ANC Today --------------------------------------------------------------------- Volume 2, No. 28, 12 - 18 July 2002 --------------------------------------------------------------------- THIS WEEK: * Letter from the President: The true heroes and heroines of the African Renaissance * NEPAD Series III: Mobilising the resources needed to cut poverty in Africa --------------------------------------------------------------------- LETTER FROM THE PRESIDENT The true heroes and heroines of the African Renaissance This week, in the city of Durban, the African Union was born. On July 9th, the peoples of Africa took a giant step forward towards the realisation of the dream of African unity. On this day, Durban hosted the launch of the African Union in a public ceremony attended by the political leaders of the peoples of Africa and thousands of our people. Earlier on the day, the Assembly of Heads of State and Government of the African Union held its first meeting. On the following day, the Executive Council of Ministers, held its own first meeting. As the Summit closed, Africa's leaders expressed their deep and sincere appreciation for everything the people of South Africa did to ensure the successful birth of the African Union. One among these said that he has attended Summit Meetings of the OAU since 1979. He said he could state it without hesitation that the Durban Summit was from all points of view, the best he had attended. Other African leaders, including Heads of State and Government, Ministers, Ambassadors and senior officials echoed this view. These leaders spoke of the manner in which they were received when they arrived in the city of Durban. They talked about the way in which they were accommodated. They addressed the physical infrastructure and the services provided for them to do their work efficiently and productively. On all these matters they conveyed their thanks to the people of our country. Africa's leaders expressed their appreciation also for the manner in which the business of the Assembly was conducted. This included the efficient transportation of all delegates to the International Conference Centre so that they could begin their meetings on time and generally honour the decisions they had taken about how the Summit should be conducted. As Africans, they were especially inspired by the manner in which the African Union was launched in the public event at the Absa Stadium in Durban. They felt the public launch succeeded to convey the objectives of the Union to the peoples of Africa. They felt the launch succeeded to communicate to the peoples of our continent the need for all of us as Africans to respond to our challenges together, seriously and on a sustained basis. They were pleased that thousands attended the public launch to express the support of the African people for the Union and truly to celebrate what these masses saw and understood as an historic moment that called for a celebration. They were moved that those who participated in the various performances during the launch did what they had to do with passion and dignity, with evident joy and pleasure, with pride that they were part of the process of giving birth to a new Africa, with understanding of their responsibility to the continent to perform their part well. As they prepared to leave our country, Africa's political leaders felt that Africa had made a new beginning, in a manner that lived up to the epoch making process of the launch of the African Union. We owe the outstanding success of the launch of the African Union in conference and in public, to the work done by our Ministers to ensure that we achieve this result. This entailed many months of preparations relating to the content and logistic requirements of the AU Summit. Many of our Ministers had to be in Durban during the days during which Africa's leaders met to decide the future of the continent. Some of them participated in all the meetings as our delegates, working with their continental colleagues to ensure that the Durban Summit emerged with positive results in the interest of the peoples of Africa. Others had to attend to the reception of these leaders as they set foot in our country, as well as their farewell. They had to communicate to these leaders the happiness of our people that the continent had agreed to hold its last OAU Summit and its first AU Summit in our country. They had to extend to our visitors and guests the warm welcome and the message of solidarity that the masses of our people surely sought to convey to our brothers and sisters from the rest of our continent. Yet others had to ensure that the leadership of the continent was provided with proper and adequate security at all times. They had to make certain that this leadership was properly accommodated and transported. They had to satisfy themselves that we had created the necessary conditions and environment for the leaders of our people to do their work. Others had to attend to the proper organisation of the public launch of the African Union. This involved very detailed work to ensure a seamless presentation of an imaginative programme stretching over a number of hours. They had to ensure that the occasion as a whole reflected the historic importance of the formation of the African Union. In all this, our Ministers were supported and assisted by other public representatives, members of our public service, the state security organs and other state institutions. All these applied themselves to their work with the same intensity and dedication shown by our Ministers. They shared the understanding of our Ministers, that they owed it to the sister people of Africa to ensure that the Durban Summit achieves excellent results. The City of Durban and its International Conference Centre also made certain that the city and the meeting place were properly prepared to receive and service our important guests. The streets of Durban and other public places, including the stadium of the public launch of the AU, the services and personnel required of the city, stood ready to contribute to the common success. The major political organisations in the province of KwaZulu-Natal, the ANC and the IFP, as well as other popular organisations, joined forces to work for the success of the public launch of the AU. We owe the outstanding success of this occasion to the work done by these organisations to mobilise the masses of our people to attend the public launch. There are the people themselves, whose impressive presence at the Absa Stadium communicated the strong message that they are the true creators of Africa's better future, without whose conscious involvement, the struggle for our continent's renewal will not succeed. This includes our working people who were present everywhere the delegates were, and ensured that everything that had to be done was done, and done well. Africa's leaders spoke freely of the inspiration they drew from the presence and response of the large number of ordinary South Africans at the public launch. At this launch, our National Defence Force distinguished itself as a disciplined professional formation, as did our Police Service. So did our artists - musicians, dancers and poets, both modern and traditional - whose magnificent performances conveyed the message that Africa is about its renaissance in all fields, including the critically important area of arts and culture. It was good that Senegalese musicians joined the African celebration in Durban. Correctly, members of the South African and Senegalese national soccer teams, Bafana Bafana and the Lions of Senegal, joined the celebration parade, to represent the commitment of Africa's sportspeople to the renaissance of Africa. Our private sector also played its role to contribute to the success of Africa's advance towards a better future. Among other things, it donated resources to transform an Air Force hangar into a lounge fit to receive our distinguished guests. It provided the valuable gold and tanzanite identification badges worn by Africa's Heads of State and Government. It paid for the billboards and many posters that adorned Durban and communicated our country's message of welcome. Our public broadcaster, the SABC, worked to discharge its obligatory responsibility accurately to inform both our people and the peoples of Africa about the proceedings and issues at the formation of the African Union. Africa's leaders spoke of telephone calls they received from their citizens, who congratulated them on the successful launch of the Union. These fellow Africans had watched the proceedings in Durban, thanks to the satellite broadcasts of the public broadcaster. Our continent's leaders were pleased that the masses of our people, in many parts of our continent, were present at the birth of the AU in our part of Africa, which they also see as their home. Other media organisations, both domestic and foreign, also did what they could to inform humanity about what was happening in Durban. All the South Africans to whom we have referred, and many others, joined hands to contribute what they could to the rebirth of our continent and the creation and strengthening of African institutions dedicated to ending conflict, poverty and underdevelopment on our continent. They were embarrassed and disturbed that there were some in our country that decided to undermine this magnificent, united national effort. These were the striking municipal workers in Durban who, while exercising their legitimate right to strike, decided that they would welcome the rest of Africa by fouling the streets of Durban with refuse. Prompted and encouraged by their leaders, these sought to misuse and degrade the songs, slogans and communication methods of our movement for national liberation, and thus dishonour and betray our movement at a critical moment in Africa's continuing liberation struggle. During the few days that encompassed the formation of the African Union, when the eyes of Africa and the world focussed on Durban, our people demonstrated their commitment to the rebirth of our continent. They showed their capacity to unite in action to achieve the noble goal of the emancipation of the peoples of Africa from conflict, poverty and underdevelopment. Our country and continent salutes them without qualification. They have done us proud. All of Africa feels immensely proud that these successors of Albert Luthuli, regardless of race, colour, gender and class, are her children. All of Africa hails these architects of the success in Durban as true Heroes and Heroines of the African Renaissance. Thabo Mbeki --------------------------------------------------------------------- NEPAD SERIES III Mobilising the resources needed to cut poverty in Africa Increasing the flow of investment and aid into Africa, further reducing its debt burden, and improving the value of African exports are among the ways the New Partnership for Africa's Development (NEPAD) aims to boost economic growth and meet development needs on the continent. Described under the heading of 'Mobilising Resources', these initiatives complement the two other main areas of NEPAD, which focus on conditions for sustainable development and sectoral projects. To meet its development targets, including reducing by half the number of Africans living in poverty by 2015, it is estimated that Africa needs to achieve an annual growth rate of around seven percent. This cannot be achieved with the current resources available. NEPAD estimates that an additional annual amount of US$64 billion is needed both from within the continent and, to a large extent, from outside the continent. Capital flows Resources can be raised within the continent through increasing the level of savings within African countries, as well as improving tax collection to boost public resources and, where appropriate, rationalise government spending. Africa countries need to be more attractive to local investors to prevent capital flight from the continent. Current debt relief initiatives need to be extended further since many countries continue to spend money on servicing their debt which could be better used to boost economic growth and social development. The long-term aim of NEPAD is to link debt relief to poverty reduction initiatives. In the meantime, however, it proposes that there should be ceilings to the amount countries should pay in servicing their debt fixed in proportion to the amount of money governments raise. The leadership of NEPAD will negotiate with creditor governments for increased debt relief for participating countries. Countries would need to undertake agreed poverty reduction strategies and participate in the NEPAD Economic Governance Initiative to improve economic and financial management. A forum will be established where African countries can share experiences and mobilise for the improvement of debt relief strategies. NEPAD aims to increase resources to Africa from the developed world through greater flows of overseas development assistance (ODA) - or aid - in the medium term. This should be accompanied by a reform of the development assistance system to ensure the resources are more effectively used. African countries will form an ODA forum which will develop a common African approach to reform, and work with developed countries to develop a charter which will guide the provision of aid. The charter will also make use of the Economic Governance Initiative to ensure recipients can effectively use increased ODA flows. It will propose an independent mechanism for monitoring donor performance. Increasing private capital flows to Africa from the developed world is the second element of meeting the continent's resources shortfall from outside the continent. The first priority would be to address investor perceptions of Africa as a 'high risk' investment destination. NEPAD also aims to improve the capacity of African government's to be involved in public-private partnerships, and strengthen financial markets within countries. Practically this will involve the establishment of a task team to audit legislation and regulations related to investment with a view to reduce risk and promote greater harmonisation across the continent. A task force will be established to speed up financial market integration through a standard legal and regulatory framework and a single African trading platform. Market access NEPAD envisages a range of initiatives to grow Africa's economies through better use of its natural resources, diversifying the range of products it makes and improving its access to markets outside the continent, particularly in the developed world. Africa needs to add value to its agriculture and mineral output, rather than merely exporting the raw material, by producing food and manufactured products. Throughout Africa, agricultural production will be improved through better water security and management, land reform and security of ownership, improved credit and financing schemes, and developing capacity to increase production, transport, storage and marketing of food crops and livestock. NEPAD will focus on developing the mining sector in Africa mainly through improving collaboration and harmonisation in areas like policy and regulation, investment risks, business opportunities and knowledge sharing. To this end, it is proposing the establishment of an African School of Mining, possibly through partnerships among existing schools. This initiative will develop new industries, or upgrade existing ones, where African countries have comparative advantages, such as in agriculture, energy and minerals. Africa will also participate more actively in international standards organisations, and seek mutual recognition of test and certification results with the continent's major trading partners. It will encourage partnership and information-sharing between African and non-African firms through joint business councils and arrangements for joint ventures and sub-contracting. The initiative aims to promote the African private sector in general by supporting technology acquisition, improvements in production, and training and skills development. It aims to strengthen chambers of commerce, trade and professional organisations, and encourage regional networks. It will encourage the growth of small-scale industries with technical support and improve access to finance. These efforts will not achieve their objectives, however, without a substantial increase in African exports to developed countries. At the heart of this effort will be the negotiation of measures and agreements to facilitate market access for African products, and concerted engagement in forums like the World Trade Organisation (WTO) to ensure world trading rules benefit Africa and other developing regions. African leaders will also campaign to achieve the removal of tariffs and other barriers to accessing world markets. NEPAD will promote trade within Africa so that countries can source products from the continent which were previously imported from other parts of the world. It will create mechanisms and institutions to develop marketing strategies for African products. It will also promote and improve regional trade agreements, foster inter-regional trade liberalisation, harmonise rules of origin, tariffs and product standards, and reduce export taxes. The goal of an African Renaissance will remain distant as long as the continent does not have the resources necessary to develop economically and socially. These initiatives of the New Partnership for Africa's Development cover a range of strategies to ensure that the continent is able to mobilise resource within the continent and further abroad to boost growth and sustain it into the future. More Information New Partnership for Africa's Development http://www.africainitiative.org African Union Summit 2002 http://www.au2002.gov.za/ --------------------------------------------------------------------- This issue of ANC Today is available from the ANC web site at: http://www.anc.org.za/ancdocs/anctoday/2002/at28.htm To receive ANC Today free of charge by e-mail each week go to: http://www.anc.org.za/ancdocs/anctoday/subscribe.html