Category: APO-OPA

ADDIS ABABA, Ethiopia, December 17, 2012/African Press Organization (APO)/ — The Peace and Security Council of the African Union (AU), at its 349th meeting held on 14 December 2012, adopted the following decision on the situation between Sudan and South Sudan:

Council,

1. Takes note of the Report of the AU High-Level Implementation Panel on Sudan and South Sudan (AUHIP) on the implementation of matters contained in communiqué PSC/MIN/COMM/1(CCCXXXIX) adopted at its 339th meeting held of 24 October 2012, as introduced by the Commissioner for Peace and Security and the Chairperson of the AUHIP. Council further takes note of the statements made by the Ministers of Foreign Affairs of the Republic of Sudan and the Republic of South Sudan, the United Nations and other bilateral and multilateral partners;

2. Commends the AUHIP and its members, namely former Presidents Thabo Mbeki, Abdulsalami Abubakar and Pierre Buyoya, as well as the Panel Support Team, for their ongoing efforts to assist the Parties to establish cooperative and mutually supportive relations, subsequent to the Agreements between Sudan and South Sudan of 27 September 2012. Council further commends the Chair of the Inter-Governmental Authority on Development (IGAD), for his continued positive and supportive role to the work of the AUHIP and to both Parties;

3. Recalls resolution 2046 (2012) adopted by the United Nations Security Council (UNSC) on 2 May 2012, which endorsed the Roadmap adopted by Council on 24 April 2012 and reiterates, once again, the AU’s appreciation to the UN, including its Special Envoy, Haile Menkerios, and the UN Interim Security Force for Abyei (UNISFA), as well as to other bilateral and multilateral partners, for their unwavering support to the AU-led efforts;

4. Notes with concern the non-implementation by the Governments of the Republic of Sudan and the Republic of South Sudan of the Agreements reached on 27 September 2012, namely the Agreement on Security Arrangements, the Framework Agreement on the Status of Nationals of the Other State, the Agreement on Border Issues, the Agreement on Trade and Trade-related Issues, the Agreement on a Framework for Cooperation on Central Banking Issues, the Framework Agreement to Facilitate Payment of Post-service Benefits, the Agreement on Certain Economic Matters, Division of Assets and Liabilities, Arrears and Claims and Joint Approach to the International Community, the Agreement Concerning Oil and Related Economic Matters, and the overall Cooperation Agreement. In particular, Council further notes with concern the delay in the implementation of critical security arrangements entrusted to the Joint Political and Security Mechanism (JPSM);

5. Reminds the Governments of the Republic of Sudan and the Republic of South Sudan of their responsibilities to implement the above-mentioned Agreements without delay, in a comprehensive and coordinated manner. In this regard, Council looks forward to the meeting of the JPSM scheduled for 15 December 2012, and urges the Co-Chairs of the JPSM to work in a constructive and cooperative spirit to implement the commitments of the two countries under the 27 September 2012 Agreements;

6. Takes note of the steps taken to establish the Abyei Area Administration and Executive Council, consistent with the provisions of the 21 June 2011 Agreement on Temporary Arrangements for the Administration and Security of Abyei Area, namely the provision by Sudan of a list of nominees for the Administration and Council and South Sudan’s acceptance to consider this list, and urges them to move forward in the establishment of these two bodies;

7. Welcomes the willingness of the President of the Republic of South Sudan and the President of the Republic of Sudan to meet, and encourages the convening of a Summit in the shortest possible time, in order to remove bottlenecks on all pending issues, including those relating to Abyei and the border;

8. Reiterates its acceptance of the Proposal for the resolution of the Final Status of Abyei Area, submitted by the AUHIP on 27 September 2012, as a fair, equitable and workable solution to the dispute between the two countries, which takes into account existing Agreements entered into by the Parties, as well as the needs and interests of the communities on the ground. Council notes that the deadline for the Parties to negotiate on the basis of this Proposal expired on 5 December 2012, but that no negotiations had taken place by that time. Council urgently calls for the anticipated negotiations to take place, and eagerly awaits the outcomes of the Summit Meeting referred to above. Council further refers the determination on the issue of the Final Status of Abyei to its meeting at the level of the Heads of State and Government, to be held on the margins of the 21st Ordinary Session of the Assembly of the Union, in Addis Ababa, in January 2013;

9. Welcomes the engagement of the Parties with the Team of Experts on the resolution of the Five Disputed Border Areas in accordance with its previous decision, and urges the Parties to continue their cooperation with the Experts in order to expedite the resolution of this issue. Council however notes that the Parties have not completed their negotiations on the process for the resolution of the Five Disputed Areas, as well as the Claimed Border Areas. Council calls upon the Parties to resolve these outstanding issues, and defers its decision on these matters pending the outcomes of the Summit Meeting between the President of the Republic of Sudan and the President of the Republic of South Sudan;

10. Expresses profound regret that the Government of Sudan and the Sudan People’s Liberation Movement-North (SPLM-N) have failed to convene direct negotiations, despite the repeated calls upon them to do so. Council notes with concern the recent escalation of the conflict in the “Two Areas” of Blue Nile and Southern Kordofan, and reiterates that there can be no military solution to this conflict and that efforts towards a political solution should be delayed no longer. Council repeats its urging that direct political talks should begin immediately, facilitated by the AUHIP with the support of the IGAD Chair, on the basis of the 28 June 2011 Framework Agreement Between the Government of Sudan and the Sudan People’s Liberation Movement-North on Political Partnership between NCP and SPLMN, taking into account the Draft Agreement submitted to them by the AUHIP, on 17 September 2012;

11. Recalls that communiqués PSC/MIN/COMM/3.(CCCXIX), PSC/PR/COMM.(CCCXXIX) and PSC/MIN/COMM/1(CCCXXXIX) of its 319th, 329th and 339th meetings called on the Parties immediately to implement the Joint Proposal for Access to Provide and Deliver Humanitarian Assistance to War-affected Civilians in South Kordofan and Blue Nile States. Council expresses its serious concern that, despite the signing by both Parties, on 4 and 5 August 2012, of the Memoranda of Understanding on the modalities for the delivery of humanitarian assistance to affected populations, there has been, to date, no orderly delivery of any humanitarian assistance in the SPLM-N held areas;

12. Reiterates its call to the Parties to permit and facilitate immediate humanitarian access to the affected populations of the Two Areas, in accordance with the Joint Proposal and the Memoranda of Understanding. To this end, Council urges the Parties to agree to an immediate cessation of hostilities as the first priority during their direct negotiations, as referred to above, in order to facilitate the urgent and long-overdue delivery of humanitarian assistance to the affected populations;

13. Requests the AUHIP to submit a final report to Council on all outstanding issues arising from the 24 April 2012 Communiqué and Roadmap, for its meeting planned to take place on the margins of the forthcoming Ordinary Session of the Assembly of the Union, in January 2013;

14. Recalls paragraph 21 of Communiqué PSC/MIN/COMM/1(CCXXXIX), in which Council requested the AUHIP to submit a comprehensive narrative and analytical report covering all matters falling within its mandate and scope of work since it was established in October 2009, to a meeting of Council to be held at the level of Heads of State and Government, in January 2013. In this respect, Council extends this deadline by an additional six months;

15. Decides to remain actively seized of the matter.

GENEVA, Switzerland, December 17, 2012/African Press Organization (APO)/ — Violence against health-care personnel in armed conflicts and other emergencies leaves millions of patients worldwide without care when they need it most. From 17 to 19 December, around 40 health-care practitioners are meeting in Cairo to recommend ways to improve security.

The workshop, co-organized by the International Committee of the Red Cross (ICRC) and the Egyptian Red Crescent, was inaugurated today by Dr Nagwa Hussein Ahmed Khalel, Egypt’s minister of insurance and social affairs and vice-president of the Egyptian Red Crescent. An inaugural address was given by Prof. Saad Zaghloul Al Achmawy assistant minister of health and housing.

“This forum will provide a unique opportunity for doctors, nurses, and the heads of ambulance services and emergency-care organizations to share best practice on how to enhance security for patients and health-care personnel,” said Klaus Spreyermann, the head of the ICRC delegation in Cairo.

“Members of our emergency action teams are keen to share what they have learned from their experiences treating people injured in street clashes,” said Prof. Mamdouh Gaber, the secretary-general of the Egyptian Red Crescent.

Among the participants, who come from a dozen countries, are staff from organizations within the International Red Cross and Red Crescent Movement, academics, and experts from the World Medical Association, the World Health Organization and Médecins sans Frontières.

In 2011, the ICRC launched its four-year “Health Care in Danger” project, which aims to address the impact of violent acts that obstruct the delivery of health care. The Cairo workshop is one of 10 taking place from 2012 to 2014 in which a total of around 400 experts from the health community, the Red Cross and Red Crescent Movement, government ministries, armed forces, national and international NGOs, international organizations and academic circles will gather to find practical ways of better protecting people providing or receiving health care during armed conflict and other emergencies. The recommendations of workshop participants will help the Red Cross and Red Crescent Movement and States party to the Geneva Conventions, meeting in 2015 within the 32nd International Conference of the Red Cross and Red Crescent, to decide on measures to take to address this pressing issue of humanitarian concern.

EL FASHER (DARFUR), Sudan, December 17, 2012/African Press Organization (APO)/ — The United Nations Country Team (UNCT) and the African Union – United Nations Mission in Darfur (UNAMID) has pledged to combine their efforts to work together in implementing specific initiatives including: voluntary returns, human rights and justice, institutional capacity development, and peace building and reconciliation.

This important milestone was reached today in the second session of the UNAMID/UNCT Joint Secretariat which concluded today at UNAMID’s headquarters in El Fasher, North Darfur.

In the run up to the two-day session, the joint working groups produced matrices setting out the existing activities implemented in collaboration between the UNCT and UNAMID.

The Joint Secretariat expressed their satisfaction with the work produced by the working groups and specifically with the innovative ideas proposed as part of the new joint activities. These proposals, which are now to be developed into more elaborate concept notes, will be submitted to the High Level Committee at the UNCT/ UNAMID meeting, scheduled to take place in February 2013.

The Joint Secretariat was established under the UNAMID/UNCT Vision Strategic Framework to oversee the work of the six UNCT/UNAMID joint working groups created within the framework of the implementation of the Doha Document for Peace in Darfur.

The concrete implementation of the joint activities will provide an additional opportunity to the parties to increase their collaborative efforts in support of sustainable peace in Darfur.

LONDON, United-Kingdom, December 17, 2012/African Press Organization (APO)/ — Commenting on the helicopter accident in Nigeria on 15 December UK Minister for Africa Mark Simmonds MP said:

“I was saddened to learn of yesterday’s helicopter crash in which Governor Yakowa, and General Azazi were killed, along with four others. These men were respected leaders who worked hard for many years for the benefit of Nigeria.

“I extend my deepest condolences to the families and friends of the deceased.”

ABUJA, Nigeria, December 17, 2012/African Press Organization (APO)/ — A judgment by the Economic Community of West African States Court of Justice (ECOWAS) has been hailed as a key moment in “holding governments and companies to account for pollution”, Amnesty International and the Socio-Economic Rights and Accountability Project (SERAP) said.

In the case, SERAP v. Nigeria, the Court unanimously found the Nigerian government responsible for abuses by oil companies and makes it clear that the government must hold the companies and other perpetrators to account.

The Court also found that Nigeria violated articles 21 (on the right to natural wealth and resources) and 24 (on the right to a general satisfactory environment) of the African Charter on Human and Peoples’ Rights by failing to protect the Niger Delta and its people from the operations of oil companies that have for many years devastated the region.

According to the Court, the right to food and social life of the people of Niger Delta was violated by destroying their environment, and thus destroying their opportunity to earn a living and enjoy a healthy and adequate standard of living. The Court also said that both the government and the oil companies violate the human and cultural rights of the people in the region.

The Court ruled that the government’s failure to enact effective laws and establish effective institutions to regulate the activities of the companies coupled with its failure to bring perpetrators of pollution “to book” amount to a breach of Nigeria’s international human rights obligations and commitments.

The Court emphasized that “the quality of life of people is determined by the quality of the environment. But the government has failed in its duty to maintain a general satisfactory environment conducive to the development of the Niger Delta region”.

“This judgment confirms the persistent failure of the Nigerian government to punish properly and effectively oil companies that have caused pollution and perpetrated serious human rights abuses, and is an important step towards accountability for government and oil companies that continue to prioritise profit-making over and above the well-being of the people of the region,” said Femi Falana SAN, and Adetokunbo Mumuni for SERAP.

“This is a crucial precedent that vindicates the human right to a healthy environment and affirms the human right of the Nigerian people to live a life free from pollution. It also makes it clear that the government must hold the oil companies to account,” said Michael Bochenek, Director of Law and Policy at Amnesty International.

“The judgment makes it clear that the Nigerian government has failed to prevent the oil companies causing pollution. It is a major step forward in holding the government and oil companies accountable for years of devastation and deprivation.” said Bochenek.

The court affirmed that the government must now move swiftly to fully implement the judgment and restore the dignity and humanity of the people of the region.

“The judgment has also come at a time when oil is being discovered in the majority of the member states of the ECOWAS. It is vital that other states take heed of this judgement, which has laid down minimum standards of operations for government and oil companies involved in the exploitation of oil and gas in the region,” Falana and Mumuni also said.

“The time has come for the Nigerian government to stand up to powerful oil companies that have abused the human rights of the people of the Niger Delta with impunity for decades,” said Bochenek.

“We commend the ECOWAS Court for standing up for the rights and dignity of the people of the Niger Delta. We also acknowledge the important legal contribution of Dr Kolawole Olaniyan of Amnesty International, to the case,” said Falana and Mumuni.

The case was filed against the Federal Government and six oil companies over alleged violation of human rights and associated oil pollution in the Niger Delta. Specifically, the plaintiff alleged: “Violations of the right to an adequate standard of living, including the right to food, to work, to health, to water, to life and human dignity, to a clean and healthy environment; and to economic and social development – as a consequence of: the impact of oil-related pollution and environmental damage on agriculture and fisheries.”

SERAP also alleged “oil spills and waste materials polluting water used for drinking and other domestic purposes; failure to secure the underlying determinants of health, including a healthy environment, and failure to enforce laws and regulations to protect the environment and prevent pollution.”

The Court dismissed the government’s objections that SERAP had no locus standi to institute the case; that the ECOWAS Court had no jurisdiction to entertain it; and that the case was statute-barred. The Court also rejected efforts by the government to exclude a 2009 Amnesty International report on oil pollution from being considered. The report was based on an in-depth investigation into pollution caused by the international oil companies, in particular Shell, and the failure of the government of Nigeria to prevent pollution or sanction the companies.

The suit number ECW/CCJ/APP/08/09 was argued by SERAP counsel, Femi Falana SAN, Adetokunbo Mumuni and Sola Egbeyinka.

The judgment was delivered by a panel of 6 judges: Justice Awa Nana Daboya, Justice Benefeito Mosso Ramos, Justice Hansine Donli, Justice Alfred Benin, Justice Clotilde Medegan and Justice Eliam Potey.

Article 15(4) of the ECOWAS Treaty makes the Judgment of the Court binding on Member States, including Nigeria. Also, Article 19(2) of the 1991 Protocol provides that the decisions of the Court shall be final and immediately enforceable. Furthermore, non-compliance with the judgment of the Court can be sanctioned under Article 24 of the Supplementary Protocol of the ECOWAS Court of Justice, and Article 77 of the ECOWAS Treaty.

ADDIS ABABA, Ethiopia, December 17, 2012/African Press Organization (APO)/ — The Peace and Security Council of the African Union (AU), at its 349th meeting held on 14 December 2012, adopted the following decision on the situation between Sudan and South Sudan:

Council,

1. Takes note of the Report of the AU High-Level Implementation Panel on Sudan and South Sudan (AUHIP) on the implementation of matters contained in communiqué PSC/MIN/COMM/1(CCCXXXIX) adopted at its 339th meeting held of 24 October 2012, as introduced by the Commissioner for Peace and Security and the Chairperson of the AUHIP. Council further takes note of the statements made by the Ministers of Foreign Affairs of the Republic of Sudan and the Republic of South Sudan, the United Nations and other bilateral and multilateral partners;

2. Commends the AUHIP and its members, namely former Presidents Thabo Mbeki, Abdulsalami Abubakar and Pierre Buyoya, as well as the Panel Support Team, for their ongoing efforts to assist the Parties to establish cooperative and mutually supportive relations, subsequent to the Agreements between Sudan and South Sudan of 27 September 2012. Council further commends the Chair of the Inter-Governmental Authority on Development (IGAD), for his continued positive and supportive role to the work of the AUHIP and to both Parties;

3. Recalls resolution 2046 (2012) adopted by the United Nations Security Council (UNSC) on 2 May 2012, which endorsed the Roadmap adopted by Council on 24 April 2012 and reiterates, once again, the AU’s appreciation to the UN, including its Special Envoy, Haile Menkerios, and the UN Interim Security Force for Abyei (UNISFA), as well as to other bilateral and multilateral partners, for their unwavering support to the AU-led efforts;

4. Notes with concern the non-implementation by the Governments of the Republic of Sudan and the Republic of South Sudan of the Agreements reached on 27 September 2012, namely the Agreement on Security Arrangements, the Framework Agreement on the Status of Nationals of the Other State, the Agreement on Border Issues, the Agreement on Trade and Trade-related Issues, the Agreement on a Framework for Cooperation on Central Banking Issues, the Framework Agreement to Facilitate Payment of Post-service Benefits, the Agreement on Certain Economic Matters, Division of Assets and Liabilities, Arrears and Claims and Joint Approach to the International Community, the Agreement Concerning Oil and Related Economic Matters, and the overall Cooperation Agreement. In particular, Council further notes with concern the delay in the implementation of critical security arrangements entrusted to the Joint Political and Security Mechanism (JPSM);

5. Reminds the Governments of the Republic of Sudan and the Republic of South Sudan of their responsibilities to implement the above-mentioned Agreements without delay, in a comprehensive and coordinated manner. In this regard, Council looks forward to the meeting of the JPSM scheduled for 15 December 2012, and urges the Co-Chairs of the JPSM to work in a constructive and cooperative spirit to implement the commitments of the two countries under the 27 September 2012 Agreements;

6. Takes note of the steps taken to establish the Abyei Area Administration and Executive Council, consistent with the provisions of the 21 June 2011 Agreement on Temporary Arrangements for the Administration and Security of Abyei Area, namely the provision by Sudan of a list of nominees for the Administration and Council and South Sudan’s acceptance to consider this list, and urges them to move forward in the establishment of these two bodies;

7. Welcomes the willingness of the President of the Republic of South Sudan and the President of the Republic of Sudan to meet, and encourages the convening of a Summit in the shortest possible time, in order to remove bottlenecks on all pending issues, including those relating to Abyei and the border;

8. Reiterates its acceptance of the Proposal for the resolution of the Final Status of Abyei Area, submitted by the AUHIP on 27 September 2012, as a fair, equitable and workable solution to the dispute between the two countries, which takes into account existing Agreements entered into by the Parties, as well as the needs and interests of the communities on the ground. Council notes that the deadline for the Parties to negotiate on the basis of this Proposal expired on 5 December 2012, but that no negotiations had taken place by that time. Council urgently calls for the anticipated negotiations to take place, and eagerly awaits the outcomes of the Summit Meeting referred to above. Council further refers the determination on the issue of the Final Status of Abyei to its meeting at the level of the Heads of State and Government, to be held on the margins of the 21st Ordinary Session of the Assembly of the Union, in Addis Ababa, in January 2013;

9. Welcomes the engagement of the Parties with the Team of Experts on the resolution of the Five Disputed Border Areas in accordance with its previous decision, and urges the Parties to continue their cooperation with the Experts in order to expedite the resolution of this issue. Council however notes that the Parties have not completed their negotiations on the process for the resolution of the Five Disputed Areas, as well as the Claimed Border Areas. Council calls upon the Parties to resolve these outstanding issues, and defers its decision on these matters pending the outcomes of the Summit Meeting between the President of the Republic of Sudan and the President of the Republic of South Sudan;

10. Expresses profound regret that the Government of Sudan and the Sudan People’s Liberation Movement-North (SPLM-N) have failed to convene direct negotiations, despite the repeated calls upon them to do so. Council notes with concern the recent escalation of the conflict in the “Two Areas” of Blue Nile and Southern Kordofan, and reiterates that there can be no military solution to this conflict and that efforts towards a political solution should be delayed no longer. Council repeats its urging that direct political talks should begin immediately, facilitated by the AUHIP with the support of the IGAD Chair, on the basis of the 28 June 2011 Framework Agreement Between the Government of Sudan and the Sudan People’s Liberation Movement-North on Political Partnership between NCP and SPLMN, taking into account the Draft Agreement submitted to them by the AUHIP, on 17 September 2012;

11. Recalls that communiqués PSC/MIN/COMM/3.(CCCXIX), PSC/PR/COMM.(CCCXXIX) and PSC/MIN/COMM/1(CCCXXXIX) of its 319th, 329th and 339th meetings called on the Parties immediately to implement the Joint Proposal for Access to Provide and Deliver Humanitarian Assistance to War-affected Civilians in South Kordofan and Blue Nile States. Council expresses its serious concern that, despite the signing by both Parties, on 4 and 5 August 2012, of the Memoranda of Understanding on the modalities for the delivery of humanitarian assistance to affected populations, there has been, to date, no orderly delivery of any humanitarian assistance in the SPLM-N held areas;

12. Reiterates its call to the Parties to permit and facilitate immediate humanitarian access to the affected populations of the Two Areas, in accordance with the Joint Proposal and the Memoranda of Understanding. To this end, Council urges the Parties to agree to an immediate cessation of hostilities as the first priority during their direct negotiations, as referred to above, in order to facilitate the urgent and long-overdue delivery of humanitarian assistance to the affected populations;

13. Requests the AUHIP to submit a final report to Council on all outstanding issues arising from the 24 April 2012 Communiqué and Roadmap, for its meeting planned to take place on the margins of the forthcoming Ordinary Session of the Assembly of the Union, in January 2013;

14. Recalls paragraph 21 of Communiqué PSC/MIN/COMM/1(CCXXXIX), in which Council requested the AUHIP to submit a comprehensive narrative and analytical report covering all matters falling within its mandate and scope of work since it was established in October 2009, to a meeting of Council to be held at the level of Heads of State and Government, in January 2013. In this respect, Council extends this deadline by an additional six months;

15. Decides to remain actively seized of the matter.

MONROVIA, Liberia, December 17, 2012/African Press Organization (APO)/ — On November 19, 2012, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Liberia.1

Background

Since the last Article IV consultation concluded in December 2010, prudent fiscal policy and strengthened public financial management have contributed to a near doubling of government revenue, resumption of direct budget support, and initiation of significant infrastructure development projects without accumulation of expenditure arrears. Monetary policy has focused on accumulating reserves, which sizably outperformed expectations during the period. Financial policies focused on strengthening the banking system and promoting intermediation.

Economic activity remains robust in 2012, with inflation moderating at or near single digits and the exchange rate is stable. Following resumption of iron ore exports in 2011—for the first time since the end of the civil war—real GDP growth is estimated at close to 9 percent in 2012, driven by mining, construction, and services albeit growth in agriculture and forestry remains sluggish. Foreign direct investment is increasing. Following spikes in food and fuel prices in 2011 and early 2012, U.S. dollar-denominated inflation declined to under 4 percent by end-June and is expected to remain in single digits through end-2012. The trade deficit has widened since 2010 reflecting concession-financed capital imports and rising food and fuel import prices which more than offset the increase in iron ore exports. Reserve coverage has remained relatively stable at about 2½ months of imports.

While medium-term prospects are bright, notably in the commodity export sectors,

broad-based growth is necessary to reduce high levels of underemployment and widespread poverty. To this end, the authorities’ draft second poverty reduction strategy focuses on achieving accelerated broad-based growth through scaling up of investment in infrastructure and human capital, raising agricultural productivity, employment creation, especially youth employment, and deepening financial markets. To support this strategy, efforts are needed to create fiscal space for higher capital spending by containing personnel costs and other current transfers, while future commodity revenues would need to be channeled to infrastructure financing and capacity building to enhance competitiveness. Financial sector development and improving access to credit would help support the private sector. Further reforms are necessary to improve public financial management, governance, and the business environment.

Executive Board Assessment

Executive Directors welcomed Liberia’s progress in improving macroeconomic and social conditions under the recently concluded Extended Credit Facility (ECF) arrangement. Directors noted that the economic outlook is favorable, but that daunting policy challenges remain, including safeguarding macroeconomic stability and strengthening the foundation for broad-based and lasting growth.

Directors emphasized the need to expand fiscal space for infrastructure and social spending. They considered that the FY2012/13 budget is appropriately focused on increasing public investment, but called for additional efforts to contain current spending beyond the recently adopted rule for public sector wages.

More broadly, Directors highlighted the need to strengthen public financial management and address capacity constraints that hamper capital spending. They stressed the importance of keeping external borrowing within sustainable levels, seeking external concessional financing, and strengthening the management of foreign aid. Directors also recommended putting in place a framework for managing natural resource revenue, which would bolster Liberia’s ability to cope with export price volatility and improve governance.

Directors supported efforts to strengthen the implementation of monetary policy. They welcomed the authorities’ pursuit of de-dollarization and their plans to improve liquidity management through the issuance of treasury bills. Directors also saw merit in increasing official foreign exchange reserves as a buffer against shocks.

Welcoming the authorities’ progress in implementing risk-based supervision and improving the payments system, Directors highlighted the importance of further promoting financial intermediation. Directors expressed concerns, however, about elevated non-performing loans in the banking system, and called for heightened vigilance by the authorities.

Directors agreed that accelerated structural reforms on a broad front remain essential to raise Liberia’s growth path and reduce poverty. Steps to improve the business climate and lay the groundwork for private sector development and employment remain a top policy priority.

Liberia: Selected Economic and Financial Indicators, 2009–13

2009 2010 2011 2012 2013

Proj. Proj.

(Annual percentage change, unless otherwise indicated)

National account and prices

Real GDP

5.3 6.1 8.2 8.9 8.3

GDP deflator (US dollars)

-1.7 5.4 10.6 5.0 1.1

Nominal GDP (millions of US dollars)

1,155.1 1,291.9 1,545.4 1,767.5 1,934.4

Consumer prices (annual average)

7.4 7.3 8.5 6.6 5.6

External sector

Exports, f.o.b.

-39.7 40.4 77.0 23.8 14.3

Imports, f.o.b.

-19.0 17.4 49.9 33.3 16.1

Terms of trade (deterioration -)

-9.2 76.8 16.1 -24.1 -2.5

Average exchange rate (local currency per U.S. dollar)

68.3 71.4 72.2 … …

Gross official reserves (millions of US dollars)

312.2 391.4 425.1 452.0 462.0

Import coverage of reserves (months) 1

3.2 3.5 2.9 2.2 2.1

Central government operations 2

Total revenue and grants

13.5 22.6 30.2 23.0 9.7

Of which: total revenue

5.2 30.2 21.7 29.3 6.5

Total expenditure and net lending

26.3 13.4 35.7 34.3 19.9

Of which: current expenditure

24.2 16.4 23.5 44.3 5.9

capital expenditure

41.5 -6.2 131.7 -7.8 111.8

Money and credit

Reserve money

12.4 33.9 49.7 13.8 12.1

Broad money (M2) 3

36.7 35.4 34.6 17.4 12.6

Credit to private sector

31.5 40.1 32.4 14.4 9.4

(Percent of GDP)

External sector

Current account balance

(including official grants)

-28.8 -32.8 -34.1 -52.4 -62.4

(excluding official grants)

-148.2 -152.0 -149.3 -131.5 -97.4

Trade balance

-36.4 -35.5 -40.7 -49.5 -53.0

Exports, f.o.b.

13.3 16.7 24.6 26.7 27.9

Imports, f.o.b.

-49.7 -52.2 -65.4 -76.2 -80.9

Central government operations 2

Total revenue and grants

20.7 23.5 26.4 27.8 27.3

Of which: total revenue

18.6 22.5 23.6 26.1 24.9

Total expenditure and net lending

21.9 23.1 27.0 31.0 33.3

Of which: current expenditure

18.9 20.5 21.8 27.0 25.6

capital expenditure

3.0 2.6 5.2 4.1 7.8

Overall fiscal balance (including grants)

-1.2 0.5 -0.6 -3.2 -6.0

Public external debt

145.4 8.8 10.7 12.1 14.8

Sources: Liberian authorities and IMF staff estimates and projections.

1 Excluding imputed UN military services imports.

2 Fiscal year ending in June on a cash basis (debt service payments shown after all debt relief).

3 Defined as Liberian currency outside banks plus demand, time, and savings deposits in Liberian and US dollars.

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. 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.

DAKAR, Senegal, December 17, 2012/African Press Organization (APO)/ — On December 10, 2012, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Senegal.1

Background

Senegal’s growth has been sluggish in recent years, with implications for poverty reduction. Average growth was relatively strong in 1995–2005 (4.5 percent) and accompanied by a large drop in poverty incidence (from 68 to 48 percent). Due partly to a series of exogenous and internal shocks (i.e., food and fuel global prices, global financial and economic crisis, and more recently, the electricity sector crisis and drought in the Sahel), growth decreased to an average of 3.3 percent in 2006–2011. As a result, poverty incidence barely decreased during this period and still stood at 47 percent in 2011. Wide disparities exist between rural areas, where poverty incidence is higher than the national average (at 57 percent), and urban areas (at 33 percent).

Fiscal deficits and debt ratios have increased in recent years. The fiscal deficit, which was below 4 percent of Gross Domestic Product (GDP) in 2007, stood at 6.7 percent of GDP in 2011. Higher deficits were justified to a large extent by the response to successive shocks. Meanwhile, the public debt-to-GDP ratio has increased continuously and is expected to exceed 45 percent in 2012.

After a tense campaign, President Sall was elected by a large majority and the governing coalition secured a broad majority at the legislative elections in July 2012. With a strong popular mandate, the government is now facing the challenge of accelerating reforms and meeting people’s high expectations.

The authorities are addressing Senegal’s macroeconomic challenges in the context of an economic program supported by the IMF’s Policy Support Instrument (PSI) approved in December 2010 (see Press Release No. 10/469). The key objectives of the program are: (i) pursuing a prudent fiscal and debt policy and improving expenditure quality so as to maintain macroeconomic stability and lay the groundwork for higher, sustainable growth; (ii) raising revenue to create more fiscal space for priority spending, including additional infrastructure investment; (iii) further strengthening public financial management and governance to enhance fiscal transparency, budget planning and execution, improve the productivity of public expenditure, and reduce budgetary risks; and (iv) stimulating private sector development through structural reforms, particularly in the energy and financial sectors, and other reforms related to the business climate.

Executive Board Assessment

Directors commended Senegal’s satisfactory program implementation despite the challenging internal and external environments. Although a moderate pickup in growth is expected in the near term, the economy remains exposed to substantial risks. Directors welcomed the authorities’ continued commitment to their program to ensure macroeconomic stability, strengthen the economy’s resilience to shocks, foster higher and sustainable growth, and reduce poverty.

Directors noted that, while Senegal still faces a low risk of debt distress, high fiscal deficits and rising debt ratios need to be addressed. They welcomed the authorities’ commitment to keep the deficit under 6 percent in 2012 and their determination to reduce the deficit further in the medium term to levels that are consistent with fiscal and debt sustainability. Directors also highlighted the importance of stronger debt management. They welcomed the recently finalized medium-term debt strategy, and encouraged the authorities to rely primarily on concessional financing.

Directors underscored the need to improve public financial management and government spending efficiency and transparency. They commended ongoing efforts to reduce the cost of running government, streamline public agencies, and rationalize expenditure in key sectors. Directors stressed that phasing out the costly and poorly targeted energy price subsidies while strengthening social safety nets is a priority. Sustained progress in all these areas will be necessary to meet the country’s fiscal objectives and make room for critical social and development needs.

Directors noted that the financial sector is generally robust. However, the rising level of NPLs and concentration of lending need to be closely monitored.

To move Senegal to a path of higher, sustainable, and inclusive growth, Directors stressed the need to address infrastructure gaps, remove inefficiencies in government operations, and improve the business climate. They welcomed the tax and customs reforms that are underway and called for timely implementation of the new energy investments and restructuring of SENELEC, the national power utility. Directors also encouraged the authorities to deepen and strengthen the financial system to support their growth strategy.

Senegal: Selected Economic and Financial Indicators, 2011–17

2011 2012 2012 2013 2014 2015 2016 2017

EBS/ 12/85 Proj. Proj. Proj. Proj. Proj. Proj.

(Annual percentage change)

National income and prices

GDP at constant prices

2.6 3.9 3.7 4.3 4.8 5.0 5.1 5.2

Of which: nonagriculture GDP

4.8 3.2 2.9 4.0 4.8 5.1 5.2 5.3

GDP deflator

4.3 2.2 2.2 2.4 2.4 2.5 2.4 2.5

Consumer prices

Annual average

3.4 2.5 1.5 1.6 1.8 1.8 1.8 1.8

End of period

2.7 2.2 1.6 1.8 1.8 1.8 1.8 1.8

External sector

Exports, f.o.b. (CFA francs)

7.1 3.2 4.4 6.9 3.6 5.4 8.4 9.2

Imports, f.o.b. (CFA francs)

8.9 9.0 9.5 4.2 3.4 3.3 6.1 7.0

Export volume

-2.7 0.4 -1.0 4.4 4.9 5.5 6.1 6.4

Import volume

4.3 4.7 3.4 3.2 4.2 4.4 4.5 4.8

Terms of trade (“–” = deterioration)

5.6 -0.4 -0.4 1.7 -0.7 0.7 0.6 0.5

Nominal effective exchange rate

1.4 … … … … … … …

Real effective exchange rate

1.1 … … … … … … …

(Changes in percent of beginning-of-year broad money, unless otherwise indicated)

Broad money

6.7 7.5 6.0 7.4

Net domestic assets

9.0 7.6 10.4 7.4 … … … …

Domestic credit

10.2 7.0 9.5 7.0 … … … …

Credit to the government (net)

-2.0 1.7 1.8 1.3 … … … …

Credit to the economy (percentage growth)

18.8 5.6 10.6 7.6 … … … …

(Percent of GDP, unless otherwise indicated)

Revenue

20.2 20.7 20.9 20.8 20.9 20.9 20.6 20.7

Grants

2.2 2.7 2.9 2.7 2.7 2.7 2.6 2.6

Total expenditure and net lending

29.0 29.8 29.7 28.4 27.9 27.5 26.9 26.7

Overall fiscal surplus (+) or deficit (–)

Payment order basis, excluding grants

-8.9 -9.1 -8.8 -7.6 -7.0 -6.6 -6.3 -6.0

Payment order basis, including grants

-6.7 -6.4 -5.9 -4.9 -4.3 -3.9 -3.7 -3.5

Primary fiscal balance ¹

-5.2 -4.9 -4.3 -3.1 -2.7 -2.4 -2.1 -1.9

Gross domestic investment

28.7 30.8 30.3 30.1 30.2 30.5 30.5 30.5

Government

10.5 12.6 12.1 11.8 11.8 11.9 11.7 11.6

Nongovernment

18.2 18.2 18.2 18.3 18.4 18.6 18.7 18.9

Gross domestic savings

12.5 12.8 12.8 13.5 14.3 15.5 16.4 16.9

Government

5.4 7.7 7.9 8.8 9.1 9.5 9.6 9.8

Nongovernment

7.1 5.1 4.9 4.7 5.3 5.9 6.7 7.1

Gross national savings

22.6 22.5 22.7 23.0 23.5 24.2 24.5 24.9

External current account balance

Including current official transfers

-6.1 -8.3 -7.6 -7.1 -6.7 -6.3 -5.9 -5.7

Excluding current official transfers

-6.8 -8.9 -8.4 -7.8 -7.4 -7.0 -6.5 -6.3

Total public debt

40.0 44.9 45.0 46.8 48.1 48.7 49.0 49.0

Central government domestic debt

11.3 12.2 12.3 12.2 12.7 12.9 13.0 12.8

External public debt

28.8 32.6 32.7 34.6 35.4 35.8 36.1 36.2

External public debt service

Percent of exports

14.0 7.4 7.3 7.6 6.8 7.4 7.2 7.0

Percent of government revenue

17.2 8.7 8.4 8.7 7.5 8.1 8.0 7.7

Gross domestic product (CFAF billions)

6,818 7,243 7,225 7,718 8,286 8,921 9,600 10,351

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

¹ Total revenue and grants minus total expenditure and net lending, excluding interest expenditure

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. 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.

BUJUMBURA, Burundi, December 17, 2012/African Press Organization (APO)/ — A mission from the International Monetary Fund (IMF), led by Mr. Oral Williams, visited Bujumbura from December 3–14, 2012 to conduct the second review of the government’s economic and financial program supported by the IMF under the Extended Credit Facility (ECF). The mission met with the President of the Senate, Gabriel Ntsizerana, the Minister of Finance, Tabu Manirakiza; the Governor of the Central Bank, Jean Ciza, and other high level government officials. The mission had constructive discussions with members of the donor community, the private sector, and civil society.

At the end of the mission, Mr. Williams, IMF Mission Chief for Burundi issued the following statement:

“Performance under the ECF-supported program has been broadly satisfactory, despite very difficult circumstances. All quantitative performance criteria for September 2012 were observed, and structural reforms are on track. Notably, some progress has been made toward controlling discretionary exemptions, the reorganization of the Ministry of Finance, and the adoption of a decree on budget governance.

“The economy was negatively affected by the food and fuel shocks and lower-than-expected aid inflows, resulting in a downward revision in economic growth to about 4 percent in 2012. Tighter liquidity conditions and the temporary removal of taxes on food products contributed to a sharp deceleration in headline inflation (year-on-year), which declined from a peak of about 25 percent in March to 11.7 percent at end-November. Looking ahead to 2013, the economy will be subject to continued risks associated with an uncertain external environment and the unpredictability of donor inflows. Economic growth is expected to rise to 4.5 percent and inflation to decline further to about 9 percent owing to lower international food and fuel prices.

“The mission reached understandings ad referendum with the authorities on key policy issues. Discussions focused mainly on the 2013 budget and the policy mix required to bring inflation down to single digits. The mission emphasized the need to exercise greater control over spending commitments in line with available financing to avoid the accumulation of arrears. The mission also encouraged ongoing efforts in revenue mobilization to cover a greater share of current spending in the face of uncertainty in aid inflows and to reduce financing pressures on the domestic market. The implementation of the public financial management strategy is key to consolidating reforms aimed at improving transparency and accountability. Acknowledging the need for more spending in the priority sectors, the program incorporates a contingency plan to increase spending if additional concessional financing becomes available in the wake of the recent donors conference.

“The mission confirmed that the IMF will continue to work with Burundi to address these challenges with the aim of allowing the IMF’s Executive Board to consider the second review of the ECF in February 2012. The IMF team wishes to thank the authorities for their warm hospitality and for the constructive and open dialogue on policy issues.”

ADDIS ABABA, Ethiopia, December 17, 2012/African Press Organization (APO)/ — Dr. Nkosazana Dlamini Zuma, African Union Commission’s Chairperson, received on the 9th December, 2012, the international Renaissance woman of the Year Award 2012, during the annual celebratory event organized in Florence, Italy, by the Palazzo Strozzi Foundation.

The Renaissance Awards, established in 2011 by the Palazzo Strozzi Foundation, aimed at highlighting the ideals of openness, mutual understanding, philanthropy and progress and call upon all people to rediscover the humanistic values of today’s societies.

The choice of Dr. Nkosazana Dlamini Zuma by the member of the committee formed by prominent University professors constitutes a particular recognition of the impact she made in social and human causes and global understanding as a civil servant over the course of her life.

Dr. Dlamini Zuma, the first woman elected to chair the African Union Commission, was a politician serving as a Foreign Minister, Interior Minister and Health Minister among others. She was, for decades, an activist in the Nelson Mandel’s underground movement, in her hometown South Africa.

“Dr Dlamini Zuma’s action in fighting poverty and diseases; promoting human rights and gender equality deserves this particular honor”, said the AUC Deputy Chairperson, Erastus Mwencha. Furthermore, he added: This international award recognises and honors an exceptional African woman and the role she continues to play for the benefit of all African citizens as Chairperson of the African Union Commission.”