SECRETARY-GENERAL SAYS OUTBREAK OF HOSTILITIES IN SOUTH SUDAN UNDERMINES ‘INTENSE POLITICAL ENGAGEMENT’ UNDER WAY TOWARDS RESUMED TALKS

NEW YORK, July 21, 2014/African Press Organization (APO)/ — The following statement was issued today by the Spokesman for UN Secretary-General Ban Ki-moon:

The Secretary-General is deeply concerned by today’s attack by SPLA [Sudan People’s Liberatio…

FAO warns of fruit bat risk in West African Ebola epidemic / Organization working to help prevent transmission of deadly virus from wildlife to humans in Guinea, Liberia and Sierra Leone

ROME, Italy, July 21, 2014/African Press Organization (APO)/ — Increased efforts are needed to improve awareness among rural communities in West Africa about the risks of contracting the Ebola virus from eating certain wildlife species including fruit bats, FAO warned today.

Guinea, Liberia and Sierra Leone are struggling to contain the world’s deadliest recorded outbreak of the virus, which is transmitted by direct contact with the blood and body fluids of infected people as well as infected animals.

The West African epidemic is thought to have started when the virus crossed over from infected wildlife into the human population and subsequently began spreading between people.

Curbing human-to-human transmission is the most important focus for governments and international health agencies. However, FAO is working closely with the World Health Organization (WHO) to raise awareness of the transmission risks from wildlife among rural communities that hunt for bushmeat – or meat obtained from the forests – to supplement their diets and income. These communities risk future spill-over from species that can carry the virus, including fruit bats, some primates, and duikers.

“We are not suggesting that people stop hunting altogether, which isn’t realistic,” said FAO Chief Veterinary Officer Juan Lubroth. “But communities need clear advice on the need not to touch dead animals or to sell or eat the meat of any animal that they find already dead. They should also avoid hunting animals that are sick or behaving strangely, as this is another red flag.”

Fruit bats – usually eaten dried or in a spicy soup – are thought to be the most likely reservoir species for the virus, which they can carry without developing clinical signs of the disease, and should be avoided altogether, according to FAO.

“The virus is killed when meat is cooked at a high temperature or heavily smoked, but anyone who handles, skins or butchers an infected wild animal is at risk of contracting the virus,” Lubroth said.

Myths and mistrust thwarting efforts

While several governments in the region have attempted to outlaw the sale and consumption of bushmeat, bans have proved impossible to enforce and have met with suspicion from rural communities.

“There is a lot of mistrust, to the extent that people are hiding patients rather than getting medical help, and it’s very difficult to control the disease in the midst of many myths and rumours,” said Katinka de Balogh, FAO veterinary public health officer and Ebola focal point.

De Balogh said there were growing concerns about the effect the outbreak may have on food security in some parts of the region as some farmers are too afraid to work in their fields, while some markets have also closed down.

FAO action plan

FAO has already committed resources and is working with governments, WHO country offices and other partners in Guinea, Liberia and Sierra Leone to improve information about the virus at community-level, using existing networks such as rural radio and agricultural extension services.

“It is critical for rural communities to understand the risks, both of human-to-human transmission and from wildlife, so that they are in a position to make informed decisions themselves,” de Balogh said.

The Organization will work with governments to also set up wildlife surveillance systems to support early detection of the virus, collaborating with wildlife rangers, veterinarians and local universities.

“Rural communities have an important role to play in reporting unusual mortality in the animal population, which is another reason that their collaboration is so crucial,” de Balogh said.

In addition, FAO will help to assess the role of hunting in livelihoods with a view to finding healthier and more sustainable long-term livestock production alternatives to provide people with additional protein and income.

West Africa’s first human cases of Ebola virus disease were suspected to have occurred in December 2013, and according to WHO more than 600 people have died from the disease in the region.

Lethal in up to 90 percent of cases, Ebola virus disease causes multiple organ failure and, in some cases, severe haemorrhaging. There is currently no vaccine for the disease.

AUC Chairperson Expresses Condolences to victims of Malaysia Airlines crash and calls for full international investigation

ADDIS ABABA, Ethiopia, July 21, 2014/African Press Organization (APO)/ — The Chairperson of the African Union Commission, H.E. Dr. Nkosazana Dlamini Zuma, has expressed her condolences to the Governments and People of The Netherlands, Malaysia and ot…

UNMISS deplores attack on Nassir Town, Upper Nile State

JUBA, South Sudan, July 21, 2014/African Press Organization (APO)/ — The UN Mission in South Sudan (UNMISS) is gravely concerned about an attack that took place today in Nassir Town, Upper Nile State. The attack was carried out by opposition forces comprised of a mixture of armed youths and defected SPLA soldiers (SPLA in Opposition) loyal to former Vice President, Mr. Riek Machar Teny.

UNMISS notes that this attack represents the most serious resumption of hostilities since President Salva Kiir Mayardit and the former Vice President met in the Ethiopian capital of Addis Ababa on 9 May and recommitted to compliance with the Cessation of Hostilities Agreement they had signed earlier on 23 January. The attack is a clear violation of! the Cessation of Hostilities Agreement.

“It is deplorable that this major attack comes at a time when intensive efforts are underway by mediators of the Intergovernmental Authority on Development (IGAD) to convince all parties to resume the suspended peace talks in Addis Ababa. It is also worrying that the attack was launched in total disrespect of the presence of the IGAD Cessation of Hostilities Monitoring and Verification Team who deployed in Nassir last month.” said the acting head of UNMISS, Raisedon Zenenga, today.

UNMISS calls for full compliance with the cessation of hostilities agreements by all parties to the conflict and their return to the negotiating table without further delay. /o:p

UNMISS reports that all of its personnel as well as members of the IGAD Monitoring and Verification Team stationed at the Mission’s base are safe and fully accounted for.

Three humanitarian workers released in North Darfur

EL FASHER (DARFUR), Sudan, July 19, 2014/African Press Organization (APO)/ — Three Sudanese humanitarian workers abducted in Kutum, North Darfur, on 18 June 2014, were freed today in the same locality after 32 days in captivity.

Mustafa Abdalla Adarge, working with UNICEF, and Mohamed Abu Elgassem and Ahmed Elsayed, working with the international NGO Goal, were immediately taken to the Mission’s hospital in Kutum, for medical checks. They appear to be unharmed and in good condition.

The African Union – United Nations Joint Special Representative for Darfur, Mohamed Ibn Chambas, expressed the Mission’s gratitude to the Government of Sudan, Sudan’s National Intelligence and Security Services and the Wali(Governor) of North Darfur for their valuable assistance in the safe release of the humanitarian workers. “The role of the humanitarian actors in Darfur is crucial to ensure that those in need received essential aid; it’s in everyone’s interest to guarantee that they can continue to carry out their duties safely,” the JSR said.

These three were among the 25 humanitarian workers who were taken by armed men in three separate incidents in Kutum locality on 18 June 2014. A total of 20 of them were released the same day, while two staff members of the national NGO Sustainable Action Group (SAG) were held in captivity for 14 days and released on 2 July 2014.

Zone 9 Bloggers Charged by Ethiopian Court for Terrorism

WASHINGTON, July 19, 2014/African Press Organization (APO)/ — Press Statement
Jen Psaki
Department Spokesperson
Washington, DC
July 18, 2014

The United States is deeply concerned by the Ethiopian Federal High Court’s July 18 decision to press charge…

IMF Executive Board Concludes 2014 Article IV Consultation with Swaziland

MBABANE, Swaziland, July 19, 2014/African Press Organization (APO)/ — On July 15, 2014, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation1 with Swaziland and considered and endorsed the staff appraisal without a meeting.2

Swaziland’s economic performance has improved since the fiscal crisis of 2010–11, underpinned by the recovery of revenues from the Southern African Customs Union (SACU). Real Gross Domestic Product (GDP) growth in 2013 is estimated at 2¾ percent, recovering from -½ percent in 2011. Business confidence has started to show signs of improvement, commercial bank credit to the private sector is growing strongly, and the risk premium on treasury bills has been declining. Meanwhile, inflation has slightly risen, reaching 5.3 percent in April 2014, owing to increases in food and some administered prices.

Improved SACU revenues since 2012/13 reduced the pressure on fiscal and external balances. A budget surplus of 4½ percent of GDP was recorded in 2012/13. In 2013/14, despite increasing spending pressure, a small budget surplus (¼ percent of GDP) is estimated, partly aided by enhanced domestic revenue collection efforts. International reserves have reached 3¾ months of imports by March 2014, recovering from the low level of 2 months at end-March 2012.

Swaziland’s banking sector appears well capitalized, with the capital adequacy ratio of the banks reaching 24 percent of risk-weighted assets. Nonbank financial institutions (NBFIs)— including pension funds, insurance companies, collective investment schemes, and savings and credit cooperatives—account for about two-thirds of the financial sector (in terms of assets). With less than complete supervisory surveillance over these institutions, assessing relevant risks remains difficult.

Swaziland faces significant forward looking challenges. Though growth rebounded after the crisis, the long-term growth trend remains low, with average real GDP growth over 2004–13 at about two percent per year, and Swaziland would remain vulnerable to exogenous shocks. Furthermore, there are risks to Swaziland’s economic prospects, in particular the uncertain global and regional economic outlook that could lower SACU revenues. In addition, Swaziland continues to face serious development challenges, including high unemployment, poverty, and the prevalence of HIV/AIDS. Swaziland’s key economic policy challenges therefore are to strengthen its resilience to exogenous shocks and achieve higher and more inclusive growth, while meeting critical social and development needs.

Executive Board Assessment

In concluding the 2014 Article IV consultation with Swaziland, Executive directors endorsed staff’s appraisal, as follows:

Swaziland’s economy has been recovering from the fiscal crisis of 2010–11. Improved SACU revenue has relieved the pressure on fiscal and external balances, and economic growth is gradually recovering. The buildup in international reserves (to 3¾ months by end-March 2014) suggests that the likelihood of an immediate crisis has receded. Swaziland’s economic outlook, however, remains subject to downside risks (mainly associated with the uncertain prospects for South African economy and the high volatility of the SACU revenue). Close monitoring on the regional and global economic developments is warranted.

Swaziland’s medium-term challenges remain significant. The recent fiscal crisis points to the need to strengthen Swaziland’s resilience to shocks, while the economy has suffered from weak growth performance, which has adversely affected social developments. Swaziland’s key economic policy challenges are therefore to strengthen its resilience to exogenous shocks and achieve high, inclusive growth, while meeting critical social and development needs. Building on the progress since the fiscal crisis, Swaziland now stands at a critical juncture to decisively address these challenges.

To strengthen Swaziland’s resilience to shocks, it is essential to build sufficient international reserve buffer and maintain modest debt distress. In light of these objectives and the need to safeguard the exchange rate peg, a prudent fiscal policy stance (with a fiscal deficit below 2 percent of GDP) should be maintained over the medium-term, while protecting critical social and development expenditures. Such a prudent fiscal policy stance would help build a sufficient international reserve buffer (five to seven months of imports) and maintain modest debt distress, and provide Swaziland with better protection for possible shocks. The prospects for achieving the prudent fiscal policy target over the medium term, however, appear challenging, in light of the prospective decline in the SACU revenue and the scheduled salary review for public officials. It is therefore important to (i) improve revenue administration, (ii) rationalize recurrent expenditure (while safeguarding critical social and development expenditures), (iii) effectively implement public sector reforms, and (iv) enhance efforts to strengthen public financial management (PFM).

To address a long-standing problem of weak growth performance, a set of comprehensive structural reforms should be implemented effectively. The weak growth performance has been largely associated with a low multiplier of fiscal spending and low private sector development (depressed private investment in particular). The authorities should improve the efficiency of spending, through strengthening PFM and public investment management, and allocating higher weight to growth-promoting capital expenditures. Furthermore, it is also essential to promote private sector-led, inclusive growth. In particular, enhanced steps should be taken to further improve business climate, facilitate financial intermediation, and pursue land management reforms. Should fiscal deficits increase substantially—as envisaged under the medium term fiscal framework, the government’s large financing needs would likely crowd out private sector credit, further squeezing private sector developments. Maintaining soundness of the financial sector—with further efforts to strengthen the supervision and regulation for nonbank financial institutions—is also critical for private sector-led growth. In most cases, the authorities have rightly acknowledged the areas of reforms. Staff encouraged the new government to step up efforts to implement reforms, seeking technical assistance from Swaziland’s international partners, as needed. The CBS’s initiative to embark on a financial sector strategy is encouraging.

While Swaziland continues to maintain one exchange restriction related to advanced payments for certain imports (subject to Fund approval under Article VIII), the authorities have not requested and staff does not recommend the approval of this restriction.

Staff recommends that the next Article IV consultation with Swaziland take place on the standard 12–month cycle.

Swaziland: Selected Economic Indicators, 2012–19

2012 2013 2014 2015 2016 2017 2018 2019

Prel. Est. Proj. Proj. Proj. Proj. Proj. Proj.

Baseline Reform Baseline Reform Baseline Reform Baseline Reform Baseline Reform Baseline Reform

National account and prices

GDP at constant prices 1/

1.9 2.8 2.1 2.1 2.0 1.8 2.1 2.4 1.8 3.0 1.7 3.5 1.7 4.0

GDP deflator

8.4 7.2 6.5 6.5 5.8 5.8 5.5 5.5 5.3 5.3 5.3 5.3 5.3 5.3

GDP at market prices (Emalangeni billions)

33.2 36.6 39.8 39.8 43.0 42.9 46.3 46.3 49.6 50.2 53.1 54.7 56.9 59.9

Consumer prices (average)

8.9 5.6 5.8 5.8 5.6 5.6 5.4 5.4 5.2 5.2 5.2 5.2 5.2 5.2

External sector

Average exchange rate (per US$)

8.2 9.7 … … … … … … … … … … … …

Nominal exchange rate change 1

4.3 7.3 … … … … … … … … … … … …

Real effective exchange rate 1

0.0 5.8 … … … … … … … … … … … …

Gross international reserves

(months of imports)

2.9 3.8 4.2 4.2 4.5 4.5 4.4 4.7 4.1 4.9 3.6 5.0 3.1 5.2

(percent of GDP)

17.0 21.6 23.4 23.3 24.2 24.5 23.2 24.8 21.1 25.2 18.7 25.8 15.7 26.0

(percent of reserve money)

314.2 416.1 433.4 433.1 439.9 445.1 413.7 442.4 371.1 442.0 326.1 445.2 273.7 441.2

Gross reserves minus reserve money

(percent of deposits)

1.1 5.4 12.3 12.2 18.0 18.9 17.1 22.4 12.6 26.3 8.9 30.4 4.8 33.1

Money and credit 2

Domestic credit to the private sector

-1.5 16.1 14.8 14.6 9.2 8.7 7.4 8.4 6.1 9.1 5.6 9.5 5.2 10.3

Reserve money

0.1 1.1 2.2 2.2 1.7 1.7 1.7 1.7 1.5 1.8 1.4 1.9 1.2 2.0

M2

10.0 15.9 11.2 11.2 10.0 9.8 9.8 10.0 9.0 10.6 8.2 10.8 7.1 11.3

Interest rate (percent) 3

5.5 5.0 … … … … … … … … … … … …

(Percent of GDP)

National accounts

Gross capital formation

8.0 9.6 11.5 10.6 11.0 10.6 10.9 10.9 10.7 11.2 10.6 11.8 10.6 12.7

Government

3.0 4.6 6.5 6.6 6.0 6.6 5.9 6.6 5.7 6.5 5.6 6.5 5.6 6.7

Private

5.0 5.0 5.0 4.0 5.0 4.0 5.0 4.3 5.0 4.7 5.0 5.3 5.0 6.0

National savings

11.8 15.7 12.9 11.9 11.5 11.2 10.4 10.8 9.1 10.4 8.6 10.9 7.9 11.1

Government

6.4 7.8 9.7 9.7 6.2 7.5 4.1 6.5 3.5 6.8 3.3 7.4 3.1 7.8

Private

5.4 7.8 3.2 2.2 5.2 3.7 6.2 4.3 5.6 3.6 5.4 3.5 4.8 3.2

External sector

Current account balance

(including official transfers)

3.8 6.1 1.4 1.4 0.4 0.5 -0.5 -0.1 -1.6 -0.8 -2.0 -0.9 -2.8 -1.6

(excluding official transfers)

-19.2 -17.1 -17.7 -17.8 -16.6 -16.5 -17.0 -16.6 -18.1 -17.3 -18.5 -17.5 -19.3 -18.2

External public debt

8.3 9.0 10.0 10.0 9.9 9.9 9.2 9.2 8.6 8.5 8.0 7.8 7.5 7.2

Central government fiscal operations 4

Overall balance (commitment basis)

4.4 0.3 -0.9 -0.9 -3.4 -2.8 -4.5 -2.9 -4.6 -2.1 -4.8 -1.7 -5.0 -1.5

Total revenue and grants

36.0 35.2 35.9 36.1 33.2 33.4 33.0 33.2 33.0 33.2 33.0 33.2 33.0 33.2

Total expenditure

31.5 34.9 36.8 36.9 36.6 36.3 37.5 36.1 37.6 35.3 37.8 34.9 38.0 34.7

Public debt, gross

17.4 17.8 17.2 17.2 19.4 18.9 22.6 20.4 25.7 21.0 28.1 20.9 30.2 20.6

Public debt, net

5.6 4.0 4.5 4.5 7.6 7.1 11.7 9.5 15.5 10.9 19.3 11.7 23.1 12.2

Memorandum item:

Population (in million)

1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.2 1.2 1.2 1.2

Sources: Swazi authorities; and IMF staff estimates and projections.

1/ IMF Information Notice System trade-weighted; end of period. A negative sign indicates depreciation.

2/ Percent of beginning of period M2, unless otherwise indicated.

3/ 12-month time deposits rate.

4/ Fiscal year data (fiscal years run from April 1 to March 31).

1 Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

2 Article IV consultations are concluded without a Board meeting when the following conditions apply: (i) there are no acute or significant risks, or general policy issues requiring Board discussion; (ii) policies or circumstances are unlikely to have significant regional or global impact; (iii) in the event a parallel program review is being completed, it is also being completed on a lapse-of-time basis; and (iv) the use of Fund resources is not under discussion or anticipated.

Joint Statement on the Central African Republic by Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator Valerie Amos, and European Union Commissioner for International Cooperation, Humanitarian Aid and Crisis Response Kri

NEW YORK, July 18, 2014/African Press Organization (APO)/ — We are deeply concerned about reports of alarming levels of violence in Bambari and elsewhere in the Central African Republic, including several cases in which armed groups deliberately targ…

Suspension of the Nigeria Football Federation lifted

GENEVA, Switzerland, July 18, 2014/African Press Organization (APO)/ — FIFA has today, 18 July 2014, lifted the suspension that was imposed on the Nigeria Football Federation (NFF) on 9 July 2014 on account of interference.
FIFA has noted that the co…

MISCA takes measures to facilitate the completion of the investigation into the Boali incidents of 24 March 2014

BANGUI, Central African Republic, July 18, 2014/African Press Organization (APO)/ — The Special Representative of the Chairperson of the Commission of the African Union (AU) and Head of the African-led International Support Mission in the Central Afr…