Category: APO-OPA

GENEVA, Switzerland, December 13, 2012/African Press Organization (APO)/ — The United Nations Independent Expert on foreign debt and human rights, Cephas Lumina, urged world governments not allow ‘vulture funds’ to paralyze debt relief for heavily indebted countries, while expressing his concern about the continued impounding of the Argentinian navy training ship ‘ARA Libertad’.

The Argentinian naval vessel has been impounded since 2 October 2012 in the port of Tema in Ghana on the basis of a court order obtained by the ‘vulture fund’ NML Capital Limited, a Cayman Islands-based subsidiary of the US investment firm Elliot Capital Management. The International Tribunal for the Law of the Sea is expected to announce a decision on the case between Argentina and Ghana on 15 December 2012.

“‘Vulture funds,’ such as NML Capital, should not be allowed to purchase debts of distressed companies or sovereign States on the secondary market, for a sum far less than the face value of the debt obligation and then seek repayment of the nominal full face value of the debt together with interest, penalties and legal costs or impound assets of heavily indebted countries in an attempt to force repayment,” Mr. Lumina stressed.

“From a human rights perspective,” the UN expert said, “reduced debt burdens and increased fiscal capacity contribute to the creation of the conditions necessary for the realization of all human rights, particularly economic, social and cultural rights.”

NML Capital has been suing Argentina on the basis of debt arising from the country’s defaulted bond swaps in 2005 and 2010. On 11 October 2011, the Commercial Division of the Accra High Court upheld the restraining orders placed on the Argentine naval vessel. NML Capital was only willing to release the frigate against a payment of USD 20 million in Argentinian bonds, and demands that Argentina settles USD 370 million of its debt.

The firm bought bonds from the heavily indebted Argentinian Government in 2000, a year before the country’s USD 100 billion sovereign default. “While the majority of creditors accepted a repayment at a lower nominal value (30 per cent) of sovereign debt, enabling the country to recover economically, NML Capital refused to participate in the debt restructuring offered by Argentina,” Mr. Lumina noted.

In 2001, the country successfully reduced its public debt from about 160 per cent of Gross Domestic Product (GDP). Argentina’s total public debt currently stands at around 40 per cent of the country’s GDP.

The UN Guiding Principles* on Foreign Debt and Human Rights, endorsed by the Human Rights Council in June 2012, underscore that States, international financial institutions and private companies have an obligation to respect human rights, including the duty to refrain from formulating, adopting, funding, and implementing policies and programmes that directly or indirectly contravene the enjoyment of human rights.

According to the principles, “loan agreements should impose clear restrictions on the sale or assignment of debts to third parties by creditors without the prior informed consent of the Borrower State concerned. Every effort must be directed towards achieving a negotiated settlement between the creditor and the debtor.” They also state that “creditors should not sell sovereign debt on the secondary market to creditors that have previously refused to participate in agreed debt restructuring.”

“Successful debt restructuring for deeply indebted countries will be made impossible if vulture funds are allowed to paralyse debt relief,” Mr. Lumina warned, recalling that “NML Capital already won a case against Peru in 2000, recovering 400% of what the fund paid for the country’s distressed debt.”

The UN Independent Expert on foreign debt and human rights urged States to follow the example of the Channel Island of Jersey and the United Kingdom. Both recently adopted legislation to prevent vulture funds from pursuing excessive claims against heavily indebted countries before their national courts.

(*) Check the UN Guiding Principles on Foreign Debt and Human Rights: http://www.ohchr.org/EN/Issues/Development/IEDebt/Pages/GuidingPrinciples.aspx

ADDIS ABABA, Ethiopia, December 13, 2012/African Press Organization (APO)/ — The Peace and Security Council of the African Union (AU), at its 347th meeting, held as an open session on 12 December2012, was briefed by Advocate Sidiki Kaba, Honorary Pre…

ADDIS ABABA, Ethiopia, December 13, 2012/African Press Organization (APO)/ — The Chairperson of the Commission of the African Union (AU), Dr. Nkosazana Dlamini-Zuma, has been following with great concern the situation in the Central African Republic (CAR), following the armed attacks, launched on Monday, 10 December 2012, by a faction of the Union of Democratic Forces for Unity (UFDR) supporting Michel Djotodia against the cities of Ndélé (in the north-central), as well as Sam Ouandja and Ouadda (north-east) of the CAR.

The Chairperson of the Commission strongly condemns these attacks, which constitute a flagrant violation of the Libreville Comprehensive Peace Agreement (CPA) and undermine the peace building efforts in the CAR. She urges the UFDR faction behind these attacks to withdraw immediately and unconditionally from all localities it occupies, and to cease all armed action. She urges further the group to join the ongoing dialogue process and to actively participate in the disarmament, demobilization and reintegration (DDR) program in the north eastern region of the country. More generally, the Chairperson of the Commission calls on the Government and all politico-military groups active on the ground to effectively implement the various Agreements they have concluded, including the CPA.

The Chairperson of the Commission recalls that, during its 345th meeting held on 6 December 2012, the Peace and Security Council (PSC) warned all those bent on undermining the process aimed at consolidating peace, security and stability in the CAR, and stressed that they would be held accountable for their acts. Against this background, the Commission will soon submit recommendations on possible sanctions against groups, including their leaders, who are undermining the ongoing efforts in the CAR.

EL FASHER (DARFUR), Sudan, December 13, 2012/African Press Organization (APO)/ — Protection of civilians including local mediation, access, security of UNAMID personnel, peace process, Yellow Fever, early recovery and quick impact projects (QIPs) were discussed during a two-day visit which concluded yesterday by the African Union – United Nations Mission in Darfur (UNAMID) Acting Joint Special Representative (AJSR) and Joint Chief Mediator a.i., Aïchatou Mindaoudou to East and South Darfur states.

The visit, which began on 10 December, provided the AJSR with the opportunity to engage with community leaders, native administration and government officials to explore new avenues for strengthening partnerships at the operational level between UNAMID and all stakeholders, promoting peace and protecting civilians, and supporting development as a key element to addressing some of the root causes of the conflict in the region.

In El Deain, the capital of the State of East Darfur, the UNAMID Acting Head held talks with Deputy Wali (Governor) Abdulmajeed El Zaier, where they discussed the implementation of the Doha Document for Peace in Darfur, UNAMID’s framework for the protection of civilians (PoC) and the Mission’s efforts to support local mediation initiatives.

“The Cooperation with Government authorities and the community is instrumental to the successful implementation of UNAMID’s protection of civilian’s strategy, particularly on access, preventive measures and rapid response,” said Ms. Mindaoudou in a meeting with the Deputy Wali of East Darfur.

The AJSR also attended a ceremony, held at El Daein Um- Durman University, marking the 16 Days of activism against gender-based violence. Addressing more than 90 women who took part in the event, Ms. Mindaoudou said “This campaign recalls our shared responsibility to discuss, identify community strategies and work together for the advancement of women’s human rights, particularly their right to be heard and to shape decisions that affect their lives and the communities they live in.”

“UNAMID is firmly committed to continue to cooperate with national mechanisms to create safe spaces where women and girls are free from fear of violence,” added the Acting UNAMID Chief.

In Nyala, the AJSR met with South Darfur Wali Hamad Ismail Hamad where they discussed Yellow Fever, issues of access of UNAMID and UN to all parts of Darfur, particularly eastern Jebel Marra, safety and security of UNAMID personnel and cooperation between the State and UNAMID in implementing the Mission’s PoC strategy.

As a result, it was agreed to continue strengthening cooperation and dialogue between the Mission and the State authorities in order to achieve lasting peace in the region.

The AJSR also used the occasion to visit some of the facilities supported by UNAMID through QIPs in Nyala Central Prison. The facilities include a water tank, women’s dormitory and maternity rooms, and kindergarten. The projects represent some of the 47 QIPs that UNAMID is undertaking in support of the development efforts in the South State.

Last month, the AJSR made similar visits to West, Central and North Darfur, in her continued efforts to engage with all Darfuri stakeholders in protecting civilians and promoting the peace process.

LIBREVILLE, Gabon, December 13, 2012/African Press Organization (APO)/ — A mission from the International Monetary Fund (IMF) led by Mr. Joël Toujas-Bernaté visited Libreville from November 28 to December 11, 2012 to conduct the Article IV consultation discussions1 for 2012.

The mission had constructive meetings with Mr. Luc Oyoubi, Minister of Economy, Employment, and Sustainable Development; Mrs. Christiane Rose Ossouka Raponda, Minister of Budget, Public Accounts, and Civil Service; Mr. Régis Immongault, Minister of Industry and Mines; Members of Parliament on the Finance Committee of the National Assembly; and other senior officials. The mission also exchanged views with representatives of the private sector, civil society, and donors.

At the conclusion of the mission, Mr. Toujas-Bernaté made the following statement:

“Gabon is facing major economic and social development challenges. Although it has abundant natural resources that have raised the average per capita income to the level of middle-income countries, poverty and unemployment rates remain high, and the human development indicators are still similar to those of low-income countries. The Gabonese economy is still highly dependent on oil, which makes it vulnerable to the volatility of international prices. To address these challenges, in 2009 the new Gabonese authorities launched a wide-ranging development plan, The Emerging Gabon Strategic Plan, aimed at making Gabon a diversified emerging economy by 2025.

“The launch of the investment plan for infrastructure and the preparations for African Cup of nations (CAN 2012) contributed to the sustained growth of real GDP in 2011, estimated at 6.7 percent, despite a fall in oil production. High oil and manganese prices made it possible to record a large surplus on the external current account in 2011. By contrast, the nonoil primary fiscal deficit widened considerably in 2011–12, driven by the increase in public investment. It is projected that real GDP will rise by 6 to 7 percent in 2012, with the construction and public works, transportation, and other services sectors benefiting from the high level of public investment. The average annual inflation rate is expected to remain moderate at about 2.5 percent.

“Forecasts indicate that real GDP will grow by about 6-7 percent in 2013, supported by mining, timber processing business, and public investment. The main risk weighing on the country’s economic outlook is that of a drop in oil and manganese prices, as these products represent about 90 percent of all goods exported and 45 percent of nominal GDP.

“Given the broad scope of the authorities’ development objectives, the Article IV consultation discussions addressed the following issues: (i) to ensure the sustainability of public finances and the external accounts, taking into account the possible volatility of oil revenue; and (ii) to achieve strong and inclusive economic growth.

“The mission stressed the importance of ensuring efficient implementation of the wide-ranging public investment plan, aimed at removing the constraints related to the lack of infrastructure currently hampering private investment. To that end, the authorities should prepare annual budgets within a credible and sustainable framework, with a view to safeguarding macroeconomic stability in view of the risks of volatility in fiscal revenue. Current expenditure, which grew considerably in recent years, in particular the wage bill and spending on subsidies, should be controlled more effectively. The tax base for nonoil fiscal resources should be broadened at the same time as steps are taken to prevent the spread of tax exemptions. The mission also urged the authorities to pursue their ongoing efforts to improve the evaluation, selection, and monitoring of investment projects as well as the budgeting of their operating and maintenance costs. The ongoing reform of public financial management will help improve expenditure quality and free up additional resources for social spending and growth stimulation.

“The mission supports the authorities’ decision to focus their efforts on improving the business climate and human capital, without which the objectives of the development plan will be hard to achieve. The mission recommends that the authorities quickly take decisive actions to remove a number of obstacles to private investment, including by simplifying the administrative procedures for enterprise creation. An effective employment policy will be necessary for matching labor supply and demand and for reducing unemployment, including by improving vocational training. Reforms should be geared toward developing the financial sector, so that it can fully contribute to the financing of Gabon’s development.

“The mission confirmed that the IMF will continue to work with the Gabonese authorities to address these challenges. The Executive Board of the IMF is expected to consider the staff report on the 2012 Article IV consultation in February 2013. The mission wishes to thank the authorities for their warm hospitality as well as for their very close and constructive cooperation.”

1Under 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 authorities.

LONDON, United-Kingdom, December 13, 2012/African Press Organization (APO)/ — Sudan must end its violent repression of demonstrations, Amnesty International said in the wake of a week of unrest that saw many protesters arrested or injured.

Nationwi…

LUSAKA, Zambia, December 12, 2012/African Press Organization (APO)/ — The World Bank announced today that Zambia’s economy is expected to grow by 7.3 percent in 2012, slightly higher than the 6.8 percent growth rate of 2011. The economy has seen robust growth during 2012 in construction, transport and communication services, manufacturing, and agriculture, even as mining is expected to contract slightly.

The new World Bank report titled “Zambia Economic Brief: Recent Economic Developments and the State of Basic Human Opportunities for Children” notes Zambia’s growth performance in 2012 will keep it in the company of fastest-growing countries in sub-Saharan Africa (SSA), including both mineral and non-mineral producing countries. In October, the Bank said approximately one third of SSA countries would exceed growth rates of 6% (excluding South Africa), but that the region as a whole, buoyed by new mineral exports, would grow by 4.8 percent in 2012.

“Medium-term economic prospects for Zambia remain good though dependent upon continued high mineral prices,” says Kundhavi Kadiresan, World Bank Country Director for Zambia. The World Bank estimates GDP growth is expected to average above 7 percent over the 2013-14 forecast horizon,” concludes Kadiresan.

Construction growth in the recent years has accelerated in response to demand coming from rising urban incomes and a marked pick up in investment in mining and roads, the Bank notes. In addition, rapid expansion in transport services in Zambia is also a response to strong growth in demand from other sectors of the economy. Telecommunication services continue to grow due to an expanding customer base.

The report notes that with high growth, government revenues have also grown, allowing the government to ramp up public investment in roads and energy which if implemented efficiently can propel the country’s growth further.

The World Bank Country Director, Kundhavi Kadiresan said that this is the first Economic Brief the World Bank is launching. Twice per year, the Bank will produce a series of short economic updates that are expected to support evidence-based policy debate in Zambia.

High Growth amidst High Poverty and Inequality

Despite strong economic growth in the last decade, Kadiresancautioned that there was very little progress in reducing poverty, particularly in the latter half of the previous decade. This was primarily because of two reasons.

“First, the growth – driven mainly by industries such as construction, mining, and transport and communication – did very little to create new jobs and expand economic opportunities beyond the small fraction of the country’s labor force already employed in these industries,” said Kadiresan. “Second, the urban-centered nature of the growth also failed to generate enough opportunities for roughly two-thirds of the Zambian population who live in rural areas, depend on agriculture and have seen incomes remain largely stagnant over the last decade,” concludes Kadiresan

Moreover, the concentration of economic growth in particular sectors and regions manifests itself in the persistent high levels of inequality in Zambia. The Bank notes that policies that boost human capital of children and youth could promote growth and reduce inequality in the long run.

For its part, The Government of Zambia welcomes the World Bank’s first ever economic update for the country, noting the analysis can better help the current administration to focus on core issues hampering poverty reduction and inequality, now that the economy is stabilized and growing steadily.

“We welcome these reflections as they will provide an avenue for the country to tap into the Bank’s experience from its global reach and vast intellectual resources in dealing with some of the pertinent challenges that we face here in Zambia,” said Alexander Chikwanda, Zambia Minister of Finance and National Planning.

The report argues that pre-determined circumstances such as gender, ethnicity, birthplace, or family income should not determine the opportunities available to children to receive adequate education; a healthy start in the first few years of life; and safe, stable, and stimulating conditions for development.

“One of the primary findings of this report is that opportunities for children in Zambia in education, health and infrastructure services are mostly low,” says Praveen Kumar, World Bank Lead Economist for Zambia. “While school attendance has high coverage and does not depend much on circumstances, finishing primary school on time and quality of education depend strongly so. Opportunities for health and nutrition appear to be universally low in Zambia and have a high degree of inequality. Access to basic amenities such as drinking water and electricity is extremely low, and inequality extremely high,” concludes Kumar.

The report finds that some circumstances such as the wealth of households, location in terms of rural versus urban or the province of residence and education of the household head have significant effect on basic opportunities available to the children.

“The findings of the World Bank from their analysis of the thematic topic for this brief, “the basic human opportunities for children in Zambia”, have significant policy implications. The link being established between a child’s circumstances and access to basic services, and the likely conditions for that child in adult life is something we all need to deeply reflect upon,” concluded Minister Chikwanda at the December 10, 2012 launch of the Economic Brief in Lusaka.

The report develops an index, called Human Opportunity Index, to measure the level of opportunities available to children in Zambia.

“Over the past ten years, the technology for poverty reduction has changed dramatically. Countries now have the tools and the information to reach out and help the most disadvantaged amongst us,” says Marcelo Guigale, Director for Poverty Reduction & Economic Management, Africa Region, World Bank. “Few of those new tools are as promising and as powerful as the Human Opportunity Index. It is not surprising that leading developing countries like Zambia are considering adopting and adapting the Index in their social assistance strategies”, concludes Mr. Giugale.

GENEVA, Switzerland, December 12, 2012/African Press Organization (APO)/ — The Ministry of Health of the Republic of Congo is launching an emergency mass-vaccination campaign against yellow fever in Ewo District in Cuvette-Ouest region, beginning next week.

The emergency vaccination campaign aims to cover approximately 35,000 people in three health districts of Mbama, Ewo and Okoyo, all of which belong to the administrative district of Ewo.

The emergency vaccination campaign is being carried out after recent confirmation of a case with yellow fever virus infection that occurred in October 2012. The case was identified through the national surveillance programme for yellow fever.

Laboratory confirmation was done at Institut National de Recherche Biomédicale Kinshasa (INRB), and reconfirmed by a WHO regional reference laboratory for yellow fever, Institut Pasteur, Dakar, Senegal.

The vaccination campaign is being supported by the International Coordinating Group on Yellow Fever Vaccine Provision (YF-ICG1), the GAVI Alliance and the European Commission’s Humanitarian Aid and Civil Protection Department (ECHO).

1 The YF-ICG is a partnership that manages the stockpile of yellow fever vaccines for emergency response on the basis of a rotation fund. It is represented by United Nations Children’s Fund (UNICEF), Médecins Sans Frontières (MSF) and the International Federation of Red Cross and Red Crescent Societies (IFRC) and WHO, which also serves as the Secretariat. The stockpile was created by GAVI Alliance.

TOKYO, Japan, December 12, 2012/African Press Organization (APO)/ — The Government of Japan welcomes that the presidential election in the Republic of Ghana was held generally in a peaceful manner with a high voting rate and congratulates Mr. John Dr…

ABUJA, Nigeria, December 12, 2012/African Press Organization (APO)/ — ECOWAS has learnt today with concern the events that led to the resignation of Mr. Cheik Modibo DIARRA, Prime Minister of the transitional Government of Mali.

Indeed, the President of the Commission wishes to recall that, by virtue of the Decision of the Extraordinary Summit of ECOWAS held in Abidjan on 26 April 2012, executive power in Mali is vested in the interim President, H.E Dioncounda TRAORE, who acts as the Head of

State and Commander in-Chief of the Malian Armed Forces, in line with the provisions of the Constitution of February 1992, and recognized as such by ECOWAS, the African Union, and the entire International Community.

Consequently ECOWAS strongly condemns any act that goes against the Transition in Mali, in particular, military action against the constituted Authority of the Transition, as well as any form of interference by the military in the political process.

Finally, ECOWAS reaffirms its support to the Interim President and urges him to take all necessary and immediate measures to form a representative and inclusive government as soon as possible in order to pursue the ongoing efforts to end the crisis and to bring together all Malians around the common cause of restoring the territorial integrity and unity of the country, dismantling terrorist networks in the North, and organizing free, transparent and inclusive elections.

Kadré Désiré OUEDRAOGO

President of the Commission Abuja, 11 December 2012