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Decision-makers meet to make 2005 Africa's year

24th January 2005

By: jenny furness

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African decision-makers and their international development partners, comprising the Strategic Partnership with Africa (SPA), met last week in Johannesburg to discuss reducing poverty and accelerating progress towards achieving the Millennium Development Goals (MDGs), set against the backdrop of 2005 being earmarked as the year of Africa.

The meeting, which was chaired by the World Bank, heard candid views from African governments and the donor community on the issues of increasing aid, debt relief and boosting trade.

World Bank vice-president for the Africa region Gobind Nankani said at a press conference following the two-day meeting, that, with 2005 being designated as Africa's 'special year', there will be many opportunities to deal with the stagnant aid, removing barriers to trade in Africa and finding solutions to debt relief.

He also said that with the UK chairing the G8 heads of State meeting and having the presidency of the European Union for the latter half of the year, Africa will receive much of the world's attention.

Nankani added that the UK proposal on debt relief is an attractive one and hopes to see the other donors implementing the project.

He said that members of the SPA agreed on the concept of 'shared growth' at the meeting and the MDGs are not attainable unless there is a strong foundation based on 'shared growth' policies.

Shared growth is growth that benefits the often marginalised sections of society, such as the poor, rural dwellers, women and the youth.

The meeting noted the importance of reaching a new global trade accord, with a phase-out of agricultural subsidies to level the playing field for Africa's exporters and better market access, initially through less restrictive rules of origin. In this regard, the meeting also called for the reduction of escalating tariffs for Africa's processed exports.

In terms of private sector development, Nankani said there was strong endorsement by all African participants of the viability of the private sector approach.

“There is a willingness by the private sector to proactively promote dialogue with Africa,” he said.

Although, he added, that it requires certain actions by African governments in order to facilitate large-scale private sector investment.

“Some changes by government can make a big difference,” Nankani said.

The meeting also agreed that there was strong evidence of positive progress in African performance but that Africa will require a substantial increase in the levels and predictability of development assistance if it is to fund the infrastructure requirements, social services and capacity needs necessary to reduce poverty significantly.

“It is worrisome that the commitments that world leaders made in Monterrey have not led to an increase in the amounts of official development aid received by African countries,” Nankani commented.

He said the World Bank lending to Africa is expected to be $4,4-billion to $4,5-billion in 2005, up from $4,2-billion last year.

This lending will be performance-based and the World Bank's in-house indicator, CPIA, will be applied to African countries and the results published this year.

This indicator is based on evaluations of sound economic management, social development and good governance.

The membership of the SPA includes the World Bank, International Monetary Fund, African Development Bank, Belgium, Benin, Burkina Faso, Cameroon, Canada, Denmark, United Nations Economic Commission for Africa, Ethiopia, European Commission, Finland, France, Germany, Ghana, Ireland, Japan, Kenya, Mozambique, Netherlands, Norway, OECD/DAC, Rwanda, Senegal, Sierra Leone, Sweden, Switzerland, Tanzania, Uganda, United Kingdom, UNDP, and the US.

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