IMF SAYS GAMBIA'S VAT IS KILLING THE ECONOMY, BUSINESSES

The International Monetary Fund (IMF) says Gambia’s newly introduced Tax collection system — the Value Added Tax (VAT)- is killing the country’s ailing economy and businesses. “The outlook for the economy is generally favorable for 2013, but there are risks. Real GDP growth is expected to accelerate, if the recovery in crop production is sustained.

Also, by accessing new markets, the potential for growth in tourism looks good. Inflation, however, has picked up, partly due to side effects from the introduction of the value-added tax (VAT) at the beginning of the year. For example, although the VAT is applied to firms with a turnover of at least one million dalasis, we understand that many smaller businesses also raised their prices opportunistically. During the first quarter of 2013, government spending once again exceeded planned allocations, contributing to an uptick in Treasury-bill yields. Correspondingly high bank lending rates are discouraging private sector borrowing,” a report issued by an IMF delegation who just concluded discussions with the Gambian authorities on the first review of the ECF arrangement.



The IMF delegation led by David Dunn is also not impressed by Gambia’s recent economic performance. Inflation is on the rise while government spending is jumping the roof.

“The Gambian economy is still recovering from the severe drought of 2011. Real gross domestic product (GDP) grew by an estimated 4 percent in 2012, led by a partial rebound in crop production and strength in the tourism sector. Inflation remained under control, ending the year at just under 5 percent, despite the depreciation of the Gambian dalasi during the second half of the year. A substantial overrun in government spending late in the year resulted in higher-than-budgeted domestic borrowing (3½ percent of GDP),” Mr. Dunn said.

Mr. Amadou Colley, Governor of Gambia’s Central Bank earlier this week tried to mislead the press and the nation by depicting a wrong picture of the economy. Colley failed to share the IMF team’s fact finding mission’s report. He instead furnished the press with a different picture of the realities on the ground. His sources are questionable—given the fact that this administration’s reputation of trying to monopolize the truth is evident on their modus operandi.

CBG's governor Amadou Kolley

“The Gambia Bureau of Statistics (GBoS), the Gambia economy is estimated to have grown by 6.3 percent in 2012 following a contraction of 4.6 percent in 2011; agriculture valued-added increased by 7.5 percent, industry (6.6 percent) and services (5.8 percent). Money supply grew by 8.8 percent in the year to end-March 2013, lower than the 14.9 percent in 2012. Both narrow money and quasi money grew by 16.3 percent and 2.7 percent compared to 7.8 percent and 9.3 percent respectively a year earlier,” Mr. Colley claimed.

“While reserve money grew by 3.4 percent, lower than the 8.7 percent in March 2012 and the target of 4.8 percent, he said the provisional data on government fiscal operations in the first quarter of 2013 indicate that revenue and grants amounted to D1.5 billion (4.6 percent of GDP) compared to D1.9 billion (5.9 percent of GDP) in the same period in 2012. "Domestic revenue totaled D1.4 billion (4.2 percent of GDP), higher than the D1.2 billion (3.7 percent of GDP) recorded in the corresponding period of 2012."

Mr. Colley admitted that Gambia’s inflation is going out of hand. As such, Colley said, prices for basic commodities, utilities, and energy are going up.

“While consumer food inflation rose from 4.8 percent in March 2012 to 6.4 percent in March 2013 driven mainly by price developments in bread cereals, the consumer non-food inflation also rose to 4.1 percent in March 2013 from 2.7 percent in March 2012 partly reflecting the increase in the cost of energy. Core inflation, which includes the prices to utilities, energy and volatile food items, increased to 5.3 percent from 4.0 percent a year earlier,” Mr. Colley told the local press here.

But IMF’S David Dunn is not optimistic about the country’s Gross Domestic Product (GDP). The country’s past crop failure is impacting negatively on the economy. He said VAT is killing the private sector. Businesses are being overtaxed.

IMF’S David Dunn

“The outlook for the economy is generally favorable for 2013, but there are risks. Real GDP growth is expected to accelerate, if the recovery in crop production is sustained. Also, by accessing new markets, the potential for growth in tourism looks good. Inflation, however, has picked up, partly due to side effects from the introduction of the value-added tax (VAT) at the beginning of the year. For example, although the VAT is applied to firms with a turnover of at least one million dalasis, we understand that many smaller businesses also raised their prices opportunistically. During the first quarter of 2013, government spending once again exceeded planned allocations, contributing to an uptick in Treasury-bill yields,” Mr. Dunn stated.

While Central Bank Governor Amadou Colley is bragging about the so called performance of the banking sector, Mr. Dunn had a complete different view about Gambia’s banking industry.

“Correspondingly high bank lending rates are discouraging private sector borrowing,” Dunn said.

RUSSIA SEEKS GAMBIA'S SUPPORT TO HOST WORLD EXPO 2020

A special envoy dispatched to Banjul by the Russian Federation has disclosed that he came to seek The Gambia’s support in his country’s bid to host the World EXPO 2020 in the city of Ekaterinburg, report the Daily Observer - government's controlled newspaper.

DV. Shubman, director of the staff of the Deputy Prime Minister, of the Russian Federation, said the event would open up a unique opportunity for the world to rediscover this city, designated in 1723 by Peter the Great, as the industrial centre of Russia. “We are here to promote the Russian bid to host the World Expo 2020. We made a presentation of our project to the Gambia government and we are very hopeful of a positive response from The Gambia,” DV. Shubman told journalists at State House in an interview Thursday, shortly after having a brief meeting with The Gambia’s Presidential Affairs minister, Dr Njogu Bah.

The Russian city to host the 2020 World Expo

“We have a team of our exposition which is a global mind and we are planning to receive up to 150 delegates from all over the world. They will be able to promote their countries in Russia in 2020, especially if Russia wins the bidding competition, of which five countries are battling for a win as to which country will host the event in 2020. Brazil, Russia, Thailand, Turkey, and the United Arab Emirates have all officially bid to host the World Expo 2020. A decision will be made at the BIE General Assembly this year to determine the winner of the bids,” he explained.

Asked about the reaction of The Gambia government, Shubman said they are hopeful of a positive response. “We have not had any response yet from the Gambia government but we are hopeful of a positive one. We just came to make a presentation to the Gambian authorities about the bid which voting will take place in November this year in Paris. There is no response yet from the government but our presentation was received at the high level and we are hopeful that we will receive a positive one from The Gambia,” the Russian diplomat told reporters.

Dr Njogu Bah

According to him, his Banjul visit also accorded him and delegation to talk about Gambia-Russia relations. “We hope that we will be able to cooperate with The Gambia to support this project of Expo 2020 bid,” he added.

The Expo 2020 would be the larger of the two kinds of world fairs, analogous to the Summer Olympics. It is considered "sanctioned" by the BIE, held every five years. Germany hosted Expo 2000; Japan hosted Expo 2005 China hosted Expo 2010; and Italy is preparing to host Expo 2015.
DV. Shubman was accompanied to the Presidency by the Russian ambassador to Senegal and accredited to The Gambia, His Excellency Valery Nesterushkin Shubman.

CHINA, AFRICA EXPLORE NEW OPPORTUNITIES TO COOPERATE ON HEALTH CHALLENGES, STRENGTHEN INNOVATIONS

Chinese and African leaders will come together at the 4th International Roundtable on China-Africa Health Cooperation to explore new partnerships to address some of the most pressing health challenges facing Africa and strengthen an innovative health partnership based on south-south cooperation. This year’s roundtable is the first to take place on the African continent. It will focus on promoting sustainable health solutions that meet the needs and priorities of African countries and draw on China’s unique expertise.



Officials will engage in two days of sessions aimed at determining how China and African countries can jointly tackle critical issues such as AIDS, malaria, schistosomiasis, reproductive health, access to lifesaving vaccines and non-communicable diseases. These health issues disproportionately affect African countries and have also been major health challenges for China. At the roundtable, China’s Director General of the National Health and Family Planning Commission will join Health Ministers from Botswana and Ghana; leaders from the African Union; representatives from the United Nations and non-governmental organizations; and entrepreneurs and business owners from China and Africa.

“Indeed, China and Africa have a long history of collaborating on health, built on shared challenges, experiences and addressing similar issues,” said Hon. Rev. Dr. John G. N. Seakgosing, Botswana’s Minister of Health. “China has a unique role in supporting African health progress. And with this roundtable, we look forward to deepening our partnership to benefit the health of our citizens.”

This roundtable comes as China and Africa mark the 50th anniversary of providing medical teams to Africa, with China also supporting African health personnel, infrastructure, malaria control and other programs such as scholarships for training health experts. At this year’s roundtable, officials will discuss how to shape health cooperation between China and Africa and help achieve long-term, sustainable gains, such as strengthening health systems and addressing the shortage of healthcare workers.

“Africa’s future is closely linked with our own and improving health is a critical building block towards a common prosperity,” said Dr. Ren Minghui, Director General of the Department of International Cooperation at China’s National Health and Family Planning Commission. “African countries have made tremendous gains to improve the health of their citizens. With China and Africa working hand-in-hand on health, we can have even greater impact.”

A major theme of the roundtable is how African and Chinese officials can create win-win scenarios that will benefit all partners. Much of China’s health assistance invests in expanding African capacity, which can help strengthen the continent’s self-sufficiency and economic development. China has a unique role in supporting Africa’s health progress, drawing from its investments in health research and development and its experience improving the health of its own citizens, such as its current health reform effort, which is the largest expansion of healthcare coverage in history.
When other countries send weapons to Africa, China sends water. China is gaining reputation for helping African countries develop

Roundtable participants will discuss how African countries can best work with Chinese scientists and pharmaceutical manufacturers to increase access to high-quality, low-cost health technologies, while ensuring products are safe and meet international quality standards. Participants will also explore how China can help support Africa’s local production of health products. At the same time, African leaders will share expertise on areas where China can learn from Africa, such as around AIDS prevention and treatment, to help improve China’s efforts at home. Africa has been very successful in scaling up HIV treatment as well as prevention of mother-to-child transmission programs.

“South-South cooperation facilitates optimization of resources, both human and material. This creates opportunities to share knowledge and experience, which contributes to sustainable health solutions,” said H.E. Dr. Mustapha Sidiki Kaloko, Commissioner of Social Affairs of the African Union. “China-Africa health partnership is based on a sense of shared responsibility and global solidarity in responding to health challenges.”

The roundtable comes as China and other emerging economies are bringing new resources and approaches to improve the health of people around the world. “The global health landscape is changing, with more partners than ever joining these efforts,” said Dr. Luiz Loures, Deputy Executive Director of Programme of UNAIDS. “The AIDS response and other experiences paved the way for transformative progress on health and can help China and Africa engage on a whole new level and innovate on a broad range of health issues.”

The roundtable sessions will be guided by discussion papers that draw on extensive research and discussion developed by the China-Africa Health Cooperation Taskforce, comprised of members of the Chinese government and leading technical institutions, with the support of international partners including the World Health Organization, United Nations Population Fund (UNFPA), UNAIDS, PATH, the Bill & Melinda Gates Foundation, Global Health Strategies Initiatives (GHSi) and other organizations.

Facts you don't want to miss

The papers propose pilot projects for China-Africa collaboration in areas such as strengthening laboratory systems; establishing national control systems for malaria and schistosomiasis; transferring ARV drug manufacturing technology and technical support for local production; training African health personnel; and sharing China’s expertise in cold chain management and surveillance systems to boost immunization coverage. Sessions will also address ways to ensure transparency in these efforts and to guarantee high quality products.

“China has tremendous potential to support Africa’s long-term development by leveraging innovation. The roundtable is an opportunity to define a path for China and Africa to make a positive impact together on health,” said Dr. Ray Yip, Director of the China Program of the Gates Foundation.
One aim of the roundtable is to develop joint recommendations that could lay the groundwork for a long-term strategic plan for China-Africa health cooperation, which could be considered at the Ministerial Forum of China-Africa Health Development, part of the Forum on China-Africa Cooperation (FOCAC), which will take place in August in Beijing.

This year’s roundtable is hosted by the Botswana Ministry of Health, the China Chamber of Commerce of the Ministry of Commerce and the Institute for Global Health of Peking University. The roundtable series, organized by the Institute for Global Health and the China Institute of International Studies, began in 2009 as part of a China-led initiative to evaluate and improve its foreign assistance.

AFRICA ATTRACTIVENESS: CONTINENT'S SHARE OF GLOBAL FDI INCREASES

Africa’s share of global foreign direct investment (FDI) has grown over the past five years highlighting the growing interest from foreign investors, according to Ernst & Young’s third Africa Attractiveness Survey , released yesterday.

The report combines an analysis of international investment into Africa over the past five years with a 2013 survey of over 500 global business leaders about their views on the potential of the African market. The latest data shows that despite a fall in project numbers from 867 in 2011 to 764 in 2012 — in line with the global trend — project numbers are still significantly higher than anything that preceded the peak of 2008. The continent’s global share of FDI has also grown from 3.2% in 2007 to 5.6% in 2012.
Mark Otty, Ernst & Young’s EMEIA Managing Partner comments, “A process of democratization that has taken root across much of the continent; ongoing improvements to the business environment; exponential growth in trade and investment and substantial improvements in the quality of human life have provided a platform for the economic growth that a large number of African economies have experienced over the past decade.”



Despite the impact of the ongoing global economic situation, the size of the African economy has more than tripled since 2000. The outlook also appears positive, with the region as a whole expected to grow by 4% for 2013 and 4.6% for 2014. A number of African economies are predicted to remain among the fastest growing in the world for the foreseeable future.

Eighty-six percent of those with an established presence on the continent believe that Africa’s attractiveness as a place to do business will continue to improve. Those surveyed rank Africa as the second most attractive regional investment destination in the world after Asia.

Increasing investment from emerging markets

Investment in FDI projects from developed markets fell by 20%. Although FDI projects from the UK grew (by 9% year-on-year), those from the US and France — the other two leading developed market investors in Africa — were considerably down. In contrast investments from emerging markets into Africa grew again in 2012, continuing the trend over the past three years.
In the period since 2007, the rate of FDI projects from emerging markets into Africa has grown at a healthy compound rate of over 21%. In comparison investment from developed markets has grown at only 8%. The top contributors from the emerging markets are India (237), South Africa (235), the UAE (210), China (152), Kenya (113), Nigeria (78), Saudi Arabia (56) and South Korea (57) all among the top 20 investors over that period.

Intra-African investment has been particularly impressive during the same period, growing at 33% compound rate. South Africa has been at the forefront of growth in intra-African trade and broader emerging market investment – (the single largest investor in FDI projects in 2012 outside of South Africa.) Kenya and Nigeria have also invested heavily but it is expected that others such as Angola, for example, with a US$5b sovereign wealth fund, will become increasingly prominent investors across the continent over the next few years.

Ajen Sita, Ernst & Young’s Africa Managing Partner comments, “There is a growing confidence and optimism among Africans themselves about the continent’s progress and future.”
AJEN SITA.

There has also been an important shift in emphasis in investment into the continent over the past few years, in terms of both destination markets and sectors. While investment into North Africa has largely stagnated, FDI projects into Sub-Saharan Africa have grown at a compound rate of 22% since 2007. Among the star performers attracting growing numbers of projects have been Ghana, Nigeria, Kenya, Tanzania, Zambia Mozambique, Mauritius and South Africa.

Perception versus reality

Our 2013 Africa Attractiveness Survey shows some progress in terms of investor perceptions since the inaugural survey in 2011. The majority of respondents are positive about the progress made and the outlook for Africa. Africa has also gained ground relative to other global regions. In 2011 Africa was only ranked ahead of two other regions, while this year it ranked ahead of five other regions (the former Soviet States, Eastern Europe, Western Europe, the Middle East and Central America).

However, there still remains a stark perception gap between those respondents who are already doing business in Africa versus those that have not yet invested in the continent. Those with an established business in Africa are overwhelmingly positive. They understand the real rather than perceived operational risks, have experienced the progress made and see the opportunities for future growth. Eight-six percent of these business leaders believe that Africa’s attractiveness as a place to do business will continue to improve, and they rank Africa as the second most attractive regional investment destination in the world after Asia.

In contrast, those with no business presence in Africa are far more negative about Africa’s progress and prospects. Only 47% of these respondents believe Africa’s attractiveness will improve over the next three years, and they rank Africa as the least attractive investment destination in the world.
The two fundamental challenges that are present for those already present or those looking to invest in Africa are transport and logistics infrastructure and anti-bribery and corruption. However, moves are being made on both accounts to help allay fears of investors.

Infrastructure gaps, particularly relating to logistics and electricity, are consistently cited as the biggest challenges by those doing business in Africa. At a macro level, too, Africa’s growth will be inherently constrained until the infrastructure deficit is bridged. The flip side of this challenge, however, is that strong growth has been occurring despite such infrastructure constraints. This indicates the potential to not only sustain, but accelerate growth as the gap is narrowed. Our analysis indicates that in 2012 there were over 800 active infrastructure projects across different sectors in Africa, with a combined value in excess of US$700b. The large majority of infrastructure projects are related to power (37%) and transport (41%).

Moving away from extractive industries

Due to volatile nature of commodity prices, an over-dependency on a few key sectors clearly raises questions about the sustainability of growth. Despite perceptions to the contrary, less than one third of Africa’s growth has come from natural resources.

The trend of growing diversification continues, with an ever increasing emphasis on services, manufacturing and infrastructure-related activities. In 2007 extractive industries represented 8% of FDI projects and 26% of capital invested in Africa; in 2012, it was a mere 2% of projects and 12% of capital. In comparison, services accounted for 70% of projects in 2012 (up from 45% in 2007), and manufacturing activities accounted for 43% of capital invested in 2012 (up from 22% in 2007).

Mining and metals is still perceived by survey respondents as the sector with the highest growth potential in Africa, but the number of respondents who believe this (26%) is down from 38% in 2012 and 44% in 2011. In contrast, interest in African infrastructure projects is clearly increasing, with 21% of respondents identifying this as growth sector versus 14% last year and only 4% in 2011. Other sectors where there has been a noticeable shift include ICT (14%, up from 8% last year), financial services (13%, up from 6% last year), and education (which has come from virtually nowhere to register 10% this year).

Mark comments, “These changing perceptions of relative sector attractiveness in Africa reflect the changing fundamentals of many Africa economies: the diversification of both sources of growth (for example, the increasing contribution of services and the growing consumer class), and of the actual FDI flowing into these economies.”

South Africa most attractive for foreign investors but others hot on its heels

The large majority of respondents view South Africa as the most attractive African country in which to do business: 41% of all respondents put South Africa in first place, while 61% included it in their top three. The primary reasons for South Africa’s popularity appear to be it relatively well developed infrastructure, a stable political environment and a relatively large domestic market. The next most popular countries were Morocco (20% placing in the top three, and 8% in first place), Nigeria (also 20% in top three, and 6% in first place), Egypt (15% top three and 5% first), and Kenya (15% top three and 4% first). In general, these rankings align with emerging regional hubs for doing business across different parts of Africa.

Looking ahead

Ajen concludes, “With an increasingly solid foundation of economic, political and social reform, together with resilient growth rates, we are confident that the continent as a whole is on a sustainable upward trajectory. This direction of travel, rather than the current destination, is what is most important.

“A critical mass of African economies will continue on this journey. Despite the fact that there will undoubtedly be bumps in the road, there is a strong probability that a number of these economies will follow the same development paths that some of the Asian and other Rapid Growth Markets have over the past 30 years. By the 2040s, we have no doubt that the likes of Nigeria, Ghana, Angola, Egypt, Kenya, Ethiopia and South Africa will be considered among the growth powerhouses of the global economy.”

PRIZE IDENTIFIES BREAKTRHOUGHS THAT EXAMPLIFY AFRICA'S INNOVATION AND INVESTMENT POTENTIAL

CAPE-TOWN, South-Africa, May 8, 2013/ -- With global population expected to grow to 9 billion by 2050 and more than 900 million people living in hunger, the demand for nutritious food is rapidly increasing. Acknowledging this need and the impact of hunger in Africa, the Innovation Prize for Africa (IPA) has named the AgriProtein team as its 2013 winner. The team of researchers and entrepreneurs will receive USD 100 000 for its innovative approach to nutrient recycling – a method that uses waste and fly larvae to produce natural animal feed.
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Selected from more than 900 applications from 45 countries, the AgriProtein team was recognized at the 2013 Innovation Prize for Africa Awards Ceremony and Gala Dinner in Cape Town, South Africa. The AgriProtein solution collects biodegradable waste, feeds it to flies that in turn produce larvae that are ground into protein to provide a more ecologically friendly, naturally occurring type of animal feed. This approach improves the nutritional value of meat and lowers the cost of animal feed for African processors and farmers

The IPA 2013 Gala also recognized two runners up for their contributions to African innovation. In the business potential category, Hassine Labaied and Anis Aouini from Saphon Energy received USD 25 000 for creating a bladeless wind convertor. In the social impact category, Sanoussi Diakite received USD 25 000 for developing a thermal powered machine that husks 5 kilograms of fonia – a West African cereal – in just 8 minutes.
“The Innovation Prize for Africa winners showcase African solutions to African challenges,” said Jean-Claude Bastos de Morais, co-founder of the African Innovation Foundation and the IPA. “It is time for private sector leaders, donors and governments to work together to invest in practical solutions that will sustain Africa’s economic growth.”

Winners were selected by a skilled panel of jurors based on the marketability, originality, scalability, social impact and business potential of their respective innovations. They are provided with unrestricted funds in recognition of their achievements and are free to use the Prize in the manner they deem most appropriate.

“We are honoured by this remarkable recognition,” said Jason Drew a member of the AgriProtein team. “We are passionate about expanding our business to recycle more waste nutrients and supply a natural protein to feed farm animals - helping sustainably feed our continent - this is an African contribution to sustainable agriculture for our planet.”

Founded by the African Innovation Foundation and the United Nations Economic Commission for Africa, the IPA is focused on building Africa’s capacity by investing in local entrepreneurship. The Prize mobilizes leaders from all sectors – private sector, donors and government – to promote and invest in African development through innovation.

“The AgriProtein team’s innovation is just one example of the game-changing African ideas that will continue to harness our natural resources profitably and sustainably,” said Dr.Francois Bonnici, Director Bertha Centre for Social Innovation at the University of Cape Town’s Graduate School of Business. “The IPA invests in Africa’s greatest resource – its human capital.”

MUSLIMS IN SWEDEN SHED 'TEARS' OVER HISTORICAL PRAYER CALL AT A MOSQUE IN STOCKHOLM

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Worshippers at the Fittja mosque in southern Stockholm on Friday heard Sweden's first-ever call to prayer, which brought some congregation members to tears of joy, reports The Local, Sweden's leading English news site.

Guluz Kayhan, 45, had tears in her eyes when the notes of Sweden's first-ever call to prayer ended and worshippers hurried up the steps of the mosque.

"I don't go to the mosque as often as before but I wanted to experience this," she told The Local as she wiped tears from her blue eyes. Flanked by her two daughters, Kayhan made her way inside, slipping off her shoes.
"I'm really proud of Sweden," said her daughters' friend Havva Göcmenoglu, 24. "I am proud of being part of a society that respects different religions."
Medborgarplatsen, Stockholm, Sweden.

Yet as the spring sun broke through the clouds after a bitterly dour morning, two men in a red Volvo 740 crept up to the curb and halted, just to spin their wheels so furiously the rubber shrieked as much as it burned. People making their way into the mosque turned their heads, but most seemed intent on ignoring the odd act.
The congregation was a mix of people who moved to Sweden from countries such as Turkey decades ago, but a number of people who immigrated more recently joined in too.

Kashif Rashid, 28, from Lahore in Pakistan just left Italy to join his brother in Sweden.
"In Italy I didn't even have a mosque to go to," he said on his way to the mosque, which is nestled in a beech copse just by a lake lined with the hulls of hibernating boats.
"For two years I have not heard this," he beamed.

Fittja Mosque, Stockholm, Sweden.

His enthusiasm was shared by others heading to pray. Abdi Muhammad, 27, originally from Somalia, travelled to Fittja from Rinkeby on the far other end of Stockholm
"Thank you to the government," he said.

Friday's prayer call came following a decision earlier this month by local police who ruled that it wouldn't violate local noise ordinances. The ruling allowed the prayer call for between three to five minutes on Fridays between midday and 1pm.
Back in September, local government officials had approved the move in principle, voting in favour of scrapping a 1994 prohibition on allowing prayer calls, which dated back from before the construction of the mosque.

The mosque was built in 2007 in the municipality's Fittja district and has over 1,500 members
Among veterans in the congregation, reactions were equally elated.
"The Swedes have pure hearts," said Fawzia Choudry, 46, who came to Sweden from Pakistan decades ago.
"We threw our hands in the air in delight when we heard the ruling, because at first nobody thought they'd give the permission."
Her daughter Toba, 21, used the Azan (call to prayer) app on her pink-encased iPhone in the mean time.

"People are so busy working; this really is a good reminder," she said.

AfDB's COMPELLING CASE FOR AFRICA'S STRUCTURAL TRANSFORMATION

For the African Development Bank (AfDB), transforming Africa’s economies entails diversifying and expanding the sources of economic growth and opportunity in a manner that promotes greater productivity for sustained and inclusive economic development.

“A major policy challenge for Africa today is how to broaden access to economic opportunities for its expanding population, including the most vulnerable groups,” the Bank says in its 2012 Annual Report, which will be presented to the institution’s Governors at the Marrakech meetings.

“Africa requires structural transformation to propel it towards inclusive growth,” the report says, citing high unemployment and underemployment especially among young people and women, as one of the main problems facing the continent today.
AfDB's headquarters in Abidjan, Cote D'ivoire

Structural transformation will not materialize unless there is a concomitant investment in skills development in areas that have kept the continent behind other developing regions. In this regard, Africa needs to harness its natural resources to build skills for its youthful population in order to leapfrog development and secure a place in the global value chain. Developing skills will unleash the dynamism of Africa’s untapped entrepreneurship potential, creating opportunities for increased job and wealth creation. An enlightened population is also important in Africa’s global engagement in trade and commerce.

“The key message is that Africa should accelerate its structural transformation by boosting the potential of its youthful population, investing in science and technology and innovation, speeding up its rate of economic integration, greening the economy and supporting private sector enterprise,” the report emphasized.

The report identifies leadership, degree of economic integration at the national, regional and global levels, as well as inclusive growth as the key factors that can influence transformation. Regional political events, weather, and price shocks must also be taken into consideration.

Mr. Donald Kaberuka

According to the report, Africa’s transformation can be realized by leveraging the huge potentials in some of the following areas:

- Infrastructure – Africa’s infrastructure financing needs — about USD 390 billion in the medium term, mostly for power and energy — are in the USD trillions in the longer term.

- Natural resources – It is estimated that Africa’s natural resource extractive industries will contribute over USD 30 billion per annum in government revenues in the next 20 years.

- Revenues from natural resources could finance a substantial part of Africa’s infrastructure development. Some countries have already issued Eurobonds for infrastructure, on the basis of natural-resource revenues.

- Demographics – Young people comprise the bulk of Africa’s one billion population. To convert this “youth bulge” into a “demographic dividend” will require investing in skills and the creation of job opportunities on a large and unprecedented scale.

- Promoting agriculture – the agriculture sector employs the vast majority of Africa’s population, and provides direct inputs to the agro-processing value chain, supplies food to urban areas, and is a source of household savings for investment.

- The Private Sector – As Africa’s economies expand, the private sector, which accounts for 90 per cent of informal employment, will become even more important, especially in industry.

- Urbanization –- Africa’s cities, with 40 per cent of the population in 2010 — projected to be 50 per cent in a generation, and 65 per cent by 2060 — are increasingly becoming the drivers of consumer demand and hence economic growth.

- Governance/Investment climate – improved governance and better macroeconomic policies – lower debt, low inflation and stable exchange rates are essential in fostering economic competitiveness.

- Technological innovation – Investment in technology, and particularly ICT, have greatly improved public access to information, spurring a knowledge economy and innovative approaches to micro-finance and the mobilization of rural producers, e.g. Kenya’s M-PESA, Kenya’s innovative mobile banking.

The strategies to unlock Africa’s potential reside in elimination of the causes of national and regional conflict to bring peace; visionary leadership and strong and effective government institutions, while empowering women and youth; strengthening human capital development through education and training, especially in science and technology, and improvements in basic services; fostering diversification, especially in agriculture and rural areas, including sustainable greening of the economy and promotion of manufacturing; and promoting intra-Africa trade through increased domestic and regional investment, and forging strong trade links with emerging partners.

The Bank will continue to support and monitor the transformation efforts of the Regional Member Countries. Accordingly, the Bank has adopted a 10-year strategy whose overarching goal is to promote socially inclusive and environmentally sustainable economic growth. The core operational priorities of this strategy include infrastructure development; regional integration; private sector development; governance and accountability; as well as skills and technology development.

GAMBIA: GOVERNMENT BANS SKYPE AND VIBER FREE PHONE CALLS

In a move that is angering Diaspora Gambians and their families back home, The Gambia government on Thursday announced the banning of all local and long distance Skype and Viber free calls in The Gambia--citing what it calls "the major financial loss that government is accruing due to Skype and Viber free calls," the Freedomnewspaper reports.

The Gambia government has also banned online dating in the impoverished West Africa cocaine hub nation. Internet providers, companies and users here have been strictly warned to comply with the the ban imposed on Skype and Viber phone calls by the government.

Analysts said the Gambia government is violating international Internet access protocols by banning Skype and Viber free calls. But PURA said the ban will enhance the government's revenue collection rate in the area of telecommunication. PURA warns all stakeholders must comply with the new directive.

"PURA wishes to inform the general public that it has come to its notice that there are companies and/or individuals operating through Internet Cafes and offering Dating services and Voice over Internet Protocol (VoIP) services as a commercially available service to the public in The Gambia. Therefore, all are hereby informed that such practices are not authorized," PURA strictly warns.


"Furthermore, PURA wishes to make it abundantly clear that the offering of “International and National Calling Services” within Internet Cafes using VoIP services (Viber, Skype, etc) is strictly prohibited. Anyone who is engaged in this activity is depriving the country of the much needed revenue from International and National calls, required for the development of The Gambia," the statement further warned.

Skype and Viber are free Internet applications, which allows its users to download, share files, video conference and make local and international phone calls without going through government controlled telecommunications.

There is little that PURA and the Gambia government can do to stop IPhone users downloading the Skype and Viber applications. A worst case scenario the government might resort to blocking Skype and Viber, but such a move might not speak well for the regime.

Also as part of the European Union Article 8, 17 points demand dialogue program with the Gambia government, the EU prevailed on the Jammeh regime to lift the ban on Internet access--most importantly the exiled online media. The European body also asked the government to reopen the Daily News, Standard Newspaper, and the Teranga FM radio.

In response, Gambian President Yahya Jammeh summoned a cabinet, which was televised live on state TV, GRTS. Jammeh flatly rejected the EU Demands--accusing the EU of trying to install a "puppet government." What followed next was a nationwide protest organized by the government branding the European Union as "Saboteurs" and also agents of violence.

The government's decision to ban Skype and Viber free calls, followed a growing disenchantment amongst the populace here, who uses Skype to call a US based online Internet Radio--Freedom Radio Gambia to vent their anger and displeasure against the Jammeh dictatorship.

The emergence of Skype and Viber have made it much easier for Gambians to place free long distance phone calls to Freedom Radio and their families overseas. The radio attracts millions of hits per month. Its target audience is: Diasporan Gambians, Gambians back home, US, EU and African policy makers.

The Gambia government is increasingly uncomfortable with the amount of information coming out of the country and also the public's recent disapproval of dictator Yahya Jammeh's government handling of the economy and the situation of governance. There is growing public dissatisfaction against Jammeh's one man rule.

This is not the first time that the Gambia government has attempted to censor the Internet. The US State Department in its annual Human Rights report on Gambia criticized the Jammeh government for blocking the IP address of the Freedom Newspaper and that of the Gambia Echo Newspaper--both North Carolina based Gambian owned media houses. The US State Department said Internet freedom has been restricted in the Gambia.

PURA said it would like to warn anybody involved in either of the above activities to immediately desist doing so.

"In a bid to protect our national interest, PURA is urging the general public to be vigilant with regards to the above, and to report any suspicious activities to PURA by calling 148 free on all networks, between 8.30am to 6.00pm (Mondays to Thursdays)," PURA concluded.

Mr. Tony Bates Skype CEO could not be reached for immediate comment at the time of going to press.

Source: Freedomnewspaper

GOVERNMENT URGED TO SUPPORT NEW ACTION PLAN TO SAVE A MILLION CHILD LIVES EVERY YEAR

Today, UNICEF and the WHO have launched a new action plan tackling for the first time two of the three biggest killer diseases of children under five in Africa – pneumonia and diarrhoea. The plan aims to end preventable deaths of children in Africa from these diseases by 2025, which would save over 1 million lives a year.

Every year in Sub-Saharan Africa over 600,000 children under five die of pneumonia while more than 400,000 die of diarrhoea. Between them, they account for over a quarter (28%) of all the child deaths on the continent.

The Action Plan calls for a substantial shift is in how poverty reduction efforts are coordinated in Africa. Aid programmes need to bring together different areas of work, such as access to drinking water, health and education, to make them more effective.

The new plan calls on governments to prioritise investment in the poorest and least-served population groups. For example, in Africa’s towns and cities, nearly three-quarters (73%) of the richest people enjoy access to adequate sanitation, while for the poorest groups in these areas only 15% have access.

Alongside dozens of development charities, WaterAid has signed a joint statement in support of the new Action Plan that declares:

‘We can save countless lives by using an integrated approach to fighting disease, improving access to proven interventions and by prioritising efforts to reach the poorest and most marginalised children. As the latest data demonstrate, the Global Action Plan on Pneumonia and Diarrhoea provides the most cost-effective approach and will help achieve the greatest impact in reducing child deaths.’

EUROCHANNEL PICKS EUTELSAT 16A TO EXTEND REACH IN SUB-SAHARAN AFRICA

The range of channels broadcasting across sub-Saharan Africa via the EUTELSAT 16A satellite further increased today with the launch of Eurochannel, the international TV channel dedicated to European films and series. Eurochannel’s selection of EUTELSAT 16A marks the latest step in its international expansion and comes three months after its launch into all Europe via Eutelsat. The channel has signed a new five-year contract for capacity and services with Eutelsat Communications (Euronext Paris: ETL) (http://www.eutelsat.com).


Leveraging EUTELSAT 16A’s powerful Ku-band footprint that sweeps across Africa, from Senegal in the West to Madagascar in the East, Eurochannel has joined a digital platform uplinked by Eutelsat and comprising over 20 TV channels. Eurochannel is broadcasting programmes subtitled in English, French and Portuguese, with terrestrial headends its principal target.

Eurochannel Chairman and CEO, Gustavo Vainstein commented: “When we analysed our options for expansion across sub-Saharan Africa EUTELSAT 16A quickly emerged as the obvious choice for its high-power and strong reach of our target audience. Working with Eutelsat since our launch across all Europe last year has enabled us to develop a solid relationship which we look forward to taking to the next level with this new phase in our international development.”

Rodney Benn, Regional Vice-President Africa at Eutelsat, responded: “EUTELSAT 16A has quickly established itself as a valued platform for content delivery to network headends and for DTH reception in Africa. Its reach of over 25 countries in sub-Saharan Africa, combined with the services we are supplying from our Rambouillet teleport, enable us to satisfy a surge of new demand and we are delighted to welcome Eurochannel as the latest addition to the platform.”