><ul><li>More than 400 participants. </li></ul></ul>
  6. 6. Key issues Discussed <ul><li>Integration to global economy a central objective. </li></ul><ul><ul><li>Will generate necessary resources for social priorities. </li></ul></ul><ul><ul><li>Small size of national and even sub-regional markets make international trade indispensable. </li></ul></ul><ul><li>While indispensable, openness not sufficient. </li></ul><ul><ul><li>Stronger supply-side capacities; lower trade “costs”; improved connectivity to markets needed. </li></ul></ul><ul><ul><li>“ Internal barriers” such as poor infrastructure, inefficient customs, unreliable supply chains; high energy costs impede competitiveness at the factory floor. </li></ul></ul>
  7. 7. Key Issues Discussed (continued) <ul><li>Africa needs access to modern “infrastructure” for transport; customs; and standards testing labs. </li></ul><ul><li>Regional approaches critical to optimal results. </li></ul><ul><li>Political leadership and commitment the key. </li></ul><ul><li>International community should play supporting role </li></ul>
  8. 8. Regional Breakout Sessions <ul><li>Regional integration critical to Africa trade growth. </li></ul><ul><li>Discussions centered on case studies from 6 RECs (COMESA, EAC, SADC, ECOWAS, ECCAS, UMA) . </li></ul><ul><li>That supply-side constraints were regional in nature was underscored due to smallness and landlockness. </li></ul><ul><li>Benefits of regional approaches identified in: </li></ul><ul><ul><li>infrastructure, capacity projects, planning mechanisms and financing. </li></ul></ul>
  9. 9. Regional Breakout Sessions West and Central Africa Selected Issues <ul><li>High trade costs, weak institutions and fragmented infrastructure key obstacles. </li></ul><ul><li>But region has on-going liberalisation and integration initiatives including in NEPAD context. </li></ul><ul><li>Investment climate not optimal for business – dialogue needed between gov’t and private sector. </li></ul>
  10. 10. Regional Breakout Sessions: West and Central Africa Priorities <ul><li>Human and institutional capacity building including of RECs. </li></ul><ul><li>Infrastructure development especially transport and utilities. </li></ul><ul><ul><li>AFT should build on what has been identified already as much as possible. </li></ul></ul><ul><li>Assistance with adjustment costs of liberalisation. </li></ul>
  11. 11. Regional Breakout Sessions: Eastern and Southern Africa Selected Issues <ul><li>Region has comprehensive programs e.g. the North-South Corridor Initiative encompassing trade facilitation, and connectivity infrastructure. </li></ul><ul><li>Challenge: Mobilizing adequate implementation resources. </li></ul><ul><li>Private sector needs to be more involved in prioritization. </li></ul>
  12. 12. Regional Breakout Sessions: Eastern and Southern Africa Priorities <ul><li>Trade facilitation. </li></ul><ul><li>Transport infrastructure. </li></ul><ul><li>Deepening of regional integration to overcome constraints of small and landlocked markets. </li></ul>
  13. 13. Regional Breakout Sessions: North Africa Selected Issues <ul><li>Regional integration not deep enough – low intra-UMA trade for instance. </li></ul><ul><li>Connectivity between members in terms of infrastructure and utilities unexploited. </li></ul><ul><li>Need to use more regional approach to cross-border projects. </li></ul>
  14. 14. Regional Breakout Sessions: North Africa Priorities <ul><li>Trade facilitation. </li></ul><ul><li>Optimization of energy resources </li></ul><ul><li>Improvement of telecommunications and transport infrastructure. </li></ul><ul><li>Strengthen UMA human and institutional capacity. </li></ul>
  15. 15. Cross cutting themes <ul><li>Country leadership. </li></ul><ul><li>Focus on regional projects. </li></ul><ul><li>Identify few key priorities. </li></ul><ul><li>Improve trade logistics. </li></ul><ul><li>Mobilize private sector. </li></ul><ul><li>Harness public private partnerships. </li></ul><ul><li>Leverage regional development banks. </li></ul><ul><li>Increase and improve financing. </li></ul><ul><li>Ensure coherence and cooperation. </li></ul>
  16. 16. Recommendations and Way Forward <ul><li>ECA and ADB with WTO continue to raise awareness and understanding of AFT. </li></ul><ul><li>Africa should move to the next stage of prioritizing its trade needs emphasizing on regional. </li></ul><ul><li>Building on current RECs plans, countries and sub-regions develop AFT action plans. </li></ul><ul><li>ECA & AfDB lead in creation of an African Aid for Trade Network to help in developing action plans. </li></ul><ul><li>ECA and ADB to report regularly on progress in Africa with first report in autumn of 2008. </li></ul>
  17. 17. Concluding Remarks <ul><li>Africa as a region needs Aid for Trade even more than any other region because of its capacity constraints </li></ul><ul><li>The burden of adjusting to trade reforms is more severe and pervasive in Africa, due to already existing low levels of income </li></ul><ul><li>African countries have identifies their priorities and the Aid for Trade should focus in supporting them </li></ul>
  18. 18. Concluding Remarks <ul><li>The challenges ahead include how to transform what has so far been “goodwill” into concrete action </li></ul><ul><li>How to proceed to implement the Aid for Trade Initiative and mobilize resources </li></ul><ul><li>How to coordinate activities of various participating agencies and organizations </li></ul><ul><li>How to ensure “ownership” by the recipient countries of the Aid for Trade </li></ul><ul><li>ECA is committed to working with all those involved in the AFT for its success </li></ul>
  19. 19. Concluding Remarks <ul><li>THANK YOU FOR YOUR ATTENTION </li></ul>

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