Category: APO-OPA

PORT-LOUIS, Mauritius, April 23, 2014/African Press Organization (APO)/ — On April, 21, 2014, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation1 with Mauritius.

A stable macroeconomic environment was maintained in 2013, despite difficult external developments. Real GDP growth was lower than expected at 3.2 percent in 2013, mainly on account of construction, sugar and tourism. With subdued international prices, inflationary pressures declined in 2013, despite the public sector wage increases, and year-on-year inflation fell to 3.5 percent. The unemployment rate was unchanged compared to 2012 at 8.0 percent. Credit to private sector growth remained robust. On the external front, the current account deficit widened to almost 10 percent of GDP in 2013. The reserve cover of imports of goods and services stayed constant at 4½ months with the Bank of Mauritius (BOM) accumulating additional net international reserves.

The fiscal policy stance was more expansionary than planned because of cyclical and one-off factors but also slippages. The structural primary deficit was broadly unchanged relative to 2011. The overall deficit including extra-budgetary funds is estimated at 4½ percent of GDP. While revenues remained broadly unchanged in proportion of GDP, expenditures increased by over 2 percent of GDP. As expected wages increased following the Pay Research Bureau’s (PRB) report, which increases civil servant salaries beyond annual inflation adjustments periodically with the next adjustment expected in 2016. Additional spending was also related to the flash floods in Port Louis as well as unplanned transfers to local governments and public enterprises. Finally, capital spending including by the special funds was 1 percent of GDP higher, though partially due to cost overruns.

Monetary policy was somewhat accommodative. Throughout the year, while a sluggish domestic demand and low international inflationary pressures helped anchor inflation expectations. The public sector wage increase related to the PRB report did not lead to strong private sector wage pressures. In this context, the BOM maintained the policy rate at 4.65 percent in September 2013 and February 2014, following a 25 basis point reduction in June 2013. In October 2013, reserve requirements were raised from 7 to 8 percent to curb excess liquidity in the banking system. The authorities continued building international reserves and used limited interventions to moderate excessive fluctuations of the rupee. The banking system remained well-capitalized and resilient in a strong regulatory context. Regulatory Tier I capital to risk-weighted assets are well above Basel II and the proposed Basel III requirements. Non-performing loans (NPL) increased slightly in 2013, but banks remained profitable with a 20 percent return on equity, despite low leverage ratios. However, liquidity ratios have worsened in recent years and are on the low side in international comparisons. BOM is consulting with banks on implementation of Basel III regulations and continued to publish its bi-annual CAMEL ratings for all domestic banks. It implemented macroprudential measures aimed at addressing emerging NPLs in the construction and real estate sectors as well as rising indebtedness. Threats to financial stability posed by a Ponzi-like scheme in 2013 were contained successfully, and the regulatory framework was subsequently improved.

Mauritius has established a track record as a reformer with strong institutions and a dynamic private sector. The Africa Training Institute (ATI) is set to open in June 2014 in Ebene. The country statistical capacity continues to be strengthened, including ongoing work on Monetary and Financial Statistics (MFS) as well as balance of payments (BOP) and international investment position (IIP) statistics. Mauritius subscribed to the IMF’s Special Data Dissemination Standard (SDDS) in February 2012, being the second Sub-Saharan African country to do so and is working on subscribing to SDDS Plus.

Executive Board Assessment2

Executive Directors agreed with the thrust of the staff appraisal. They noted that Mauritius’ prudent policies and strong institutions have delivered steady growth, well-anchored inflation expectations, and continued financial stability. The near-term growth outlook is generally favorable, but an uncertain external environment carries risks. Against this background, Directors encouraged the authorities to consolidate recent macroeconomic gains, strengthen policy buffers, and pursue greater economic diversification through structural reforms to enhance the resilience of the economy.

Directors generally considered it appropriate to start tightening fiscal policy this year to smooth adjustment and increase the likelihood that the 50 percent target for the debt-to-GDP ratio is achieved by 2018, as mandated by law. They encouraged the authorities to articulate an ambitious consolidation strategy centered on better prioritizing public expenditure, strengthening tax administration, and broadening the tax base. Subsidy reforms and an overhaul of public enterprises, as well as an improved framework for fiscal devolution, including a better use of real estate taxes, could also underpin the budgetary adjustment over the medium term.

Directors agreed that the current monetary stance is broadly appropriate, but cautioned that a withdrawal of accommodation might be necessary if inflationary pressures intensify. They also suggested strengthening the institutional and operational arrangements that would support the eventual adoption of a formal inflation targeting framework.

Directors noted that the banking system remains well-capitalized, profitable, and resilient to shocks. They observed, however, that persistent excess liquidity in the banking system has hindered the monetary transmission mechanism, while also encouraging disintermediation and riskier lending. To address this issue, Directors encouraged the authorities to consider an approach to liquidity management involving additional issuance of government paper for monetary policy purposes and—more broadly—closer collaboration between the government and the central bank. Similarly, coordination between the central bank and the nonbank supervisor should continue to be strengthened to ensure the soundness of the overall financial system.

Directors took note of the staff’s assessment that the rupee appears to be modestly overvalued in real effective terms. To bolster Mauritius’s international competitiveness and durably reduce the large structural current account deficit, they recommended greater exchange rate flexibility, well-prioritized infrastructure investment, and stepped-up reforms to address labor and product markets rigidities. Directors also agreed that the external adjustment could benefit from further pension reforms that would boost national savings while strengthening social protection.

Directors welcomed the authorities’ intention to adopt the Fund’s SDDS Plus, and supported ongoing efforts to improve the collection of financial and labor market statistics.

Mauritius: Selected Economic and Financial Indicators, 2011–14

2011 2012 2013 2014

Est. Proj.

National income, prices and employment

Real GDP

3.8 3.3 3.2 3.7

Real GDP per capita

3.4 2.7 2.6 3.2

GDP per capita (in U.S. dollars)

8,730 8,835 9,160 9,661

GDP deflator

4.1 3.1 3.3 3.7

Consumer prices (period average)

6.5 3.9 3.5 3.9

Consumer prices (end of period)

4.9 3.2 3.5 4.5

Unemployment rate (percent)

7.9 8.0 8.0 …

(Annual percent change, in US Dollars)

External sector

Exports of goods and services, f.o.b.

17.9 3.8 3.7 6.0

Of which: tourism receipts

16.1 -0.8 -10.6 8.2

Imports of goods and services, f.o.b.

20.6 2.2 3.9 7.2

Nominal effective exchange rate (annual averages)

3.3 0.5 -1.3 …

Real effective exchange rate (annual averages)

6.2 1.4 -0.4 …

Terms of trade

-5.7 0.3 0.6 …

(Annual change in percent of beginning of period M2)

Money and credit

Net foreign assets

-8.2 9.1 -2.8 8.3

Domestic credit

10.8 15.6 16.5 9.5

Net claims on government

0.1 -1.1 2.3 1.0

Credit to non-government sector 1

10.8 16.1 14.3 11.1

Broad money (end of period, annual percentage change)

6.4 8.2 5.8 7.8

Income velocity of broad money

1.0 1.0 1.0 1.0

Interest rate (weighted average T-Bills, primary auctions)

4.6 3.3 … …

(Percent of GDP, unless otherwise indicated)

Central government finances

Overall consolidated balance (including grants) 2

-2.5 -2.1 -4.5 -4.5

Primary balance (including grants)

0.5 0.9 -1.9 -1.7

Structural primary balance (including grants)

0.4 0.9 -1.8 -1.6

Structural primary balance (excluding grants)

-0.3 0.2 -2.2 -2.2

Revenues and grants

21.4 21.4 21.4 21.8

Expenditure, excluding net lending

23.9 23.6 25.9 26.2

Domestic debt of central government

42.6 41.0 41.0 39.4

External debt of central government

9.5 10.4 12.8 14.0

Investment and saving

Gross domestic investment

26.0 24.8 23.2 23.2

Public

5.5 5.5 5.0 4.1

Private

20.4 19.2 18.2 19.1

Gross national savings

12.7 17.1 14.0 13.0

Public

-0.5 1.0 -0.5 0.0

Private

13.3 16.1 14.5 13.0

External sector

Balance of goods and services

-13.8 -13.1 -13.1 -13.9

Exports of goods and services, f.o.b.

51.8 52.9 52.6 52.6

Imports of goods and services, f.o.b.

-65.6 -65.9 -65.7 -66.5

Current account balance

-13.3 -7.9 -9.9 -8.7

Overall balance

1.6 1.8 4.5 2.9

Total external debt 3

85.1 89.3 91.6 93.1

Net international reserves (millions of U.S. dollars)

2,631 2,851 3,112 3,481

Months of imports of goods and services, f.o.b.

4.2 4.4 4.4 4.8

Memorandum items:

GDP at current market prices (billions of Mauritian rupees)

323.0 344.0 366.4 394.2

GDP at current market prices (millions of U.S. dollars)

11,251 11,447 11,930 12,651

Public sector debt (percent of GDP)

58.6 57.9 60.0 59.1

Public sector debt (for debt law ceiling purpose) 4

54.3 53.1 55.1 54.6

Foreign and local currency long-term debt rating (Moody’s)

Baa2 Baa1 Baa1 …

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

1 Includes credit to parastatals.

2 GFSM 2001 concept of net lending/net borrowing; includes special and other extra budgetary funds.

3 Numbers were revised to include debts of deposit taking institutions and SDR allocation in 2009.

4 For the purposes of calculating the public debt ceiling, the 2008 Public Debt Management Act allows for the discounting of certain types of state-owned enterprise debt.

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 At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here: http://www.imf.org/external/np/sec/misc/qualifiers.htm.

BERLIN, Germany, April 22, 2014/African Press Organization (APO)/ — The Federal Government Commissioner for Human Rights Policy and Humanitarian Aid at the Federal Foreign Office, Christoph Strässer, is travelling to South Sudan, Uganda and the Democratic Republic of the Congo from 22 to 30 April.

In South Sudan he will visit a camp for internally displaced persons (IDP camp) and meet the Deputy Special Representative of the Secretary-General for UNMISS, Toby Lanzer, who is responsible for coordinating humanitarian assistance and development aid. As well as holding talks with high-ranking representatives of the South Sudanese government, Christoph Strässer will also meet the Chair of the South Sudan Human Rights Commission as well as representatives of NGOs in the country and German humanitarian NGOs to discuss the human rights and humanitarian situation there.

The talks in Uganda will centre on the recently adopted Anti-Homosexuality Bill. The Human Rights Commissioner will speak to Ugandan LGBTI activitists, the Uganda Human Rights Commission and representatives of German foundations and NGOs about the human rights situation and specifically the status of LGBTI persons in Uganda. Meetings at the foreign ministry and with a member of parliament are also planned.

The Human Rights Commissioner will then travel to eastern Congo and to Kinshasa. Here, too, the humanitarian situation, especially in eastern Congo, will be the focus of attention. The programme includes talks with Martin Kobler, Head of MONUSCO, and German NGOs working in the field of humanitarian assistance. Christoph Strässer will also visit refugee camps and a hospital for victims of sexual violence. In Kinshasa the Commissioner will hold talks with government representatives, human rights defenders and members of parliament.

LONDON, United-Kingdom, April 22, 2014/African Press Organization (APO)/ — FCO Minister for Africa Mark Simmonds condemns killings in Bentiu and Bor, South Sudan

Mr Simmonds said:

“I condemn in the strongest possible terms the killings last week in Bentiu in South Sudan. The United Nations Mission in South Sudan (UNMISS) has confirmed that large numbers of civilians were murdered when opposition forces took control of the town in what appear to have been ethnically motivated killings. I also unreservedly condemn the attack on the UNMISS base in Bor last week which resulted in large numbers of Internally Displaced Persons (IDPs) being killed and injured, again in an attack that looks to have been ethnically motivated.

“When I was in South Sudan last week, including visiting the Tom Ping IDP camp in Juba, reports of these attacks were just beginning to emerge. I called on all parties to the conflict to cease hostilities immediately and end the cycle of violence. I reiterate that call now. The deliberate killing of civilians and IDPs is a clear violation of international law and these crimes will be investigated and those responsible held to account. All Inflammatory media statements by those in positions of influence in South Sudan must also cease. Not only those individuals perpetrating these atrocities, but those inciting them, will be held accountable.”

GENEVA, Switzerland, April 22, 2014/African Press Organization (APO)/ — The protection of South Sudan’s one million internally displaced persons is further eroding amid persistent violence and deliberate ethnically targeted attacks, United Nations Special Rapporteur Chaloka Beyani warned today.

Mr. Beyani, who visited South Sudan in November 2013, expressed his outrage at the deliberate attacks against areas where IDPs shelter. Last week’s massacre in a mosque and ethnically targeted killings in a hospital in Bentiu and the attack against the protected site of the UN Mission in South Sudan (UNMISS) in Bor, left hundreds dead and many more wounded.

“The safety and security of the displaced populations must be the absolute priority for the United Nations to safeguard,” stressed the independent expert tasked by the UN Human Rights Council to monitor, report and advise on the human rights of internally displaced persons (IDPs) in the world.

Since the outbreak of this violent armed conflict in December 2013, almost one million South Sudanese became internally displaced. While about 80’000 IDPs sought shelter in protected areas of UNMISS sites, the majority of IDPs fled elsewhere.

“I strongly condemn any violence against IDPs in South Sudan,” Mr. Beyani said. “I call on all parties to the conflict to abstain from all violence against internally displaced persons and other civilians, on all communities to desist from hate speech and use of force against each other, and on the international community to halt the erosion of protection in South Sudan.”

“A solid and comprehensive strategy on internal displacement and strong safeguards for the protection of IDPs must be a priority now,” the Special Rapporteur said, reiterating his call on the UN System and the international community from January 2014*.

The independent human rights expert also called for renewed and urgent efforts to decongest overcrowded UNMISS sites in Juba. “In the meantime,” he underscored, “measures to further increase the safety of the protected areas must be put in place without delay.”

(*) Check Mr. Beyani’s media statement (31 January 2014): http://www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=14209&LangID=E

MOGADISHU, Somalia, April 22, 2014/African Press Organization (APO)/ — The Special Representative of the UN Secretary-General for Somalia (SRSG), Nicholas Kay, condemned the killing of Mr. Abdiaziz Isaaq Mursal, a Member of the country’s Federal Parliament. Mr. Mursal was shot dead earlier today in Mogadishu by unknown gunmen.

Mr. Mursal is the second MP to be killed in less than 48 hours in Mogadishu. Another Somali parliamentarian, Mr. Isaak Mohamed Rino, was killed yesterday. Both attacks have been claimed by Al-Shabaab.

“I am appalled to learn of the death of Mr. Abdaziz Isaaq Mursal and I condemn his murder in the strongest terms. I was also saddened by the killing of a media worker in Mogadishu last night. The media must be allowed to carry out their work without fear of attack,” SRSG Kay said.

Unknown gunmen shot dead a Radio Dalsan worker, Muhammad Hassan Amar in Mogadishu’s Bakara Market on Monday evening.

Mr. Kay continued to say, “I am concerned by the recent attacks we have seen in Mogadishu. We remain resolute in our support for the Somali people and their representatives as they work to realise their hopes and aspirations for a peaceful and stable future.”

“The people responsible for these heinous crimes have nothing to offer the Somali people but violence and insecurity. I call on the authorities to investigate these attacks and bring the perpetrators to justice as quickly as possible,” he added.

SRSG Kay offers his sincere condolences to the family and friends of Mr. Mursal and Mr. Amar, as well as to the Federal Parliament of Somalia and the country’s media fraternity.

DAKAR, Senegal, April 22, 2014/African Press Organization (APO)/ — The International Federation of Journalists (IFJ) has strongly condemned the murder of a media professional in Somalia’s capital city, Mogadishu, yesterday, Monday 21 April.

According to IFJ affiliate, the National Union of Somali Journalists (NUSOJ), Mohamed Omar Mohamed, known as Amaar, an advertising and marketing staff at Radio Dalsan, was shot dead yesterday afternoon at the Mogadishu’s Bakara Market. His killers, who escaped from the scene, shot him several times, the NUSOJ has reported.

“This cowardly murder is a way to intimidate media professionals and journalists from freely exercising their duties. We call on authorities in Somalia to investigate this case and all crimes against the killings of journalists and to take every step necessary to end the impunity for violence and the country’s media personnel. The safety of media professionals must be a priority,” said Gabriel Baglo, IFJ Africa Director.

It is still unknown who carried out the murder as no group has claimed responsibility. The leadership of the NUSOJ has called for an immediate investigation to be held. “We denounce the murder of Mohamed Omar Mohamed and call upon the authorities to carry out urgent investigations that will shed light on the motives behind this killing and bring the perpetrators into justice,” said Omar Faruk Osman, NUSOJ Secretary General.

The IFJ has repeatedly warned authorities in Somalia that the safety of journalists and media workers must be a priority. Journalists in Somalia have been targeted again and again while reporting on issues in the public interest in their country.

In a separate incident in the semi-autonomous republic of Somaliland, the IFJ has also condemned the clampdown on critical media, in particular the internet. The NUSOJ has reported that the Somaliland administration has taken the decision to intensify its campaign to suppress and intimidate Haatuf newspaper by blocking access to its news site www.haatuf.net after it closed down the newspaper on 7 April 2014.

The IFJ has joined the NUSOJ in stating that the blockage is the latest evidence of what independent media see as a clampdown on critical media and particularly the Internet, a platform for disseminating views.

According to NUSOJ, the banning of the news website, which also targeted Haatuf’s sister paper www.somalilandtimes.net, was reportedly ordered by Hargeisa’s Marodi Jeeh Regional Court on 16 April and internet service providers were ordered to carry out the action. “We call on authorities to unblock Haatuf and the Somaliland Times websites,” said Baglo.

“This internet censorship violates the right to freedom of expression, including the freedom of information of the people of Somaliland,” said Omar Faruk Osman, NUSOJ Secretary General.

GENEVA, Switzerland, April 22, 2014/African Press Organization (APO)/ — IPU has condemned the killing of Somali MP Isaak Mohamed Rinoco in a car bomb attack in Mogadishu and is urging authorities in the Northeast African country to ensure greater protection of parliamentarians.

Isaak Mohamed Rinoco was killed on Monday when a bomb concealed in his vehicle exploded in Mogadishu, close to the heavily fortified government district. Mohamed Abdi, another MP, was seriously wounded.

IPU condemns this cowardly and reprehensible attack, the latest in a string of terrorist acts against parliamentarians committed to putting in place a fully functional democracy in Somalia after two decades of civil war and unrest.

IPU stresses every effort should be made to support and protect those working to represent the interests of the Somali people in an extremely challenging environment. The Organization also calls Somali authorities to ensure that those responsible for the attacks on MPs are brought to justice.

“The failure to deliver justice breeds impunity and can only lead to further violence against the legitimate representatives of the Somali people”, says IPU Secretary General Anders B. Johnsson.

IPU has been closely following the political transition in Somalia and has acknowledged the progress made by the country in putting in place a functional and representative parliament following legislative elections in 2012.

As a result Somalia was able to re-join IPU at its 129th Assembly in Geneva in October 2013.

ADDIS ABABA, Ethiopia, April 22, 2014/African Press Organization (APO)/ — The African Union (AU) Commission of Inquiry on South Sudan to undertake its first field mission to South Sudan from April 21st April to 1st May 2014 . This mission comes as …

GENEVA, Switzerland, April 22, 2014/African Press Organization (APO)/ — The UN Committee Against Torture is meeting in Geneva from 28 April to 23 May to review the following countries:
Uruguay (29-30 April); Thailand (30 April – 1 May); Sierra Leone…

GENEVA, Switzerland, April 22, 2014/African Press Organization (APO)/ — Over the past week IOM has distributed over 700 emergency relief kits including buckets, jerry cans, blankets, mosquito nets, mats, and soap to 1,400 households in Boda in the Ce…