By Lakshi De Vass Gunawardena
UNITED NATIONS, Aug 20 2019 (IPS)

The Southern African Development Community (SADC), which comprise 16 member states, loses about 8.8 billion dollars in trade-related illicit outflows and about 21.1 billion dollars in external government debt payments annually, according to a new report released here.

Michael Buraimoh, Director, Action for Southern Africa (ACTSA), told IPS there are several reasons for this, including the lack of capacity to combat trade mis invoicing and managing debt; nature of politics and institutions in Southern Africa leading to corruption and mismanagement; and the unjust nature of the global economy.

The report, titled The Money Drain: How Trade Misinvoicing and Unjust Debt Undermine Economic and Social Rights in Southern Africa, was launched ahead of a summit meeting of SADC leaders in Tanzania August 17-18.  

Sunit Bagree, ACTSA’s Senior Campaigns Officer and author of the report, said: “It’s a scandal that rich countries barely seem to care that Southern Africa is haemorrhaging money.”

“A broken international economic system is, fundamentally, why trade misinvoicing and unjust debt are depriving SADC governments of massive funds that they could use to realise economic and social rights for the many people living in poverty in the region,” he noted.

Bagree said SADC governments can certainly do more, for example by employing innovative tools to detect potential misinvoicing of trade transactions and organising comprehensive public debt audits.

“But they must also call out powerful international countries for failing to live up to their responsibilities and turning their collective backs on vulnerable people in Southern Africa,” he declared.

The 16 member countries of SADC are: Angola, Botswana, Comoros, Democratic Republic of Congo, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, United Republic of Tanzania, Zambia and  Zimbabwe.

The report revealed that in Southern Africa, the youth unemployment rate is 31 percent, 5.4 million people are currently undernourished, at least 617,400 new HIV infections emerge a year, and more than 40 percent of the population in 12 countries lack access to basic sanitation services.

Trade invoicing causes the SADC region to lose at least 8.8 billion dollars a year, and the report estimated that South Africa alone suffers of a loss of at least 5.9 billion dollars per year due to illicit trade flows.

On top of this, the region is bearing even more losses due to debt. The report cites that Angola alone is emptied of 21.1 billion dollars a year as a result of principal and interest payments on debt.

To add to this, the parts of Africa that were devastated by cyclones earlier this year has mass debts to pay back to wealthier countries.

Several institutions have attempted to raise concerns about trade mis invoicing and debts, but progress has been fragmented and slow, and nothing fruitful has emerged.

Asked what role ACTSA will take going forward, Buraimoh said: “We are promoting our report to the media in the U.K. and USA, as well as in Southern Africa and in continental Europe.”

He also revealed they are aiming to meet with and directly influence, the U.K. and U.S. governments, International Monetary Fund (IMF), World Bank, the United Nations, the Commonwealth and African Union (AU) in relation to the report’s findings and recommendations.

This is expected to lay the basis for future advocacy work on debt and trade-related illicit flows with civil society partners such as Jubilee Debt Campaign, Zimbabwe Coalition on Debt and Development (ZIMCODD), Global Financial Integrity and the Southern Africa Trust.

He added that they aim to add value to the work of these partners and join up regional and global work on these two crucial issues, and that this will be a vital contribution to efforts that considers development from a rights-based perspective and as a concept that relates to issues beyond aid.

“By evaluating success of all the above we can measure progress as relates to the report’s recommendations.

As what role the U.N. should play, Buraimoh said the U.N. Human Rights Council has done some good work on these issues.

“We want to see this continue. The U.N. General Assembly should do more, and some U.N. agencies e.g. Economic Commission for Africa also have engaged, while others can do more.”

He said that all need to work together to ensure International Financial Institutions take more progressive approaches.

“You can really help us by getting the report circulated as widely as possible. The more people are energised about this the better it would be for us to make it an international priority. It is a problem plaguing the entire Global South, not only Southern Africa”, he declared.

Judith Twaili shows where she used to dry the fish catch when business was better. Credit: Mabvuto Banda/IPS

By Mabvuto Banda
MANGOCHI, Malawi, Dec 21 2018 (IPS)

Lake Malawi, Africa’s third largest lake, provides an economic lifeline to many fishing families. But overfishing is affecting many of these lives, with women being affected the most.

The lake, also known as Lake Nyasa in Tanzania and Lago Niassa in Mozambique, has the largest number of endemic fish species in the world — 90 percent out of the almost 1,000 species of fish in the lake can’t be found anywhere else in the world.

The Ministry of Agriculture, Irrigation and Water Development estimates that fishing contributes about four percent to Malawi’s gross domestic product (GDP), and that it employs about 300,000 people.

However, that is probably not the case now because fish stocks in the lake have been dwindling over the years due to over-fishing and women are the hardest hit.

Judith Kananji’s life-changing story tells it all. Kananji who is from a fishing family in Micesi Village Traditional Authority Mponda, in the lakeshore district of Mangochi, says she has in the meantime stopped purchasing fish because the trade is no longer lucrative compared to in previous years.

“The problem is that the fish is no longer found in abundance and it’s only the small fish available at the moment and it’s expensive. Unlike before we were having bigger fish which was easy to make profits. This time around it is hard to purchase small fish to sell at a higher price,” she told IPS.

“About 8 years ago, I used to make a good profit from capital of about MK100, 000 (137 dollars). But now it is even impossible to make profits with a working capital of MK800, 000 (1,095 dollars),” she said.

According to the Southern African Development Community (SADC), protocol report, “Years ago, it was the norm to catch about 5,000 fish a day, but now, fishers catch about one-fifth of that, or even as less as a mere 300 fish a day.”

Kananji said that the increase of fishing vessels on the lake has negatively contributed to depleting fish levels because there is stiff competition among the fishermen, which is leading to overfishing.

But SADC also said, “The rapid drop in Lake Malawi’s water levels, driven by population growth, climate change and deforestation, is threatening its flora and fauna species with extinction.”

Kananji said: “Sadly it is us women who buy fish from fishermen who have been pushed out of business because fishermen in most cases raise their prices to meet operating costs whenever there is a small catch.”

“This works to our disadvantage because fish prices at the market are always low,” she added.

Just like Kananji, Chrissy Mbatata received a loan from a micro finance lending institution popularly known as village bank to bank roll her fish selling business.

Mbatata is, however, in more trouble. She is currently struggling to settle the loan.

“Initially it was easy for me to pay the loan and support my family because I was making good money. Now it is even hard to break even. Fish is not available and I don’t know where the money to pay back the loan and support my family will come from,” Mbatata told IPS.

The dwindling fish is not only affecting businesses but also the protein intake in a country where the United Nations International Children’s Emergency Fund says around 46 percent of children under five are stunted, 21 percent are underweight, and four percent are wasted and Micronutrient deficiencies are common.

“Chambo [the famous local fish] used to be the cheapest source of protein for us but now it’s now a luxury we only can afford at month-ends. Imagine a single fish going at K1 800 (2.4 dollars)?” said Angela Malajira, a widow of four from Lilongwe’s Area 23 suburb.

To reverse the trend government and fishing communities have found sustainable ways to harness the industry by setting up some rules and empower chiefs to implement them.

Every year, the government prohibits fishing on the lake from the month of November to December 31 to allow breeding to take place.

Interestingly this has been well received, without any resistance, from fishing communities because they understand the importance of increasing the fish levels in the lake.

Instead the communities have formulated their own bylaws outlawing fishing from November to March —  extending the fishing for 5 months.

Vice Chairperson for Makanjira Beach Village Committee Malufu Shaibu said the fishing communities agree that fishing on the lake should shut down for a long time because it has shown that the move can help to improve fish levels on lake.

He explained that during the past five months, assessment has shown that there are more fish species and volume that have started to be seen on the lake as opposed to when the lake was closed for two months
only.

“We want the lake to be closed for six months. We are glad that now we have a lot of fish due to the prolonged time of breeding which we gave the fish,” said Shaibu.

“Our children will now be able to see fish the way we saw them. The benefits for closing the lake for a long time are more than the disadvantage.”

But Shaibu, like Kananji, complained that commercial fishermen are derailing their efforts to improve fish stocks.

Mangochi District Fisheries Officer Thomas Nyasulu said that an office they are working with the newly revived Fisheries Association of Malawi to rein in on big commercial fishermen on the lake.
He said closing the lake for a long period of time would make their work more easy and fulfilling.

“It is good that the fishermen are suggesting this move. It can really help a lot. On regulating the commercial fishermen, we are working with fisheries association of Malawi in making sure that all big fishermen are following their fishing grounds,” said Nyasulu.

The bylaws are working. In April this year a 40-year-old man was convicted and sentenced to pay a fine of K800,000 (1,095 dollars) or in default serve 60 months imprisonment with hard labour for fishing on the lake when had closed contravening the  fisheries conservation and Management Act.

The Magistrate Court sentenced Kennedy Fatchi of Makawa Village in the area of Traditional Authority Mponda in the district after he pleaded guilty to the charges.

Police prosecutor Maxwell Mwaluka told the court that on March 4, 2018 the chiefs working with the Fisheries Inspectorate in the district came across a commercial fishing company on the lake fishing.

He said the team seized the fishing materials and the convict was charged with three counts which he pleaded guilty to.

“This is the only way we can go back to having more fish in our lake which would inadvertently improve our lives,” said Kananji.

By 2030 the ambition is to restore 100 million hectares of currently degraded land and sequester 250 million tons of carbon. Credit: Greatgreenwall.org

By Issa Sikiti da Silva
DAKAR, Senegal, Jun 11 2018 (IPS)

Hope, smiles and new vitality seem to be returning slowly but surely in various parts of the Sahel region, where the mighty Sahara Desert has all but ‘eaten’ and degraded huge parts of landscapes, destroying livelihoods and subjecting many communities to extreme poverty.

The unexpected relief has come from the Great Green Wall for the Sahara and Sahel Initiative (GGWSSI), an eight-billion-dollar project launched by the African Union (AU) with the blessing of the United Nations Convention to Combat Desertification (UNCCD), and the backing of organizations such as the World Bank, the European Union and the United Nations Food and Agriculture Organization (FAO).

The Sahara, an area of 3.5 million square miles, is the largest ‘hot’ desert in the world and home to some 70 species of mammals, 90 species of resident birds and 100 species of reptiles, according to DesertUSA.

Restoring landscapes

The GGW aims to restore Africa’s degraded landscapes and transform millions of lives in one of the world’s poorest regions. This will be done by, among others, planting a wall of trees in more than 20 countries – westward from Gambia to eastward in Djibouti – over 7,600 km long and 15 km wide across the continent.

The countries include Mauritania, Mali, Burkina Faso, Niger, Nigeria, Chad, Sudan, Ethiopia, Eritrea, Djibouti and Senegal. There is also Algeria, Egypt, Gambia, Eritrea, Somalia, Cameroon, Ghana, Togo and Benin.

A girl learns about the project through a virtual reality headset. Credit: Greatgreenwall.org

Popularity

Elvis Paul Nfor Tangem, AU’s GGWSSI coordinator, told IPS that the project was doing well, gaining popularity and generating many other ideas as the implementation gains momentum.

Tangem also said that the AU had begun working with the Secretariat of the Southern African Development Community (SADC) and the Namibian government for the extension of the GGWSSI concept to the dry lands of the Southern Africa region.

Namibia, which borders South Africa, is located between the Namib and Kalahari deserts. Namib, from which the country draws its name, is believed to be the world’s oldest desert.

Largest project ever

If the GGW is indeed extended to Southern Africa, it will take the number of countries drawn to the project to over 20, making it one of the world’s largest projects ever.

Fundraising for beneficiaries countries is being done through bilateral negotiations, as well as through national investments, the AU said.

International partners including the International Union for Conservation of Nature (IUCN), the Global Environment Facility (GEF), Sahara and Sahel Observatory (SSO), among others, are also playing a critical role to ensure that the project is being successfully implemented, and upon its completion by 2030 will become the world’s largest living structure and a new Wonder of the World.

The icon of GGW shows the path of the Great Green Wall. Credit: Greatgreenwall.org

Food security

The GGW is set to create thousands of jobs for those who live along its path and boost food security and resilience to climate change in the Sahel, one of the driest parts of the world, where the FAO said an estimated 29.2 million people are food insecure.

The project founders said that by 2030 the ambition is to restore 100 million hectares of currently degraded land and sequester 250 million tons of carbon.

Asked if the project is being implementing one country after the other, Elvis replied: “The implementation of the initiative is first and famous country-based, meaning all the countries are undertaking implementation at their levels.

“However, the common factor among all the countries is the fact that their activities are based on the Harmonized Regional Strategy and their National Action Plans (NAP). We are supporting the production of the NAP in Cameroon and Ghana and also working on the SADC region.”

Returning home?

In Senegal, a total of 75 direct jobs and 1,800 indirect jobs, including in the nurseries sector and multipurpose gardens, have already been created through the GGW in the last six years, according to official statistics.

Also in Senegal, where desertification has slashed 34% of its area, the GGW has since ‘recovered’ just over 40,000 hectares out of the 817,500 hectares planned for the project. This is good news for people like Ibrahima Ba and his family who left their homeland to move to Dakar in the quest of greener pastures.

Now, he is contemplating a return home. “I’m planning to go back towards the end of the year to rebuild my shattered life. The Sahara hasn’t done anybody any favor by taking away our livelihood,” Ba, a livestock farmer Peul from northern Senegal, told IPS.

An estimated 300,000 people live in the three provinces crossed by the GGW in Senegal.

Participatory approach

However, Marine Gauthier, an environmental expert for the Rights and Resources’ Initiative, (RRI) said a participatory approach was needed if the project was to be implemented successfully.

“In a conflictual region, where people depend on the land for their survival and where there are numerous transhumance activities from herders peoples (Peuls) potentially impacted by the project, a careful participatory approach is needed,” Gauthier said.

“Conflicts have already arisen a couple of years ago with Peuls (herders practicing transhumance, whose travels were to be restrained by the project). Just like any other environmental protection project, its capacity to engage with local communities, to make them first beneficiaries of the project, is the key to its success on the long term.

“Participatory mapping is a very successful tool that has been used within other projects and that could be of great help in defining and establishing the Great Green Wall,” Gauthier said.

Furthermore, Gauthier said empowering communities would be very interesting at the scale of the Great Green Wall. “It would take a lot of efforts, consultations, financial and human resources. It is however the only way to ensure that this project, which people are talking about for more than 10 years now, reaches its goal.

“Because when the communities are empowered and when their rights on the land are secured, it benefits directly to the environment and to preserving this land from more damage.”

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A cornerstone of Africa’s planned Free Trade Area will be improved production capacity. Credit: Kristin Palitza/IPS

By Pascal Lamy
GENEVA, Jun 4 2013 (IPS)

The old theories governing the way that countries produce and trade are being replaced. The pattern of trade is being transformed by increasingly sophisticated technology and innovations in transportation; and the topography of actors is shifting to reflect new poles of growth.

This is no longer the clearly delineated North-South order of the 20th century. A large number of developing countries have now emerged. And Africa, both as a continent and as the sum of individual sovereign states, is poised to lead the new patterns of growth for the foreseeable future.

Six of the world’s ten fastest-growing economies over the past decade were in sub-Saharan Africa. Five years into the global financial crisis, Africa as a region has shown great resilience, with an average growth rate of over five percent over the last decade. This is in contrast with the advanced economies, most of which are yet to fully recover from the economic downturn.

The World Trade Organisation (WTO) recently published the trade figures for 2012 and the outlook for 2013. World trade grew by just two percent in 2012. And this slow growth should continue into 2013 where we are projecting trade growth of only 3.3 percent, which is below the previous 20-year average of around five percent.

With structural flaws in some economies due to remain for the foreseeable future, I expect the global economy will move at three speeds: flat growth in the euro zone; a slightly better outlook in the United States and Japan; and faster growth in most developing countries, especially in Africa. Prospects for economic growth are thus greater in developing and low-income countries.

Pascal Lamy, director-general of the World Trade Organisation (WTO). Credit: Courtesy WTO

Several factors have contributed to Africa’s rebound in growth. These include higher investment and savings; stronger export growth, particularly resulting from the higher commodity prices; an improved legal, regulatory environment; and overall macroeconomic stability.

Consumer demand by its growing middle class is also an engine for growth. According to a recent World Bank report, consumer spending accounted for more than 60 percent of sub-Saharan Africa’s recent economic growth, which is forecast to accelerate to more than five percent over the next three years, outpacing the global average.

Africa has also made remarkable progress in the areas of political stability and governance, which are fundamental to growth.

But if I had to name one single factor, I would say it is “confidence”. Africans today are more confident and hopeful about the future than ever before. This is also the great transformation that I have seen in the attitude of African negotiators in the WTO: confidence that trade, if coupled with domestic policies and Aid for Trade, can be an engine for growth.

The real challenge for Africa lies in sustaining the growth process, enabling it to reach its full potential and ensuring the growth is inclusive.  Widespread and sustained poverty reduction, which is, in effect, the ultimate aim of growth and development, is only possible if the domestic policies are in place to ensure that the deliverables from this success story translate into real impact on the ground.

Trade is one of the strategies that can be exploited to solidify and enhance the growth prospects. The recent African Union decision on boosting intra-African trade and moving forward on the Continental Free Trade Area are testaments to the political attention being given to trade as a real engine of growth in the continent.

Africa has a number of regional trade agreements, all of which aim to expand trade among its members. These regional agreements can be complementary to multilateral trade opening, provided they are crafted in a coherent manner.

I must specifically highlight the East African Community (EAC) for its progressive regional integration efforts. The creation of a customs union and a common market, and the ongoing discussions on a possible monetary union, are smart and economically robust decisions.

I also believe that the formation of a tripartite among the EAC, the Common Market for Eastern and Southern Africa (COMESA) and South Africa Development Community (SADC), should help address the complexity of the tariff regimes imposed by the different regional trade agreements and facilitate freer and less costly trade amongst members.

But the fact remains that inter and intra trade in Africa is still constrained by non-tariff barriers and poor connectivity. Cumbersome border procedures increase trade costs and the likelihood of inaccurate documentation and raise the chances of malpractices such as corruption.

According to a recent study by the Organisation for Economic Co-operation and Development (OECD), reducing global trade costs by one percent would increase worldwide income by more than 40 billion dollars, most of which would accrue to developing countries. Furthermore, trimming border procedures could lead to more than a five-percent increase in gross domestic product (GDP) in many African countries.

African countries, in particular, stand to benefit substantially from the ongoing negotiations at the WTO for a multilateral Trade Facilitation Agreement which, with its focus on reducing the thickness of borders and removing customs-related red tape, will ease access to markets and boost trade flows including agricultural commodity trade and time-sensitive products such as horticultural and other highly perishable goods.

It is in the interest of all WTO members to deliver a Trade Facilitation Agreement at the WTO Ministerial Conference in December. It will not only be an injection of confidence into the multilateral trading system ­ and to the notion of multilateralism ­ but it would lead to concrete economic deliverables on the ground.

(END/COPYRIGHT IPS)

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