africa - european union

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CITES warned Africa was suffering a “surge in poaching, in particular of elephants”, and called for “even stronger law enforcement and demand-reduction efforts across multiple countries, to reverse the current dangerous trends.” Organised crime syndicates and rebel militia increasingly use poaching to fund insurgencies, reaping the benefits of multi-billion-dollar demand for ivory in China where it is used as decoration and in traditional medicines. (© AFP 23/6 2014) COOPERATION AND TRADE MADAGASCAR US AGOA Reinstated Following a return to democracy, the door to international trade reopens. As anticipated, the US government rein- stated preferential trade status for Mad- agascar on its 54th independence day anniversary, providing hope for the country’s embattled economy. The 2000 African Growth and Oppor- tunities Act (AGOA) offers developing countries duty-free access to some US markets, with the strict proviso that their governments show progress on enhanc- ing democracy and human rights and upholding fair labour practices. “The decision to reinstate Madagascar’s AGOA eligibility recognises the nation’s return to democratic rule, as well as President [Hery] Rajaonarimampianin- a’s commitment to promote transpar- ency, combat corruption, and begin rebuilding Madagascar’s economy,” said a US government statement. The US suspended Madagascar’s free trade status at the beginning of 2010, following a coup in March 2009 and the failure of the transitional president, Andry Rajoelina, to make progress towards holding elections. Until the suspension, Madagascar had been an AGOA success story. The country exported on average over US $200m worth of goods a year under the agreement, with a peak of over $300m in 2004, according to Zenia Lewis, a researcher with the Brookings Institu- tion’s Africa Growth Initiative. Half of all textile exports from the country, amounting to $600m, went to the US, and the textile sector was responsible for up to 8% of the country’s GDP. The textile industry also played an important role in poverty reduction in urban centres. In 2008, it employed more than 100,000 workers, according to Takahiro Fukunishi of the Institute of Developing Economies at the Japan External Trade Organization (JETRO). In a paper published by JETRO in 2013, Fukunishi said Madagascar’s suspension from AGOA had a larger impact on the economy than the political turmoil. Exports from Madagascar to the US fell by around 70%, and over 26,000 jobs were lost between 2008 and 2010. Announcing the reinstatement decision, US Trade Representative Michael Fro- man said: “We are hopeful that Mada- gascar will take advantage of AGOA’s potential to create employment, expand bilateral trade, and contribute to the economic well-being, security, and health of its people.” (IRIN 27/6) Meanwhile the European Commissioner for Development Andris Piebalgs visited Madagascar in mid-June, to mark the resumption of cooperation with the EU, which had also been cut off in 2010. Pielbags inaugurated the rehabilitation of a road destroyed by cyclones before visiting a health centre, an educational regional directorate and a dam built for the development of agriculture. (PANA 11/6) Africa European Union A total of more than 4.6bn of EU support was committed towards national develop- ment strategies in 16 ACP countries, in the margins of the ACP-EU Joint Council of Ministers on June 19th–20th in Nairobi, Kenya. Ministers from 15 African states (Botswana, Coˆ te d’Ivoire, Djibouti, Ethiopia, Gabon, Ghana, Kenya, Mauritania, Niger, Sao Tome e Principe, Sierra Leone, Somalia, Swazi- land, and Tanzania) and one Caribbean (Suriname) co-signed the first National Indicative Programmes (NIPs) under the 11th European Development Fund (EDF) for the period 2014–2020, with European Commissioner for Development Andris Piebalgs. The NIPs outline the strategies and priorities of how EU aid will be applied in a country. Up to three sectors per country are sup- ported. Each NIP is a result of close collaboration between the EU and the part- ner country to reflect the government’s own policies and needs, as well as ensuring support for national priorities where the EU has a value added. “Europe remains ACP’s main development partner, and it is determined to help its partners exploit their potential to the full on the way forward... The benefits of our relationship are clear. Since 2004, thanks to EU support, 14m new pupils enrolled in Primary Education, over 18m children have been immunised against measles, and 70m people have been connected to improved drinking water,” said a statement by Com- missioner Piebalgs. The NIPs for the remaining ACP states are scheduled to be finalised and signed by early 2015. The financial allocation available for ACP countries under the 11th EDF (covering 2014–2020) amounts to more than 31.5bn. This is divided into grants (approximately 24.3bn for national and regional indicative programmes; 3.5bn for intra-ACP and inter-regional cooperation; 1.1bn for the Investment Facility managed by the Euro- pean Investment Bank (EIB); and 2.5bn to the EIB for loans with reduced interest rates, which are mainly to be used to promote the public sector in ACP states. Bilateral Funding Under the 11th EDF Country million Focal sectors Botswana 33 Education; Public sector reform; measures in favour of civil society Djibouti 105 Water and sanitation; food and nutrition security Ethiopia 745 Health; sustainable agriculture and food and nutrition security; infrastructure and energy Gabon 13 Education Ghana 323 Employment and social protection; governance; sustainable agriculture Coˆte d’Ivoire 273 Governance and peace building; agriculture; energy Kenya 435 Food Security and Resilience to climate shocks; Sustainable Infrastructure; accountability of public institutions Mauritania 195 Rule of law; health; sustainable agriculture and food security Niger 596 Social policies; Security and governance; food security; infrastructure Nigeria 512 Governance; health and nutrition; sustainable energy Sao Tome e Principe 28 Water and sanitation; sustainable agriculture Sierra Leone 376 State building; education; sustainable agriculture; infrastructure Somalia 286 State building; education; food security Swaziland 62 Social protection; sustainable agriculture and food security Tanzania 626 Good governance and development; sustainable agriculture; energy (www.acp.int/content/16-acp-countries-sign-national-indicative-programmes-eu) A B C © 2014 John Wiley & Sons Ltd. June 16th–July 15th 2014 Africa Research Bulletin – 20445

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Page 1: Africa - European Union

CITES warned Africa was suffering a“surge in poaching, in particular ofelephants”, and called for “even strongerlaw enforcement and demand-reductionefforts across multiple countries, toreverse the current dangerous trends.”

Organised crime syndicates and rebelmilitia increasingly use poaching to fundinsurgencies, reaping the benefits ofmulti-billion-dollar demand for ivory inChina where it is used as decoration andin traditional medicines. (© AFP 23/62014)

COOPERATION ANDTRADE

MADAGASCAR – USAGOA Reinstated

Following a return to democracy, thedoor to international trade reopens.

As anticipated, the US government rein-stated preferential trade status for Mad-agascar on its 54th independence dayanniversary, providing hope for thecountry’s embattled economy.

The 2000 African Growth and Oppor-tunities Act (AGOA) offers developingcountries duty-free access to some USmarkets, with the strict proviso that theirgovernments show progress on enhanc-ing democracy and human rights andupholding fair labour practices.

“The decision to reinstate Madagascar’sAGOA eligibility recognises the nation’sreturn to democratic rule, as well asPresident [Hery] Rajaonarimampianin-a’s commitment to promote transpar-ency, combat corruption, and beginrebuilding Madagascar’s economy,” saida US government statement.

The US suspended Madagascar’s freetrade status at the beginning of 2010,following a coup in March 2009 and thefailure of the transitional president,Andry Rajoelina, to make progresstowards holding elections.

Until the suspension, Madagascar hadbeen an AGOA success story. Thecountry exported on average over US$200m worth of goods a year under theagreement, with a peak of over $300m in2004, according to Zenia Lewis, aresearcher with the Brookings Institu-tion’s Africa Growth Initiative. Half ofall textile exports from the country,amounting to $600m, went to the US,and the textile sector was responsible forup to 8% of the country’s GDP.

The textile industry also played animportant role in poverty reduction inurban centres. In 2008, it employed morethan 100,000 workers, according toTakahiro Fukunishi of the Institute of

Developing Economies at the JapanExternal Trade Organization (JETRO).

In a paper published by JETRO in 2013,Fukunishi said Madagascar’s suspensionfrom AGOA had a larger impact on theeconomy than the political turmoil.Exports from Madagascar to the US fellby around 70%, and over 26,000 jobswere lost between 2008 and 2010.

Announcing the reinstatement decision,US Trade Representative Michael Fro-man said: “We are hopeful that Mada-gascar will take advantage of AGOA’spotential to create employment, expand

bilateral trade, and contribute to theeconomic well-being, security, andhealth of its people.” (IRIN 27/6)

Meanwhile the European Commissionerfor Development Andris Piebalgs visitedMadagascar in mid-June, to mark theresumption of cooperation with the EU,which had also been cut off in 2010.

Pielbags inaugurated the rehabilitationof a road destroyed by cyclones beforevisiting a health centre, an educationalregional directorate and a dam built forthe development of agriculture. (PANA11/6)

Africa – European Union

A total of more than €4.6bn of EU supportwas committed towards national develop-ment strategies in 16 ACP countries, in themargins of the ACP-EU Joint Council ofMinisters on June 19th–20th in Nairobi,Kenya.

Ministers from 15 African states (Botswana,Cote d’Ivoire, Djibouti, Ethiopia, Gabon,Ghana, Kenya, Mauritania, Niger, Sao Tomee Principe, Sierra Leone, Somalia, Swazi-land, and Tanzania) and one Caribbean(Suriname) co-signed the first NationalIndicative Programmes (NIPs) under the11th European Development Fund (EDF)for the period 2014–2020, with EuropeanCommissioner for Development AndrisPiebalgs.

The NIPs outline the strategies and prioritiesof how EU aid will be applied in a country.Up to three sectors per country are sup-ported. Each NIP is a result of closecollaboration between the EU and the part-ner country to reflect the government’s ownpolicies and needs, as well as ensuringsupport for national priorities where theEU has a value added.

“Europe remains ACP’s main developmentpartner, and it is determined to help itspartners exploit their potential to the full onthe way forward. . . The benefits of ourrelationship are clear. Since 2004, thanks toEU support, 14m new pupils enrolled inPrimary Education, over 18m children havebeen immunised against measles, and 70mpeople have been connected to improveddrinking water,” said a statement by Com-missioner Piebalgs.

The NIPs for the remaining ACP states arescheduled to be finalised and signed by early2015.

The financial allocation available for ACPcountries under the 11th EDF (covering2014–2020) amounts to more than €31.5bn.This is divided into grants (approximately€24.3bn for national and regional indicativeprogrammes; €3.5bn for intra-ACP andinter-regional cooperation; €1.1bn for theInvestment Facility managed by the Euro-pean Investment Bank (EIB); and €2.5bn tothe EIB for loans with reduced interest rates,which are mainly to be used to promote thepublic sector in ACP states.

Bilateral Funding Under the 11th EDF

Country € million Focal sectors

Botswana 33 Education; Public sector reform; measures in favour ofcivil society

Djibouti 105 Water and sanitation; food and nutrition securityEthiopia 745 Health; sustainable agriculture and food and nutrition security;

infrastructure and energyGabon 13 EducationGhana 323 Employment and social protection; governance;

sustainable agricultureCote d’Ivoire 273 Governance and peace building; agriculture; energyKenya 435 Food Security and Resilience to climate shocks; Sustainable

Infrastructure; accountability of public institutionsMauritania 195 Rule of law; health; sustainable agriculture and food securityNiger 596 Social policies; Security and governance; food

security; infrastructureNigeria 512 Governance; health and nutrition; sustainable energySao Tomee Principe

28 Water and sanitation; sustainable agriculture

Sierra Leone 376 State building; education; sustainable agriculture; infrastructureSomalia 286 State building; education; food securitySwaziland 62 Social protection; sustainable agriculture and food securityTanzania 626 Good governance and development; sustainable

agriculture; energy

(www.acp.int/content/16-acp-countries-sign-national-indicative-programmes-eu)

A B C

© 2014 John Wiley & Sons Ltd.

June 16th–July 15th 2014 Africa Research Bulletin – 20445