Germany: Support to NEPAD

(period June 2002- June 2003)

 


 


Support to African Countries since NEPAD was adopted in 2001

 

Making concrete efforts towards achieving the target of 0.7 per cent of their gross national product as official development assistance to developing countries and to commit a significant share of such assistance to African countries;

 

The German government has committed to achieving the target of 0.33% of GNP as ODA by the year 2006. This target is taken as an intermediate step towards the goal of reaching 0.7% of GNP as ODA in the future. Although the German government has not officially earmarked any specific share of additional ODA as being directed to Africa, it does intend to channel a significant proportion to the promotion of NEPAD and Africa in general. Currently more than 1/3 of German ODA is directed to Africa.

 

Finding a durable solution to the problem of external indebtedness of the heavily indebted poor countries In Africa;

 

On the basis of the decisions taken during the G8‑Summit in Cologne (1999), Germany will provide US$ 6 billion in debt relief to the heavily indebted poor countries (HIPC), out of which approximately half are directed to HIPCs in Africa. To date, debt relief has been implemented amounting to roughly US$ 2 billion (roughly US$ 1 billion to African countries); the remaining share will be granted in the course of further implementation of the HIPC‑initiative

 

Recognizing the essential role of trade as an engine for economic development In Africa, and in this regard calls for Improved market access for African exports within the framework of the Doha Ministerial Declaration, to assist African countries in improving their capacity, Including by the removal of the supply‑side constraints and the promotion of diversification, which Is critical to enabling them to take full advantage of such opportunities, taking Into account the need to provide market access for developing countries;

 

Germany aims at making the next world trade round a "trade round for development". The most important aspects in this respect concern the preferential treatment of developing countries, market access, the reduction of subsidies ‑ especially export subsidies ‑ and trade related technical assistance. In the context of the G8‑Africa‑Action‑ Plan, Germany strives for rapid and tangible results in WTO and EU‑ACP negotiations.

 

Working towards the objective of duty‑free and quota‑free access for a// exports of the least developed countries, as envisaged In the Programme of Action for the Least Developed Countries for the decade 2001‑2010

 

Germany is especially engaged in the following areas of special importance to African countries:

§         Reduction of industrial tariffs

§         Market opening for agricultural products

§         Facilitation of developing country exports outside of the VVTO round (EBA, EPA, etc.)

§         Trade related technical assistance (support of poverty‑oriented negotiation positions, support of poverty‑oriented trade‑ and investment strategies)

 

Encouraging and facilitating investment by their private sectors in Africa, to help African countries to attract Investments and promote policies conducive to attracting Investment, to encourage and facilitate the transfer of technology needed to African countries on favorable terms, Including on concessional and preferential terms;

 

The German government promotes the investment of its private sector in Africa via the enhancement of general economic, corporate and political conditions in African countries. Although the responsibility for creating stability and an attractive environment for investment lies with African countries themselves, Germany wants to enhance the investment of its firms in Africa by engaging in bilateral agreements that reduce the investment risk for private investors (investitionsforder‑ und ‑schutzvertrage).

Furthermore, the German government supports public private partnerships in Africa, micro financing and the improvement of regional financial markets.

 

Channeling financial, technical and other types of resources towards the priorities of the New Partnership, In particular, Infrastructural development, health services, education, water and agriculture, In accordance with the priorities determh7ed by each African country and to explore ways of generating new public and private Innovative resources of finance for development purposes, provided that those sources do not unduly burden developing countries, particularly In Africa;

 

Germany has earmarked a substantial amount of financial and technical resources towards the priorities of NEPAD. The financing of infrastructural development is not a priority of German support for NEPAD, as we believe that this area belongs to the field of expertise of the major international financial institutions, namely the African Development Bank and the World Bank. Nonetheless, Germany intends to make use of its membership in these institutions and thereby promote the financing of (regional) infrastructural development projects through them. Germany is actively engaged in the provision of all other sectoral priorities of NEPAD.

 

Support for NEPAD Priorities

 

The German government has provided support for the following areas:

 

Governance ‑ Political, Economic & Corporate

Peace & Security

Infrastructure, (Energy, Water & Sanitation, ICTs)

Agriculture & Market Access

Human Resources Development (Health, Education)

Environment

Resource Flows

 

The main areas of German support are the promotion of peace and security, the promotion of good governance and the fight against corruption and the protection of human rights in Africa.

 

Approximate financial assistance to African countries since 2001

 

Since 2001 the German Government has extended approximately 1,5 billion pounds to African countries in financial and technical assistance.

 

Technical or financial assistance to the AU, ECA, ADB or the NEPAD secretariat to develop NEPAD projects or programmes

 

AU: Germany will provide 2 million pounds to build the "Peace and Security Directorate" of the African Union. Moreover, the German government has provided roughly 1,1 million pounds to the AU's 2Conflict Management Center"

 

ECA: In the year 2002 Germany has provided 1,5 million pounds worth in technical assistance to ECA.

 

NEPAD Secretariat: provision of roughly 2,5 million pounds in technical assistance to support the establishment of the necessary structures to conduct the African Peer Review Mechanism.

 

 

 

Comments/ observations on the implementation of NEPAD

 

Germany has welcomed and supported NEPAD right from the start of the initiative roughly two years ago, We highly value the strong commitment African leaders have undertaken to eradicate poverty and to place the continent on a path of sustainable development.

Several conferences and workshops have been held in Germany in support of NEPAD in the past few months. At present, our African Personal Representative is assiduously working on the preparation of our summit in Evian, where we expect Africa in general and NEPAD in particular to play an important role.

Furthermore, we consider the African Peer Review Mechanism (APRM) to be one of the core elements of NEPAD. We welcome the fact that by now, 12 countries have legally committed themselves to the APRM and hope that more countries will join the process soon.

It is of utmost importance that the APRM be implemented soon and that it allows African countries to learn from each other’s experiences and to foster good political, economic and corporate governance throughout the continent.

 

Despite a few setbacks, NEPAD has been developing in the right direction. Now it will be crucial to increase the pace of this initiative and implement the activities set out in the NEPAD document as well as in action plans developed by the industrialized countries.