WASHINGTON, May 17, 2012/African Press Organization (APO)/ -- Dr. Donald Kaberuka, President of the African Development Bank (http://www.afdb.org), will take part in an extraordinary meeting of the world's richest nations this week to discuss the critical issue of food security in Africa.

Photo: http://www.photos.apo-opa.com/plog-content/images/apo/photos/donald-kaberuka---afdb-president.jpg

President Kaberuka has been invited to the Group of Eight (G8) Summit at Camp David near Washington by U.S. President Barack Obama, who stated in the invitation that the session will focus on ways to “increase private sector investment in agriculture and scale innovation.”

This reflects the growing recognition on the world stage that Africa plays an increasingly important role in the global economy, and that the African Development Bank is a leading contributor.

Saturday's meeting will include leaders of the G8 nations, several African Heads of State, executives from multinational companies, African private sector leaders and President Kaberuka representing the AfDB. It's the first time that an AfDB chief has been invited to a residence of the U.S. President.

During his visit to Washington, President Kaberuka will also participate in a symposium on food and nutrition security and attend a reception hosted by Hillary Clinton, the U.S. Secretary of State.

The African Development Bank has been instrumental in promoting sustainable economic growth and reducing poverty on the continent for nearly 50 years. Its membership includes 53 African and 24 non-African nations.

The Bank was established in 1964 to stimulate and mobilize internal and external resources to promote investments as well as provide its regional member countries with technical and financial assistance.

Distributed by the African Press Organization on behalf of the African Development Bank.

For more on the African Development Bank, go to http://www.afdb.org

EL FASHER (DARFUR), Sudan, May 17, 2012/African Press Organization (APO)/ -- UNAMID Media Brief /17 May 2012

Darfur Women Legislatures call for unified laws to address gender issues

The Darfur Women Legislative Caucus and UNAMID today concluded a three-day advocacy seminar. The forum was aimed at assessing the challenges faced by women in Darfur, identifying gender gaps in the Constitution and Sudanese laws, and examining relevant international and regional human rights instruments for effective sexual and gender-based violence (SGBV) prevention and response in the region.

More than forty-five women representatives from North Darfur state and local level legislatures, including members of the constitutional committee, the judiciary, the bar association and various Government institutions attended the session that took place in El Fasher, North Darfur.

Ms. Halima Tibin Bosh, the North Darfur Wali's (Governor) Advisor on Women and Child Affairs and the Deputy Chairperson for the North Darfur State Committee on SGBV, noted that the seminar will strengthen women legislators' role in the State Legislative Council and enhance their capacity in promoting and protecting human rights of women and girls in North Darfur.

At the end of the conference, the participants highlighted a number of recommendations aimed at addressing issues of sexual and gender-based violence. They called on a review of relevant international conventions, and protocols on women and children signed by the Sudan to be streamlined into national laws and policies, as well as strengthening the Ministry of Justice in addressing issues of SGBV including the recruitment of social workers and psychologists to assist victims in the courts.

SAO TOME, Sao Tomé, May 17, 2012/African Press Organization (APO)/ -- A team from the International Monetary Fund (IMF), led by Mr. Ricardo Velloso, visited São Tomé and Príncipe during May 4-17, 2012, to discuss a medium-term economic program that could be supported by the IMF under the Extended Credit Facility (ECF).1

The IMF team held warm and fruitful discussions with Finance Minister Américo Ramos and Central Bank Governor Maria do Carmo Silveira and their respective senior staffs. The IMF team also met with other senior government officials, private sector representatives, and São Tomé and Príncipe's main development partners.

At the conclusion of the visit, Mr. Ricardo Velloso, the IMF Mission Chief for São Tomé and Príncipe, issued the following statement in São Tomé:

“The IMF mission has reached staff-level agreement with the authorities of São Tomé and Príncipe on an economic program for 2012–15 that could be supported by the IMF's Extended Credit Facility (ECF) in the amount of SDR 2.59 million (about US.97 million). The staff-level agreement is subject to approval by the IMF's Executive Board, which is expected to consider the matter in July 2012.

“The medium-term economic program, anchored by the government's new National Poverty Reduction Strategy Paper, aims at fiscal, monetary, and financial stability. To achieve these objectives, the program contains measures to keep the domestic primary deficit in line with available non-debt-creating financing, while mobilizing additional domestic revenue for priority infrastructure and pro-poor spending. The program also includes an ambitious and realistic structural reform agenda to strengthen public finances as well as the frameworks for monetary policy, banking supervision, and anti-money laundering.

“São Tomé and Príncipe's economic performance in 2011 was good despite a challenging external environment. The rebound in economic activity continued and real gross domestic product (GDP) growth last year reached an estimated 5 percent. Inflation continued its downward trend and reached 8 percent (year-on-year) in April 2012, the lowest level recorded in ten years.

“Real GDP is projected to grow by 4½ percent in 2012, reflecting persistent global uncertainties and a slowdown in foreign-financed projects in the first half of the year. But growth is expected to accelerate to 6 percent per year over the medium term, reflecting an expansion in tourism, agriculture and construction.

“Annual inflation is projected to decline to low single digits by 2015 supported by the peg of the Dobra to the Euro, cautious government wage and price policies, continued fiscal prudence, and a vigilant and effective central bank.

“The IMF mission praised the authorities for their commitment to preserve hard-won fiscal prudence. It agreed with the government on the need to avoid commercial borrowing and instead focus on grants and highly concessional loans to finance development programs given São Tomé and Príncipe's still fragile external debt position.

“The domestic primary deficit will decline to 3 percent of GDP by 2014 through a combination of non-priority expenditure restraint and tax base enlargement. Customs and tax administration modernization is expected to create fiscal space for higher priority infrastructure and pro-poor spending.

“The IMF mission stressed the importance of finding a credible solution to the long-standing issue of cross-arrears between the Treasury, the state-owned water and electricity company, EMAE, and oil product importing company, ENCO. This will involve reconciling and certifying the stock of unpaid bills and unpaid fuel taxes, proposing an orderly clearing of those arrears, and developing a realistic plan to avoid this problem from recurring.

“The IMF mission welcomed the beginning of operations of the credit reference bureau. It also praised the central bank's continued efforts to de-dollarize the banking system and its success in requiring unprofitable banks to raise capital and all banks to raise their capital-to-risk weighted assets ratio to above 10 percent.

“While the IMF mission noted that in 2011 most banks turned a profit and credit growth slowed from the breakneck pace of the previous two years, it advised the central bank to monitor closely the effects on bank profitability and capital of the recent increase in non-performing loans, from 15 percent in September 2011 to 21 percent in March 2012.

“The central bank carried out on-site inspections of two commercial banks in 2011. The IMF mission encouraged the central bank to proceed as planned with two more on-site inspections in 2012, and to complete on-site inspections of the remaining three commercial banks in 2013.

“The IMF mission noted the authorities' strong commitment to addressing the deficiencies of São Tomé and Príncipe's anti-money laundering framework. This will include drafting the necessary amendments to the anti-money laundering law and sending those amendments to the National Assembly for approval, if possible, by end-2012, and strengthening the operations of the Financial Intelligence Unit with additional staff and training.”

1 The Extended Credit Facility (ECF) has replaced the Poverty Reduction and Growth Facility (PRGF) as the IMF's main tool for medium-term financial support to low-income countries. It provides for a higher level of access to financing, more concessional terms, enhanced flexibility in program design, and more focused, streamlined conditionality. Financing under ECF currently carries a zero interest rate, with a grace period of 5½ years, and a final maturity of 10 years.

LUANDA, Angola, May 17, 2012/African Press Organization (APO)/ -- A staff team from the International Monetary Fund (IMF), led by Mr. Mauro Mecagni, visited Luanda from May 2 to May 17, 2012 to conduct the 2012 Article IV Consultation and First Post-Program Monitoring Mission. During its stay, the mission met with Ministers and other senior government officials1, and representatives of the banking, business, diplomatic, and academic communities. The mission also had the opportunity to visit the provinces of Kwanza Norte and Malange.

At the end of the mission, Mr. Mecagni issued the following statement:

“The Angolan authorities' stabilization program supported by the 2009-2012 Stand-By Arrangement achieved its key objectives. Three years after the abrupt decline in world oil prices that severely affected its economy, Angola has attained: an improved fiscal position, a more comfortable level of international reserves, a stable exchange rate, and lower inflation. Domestic arrears have been settled. Significant progress has also been made toward improving fiscal transparency and accountability.

“Macroeconomic performance in 2011 was affected by oil production problems. Robust non-oil growth compensated for the oil sector decline, resulting in an overall real growth rate of about 4 percent. Inflation continued its gradual decline, to about 11 percent at the end of the year. The overall fiscal surplus increased to about 10 percent of GDP, in part helped by high oil prices. International reserves came to exceed US billion by the end of the year, a level equivalent of 6 months of 2012 imports.

“The pace of economic activity is expected to pick up in 2012, as oil production rebounds. Growth is projected to accelerate to about 8 percent. Economic activity in several sectors is benefitting from a scaling-up of public investment programs and from the settlement of past government arrears. Agricultural output growth is, however, being affected by an ongoing drought. On the policy front, the authorities are working to (i) strengthen the institutional setting for fiscal policies and incorporate the quasi-fiscal operations previously conducted by the state-oil company into the budget; (ii) make further progress in explaining the large cumulative residual in the fiscal accounts for 2007-2010; and (iii) modernize the framework for monetary policy and financial sector stability.

“Economic prospects over the next few years remain positive given current projections for oil prices and the strong reform momentum envisaged in the authorities' medium-term plans. Policymakers in Angola are appropriately focusing on three key issues:

• The economy of Angola is subject to uncertainty stemming from oil prices, oil production, and the still evolving institutional setting. These sources of volatility affect budget implementation, and can amplify the negative effects of stops and starts in public investment on the economy. To address this issue, the authorities are strengthening fiscal mechanisms to sustain the hard-won gains in macroeconomic stability and support the implementation of their ambitious development plans.

• The new foreign exchange law for oil companies will involve the shift of a large share of their financial transactions from offshore to domestic banks. This is expected to increase the scope for domestic financial intermediation and serve as a channel to promote increased competition and financial innovation. However, it may also result in a rapid expansion of banks' balance sheets. In order for the process of financial deepening to be sustainable, a significant strengthening of prudential supervision is advisable prior to the gradual implementation of the law.

• Building on existing efforts, economic policies need to continue enabling the structural transformation and diversification of the economy. To unlock Angola's vast economic potential and build momentum for inclusive growth, the authorities are encouraged to pursue policies that will bring about (i) further improvements in human and physical capital, by continuing to rebalance budget allocations toward social program and infrastructure investment; (ii) a continued decline in inflation; and (iii) a decisive improvement in the business environment and lower production and distribution costs, to enable a greater private sector contribution to economic development.

“Over the next few years, the authorities will need to address these issues against a global backdrop that is improving but where downside risks remain elevated. Several advanced economies are experiencing lower growth as a result of fiscal consolidation and bank deleveraging. These developments could indirectly affect Angola through lower export demand and increased investor risk aversion. In this context, the Angolan authorities recognize the need to balance a judicious scaling-up of public investment against the advisable accumulation of additional fiscal and reserves buffers.

“The IMF team takes this opportunity to thank the Angolan authorities for the excellent cooperation extended throughout the mission.”

1 Minister of State for Economic Coordination Manuel Domingos Vicente, Minister of Planning Ana Dias Lourenço, Minister of Finance Carlos Alberto Lopes, Minister of Economy Abrahão Pio dos Santos Gourgel, Minister of Commerce María Idalina de Oliveira Valente, Minister of Agriculture, Rural Development, and Fisheries Afonso Pedro Canga, Minister of Education Pinda Simão, Minister of Territorial Administration Bornito de Sousa, Minister of Public Administration, Labor, and Social Security António Pitra Neto, Minister of Urbanism and Construction Fernando Alberto de Lemos Soares da Fonseca, Central Bank Governor José de Lima Massano, Sonangol President Francisco de Lemos José María

YAOUNDE, Cameroon, May 17, 2012/African Press Organization (APO)/ -- An International Monetary Fund (IMF) mission, led by Mr. Mario de Zamaróczy, visited Cameroon during May 2–16, 2011 to conduct the 2012 Article IV Consultation. The mission met with Prime Minister Philémon Yang, Minister Secretary General at the Presidency Ferdinand Ngoh Ngoh, Minister of Finance Alamine Ousmane Mey, Minister of Economy, Planning, and Territorial Development Emmanuel Nganou Djoumessi, several other ministers, the National Director of the Bank of Central African States (BEAC), other senior officials, and representatives of the private sector, labor unions, civil society organizations, and development partners. The discussions focused on recent economic and financial developments, the execution of the 2012 budget, and the economic outlook for 2012 and beyond. At the end of the mission, Mr. de Zamaróczy issued the following statement:

“The recovery of the Cameroonian economy has continued following the 2008-09 global crisis, with economic growth estimated at 4.2 percent in 2011, and inflation contained below 3 percent. Economic prospects remain favorable and growth is projected to reach 4.7 percent in 2012, mainly on account of a rebound in oil production and exports, an increase in public investment on large infrastructure projects, and ongoing initiatives to improve productivity in agriculture. Inflation is expected to remain subdued in 2012, mainly because of efforts to increase food supply and continuing government subsidies on fuel and some utilities.

“During 2011, oil revenue was higher than expected, past payment obligations were cleared, and more flexibility was achieved in cash flow management through the issuance of securities. However, current expenditure exceeded budgetary allocations and new unsettled payment obligations were accumulated. Efforts were made to strengthen tax and customs administration, improve public expenditure management, and deepen the dialogue with the private sector through the Cameroon Business Forum.

“The 2012 budget is expected to benefit from windfall oil revenue generated by current high international prices. However, the execution of the budget could be hampered by the carryover of unsettled payment obligations and the higher-than-budgeted cost of fuel subsidies. In addition, it is uncertain whether the full amount of the planned bond issuance will be absorbed by the domestic and regional financial market. The budget could also come under pressure from contingent liabilities from the restructuring of distressed banks and from assistance to loss-making public enterprises. To ensure that budget execution will not lead to further accumulation of domestic arrears, the mission recommended to strengthen cash flow management and to reprioritize expenditures, taking into account the financing that may realistically be mobilized.

“To preserve fiscal and debt sustainability over the medium term, it is important to reassess the fuel subsidy policy. A progressive elimination of the fuel subsidy could be accompanied by the setting up of a targeted social safety net to protect the most vulnerable segments of the population. The authorities should improve spending commitment controls to prevent further accumulation of domestic arrears and look for concessional resources to finance public investment, whenever possible. It is necessary to start rebuilding fiscal buffers. The mission supported the authorities' decision to assess contingent liabilities fully and strengthen the monitoring of the performance of public enterprises.

“The mission urged the authorities to conclude the resolution process of distressed banks swiftly to preserve financial stability and minimize costs to the public finances. It emphasized the need to engage the Central African Economic and Monetary Community (CAEMC) authorities to enhance the regional supervisory body's resources and to further define rules and decision mechanisms for the treatment of troubled banks. The mission also encouraged the authorities to speed up the implementation of reforms to remove obstacles to accessing bank credit.

“To unlock Cameroon's growth potential, the mission agreed with the authorities that it is critical to reduce the constraints to higher and more inclusive growth by continuing to address infrastructural bottlenecks, raise the quality and efficiency of public spending, and improve the business climate and governance. It is also important to accelerate regional integration. The mission was encouraged by the authorities' commitment to take action to help achieve these objectives.

“The IMF's Executive Board is expected to examine the report on the 2012 Article IV Consultation with Cameroon in July 2012. The mission would like to thank the authorities for their warm hospitality, excellent cooperation, and constructive dialogue.”