A Decade of NEPAD - Economic Commission for Africa - uneca

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54 A Decade of NEPAD: Deepening African Private Sector and Civil Society Ownership and Partnership Research Council and the International Telecommunications Union. Initiating corporate partners included: SAP, AMD, Oracle Corporation, INTELSAT, IMMARSAT, Microsoft, ZTE Corporation Africa, Viasat USA, CISCO, and Hewlett Packard. South African corporates Sentech, MTN, Grintech Telecom, and Multichoice were also partners. ӹ The East African Submarine System (EASSy) – Promoted at the November 2002 East Africa Business Summit, EASSy is a regional initiative that predated NEPAD but was included within the STAP projects for East Africa to accelerate implementation. A feasibility study for the five country, US$200 million, submarine cable project was completed in 2005. The African Development Bank made a commitment to be the lead investor along with four other development institutions (French Development Agency, The European Investment Bank, The German Development Bank, and the International Finance Corporation) and eleven African telecommunications companies (Botswana Telecommunications Corporation, U-Com Burundi, Onatel Burundi, Dijibouti Telecom, Telkom Kenya, TDM-Mozambique, Dalkom Somalia, Zanzibar Telecom Limited, Uganda Telecom Limited, Lesotho Telecommunications Authority, Dilat Satcom Nigeria Limited). Subsequent direct investors in the project include: Telecom Malagasy-Madagascar, Mauritius Telecom, Telkom South Africa/ Vodacom Consortium, MTN International, Sudan Telecom Limited, Tanzania Telecommunications Company, Comoros Telecom, Neotel – South Africa, Zambia telecommunications Company, Communications Global Networks Services – British Telecommunications, Saudi Telecom Company, Bharti Airtel India, Etisalet (UAE)/ Cartel Sudan Consortium, and France Telecom. ӹ The NEPAD Infrastructure Investment Facility (NIIF) 67 – NIIF was established in 2006 by a team led by the African Business Roundtable/ NEPAD Business Group to increase the participation of the African private sector in the design, construction and maintenance of Africa’s infrastructure. Key target beneficiaries of the NIIF programme include African developers, contractors, consultants, SMEs and financiers. The World Bank is the lead funder of NIIF and the NIIF Advisory Management Team brings together a dynamic cadre of African institutions and international partners, including: African Investment Advisory, Africon, Loita 67 Power point presentation, Linsey Dyer, Africon, NEPAD-OECD Investment Roundtable, Kampala, Uganda, December 12, 2008 Capital Group, DLA Piper Rudnick and PM Global Infrastructure. NIIF has also established the NIIF Banking and Finance Working Group, which includes senior directors from: Nedbank Capital, Standard Bank, Rand Merchant Bank, ABSA Capital, the World Bank, Actis and The Pan Africa Infrastructure Development Fund. The activities of NIIF are to: • Help build capacity in African private sector firms so that they can more • successfully bid for infrastructure projects; • Assist African firms in gaining access to the professional services and resources (legal, technical, financial) needed for them to compete on equal footing with global competitors involved in infrastructure development; • Work with the African public sector to help facilitate engagement with the private sector and replicate international “best practice” and maintain good governance through transparent procurement; • Promote and publicise African infrastructure success and advances; • Manage a database of professionals engaged in developing African infrastructure (www.africaninfrastructure.com) and to help facilitate contacts and communication among them. ӹ NEPAD Business Foundation (NBF) 68 – The NEPAD Business Foundation was established in 2002 with the aim of mobilizing support for NEPAD from within the South African private sector. Led by Dr. Reuel Khoza, former CEO of Eskom, and comprised of leading SA CEOs, the NBF was constituted as a not-for-profit Section 21 company in 2004 by MTN, Old Mutual, Transnet, Eskom and Anglo American. The NBF is structured around fourteen sectors (agribusiness, audit & accounting, energy, finance, fast moving consumable goods, healthcare, ICT, infrastructure, legal, mining and resources, stock exchanges, transport, water and sanitation, SMME development, asset management and investment, and media and communications) with each sector headed by a member CEO. Each sector committee is tasked with identifying key challenges within their sector and with mobilizing/ sourcing the skills and resources to address the challenges. Serving as a platform for dialogue with government and with others in the private sector, the aim of the NBF is to: 68 The Role of the Private Sector and Civil Society: Review of NEPAD After 8 Years, UNECA, pp. 14-16
• Promote partnerships on NEPAD development projects in Africa, • Influence public sector policies, • Stimulate trade synergies, • Encourage an environment conducive to business, • Contribute to the development of the NEPAD APRM Programme of Action • Represent the interests and views of the private sector, and • Develop best practice standards of corporate governance In 2008, the NBF established a Project Management Office with the aim of disseminating information and knowledge about NEPAD projects and to facilitate and coordinate projects, partners and programmes across sectors. NBF is also working with other organized business entities within the SADC region and with the SADC Secretariat to establish a NEPAD SADC Business Hub that will: ӹ Ensure the private sector’s role in the development of economic growth on the continent, ӹ Address the current challenges that exist in conducting business within the SADC region, ӹ Promote trade and investment flows, ӹ Reinforce the role of the private sector as a contributor in the development of regional trade and economic policies, and ӹ Strengthen integration within SADC. Notwithstanding these encouraging examples of private sector intervention and engagement with the NEPAD programme, the body of research to date on the subject suggests that much more can and will need to be done to establish a meaningful partnership between NEPAD and Africa’s private sector and to foster a feeling of ownership in the NEPAD initiative among the African enterprise collective. In the area of SME capacity building and the development of programmes that provide informal private sector support, much less has been undertaken within NEPAD with the exception of the work that is being planned to engage small scale farmers within the Comprehensive African Agriculture Development Programme and the initiatives funded under the NEPAD Spanish Fund for Women Entrepreneurship. 4. NEPAD and the African Private Sector Today A Decade of NEPAD Selected key constraints that have been identified as impediments to more effective private sector involvement with NEPAD were identified during ad hoc expert group discussions and related research supported by OSSA and the UNECA. Specifically, it was expressed that there was a need to address the following: ӹ Involve small and medium sized firms in the NEPAD implementation process; ӹ Improve the capacity of the regional economic communities, particularly in regards to helping them establish structures to engage more effectively with the private sector, to design and manage PPPs, and to implement projects; ӹ Move from adhoc engagements between the private sector and NEPAD to a more clearly defined relationship with key stakeholders (also including the African civil society) and create a coordination mechanism for PPPs in Africa; ӹ Develop mechanisms to facilitate access to venture capital and guarantees; ӹ Provide risk guarantees for domestic African investors and foreign investors in infrastructure and accelerate the harmonization of differing legal and regulatory frameworks. Other constraints that were identified that impeded private sector engagement with NEPAD by the African private sector include 69 : ӹ The Limited Integration of NEPAD into National Development Priorities – Just as the AU and UNECA found that regional integration matters were often given less priority by AU member states in terms of their support for the RECs 70 , the absence of consistent prioritization of NEPAD within national development priorities meant that stakeholders such as the private sector and civil society were also lead to believe that NEPAD and regional integration, generally, was not a high priority at the national level; ӹ Poorly Funded and Inadequate NEPAD Supporting Infrastructure within African Governments – In addition to inadequate priority being given to NEPAD, the fact that governments were accordingly not establishing clear and accessible mechanisms through which to 69 The Role of the Private Sector and Civil Society: Review of NEPAD After 8 Years, UNECA, pp. 31 -33 70 ARIA II: Rationalizing Regional Economic Communities, missing Consensus and Actions at the National Level, UNECA and AU, p.69 55
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