Tag Archives: IFC
Quote

Zimbabwe should…

30 Oct

Zimbabwe should engage China, with about US$36 billion for investment in special economic zones, to attracting foreign investment to resuscitate critical sectors of the economy-Comesa secretary-general Dr Sindiso Ngwenya

Should African countries look for Foreign Direct Investment (FDI) or mobilise local resources?

Send your comments to: info@afrodad.co.zw

Advertisements

Look East for FDI, Comesa boss tells Zimbabwe

30 Oct

Zimbabwe should engage China, with about US$36 billion for investment in special economic zones, to attracting foreign investment to resuscitate critical sectors of the economy, a senior Common Market for Eastern and Southern Africa official said.
Presenting a paper on value chains and their roles in economic development at this year’s edition of the Zimtrade Exporters Conference in Harare last week, Comesa secretary-general Dr Sindiso Ngwenya said this country could court successful economies such as China for investment.

The first step would be the consolidation of special economic zones, which are areas designed to export goods and provide employment while they are exempted from certain taxes and quota laws meant to make goods manufactured in those zones fetch competitive global prices.
“In China, Shenzhen is a success story of a special economic zone which was established in the 80s and by 1994 the city was accounting for 35 percent of total Chinese exports, Zimbabwe should therefore go the SEZ route in order to revive critical sectors.
“Zimbabwe, therefore, needs to engage China to get that investment which can be channelled towards establishment and rehabilitation of power plants and revival of the manufacturing sector,” he said.

Mr Ngwenya said value addition was an effective strategy that would help Zimbabwe capture its fair share of the global market.
“Even the country’s vast minerals are not fetching enough revenue on the global market because they are exported in their raw state,” he added.

Mr Ngwenya added that in order to realise meaningful economic development there is also need to issue Diaspora bonds so that locals living abroad can participate in rebuilding the economy.

Funds mobilised can then be channelled towards infrastructural rehabilitation such as road dualisation among other critical infrastructural needs.

Retrieved from: http://www.herald.co.zw/look-east-for-fdi-comesa-boss-tells-zimbabwe/

Zim in Busan implementation hitch

24 Oct

ZIMBABWE, a highly aid dependent country has made little steps in implementing measures meant to bail it out of donor dependency, a move likely to shut it out of developmental support from the international community.Zimbabwe was among developing countries that signed a treaty in South Korea in 2011 committing it to implement a raft of measures under a so-called Busan agreement that called for developed countries and donors to start channeling developmental funding to signatory States and move away from humanitarian funding.

Reports submitted at a regional multi-stakeholder forum for East and Southern Africa on development effectiveness last week indicate that Zimbabwe is one of few countries that have failed to implement the Busan agreement.

Collin Magalasi, an executive director with AFRODAD, said Zimbabwe’s situation was different from that of other countries when it signed to Busan. “Busan took place when Zimbabwe had no donors, which was very different from other countries,” Magalasi said on the sidelines of the forum. “I think they are trying to put some systems in place but they are too far away. The fact that Zimbabwe does not have many donors as yet should not be an excuse for them not to put systems in place. They better put their house in order because donors will follow the systems,” said Magalasi.
A director responsible for Domestic and International finance in the Ministry of Finance, Margireta Makuwaza, told the delegates that Zimbabwe was not fully funded and that has contributed to delays in the implementation of the Busan principles.

She however underlined the need for government to review the Aid Coordination Architecture (ACA) policy document administered by the finance ministry to improve its implementation with the aim of aligning the policy document with the new constitution.
ACA was crafted in 2009 under the Government of National Unity (GNU) and its principles are premised on the aid Declarations signed in Paris (2005) Accra (2008) and Busan (2011) with a view of ultimately reducing Zimbabwe’s dependency on donors.

It contains guidelines, principles, structures and objectives for coherent interactions between government and the co-operating partners.
“We are not moving at the desired pace in term of implementing the Busan principles but it is essential to bring in the necessary changes to the ACA policy to align it with the new constitution,” Makuwaza said.
The three day regional consultation forum held in Rustenburg, South Africa from 16-18 October 2013, under the auspices of African Union Commission in collaboration with NEPAD Agency, African Forum and Network on Debt and Development (AFRODAD), United Nations Development Programme and the department of National Treasury of the Republic of South Africa, brought together more than 80 participants, mainly government officials, parliamentarians, civil society organisations and journalists from 17 countries.

The forum was held under the theme: “Leveraging Global Partnership to optimize Africa’s Resources – from Busan to Reality”.
The Busan principles aim at reframing the global aid reform agenda from aid effectiveness to development effectiveness which should result in poverty eradication, reducing inequality, sustainable development and enhanced capacities for developing countries.

It also promises engagement with business towards improved regulatory and policy environments for private investment, and business participation in the design and implementation of development policies.
It also calls for openness, trust, mutual accountability and transparent practices as the basis for accountability.

The 2011 forum on aid effectiveness held in the South Korean coast city, Busan, and attended by over 2500 State and non state delegates from developed and developing countries, including more than 300 civil society representatives, holds all the parties to account with an annual monitoring exercise for the aid industry. It put in place systems for countries to focus on the quality of development assistance given by donors.
Under the Busan principles, States are expected to develop a monitoring framework consisting of 10 indicators that measure progress in improving the effectiveness of development cooperation in areas such as the transparency and predictability of aid, gender equality, participation of civic society and the contribution of the private sector.

Busan, which produced an agenda for aid reform was built on the previous aid effectiveness commitments made in Rome (2003), Paris (2005) and Accra (2008) on the principles on aid ownership, inclusive development, transparency, results and accountability.

Busan also brought on board new players in the aid landscape such as China, Brazil and India. These countries agreed, on a voluntary basis to abide by Busan principles.
But two years on, the global partnership which sounds very grand is at risk of fading away in Zimbabwe because of lack of systems as agreed under Busan.

Source: http://www.financialgazette.co.zw/zim-in-busan-implementation-hitch/

Image

IFC aid sub-Saharan African economy with $5.3b investments in 2013 fiscal year

18 Sep

IFCAccording to Ghanabusinessnews.com investment commitments by the International Finance Corporation (IFC) reached $5.3 billion in sub-Saharan Africa, with projects targeting key sectors in the region’s economy. In a detailed factsheet released early September 2013, the IFC’s activities in sub-Saharan Africa showed strong development impact through record volumes of investment and advisory services for the year ending June 2013.

In addition to its committed record of $5.3 billion new investments, the IFC also carried out advisory services projects worth $65 million in the region in its most recent fiscal year.

According to the IFC it supported infrastructure, health, agribusiness and a range of activities in conflict affected states and helped Africa’s entrepreneurs gain access to finance.

“IFC invested $3.5 billion from its own account, and mobilized $1.8 billion from other investors,” it said in a statement adding “in FY 2013, IFC’s supported projects that provided loans for 54,000 small and medium businesses, encouraged 13.7 million microfinance clients; and improved health and education for 360,000 people.”

Yolande Duhem, IFC Director for West and Central Africa, said, “By focusing on developing Africa’s private sector in key areas such as power generation, transport or agribusiness, we are playing an active role in stimulating sustainable economic growth and job creation in the region.”

According to Duhem, the IFC also believes in boosting regional markets in Africa and many of its investments aim to allow companies to grow beyond national boundaries.

– See more at: http://www.ghanabusinessnews.com/2013/09/14/ifc-aid-sub-saharan-african-economy-with-5-3b-investments-in-2013-fiscal-year/#sthash.kmJFss9X.dpuf