Consolidated report of the activities of ECA-sponsored regional and subregional institutions for the biennium 1980-1981

UNITED NATIONS

ECONOMIC AND SOCIAL COUNCIL

Distr.: GENERAL

E/ECA/TPCW.3/9

10 April 1982 Original: ENGLISH

ECONOMIC COMMISSION FOR AFRICA

Third Meeting of the Technical Preparatory Committee of the Whole

Tripoli, Libyan Arab Jamahiriya, M9-23 April 1982

CONSOLIDATED REPORT OF THE ACTIVITIES OF ECA-SPONSORED REGIONAL AND SUBREGIQNAL INSTITUTIONS FOR

THE BIENNIUM I98O-I981

r

M82-816

e/ecVtpcw.3/9

COLISOLIDANTEi) R^FO.-iT OF THE iiCTiVITILo Of1 LCA-SPONSORED REGIONAL AIM, SUBtfEGIOIiAL INSTITUTION FOR

TIE BISI^IUji I9SO-I9OI

Introduction

The seventh meeting of the SCA Conferencs of Ministers held in Freetown in April 1981

adopted Resolution 409 (XVI) on liCA-sponsored regional and subre^ional institutions which,

inter alia, directed the lixecutive Secretary of iSCA to "submit biennially a consolidated report on regional and aubregional institutions sponsored by the Commission. The present paper is the first attempt by the secretariat to compile such a report and covers the ffciennium I98O-I98I.

U

To assist in the preparation of the report, the Chief Executives of each institution

uere requested to submit to "CA a summary of th-..ir institution's activities during I9SO-I9CI.

Although the amount of time available was short, the task was made more manageable by having the heads of these institutions submit their reports through the chairmen of their

respective Working Groups. It will ba recalled that five ^orkin-:-; Groups were established

during the inaugural Conference, comprising 24 JCA-sponsored regional and subregional

institutions broadly grouped according to their fields of specialization. These fields are: financial and banking services (comprising four institutions); earth resources

services (five institutions); industrial development and services (six institutions);

social, economic development planning and management (six institutions); and trade and transport (three institutions).

The chairmen of the five /forking. Groups were requested to prepare consolidated biennial

reports (work programmes) based on details submitted by the institutions in their own

fields of specialisation. The reports so far received have bevn put together and are

contained in the present document.

|-- I- >'"CX"iKINC- GROUP OU FBj^TC^ i^L BAKING S

The Working, Group on Finance and Banking Services is composed of the following

institutions:

(.a) The West African Clearing House;

(b) The African Development Dank;

(c) The Association 01 African Central Banks;

(d) The African Centre for Monetary otudies

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Page 2

A, riest African Clearing House

The I980/8I financial year l/ was marked by a significant increase in the volume of trade and other transactions channelled through the clearing mechanism. Total transactions

for the year amounted to WAUA 167,650,305.25 2/, or an increase of 54-74 per cent over the

NAUA 108,349,431 recorded in the preceding year.

In pursuing its efforts to promote trade among the countries of the member "banks,

the West African Clearing House organized a seininar in October I98O for the countries in

the second group. As at the seminar for countries in the first group, which was held in March I98O, the topics discussed centred on the operations of the /Jest African Clearing House and the role of commercial banks in promoting intra-tfest African trade. Apart from the representatives of each of the national commercial banks, participants included

representatives of the ministries of Finance and Trade and the national chamers of ^

commerce of each of these countries. Several international organizations, from both within and outside the subregion, also participated in the seminar. A synthesis of the reports and recommendations of "both group seminars was made at the joint meeting of all central

and commercial banks of the subregion held at I^eetown, Sierra Leone, in November I98O.

Some of the studies recommended have been included in the request for USDP assistance during the 1982-1986 cycle.

A workshop for the technical operators of the Clearing House in each of the member central banks was held at Freetown, Sierra Leone, in December 198O, to Golve sonic of the operational problems encountered in the execution of transactions through the clearing mechanism. The result of the workshop has been a remarkable increase in the operational efficiency of all concerned.

As a result of the annual meetings that have been held since Liay 1977 by the commercieJ.

banks of the subregijn under the auspices of the iast African Clearing House, the IVest African Bankers Association was formally inaugurated in August 1381. It is hoped that this association's work will immensely faciliate intra-Uest African trade.

During the 19CO/8I financial year, the tfest African Clearing House attended the three©

meetings of the Eastern and Southern Subre^ional Committee of the Association of African Central Banks which discussed that subregion's draft protocol on the establishment of a clearing house. The final protocol has now been signed by some of the member States.

s« African Development Bank Group

1. Background

The African Development Bank (aDB) is an international development finance institution with participants currently comprising 50 African States and membership open to all

independent African countries. ADE was established by the Articles of Agreement signed at Khartoum, the Sudan, by 30 independent African States in August 1963. ADE has its

headquarters at Abidjan, the Ivory Coast.

l/ tfACH financial year is from 1 September to 31 August.

2/ 1WAUA (.Jest African Unit of Account) is equivalent to 1 SDR (special drawing

right) of the International Monetary Fund.

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Page 3

ADB was a co-operative response by African States, most of them newly independent,

to stimulate economic and social development in order to raise the living standards of their people. The attainment of these objectives has been made difficult by many adverse factors affecting the African region, especially shortage of capital, poor technology, limited markets, and the vagaries of nature. ADB was established to help overcome some of these critical problems* Accordingly, the Bank*s principal function under the Articles of

Agreement is to use the financial and technical resources at its disposal for the promotion of projects and programmes which can contribute to the economic and social development of its member countries. In this exercise, the Bank is also required to pay special attention to investments which are multinational in scope in order to foster intra-African trade and development. Additionally, ADB is enjoined to co-ordinate its efforts with other regional, enternational, and bilateral institutions with similar concerns for the development of' the

"African region.

Under the Articles of Agreement, ADB is authorized to establish or be entrusted with the administration of special funds which are consistent with its purposes and functions.

The African Development Fund (ADF), established with the participation of non-regional States in 1972> and the Nigerian Trust Fund (NTF), established with the Nigerian Government

in 1976, both fall in the special funds category, and together with the Bank form the

ADB Group. ■ - -

2. Capital and resources

Under the terms of the Articles of Agreement, subscriptions to the authorized capital of ADB are restricted to the African member States, although negotiations to establish arrangements for non-regionals to participate in the cpaital of the Bank are. currently in progress. The subscribed capital of ADB is made up of the paid-up and the callable portions.

The initial authorized capital of ADB amounted to $US 250 million, but by the end of had risen to about $US 1,620 million. Likewise, the subscribed capital rose from

218 million in 1968 to $US 1,620 million at the end of 198O, with respective paid-up portions of $US 105 million and SU3 405^million. The substantial increase in the equity base

is a reflection of the momentum gained by the Bank's operational activities since the mid-1970s and of the active support of member countries.

3» ADB Group loan operations

In its initial years, ADB was engaged in the development of an operational machinery and the formulation of investment projects to which the limited resources of the Bank could most profitably be directed. Actual loan operations were therefore on a limited scale in those foimative years. The Bank commenced operations in 1967 with only one loan, amounting to $US 2.3 million.

Beginning in 1974, ADB loan operations were supplemented by the ADF and NTF funds.

The total ADB Group loan portfolio rose from $US 252.53 million for I968-I974 to

$US 2,851.3 million during 1975-1981, an increase of about 11 times. Total Group lending

for 1981 was $LJS 635,53 million, an increase of 11,3 per cent over I98O0 As of 31 December

1981, cumulative Group lending was $US 3,106.6 million, 20 per cent more than the previous

year. ADB loans represented 5O.8 per cent of the Group's new loan commitments in 1981, with ADF and NTF representing 49 and 0,2 per cent, respectively.

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Page 4

As shown in table 1 on sectoral allocation of ADB Group funds, agriculture is receiving

increasing priority and is the largest sector for the Group as a whole. Agriculture

(including rural development) received a total of 28.6 per cent of ADB Group lending in 1981, compared to 27.4 per cent in 198O. Cumulatively, agriculture has received the largest share of Bank Group lending: 26.3 per cent as of 31 December 198I. Transport and public utilities are the next largest sectors, with 24.8 and 25.2 per cent respectively of

cumulative commitments.

(a) Loans made by the African Development Bank

At the end of December, 1981, ADB cumulative lending was UA 1,335-02 million, and the dominant sector was public utilities (table 2). In spite of this over-all emphasis, however, the percentage share of agriculture more than doubled between 198O and I98I,

indicating the increasing importance of the agricultural sector in the Bank's lending { policy. Between I98O and 198lfthe share of education and health lending increased marginally, while lending for transport and industry declined. At the level of UA 277.5 million,

total ADB lending grew by 19-2 per cent in I98I, as against 11-9 per cent in 198O. A total of 35 projects were approved for 24 countries, and the average amount of loans was

UA 7.93 million.

(b) Loans made by the special funds of the ADB Group (i) The African Development Fund

The African Development Fund was established in 1972 by the African Development Bank,with participation of non-regional countries. The main objective of the Fund is to mobilize soft funds for the development 'of. ADB member countries. In particular, Fund resources are eoant to give special assistance to the poorer members of ADB by granting interest-free long-term loans to important rural and social development projects.

Fund resources are dependent on periodic replenishments from the participants.

The first ADF tranche, about $US 327 million, and now wholly utilized, covered the period 1976-1978. The second tranche, $US 712 million, is expected to be totally used by the end of 1981. The third replenishment, for 1982-84, has been negotiated to $US 1.1 billion.

By the end of I98I, cumulative Fund lending stood at FUA 1,190,76 million.

The sectoral allocation of Fund loans reflects the priority attached by the ADB Group to agriculture and infrastructure. Thus, of cumulative ADF lending, 38.1 per cent went to agriculture. 25.9 per cent to transport and 16.3 per cent to public utilities [table 3J.

The desire to direct a greater proportion of the Fund's softer loans to the poorer members of ADB is reflected by the fact that, of the 25 countries covered in the 1980 lending programme, 19 were in the Fund category of lowest-income countries. (1976 GNP per capita below $US 280).

At a level of FUA 290.22 million in 198I, ADF commitments were 25 per cent

greater than in 198O. A total of 36 projects were financed, covering 26 countries, and the average loan size was MJA 8.06 million. Sectoral allocations in 198I corresponaed to the

cumulative shares, representing an emphasis on agriculture (35-3 per cent;, tranport

(21.9 per cent) and public utilities (l6.1 per cent), as shown m table 3.

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Page 5

The fund commitment for studios in 1981 represented only 0.4 per cent of total commitments. This was an important shortfall with regard to the Fund'& target of 2,5 per cent. It is expected that the establishment of a technical assistance account for studies will encourage member countries to come up with study loans.

(ii) The Nigerian Trust Fund

The Nigerian Trust Fund was established by an agreement signed between the Bank and the Nigerian Government in February 1976. The purpose of NTF is to assist the development efforts of ADB members, particularly those in more needy circumstances, by extending loans

at terms less onerous than the conventional ABB terms (4 per cent interest compared with

8 per cent for ADB).

^ Much of 198I was taken up by discussions between the Bank arid the Nigerian Government regarding the modalities for replenishing the Nigerian Trust Fund. The amount agreed upon was 50 million naira (about $US 90 million). ■ . - .

Only one loan was made by the Nigerian Trust Fund in I98I ? consisting of

UA 1.2 million to the Government of the United Republic of Tanzania. The loan was to finance

80 per cent (representing the entire foreign exchange cost) of the total cost of the Kapunga/

Madibira Rice Study. During I98O, only one loan was made, for UA 1 million, to Sao Tome and Principe. This loan was to finance 8l.3 per cent of the total cost of the Seuj Tome airport feasibility study.

rfith this loan, the cumulative lending of NTF at the end of I98I stood at 3UA 66.57 million, compared with 3UA 65.37 million in I98O, representing a growth of 1.8

percent. Transport has received the largest share of cumulative lending (27.6 per cent),

followed by energy (19.2 per cent) and telecommunications (15.2 per cent).

(c) Special operations

_ (i) Sifida Investment Company (Societe Internationale Financiere pour les ■ Unvestissements et le DeVeloppement en Afrique 3.A.): The purpose of the Company i's to

promote private investment in independent African States. ADB participation amounts to

$US 0.39 million. Other shareholders include private and public institutions in 3urope, North America and the Kiddle East.

(ii) Africa-Re (African Reinsurance Corporation): The Corporation aims at the

development of the insurance and reinsurance industry in Africa. ADB participation amounts to $US 1 million, out of an authorized capital of $US 15 million. The other shareholders are the ADB member countries.

(iii) Shelter-Africrue t This project is expected to commence operations during 1982, with the purpose of assisting in the construction of private dwellings for middle-

and lower-income groups in the African region. The committed Bank participation is about

$US 10 million.

During I98I, consideration of Bank-initiated studies by the Final Preparatory Meeting, held at Arusha, the United Republic of Tanzania, culminated in the approval of a Memorandum of Understanding for the establishment of a $US 40 million housing finance

e/eca/tpcw.3/9

PatfG 6

institution "by 17 ADB member countries and the setting up of a five-member Co-ordinating

Committee comprising Egypt, Gabon, the Ivory Coast, Sierra Leone and the United Republic

of Tanzania.

The Committee, which was mandated to take all steps leading to the incorporation • of Shelter-Afrique, held its first and second meetings at Abidjan in November and December

198l- It also convened in Abidjan on 9 and 10 December 1981 a meeting of the Ebunder Members

which was attended by 23 countries and at which Kenya was selected as the country of incorporation. The potential shareholders ard scheduled to meet at Nairobi on 22 and 23

March 1982 to consider and sign the Constituent Charter, the Statutes and the Headquarters

Agreement of Shelter-Afrique, This meeting will be followed on 31 May 1982 by the General Assembly of the company. Shelter-Afrique is scheduled to become operational by the third

quarter of 1982. m±

(d) Co—operative programmes

(i) Technical assistance co-operation

The Bank's technical co-operation programme consists of bilateral arrangements under which non-regional States provide grant funds for project feasibility studies, short- term consultancy services and the training of ADB staff members. Cumulative grants received by the Bank under the Technical Assistance Programme amounted to UA 29,9 million at the end

of I98I. The funds have financed 69 completed studies, with 22 under way and 10 others still

in the negotiation process. Of the 69 studies completed, 45 resulted in projects financed by the Bank Group.

In 1981, the Bank Group received under bilateral technical assistance agreements

an amount of UA 5*42 million for consultancy and studies, representing an increase of 20

per cent over 1980, This amount was provided by the United States of America (UA 1.4 million), Belgium (UA 1.33 million), Denmark (UA 0.75 million), Switzerland (UA O.64 million), Canada

(UA O.48 million), Finland (UA 0.35 million), Sweden (UA 0.32 million) and Norway (UA 0.15 million). Japan directly financed two studies in member countries, fll

(ii) Inter-institutional co-operation

During I98O-I98I, the ADB Group continued its close and fruitful co-operation with the World Bank Group and with United Nations organs and specialized agencies (UNDP, WHO,

UNESCO, FAO, IFAD, ITU and UNIDO). Other rewarding co-operation programmes involve OAU,

CADA, WFC, regional development banks, OPEC and the Arab funds for Development (Saudi,

Kuwait, Abu Dhabi). Benefits obtained included consultations on crucial development issues,

staff training and exchange, project preparation, and co-financing.

In order to contribute to the training of staff of- member countries, the Bank has organized seminars in French and English for the staffs of national development banks and of government agencies responsible for the administration of loans received from the Bank and from other international institutions.

E/ECij/TPCW.3/9

' 7

4° Measures rolatino to AJB contained in the Lagos Plan of Action

The ADB Group entered the 1980s confronted with "bleak prospects for the economies of most of its African member countries,, This position did not improve significantly in I98I.

• The majority of countries registered growth rates between 0 and 5 per cent; because of rapid population growth, Ee,r_ca^ita. GDP is estimated to have fallen in many countries. Positive economic growth and development were impaired by dependence on expensive imported fuel, a

tripling of over-all blance-of-payrnents deficits, declining commodity export prices, inadequate infrastructures, and a weak food situation. At the same time, inflationary and recessionary trends persisted.

In response to these extreme economic difficulties, African Governments drew up the

tCDs°s ?lan of Action in I98O* Essentially, it calls for realistic plans for future economic

development in the African region. Within this framework, the Plan emphasizes the importance of a regional approach to balanced resources development and stresses the need for self- sufficiency in food production by the end of the present decade. To realize the objectives of the Plan, African Governments noted the importance of increased financial assist-ance from the developed countries and international institutions. In particular, the Lagos Plan of Action states that "ADB should be financially strengthened so that it may be able to offer more assistance ;o African countries, particularly the least developed ones among them."

The Lagos Plan of Action contains recommendations with respect to the major sectors of '.

development; especially food production and security, natural resources and energy, human _csource development; transport and communications, trade and finance, and the least developed countries. The following examples illustrate'what the ADB Group has done during I98O-I98I to promote the objectives of the Plan in those areas.

(a) Food production and security

In. response to the Lagos Plan of Action in general, and the initiative of the World Food Council in particular, the ADB Group is assisting member countries in preparing national j^ood sector strategies. Assistance in drafting the terms of reference for such a strategy

J-s provided to the Government of Madagascar in I98I. The ADB Group is also prepared to

play the role of lead agency to obtain the-technical experts needed to assist member countries

in carrying out the actual studies.

In terras of projects, 25 loans were approved for agricultural and rural development

projects directly r^la^cd to food production during I98O and I98I, as shown in table 4.

These exclude tea and coffee projects, which arc basically export-oriented.

(b) Natural _resources and energy

The ADB Group approved eight electric power projects during I98O and 1981, as shown in table 5U To develop policy guide-lines, a study was launched to examine the scope of the

energy problem in selected member countries and the role that the ADB Group can play in assisting them, In addition to the electricity sector, the study examines new and renewable

~*'--rgy resource development possibilities for these countries.

(c) Human resources development

The ADB Group contributes to human resources development in its member countries through

both project loans and direct training efforts. In I98O and I98I, the Group financed

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Page 8

13 projects to provide "both training and services in the areas of health and education

(table 6)0 Through its Training Centre, the Group regularly organizes project preparation

and implementation- courses for staff from government and parastatal organizations. Furthermoret.

institution-building is always a major component of the Group's projects. All these measures are aimed at increasing member countries' capacity to absorb development resources.

(d) Transport and communications

The Transport and Communications Decade for Africa (1978-1988) forms part of the ADB

Group's strategy in drawing up projects. The Group has associated itself with the subregional programme of SADCC and projects have been identified to that effect. The expanded PANAFTEL programme has been included in the co-operative agreement between the Group and PANAFTEL,

Baring 1980 and I98I, the ADB Group financed 34 loans for roads and other transportation and communications projects (tables 7 and 8).

(e) Trade and finance

The ADB Groups activities in the dovolopaant of the financial sector relate mainly to

the eventual establishment of an African Monetary Union. The Lagos Plan of Action has suggested that the ADB Group, together with the African Centre for Monetary Studies and the Association o.f African Central Banks, should prepare a study in 1982 outlining stages and steps to be undertaken during the period up to the year 2000 to realise this objective.

This matter is under consideration. The AD3 Group's participation in trade policy has been mostly indirect, through participation in meetings on commodity arrangements and trade relationships, such as ACP-EEC.

(f) Least developed countries

The lending policies of ADF and NTF specifically place primary emphasis on assistance to the least developed countries. During 198O and 1981, 64.2 per cent of the ADB Groupfs loan commitments went to the countries in the lowest income category of the Group's

classification (GNP per capita below $280 as of 1976). ADB also participated in the United

Nations Conference on the Least Developed Countries.

Table1, SectoraldistributionofADB Sector Agriculture Transport Publicutilities Industryanddevelopmentbanks Educationandhealth TOTAL

Group 1981 I8I.58 131.28 132.04 121.52 69.IO 635.53

loans,1980, Percentage oftotal loans

28.57

20.66 20.78 19.12 IO.87 100.00

1981and 1980

136.47

143.46 103.64 130.40 36.87 570.84

Cumulative(ili] Percentage oftotal loans 27.41 25.13 18.16 22.84

6.45

100.00

LlionsofUSdollars) i^rcenta^o ofloans Cumulativeasof amount31Jtec.1981 816.63 772.49 782.00

487.47

248.01 3,106.60

26.29 24.87 25.17 15.69 7.98 100.00 NotejDetailsmayfailtoaddtototalbecauseofrounding. ••tfo Uqf

Table2. Sectoral_distributionofABBloans,198Qtig8landcumulative(Ki11ionsofBUl)- Sector1981

Percentage oftotal Inane;1980

Percentago oftotalCumulative loansamount Agriculture60.5821.83 Transport54-3019-57 Publicutilities70.3225.34 IndustryADevelopmentBank82.3029.66 Educationandhalth10.003.60

23.90 55.30 58.03 37.50 8.00

a/ 1 BUA was equal to $US 1.16396 in 198I.

Tercon-cage ofloans asof 31Doc.1Q01 10.27 23.76 24.93 37.60 3.44

226.62 315-86 429.35 335.19 23.00 277.50100.00232.73100.001,335.02

23.6o 32.16 25.10 2.10 100.00

©o o vo

Q

Table3. SectoraldistributionofADF] Sector Agriculture Transport Publicutilities

—— Industryanddevelopmentbanks Educationandhealth TOTAL

1981 102.30 63.50 46.82 24,00 53.60 290.22

.ocns_2380,_ Percentage oftotal loans 35.3 21.9 16.1 8.3

I8.5

100.0

1981 _128C 107. 61. 25. 16, 22. 232.

and ) ■25 ,00 ,22 ,00 .70 .1?

■Cumulative Percentage oftotal loans 46.2 26.3 10.9

6,9

9.8 100.0

(Millions. Cumulative amount 453-47

308.77

194.20 55.00 179.32 1,190.76

of FQA)^

Percentage orloans asof 31&3C.1981 38.1. 25.9 16.3 4.6. 15.1 130.0 Note;Detailsmayfailtoaddtototalbecauseofrounding,

a/ 1 IUA was equal to $US 1.07207 in 1981.

o J po ro.

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Page 12

Project_3__relatinfi to food production for which

ADB and ASF loans were approved during; 1980 and I98I

(Millions of UA or MJA)

Projects ADB ADF

Botswana- Arable lands development Burundi - Rumonge rural development Congo - Buenza rural development Cameroon — Poultry development Egypt - El Behira rural development Guinea - Siguiri rice development

Lesotho - Phuthiatson integrated rural development Madagascar - Rice development

Mali - Selingue rural development

Morocco - Tensift integrated poultry complex Mozambique - Inhassune agricultural development Mozambique — Zambesi rural development

Rwanda — Byumba integrated rural development Sierra Leone - Oil palm project VII

Sierra Leone - Northern integrated rural development Somalia - Afgoi-Mordile irrigation

Sudan - New Haifa irrigation Sudan — Blue Nile pump scheme Sudan - Seed production

Sudan-Agricultural credit Tanzania - Dakawa rice Tanzania — Zanzibar rice

Togo - Mandouri Agricultural development Uganda - Ranch rehabilitation

Zambia - Western Province agricultural development

7-2

6.4

5-4 10.0

6.7

10.3 8.0

8.0 8.0 10-0 11.0 10.0

7-5

2.5

7.1

.4.5

10.0 4.0

8.0

10.0

7-3 8,0

8.25 8.3

8.0 8.0 3.4 8.0 8.0

8.0

TOTAL 74-6

155.25

Table

Sncr,sy projects for which ADB and A1JF loans were

a-pproved during 1980 and 1981 (Millions of UA or KJA)

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Page 13

ABB AUF

- Shoubra El Kheima power 10.0

- Rural electrification 8.0

Gabon - Water and energy corporation 5.3

Guinea - Water and power study Malawi — Rural electrification ' Morocco - Electricity

Swaziland — Lupohlo Uzulwini h^/dro—pov;er Tunisia - Rural electrification

TOTAL _ 41-8 15.6

10

6

10

♦0

.0

1 6

.5

.1

ADB group health and education (human- resources) rvrciects. 1980-1981'(Millions of UA)

o CountryandProject'.ADBADP

Botswana Secondary teacher training college ... - 8,00 Gage Verde Training and health service development 8.00 Comoros Education project 6.70 'Bpypt Eilharzia control project 8.00 Equatorial Guinea Agricultural school project 7«6O

IvoryCoastEducationIIproject8.00

Madagascar Health project 8,00 Malawi Rural health project 8.00

Primaryandtertiaryeducation8.00 Haurit.aniaJuniorsecondaryteachertrainingcentre6.00 RwandaHealthsectordevelopmentproject8,00 TunisiaCHQofSousse10.00 TOTAL18.0076,5

O

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Page 15

Table 7.

projects, 1980-1981 (Millions of UA or

Country and project ADS ADF

Benin Pobe-Ketou road Dogbo-Aaove road Burundi Bujumbura-Mutambara

Mutambara—Nyanza Jao Ngozi-Muyinzo-Kolbao road

Bujumbura International Airport extension Cameroon Yaounde-Douala road

Cape Verde Sao Vicente ship repair yard Chad Rehabilitation programme

Comoros Mutsarauda port Road maintenance Ethiopia Rural roads

Rural roads II

Gambia Lamin Koto Passi.Tras roa,d

Ghana Railway project

Guinea-Bissau Joint Heglwaa (Suppl.)

Bissanlarea Airport

Ken^r Nakwa-Nyahurwru Road

Railwaye p r o j e ct Lesotho Khamare Road

Seoare-San Trans-Sahara L'^y

Mauritiu_s_ Road and bridges repair

Rwanda Cyenguga-Ntendezi road : Sao Tome and Principe Airport expansion study Sierra Leone Highway maintenance

Swaziland Road project

Upper Volta Niger-Doci Tera-Niamey road studies Zaire Onatra project

10 10 10

.00

•00

•00

3 0 1 10 12

.00 .90 .40 .00 .00

10.00

10.00

14.00

5.50 8.00 12.00

9

10

5«

10.

.00 .00

.30

,00

4 10

6, 1.2.

3- 10.

7.

1.

.60 .00

.10 ,00 .70 .00

,00

20

1.00

TOTAL

84.30 116.30

1.00

Table8. telecommunicationsprojects,198O-I98I(MillionsofUA) Countryandproject Botswana—TelecommunicationsIIproject10.00 CentralAfricanRepublic-Telecommunications10.00 Guinea-Telecommunications(supplementary)4-50 Swaziland-TelecommunicationsIIIproject7.82 Lesotho-Telecommunicationsproject8.73 TOTAL41-O5

a

ao O

.Page 17

C. Association of African MCentral Banks and African Centre for Monetary Studies

1. Current financial situation of Africa

The Lagos Plan of Action, which was adopted "by the Heads of State and Government in I98O, expresses the dissat isfaction of African leaders with the performance of their

respective economies during the 1970s as well as their determination to change the underlying economic structure go as to ensure rapid and sustained growth in the 1980s, The objectives of the Plan are set at the national, subregional, regional and international levels "but the common goal at all levels is the promotion of a proper economic integration and

restructuring of African economics for collective self-reliance, which would also lay the

^p'oundwork for new international economic relationships. In the monetary and financial area, the Plan calls for the creation and/or integration of African payments and transfer

institutions at the national and subregional levels. At the regional level, collective

self-reliance and .mutual financial assistance should involve the strengthening of the African Development Bank and the setting up of an African Monetary Fund and an African Mutual

Guarantee and Solidarity Fund. At the international level, African countries are urged to intensify effort0 to resume international negotiations on a fundamental reform of the international monetary system; to take the necessary steps to establish an adequate international framework to sustain their development efforts; and to appeal to

lizod countries and international financial institutions to give inoreascd financial assistance to Africa.

The Plan was a response to the continuous deterioration in the conditions of internal economic "development of African countries; to the accelerated openness of these economies

since 1970 as evidenced by the decline in intra-African trade (5 per cent in 197O» &s against only 3*9 VQT cent in 1980) ; and to the persistent deterioration in the national

and international financial positions of most African countries. Those difficulties do not scorn any smaller on year later. In fact; the performance of the African continent as

^is*, whole during I98O and 1981 has been rather disappointing.

The results recorded in agriculture varied widely from one country to another.

However, the over-all increase in food production is far below population growth, with the result that food deficits continue to increase. At the same time, the prices of major

food commodities (wheat, rice, etc, have increased sharply on the international markets

because of low production. The results have been a considerable increase in the value of food imports. Table 9 shows that imports of food commodities by African countries amounted

to $U5 6 billion in 1980, against £U3 4.2 billion in 1978, or an increase of 43 per cent.

The 198O bill represented 23*7 par cent of exports and 4»1 V0r cent of GDP, Tfre situation did not improve in 1981, becuase of the persistent drought in the Sahel countries. Other shocks only compounded the economic difficulties of the countries and worsened the

problem of financing.

The second oil shock had. a severe impact on African economies. African countries' oil bills increased from $ 2.9 billion in 1978, to ^ 7»4 billion in 1980, absorbing nearly a third of export earnings in I98O, against 14 per cent in 1974* In relation to GDP, the amount of oil imports represented 5-1 Por cent in 198O, against 1,2 per cent in 1973

(see tabled)* The:situation has considerably affected the balance of payments of the non-

oil African countries, which shows a permanent deficit.

E/ECA/TPCW.3/9

Page 18

To the weight of the oil-"bill on "the balancc~of-payment deficits of non-oil- exporting countries must be added the deterioration in the terms of trade.

In 1978, the terms of trade index of 13 African countries remained well "below the base

level (100 in 1979). The index fell to as low as 56 per cent between I97O and I978

for one African country (see table II). ■

In addition, African countries have been suffering chronic deficits in services as a result of the slowness in the transfer of technology. This situation has also lad a great

impact on the balance of pi^w.rr';3 .(l.iblo II)-

The above problems, e.g., the increase in oil prices, the deterioration in the terms of trade, food insecurity and the service deficits, combined with difficulties in domestic managaifir*-. have resulted in a substantial increase in the current account of the balance ■

payments of the non-oil-exporting African countries. For Africa as a whole, the over—all deficit in current account has continued to increase, amounting to $10.3 billion in 1980, . as against $ 8.4 billion in 1979•

(a) financial Mrosources

The flows of financial resources to Africa from all sources increased regularly between 1970 and 1978O They rose from $3.1 billion in 1970 to S 4.1 billion in 1973, and to

$19 billion in 1978.. However, this upward trend ended in 1979? when a substantial decline

was registered. In that year financial flows dropped to $ 16.6 billion (table XIII )•

Africa's share of the total net flow of resources to developing countries rose

from 15.7 per cent in 1970 to 23.2 per cent in 1978 and then fell to 21 per cent in 1979- It should be pointed out that non-oil-exporting African countries have accounted for most of those flows. They have received about three fourths of the resources meant for the continent. These resources amounted to $ 13.6 billion in 1979» as against $ 2.2 billion

in 1970. It should also be noted that official development assistance (ODA) has diminished

in relation to aid from other sources. In fact, the over-all drop in OM results from the fact that the share of bilateral aid in ODA fell in relative terms from 64 per cent in 1970 to 45 per cent in 1979^ The declining share of ODA in relative terras has resulted in a drop in that portion of these countries' foreign liabilities represented by public debt and an increase in the share of foreign private debt.

Table 12 shows a substantial increase in private debt. In relative terms, it represented 32 per'cent of African countries' outstanding debt in 1970 and 46 per cent in 1978,

This evolution of the foreign financing structure of African economies has significantly affected debt-servicing.

(b) Debt-se rviping

lAirir. iho period 197^197^1 debt-servicing xnoreased very rapidly (table 12), from

a O«85 billiua in 1970 "to * 2.G2 billion ±1 197o ^0. # 5.0 billio.i in ly?2. Set./acn

. E/2CA/TPCW.3/9

Page 19

1970 and 1978, debt-servicing increased seven fold in absolute terms. The African debt- servicing problems are linked to foreign sources of financing, which determine the amounts

■ as well as the terms and conditions of loans. During the period 1970-1978, the conditions

for loans and repayment tightened, that is, the average maturities for loans were shortened while the average rates of lending were raised. This is explained by the fact that there was a larger increase,in private foreign financing relative to the increase in financing from official sources.

(c) Money and exchange

The exchange rate fluctuations of major currencies alter both the real exchange rate of these countries and the prices in local currency of their imports and exports. These

fluctuations have aggravated monetary and financial uncertainty and have caused serious problems for African countries in the management of their foreign reserves. Debt-servicing

^sts can no longer "be projected with certainty; this in turn not only makes it difficult

to manage public debt but also complicates the problems of economic management in general and hence the over-all performance of the economy. The inconvertibility of African currencies raises exchange problems in the various subregions and in Africa as a whole, strongly

hindering the expansion of intra-African trade.

The border activity of parallel exchange markets has intensified and the overvaluation of national currencies in the light of the international situation has become more worri some as it has increased.

The following section reviews the initiatives taken by African monetary and financial institutions to deal with these problems.

2. Activities of the Association of African Central Banks (AACE)

and the African Centre for Monetary Studies in relation to the La^os Plan of Action

The activities of AACB and the African Centre for Monetary Studies fall into three broad categories: research arid the dissemination of information; training; and the promotion of

monetary co-operation within the region.

(&) Research

Studies have been undertaken on the harmonization of exchange control legislations

and practices in the West African subregion (198O); in the Eastern and Southern subregion (1981); in the North African subregion (1981) and in the Central African subregion (1982),

These studies, whose objective is the expansion of intra-African trade, indicate areas in which the various legislations and practices might be harmonized to facilitate trade flows.

Studies have been completed on the monetary and financial systems of the West African (1981), Central African (1981) and North African subregion. A fourth study, on Eastern and

Southern Africa, is still in progress.

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Page 20

These series of studies are intended to throw light on the nature and operations of Africa's financial system and to indicate the scope for co-operation.

Two studies have dealt with developments in the international scene that have

implications for African economies. These ares"Implications of the European monetary system for African economies"and"Reform of the international monetary system". Whereas, the former

gives some indcations of likely effects on African economies, the latter underscores the issues which must "be addressed to ensure that if and when the international monetary system

is reformed, Africa's interest is given due consideration.

In addition, through its monthly, quarterly and annual publications, the Centre keeps

central tanks and other similar institutions in Africa informed about monetary and financial

fields of interest to African countries.

(b) Training

The training programme is aimed at enhancing the stills of personnel.of member central

banks through experience-sharing and forging- lasting links among the personnel.

During I98O-I98I, four seminars wore organized as follows;

(i) Foreign Exchange Management, held at Nairobi, Kenyaf from 19 to 30

1980j

(ii) International Monetary Problems and African Economics, held at

Tangicrs, Morocco from 24 November to 5 December I98O;

(iii) African Economics and the Euro-currency Market, held at Mbabane, Swaziland from 4 to 15 Flay I98I5

(iv) Monetary Management in Africa, held at Lome, Togo from 23 November

to 5 December

The average attendance at these seminars was 65 senior officers from central banks members of the Association of African Central Banks. The seminars afforded personnel of

central"ba-oksan opportunity to become personally acquainted, thereby strengthening

relationships between these banks. At the same time, the participants exchanged experiences

on common problems as well as on issues of an international nature having implications

for African countries. The papers prepared and presented at the seminars as well as the discussions following the presentation of papers not obly provided valuable research material but also enabled the participants and others to understand better Africa's monetary and financial problems. Contacts have also been maintained through tha inter bank placement programme. Under this programme, central baruzs members of MCB. can arrange, through the African Centre for Monetary Studies,to have personnel from one central 3>arikB placed with another bank for on-tho-job training. The personal contacts made during these exchanges are indispensable for monetary co-operation at the subregional and regional

levels, ; " ■ t

The training programme also provides for the organization of an international symposium

once every two years. The objective of these symposiums is to provide a forum for

E/ECA/ri'PCW.3/9

Page 21

discussion of international monetary, financial and banking issues that have significant impact on Africa. Furthermore, it in hoped that these symposiums will promote an academic and professional exchange of ideas between Africa's central bankers and African scholars and researchers and professionals from around the world whose work has had significant impact on

African economies.

The first of those symposiums took place at Dakar from 21 to 24 January 1980. Three ■ hundred and sixty participants representing 103'organizations throughout the world, inoluiing 19 member central banks, attended. The symposium also attracted prominent international figures in "the field of international monetary theory and policy. Papers were read by leading

nirican sciioJiars

(c) Monetary and financial co-operation

Trends in the international economy and the disappointing results achieved in global gotiations with developed countries have further elevated the importance of collective self-relianco and, therefore, monetary and financial co-operation among African countries.

The Association of African Central Banks and the four Subrogional Committees not only met regularly during the period under review but also made significant progress in the field of

clearing and payments, arrangements.

In Central Africa, three significant initiatives in the area of monetary and financial co-operation were taken during 1979- In October, the Banque des Etats de 1'Afrique Centrale (B£AC) agreed to establish a money market in its member countries in the near future. Access to this market would initially be limited to banking institutions. Earlier in the year, BEAC and the Bank of Zaire signed an agreement to establish the Central African Clearing House, which cam into operation in September 1981. Also in 1979, Rwanda, Burundi and Zaire signed a payments agreement which will, among other things, simplify regulations

governing trade transactions and payments methods among the three countries. Other initiative include the signing of a bilateral agreement between Zaire and Angola (1980J and the

agreement in principle by the Central African Subregional Committee of AACB in I98I to set

up an association of commercial banks in their subregion.

In the West African subregion, the Governors addressed themselves to the problem of .e inconvertibility of currencies as well ae to the approved amendments to the Articles of Agreement intended to ensure the effective operation of the West African Clearing House, In August 1981, the Association of/v/est African Commercial Banks, which brought together all commercial banks in the subregion, was inaugurated. The objectives of the new Association include: gathering and exchange of information on banking practices; promotion and

consolidation of links among banks in the subregion; and search for ways and means to promote

trade, industry and agriculture in the subregion.

In Sastern and Southern Africa, Governors of that subregion examined and approved a protocol on clearing and payments arrangements. This protocol is an annex to the Treaty for the Establishment of a Preferential Trade Area for Eastern and Southern African States which

was signed by Heads of State and Government on 21 December 1981.

The Governors of central banks of the North African subregion at their meeting stressed

the importance of co-operation to facilitate subregional trade and requested the Chairman

e/eca/tpcw.3/9

Page 22

of their-Committee to present proposals relating to the possibility of establishing a clearing and payments- arrangement for the subregion,

tfhile developments in the international economy further aggravated the economic ■. ■ development and financing problems affecting African countries during the'period under review, these adverse events have underscored the need for self-reliance and co-operation, an area in.which much progress was recorded.

■' Table 9.

Oil and foodstuffs import "bills of non-oil-exportin^

African countries ("billions of United States dollars)

s/ECA/TPCW.3/9

1973 1974 1978 ₁₉₇₉ 1980

Oil import "bill

Percentage of exports Percentage of imports Percentage of GDP

Pbodstuffs import bill Percentage of exports Percentage"of imports Percentage of GDP

0.8 8,2 5.7

1.2

1.9 19.4 13-6 3-0

2.0

(H.2)

(12.5)

( 2.6)

3.5 24.8 21.9 4.5

2.9

(15.9)

(13.8) ( 2.2)

4.2 23.1 20.0 3.2

4.5

(20.7) (18.5) ( 3.2)

5.0

23.0 20.6 3.6

7.4

(29-2) (25.5) ( 5.D

6.0

23.7

20.7 4.1

Source:' ECA Statistics Division.

e/eca/tpcw.3/9

Pago 24

Table 10.

Trends in foreign trade and the terms oftrp.de in 29 African countries

Country

Angola Benin Burundi

Central African Republic Chad

Congo Ethiopia Ghana Guinea Ivory Coast Kenya

Lesotho Liberia

scar

Malawi Mali

Mozambique Niger Nigeria Rwanda Senegal Sierra Leone Togo

Uganda

United Republic of Cameroon United Republic of Tanzania Upper Volta

Zaire Zambia

Annual rate of growth in percentage

Terms of trade

(1970 = 100)

Exports 1970-1978

-8.9

-13.6

• 0.

1.8 - 3-0 ■

14.7 - 5.4 ,

- 0.1

8.5

0,8

1.5

- 0.9

2.4 7.7 -15.9 13.2 0.5 3.6 4.4 - 3.1 0.3 - 5.3 - 2.4 - 6.0

8.5

- 4-1 - 4-7

Imports 1970-1978

-4.7

6.Q

...

0.9

1.7 6.7

- 0.2

2.7

10.6

•••

2.0 - 4.0 4.2 5.0 -13-4 5*5 25.O 11.7 4.7 - 4.0 12,4 - 7.6

- 6.7

- 1,0 9-4 -10.4

- 6.9

1976 145 79

...

103 ^

122 114 .126 80

94 104

85 87

112

93 $

96 78 290 123 100 77 105 106

97

104 89 61 56 Source : World Bank report

Mote: (..«) indicate th;

on world development,

•jt the information is not known.

E/ECA/TPCW.3/9

FaCe 25

Table 11.

Recapitulation of the balance of payments for Africa^, 1970-1973 (billions of United States dollars)

Export

Balance of trade

Net payments for services and private'transfers

Balance of current account

Net official transfers Net capital inflow Over-all balance

1973

1974 1975 1976 1977 1978 1979 1980 y 9.8 . 14.1 13,3 14-9 17-3 18.2 21.7 25.3 -9.2 -14.O -16.0 -16.3 -18.8 -21.0 -24.3 -29.O 0.6 0.1 - 2.7 - 1.4 - 1-5 - 2.8 - 2.6 - 3-7 -2.4 - 3.4 - 3.9 - 4.7 - 5.0 - 5.5 - 5.8 - 6.6

-1.8 - 3.3 - 6.6 - 6.1

6.5 - 8.4 - 8.4 -10.3

1 1 0

a .3 .6

1 2 0

.4 .1 .2

1.

4- - 0.

7

2 7

1 4 - 0

.9 .1 .1

2.

4- - 0.

1 8 5

2 5

- 0 .1 .7 .6

2 6 - 0

.4

.0 .1 -

2 6 1

.5

.2 .4

Source: IMF, Werld Economic Outlook, I98O.

a/ Sxoluding South Africa,,

y for I98O are estimates.

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Page 26

T?.blo 12.

Total outstanding debt (paid) and standing orders for debt-servicing in

■ " African countries(billions of United States dollars)

1970 1973 1974 1976 1978

Outstanding debt 9.02 15.69 18.88 30.02 49.6

Public bilateral 5.17 7.54 8.92 13.66 18.6

Public multilateral 1.00 I.98 2.45 4.12 8.3

Private" 2.85 6.17 7.51 12.24 22.7

Total debt-servicing O.85 1.79 2.34 2.82 ^.6

Amortization (O.64) 1.28 1.65 1.8l 3.6

Interest (0.2l) (O.51) (O.69) (l.Ol) 2.0

Source: World Bank, tforld debt tables, 1979.

':

Page 27

II. .'ORKING GROUP ON EARTH RESOURCES SERVICES

The Working Group on Earth Resources Services is composed of the following institutionss

(a) African Association of Cartography (AAC)j (b) African Remote Sensing Council (ARSC);

(o) Regional Remote Sensing Centre at Kinshasa (CRTK);

(d) Regional Remote Sensing Centre at Ouagadougou (CRTG);

(e) Eastern and Southern African Mineral Resources Development Centre (ESAMRDC) (f) Regional Centre for Training in Aerial Surveys (RECTAS);

(g) Regional Centre for Services in Surveying and Mapping (RCSSM) -f (h) Regional Remote Sensing .Centre at Cairo (RRSCC)

The officers of the Working Group are composed of one chairman and one rapporteur

designated on the basis of the alphabetical order-in which the institutions are listed above*

At the second session, hold from 1 to 5 December 198l| the following officers were elected;

Chairman: Secretary-General of ARSC;

Rapporteur: Director of ERTS, Zaire.

The meeting was attended by AflSC, CRTK, CRTO, EECTA3 and RCSSM.

Officers are elected for r. one-year period. At the following meeting the chairman is replaced by the rapporteur and the representative of the next institution on the list becomes rapporteur.

■A* Activities undertaken during 1980-1981

The objectives of the various institutions in the forking Group relate to the physical

^environment of their fields of specialization,

+*>

These objectives can be divided into six categories:

(a) Regional specialization for each institutionj

(b) Advisory services to transfer technology from the centres

to all African countries

(c) Increasing role in training, African, specialists^

*(d) " Co-ordination of activities at the regional levelj

(e) Monitoring of socio-economic development projects in the field of remote

sensing;

(f) Assistance to member States in the fields of aerial surveys and remote

sensing.

In principle, all the institutions which compose the forking Group on Earth Resources Services receive funding from various sources. In fact, these institutions are short of fund:

because member States do not pay their contributions on a regular basis.

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Page 28

To achieve their objectives, these institutions must rely on the contributions of member States. Therefore, African countries should support these institutions morally and politically to enable them to operate effectively. The African countries should also encourage donor countries and bodies to assist these institutions.

Despite many difficulties encountered in the implementation of their respective work programmes, the institutions which arc members of the Working Group on Earthly Resources have conducted significant activities.

The utilization of new technology has improved food production. The problems relating to transport, space planning and environment management are being solved at acceptable costs The search for water, the cartographic inventory of forestry, the reclaiming of arable soils and the exploitation of mineral resources are made easier owing to new technology* These improvements apply also to the training of African specialists, who are essential to the successful implementation of projects in African countries.

B. Problems encountered

The institutions composing the Working Group on Earthly Resources "do not receive member States' contributions on a regular basis. The fact that the States are not

sufficiently sensitized to new technology (remote sensing, aerial surveys, etc.)'keeps them

from supporting the programme fully. Lack of interest from the countries that ought to utilize the results of the prograinme results in a lack of interest on the part of the international community in supporting the programme.

In the light of above, the Working Group recommends:

(a) That member countries pay their contributions regularly;

(b) That IBCA assistance should be requested during the process of seeking external

funding;

(c) Grccter co—operation ainorv; the institutions to work towards a better harmonization of projectsj

(d) Compulsory utilization of new technology in the monitorin. of projects relating to earthly resources

C. Future prospects

The Working Group on Earthly Resources would like African States to promote concerted action and provide greater support for the African programme for utilisation of new

technology in order to achieve the aim for which varioue institutions have been created.

Given their effective role in national economics, these institutions should increase their activities.

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Page 29

is

III. WORKING GROUP OF INIUSTRIAL DEVELOPMENT AND SERVICES

(a) The African Institute for Higher Technical Training and Research (AIHTTR);

(t) The African Regional Centre for Engineering Design and Manufacturing (ARCEDEM);

(c) The African Regional Centre for Technology (ARCT);

(d) The African Regional Standardization Organization (ARSO);

(0) The Eastern and Southern African Mineral Resources Development Centre'(ESAMRDC);

(f) The English-Speaking Africa Regional Industrial Property Organization (E3ARIP0)!

priorities were

d during this period. So^e in^

AfriCan Institute for mr

H.,n Training and Research

l* Activities undertaken during the 1980-1981 tie

E/ECA/tPCW.3/9

P^go 30

contributions continued. On 10 October 1981 the training activities of the Institute were

formally inaugurated with an 11-week workshop/seminar for training technical trainers.

Consultations with donor agencies were hold and' a I^ench-speaking Deputy Director-General was selected.

2. Problems encountered

Growth in memberships has "been very slow, with growth in contributions even slower.

A grossly inadequate staff of any description, particularly professional staff, is another

major problem. There are uncertainties in the member States as to personnel or even

ministries, charged with the various necessary relationships with the Institute as concerns training, membership, payments, etcj this is sometimes complicated hy uncommunicated

changes of individuals in State ministries. Reluctance of most ministries to send any form of response to important communications and the failure of Board and Council members to attend scheduled meetings are other problems,

B. The African Regional Centre for Engineering Design And Manufacturing (aRCEDEH).

1. Activities undertaken during 1980-1981

Immediately after the Centre commenced functioning actions were taken to send field

missions to visit member countries to:

(*) Develop closer contacts with government officials, national institutions

and United Nations bodies associated with industrial development in the States; ■ '■

(b) Identify priority products for the Centre to develop;

Ascertain training needs and possibilities for building up a network of national and subrcgion&l centres; . .;...._. .

(d). Expedite the remittance of contributions from member States,

The first field mission successfully covered Kenya, Zambia, the United Republic of Tanzania, Sierra Leone, Togo, the Niger and Nigeria during the first half of.1981. Since then, interaction with some national centres in Nigeria has been initiated and technical co-operation from ARC2DS1-I has been proposed for some of the national programmes.

All member States have been sent questionnaires to identify some of their priority needs and nominate engineers to take part in the training programmes of the Centre beginning in March 1982,

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Page 31

The first training programmes for meehanical__engineerin£ design are in the process

of finalization and were to have been "ready by the end of December I98I. Staff build-up

has been rather slow during 1981 because of changes in the schedule of construction of the Centre. Up to end of 1981 only core professional staff, namely the Executive Director, the Director for Design and Assistant Director for Administration had taken up their positions. Director for Manufacturing is expected to join in the near future. With UNI!P assistance, a Chief Technical Advisor has been attached to the Centre since Ftebruary I98I.

Concerning the land a large plot of land of 180 acres has been earmarked for the Centre's

permanent site at Ibadan by the Nigerian Government and a consortium of architects has

_«*f».been selec'ted to design the buildings of the Centre. The Centre's master plan is under

^preparation and its engineering programme starts in 1982. The first machines to be

developed by the Centre have been identified, with much interest shown by all the member States visited. Tho Centre is thus ready to contribute in assisting African countries to develope design and manufacturing capabilities in capital goods for which all African countries are over-dependent on developed countries. The Centre has approached some of the friendly countries for donations towards the construction of the Centre in the form of

machinery, etc., and the response is rather encouraging.

2. Problems encountered

Communications have always been a problem in adhering to a fixed schedule; a feed back from member States is poor and may necessitate direct contact by occasional visits

to them.

Receipt of contributions from member Ss.?.tos is far from satisfactory, fceny States are in default for as far back as 1979* It will be advisable for the Centre to start

construction phase only when budgeted funds are in hand: member States may therefore

^ need to clear their dues.

c- The African Regional Centre for Technology (ARCT)

1. Activities undertaken

ARCT became operational in the host country, Senegal, in J^me-ry'198O. Jbllowing the establishment of the secretariat, the major activity was the installation of facilities for the operation of the Centre and staff recruitment and installation. The Centre then embarked on the process of project identification for the development of the first five- year programme. This took place at the time of the Second Extraordinary Assembly of OAU

Heads of State and Government Devoted to Economic Matters held at Lagos. The Centre

participated in this important meeting, from which emerged the Lagos Plan of Action for

the Implementation of the Monrovia Strategy for the Economic Development of Africa.

e/eca/tpcw.3/9

Page 32

The establishment of the secretariat and formulation of programme which is based on the Centre's Constitution and the Lagos Plan of Action was approved by the Executive

Board and Council "of "the Centre in February 1981.

With the help of UNDP preparatory assistance, the following activities hnge been carried out by the Centre:

(a) Strengthening of the Centre's data base;

(b) The development of the ARCT Information System (ARCTIS). This is a continuous

activity being undertaken in co-operation with PADIS and other organizations;

(c) Survey of major Science and technology Institutions and Consulting and Engineering Design Organizations in Africa. This involved tne organization of an Expert Group Meeting in October 1981 to design the survey, monitoring and publication of a directory;

(d) Implementation of the Centre's Food Programme. The Centre vigorously pursued

the establishment of contacts with national, subregional and international organizations involved in food production, processing, storage and marketing relevant to the African region. The activity-is being carried out in co operation with the FAO African Regional Office at Accra. The Centre convened a consultative meeting in November I98I attended by 15 national and multi national research and development institutions in Africa on the reduction of post-harvest losses in staple foods under the theme, "Towards self-sufficiency in food production: reduction of post-harvest losses";

(e) Implementation of the New and Renewable Sources of Energy Project. Work on a survey and assessment of ongoing and planned activities in the area of new and renewable sources of energy commenced during- period under review. The Centre participated in the United Nations Conference on New and Renewable

Sources of Energy at Nairobi, Kenya, from 11 to 21 August I98I;

(f) Promotion of technologies suitable for rural development - development of technologies lor women, a seminar on "jxiarjcet women, commerce, storage, processing, distribution and'introduction of new technologies" was organized by ILO, ECA, ATRCW and ARCT in June 198I;

(g) Science and technology action, planning and research. The Centre organized, in collaboration with OAU and ECA, a meeting- of the African Group on the

"Draft international code of conduct on the transfer of technology" in

January 1981. During the period under review the Centre collaborated with

a number of organizations in the planning and hosting of the meetings and

workshops in science and technology policy, planning and research. The

organizations include IDRC (Canada), UNCTAD, CEAO, SIDA and the Centre of

Interdisciplinary Study of Science and Technology of the United States of America.

e/eca/tpcw.3/9

Page 33

2, Problems encountered

The formative years of any institution such as ARCT are "bound to "be fraught with

• many difficulties. ARCT has had a number of such difficulties. There has "been a lack of continuity in the leadership of tho Centre. The first Executive Director left in February 1981 when ho was recalled by his Government. Until the end of I98I a successor had not been identified. The prolonged absence of permanent leadership at the Centre has tended to create some misunderstanding among co-operating organizations.

Shortages of funds and the uncertainty with ^hich contributions from the member States are made available makes it very diffioult to plan programmes and recruit staff for

^iiplementing the programmes* This is further aggravated by a shortage of staff at the

Nj^ntre in both administrative services and programme areas. Problems also exist in the area

of communications. Mail between Dakar and the other parts of Africa takes much too long.

This necessitates high expenditures for telephones, telexes and cables, which are the only sure means of communicating with different places in a reasonable amount of time,

D« The African Regional Standardization Organisation (ARSO)

!• Activities undertaken during I960 -19&1

The period under review was marked by tho completion of preparatory activities aimed at making the ARSO office operational. Subsequently, a start has been made in launching

the substantive technical work of the organization concerning the promotion of standardization, quality control, certification and metrology activities in the African region.

The activities carried out during I98O-I98I are the following:

'"T (a) T^e Headquarters Agreement of ARSO was concluded with the Government of the host country (Kenya), following which the secretariat began the

operation of its activities at the headquarters of the Organization at Nairobi

00 The attention of African countries was drawn, through the Lagos Plan

of Action, to the importance of standardisation and the specific role of ARSO in facilitating intra-African trade and the promotion of Africa's

socio-economic development and integration;

(c) Priorities.of ARSO activities were identified in line with the relevant

provisions of the L^gos Plan of Action, and the following eight Technical Committees to be responsible for the preparation of African regional standards have been established: . ■

(i) Technical. Committee for J3asic and General Standards;

(ii) Technical Committee for Agriculture and Pbod Products;- *'■■-»"■'

(iii) Technical Committee for Building and Civil Engineering;