Category: APO-OPA

ADDIS ABABA, Ethiopia, February 2, 2014/African Press Organization (APO)/ — The Commission of the African Union (AU) and the Office of the Special Representative of the United Nations Secretary-General on Sexual Violence in Conflict (SRSG-SVC), yeste…

ADDIS ABABA, Ethiopia, February 2, 2014/African Press Organization (APO)/ — Dr. Nkosazana Dlamini Zuma, Chairperson of the African Union Commission launched, today, 1st February 2014 the “African Union Foundation” at the Headquarters of the African Union in Addis Ababa, Ethiopia. In attendance were the Deputy Chairperson of the Commission, Mr. Erastus Mwencha, the AU Commissioners, the former Prime Minister of Jamaica, Mr. P.J. Patterson, invited guests and personalities.

Addressing the participants, Dr. Nkosazana stressed that, although the foundation accepts funds from outside donors, there is need to have alternative sources of financing from within Africa so that Africans can claim ownership of the foundation, “we should begin to fund our development ourselves” she said. Ministers of planning and finance have deliberated on the issue but will discuss further in detail in March, she added. Moreover, the issue of domestic and alternative sources of funding has been an intrinsic element of the continent’s commitments of the Pan African values of self-determination, solidarity and self-reliance. The AUC Chairperson called on the participants to act as good will ambassadors to the foundation.

Established by the AU Assembly in May 2013 the African Union Foundation aims to finance African Priorities through voluntary contributions. The Foundation will focus mainly on critical issues in line with agenda 2063. Other priorities that will be funded by the foundation include the development of skills and human resource, women’s empowerment and gender equality, regional integration, youth development and entrepreneurship in Africa. Diversity management is also one of the main issues that will be addressed as it is a very important element for peace and stability.

The Foundation supports and is derived from the African Union vision of “an integrated, people centered and prosperous Africa, at peace with itself and taking its rightful place in the world”. It is created to accommodate voluntary contribution from African private sector, African individuals, Philanthropic organizations, African Diaspora, companies doing business in Africa and any other donations or contributions.

The issue of domestic and alternative sources of funding has been an intrinsic element of the continent’s commitments of the Pan African values of self-determination, solidarity and self-reliance. In this regard, it is deemed necessary for the various players including public, private and civil society to be mobilized to act in partnership to accelerate the pace of integration that has thus far been largely State led.

ADDIS ABABA, Ethiopia, February 2, 2014/African Press Organization (APO)/ — The Commissioner for Rural Economy and Agriculture H.E Mrs. Rhoda Peace Tumusiime gave a briefing on building self-reliance towards the realization of the 2063 agenda on food and nutrition and the theme of the summit: transforming Africa’s agriculture for shared prosperity and improved livelihoods through harnessing opportunities for inclusive growth and sustainable development.

The commissioner pointed out that Africa’s economies experienced strong growth of more than five percent year on average over the last decade also that agriculture growth also picked up, even if it’s at a slower pace of four percent which falls short of the six percent targeted in Comprehensive Africa Agriculture Development Program (CAADP). She added that, with the adoption of CAADP frame work in 2003 the New Partnership for Africa’s Development (NEPAD) has been instrumental in helping bring up agriculture on the national, regional and international policy agenda.

According to Commissioner Tumusiime, the biggest problem that Africa faces today is the continents dependency on increasing imports to feed its fast growing population. Within the frame work of CAADP, national and regional compacts and investment plans strive to address major challenges for the transformation of African agriculture in the continent. These efforts, she explains, aim at building a bridge to link the poor African farmers whom the majority is women and smallholders with rapid urbanization and increasing demands for quality food and agricultural products. “These push for a comprehensive value chain approach to agriculture development which the focus is beyond the narrow confines of the farm stage to embrace the whole agrifood system including the agro industry and agribusiness stages that connect the farmer’s with the market in order to increase the development of the agribusiness of the farmers and the market links”. She added.

Addressing some of the issues raised by the journalists, Mr. Ibrahim Hassane Mayaki, the CEO of NEPAD said Africa is capable of not only meeting its own food needs but also to be a significant part of the response to the global challenge of feeding an increasing world population. He said, Africa’s agriculture must undergo a transformation of structure this means a bold shift in policy sustainable investment in infrastructure, institution and technology to overcome the challenges Africa’s agriculture groups have like low productivity and low competitiveness in this sectors.

ADDIS ABABA, Ethiopia, February 2, 2014/African Press Organization (APO)/ — The 13th General Assembly of the African First Ladies Against HIV/AIDS (OAFLA) took place on January 31st 2014 at the Africa Union old building under the theme “Zero new infection of HIV through access to health services for mothers and children”. On the occasion, the OAFLA President, Mrs Hinda Deby Itno, First Lady of the Republic of Chad signed a memorandum of understanding with the African Union Commission, represented by the Social Affairs Commissioner, Dr. Mustapha Sidiki Kaloko. The Assembly deliberated on recommendations of the Technical Advisors, made prior to this day.

Mrs Jeannette Kagame, First Lady of the Republic of Rwanda and Vice president of OAFLA, acknowledged the efforts made by the previous president of the organization, Namibia’s First Lady Penehupifo Pohamba, and welcomed the new president of the organization, Mrs Hinda Deby Itno, First Lady of the Republic of Chad. Mrs Kagame chaired this session whereby the first ladies discussed the theme.

In her welcoming remarks, the Ethiopian First Lady Mrs. Roman Tesfaye, indicated that Africa has suffered the AIDS epidemic and this epidemic has affected Africa’s development effort in all sectors including industry and trade. She applauded all major accomplishments made on the continent but said there was still a lot of work to do. She added that first ladies can play an indispensable role in reducing HIV/AIDS in Africa by, inter alia, organizing massive awareness campaigns and lobbying.

She stated women and children are the most vulnerable in conflict situations and called upon her peers to have a strong position to support the women and children in South Sudan. “Women and children must be prioritized” she said.

The President of the organization launched an appeal to all first ladies who are hesitating, to ”join as soon as possible so that our voice can be heard and our actions become more visible, together we can overcome challenges,” she said.

She congratulated the accomplishments of the last years, including the success against malaria and added that it was necessary to redouble efforts to allow young girls to access education and to eliminate early marriage for girls through massive sensitization.

Dr. Mustapha Sidiki Kaloko, Commissioner for Social Affairs of the Commission of the African Union, signed a Memorandum of Understanding on behalf of the African Union Commission to further reinforce the partnership. He applauded the success in the reduction of HIV infection through the Campaign for Accelerated Reduction of Maternal Mortality in Africa (CARMMA) and indicated that HIV/AIDS infections have decreased up to 50% in some countries. “However, challenges remain. In some countries the reduction has been slow and in others it has even risen, this is unfortunate”.

Present at the meeting were the first ladies of the Republic of Chad, Rwanda, Mozambique, Ghana and Zambia. The steering committee is composed of the first ladies of the Republic of Tanzania, Rwanda, Senegal, Ghana, Chad, Congo, Mozambique, Zambia and Algeria. In attendance were also, Mrs Phumzile Mlambo-Ngcuka- Executive Director UN Women, Mr Usi Hoebeb, Executive Director of New Projects & Communications of Nanseb Holdings, and Mrs Rosemary Museminali, UNAIDS Representative to AU and UNECA.

OAFLA was established as a collective voice for Africa’s most vulnerable people, women and children infected and affected by the HIV/AIDS pandemic. Since its beginning, OAFLA has transformed itself from a forum of ideas to an institution capable of providing the continent wide leadership needed to bring about change in peoples’ lives.

ROME, Italy, February 2, 2014/African Press Organization (APO)/ — FAO Director-General José Graziano da Silva today welcomed a breakthrough commitment by African heads of state to end hunger on the continent by 2025.

“This is the first time in history that African leaders have made such a strong pledge to eliminate hunger and it is also a show of confidence that, working together, we can win the fight against hunger in Africa in our lifetimes,” Graziano da Silva said after African Union (AU) Member States officially adopted the target at the AU Summit in Addis Ababa, Ethiopia.

“Africa is witnessing economic growth of unprecedented proportions, but it is also the only continent in the world where the total number of hungry people has gone up since 1990,” he said.

“The challenge now is to transform the vision of a food-secure Africa into reality by tackling the multiple causes of hunger.

“Investing in agriculture, creating safety nets and social protection for the poor, guaranteeing the right of access to land and water resources and targeting small-holder famers and young people will be key,” he said, adding that FAO would continue to support Africa in its efforts to eradicate hunger.

The 2025 target was initially hashed out at a high-level meeting on food security in Africa organized by the AU, Brazil’s Lula Institute – headed by former Brazilian President Luiz Inácio Lula da Silva – and FAO in Addis Ababa in July 2013.

Governments, international organizations, civil society and the private sector agreed upon the target as a means of promoting concrete actions that build upon the momentum of the Comprehensive Africa Agriculture Development Programme (CAADP).

The Director-General highlighted the leadership of the AU Commission and Chairperson Nkosazana Dlamini Zuma in taking this process forward.

“This is a fully Africa-owned effort. The commitment of the African Union Commission was crucial to get where we are today. FAO is committed to supporting the AU and African nations in reaching the 2025 target.”

Millennium Development Goal

Eleven African countries have already met the first Millennium Development Goal hunger target to reduce by half the proportion of hungry people between 1990 and 2015: Algeria, Angola, Benin, Cameroon, Djibouti, Ghana, Malawi, Niger, Nigeria, São Tomé and Príncipe, and Togo.

“This is clear evidence that African countries are moving in the right direction,” Graziano da Silva said.

Three countries – Djibouti, Ghana, and Sao Tome and Principe – have also met the even more ambitious 1996 World Food Summit goal to reduce by half the total number of hungry.

The new 2025 African Union target aligns the continent with the Zero Hunger Challenge launched by UN Secretary-General Ban Ki-moon in 2012.

RABAT, Morocco, February 2, 2014/African Press Organization (APO)/ — On January 31, 2014, the Executive Board of the International Monetary Fund (IMF) completed the third review of Morocco’s economic performance under a program supported by a 24-month Precautionary and Liquidity Line (PLL) arrangement and concluded the 2013 Article IV consultation with Morocco.1

The PLL arrangement was approved on August 3, 2012 in an amount equivalent to SDR 4.12 billion (about US$6.2 billion or 700 percent of Morocco’s quota), (See Press Release No. 12/287). The Executive Board concluded the second review on July 31, 2013. The authorities are treating the arrangement as precautionary..

The PLL arrangement continues to support the authorities’ home-grown reform agenda aimed at achieving higher and more inclusive economic growth by providing an insurance against external shocks. The PLL was introduced to meet more flexibly the liquidity needs of member countries with sound economic fundamentals and strong record of policy implementation but with some remaining vulnerabilities.

Following the Board discussion of the review, Ms. Nemat Shafik, Deputy Managing Director, and Acting Chair made the following statement:

“Notwithstanding the continued unfavorable external environment and challenging domestic conditions, Morocco’s macroeconomic performance improved in 2013, supported by strong policy commitment and implementation, as well as the insurance provided by the PLL. Important measures taken by the authorities helped reduce fiscal and external vulnerabilities and strengthen the economy’s resilience. Given significant downside risks and persistently high unemployment, the economic outlook will depend on the sustained delivery of policy and structural reforms designed to continue rebuilding policy buffers and promote higher and more inclusive growth.

“The substantial reduction in energy subsidies achieved in 2013, along with increased social assistance to the most vulnerable, helped strengthen the fiscal accounts and reduce underlying fiscal vulnerabilities. Looking ahead, continued strengthening of public finances will require a reorientation of revenue and spending to better support growth and inclusiveness, along with the passage of a new organic budget law that incorporates best practices with respect to fiscal discipline, coverage and expenditure control.

“Sustaining the recent gains in improving Morocco’s external position hinges on measures to support its external competitiveness. Structural reforms in this area are a priority. More flexibility in the exchange rate regime, in close coordination with other macroeconomic policies, would also help and would increase the economy’s resilience to external shocks.

“Further reforms are needed to strengthen the business climate, transparency, and the judiciary system and to improve the functioning of the labor market in order to attract foreign direct investment and promote strong job growth. Broader financial inclusion including greater access to credit for small and medium-sized enterprises is also needed to foster higher growth and boost employment.”

The Executive Board also concluded the 2013 Article IV consultation with Morocco.

The Moroccan economy has weathered the recent unfavorable regional and global economic context relatively well. GDP growth is expected to have reached about 4.5 percent in 2013 on the back of an exceptional agricultural season. Growth in other sectors has been dragged down by the effects of the European crisis, but is expected to rebound in 2014 for an overall growth rate of around 4 percent. Inflation is well under control, while the financial sector remains sound. The 2013 current account deficit was reduced and international reserves have been stable above four months of imports for more than a year, thanks in part to sustained foreign investment and access to international bond markets at favorable terms. Lower international oil prices and policy actions helped reduce the fiscal deficit from 7.3 percent of GDP in 2012 to 5.4 percent in 2013.

Executive Board Assessment2

Executive Directors commended the economy’s resilience in the face of significant external shocks and challenging domestic conditions, and welcomed recent measures that successfully helped reduce fiscal and external vulnerabilities. Noting Morocco’s high unemployment rate and the downside risks to the outlook, Directors advised sustaining reforms to continue rebuilding policy buffers and promote higher and more inclusive growth.

Directors supported efforts to strengthen the public finances and support both fiscal and external sustainability. They welcomed the reduction of energy subsidies in 2013 while increasing social protection to the most vulnerable, and encouraged the authorities to sustain such efforts. They advised that revenue and spending should be reoriented to better support growth and inclusiveness in 2014 and beyond, through reforms aimed at broadening the tax base, reviewing tax incentives and exemptions, reforming the VAT system, moderating the public wage bill, and reforming the pension system.

Directors welcomed the adoption by the Council of Ministers of the new Organic Budget Law as a step toward the establishment of a modern and improved fiscal framework. They called for strengthening the provisions of the draft law pertaining to fiscal discipline, coverage and expenditure control, in line with international best practice, and looked forward to the law’s timely approval ahead of the preparation of the 2015 finance law.

Directors underscored that consolidation of Morocco’s external position hinges on improving its external competitiveness. They stressed the critical importance of structural reforms in this area. They noted that a move toward a more flexible exchange rate regime, in coordination with other macroeconomic policies, would also help and would increase the economy’s resilience to external shocks. In this regard, Directors welcomed the Fund’s provision of technical assistance to the Bank Al-Maghrib (BAM) to help prepare for a smooth transition to more exchange rate flexibility. They recommended further reforms to strengthen the business climate, transparency, and the judiciary system and to improve the functioning of the labor market in order to attract private investment and promote strong job growth.

Directors supported BAM’s efforts to strengthen banking supervision and regulatory arrangements, including gradual adherence to the Basel III norms, as well as closer monitoring of the banking sector’s international expansion. They underscored the importance of financial deepening and increased access to credit for small and medium-sized enterprises for fostering sustained growth.

Morocco: Selected Economic Indicators, 2012–17

PLL1/

Rev.2/

Proj.

2012

2013 2014 2015 2016 2017

(Annual percentage change)

Output and Prices

Real GDP

2.7 5.1 4.5 3.9 4.9 5.2 5.4

Real primary GDP

-7.2 13.6 17.0 -1.0 4.5 4.5 5.0

Real non-primary GDP

4.6 3.7 2.4 4.8 5.0 5.3 5.5

Consumer prices (end of period)

2.6 2.3 0.4 2.5 2.5 2.5 2.5

Consumer prices (period average)

1.3 2.3 1.9 2.5 2.5 2.5 2.5

(In percent of GDP)

Investment and Saving

Gross capital formation

35.3 34.3 34.7 35.3 35.3 35.4 35.5

Of which: Nongovernment

29.7 30.0 29.5 30.7 29.9 29.9 30.1

Gross national savings

25.6 27.1 27.2 28.8 29.7 30.6 31.3

Of which: Nongovernment

25.9 26.8 25.9 27.6 26.8 26.9 27.0

(In percent of GDP)

Public Finances

Revenue

28.7 27.5 27.9 27.4 28.1 28.1 28.2

Expenditure

36.1 33.0 33.4 32.4 32.4 31.7 31.2

Budget balance

-7.3 -5.5 -5.4 -4.9 -4.3 -3.6 -3.0

Primary balance (excluding grants)

-5.0 -4.0 -3.6 -2.8 -2.7 -1.9 -1.4

Cyclically-adjusted primary balance (excl. grants)

-4.7 … -3.4 -3.3 -2.6 -1.9 -1.4

Total government debt

60.2 61.8 61.7 62.5 62.4 61.5 60.1

(Annual percentage change; unless otherwise indicated)

Monetary Sector

Credit to the private sector 3/

4.8 6.1 3.6 5.6 6.2 6.9 6.9

Base money

-0.5 11.5 9.8 4.6 5.5 6.5 6.0

Broad money

4.5 5.5 3.9 4.6 5.5 6.5 6.0

Velocity of broad money

0.8 0.8 0.9 0.9 0.9 0.9 0.9

Three-month treasury bill rate (period average, in percent)

3.2 … … … … … …

(In percent of GDP; unless otherwise indicated)

External Sector

Exports of goods (in U.S. dollars, percentage change)

-0.8 3.3 1.8 9.1 7.3 7.0 6.3

Imports of goods (in U.S. dollars, percentage change)

1.6 0.7 0.7 6.8 5.2 5.1 5.2

Merchandise trade balance

-20.9 -18.7 -19.0 -18.1 -17.1 -16.2 -15.6

Current account excluding official transfers

-10.0 -8.2 -8.0 -7.5 -6.7 -5.7 -5.2

Current account including official transfers

-9.7 -7.2 -7.4 -6.5 -5.7 -4.8 -4.2

Foreign direct investment

2.4 3.2 2.9 2.9 3.0 3.1 3.1

Total external debt

29.8 31.3 30.9 31.5 31.6 30.6 29.2

Gross reserves (in billions of U.S. dollars)

17.5 18.7 19.3 20.0 21.1 22.4 23.7

In months of next year imports of goods and services

4.2 4.3 4.3 4.3 4.3 4.3 4.3

In percent of short-term external debt (on remaining

1251.8 1332.0 1374.5 1427.1 1508.7 1601.2 1691.2

maturity basis)

Memorandum Items:

Nominal GDP (in billions of U.S. dollars)

96.1 104.8 105.5 115.1 125.1 136.0 146.7

Unemployment rate (in percent)

9.0 8.9 8.9 … … … …

Population (millions)

32.5 32.9 32.9 33.2 33.5 33.8 34.2

Net imports of energy products (in billions of U.S. dollars)

-12.4 -11.6 -12.2 -13.0 -12.9 -12.9 -12.9

Local currency per U.S. dollar (period average)

8.6 … 8.4 … … … …

Real effective exchange rate (annual average,

percentage change)

-1.0 … 0.1 … … … …

Sources: Moroccan authorities; and IMF staff estimates.

1/ Refers to the macro framework for the 2nd review in EBS/13/96.

2/ Revised macro framework.

3/ Includes credit to public enterprises.

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.

ADDIS ABABA, Ethiopia, January 27, 2014/African Press Organization (APO)/ — The Peace and Security Council of the African Union (AU), at its 415th meeting held on 27 January 2014, adopted the following decision on the situation in Madagascar:

Council,

1. Takes note of the briefing made by the Commissioner for Peace and Security, as well as of the statement made by the Executive Secretary of the Southern African Development Community (SADC);

2. Recalls its previous communiqués and press statements on the situation in Madagascar, in particular PSC/ PR/COMM.(CLXXXI) communiqué, adopted at its 181st meeting held on 20 March 2009, PSC/PR/COMM.1(CCXVI) and PSC/PR/COMM.1(CCXXI) communiqués, adopted at its 216th and 221st meetings held on 19 February and 17 March 2010, respectively, PSC/PR/COM.1(CCCIII) communiqué, adopted at its 303rd meeting held on 8 December 2011, and PSC/MIN/Comm.(CCCLXVIII) communiqué, adopted at its 368th meeting held in Dar-es-Salaam, United Republic of Tanzania, on 22 April 2013;

3. Reiterates its appreciation to the SADC and the AU for their sustained support to the resolution of the crisis and for the close coordination between the two organizations throughout the crisis exit process. Council, in particular, pays tribute to the SADC Mediator in the Malagasy crisis, former President Joaquim Chissano of Mozamique, as well as to Ambassador Ramtane Lamamra, former AU Commissioner for Peace and Security, for their commitment and active engagement, which contributed significantly to the progress achieved. Council also reiterates its appreciation to the international partners, particularly the members of the International Contact Group on Madagascar (ICG-M), for their support to the efforts of the AU and the SADC;

4. Welcomes the positive developments in Madagascar, particularly the holding, on 25 October and 20 December 2013, of the 1st and 2nd rounds of the presidential election, as well as the holding of the legislative elections, concurrently with the second round of the presidential election;

5. Acknowledges that the electoral process has been recognized as being inclusive, credible and legitimate by the different observation missions, particularly those of the AU and the SADC. Council, in this regard, expresses its appreciation to the Malagasy people, as well as to all political actors and institutions of the country, for the smooth and peaceful conduct of the elections and the completion of the transition process;

6. Takes note of the proclamation, on 17 January 2014, by the Special Electoral Court (CES) of Madagascar, of the final results of the second round of the presidential election, congratulates Mr. Hery Rajaonarimampianina Rakotoarimanana, for his election as the new President of the Republic of Madagascar, and notes his swearing-in on 25 January 2014;

7. Decides, in view of the completion of the transition process and the restoration of constitutional order, and in accordance with the relevant AU instruments, including the African Charter on Democracy, Elections and Governance and paragraph 8 of its communiqué PSC/MIN/Comm.(CCCLXVIII), to lift the suspension of Madagascar’s participation in the activities of the AU. Council further decides to lift all other measures that had been taken to ensure that the Malagasy stakeholders work towards the restoration of constitutional order, and invites Madagascar to immediately resume its participation in the activities of the AU;

8. Urges the new President of the Republic of Madagascar and the other Malagasy stakeholders to work towards the promotion of national reconciliation, good governance and respect for human rights, in order to consolidate the important gains achieved;

9. Expresses the commitment of the AU and the SADC to continue to support the new Malagasy authorities and the other concerned stakeholders in the country in their efforts, including those relating to socio-economic recovery;

10. Calls on the international community to provide necessary support to Madagascar, with a view to consolidating the remarkable gains made by the country;

11. Decides to remain actively seized of the matter.

ADDIS ABABA, Ethiopia, January 27, 2014/African Press Organization (APO)/ — The African Union Ministers of Foreign Affairs and Members of the Executive Council concluded today, 26January 2014, in the Ethiopian city of Bahir Dar, three days of intense debates on the Africa Agenda 2063, in the framework of the AU First Ministerial Retreat, which held under the theme of “Defining Agenda 2063 for Africa”.

In his closing remarks, Dr. Tedros Adhanom Ghebreyesus, Minister for Foreign Affairs of Ethiopia and Chairperson of the AU Executive Council, expressed satisfaction at the successful conclusion of the retreat, urging that it “should be the beginning of a strong political commitment to implement our vision and meet the aspirations of our peoples”.

Acknowledging Africa’s internal and external challenges that militate against its prospect for peace and prosperity, the Executive Council Chairperson emphasized on the responsibility of the African leaders to lay a solid foundation for the realization of the continent’s dream. “We should, demonstrate the strong leadership, political commitment and selfless sacrifice to make some of the tough decisions to ensure a better future for the African peoples,” he added.

The ministerial retreat listened to an imaginative e-mail from the future (2063), to Kwame Nkrom, Pan Africanist and one of the founding fathers of the OAU, written by Dr. Nkosazana Dlamini Zuma, AUC Chairperson, which demonstrates the dreams and aspirations shared by all Africans i.e. for a peaceful, integrated and prosperous Africa.

The Chairperson in her e mail from the future said ” Planning fifty years ahead allowed us to dream, think creatively, and sometimes crazy as one of the Ministers who hosted the 2014 ministerial retreat said, to see us leapfrog beyond the immediate challenges. (Please see the complete e mail from the future on: www.au.int)

The retreat also saw two proposals by the AUC Chairperson: establishing a Ministerial Committee, which will work together with the and African Development Bank (AfDB) to finalize Agenda 2063; and creating an African platform where political and business leaders as well as all other concerned stakeholders regularly meet to brainstorm on the continent’s development and integration agenda.

GENEVA, Switzerland, January 27, 2014/African Press Organization (APO)/ — UN HUMANITARIAN CHIEF VALERIE AMOS TO VISIT SOUTH SUDAN

WHO: Valerie Amos, UN Under-Secretary-General for Humanitarian Affairs and
Emergency …

ABUJA, Nigeria, January 27, 2014/African Press Organization (APO)/ — The Association of African Development Finance Institutions (AADFI) has rated the Nigerian Export-Import Bank – NEXIM (http://neximbank.com.ng) as ‘Best Performing African DFI.’ The decision was an outcome of the ‘2013 Annual AADFI CEOs Forum of African Development Banks and Finance Institutions’ on the theme “Strengthening African DFIs with Appropriate Standards and Guidelines: 3rd Peer Review & Rating of African DFIs” held at the Serena Beach Hotel & Spa, Mombasa Republic of Kenya from 13-15 November, 2013. The Forum marked the conduct of the 3rd Peer Review of DFIs with the AADFI Prudential Standards, Guidelines and Rating System (PSGRS).

Logo: http://www.photos.apo-opa.com/plog-content/images/apo/logos/nexim.png

Photo: http://www.photos.apo-opa.com/plog-content/images/apo/photos/140126.png (NEXIM Bank has been Rated as Best Perfoming African DFI)

Photo Mr. Roberts U. Orya, Managing Director of Nigerian Export-Import Bank: http://www.photos.apo-opa.com/index.php?level=picture&id=588

In the letter conveying the message to NEXIM Bank, titled “CONGRATULATION ON YOUR RATING AS BEST PERFORMING AFRICAN DFI”, Mr. J.A. Amihere, the Secretary General of AADFI, stated, “In the light of your institution’s rating as ‘Best Performing DFI”, we are pleased, on behalf of the Chairman of the Association, to extend our warm congratulations to your Board of Directors and Management Team on this record performance, and urge you not to relent in your effort at entrenching best practices in the operations of your institution as you continue to sustain your development financing mandate.”

According to AADFI, the Peer Review Exercise with the AADFI PSGRS was not a competition but an approach to evaluate DFIs in the various areas of governance, finance and operation in order to identify areas of weaknesses for self-improvement and strengths for consolidation.

Suffice to state that considering NEXIM Bank was in the ‘Negative rating’ for a long time before the Roberts Orya-led Management took office in August 2009, it is instructive to note that it quickly moved to ‘B’ rating in 2012, then progressed to ‘Best Performing African DFI’ in 2013.

The state of affairs of NEXIM at the time Mr. Roberts Orya took charge of the then newly-constituted Executive Management on August 20, 2009 was such that the financial and operational performance of the Bank had deteriorated to a punching level, in addition to a myriad of other problems. These extended to an alarming decline in the quality of risk assets as the Bank’s total loan portfolio of N14.6 Billion was non-performing by 72%. Within that category, N10.03 Billion or 69.05% was classified as completely lost resulting in a decline in the bank’s income.

The net effect was a depletion of the Bank’s shareholders funds as a result of accumulated losses, significant decrease in income and tolerance of excessive and escalating overheads. Coupled with these were the issues of non-adherence to corporate governance tenets, non-existent risk management framework, lack of strategic focus and digression from core mandate, lack of visibility of the Bank, etc.

In light of the above, the Executive Team set to reverse the problems and ensure NEXIM Bank was able to contribute significantly to the economic development of Nigeria. Under the leadership of its former Board Chairman, Dr. Kingsley C. Moghalu, the Management received approval in 2010 to reposition the Bank to effectively deliver on its statutory mandate and become an ‘effective enabler of Nigeria’ economic transformation. Accordingly, a Corporate Transformation exercise was initiated centering on the key perspectives of Strategy, Risk Management and Corporate Governance, Financial Performance, Operations, Organization and People, with assistance from KPMG Professional Services.

The outcome of the exercise was the Corporate Transformation Project (Project Spring) which led to the re-definition of the Bank’s Mission, Vision and Strategic Objectives targeting four sectors, namely, Manufacturing, Agro-processing, Solid Minerals & Services, which have high employment and foreign exchange earning potentials in the non-oil sector of the Nigerian economy. This has become the MASS Agenda of the NEXIM Bank.

Subsequently, the Management set out clear transformation implementation activities which included a 5-Year Strategic Plan marshalling out the following areas –

i. clearly defined market penetration action plans with responsibilities and timelines;

ii. robust corporate governance and risk management architecture/frameworks in line with international best practice;

iii. brand strategy and brand engagement strategy to improve visibility and project the Bank’s image;

iv. clearly defined roles and responsibilities;

v. organization-wide key performance indices (KPIs) and scorecard to ensure effective monitoring of the Bank’s operations and performance by its staff and shareholders;

vi. redesigned and roll out of policies, processes and procedures with documented business functional requirements for the redesigned process to ensure efficiency;

vii. IT transformation project which will support the re-designed business processes with minimal approval levels, overlaps, redundancies as well as adequate controls; etc.

The Managing Director of NEXIM Bank, Mr. Roberts U. Orya sees the ‘A’ rating by AADFI as a well-deserved reward for all the hard work, painstaking commitment and dedication that his executive management team and staff have put into rebuilding an otherwise moribund institution over the past four years. According to him, “The current rating of NEXIM as ‘Best Performing African DFI’ from a negative rating in 2011 by AADFI is a clear testimony that the Corporate Transformation initiative we embarked upon since August 2009 has largely succeeded. The Bank is now better repositioned to deliver on its mandate through more capital injection and other institutional support from our two Shareholders – CBN and Federal Ministry of Finance in terms of supervisory, regulatory oversight and guidance functions. This has increased our capacity to support the growth of the non-oil exports and complement the export boosting activities of commercial banks. In all, we have consistently maintained a robust strategy, efficient operations through sustenance of highly skilled and motivated personnel.”

Continuing, Mr. Orya stated that “…the ultimate plan of the Bank is to invite an international rating agency, may be Standard and Poor or Agusto & Co, or any of such agencies to rate the Bank….ideally, this is the time for such a rating….”

In concrete terms, between August 2009 and December 2013, the Bank has supported Nigerian exporters, mainly Small and Medium Enterprises (SME’s) in the MASS sectors, to the tune of N30.99Billion, and issued Guarantees valued at US$27.30Million.

In terms of developmental impact to the Nigerian economy, the Bank has through its funding interventions generated/sustained over 21,075 direct jobs, in addition to many indirect jobs and facilitated the generation of estimated US$250.32Million annually in foreign exchange earnings.

In line with the strategic objective of building a profitable institution with a robust balance sheet, the Management has ensured an appreciable return on the equity investment of the shareholders. Accordingly a dividend for the 2010 financial year performance was declared and paid, which was the first time since year 2003 when dividend was last paid. Dividend for 2011 has also been declared and paid, while dividend for 2012 will be paid after the approval of the accounts by the CBN. This would make it three years of unbroken profitable performance, whilst fulfilling the Bank’s role as a development finance institution.

In other areas of its operation, the Bank, within the period under review, has achieved a cumulative loan recovery of N1.82Billion; designed and rolled out a robust enterprise-wide risk management framework.

In terms of branding, communication and visibility, the Bank has created and sustained an amazing awareness of its objectives, products and service offerings across the local, national, and international media through its rebranding exercise.

The net effect of all these is that the Bank, has through its activities, strongly supported and has continued supporting government’s policy initiatives, especially Mr. President’s Transformation Agenda, with investment and job creation in key sectors of Manufacturing, Agro-Processing, Solid Minerals and Services, including the Creative and Entertainment Industry.

Relentlessly, the Bank is forging ahead with several innovative initiatives and strategic alliances including –

a) deepening of intra-regional trade with the launching of ECOWAS Trade Support Facility (ETSF);

b) collaboration with the Borderless Alliance (an initiative of the USAID/ West African Trade Hub) to progress the regional initiative aimed at removing non-tariff barriers;

c) facilitating the establishment of a Shipping Company (The Sealink Project) to own and operate ocean going vessels within the West and Central African sub-regions; and

d) development of the facility guidelines for the Nigerian Creative Arts and Entertainment Industry.

Notably, the Bank has been able to leverage on its balance Sheet to secure lines of credit from institutions like the African Export-Import Bank (Afrexim), the Export-Import Bank of India, the African Development Bank (AfDB) while it has collaboration arrangements with United States Export-Import Bank and other EXIM Banks. The Bank is a member of the World Economic Forum in the Global Growth Company category, and was recently admitted as a member of OECD (Organization for Economic Corporation and Development), in observer status.

Distributed by APO (African Press Organization) on behalf of the Nigerian Export-Import Bank (NEXIM).

Media Contact:

Chinedu Moghalu

+234-8088-353-804

moghaluc@neximbank.com.ng

About NEXIM Bank – The Nigerian Export-Import Bank (http://neximbank.com.ng) was established by Act 38 of 1991 as an Export Credit Agency with the broad mandate to promoting the diversification of the Nigerian economy and deepening the external sector, particularly the non-oil through the provision of credit facilities in both local and foreign currencies; risk-bearing facilities through export credit guarantee & export credit insurance; business development and financial advisory services etc.

In pursuit of its mandate of promoting export diversification and deepening the non-oil sector, the Bank’s current strategic initiatives are targeted towards boosting employment creation and foreign exchange earnings in the Manufacturing, Agro-processing, Solid Minerals and Services (Tourism, Transportation and Entertainment) industries.