ISSUE PAPER: Towards the Implementation of the Africa Action Plan on Development Effectiveness (AAP) 1. Background Africa’s development infrastructure consists of three elements: development priorities, strategic partnerships and modes of monitoring development. In accordance with the African Union’s Agenda 2063 and the Common African Position of the Post-2015 Development Agenda (CAP), and with the support of the Global Partnership, Africa is taking responsibility for setting its own development priorities and determining the partnerships that will be the most beneficial for its development. The modes of monitoring development progress in Africa is to a large extent determined by the processes of the Global Partnership for Effective Development Cooperation in which representatives from Africa is determined to advocate for the interests of the people of Africa. In February 2014 African representatives from politics, the private sector, CSOs and academia convened under the auspices of AU-NEPAD in Abidjan, Côte d’Ivoire, and reached consensus on specific priorities for the first African Action Plan on Development Effectiveness (AAP). Within the ambit of the NEPAD Agenda, Agenda 2063 and CAP, the AAP outlines concrete steps for how Africa should take responsibility for its own development. The AAP expresses selected African development priorities, which are to be complemented with member state-specific development priorities. In November 2014, again under the auspices of AU-NEPAD, a regional meeting was held in Kinshasa, Democratic Republic of the Congo, to flesh out the implementation of the AAP. 2. Problem Statement Delegates at the regional meeting held in Kinshasa were tasked, among other things, to provide concrete recommendations on the following question: How should the AAP be implemented? In this Issue Paper a synthesis of the recommendations in Kinshasa is presented. The synthesis is done in terms of the four thematic focus areas of the AAP. 1 3. Key Recommendations for Implementing the AAP 3.1 Mobilization of African resources for the development of Africa Recommendation Quantify potential tax resources per country. Further clarification This should include estimations of illicit financial flows. Quantify, mobilize and incentivize potential tax contribution of the Special attention should be given informal sector. to the care economy. Review tax legislation, with special focus on existing tax exemptions The ITIE process in DRC, Chad and and tax holidays. other countries is an example of sector-specific reforms. Improve tax collection. A best practice can be found at the South African Revenue Service. Exchange relevant tax information between countries. This should ideally be done by means of a secure IT system. Create observatories to monitor the extractive industry. Special attention should be given to their tax contributions, environmental impact, and health and safety standards. Enable and support innovative uses of microcredit to support SMEs. One possibility is the creation of an Industrial Support Fund. Improve the business environment, specifically by reducing Concrete examples of simplified bureaucratic procedures of acquiring licences and approvals. and streamlined business SME registration can be found in Burkina Faso, Mauritania and the DRC. Develop mechanisms to support SMEs. One possibility is the creation of a development bank or fund that finance SMEs that meet certain criteria. Utilize innovative domestic financing instruments. Stock Exchanges, National and Regional Infrastructure Bonds, Diaspora Bonds and PPPs etc. 2 3.2 SSC, TC and regional integration for development Recommendation Support regional development projects, focussing on infrastructure. Strengthen the role of RECs in regional development projects. Enable and support the removal of barriers to free movement. Build SSC, TC and RI capacity in public and private sectors. Establish units or structures dedicated to SSC, TC and RI. Expand knowledge of potential development partners in the South. Further clarification The construction of roads, railway lines and pipelines to allow Uganda, Ethiopia, South Sudan and Rwanda access to the Mombasa port is an important example in this regard. Planning, Implementation (coordination between countries) and Monitoring & Evaluation The adoption of protocols on free trade and movement of people across and within regions is one such possibility. Existing programmes and centres need to be supported, such as the PAN Institute for Development or MEFMI, and new programmes should be created. South Sudan, for example, has created a SSC unit within the Ministry of Finance’s Department of International Cooperation. Asian and Latin American Studies at African universities should be strengthened and expanded. 3.3 Preparation for and support of “middle-income” status Recommendation Further clarification Develop and support an appropriate and comprehensive measure The use of only GNI per capita is of MIC status. inadequate and misrepresents the status of many countries. Develop African models of MICs addressing inequality and social A viable option is an Annual report exclusion. on the status of inequality in MICs in Africa. Disseminate regional and country-specific development information The Africa Platform for on the transition from LIC to MIC. Development Effectiveness (APDev) is the premier African instrument that can be used to 3 facilitate this process. Disseminate African experience on the transition from LIC to MIC Organize an annual forum for MIC and the particular challenges of MICs in Africa. and establish exchange programs, study tours and benchmarking visits. Enable and support the collection of reliable data and statistics at Enhance and develop national & national level. regional statistical institutions for timely and reliable data to plan development projects Incentivize African research institutions to make research related to This can also be done by means of the transition from LIC to MIC and the particular challenges of MICs APDev. in Africa publicly available. Establish national mechanisms that link government ministries and Strengthened inter-ministerial agencies that address inequality and social exclusion. coordination committees for collective planning, implementation and M&E Promote and create income generating initiatives for the poor, An important African example is marginalised communities, women and youth. the UWEZU Fund in Kenya for Women, Youth and Disabled individuals that give funding at low interest rates and without collateral. 30% of Government tenders have been reserved for Women Youth and Disabled groups. Monitor and support sustainable and decent employment. Ensure stronger role of private sector in development particularly with regards to youth empowerment and opportunities. Develop and support PPP programmes. Set-up strong institutions to ensure project preparation is appropriately carried out for more bankable public projects to attract the private sector.3.4 Towards creating a representative and inclusive global development infrastructure Recommendation Further clarification Ensure the adequate representation of the African region in global This should include processes governance structures. aimed at establishing an Advisory Committee for the Global Partnership for Effective 4 Development Cooperation and finalising the post-2015 Agenda. 4. Implementation The key recommendations that emerged from the regional meeting are to be implemented in terms of the following principles: The recommendations are African priorities and should direct development cooperation in Africa. Implementation of the AAP priorities should be complemented with member state-specific development priorities. Implementation should be rolling, with continuous exchange of experience and feedback. Key countries for the initial implementation of the AAP should be identified as soon as possible. The AAP should be implemented according to concrete timelines and allocation of resources. It is recommended that its implementation should commence in the first half 2015. The AAP is to be implemented by governments, RECs and continental bodies in close cooperation with the private sector and CSOs, and with the support of partners in the South and development partners. 5. Resource Implications It is recommended, in the spirit of the Global Partnership for Effective Development Cooperation’s emerging vision and indicators, that development cooperation should make resources available to support the African priorities outlined in the AAP. 5