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Europe Daily Bulletin No. 9385
Contents Publication in full By article 12 / 33
GENERAL NEWS / (eu) eu/development

Informal Council wants to promote private investment in Africa, push Europe/Africa partnership on energy forward and bolster dimesnion on EPA

Königswinter, 13 mars 2007 (Agence Europe) - The desire to help Africa escape from economic marginalisation guided the main thrust of discussions at the informal Development Council on 12-13 March in Petersberg, near Bonn. This session, organised by the German presidency, brought EU ministers in charge of development together. It also, for the first time, brought development and trade ministers from around thirty ACP (Africa/Caribbean/Pacific) countries, linked to the Union through the Cotonou agreement, together in a development partnership.

Although Heidemarie Wieczorek-Zeul, German federal minister for economic cooperation and development and acting president of the Council, took the initiative for this innovation, it was investment in Africa, the EU/Africa economic partnership (currently being negotiated between the EU and six ACP sub-regions) that took pride of place on the agenda of this informal ministerial meeting. Two weeks ago the joint ACP/EU committee on 1 March examined progress in these laborious negotiations that were supposed to have been concluded before the end of 2007 and enter into force on 1 January 2008. The German presidency is dead set on holding a dialogue with ACP ministers in an attempt to iron out any fears from African countries. These fears mainly arise due to the pressure of the tight timetable and fears about having to progressively open up their markets to European competition without receiving any guarantees that EPAs will be at the fore of development instruments. The creation of an environment that is conducive to foreign investment is one of the first prerequisites for succeeding in this vast enterprise. Mr Aliyu Modibbo Umar, Nigeria's minister for trade and industry informed EUROPE, that, “it will be interesting for us to see European manufacturers setting up in our countries. My country is very good in leather productions. Italy is the number 1 consumer but no Italian or Spanish company is making shoes in our countries. We want businessmen to come to Africa in partnership”.

Conditions for this direct investment from abroad are cruelly lacking in Africa and were the subject of an exchange of views during dinner on 12 March, introduced by Paul Wolfowitz, President of the World Bank and Dr Otto, a German entrepreneur who had come to present ministers with the “Cotton made in Africa” project, a successful partnership financed by the public and private sectors to develop a quality African cotton label, promote sustainable crops (from an environmental point of view). It also seeks to process this product in West African countries to create a local cotton clothes market.

Access to energy is another essential condition for development in these countries. In the knowledge that around half the African population lives in absolute poverty and around 70% depend on traditional biomass as their only source of fuel, European and African ministers expressed their wish to develop an energy partnership. The aim will be to help African countries cover significant energy requirements and help fuel their economic growth, as well as develop renewable energies, in an attempt to reduce African economies' dependency on oil, which is too expensive and which have negative effects on the climate. Midway through the session, before beginning the detailed dialogue on EPAs with ACP partners, Ms Wiczorek-Zeul informed the press that she was delighted with the convergence of views on the themes tackled. She also welcomed the common desire to “move the Europe/Africa partnership on energy for the people, forward. She said that encouraging new technologies that were not energy guzzlers, as well as renewable energies, was a duty of the EU because these countries were suffering from climate change and were not responsible for it. She said that compensation had to come from us. She was delighted with the warm welcome this project received, “as a positive commitment by the EU to reducing CO2 emissions and increasing the share of renewable energies”».

Addressing German (VENRO) and European (CONCORD) development NGOs the president appealed for the EPAs to really be at the service of development. Speaking to ministers and the Commissioner for trade, Mandelson and Mr Michel (Développement), the president called on the EU to listen to ACP ministers and try and create confidence between the different parties for promoting development in ACP countries. Peter Mandelson warned that it was not a marathon they were running and pointed out that ACP counties had enjoyed unilateral trade preferences for thirty years but that these were insufficient because ACP exports had tumbled and their market share in Europe had fallen. The Commissioner said that they had to rectify this situation in concertation with ACP countries to put trade at the service of development by way of progressive regional integration in the multilateral trade system. He explained that this would require maintain advantages and changing the partnership to help ACP countries end dependency, diversify their economies, increase trade between themselves and reduce poverty. Mandelson said that opening up the markets would not be done in 2008 but over decades or even longer so that ACP countries could fully benefit from this new trade instrument. Louis Michel said that financial resources were available for accompanying implementation of EPA as part of the European Development Funds and the regional accompaniment funds open to Member States that were prepared to develop them. (an)

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