ECA Technical Cooperation Report 2014

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2014

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Acronyms and abbreviations

ACG Africa Centre for Gender ACPC African Climate Policy Centre ACS African Centre for Statistics

AEC African Economic Conference

AGDI African Gender Development Index AGOA African Growth Opportunity Act AMDC African Mineral Development Centre

AMU Arab Maghreb Union

AMV African Mining Vision

APRM African Peer Review Mechanism ASDI African Social Development Index

ASEOWA AU Support to the Ebola Outbreak in West Africa ATPC African Trade Policy Centre

AUC African Union Commission

BIAT Boosting Intra-African Trade

BRICS Brazil, Russia, India, China and South Africa CCDU Climate Centre Desertification Unit

CDD Capacity Development Division

CEMAC Central African Economic and Monetary Community COHA Cost of Hunger in Africa

COMESA Common Market for Eastern and Southern Africa CRVS Civil Registration and Vital Statistics

CSO Civil society organization

DFID Department for International Development/UK ECA Economic Commission for Africa

ECCAS Economic Community of Central African States

ECE Economic Commission for Europe

ECOWAS Economic Community of West African States

EGM Expert Group Meeting

ERA Economic Report on Africa

ESCAP Economic and Social Commission for Asia and the Pacific ESCWA Economic and Social Commission for Western Asia FAO Food and Agriculture Organization of the United Nations

FDI Foreign direct investment

FGM Female genital mutilation

GCCA Global Climate Change Alliance

ICT Information and communications technology IDEP Institute for Economic Development and Planning

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IGAD Intergovernmental Authority on Development

JFA Joint Financing Arrangement

LDC Least developed country

LPI Land Policy Initiative

MDG Millennium Development Goal

NEPAD New Partnership for Africa’s Development NSO National Statistics Office

PAIDA UN/AU Partnership on Africa’s Integration and Development Agenda PIKMD Public Information and Knowledge Management Division

PIP Programme Implementation Plan

RB Regular budget

RCM Regional Coordination Mechanism

RCMRD Regional Centre for Mapping and Resource Development

REC Regional Economic Community

RITD Regional Integration and Trade Division

RPTC Regional Programme for Technical Cooperation SADC Southern African Development Community

SDD Social Development Division

SID Special Initiatives Division SNA System of National Accounting SRCM Subregional Coordination Mechanism

SRO Subregional Office

UNICEF United Nations Children’s Fund

UNDP United Nations Development Programme

UNIDO United Nations Industrial Development Programme

XB Extrabudgetary

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Introduction

This is the second report on the Trust Funds and Technical Cooperation activities of the United Nations Economic Commission for Africa (ECA), since the repositioning exercise in 2013 and the launch of the 2013–2015 ECA Business Plan. The current three-year plan presents a framework and vehicle for addressing Africa’s development challenges in mobilizing the requisite resources to implement the key thematic programme activities and initiatives of the Commission.

The report presents evidence of progress made in 2014 in mobilizing supplementary resources to implement programmed activities, focusing on the main results and accomplishments and highlighting the challenges and lessons learned. The report also presents the status of funding support received from partners during the reporting period.

The report has also introduced the new ECA programming approach for effective result management.

Analysis of the subprogramme reporting has been done with quality opportunity markers. This emanated from principles, mandates and commitments as articulated in United Nations resolutions and strategy documents.

The report is organized in five chapters. The first chapter provides an overview of the status of programme implementation during the reporting period. It also highlights the results, challenges and lessons learned recorded within the nine subprogrammes and the Public Information and Knowledge Management Division (PIKMD), which falls under the executive direction and management of the ECA work programme. Chapter II outlines the implementation of recommendations of reviews/evaluations.

Chapter III builds on strategic partnerships. Chapter IV provides an overview of extrabudgetary resources in terms of contributions received from partners, funding distribution by subprogrammes and analysis of funds utilization during 2014. The last chapter provides the conclusion.

The importance and impact of extrabudgetary resources in the overall implementation of ECA work programme cannot be overemphasized. The extrabudgetary component complements the regular budget and the Regular Programme for Technical Cooperation. The availability of extrabudgetary resources from partners has enabled the Commission to carry out its priority activities and respond effectively to emerging development issues, such as the global economic crises and the impact of climate change. The ability of ECA to carry out its priority activities effectively therefore depends critically on mobilizing extrabudgetary resources.

The Commission would like to take this opportunity to thank all its partners for their support during the reporting period. ECA would not have achieved as much as it has without their support.

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A. Macroeconomic policy

1. Overview

The subprogramme’s objective is to promote policies, strategies and programmes for sustainable growth and development, by focusing on economic forecasting, development planning and financing, private sector development, investment promotion, illicit financial flows, governance and public sector management.

These focus areas are part of the prevailing trends in terms of macroeconomic policy and management. In fact, although there are a number of contrasting country cases, Africa at large displays a greater maturity on the macroeconomic front. While this change has taken off from low levels at the end of the last millennium, it does represent a great potential for further macroeconomic improvements that may set in motion virtuous cycles of development in an increasing number of countries. At the same time, adverse effects of growth, such as increased inequality, have gained their rightful attention and highlighted the role of active government policy in ensuring inclusive development processes. Taking cue from these positive trends, and without losing focus of the persisting challenges, ECA is further encouraged in its role of contributing to the structural transformation of the continent.

2. Progress, key achievements and results

Expected accomplishment 1 Indicators of achievement Output

a. Improved capacity of member States to design sound economic policies and national development strategies and plans

i. Increased number of countries using the ECA economic forecasting models in macroeconomic management and national development plans Performance measures:

2010-2011: not applicable Estimate 2012-2013: not applicable Target 2014-2015: 10 countries Achieved 2014: 0

1. 1 Reports to the Conference of African Ministers of Finance, Planning and Economic Development on recent economic and social developments in Africa

1. 2 Economic Report on Africa (2014)

1. 3 Assessing progress towards achieving the Millen- nium Development Goals (MDGs) in Africa (2014) 1. 4 Study on lessons learned and best practices in

development planning

1. 5 Policy briefs on a) alternative perspectives of the performance of Africa in achieving the MDGs; and b) dynamic industrial policy in Africa: innovative institutions, effective processes and flexible mechanisms

1. 6 Contribution to World Economic Situation and Prospects (WESP/LINK) (2014)

1. 7 Report of the Secretary-General on least developed countries

1. 8 African Economic Conference 2014

1. 9 Visiting scholars, fellows and interns to enhance capacity in development issues and policy analysis 1. 10 Strengthening policymaking capacity for achieving the MDGs in Africa and contributing to formulation of the post-2015 development agenda

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In March 2014, ECA, in collaboration with the African Union Commission (AUC), launched its annual flagship Economic Report on Africa (ERA), entitled “Dynamic Industrial Policy in Africa”. The report builds on the concept of commodity-based industrialization introduced in ERA 2013, and focuses on institutions and industrial policies. ERA 2014 was launched in several cities in and outside Africa, along with opinion pieces, a policy brief, and news articles published on the topic

ECA also held an Ad Hoc Expert Group Meeting, in September 2014, to discuss its report on a “Macroeconomic Framework for Structural Transformation of African Economies”. The report critically reviews existing structures, and proposes an overarching macroeconomic framework, as well as specific policies conducive to structural transformation in Africa.

In addition to contributing expert advice in the development and finalization of the AUC Agenda 2063, the subprogramme contributed to the 2015 World Economic Situation and Prospects Report, which gives the economic outlook for Africa, and the implications of Economic Partnership Agreements (EPAs) for structural transformation in Africa.

During the reporting period, the subprogramme continued its work on the concept note for an Africa- oriented forecasting model, an important and pioneering objective for ECA. The Commission has successfully developed a prototype that it expects to finalize and launch in 2015.

The 2014 Millennium Development Goals (MDG) Report was launched in Addis Ababa on 1 November 2014. In addition to the regular assessment of MDG performance by African countries and by the region, the report discusses two special thematic areas, the initial conditions at the onset of the MDGs, and a special section devoted to the Common African Position that was adopted by the African Union (AU). Both special topics were chosen to have the ambition to contribute to the negotiations and design of the upcoming post-2015 development agenda.

In August 2014, ECA, in collaboration with Save the Children and AUC, conducted the Regional Consultative Meeting (RCM) on the post-2015 Accountability Framework to share information and insights, as well as to strategize ahead of the post-2015 intergovernmental negotiations. The RCM, which was followed by a sensitization meeting on the Post-2015 Development Agenda in November 2014, brought together senior officials of the High Level Committee and participants from civil society, government, and the private sector in Africa, to outline key elements of an accountability framework for the Post-2015 Development Agenda from the African perspective.

Prime Minister of Côte d’Ivoire, Daniel Kablan Duncan, with a copy of the Economic Report on Africa

ECONOMIC REPORT ON AFRICA

2014

African Union

DYNAMIC INDUSTRIAL POLICY IN AFRICA

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In partnership with the Government of Ghana, United Nations Development Programme (UNDP), United Nations Children’s Fund (UNICEF), the United Nations Millennium Campaign, the Council for the Development of Social Science Research in Africa, the Danish International Development Agency, the Institute of Statistical, Social and Economic Research (ISSER), the Society for International Development, and the Third World Network Africa, ECA organized the Pan-African Conference on

“Inequalities in the Context of Structural Transformation” in April 2014, in Accra. The conference, which was structured to have four main dialogues on African inequalities in global development, drew over 250 participants from governments, intergovernmental organizations, academia, civil society and the private sector. It culminated in a draft policy statement calling upon all governments and stakeholders to make reduction of inequalities in Africa a priority in their current and future post-2015 development agendas. The subprogramme also contributed to the Istanbul Programme of Action, and to the Secretary- General’s annual report on African Least Developed Countries (LDCs) by updating their socioeconomic performance, and the type of support ECA provides to them.

Furthermore, the subprogramme finalized the draft report on “Economic development planning in Africa: 50 years of experience”, which it expects to publish and widely disseminate in 2015. This report describes and assesses the planning experiences of nine African countries from the five subregions with the objective of informing policymakers on their current development planning practices and policy directions.

Expected accomplishment 2 Indicators of achievement Output b. Increased capacity of member States

to promote private sector development and mobilize domestic and external resources for development

i. Increased number of member States that have developed mechanisms for increased mobilization of domestic and/or external resources as a result of ECA research and advocacy work.

Performance measures:

2010-2011: not applicable

Estimate 2012-2013: 5 member States Target 2014-2015: 10 member States Achieved 2014: 8¹

2.1 Strategies for mobilizing resources and investment 2.2 Review of development effectiveness technical consulta-

tive meeting

2.3 Enhancing private sector development in African countries

2.4 Mutual review of development effectiveness

ii. Increased number of member States using ECA’s research and advocacy work to promote private sector development

Performance measures:

2010-2011: not applicable

Estimate 2012-2013: 5 member States Target 2014-2015: 10 member States Achieved 2014: 5

2.5 African Economic Conference 2.6 Launch of MRDE 2014

2.7 Visiting scholars, fellows and interns to enhance capacity in development issues and policy analysis

2.8 Strengthening small and medium size enterprises network and business linkages in selected subregions 2.9 Report of the High Level Panel on Illicit Financial Flows 2.10 Consultation meeting on illicit financial flows in USA,

Europe (additional), South Africa and Mauritius

In May 2014, ECA, in collaboration with United Nations Department for Economic and Social Affairs (UNDESA), hosted a regional outreach meeting for the Intergovernmental Committee of Experts on Sustainable Development Financing (ICESDF), to produce a report proposing options for an effective financing strategy in achieving sustainable development objectives, as mandated by the General Assembly, following the Rio+20 Summit. The meeting gathered the views of African stakeholders, including civil society and the private sector, resulting in a Chairs’ Summary outlining key issues and priorities to inform the final report from ICESDF.

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ECA continued its work towards mobilizing development finance during the ninth African Development Forum, in October 2014, in Morocco, under the theme “Innovative sources of financing Africa’s transformation”. The forum provided a platform for prominent African stakeholders to share key information, and to participate in focused and in-depth discussions on issues relating to the four thematic areas, namely: domestic resource mobilization; illicit financial flows; private equity; and new forms of partnership. It resulted in the Marrakech Consensus, which outlines key commitments towards innovative financing for Africa’s transformation.

Furthermore, ECA commissioned two studies to examine the role of public-private partnerships in enhancing domestic private sector development in the energy and construction sectors in Africa. The drafts were deliberated upon at expert group meetings in December 2014, and will be translated and published in early 2015.

In addition, ECA hosted the ninth Annual African Economic Conference (AEC), in Addis Ababa, in November 2014, under the theme of “Knowledge and innovation for Africa’s transformation”. The conference, which was jointly organized by the African Development Bank (AfDB) and the United Nations Development Programme (UNDP), drew a total of 187 participants from academic institutes and universities from across Africa and abroad, African government officials, AfDB, ECA, New Partnership for Africa’s Development (NEPAD), Organization for Economic Cooperation and Development (OECD), UNDP, the private sector and the media. Out of the 15 researchers that presented academic papers, three were women and ten were young researchers under the age of 40.

ECA also supported the work and a report of the High Level Panel on Illicit Financial Flows from Africa.

The report, which was launched regionally and globally and submitted to the AU Summit of Heads of State and Government in 2015, is based on five country case studies, regional consultations, country visits to South Africa and Mauritius, as well as interactions with partners in the United States and Europe.

Expected accomplishment 3 Indicators of achievement Outputs

c. Enhanced capacity of member States to adopt good economic governance practices and standards as well as efficient, transparent and accountable public sector practices

i. Increased number of African countries using the ECA research and advocacy work in improving good economic governance practices, policies and standards

2010-2012: 12 countries Estimates: 2012-2013: 18 countries Target: 2014-15: 24 countries Achieved 2014: 6²

ii. Increased number of member States adopting instruments or mechanisms to strengthen transparency and accountability in their operations and public services delivery

Performance measures:

2010-2012: 15member States Estimates: 2012-2013: 18 member States Target: 2014-15: 22 member States Achieved 2014: 6

3.1 Launch of AGR-III

3.2 Visiting scholars, fellows and interns to enhance capacity in development issues and policy analysis

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2 Cameroon, Chad, Ghana, Djibouti, Sierra Leone and Swaziland.

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During the reporting period, the subprogramme worked on the third and fourth African Governance Report (AGR) III and IV. In June 2014, in partnership with UNDP, ECA launched AGR III on the theme “Elections and the Management of Diversity in Africa” in Addis Ababa. In addition, the publication was launched in Cameroon and Zambia. To date, approximately 1,500 copies (800 in English and 700 in French) have been distributed to policymakers, researchers and stakeholders.

Over the second half of the year, ECA convened an Ad Hoc Expert Group Meeting in Addis Ababa, to brainstorm on the theme and the methodology for AGR-IV, and to finalize the background papers.

The theme is “Measuring Corruption in Africa”. The background paper will be presented at an external review in the first quarter of 2015, and the publication is expected to be completed in 2015.

Further, ECA completed the draft study entitled “Corruption in public procurement systems in Africa:

the case of the infrastructure sector”, within the framework of the AU and ECA Regional Anti-Corruption Programme for Africa 2011-16. The study’s specific objective is to provide African policymakers with an investigative assessment on the impact of corruption on public procurement in Africa. It also examines the negative domino effect that corruption in procurement has on infrastructure development and structural transformation. The study should be presented at an external review meeting in the first quarter of 2015 and is expected to be finalized in the same year.

During 2014, the subprogramme also worked on the study entitled “Impact of illicit financial flows and domestic resource mobilization: optimizing Africa’s mineral revenues” together with the ECA African Minerals Development Centre (AMDC). The draft study, which is expected to be finalized in 2015, aims to support mineral-exporting African countries, gain a clearer understanding of the nature of illicit financial flows and their main sources, and provide recommendations on how to address policy challenges relating to such flows.

3. Financial performance

A. Approved budget from PIP

RB 3,692,350

XB 4,072,850

Total 7,765,200

B. Funds received (Jan – Dec 2014)

RB Amount received 4,003,600.00

XB Balance brought forward as at 1 Jan. 2014 680,705.26

XB Amount received from ECA (Jan–Dec ‘14) 475,863.96

Total (RB and XB) 5,160,169.22

Variance analysis (planned PIP and available) - 2,605,030.78

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C. Expenditure (Jan – Dec 2014)

RB 3,413,253.42

XB 840,814.74

Total 4,254,068.16

D. Available balance as at 31 Dec 2014

Total B – C 906,101.06

In 2014, the macroeconomic policy subprogramme was allotted a total of $4 million as regular budget, of which 86% was for posts. As at 31 December, the final regular budget expenditure was $3.4 million, which represented a rate of implementation of 85.3%. The regular budget balance to be utilized in 2015 is $0.59 million. Over 80% of this balance is due to vacancy of established posts. Total post expenditure amounted to $1.72 million, representing 77% of the budget allotment.

In terms of extrabudgetary resources, the subprogramme was allocated $0.47 million, in addition to the

$0.68 million available as at 1 January 2014. The subprogramme utilized 73% of the extrabudgetary total of $1.15 million, leaving a balance of $0.31 million. The incomplete implementation rate was due to late disbursements of committed extrabudgetary funding.

In terms of regular budget funds, the subprogramme finances ended with a surplus of $0.59 million, mainly due to vacancy of established staff posts. Non-post expenditures reached 80% of the 2014 budget.

Moreover, the subprogramme utilized most of the extrabudgetary income, leaving a balance of $0.31 million. This amount was almost entirely due to the $0.29 million in the balance of the post support to macroeconomic policy activities, which is the largest post being allotted, reaching a total of $1.29 million during 2014.

4. Challenges

The lack of external funding, and lack of successful recruitment for vacant posts, affected progress and timely delivery in the implementation of some areas of work, most notably the ECA forecasting model, post-2015 development agenda activities, and the work requirements of projects on illicit financial flows. The subprogramme was also implementing a large number of activities relating to illicit financial flows carried over from the previous ECA business model.

Furthermore, monitoring and evaluation of the impact of knowledge products continues to be a challenge, as it is difficult to consistently track the utilization of ECA publications, in the development of national policies and interventions.

5. Lessons learned

The 2013 and 2014 editions of ERA have strengthened the subprogramme’s cooperation with other divisions of ECA, notably the Regional Integration and Trade Division (RITD) and the Social Development Division (SDD). These synergies are being utilized effectively, and moving the Economic Report on Africa (ERA) towards a truly ECA-wide product, ahead of the third International Conference on Financing for Development, in July 2015, the African Development Forum and the technical

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support to the High Level Panel on Illicit Financial Flows. In general, the subprogramme is steadily moving towards effective implementation of an integrated and coherent approach – a quality marker in the new business model.

However, in terms of the Commission’s quality markers, partnerships and quality of engagement, there are gaps to be filled. For instance, additional resources should be mobilized for the post-2015 development agenda activities and outputs, which are not earmarked in the work programme for 2014-2015, and thus have not been accounted for in the initial budget. In view of scarce financial resources as well as time constraints, ECA ought to reflect on the type of partnerships required to share the financial burden as well as the associated responsibility distribution.

The renewed ECA business plan, which puts greater emphasis on in-house research activities, paves the way for staff to better utilize their competence, while ensuring knowledge enhancement. This re- configuration, which has already helped to improve operational quality, is expected to be consolidated over 2015.

6. Way forward

ECA will continue to build on the significant momentum achieved with high-impact publications such as ERA 2013 and 2014, and to look for new ways to further promote knowledge products and key policy messages. The 2014 activities, outputs, and collaborations regarding the post-2015 agenda have been most useful for the Commission, its partners and member States. This accumulated expertise will be useful in the negotiations and formulations ahead of finalization of the upcoming global post- 2015 development agenda. In particular, the RCM outcome document regarding accountability will serve as an input into the synthesis report of the Secretary-General, which will in turn inform the intergovernmental negotiations on the post-2015 development agenda. Follow-up activities and information sharing will continue throughout 2015 to ensure that African perspectives and priorities are reflected in the final global document.

Furthermore, the subprogramme will continue to support member States in developing innovative and practical policy solutions towards structural transformation, sustainable growth and development, as well as mobilization of resources. For instance, in 2015, the subprogramme has a key role to play in organizing the third International Conference on Financing for Development that ECA will host in Addis Ababa, in July 2015.

B. Regional integration and trade

1. Overview

This subprogramme places emphasis on the central role of regional integration in African development by promoting the nexus between trade, industry, agriculture, land, infrastructure and investment.

In addition, it supports African countries in their efforts to boost intra-Africa trade and participate effectively in international trade. It focuses on analytical research in the areas of industrialization and infrastructure; investment; food security, agriculture and land; and trade.

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During the reporting period, the subprogramme undertook activities that covered key priorities of the integration agenda mainly by: (a) providing evidence-based policy support to countries aimed at enhancing their capacity to mobilize resources for development and improve private sector competitiveness; (b) assessing the investments needs and opportunities of regional projects and within Africa in general; (c) promoting agricultural and rural development, food, and land management as well as the growth of agribusiness and value chains in Africa, and (d) providing evidence-based analysis of the extent to which Africa’s export expansion has been accompanied by improvements in trade diversification.

2. Progress, key achievements and results

a. Enhanced capacity of member States and RECs to develop and implement policies and programmes in the areas of intra-African trade and international trade and negotiations in support of regional integration

(i) Increased number of countries and RECs developing or implementing policies or programmes in the context of free trade areas or customs unions between and across the RECs.

2010-2011: 10 countries, 1 REC Estimate 2012-2013: 18 countries, 2 RECs Target 2014-2015: 30 countries, 6 RECs Achieved 2014:27 countries³

(ii) Increased number of common positions adopted or implemented by member States, with ECA assistance, in the area of international trade or trade negotiations.

2010-2011: not applicable Estimate 2012-2013: 10 countries;

Target 2014- 2015: 15 countries;

Achieved 2014:11 countries⁴

1.1 Advisory services in the areas of trade and regional integration

1.2 Establishment of technical; working groups for BIAT/CFTA action plans

1.3 Trade negotiations capacity building for EPAs 1.4 Capacity-building for negotiating Aid for Trade 1.5 White paper detailing future economic relation-

ship between Africa and USA

1.6 Development of AGOA National Response Strategies

1.7 Development of a Regional Integration Index for Africa

1.8 Toolkit for “Compilation and Analysis of Statistics on Women in Informal Cross-Border Trade in Africa”

Progress has been made in Boosting Intra-African Trade (BIAT) and in enhancing Continental Free Trade Area (CFTA) initiatives among member States and RECs. To drive the implementation process, ECA in collaboration with AUC and UNDP, are sensitizing RECs and selected member States on CFTA and BIAT. Consultative meetings have been organized to seek the buy-in of all stakeholders, in addition to concrete and implementable action plans that were developed for BIAT at the national, regional, and continental levels. To date, the Common Market for Eastern and Southern Africa (COMESA), the Economic Community of Central African States (ECCAS), the Southern African Development Community (SADC), Gabon, Nigeria, the United Republic of Tanzania and Tunisia have held CFTA/BIAT consultative meetings. Draft action plans have been prepared for Nigeria, the United Republic of Tanzania and the Arab Maghreb Union (AMU). ECAAS, Gabon and Tunisia are in the process of developing their own action plans. The next phase of support for the preparation of action plans is set for the East African Community (EAC), the Economic Community of West African States (ECOWAS), Morocco, Zambia, and Zimbabwe.

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3 Algeria, Benin, Cameroon, Chad, Côte d’Ivoire, the Democratic Republic of the Congo, Djibouti, Ethiopia, Gabon, Ghana, Malawi, Morocco, Mauritania, Kenya, Libya, Rwanda, Burundi, Nigeria, the Sudan, the United Republic of Tanzania, Togo, Tunisia, Zambia, Lesotho, Swaziland, Uganda and Zimbabwe.

4 Ethiopia, Gabon, Kenya, Rwanda, Nigeria, the United Republic of Tanzania, Togo, Tunisia, Zambia, Lesotho and Swaziland.

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Over the course of 2014, the subprogramme deepened its analysis of Economic and Partnership Agreements (EPAs), and remained involved in the negotiation process, in coordination with AUC.

Acting at the request of concerned stakeholders and in close coordination with relevant RECs, ECA undertook a study on the impact of EPAs in the ECOWAS and EAC subregions. The study, based on Computable General Equilibrium simulations, assessed whether EPAs would support Africa’s transformation and regional integration efforts. The study showed that, in the first instance, African countries were unlikely to reap substantial benefits from EPAs, with the exception of a few non- LDCs exporting to the European Union’s previously sensitive agricultural products (mainly rice, sugar, diaries and meat). In the second instance, simulation findings made a strong case to sequence trade liberalization in such a way that effective regional integration would be implemented before EPAs.

Following the support provided to the African Group of Negotiators in Geneva (AGN) in the run-up to the ninth WTO Ministerial Conference, ECA carried out a number of activities which resulted in consolidation of the positioning of the African Group in relation to the WTO post-Bali work programme. This was done through (a) the analysis of the Bali outcome; (b) provision of technical assistance and knowledge generation in relation to negotiations on Agriculture; and (c) the provision of technical assistance and knowledge generation in relation to trade facilitation.

In collaboration with the ECA Food Security Agriculture and Land Sections, ECA trained member States and provided them with evidence-based resources to strengthen their knowledge and skills for managing the emerging trends in international agricultural markets, their strategic interests, the position of the African Group in relations to the post-Bali work programme, and the revived negotiations on Agriculture, which will all contribute to establishment of the CFTA.

In addition, ECA produced a white paper detailing USA-Africa relations, with regards to their future economic relationship, with the aim of contributing to the ongoing deliberations on the post-2015 agenda. ECA also developed the African Growth Opportunity Act (AGOA) National Response Strategy Guidelines, accompanied by a monitoring and evaluation (M&E) framework to monitor and track the performance AGOA-eligible countries in the Act’s implementation, which resulted in the countries using the framework to develop their own response strategies. Since the development of the frameworks, Cameroon, Côte d’Ivoire, Ethiopia, Lesotho, Nigeria, and Zambia have asked for technical support from ECA to develop their own strategies. While Ethiopia has started to implement its own strategy, by establishing the Ethiopian AGOA Centre which serves as a technical and information hub to assist identified priority sectors in increasing their exports to the United States. Lesotho and Zambia have finalized their national response strategies. Benin and Cameroon are at the initial phase of developing their own strategies, and Madagascar will soon embark on the same process. As a result of the momentum and high demand from eligible countries for the initiative, AfDB has sought a joint collaboration with ECA on this activity.

Furthermore, ECA and AUC were successful in having resolutions passed on a methodology for an Africa Regional Integration Index, by the seventh Joint Annual Meetings of the AU-ECA Conference of Ministers, and the seventh Conference of African Ministers in Charge of Integration. The methodology project was merged with a similar AfDB initiative, and ECA, AfDB and AUC finalized a joint methodology and road map for its implementation. ECA further contributed to the project by developing comprehensive metadata, and questionnaires, and by training seven pilot countries on data collection for the index and the newly developed indicators. To date, l metadata has been collected

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feedback from the first Conference of Director-Generals of African National Statistics Offices and Statistical Commission for Africa.

b. Improved capacity at the national, subregional and regional levels for designing and implementing effective policies and programmes in the areas of food security, agriculture and land management

i. Increased number of member States and RECs designing or implementing policies or programmes aimed at achieving agriculture development and food security

2010-2011: 4 countries, 1 REC Estimate: 2012-2013: 5 countries, 2 RECs Target 2014- 2015: 6countries; 5RECs Achieved:2014: 10 countries⁵ 2 RECs⁶

2.1 Contribution to the design of the 7 salient goals of the Africa’s Accelerated Agricultural growth and transformation for Malabo summit

2.2 Contribution to the organizing of the Africa Food and Nutrition day

2.3 Preparation of a White Paper on Doha Agreement on Trade related to Agriculture and focusing on post-Bali issues.

2.4 Launching of a regional value chain on three commodities, rice, maize, and livestock in COMESA and ECOWAS

ii. Increased number of countries and RECs designing or implementing policies or programmes addressing land management issues as a result of the work of the subprogramme

Estimate 2012-2013: 12 countries; 1 REC

Achieved 2014: 6 countries⁷; 6 RECs⁸ and 3 continental organizations⁹

2.5 Six countries implementing land policy programme of work

2.6 Developed Joint land governance programme of work with 6 RECs

2.7 Established CSO platform on land policy and governance 2.8 Guiding principles on LSLBI endorsed by African Minis-

ters of Agriculture(4/14)

2.9 Land governance included in SDGs (ECA/LPI/ UN- Habitat/ joint effort)

2.10 Developed gender strategy communication framework and M&E

In May 2014, the AU/ECA Joint Conference of Ministers of Agriculture, Rural Development, Fisheries and Aquaculture adopted a resolution in the areas of food security and agriculture development, with commitments to adopt and implement the seven salient goals of the “Africa’s Accelerated Agricultural Growth and Transformation” to be achieved by 2015. In addition, the subprogramme substantially contributed to the planning and organization of the Africa Day on Food and Nutrition Security.

Furthermore, ECA has led efforts to develop a statutory report on the “State of Food and Nutrition Security in Africa”. The report represents the consensus view of the organizations involved on how best to tackle the results of the food and nutrition security-related political commitments, with a view to achieve a Hunger Free Africa by 2025. The subprogramme also prepared a white paper on “The Doha agenda: What’s in it for Africa and what next for secured development outcomes and fast integration imperatives”. The paper provides an evidence-based technical guidance to help build an informed African consensus around issues of major concern in the negotiations related to Agriculture in the Post-Bali Doha Post-2015 Development Agenda, to better address the needs and aspirations of the African people.

Other accomplishments include (a) the launch of a major research initiative on Africa’s agriculture and rural transformation, drawing from the ongoing transformational experiences of five African economies; and (b) the launch of pilot projects on regional value chains in conjunction with other implementing partners and concerned value chain actors in the ECOWAS countries, starting with

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5 Botswana, Côte d’Ivoire, Ethiopia, Ghana, Mauritius, Malawi, Morocco, the United Republic of Tanzania, Uganda and Zambia.

6 COMESA, ECOWAS.

7 Angola, Burundi, Kenya, the Niger, Somalia and Zambia.

8 COMESA, EAC, ECCAS, ECOWAS, IGAD and SADC.

9 NEPAD/NPCA, Pan-African Parliament (PAP) and Regional Centre for Mapping and Resource Development (RCMRD).

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baseline studies in three strategic commodities, namely rice, maize, and livestock. The subprogramme is currently conducting studies on three major agricultural commodities in ten countries, with the aim of identifying the knowledge gaps, the capacities of the agents, and decision-makers in the sector, and to provide them with relevant training.

Furthermore, the subprogramme contributed to development of land indicators for inclusion in the SDGs, and provided inputs to the African Union Chairperson’s report to the Summit on the implementation of the AU agenda on land, which was presented in June 2014. Six RECs (COMESA, EAC, ECCAS, ECOWAS, IGAD, and SADC) and two member States (the Niger and Zambia) have developed work plans for implementing the African Union Declaration on Land, and parliamentary training was conducted on Large Scale Land Based Investments (LSLBI).

c. Enhanced capacity of member States and RECs to develop policies and programmes in the areas of industrialization, infrastructure, energy and investment

i. Increased number of countries and RECs developing policies or programmes in the areas of industrialization, infrastructure, energy or investment, as a result of ECA research and advocacy work.

(Industrialization and infrastructure) 2010-2012: 6 countries

Estimate 2012-2013: 8 countries, 1 REC Target 2014-2015: 11 countries, 2 RECs Achieved 2014: 11 countries¹⁰ 4 RECS (EAC, SADC, COMESA, IGAD)

3.1 Case study on the landscape of policy reforms and investment agreements in Africa

3.2 A review of industrial policies and strategies in Africa

3.3 Review of investment policies and bilateral investment treaties in Africa

3.5 Regional review of the status of implementation of the Almaty Programme of Action

3.5 Study on the promotion of renewable energy and energy efficiency technologies in Africa 3.6 Road Safety Charter for Africa prepared and

adopted.

3.7 M&E on regional infrastructure projects established.

3.8 Publication on private equity and its potential role in economic growth in Africa.

3.9 Expert Group Meeting on investment policies and bilateral investment agreements

ECA contributed to discussion papers for the AU Conference of African Ministers in charge of Transport in Malabo (April, 2014), where the Road Safety Charter for Africa and the Regional Review report on the status of implementation of the Almaty Programme of Action were presented and adopted by the conference.

Further, ECA organized a regional seminar for promoting renewable energy and energy efficiency which focused on addressing investment and financing challenges. Implementation of a regional platform, the Forum on Monitoring and Evaluation of Regional Infrastructure projects was initiated, and the first Forum convened on 24 July 2014. The ECA Observatory on Regional Integration in Africa is now fully operational and is regularly updated to provide real time data on country profiles, treaties, and relevant data.

In addition, ECA undertook a survey in 36 African countries to review their investment policies and bilateral investment treaties. The main objective of the study was to review the investment landscape in Africa, including the prevalence, scope, application and contribution of investment agreements, identify key issues, concerns and challenges arising from these agreements, and examine their regional

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10 Including Gabon, Morocco, Rwanda, Senegal, Swaziland and Zambia.

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integration dimensions, to propose appropriate policy recommendations. The survey targeted various policymakers and stakeholders, including investment promotion agencies, chambers of commerce and ministries of trade, finance, and planning.

This work, which advocates for a renegotiation of bilateral investment treaties for African and developing countries, to enable them to become more responsive to their development needs, will be discussed in a global forum on bilateral investment treaties, organized by the United Nations Conference on Trade and Development (UNCTAD) in February 2015.

ECA also undertook a major policy study on private equity, as a potential alternative source of investment to support development efforts in Africa. The Prime Minister of Côte d’Ivoire signed the Foreword of the publication, which is a strong recognition of work. Further, advocacy work was undertaken on the subject in the context of the ninth African Development Forum, held in Marrakech, Morocco, from 12 to 16 October 2014 on the theme “Innovative financing for Africa’s transformation”.

This advocacy work, as expected, resulted in several member States adopting policy recommendations to improve and enhance ecosystems for more private equity investments, which are already on the increase across Africa, particularly in countries such as Kenya, Nigeria and South Africa.

3. Financial performance

A. Approved budget from PIP

RB 3,263,000.00*

XB 11,119,390.00

Total 14,382,390.00

* Includes 3% M&E.

B. Funds received (Jan – Dec 2014)

RB Amount received 3,263,000.00

XB Balance brought forward as at 1 Jan. 2014 3,947,860.05

XB Amount received from ECA (Jan–Dec ‘14) 6,214,276.14

Total (RB and XB) 13,425,136.19

Variance analysis (planned PIP and available) 957,253.18

C. Expenditure (Jan – Dec 2014)

RB 3,279,677.34

XB 6,042,725.18 (LPI & ATPC)

Total 9,322,402.52

D. Available balance as at 31 Dec 2014

Total B – C 4,102,733.67

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The approved budget (regular budget and extrabudgetary), equivalent to $14,382,390, was used to support key priority activities. These provided evidence-based policy support to countries, assessed investments needs and opportunities of regional projects and promoted agricultural and rural development, food, and land management as well as the growth of agribusiness and value chains in Africa.

Regular budget and extrabudgetary funds received both relate to the year’s activities (January to December 2014). The extrabudgetary opening balance relates largely to projects with ongoing activities of LPI and ATPC. Activities in both centres are still ongoing.

The available balance of $4,102,733.67 is mainly earmarked for the land policy initiative (LPI), as funds were received late in 2014 and were for pre-planned activities destined to take place during 2015.

The extrabudgetary funds received by RITD came from different sources, notably, CIDA, EU and SDC.

RITD would need additional regular budget funds to adequately meet its various mandates, covering wide areas of particular importance to Africa’s development, namely trade, regional integration, industry, infrastructure, land policies development, transport, agriculture, and energy in the upcoming fiscal years.

4. Challenges

There is an increasing demand from member States and RECs for ECA analytical inputs and support on a number of issues including: (a) trade negotiations, (b) follow-up and implementation of the Post-Bali Doha Development Agenda (DDA), the (Rio+20, and of the 23rd Ordinary Session of the Summit of the African Union, held in Malabo, Equatorial Guinea on 27 June 2014, under the theme: “2014 Year of Agriculture and Food Security”, including the budget for 2015 (Malabo 2015). These challenges are related to capacity development in the formulation and implementation of land policies; development and promotion of regionally coordinated strategic agricultural commodities value chains in Africa; and in the global context, sustainable bio-energy development; and agriculture and rural transformation.

In addition, the slow disbursement of funds from partners towards committed development programmes slows implementation by member States of protocols adopted by Heads of State, and there is a lack of capacity in member States to formulate and follow-up on their technical requests correctly and formally.

5. Lessons learned

In order to respond effectively to the increased demand from member States and RECs for analytical inputs, capacity-building and policy advice to formulate and promote policies, strategies and programmes to achieve skills in trade negotiations; developed international trade and economic transformation through industrialization and development financing strategies, the subprogramme will need to mobilize additional human and financial resources. It will further engage with RECs in the design and implementation of joint tasks to better address the different needs of beneficiaries in terms of messages and outputs arising from the work of ECA.

6. Way forward

ECA will:

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• Scale up efforts to provide the capacity for trade negotiations in the context of EPAs and also Aid for Trade), for land management and land issues. This trend will continue.

• Raise and mobilize funds for research work and dissemination of the key findings of studies related to the review of investment policies and bilateral investment treaties.

• Continue to explore synergies and partnerships with national and international institutions with the view of assisting member States in their transformation agenda.

C. Innovation, technologies and management of Africa’s natural resources

1. Overview

The strategic focus of the subprogramme is to promote the adoption and implementation of new initiatives in the areas of natural resources management, climate change and new technologies in view of supporting the advancement of economic and social transformation in Africa. In 2014, ECA continued to support research, policy development and analytical work aimed at using innovations and technological systems as engines of economic growth. The Commission also continued to enhance the capacity of member States to implement policy reforms to achieve green transformation, effectively use and manage mineral resources, and address challenges of climate change in key development sectors.

2. Progress, key achievements and results

(a) Enhanced capacity of member States and RECs to nurture and harness new technologies and innovations for development

(i) Increased number of national, subregional and regional initiatives

harnessing new technologies and

innovations for development as a result of ECA research and advocacy work

Performance measures 2010-2011: not applicable Estimate 2012-2013: 15 initiatives Target 2014-2015: 20 initiatives Achieved : 15 initiatives¹¹

1. 1 Best practices in science, technology and innovation: report on technology development, transfer and deployment for sustainable development in Africa:

Innovation and technology transfer for enhanced productivity and competitiveness in Africa 1. 2 Country Profiles on innovation: a methodological

framework for country profiles on science, technology and innovation readiness

1. 3 Open Government data in Africa: a research study for developing guidelines on “Policy, legal and technical requirements for Open Government in Africa”

1. 4 The contribution of ICT to Africa’s GDP growth: A research study on the contribution of ICT to economic growth in Africa

1. 5 Youth and innovation: research on youth and innovation in Africa

1. 6 Policy briefs and position papers on innovation and new technologies: 3 policy briefs prepared on cybersecurity, e-commerce facilitation and biomedical engineering.

1. 7 Visiting scholars, fellows and interns to enhance capacity in development issues and policy analysis (ii) Increased number of institutions and

networks of innovators and inventors

supported by member States and RECs as a result of ECA research and advocacy work

Performance measures 2010-2011: not applicable Estimate 2012-2013: 2 institutions Target 2014-2015: 5 institutions Achieved : 18

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11 1-Country profiles on innovation; 2-Open government data in Africa; 3-Contribution of ICT to Africa’s GDP growth; 4-Best practices in science, technology and Innovation; 5-A methodological framework for country science, technology and innovation readiness; 6-Guideline on “Policy, legal and technical requirements for Open Government in Africa”; 7-Youth and Innovation; 8-10-three policy briefs prepared on cybersecurity, e-commerce facilitation and biomedical engineering; 11-Follow-up to the World Summit on Information Society (WSIS) ; 12-The African Internet Governance Forum (AfIGF); 13-e-Government strategy implementation process in Republic of Guinea; 14-Measuring ICT capacity- building organized for national stakeholders’ in Namibia; 15-A manual on e-Government indicators.

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ECA developed an e-Government indicator manual and the e-Government strategy in the Republic of Guinea, the continental guidelines on Open Government (OG) and open government data (OGD) in Africa; formulated ICT policy implementation plans in Cameroon, Ethiopia, the Gambia, Ghana, and Morocco. ECA also started providing assistance to Namibia for development and implementation of its e-Government indicators.

As platforms for research outputs review or consensus building, the ECA organized expert group meetings, and produced several knowledge products and policy briefs. These meetings were held on: (a) Policy, legal and technical requirements for OG in Africa; (b) the role of science, technology and innovation in economic transformation and poverty reduction; (c) the Senior Experts Dialogue on Science, Technology and Innovation and the African Transformation Agenda; and (d) “Assessing the contribution of Information and Communication Technology(ICT) to recent economic growth performance in Africa”.

The publications included: (a) Tackling the challenges of cyber security in Africa; (b) Measuring e-government: key policy instrument for information society development; (c) Can e-commerce facilitate the growth of small and medium-sized enterprises in Africa? (d) Building biomedical engineering capacity for improved health-care outcomes in Africa; and, (e) Using national inventors’

associations to accelerate the adoption of technology and innovation in Africa.

In 2014, ECA engaged with more than ten institutions and networks of innovators, surpassing its projected/targeted five. It supported the Innovators Association of Ethiopia, assisted researchers from 10 African universities and 8 technology development and commercialization agencies, to improve the technical competencies of students and researchers, and to design and commercialize technological innovations for improved healthcare outcomes in Ethiopia, Kenya, Malawi, Uganda and Zambia.

In the area of formulating and implementing policy reforms to achieve green transformation and realize fuller benefits from critical sectors, in-depth studies were carried out to assess how Africa’s key natural resources and related sectors could be harnessed to promote inclusive green growth. This work was carried out within the framework of the Rio+20 outcomes informed by Africa’s development priorities.

(a) Enhanced capacity of member States to formulate and implement policy reforms to achieve green transformation and realize fuller

benefits from critical sectors

(i) Increased number of countries that have formulated or implemented policy reforms to achieve green transformation and realize fuller benefits from critical sectors as a result of ECA research and advocacy work.

Performance measures 2010-2011: not applicable Estimate 2012-2013: not applicable Target 2014-2015: 2 countries Achieved: One (Ethiopia)

2. 1 Report on means of implementation for sustainable development in Africa: Enabling measures for an inclusive green economy (IGE) in Africa 2. 2 Sustainable Development Report on Africa:

Integrated assessment tools and methodologies for IGE in Africa

2. 3 Report on green economy policies in Africa:

inclusive green economy policies and structural transformation in selected African countries 2. 4 Implementation of the project on strengthening

capacities of African policymakers to mainstream natural disaster risk reduction (DRR) into national and regional development policies and strategies in Africa

To achieve the target of two (2) countries for the biennium, ECA conducted in-depth studies to assess how Africa’s key natural resources and related sectors could be harnessed to promote inclusive green

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Mozambique and Tunisia) focusing on inclusive green economy and structural transformation, and on research outputs for Burkina Faso, Ethiopia, Gabon and Tunisia. These case studies have been presented and disseminated to key policymakers and experts in their respective countries.

As a result of these outputs, multi-stakeholder dialogue, networking and coordination, and understanding on inclusive green economy (IGE) policies and structural transformation have been enhanced in the last four countries mentioned. The subprogramme also engaged with African experts and policymakers from the subregion to identify, validate, and better articulate the necessary enabling

measures for IGE in Africa. In support of these measures, it prepared a report on integrated assessment tools and methodologies for furthering IGE in Africa. An ad hoc expert group meeting was also convened to enhance understanding, multi-stakeholder dialogue, networking and experience sharing on integrated assessment tools and methodologies.

There is continued interest and commitment from member States to implement an IGE agenda to further Africa’s sustainable development aspirations. This is demonstrated by the adoption of the African Green Economy Partnership (AGEP) by the African Ministerial Conference on the Environment (AMCEN), and by requests made at several regional and global forums, including the Conferences of African Ministers of Finance, Planning and Economic Development, the Africa Regional Preparatory Conference for Rio+20, and the Africa Regional Implementation Meeting on the Rio+20 follow-up processes.

(b) Enhanced capacity of member States to formulate and implement policy reforms to realize fuller benefits from mining sectors

(i) Increased number of countries

with policies or regulatory frameworks for the management of mineral resources in line with the Africa Mining Vision

Performance measures 2010-2011: not applicable Estimate 2012-2013: not applicable Target 2014-2015: 5 countries Achieved: 3

2. 1 A Country Mining Vision Handbook: Domesticating the Africa Mining Vision

2. 2 Regional Initiatives on Extractives in Africa:

Leveraging the Africa Mining Vision for quality of governance

2. 3 Step-by-Step Guide in support of the CMV Hand- book, with UNDP.

2. 4 A gap analysis of African Geological Survey Organizations (GSOs) capacities.

2. 5 Report on the Model Mining Agreement for the Guinea Simandou Block II Project

During the reporting period, ECA assisted three African countries in implementing their Country Mineral Visions (CMVs) and commissioned a number of research studies, strategic frameworks and capacity-building activities aimed at creating an enabling environment for the implementation of the African Mining Vision (AMV). These countries included Lesotho, Mozambique and the United Republic of Tanzania. Following requests from Guinea and Ghana, AMDC initiated technical assistance in designing their CMVs. In November 2014, an AMDC Technical Assessment Team undertook a mission to Guinea to review the mining fiscal regime and its compliance with the AMV.

The mission resulted in the design and development of a mining model agreement (MMA) for the second Simandou iron ore block due for bidding very shortly.

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Different knowledge products and analytical tools have also been produced to support evidence-based policy processes and decision-making in the mineral sector particularly AMV implementation. These include: (a) “Regional initiatives on extractives in Africa: leveraging the Africa Mining Vision for quality of governance”; (b) template and methodology to guide the migration of the AMV to country-level policy and regulatory frameworks; (c) gap analysis of African Geological Survey Organizations (GSOs) capacities; (d) “A Country Mining Vision Handbook: Domesticating the Africa Mining Vision”.

In addition to this, UNDP, as an implementing partner of AMDC, hosted a meeting on “Implementation of the African Regional Project on Extractives in Support of the Africa Mining Vision”, which reviewed the draft step-by-step guide in support of the CMV Handbook. The meeting reaffirmed the partnership between UNDP, ECA, AUC and AfDB as AMDC implementing partners and also reviewed progress made towards domesticating the AMV in 8 member States.¹²

Further, AMDC has been engaging the African geology community in the context of the World Bank’s African Minerals Geosciences Initiative (AMGI), or the so-called “Billion Dollar Map”. Outcomes of this collaboration included establishment of a technical working group to address issues of geological information, including AMGI.

AMDC also launched the “Africa Mining Vision Day” at the African Mining Indaba 2014, as an opportunity to build on the outcomes of the third Ministerial Conference of African Ministers of Mining. The key achievements of the 2014 Mining Indaba AMV Day were:

(a) African business leaders were familiarized with the contents of the AMV compact (b) The idea of an African Minerals Skills Council was floated; and

(c) The AMV Day became a permanent feature of the Indaba.

The issue of illicit financial flows out of Africa has become a major impediment to the continent’s development, as estimates show that such flows could be as high as $50 billion per annum. Most are commercial transactions, especially arising from the natural resources sector, through tax evasion, and often outright abuse through mispricing.

In addition, AMDC supported the work of the High Level Panel on Illicit Financial Flows, by launching a project to review tax design and management in four mineral-exporting African countries, namely, the Democratic Republic of the Congo, South Africa, the United Republic of Tanzania and Zambia, in collaboration with the Macroeconomic Policy Division at ECA. The project will specifically review the regulatory and fiscal policy frameworks in these countries especially as it relates to mineral taxation and its impact on the domestic mobilization of revenue from the mineral sector. The study is expected to lead to proposals for optimized tax regimes and possible tax policy and regulatory proposals, and to strengthen the outcomes of the Panel, led by former President Mbeki.

In collaboration with the Commission’s Africa Centre for Gender (ACG), AMDC also launched a gender and mining study to review existing policy, legal and regulatory frameworks in the mining

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ECA Technical Cooperation Report 2014

2014

Table of Contents

Acronyms and abbreviations

Introduction

A. Macroeconomic policy

1. Overview

2. Progress, key achievements and results

3. Financial performance

4. Challenges

5. Lessons learned

6. Way forward

B. Regional integration and trade

1. Overview

2. Progress, key achievements and results

3. Financial performance

4. Challenges

5. Lessons learned

6. Way forward

C. Innovation, technologies and management of Africa’s natural resources

1. Overview

2. Progress, key achievements and results