The African Development Bank is organizing its first consultative meeting of Stakeholders and Development Partners on Corporate Governance in Africa. This consultative meeting will provide an opportunity to review the overall status of corporate governance in African countries, present the Bank’s Strategy on Corporate Governance and discuss with represented stakeholders and development partners; the best modalities for its implementation, taking into account the existing programs and activities. The Bank’s efforts to improve corporate governance will target: government organizations and regional institutions; financial intermediaries; and corporations, particularly SOEs and SMEs. The meeting in Tunis will build on AfDB past actions, particularly in support to NEPAD and the Pan African Corporate Governance Forum in the design of plans of action tailored to address the needs of corporations and African countries. High-level experts representing a wide range of organizations and partners from Africa, Europe and America will participate in the meeting.

Meanwhile, African Development Bank has given East African governments $13.6 million to improve trade and transport. The money is part of a $280 million trade and transport facilitation project to be co-financed by World Bank, East Africa Community, Northern Corridor authorities, and the benefiting countries. The bank’s support will help in implementing the East Africa Customs Union Protocol and reduce non-tariff barriers and transit time on the key trade corridors.  

Beyond Short Message Services to Cash Transfers

Safaricom will introduce a new cash transfer service Mpesa, next year. The service will enable Safaricom subscribers to send and receive cash from 130 Postal Corporation of Kenya (PCK) branches countrywide. The new service, which will initially be meant for only local transactions, will enable clients to send and receive up to Ksh.10,000 per transaction.

East Africa to Address a Shortfall of 3.8 million Units

Kenya, Uganda and Tanzania will undertake a major housing project to address a shortfall of 3.8 million units in the region. The blueprint of the project was presented to the East African Development Bank (EADB) by the heads of state Summit in Arusha on November 30.  Under the project, a total of 28.8 million units are expected to be built in the next 20 years, as three East African Community countries seek a solution to the ever-growing slums in urban centers. 

A Plan to Boost Business between Africa and China Launched

A plan to boost trade between small businesses in Africa and China has been launched. The 'China-Africa Trade Corridor' was inaugurated on 6th December 2006 in Shenzhen, China, at a seminar for small and medium-sized businesses (SMEs) in international trade. Facilitated by the Standard Chartered Bank, the pact offers traders a platform to exchange ideas on solving financial problems and exploring ways of cooperation. Kenya's ambassador to China, Ms Ruth Solitei, the Deputy Director of China's National Development Resource Council (NDRC) Madam Di Na, and Li Zhang, Director, Secretariat of China-Africa Business Council (CABC) attended the launch. Standard Chartered's Executive Director in Charge of SME banking in Kenya, Mr. Jeremy Ngunze said the pact was the bank's long-term commitment to SMEs in the two regions. In her keynote address titled 'Trading with Kenya', Ms. Solitei said although Kenya and China have enjoyed successful trade relations, there were imbalances in favor of China. More products from Africa, said the envoy, were now tax-exempt in China. Some 400 products, up from 129, Solitei said, were not taxed in a bid to improve trade relations.

African, Caribbean and Pacific (ACP) Group of States Summit

The fifth summit of the African, Caribbean and Pacific (ACP) Group of States took place under the theme 'United for Peace, Solidarity and Sustainability'. ACP is currently grappling with Economic Partnership Agreements (EPAs) -- accords which have to be in place by the end of 2007 in order to bring ACP-EU trade relations into compliance with the World Trade Organization’s (WTO) regulations. At the start of the two-day summit in Khartoum, Mozambican head of state and current ACP president, Armando Emilio Guebeza, said that EPAs will not bring substantial benefits to the ACP countries. "On the contrary, those agreements will contribute to marginalizing the ACP Group in an ever more competitive world," he said. Sudanese President Omar Hassan Ahmed al-Bashir railed against "uneven" development which he said had been perpetuated by the United Nations, amongst others. "Many of our countries are suffering from conflicts and disputes which have been created by colonial powers," he said.

IREN Updates

Last week James Shikwati, Director IREN, attended New Kids on the Block? China’s and India’s Growing Importance in African Development conference in Berlin. The event attracted officials from the Institute of West Asian and African, Chinese Academy of Social Sciences, India’s Institute for defense studies and analysis and Board Chair of Sudan Monitor

Shikwati is currently attending the 2nd International Turkish – African Congress in Istanbul Turkey where he will present a paper on Economic Progress and Development Aid in East Africa – the Case of Kenya under the major theme “Economy and Development Aid”. Other topics of discussion will be Education, Health, Agriculture, Tourism, Economy and Development Aid in Sub-Saharan Africa will be covered. The event will strengthen the ties between Turkey and the Sub Saharan Africa.

Harvard International Review will be publishing Shikwati’s essay on How to Promote Economic Growth in Kenya and Africa.

On 5^th Dec, the IREN team attended a farmers’ event organized by Kabati Low Resource Farmers in Kitui District of Kenyan Eastern province to showcase their activities. The event was also attended by Community Based Organisations, Agricultural officials, Administration officers and Academicians. Sammy Mwati, Assistant Chief, hailed IREN for changing the mindset of local community towards productivity.