Economic Community of West African States
Communauté EconomiqueDes États de l’Afrique de l’Ouest
Maximizing the opportunities in ECOWAS / Framework for the promotion of Agribusiness by
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Framework for the promotion of Agribusiness by Development Partners: Role of Partners, Private Sector & ECOWAS Commission
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OUTLINEOUTLINE1 Introduction1. Introduction2. Role of ECOWAS Commission / Member
St tStates 3. Role of Private Sector
Outcome of the ECOWAS – China Economic & Trade Forum (e.g.)
4. Role of Development Partners5 Conclusion5. Conclusion
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Introduction
Y E ll M Bl i C P id tYour Excellency, Mr. Blaise Campaore, President of Burkina FasoExcellencies Ministers of ECOWAS MembersExcellencies, Ministers of ECOWAS Members StatesMembers of the Diplomatic CorpsMembers of the Diplomatic CorpsDevelopment PartnersCaptains of IndustryCaptains of IndustryDistinguished InvestorsChieftains of the MediaChieftains of the MediaDistinguished participantsLadies and gentlemen
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Ladies and gentlemen
INTRODUCTION cont’dCaptains of the Private Sector, Development Partners, Ladies and Gentlemen, there are enormous opportunities in the ECOWAS Member States as well as thethere are enormous opportunities in the ECOWAS Member States as well as the world at large that remains un/underexploited. As a result the region remains vulnerable to global crisis either directly or indirectly as has been experienced from 2008 as follows:.
Global Food CrisisGlobal Energy Crisis andgyMore recently Global Financial Crisis
The focus of this presentation is on the role of the following in the maximization of opportunities for ECOWAS Member States from themaximization of opportunities for ECOWAS Member States from the Global, Regional and sub-regional Community.
ECOWAS Commission / Member StatesPrivate Sector OperatorsDevelopment Partners
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Role of the ECOWAS Commission and Member States
The ECOWAS Commission and Member States response to the maximisation of opportunities has been among other things the creation of the following:
Establishment of a Private Sector Directorate in January 2007 to provide a single-point focus for the implementation of programmes leading to the development of the Private Sector p g g pin ECOWAS
Th M d t d b C il d d t d b thThe Mandate as approved by Council and adopted by the Authority following the creation of the Private Sector Directorate are as follows:
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Role of the ECOWAS Commission /Member States
MandateTo facilitate the achievement of structural transformation of the1. To facilitate the achievement of structural transformation of the Regional Economy and foster overall socio-economic dev’t by implementing programmes to improve the investment climate, i d i i d f i iincrease domestic investments and attract foreign investments;
2 Enhance competitiveness of the regional private sector through2. Enhance competitiveness of the regional private sector through promoting good corporate governance, supporting the provision of business development services, establishment of guarantee institutions and promoting the dev’t of indigenous entrepreneurshipinstitutions and promoting the dev t of indigenous entrepreneurship and Medium, Small & Medium Enterprises to foster pro-poor economic growth and sustainable development in the region;
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Role of the ECOWAS Commission /Member States
3. Facilitate the involvement of the Private Sector in the regional integration process through support to regional private sector institutions and theprocess through support to regional private sector institutions and the creation of relevant new ones;
4 Promote the development of a viable regional capital market with strong4. Promote the development of a viable regional capital market with strong linkages in all member states to facilitate the mobilization of investment capital and wealth creation;
5. Facilitate the establishment of multinational Joint Ventures, private-public partnerships and community enterprises in the region to promote regional investments employment and sustainable inclusive growth; andinvestments, employment and sustainable inclusive growth; and
6. Encourage West African entrepreneurs to develop and maintain links with Diaspora groups relevant continental and intercontinental bodies etc toDiaspora groups, relevant continental and intercontinental bodies etc to attract investment and its associated benefits to the regional private sector.
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Performance from January 2007 against Mandate
We focused our energies on the implementation of programmes to ensure the on-going delivery of the mandate as follows:going delivery of the mandate as follows:
• Mandate 1: Collaborated with stakeholders like the NEPAD Business Group C t d’I i ABR EU/Bi li USAID ADB t t t liCote d’Ivoire, ABR, EU/Bizclim, USAID, ADB, etc to present policy papers and organize policy dialogues aimed at improving the business and investment climate in the Region.M d t 3 O i d i l ti f FEWACC ECOWAS FEBWWE• Mandate 3:Organized revival meetings for FEWACC, ECOWAS – FEBWWE and FEWAMA to create a platform for the active participation of the private sector in the regional integration process.
• Mandate 6: Collaborated with the CCPIT/People’s Republic of China PRC) to organize the 1st ECOWAS – China Economic and Trade Forum in September 2008.
• Mandate 2: Through collaborative efforts with member states, civil society etc, there has been considerable improvement in peace, security and good governance and thus created the enabling environment for private sector d l
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development.
Performance from January 2007 against Mandate
From January 2007, we focused our energies on the implementation of t th i d li f th d t f llprogrammes to ensure the on-going delivery of the mandate as follows:
• Mandate 3:Commenced consultations with the business community towards ythe establishment of the ECOWAS Business Council as an advisory body of the Authority of Heads of State and Government on the promotion of investment and private sector in the region.
• Mandate 1,3&4 :Concluded the process for the development of the draft regional investment rules.
• Mandate 1,3 &4:Commenced the process for the development of the , p pCommunity Investment Code
• Mandate 1,3&4:Commenced the process of sensitizing the Investment Communities / Promotion Agencies on the rules. We facilitated the processCommunities / Promotion Agencies on the rules. We facilitated the process for the adoption of draft competition rules.
• Mandate 6:Organised the 1st ECOWAS Business Forum in Accra, Ghana in 2007 and are now organising the 2008 forum here in Ouagadougou
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2007 and are now organising the 2008 forum here in Ouagadougou
Creating an enabling environment for the Private Sector
We are fully aware of the urgent need to address the following jointly withWe are fully aware of the urgent need to address the following jointly with the member states to create an enabling environment for the private sector to develop and thus maximize opportunities:
Peace Security and Good GovernancePeace, Security and Good GovernanceWell developed infrastructure i.e. Roads, Rail, Air and Sea Transport as well as Energy etcThe promotion of Agriculture within a well co ordinated policyThe promotion of Agriculture within a well co-ordinated policy framework.Market access – Intra-regional and global
I am happy to update you on actions taken to date:Regional Peace and Security
The security situation in the region has improved generally with signs of stabilization in many areas.The joint efforts by ECOWAS and Member States in promoting dialogue
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The joint efforts by ECOWAS and Member States in promoting dialogue, preventive diplomacy and peace building have led to a steady improvement in security in Côte d’Ivoire, Guinea Bissau, Guinea, Liberia and Sierra Leone.
Creating an enabling environment for the Private Sector
Regional Peace and Security Cont’dRegional Peace and Security Cont dThe region made further strides in the democratization and electoral processes by conducting peaceful, free and transparent elections in several Member St tStates.However, banditry, hostage taking, human and drug trafficking, proliferation of small and light arms poses a threat to the gains made.Private sector can contribute to peace building and lobbying governments/national parliaments to ratify and domesticate the following protocols to consolidate the gains made so far:
Protocol on the Fight Against Corruption, Supplementary Protocol on Democracy and Good Governance andECOWAS convention on small arms and light weapons, their ammunition and other related materials.Private sector can also report possible crises issues to the 5 observation and monitoring centres in the region
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Creating an enabling environment for the Private Sector
INFRASTRUCTURE - ENERGYHis Excellency Joao Nino Bernado VIEIRA President of Guinea BissauHis Excellency Joao Nino Bernado VIEIRA, President of Guinea Bissau nominated by your Excellencies to co-ordinate the regional energy programmeRegional action plan on energy developed with the following major programmes:programmes:
The West African Power Pool (WAPP) and West African Gas Pipeline (WAGP) Project,
- ECOWAS/ UEMOA Energy access programme, - A special energy programme for Cape Verde and the WAPP Emergency Power
Supply Security Plan (EPSSP) has been set up to tackle the regional energy shortage situation.
High-level visit to Trinidad and Tobago to follow up on the sharing ofHigh level visit to Trinidad and Tobago to follow up on the sharing of experiences regarding harnessing of gas resourcesECOWAS Commission is collaborating with China to:
Develop West Africa’s electricity infrastructurep yConstruct four (4) Power Stations and a Dam to boost electricity supply to Cote d’Ivoire,
Construct rail links between Benin and Niger
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10 MOUs signed in various sectors including agriculture, engineering, funding, et
Creating an enabling environment for the Private Sector
Agriculture - Sustainable Food Production ECOWAS Common Agricultural Policy in place
A Rice Forum was organised by ECA & ECOWAS Commission in Mali in October 2008 to discuss and agree a Roadmap for the production of Rice Commercially in the region
A follow-up meeting on Rice was organised by NEPAD Business Group with the support of the Commission in Nigeria in November 2008 Similar meetings will be held in selected Rice Producing Countries in the Region in 20092009
2nd ECOWAS Business Forum on Agro-business
Expect the private sector to invest fully and drive the initiatives
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Creating an enabling environment for the Private Sector
Agriculture Cont’dECOWAS Council of Ministers meeting held May / June 2008 proposed a regional offensive approach to the food crisisregional offensive approach to the food crisis.Within the ECOWAP framework investment programmes are being developed by member states to identify gap funding in short medium and long term.gTo fund this regional Investment Programme, ECOWAS Commission with the support of French Government and EU organised a fund raising in Paris on 9th December 2009
Obj ti T t bli h liti l di l f th tt ti f I t tObjective: To establish a political dialogue for the attraction of Investments in Agriculture and to secure funding support for ECOWAP Outcome: Three main actions agreed as follows:
Member states and the Commission to finalise the national and regional gAgriculture investment programmes by end of February 2009ECOWAS Commission to consolidate these programmes and present to the Ministers of Agriculture, Trade and Finance of the member states in July 2009 for the funding required to be agreed by the Ministers.
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g q g yECOWAS Commission to organise a meeting with the Development Partners in October 2009 to seek their buy-in for the Investment programme and also for them to finance the project.
Creating market access for the Private SectorTo address the market access issues:
The Business Forums we are organising within the Region and with g g gcountries such as China, India etc with more interests coming from Brazil, Iran, the Gulf etcNegotiating Trade Agreements with EU and Emerging MarketsNegotiating Trade Agreements with EU and Emerging Markets
A regional agreement is scheduled for June 2009 and this will supersede the interim EPAs initialled by Côte d’Ivoire (now concluded) and Ghana.
The outstanding areas in the EPA negotiation include the issues of :market access in terms of sensitive products and rules of origin,formulation of development programmes and their financing, and drafting of West Africa’s legal text.
Other areas of divergence are the financing of EPA development programmes g g p p g(fiscal and economic costs of roads, electricity, etc) and the transition period.
Discussion on this is in progress
Common External Tariff (CET): Closely related to the EPA negotiation is the adoption of a CET that is development-friendly.
The aim of a development-friendly CET envisages the possibility of the creation of a 5th band. At its last meeting held in Banjul, the ECOWAS Ministerial Monitoring Committee on EPA recommended a 5th band of 35 percent
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recommended a 5 band of 35 percent.
Outcome of the China – ECOWAS Trade & E i FEconomic Forum
Jointly by ECOWAS Commission and the China Council for theJointly by ECOWAS Commission and the China Council for thePromotion of International Trade (CCPIT) – 23rd to 26th Sept ‘08:
Following the successful Sino-Africa Forum in Nov 2006
In line with the Departmental Mandate already presented
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Performance against KPI’s
More than 400 participants from ECOWAS travelled to CChina and participated in the Forum in Beijing and about 200 participated in the Wuhan Forum
514 private and public sector operators registered to attend the Forum as at 15/8 (closing date)the Forum as at 15/8 (closing date)
490 visa invitations were issued by CCPIT as against the490 visa invitations were issued by CCPIT as against the max. of 450 agreed
Large number of requests to register to participate in the Forum received after the 15 August 2008!!
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Final List of participants mobilizedItem No. Participating Country Or Participating Organization Number of Participants Remarks
1. The PROMOTERS 38
2 Th S b R i l O i ti /G i 202. The Sub – Regional Organisations/Groupings 20
3. Benin 24
4 Burkina Faso 12
5 Cape Verde (Cabo Verde) 05 Cape Verde (Cabo Verde) 0
6. Ivory Coast (Cote d’Ivoire) 52
7. Gambia 3
8. Ghana 81
9. Guinea 41
10. Guinea Bissau 4
11. Liberia 0
12. Mali 2
13. Niger 7
14. Nigeria 173
15 Senegal 315. Senegal 3
16. Sierra Leone 12
17 Togo 43
GRAND TOTAL 514
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Performance against KPI’s
More than 600 Chinese Public / Private sector t d G t d l t i l di thoperators and Government delegates including the
Vice – Premier attended the ForumM bili ti f B k bl / Fi bl P j tMobilization of Bankable / Financeable Projects
Total Value of Projects mobilized - $38bn Regional Infrastructure Projects - $25.8bnPrivate Sector Project - $12.2bn
Firm interests expressed by Large ChineseFirm interests expressed by Large Chineseorganizations in selected Projects during the F US$8b (A l t i i !!)Forum:US$8bn (A lot more coming in!!)
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Performance against KPI’s
9 MOU’s and 1 Power of Attorney signedPartnership and Economic Relationship with CCPITChina State Construction Eng. Corp LtdChina Gezhouba (Group) CorporationChina Gezhouba (Group) CorporationChinaways Cattle and Sheep Industrial GroupChina Optimization Society of Capital Constructionp y pNanjing Municipal Peoples’ Government – ECOWAS MarketChi M j B id E C LtdChina Major Bridge Eng Co. LtdGET International – Gao Wei (Power of Attorney)Fenis Impex (Nigeria) / Wuhan Kaidi Holding Invest CoFenis Impex (Nigeria) / Wuhan Kaidi Holding Invest Co.
Evidence of the success of the Forum – Jointoperationalisation of MOU’s with member states required
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Next Steps
Draft Action Plan developed covering 4 main categories and will be presented in the next slidesand will be presented in the next slides .
Full support of member states required to implement the action planFull support of / participation of Private Sector Operators absolutely critical
Broad categories of the Action Plans are as follows:Broad categories of the Action Plans are as follows:Plan A: Policy decisions and administrative actions to be taken by ECOWAS Commission to set up a mechanism to manage the ECOWAS – China relationsPlan B: Actions to be taken by ECOWAS Commission and CCPIT to institutionalize and manage the ECOWAS – China relationsPlan C: Actions to be taken by ECOWAS Commission in respect of infrastructure development in ECOWASdevelopment in ECOWASPlan D: Actions to be taken by ECOWAS Commission in respect Private Sector issues
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2009+ Priority ActionsIn summary, the priority actions for the years ahead include:
Develop Regional Infrastructure i.e. Energy and TransportImplementation of the action plans agreed in the Guinea Bissau andImplementation of the action plans agreed in the Guinea Bissau and Yamoussoukro Meetings on Energy and InfrastructureTake off of the Project Preparation and Development Unit (PPDU) to assist the Commission in packaging strategic projects.Commission in packaging strategic projects.Promote PPPs in infrastructural development
Implement ECOWAS Common Agricultural Policy (ECOWAP)Unique opportunity to re launch West African Agriculture as a business forUnique opportunity to re-launch West African Agriculture as a business for sustainabilityImplement actions agreed in the fund raising meeting organised in Paris on 9/12
I t if ff t t b i t f t fIntensify efforts to remove barriers to free movement of persons/goodsProceed with EPA negotiations and deliver:g
Customs UnionEffective functioning of free trade zone
Pursue other partnerships with emerging markets such as ChinaPursue other partnerships with emerging markets such as China, India, Brazil, Turkey etcEngage the private sector more in regional integration 22
Role of Development PartnerspAs we pursue our agenda of achieving our vision of an “ECOWAS of People” by 2020, we need the following support from our Development Partners:
Provision of support for capacity building of:The Regional Bodies and Associations e.g. start-up cost for the reactivation of RegionalThe Regional Bodies and Associations e.g. start up cost for the reactivation of Regional bodies etcThe relevant ECOWAS institutions within the Commission and Member StatesThe funding of relevant projects in the Capacity Building area e.g. Studies, sensitization workshops etcworkshops etc
Provision of funding (concessionary loans, grants etc) for on-lending to Micro, Small and Medium Enterprises – One of the vehicles for tackling extreme poverty directly:
E.g. is the Spanish Fund granted to ECOWAS Commission for the establishment of Business Incubators for African Women Entrepreneurs
Simplification of rules and procedures for the accessing of funds under the various support schemesvarious support schemesSupport ECOWAS to lobby against unfair trade practices that limit market access products from ECOWAS RegionCo-sponsorship for the organizing of Fora as appropriate e g EU co-
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Co sponsorship for the organizing of Fora as appropriate e.g. EU cosponsorship of an Economic and Trade Forum in one of the European Countries etc
Role of the Private SectorIn conclusion, having created the enabling environment for businesses to thrive and grow we expect the private sectorbusinesses to thrive and grow, we expect the private sector
operators to:
Take advantage of the collaboration opportunities created through the fora organized to:
Enter into partnerships, joint venture arrangements with local, sub-regional / regional and Global business operatorsregional and Global business operatorsPublic – Private Partnership arrangements especially in infrastructure, Agriculture etc that are becoming available e.g. co-enterprise on Rice initiative!Enter into technology transfer arrangements to improve their operationsgy g p pContribute to Private Sector policy and strategy development at the country and sub-regional level – thus ensuring that policies and strategies address their needs
Scale up its investment in all sectors, particularly Agriculture, Infrastructure d T i i il bl hi f kand Tourism using available partnership frameworks, etc
Support the efforts of the ECOWAS Commission by campaign vigorously against barriers to free movement of goods and persons, including barriers to ECOWAS goods in foreign markets
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to ECOWAS goods in foreign marketsParticipate and sponsor more ECOWAS programs in the coming years
THANK YOU FOR YOUR ATTENTION
Merci beaucoup pour votre p pattention
ObrigadoObrigado25
