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West Africa SWAC/OECD, No. 1, January - March 2009 > www.westafricaclub.org Responding to the global economic crisis A high cost of living despite record agricultural production International negotiations Challenges for democracy Observer

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West Africa

SWAC/OECD, No. 1, January - March 2009 > www.westafricaclub.org

Responding to the global •economic crisisA high cost of living despite •record agricultural productionInternational negotiations•Challenges for democracy•

Observer

The Sahel and West Africa Club

The OECD has considerably deepened its relationship with Africa. The

OECD’s policy dialogue is also developing at a regional level, in particular

through the work of the Sahel and West Africa Club (SWAC) which plays

a bridging role as an interface between West African actors and OECD

member countries. Administratively attached to the OECD, the SWAC is

led by a Secretariat based in Paris, which is supported by a network of

partners and experts from West Africa and OECD countries.

Its specificity lies in its approach, which combines direct field-involvement

with analyses of West African realities. Together with regional institutions,

governments, business and civil society organisations, the SWAC

promotes the regional dimension of development, supports the formulation

and implementation of joint or intergovernmental policies and thereby

contributes to mobilising and strengthening West African capacities.

If you wish to contribute to SWAC activities, build on its expertise or implement new initiatives:

• Economicanalysis,prospectivethinking:[email protected] (Director)

• Regionalco-operation,localdevelopment:[email protected] (Deputy Director)

• Ruralenvironment,agriculture,foodsecurity:[email protected] (Head of Unit)

• Governance,peace,security:[email protected] (Head of Unit)

West Africa Observer - SWAC/OECD, No. 1, january – march 2009

2

Summary

Responding to the global economic crisis

WILL THE CRISIS SPEED UP REGIONAL INTEGRATION? 6•

THE STOCK AND BANK MARKETS IN TROUBLED WATER 6•

REACTIVENESS AND DETERMINATION TO REDUCE GOVERNMENT CONSUMPTION 7•

THE FEAR OF DOMESTIC DEBT WITHIN THE UEMOA ZONE 7 •

ARE LONG-TERM INVESTMENTS UNDER THREAT? 7•

CONCERNS REGARDING DIASPORA REMITTANCES 8•

MONETARY INTEGRATION TRUDGES ALONG, WHILE BANK INTEGRATION SPEEDS UP 8•

A high cost of living despite record agricultural production

RESPONSES TO SOARING FOOD PRICES 11•

International negotiations

MIGRATION: NEW BILATERAL AGREEMENTS 12 •

REGIONAL EPA: WILL THE JUNE 2009 TARGET BE MET? 14•

Challenges for democracy

THE RESURGENCE OF COUPS D’ÉTAT & RENEWAL OF POLITICAL LEADERSHIP 15•

FRAGILITY OF THE STATE & SPREAD OF POLITICAL VIOLENCE 16 •

CRIMINAL INTRUSION OF TERRORISM AND THE DRUG TRADE 17 •

In brief

Contents

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9

12

15

18

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West Africa Observer - SWAC/OECD, No 1, january – march 2009

While an increasing number of OECD countries are facing

demographic decline and an ageing population, West Africa’s

population is growing rapidly. From 315 million inhabitants in 2007, the

population should reach 480 million by 2030 and between 650 and 700

million by 2050. The population is mostly young, indeed very young (60%

are under 25 years of age) and will remain so until 2050. Certainly, the

growing number of young people could be a valuable resource but it will

also increase pressure on the environment and social services.

This demographic trend will have a structural impact on all sectors

including agriculture, education, labour, etc. This analysis of current

trends needs to be placed into perspective within this structural

context.

Despite decades of crises and conflict, much has changed. Democracy

has progressed more than regressed and decentralisation policies overall

underway. The urban network is increasingly dense; the informal economy

and the private sector have demonstrated a remarkable capacity to adapt.

Civil society organisations and the media have significantly developed

over the last years.

West Africa remains one of the poorest and most vulnerable regions of

the world. With the exception of Cameroon, Cape Verde, Côte d’Ivoire,

GhanaandNigeria,themajorityofWestAfricancountriesareclassified

as “Least Developed Countries” (LDC). Nigeria (over 50% of the region’s

GDPwithUSD228billionin2007)istheregion’seconomicleader.

>> learn more : http://www.oecd.org/swac

West Africa, a dynamic region

4

SummaryIn the face of the global economic crisis, West Africa is reacting. The

three main central banks – the Central Bank of Nigeria (CBN), the Central

Bank of West African States (BCEAO) and the Central Bank of Central

African States (BCEAC) – are injecting cash, while most governments are

adopting measures to reduce State expenses. Clouds are massing on the

horizon of foreign trade, investments, domestic debt and remittances from

emigrants. With a view to overcoming these problems, some economists

are advocating an increase in public borrowing, but without falling into

the debt trap. Despite this gloomy context, regional banking integration

is moving ahead.

High food prices despite an excellent harvest are giving rise to fears for

the food security of the poorest people, while offering opportunities for

producers. The memory of the 2008 “hunger riots” is leading governments

to reduce pressure on purchasing power in the short term. At the same

time they continue to support programmes to increase production and

productivity. The balance between these two goals depends on regional

regulation of the market. Hence the importance of the common external

tariff (CET), the terms of which continue to impede negotiations of the

regional Economic Partnership Agreement (EPA) between the European

Union and West Africa. The West African common market is the

cornerstone of the EPA, but cannot exist if the free movement of people

is not facilitated. While increasing numbers of bilateral agreements to

manage migration are being made between European and West African

countries, the impact of these bilateral agreements on intra-regional

mobility is not adequately addressed. ECOWAS is calling for regional

consistency in this matter.

Lastly, the political situation combines some encouraging signs (the

changeinleadershipinGhana,thelocalelectionsinSenegal)withvarious

challenges fordemocracy (thedoubleassassination inGuinea-Bissau,

Tuareg irredentism). Cross-pollination between terrorism and the traffic

in narcotics, arms and human beings is blurring the line between political

and criminal violence. In the face of a social demand exacerbated by the

crisis, new political figures are emerging, whether or not they are brought

to the fore by elections.

Normand Lauzon, SWAC Director

The West Africa Observer

This quarterly review analyses West African news on major

political, economic and social trends from a regional point

of view. It summarizes and puts into perspective important

events and developments. Topics are chosen according

to the concerns of those with whom the SWAC team works:

leaders of West African regional or government organisations,

development partners, NGOs and associations, local actors

and researchers, civil society, etc. The “In brief” section

examines other significant developments which have occurred

during these three months.

Our work draws on many existing information sources. We

believe: “The more information is available, the more it needs

to be synthesised”. The West Africa Observer is intended to

become a tool that provides easy and quick access to key

information on the region.

About the West Africa Observer

Your comments

This section belongs to you! We will publish selected

comments and suggestions in our next issue. We hope

that you will provide suggestions which will refine this concept

and help us prepare forthcoming issues.

Contact: >> [email protected]

5

West AFrica is responding to the Crisis...

Facing-up to the global economic crisis

Africa had already entered the crisis in the first half of 2008 following

therise in foodandfuelprices.Giventhedownturn in theglobal

economy, the IMF estimates that the growth rate of sub-Saharan Africa

will be 3.25% in 2009, as against an estimate of 5.25% some months

earlier.

The contagion occurs through the reduction in capital flows and a

decrease in the prices of mineral raw materials (oil1, gas, metals) as well

as of certain food and plant products since the autumn of 2008, especially

coffee, cotton and timber. According to the World Bank, Nigeria will be

themostseverelyaffected,followedbyChad,Guinea-Bissau,Cameroon,

Côted’Ivoire,GhanaandGuinea.Thepresentsituationismorefavourable

to fuel importing countries, which suffered from high global prices and

the impact on inflation in 2007 and 2008.

After the structural adjustment policies focusing on the balancing of public

accounts, some economists are advocating a reasonable increase in

public borrowing in order to implement a countercyclical policy. “Public

demand must supplement private demand; African administrations and

public enterprises must thus be financed by two heterodox but classic

methods: putting the State into debt and providing it with money facilities.

Putting States into debt is again possible thanks to the spectacular debt

relief of the 2000s, which reduced African external debt to a quarter

ofGDP–a situationmuchbetter than that of all themajordeveloped

countries.”2

Will the crisis speed up regional integration? Recent interventionsby theBCEAOand theBCEACdemonstrate that

joint responses are possible. The meeting organised by the IMF in Dar-

es-Salaam in March placed regional integration on the list of priorities

for the continent, alongside agriculture and infrastructure: “Regional

integration can sharpen regional economic opportunities through trade

and movement of goods and people which could become a major

motor for African economic development in the future. This is especially

important as developed country markets are likely to remain relatively

closed for the foreseeable future. African states should look beyond

narrownational interestand theAfricanUnionandRegionalEconomic

Communities need to be strengthened.”3

1 Oil prices remain relatively high: at more than USD 50 a barrel, the current price of oil is higher than the historical average..2 “Lever les tabous”, advocating a plan for an African revival, by Lionel Zinsou, Chairman of the Advisory Council of CAP Afrique, http://www.capafrique.org3 Intervention by Mr. Trevor Manuel, South African Finance Minister.

The stock and bank markets in troubled water

In Nigeria, market capitalisation of the Nigeria Stock Exchange

(NSE) has fallen by 60% over the past 12 months, decreasing from

12 600 billion naira to 4 520 billion naira by the end of March 2009. In

January alone, investors lost about 2 800 billion naira – enough to force

the NSE’s managers to resign.

The global crisis comes at a very particular moment for Nigeria, whose

banks, now restructured and boosted by South African and Chinese

investors, are embarking on the conquest of new markets. It is hard to

get a clear picture of the situation. The Central Bank of Nigeria (CBN)

ordered an audit at the beginning of April. The fall in the stock exchange

would appear to have caused a loss of 900 billion naira (USD 6 billion) for

the banks (although without threatening their liquidity ratio). According to

Mr. Lamido Sanusi, First Bank of Nigeria’s Chief Executive and Managing

Director, “The bulk of the problems that we are facing are self-inflicted.”

(Financial Times, 2 April 2009). If the banks are experiencing liquidity

problems, it is less because of “toxic assets” (which undoubtedly exist)

than because of the collapse of the stock exchange, the drop in oil prices

(with fewer cash deposits) and the weakening of the national currency

(withdrawal of investments in naira) as well as the repatriation of the

capital of European and American banks. In March, the CBN announced

the injection of about 955 billion naira to compensate for the reduction

in the banks’ liquidity. There are regular calls for the creation of a new

financial supervisory authority.

The Nigerian economy therefore has a shortfall of US dollars, reserves of

which were 47 billion in March 2009, as against 64 billion in August 2008.

The naira lost 28% of its value against the US dollar between November

2008 and March 2009. On 21 March, the CBN announced a set of

measures to reduce the gap between the official and parallel markets.

On the same day, the CBN proposed a reduction in interest rates, which

should not exceed 22%.

The Ghana Stock Exchange (GSE) and the UEMOA Regional Stock

Exchange(BRVM,Abidjan)arealsoindecline.However,Ghanaandother

countries of the West African Economic and Monetary Union (UEMOA)

are less connected to the international financial market.

6

The situation of the UEMOA banking system seems relatively

good, and the region possesses exchange reserves. According to

Mr. Hamza Ahmadou Cissé, Director of the UEMOA Commission

President’s Cabinet, “The Union has formidable foreign exchange

reserves. The cover rate of the monetary base was greater than 125%

at the end of October 2008. Similarly, the evolution of lending to the real

economy was relatively favourable despite crowding out which took

place in the second half of 2008 by public loans issued to deal with the

effects of the food and energy crisis. As of September 2008, banks have

been rather tepid regarding the issuing of long-term credit, but that is

related to the wariness of international bank branches located in the zone

fearing the effects of the crisis on the parent entity. Of course, we have

to worry about the recessionary effects of a slowdown of financial flows

from the international financial market as well as parent entities of some

banks draining bank liquidity in the zone. Such changes will compromise

production capacities in the medium-term through their impact on

investment.”1

1 Interview published in the SWAC Newsletter, March 2009 (Original version: French).

The fear of domestic debt within the UEMOA zone At the Ministerial meeting in Abidjan on 27 March, the UEMOA

Council noted that the situation of public finances is characterised by

accumulations of arrears in domestic payments, affecting the situation

of the banking system in some member States. The ministers asked

the BCEAO to carry out an assessment of the various States’ domestic

arrears. Although this situation cannot be linked to the onset of the global

crisis, the latter could hamper governments’ capacity to honour debts to

their suppliers. In January, the Department of Forecasting and Economic

Studies of the Senegalese Ministry of Economy and Finance commented,

“Business leaders are forecasting cash-flow problems caused by

difficulties in recovering debts, although they do place great hope on the

settling of domestic debt as announced by the authorities.”1

1 Monthly note on the economic situation, January 2009: http://www.dpee.sn

Reactivity and determination to reduce government consumption

The regional institutions of the CFA franc zone are reacting. The

BCEAO is setting up a supervisory unit to monitor the banking system

and is determined to maintain an optimal liquidity level. On the part of

the Economic and Monetary Community of Central Africa (CEMAC), a

ministerial meeting took a series of steps at the beginning of March:

lowering of the key interest rate of the Bank of Central African States

(BEAC), tax relief for businesses in the timber sector, reduction in import

duties on industrial equipment for mining companies, a proposal to create

a fund within the Central African States Development Bank (CASDB) to

support sectors affected by the crisis, and mechanisms providing access

to credit for small and medium-scale enterprises and industries.

In addition, most of the governments are pursuing retrenchment

policies to reduce State spending. Faced with growing inflation (20.5%

inMarch, the highest in five years), a deficit of 14% inGDP, growing

debt, the Ghanaian cédi depreciated against the US dollar, the new

PresidentofGhana,JohnAtta-Mills,hasprunedthenumberofministries

(from 27 to 23) and is promoting a “modest State” in an effort to reverse

trends. On 10 March, the Nigerian President, Umaru Yar’Adua, signed

– “with reservations” – a 2009 budget with a major deficit and the

borrowing of USD 300 million to cover this deficit and ensure payment

of debt servicing. He also promulgated some restrictive measures: a

50% reduction in travel allowances for officials, suspension of foreign

training for civil servants, a freeze on purchases of new office sites and

vehicles and the creation of a presidential committee to monitor budget

implementation. Similar measures were announced by the Burkina Faso

Prime Minister Tertius Zongo (for example, improved management of the

State’s 23 000 vehicles).

Are long-term investments under threat?According to the most recent World Bank estimates, worldwide flows of

foreign direct investments (FDIs) decreased by more than 20% in 2008.

Contrary to this trend, FDI inflows into Africa increased and reached

more than USD 60 billion in 2008, which is due to the continuation of

many mining projects. There should be no question of shelving ongoing

projects, especially in Nigeria. Despite the economic downturn, oil prices

remain relatively high. The viability of off-shore projects, combined with

international companies’ need for access to oil, makes these companies

hesitate to withdraw, for fear of not being able to return later. In the mining

sector,theArevaGroupsignedanagreementinJanuary,allowingit to

exploit the uranium deposits at Imouraren in Niger, the largest deposits

in Africa and the second largest in the world. China Union, a Chinese

company, is about to sign a contract to exploit the Bong iron mines in

Liberia (up to USD 2.6 billion, the largest investment in Liberian history).

Arcelor Mittal’s iron exploitation project in eastern Senegal has been

deferred.

The interest of Arab capital (sovereign funds) in Africa had increased in

recent years. These investors, who have little interest in raw materials,

have made their presence felt in West Africa, with the building of

housing, dams, cement works and a tourist complex in Senegal. Dubai

Ports World is already managing the port of Dakar. The Zain (ex-Celtel)

telecommunications group is present in 16 African countries and has

been acquired by KSC of Kuwait. Sovereign funds now account for part

ofthecapitalofseveralbanksinNigeriaandGhana.Sincethestartofthe

crisis, these sovereign funds have been moving their investments to less

risky placements and/or their domestic markets. Sovereign funds from

Qatar,KuwaitandRussiathusintervenedtopropuptheirowncountries’

stock markets in October.

7

West AFrica is responding to the Crisis...

Concerns regarding Diaspora remittances

According to recent World Bank forecasts, Diaspora remittances

to developing countries will decrease by between 5 and 8%

(USD 305 billion to USD 280–290 billion) between 2008 and 2009. Flows

to sub-Saharan Africa could also decrease by about 5% to USD 19 billion

in 2009.

Some observers are worried. According to Mr. Abdoulaye Diop,

Senegalese Minister of Economy and Finance, “The persistence of

the crisis will bring with it a loss of jobs in host countries. Already some

emigrants who were doing two jobs in order to send money home have

started to lose one of them. It is estimated that remittances from Senegalese

emigrants will fall by close to 10%.” The impact of the decrease in

remittances will be particularly significant for Senegal and Nigeria; Cape

Verde is even more vulnerable as remittances from its Diaspora account

foralmost10%ofGDP.TheimpactofthecrisisonDiasporaremittances

will be further examined at the International Conference on “Diaspora

for Development”, organised by the World Bank in Washington, DC on

13 and 14 July.

Riding high on petrol revenue and increased capital from China and

South Africa, these groups are now spearheading a strategy to conquer

the West African market.1 Even if the world crisis seems to have shaken

confidence momentarily and reduced the financial base of these groups,

Diamond Bank, one of the largest Nigerian banks and already present in

Benin, announced in the first weeks of 2009 the opening of branches in

Benin, Côte d’Ivoire, Senegal and Togo. The cost of setting up Diamond

Bank Senegal in Dakar (opening at the end of March) is estimated at CFA

francs 25 billion. Another Nigerian group, United Bank for Africa (UBA),

already well established in Côte d’Ivoire, announced plans to expand its

presence in the UEMOA zone.

1 Following the example of Asia and the Middle East, the federal government’s Financial System Strategy 2020 aims to make Nigeria an “international financial centre” by conquering the West African and African markets.

Learn more

Revised Outlook for Remittance Flows 2009-2011: Migration and •Development Brief 9, World Bank, 23 March 2009

http://www.worldbank.org/prospects/migrationandremittances

In December 2008, the Governor of the Central Bank of Nigeria,Mr. Chukwuma Soludo, stated, “The second common currency of

ECOWAS, the eco, could come into circulation by 1 December 2009.”

At the close of the first quarter of 2009, there was no concrete indication

that this ambition would be achieved. As a first step toward a common

currency for all ECOWAS countries, the West African Monetary Zone

(WAMZ)unitestheGambia,Ghana,Guinea,Liberia,NigeriaandSierra

Leone. Postponed year after year, this goal is still more theoretical than

practical. The impact of the crisis on national economies over forthcoming

years is likely to move the prospect still further into the future.

While the project of a common currency is at a standstill, the regional

banking scene seems to be in an accelerated process of integration,

partly as a result of the restructuring of the Nigerian banking system,

initiated by the federal government four years ago. The number of banks

has been reduced from 89 in 2004 to 24 today, resulting in the emergence

of powerful groups.

Monetary integration trudges along, while bank integration speeds up

8

West AFrica is responding to the Crisis...

Ecobank1 secured an increase of USD 1.5 billion in its capital through

an appeal to public savings launched simultaneously on the Abidjan

RegionalStockExchange, theGhanaStockExchangeand theNigeria

Stock Exchange. Lastly, the West African Development Bank (BOAD),

a joint institution to finance development in the UEMOA countries,

announced that it was doubling its activities and opening its capital to

new operators, particularly Nigerians.

1 Created with the support of ECOWAS, Ecobank was intended as a regional banking institution that would be an instrument for the promotion of regional economic integration. ECOBANK has branches in 25 African countries, including all ECOWAS member countries.

A high cost of living despite record agricultural production

West African banks are not the only ones seeking to exploit the potential

of the regional market. South African and particularly Moroccan groups

have joined in. In March, the Moroccan Attijariwafal Bank became the

leader of the Senegalese market when it purchased 79% of the capital

of the Banking Company of West Africa (CBAO). Acquisition projects are

also being negotiated in Niger and Mauritania.

This movement towards integration led by the private sector has the

advantage of creating financial channels and regional transaction

instruments, between Nigeria and Ghana on the one hand, and the

CFA franc zone on the other. It thus brings about increased exchanges

and will facilitate the development of region-wide enterprises.

The definitive assessment for the 2008/09 cereal harvest indicates a

regional production of 56 million tonnes, meaning an increase of 17%

over 2007/08 There have been substantial increases in rice production

(44% on average) in almost all the Sahelian countries. Favourable climatic

conditions, attractive prices and public policies promoting production

explain this remarkable performance.

However, the cost of basic commodities is still very high in almost all the

countries. The regional consultative meeting on the food and nutritional

situation in the Sahel and West Africa, held by the CILSS in Cotonou from

11 to 13 March 2009, noted that the prices of millet, sorghum and maize

had reached exceptionally high levels during the first quarter of 2009.

Increases of between 15% and 35% over the same period of the previous

year were seen in all markets. In January, the price of millet was 25%

higher in Ouagadougou (Burkina Faso) and 41% higher in Niamey (Niger).

In some cases, the 2005 records were broken (see graph).

It appears that the trauma of 2008 is leading some producers to keep a

large part of their production, while traders are buying in order to stockpile

grain, which will then be sold during lean months when prices will be

higher. Lastly, many countries have embarked on the task of replenishing

national stocks after the many calls on them in 2008. Moreover, some of

Nigeria’s states have been building up new stocks since 2008.

After falling during the last months of 2008, world cereal and oilcrop prices

started to rise again in January and February. Wheat and maize surpluses

countered this trend in March, while rice prices kept rising. This is partly

due to the fact that three major rice-producing countries (China, Thailand

and Vietnam) have maintained restrictions on rice exports. In January,

imported rice was selling at 50% to 60% more than a year previously in

Burkina Faso and Niger. This rise has continued, despite measures by

governments to support local agricultural production

The main issue in West African agriculture is demographic. In 1960, the region had 90 million inhabitants, 20% of whom were urban. Today, there are about 320 million and nearly half of them are urban dwellers. The age pyramid (65% under 25, compared with less than 30% in developed countries) increases the challenge. The volume of agricultural production is not an adequate indicator. The situation at the beginning of this year confirms the seriousness of the price-linked problem of access to food.

A high cost of living despite record agricultural production

9

These high prices at the beginning of the marketing period raise the

fear of much greater inflationary trends during the lean period, which

starts in June. The grain-livestock terms of trade could reach disastrous

levels for livestock breeders, especially those in the Sahelian zone and

north-eastern Nigeria. A food crisis comparable to that of 2005 could

then arise, affecting the same vulnerable groups: low-income urban

households and livestock breeders in the northern Sahel.

The decreasing global agricultural harvests forecast for 2009 could

aggravate the already tense situation on West African markets. In its

February 2009 report “Crop Prospects and Food Situation”, FAO states

that 2009 world cereal production will be less than in 2008, mainly due to

the reduction in major producer countries (Europe and the United States).

This reduction is a result of the higher cost of inputs and anticipated lower

prices. In Asia (especially China and India), half the areas dedicated

to maize are affected by drought (especially in northern China) and

inadequate rains (in India). The decrease in world cereal production

could aggravate existing tension in West African agricultural markets, in

particular by increasing the risk of stockpiling. Does Africa hold the future for rice farming?

“I am convinced that Africa holds the future for rice farming. Because this continent, unlike Asia, has

a great untapped potential, which is benchmarked by its large land distribution and its barely used water resources (Zambia, DRC, Sierra Leone, Mali, Senegal, etc.). In sub-Saharan Africa, there are 130 million hectares of lowlands including the 3.9 million only under cultivation. Meanwhile in Asia, the challenge is not about increasing rice areas but rather about maintaining them. The competitiveness of local rice production in sub-Saharan Africa is now a fact. This can be demonstrated by comparing yields achieved in Thailand and Vietnam with yields recorded in Senegal, Mali and Niger. Stereotypes regarding our cost and quality competitiveness are rather beside the point.

Africa needs to turn things around by overriding the emergency management logic to favour a genuine rationalization of its thought on the future and by taking concrete recovery steps. Viewed in this way, this crisis is rather an opportunity to think out of the box and act differently to feed ourselves on an indigenous and sustainable basis.”

Papa Abdoulaye Seck Director General, Africa Rice Center (WARDA)

Source : http://www.pambazuka.org/fr/category/comment/47625

Initiatives promoting food security and the regional market

The beginning of 2009 launched an intense process of

formulation of National Agricultural Investment Programmes

(NAIPs) and the RegionalInvestmentProgrammeforAgriculture

(PRIA).

As a major tool of the ECOWAS Agricultural Policy (ECOWAP)

and the NEPAD Comprehensive Africa Agriculture Development

Programme(CAADP),PRIAiscomposedofsixfocusareas:

Improved water management1.

Sustainable development of farms 2.

Improved management of other shared resources 3.

Development of agricultural value chains & promotion 4.

of markets

Prevention and management of food crises and other 5.

natural calamities

Institutional capacity-building6.

Framework papers (for each member country and the region as

a whole) will be developed and made available by June, so that

discussions can be held with technical and financial partners in

November.

Guidelines on livestock development prospects and the

transformation of the livestock chain, adopted by ECOWAS

Ministers of Livestock, Trade and Security in February 2009, are

also an important component in the region’s campaign to ensure

food security.

A high cost of living despite record agricultural production

10

A high cost of living despite record agricultural production

Impact of bio-fuels

The volume of cereals used to produce bio-fuel is estimated at

104 million tonnes – 22% more than in 2007/08. However, this

growth is lower than previously forecast, because of the slowing down in

global economic activity. In 2009, 4.6% of world cereal production will be

devoted to bio-fuel.

West African governments are continuing their efforts to deal with

the rise in prices, either in the form of fiscal measures (suspension

of customs duties and value added tax) or in the form of targeted social

activities (subsidies for basic commodities). Apart from these short-

term responses, some countries have formulated medium-term plans to

boost production: subsidies and/or free distribution of agricultural inputs,

facilitated access to loans (preferential interest rates) and programmes to

increasericeproduction(forexample,theRiceInitiativeinCôted’Ivoire,

Ghana and Mali; and the Great Agricultural Offensive for Food and

Abundance[GOANA]inSenegal).

In case of a food crisis, countries are often tempted to keep provisions

within the country by closing borders and prohibiting exports. Cereal

stockpiling measures in countries aim above all to soothe the general

public. They have little impact on the veritable flows of goods and stress

the need for a regional approach to this problem.

The ECOWAS Commission is focusing efforts on its “RegionalOffensive

for Food Production and against Hunger”, adopted in June 2008 by

theConferenceofHeadsofStateandGovernment.Thisoffensive,which

also promotes co-ordination of national policies and regional initiatives,

set itself three objectives:

Rapidandsustainablegrowthinfoodproduction1.

Structuring of agro-food value chains and regulation of markets2.

Food and nutritional security for vulnerable groups 3.

Apart from implementation of the Regional Investment Programme for

Agriculture (PRIA > see box, page 10), the most important regional

initiative is undoubtedly the group purchasing project (especially for rice)

on the world market. A working group, comprising the ECOWAS Bank

for Investment and Development (EBID), Ecobank and the International

Trade Centre, is working on financing mechanisms and the setting up of

a joint platform for West African importers and Asian exporters.

Responses to soaring food prices

Although West Africa’s production may be insignificant at this time relative

to the world market and difficult to quantify, the region’s countries seem

determined to benefit from this new and promising market. In almost all

West African countries, large bio-fuel production schemes are being

negotiated with multinational companies.1

1 “Green fuels for development?”, SWAC Briefing Note No. 2, September 2008 http://www.oecd.org/swac/publications

Are there good strategies to make the prices of local or imported food products affordable while stimulating local production?

Last year’s “hunger riots” are still fresh in people’s minds and are

leading governments to carry out short-term actions to reduce

pressure on the purchasing power of the most vulnerable consumers, while

more long-term programmes aim at a steady growth in local production.

These two tactics may clash, not only because of the dilemma of “low

prices for consumers or high prices for producers”, but also because of

the volatility of prices. Very high prices one year, then very low the next

year, in the long term satisfy neither purchasers nor sellers, and neither

productive investment nor the social imperative. The issue is thus that of

“market regulation”. The 2005 food crisis confirmed that the problem is

regional in character.

Learn more

“Crop Prospects and Food Situation”, No. 1, February 2009, FAO •http://www.fao.org/spfs/spfs-home“A paradox: good harvest forecasts and exceptionally high •cereal prices in West Africa”, Food Security Information Note (FOSIN), Food Crisis Prevention Network (RPCA), February 2009 http://www.food-security.net Review “• Grain de sel”: “High prices: opportunities and challenges for African producers”: http://www.inter-reseaux.org

11

While Algeria, Libya and Morocco indicated their refusal to sign

readmission agreements in the framework of the partnership set

up with the EU1, new bilateral agreements between European and West

African countries were signed in the first quarter of 2009:

Burkina Faso – France• (January): agreement for the joint management

of migratory flows and support for development projects; Benin,

Cape Verde and Senegal have already signed similar agreements;

The Gambia – Spain • (March): collaboration in combating illegal

immigration (training of police and donation of surveillance

equipment such as patrol boats and surveillance equipment); at the

same time, the two countries signed an umbrella agreement on co-

operation, focusing mainly on educational projects;

Nigeria – Italy • (March): letter of agreement and launching of a two-

year pilot programme, with Interpol’s technical support, to combat

illegal immigration, human trafficking and transnational crime.

1 These agreements are intended to send clandestine immigrants arrested on European soil back to their country of origin or transit. They also state that rejected asylum seekers should not be sent back to the European country of entry, as is the case at present, but directly to their country of origin and transit.

Migration: new bilateral agreements

international Negotiations

Learn more

Migration Gateway on Euro-African Dialogue• http://dialogueuroafricainmd.net

International Migration Institute, Oxford University• http://www.imi.ox.ac.uk

Discussions between France and Mali were continued in January, but

have not yet been concluded. On this occasion, the former Minister of

Foreign Affairs of Mali, Mr. Thiébilé Dramé, pleaded for a common African

and West African policy.

It is true that the thickening of the web of bilateral agreements (see

graph) is in itself a call for greater co-ordination. The text on a common

approach on migration adopted by the ECOWAS Heads of State and

GovernmentinJanuary2008advocates“Making the bilateral agreements

linking the various ECOWAS member States and third party countries

consistent with the community texts and protocols of ECOWAS”, while

stressing that any restrictions on intra-regional mobility (which could

possibly result from the implementation of bilateral agreements) would be

harmful to West African regional construction.

The web of bilateral agreements related to readmission between EU member states and African countries

during the 1990s June 2008

The bigger the circle, the denser the Euro-African web of agreements related to readmission in which each country depicted is involved.

Source:Cassarino,J-P (2009), “TheCo-operationonReadmissionand

EnforcesReturnintheAfrican-EuropeanContext”,in“Regionalchallenges

of West African migration : African and European perspectives”,

West African Studies, SWAC/OECD (see page 13)

12

A common visa for the UEMOA zoneAt the UEMOA Heads of State Summit in March 2009, member countries adopted an additional Act to the UEMOA Treaty regarding the free

movement of nationals of third countries. This Act establishes a visa along the same lines as the Schengen visa. A draft proposal will be

submitted to the Council of Ministers in June 2009. The process will be implemented in two steps:

June 2009 - end 2010: mutual recognition of national visas;1.

Beginning 2011: one community visa.2.

ECOWAS member countries and non-UEMOA member countries are not concerned.

Their citizens will continue to travel within the UEMOA zone without a visa.

West African Studies

Regional Challenges of West African Migration African and European Perspectives

Drawing on contributions by African and European experts

on various aspects of West African migration, this publication

provides another perspective to current debates essentially focusing

on security issues. This rather non-institutional approach promotes a

constant dialogue based on analyses of the actual situation: the authors

encourage “win-win” mobility for all parties involved (Europe, North Africa

and West Africa), whether it be a host, transit or departure country.

>> http://www.oecd.org/swac/migration

West African Mobility and Migration Policies of OECD Countries

This publication contributes to the Euro-African dialogue initiated at

theRabatConference inJuly2006: it reviewsmigrationpolicies in

the main OECD countries receiving West African migrants and analyses

the recent discussions within Europe. This report also presents common

approaches undertaken in Europe, Africa and West Africa and aims to

shed light on decision makers’ strategic thinking. It provides the greater

public with an understanding of this recent dynamic.

>> http://www.oecd.org/swac/migration

13

The regional Economic Partnership Agreement (EPA) between the

European Union and West Africa (ECOWAS plus Mauritania) is

depending on an accelerated regional integration process. Its signing

is officially scheduled for the end of June 2009, a date confirmed by the

UEMOAHeadsofStateandGovernmentattheirsummiton18March.The

results of technical negotiations held in Dakar in February 2009 highlight

that while the number of points of convergence is growing, substantive

disagreements remain. In particular, the Dakar meeting stressed that

“Every final offer must take into account the eventual achievement of the

ECOWAS common external tariff (CET)”. The CET as currently proposed

still elicits the strongest reservations on the part of the West African

agricultural world. At its February meeting in Ouagadougou, the Network

of Farmers’ and Agricultural Producers’ Organisations of West Africa

(ROPPA)againrejectedamaximumrateof35%(knownasthefifthtariff

band), stressing that “A rate of less than 50% would not allow the region

to reach the strategic development objectives”.

On 26 March, the European Parliament approved the interim EPAs

signedwithCôted’IvoireandGhana.Thesenationalinterimagreements

demonstrate the difficulty of negotiating regionally for countries lacking a

uniform status. The least developed countries (LDCs – all the countries

ofWestAfricaexceptCôted’Ivoire,Ghana,NigeriaandCapeVerde1)

already benefit from access to the European market with no customs

duties or quotas under the “Everything But Arms” (EBA) initiative. They

therefore feel much less pressure to negotiate an EPA than the non-LDCs,

the vital sectors of whose economies depend on exports to Europe.

1 Cape Verde was promoted to the status of non-LDC on 1 January 2008, but was granted a three-year extension, during which it will continue to benefit from the EBA regime. Cameroon (non-LDC), as a member of the CEMAC, is participating in the negotiations of a regional agreement between the EU and Central Africa.

international Negotiations

Learn more

European Centre for Development Policy Management • http://www.ecdpm.org

International Centre for Trade and Sustainable Development •http://ictsd.net/news/tniInformation-sharing Gateway on ACP-EU trade •

http://www.acp-eu-trade.org

Regional EPA: will the June 2009 target be met?

What mechanism(s) could the international community, especially the European Union, use to encourage West African countries to act in a more regional manner?

The creation of specific regional funds (i.e. distinct from the European

Development Fund) could be a solution. The idea is still at the

theoretical stage, but has been on the table since May 2008 (EU Council

of Ministers). It seems probable that a regional mechanism compensating

for the temporary disadvantages of integration could overcome the

hesitation of some West African countries. “For EU member States and

the European Commission, wouldn’t such a regional fund offer a real

opportunity to implement aid effectiveness principles and show their

commitment to support the Africa Caribbean and Pacific (ACP) countries

in the face of EPA adjustment costs?”1 The future will tell if the fear of a

new setback to the regional EPA in June 2009 will move the negotiations

forward.

1 Corinna Braun-Munzinger, “Regionally owned funds: a realistic way to improve Aid for Trade delivery in the ACP?”, International Centre for Trade and Sustainable Development (ICTSD), March 2009.

14

Key events 22 March 2009, Senegal• : Victory of the opposition in local

elections in most of the large towns and cities.

1 and 2 March, Guinea-Bissau• : Double assassination of

PresidentNinoVieraandGeneralTagmeNaWaie.

1 March, Côte d'Ivoire• : France starts to reduce its “Licorne”

military force, which will be reduced from 1 500 to 900 soldiers

by July.

24 February, Nigeria• : The Nigerian justice system annuls the

election of the governor of Ondo State, a member of the party in

power. This was the 12th annulment (out of 35 states) of 2007

elections.

15 February, Chad• :TheEuropeanmilitaryforce(EUFOR),

which was deployed to counter repercussions of the Darfur

conflict, hands over to United Nations Peacekeeping forces.

23 January, Mauritania• :GeneralAbdelAzizannounces

presidential elections to be held on 6 June 2009.

4 January, Ghana• : Presidential election. John Atta-Mills is

officially declared President with 50.23% of the votes.

23 December 2008, Guinea• : Death of President Lansana Conté.

On 24 December, Captain Moussa Dadis Camara announces

thedissolvingofthegovernmentandinstitutionsoftheRepublic

as well as the suspension of the constitution.

24 November 2008, Guinea-Bissau• : Foiled coup d’état.

16 November 2008, Guinea-Bissau• : Legislative elections: the

PAIGCwins67oftheNationalAssembly’s100seats.

6 Augsut 2008, Mauritania• : President Sidi Ould Cheikh Abdallah

and Prime Minister Yahya Ould Ahmed Waghf are arrested.

A Council of State, led by the former commander of the

Presidentialguard,GeneralAbdelAziztakespower.

Challenges for Democracy

The resurgence of coups d’état

Since Independence, only Cape Verde and Senegal have never

been ruled by a military regime. Following the two coups that took

place in the second half of 2008 (Mauritania inAugust andGuinea in

December), there was then the double assassination of political leaders

at theGuinea-BissauSummit inMarch2009.While thecaseofGuinea

could have been anticipated, the situation in Mauritania was surprising

and somehow paradoxical, as the coup took place only a short while after

the return to democracy.

Is there a resurgence of coups d’état in spite of undeniable advances in democracy?

In some countries, the army is still a politically significant player and is to

varying degrees seen as such. Despite the existence of a democratic

constitutional framework based on the rule of law, power is still directly or

indirectly in the hands of the army, alongside a political class and possibly

other civil servants of the State apparatus (National Assembly, judiciary,

public administration).

In Guinea, the National Council for Democracy and Development, set up

by the army and headed by Captain Moussa Dadis Camara, took power

on23December2008.Ratherpopularamongcivilsociety,hedesignated

himself to lead the political transition and promised to hold elections by

December 2009.

In Guinea-Bissau, despite the destabilising effects of the two assassinations

of theArmyChief-of-Staff (1March)and thePresidentof theRepublic

(2 March), the constitutional provisions held firm. The President of the

National Assembly is acting as temporary Head of State until elections.

So, despite the violence of these events, it was not in fact a coup d’état,

and the international community agreed with this view.

On the other hand, the overthrow of the Mauritanian civilian government

that had been formed as a result of elections has led the international

community to impose sanctions in order to encourage the new leaders to

speed up the return to constitutional rule.

The resurgence of coups (welcomed this time by a portion of the

populace) testifies to a malaise affecting democracy. The international

community’s firm stand in defending the rules of respect for democracy

must be accompanied by thinking on the significance and risks of the

current situation for stability, peace and development. Leaders of military

origin seem to be on the way to acquiring legitimacy by adopting the

stance of “drivers of change” in contexts glaringly marked by the need for

changes other than simply institutional ones.

15

Renewal of political leadership

The newly emerging political figures, elected civilians on the one

hand and military officers from a coup on the other, reflect well the

ambivalence of the region’s political situation.

In Mauritania, • democracy had been restored, but reforms and a

response to society’s demands had not been forthcoming. The new

strongman,GeneralAbdelAziz,setshisactionsandlegitimisation

in the context of a response to these expectations. He will be a

candidate in the forthcoming presidential elections in June 2009. The

satisfaction of demands and the support from some parliamentarians

and civil society build the base of this new figure brought in by the

army, which is still a major political force.

In Guinea, • the drive undertaken against the drug trade and the

audits carried out to recover misappropriated public funds have

earned Captain Camara, head of the junta, a major upsurge in

popularity and legitimacy, particularly among young people. Indeed,

on 14 March the latter held a gathering of 25 000 people in a stadium

in the capital offering him their support and encouraging him to

successfully implement the needed reforms.

In Senegal, • tensions between the presidency of the National

Assembly and the executive branch led the former Prime Minister

Macky Sall, to create a new party in December 2008, the Alliance

fortheRepublic(APR-Yakaar),sothathebecameanewopposition

leader. On 22 March, this united opposition gained control of many

municipalities, particularly in most of the large towns.

In Ghana,• after exemplary elections and a close count, Mr. John Atta-

Mills was officially declared President on 4 January. His opponent,

Mr. Nana Akufo-Addo, congratulated him that same day, promising

to play “a constructive role for the future of the nation”.

In Guinea-Bissau, • the clear parliamentary majority obtained by

theAfricanPartyfortheIndependenceofGuineaandCapeVerde

(PAIGC)intheDecember2008electionsconsolidatedtheposition

ofthenewPrimeMinister,CarlosGomesJúnior.

Fragility of the State

The case of Guinea-Bissau illustrates the paradoxical coexistence of

electoral regularity and transparency on the one hand, and instability

punctuated by upsurges of political violence on the other. All observers

were delighted with the running and outcome of November’s legislative

elections. The terrible blow of the double assassination represents a

major threat to this progress. Leaving aside the hypothesis of drug-trade

involvement in these events, there is the problem of the conflictual relations

between these key State leaders. “It is not possible to build a solid future

on the basis of vengeance and mutual reprisals,” stated President Pedro

Pires of Cape Verde in this connection.

Challenges for Democracy

The peaceful, lasting resolution of the Guinea-Bissau crisis is an

important objective for the country’s post-conflict stabilisation mobilising

ECOWAS, the African Union, the European Union, the Community of

Portuguese-Speaking Countries (CPLP) and the United Nations (the

UnitedNationsOfficeforWestAfrica[UNOWA]andtheUnitedNations

Peace-BuildingSupportOffice inGuinea-Bissau[UNOGBIS]),andalso

many actors in bilateral co-operation. Guinea-Bissau is now moving

towards new presidential elections scheduled for end June 2009. Under

the constitution, the presidency is assured in the interim period by Mr.

RaimundoPereira,PresidentoftheNationalAssemblyandamemberof

thePAIGC.Thepoliticalcompetitionanticipatedentailsrisksbyupsetting

the balance between the various forces. Exploitation of ethnicity runs the

risk of feeding certain political strategies and playing on the position of

the army, which is predominantly Balante. (The Balante are the largest

ethnic and linguistic group in the country, comprising 25% to 30% of

the population, according to various sources.) The democratic arrival

inpowerofthePartyforSocialRenewal(PRS–whichispredominantly

Balante) in 2002 with President Kumba Yalla acted as a catalyst for the

development of an ethno-political lever within the army.

The political influence of the army and its relations with the civil powers

are brought into play each time the leadership of the State is at stake. This

influence also springs from its role in the historical process of national

liberationandState-buildingaroundthePAIGC,whichwasformedasa

national liberation army.

ECOWAS and its various bodies (whose Committee of Chiefs of Defence

Staff met in Praia on 5 March) took on board the urgency of the need

tosupportGuinea-Bissau in reforming itssecuritysectorsoas tohelp

depoliticise its defence and security forces, and reduce armed violence

in the country.

Spread of political violence

InGuinea,thedeathofPresidentContéledtoanon-violentmilitarycoup

and a peaceful transition, while many forecast a chaotic post-Conté period

of succession struggles and political rivalries. However, if the region has

experienced a non-violent coup d’état, it is still suffering political violence

without coups d’état, in some cases combined with criminal activity.

In November 2008, following impeccable elections in Bissau, there were

two failed assassination attempts; President Nino Viera was the first target

andthenChief-of-StaffGeneralTagmeNaWaie.Bothwerethenkilledat

the beginning of March.

On 20 December, attacks by Tuareg rebels in northern Mali resulted in a

bloody death toll, straining both national and regional peace initiatives. On

17 February, despite the disarming of hundreds of rebel Tuareg rejoining

the ranks in Kidal in Mali, armed dissidence was still active. On 23

February, the Bamako customs mobile intervention brigade intercepted

a truckcarryinga loadofweapons fromGuinea.This isonlyoneofa

number of signs of intense cross-border arms trafficking linked to criminal

and/or political activities.

16

Challenges for Democracy

Among the latterarepiracy in theGulfofGuinea,and theactivitiesof

the Movement for the Emancipation of the Niger Delta (MEND) in Nigeria

and the Bakassi Freedom Fighters (BKF) in Cameroon. Over the past six

months, a series of incidents and mutinies in Côte d’Ivoire demonstrates

the difficulties of implementing any real disarmament based on the Fourth

Supplementary Accord to the Ouagadougou Political Agreement, known

as Ouaga IV.

Criminal intrusion of terrorism and the drug trade

Infiltrating social, political and economic spheres, the drug trade is a

major challenge, involved in the revival and growth of terrorism, arms

trafficking and kidnapping. In December 2008, the United Nations Office

on Drugs and Crime (UNODC) estimated that 50 tonnes of South American

drugs transit West Africa each year, 98% of which are re-exported to

Europe. The region is used as a transit zone for drugs trade. While visiting

Sierra Leone on 4 February, the UN Secretary-General emphasised

the risks that the phenomenon represents for the stability, security and

precarious equilibrium of post-conflict countries. It is a new source of

instability and violence, exacerbating political and ethnic tensions and

social discontent caused by rising prices of staple products and, more

generally, poor socio-economic conditions.

Alittlelater,high-rankingofficersintheGuineanarmy(includingasonof

the deceased President) were arrested for complicity in international drug

trafficking. In earlyMarch, somevoices inGuinea-Bissauaccused the

drug tradeof involvement in theassassinationofChief-of-StaffGeneral

Tagme Na Waie.

A growing trend towards depoliticisation combined with criminal

activity leads to a hybradisation of dangers. What were once political

actions related specifically to a rebellion becoming now in some situations

the means for economic and financial bargaining. This opens up the door

to the drug trade and all forms of criminal activity such as trafficking of

humans, arms and contraband. Current events in the Mali/Niger zone and

theGulfofGuineaaswellas the recentkidnappings in theMali/Niger

zoneandtheGulfofGuinea,forwhichAlQuaedaMaghreb(QMI)claimed

responsibility, underscore this situation. These criminal activities could

be “sub-contracted” out to shadowy peripheral rebel groups. Thus there

seems to be a trend in manipulating such rebel groups towards revenue-

generating activities that will indirectly have political gains for criminal

and terrorist groups. Hence by sub-contracting out certain activities, the

main terrorist groups could distance themselves having greater protection

in these areas. This phenomenon of complementarity and the supply of

criminal services is a threat to the entire northern ECOWAS zone border

area.

17

Ministerial Council of the Mano River Union (MRU)•

Abidjan, 19 March

TheCouncil’sintentionwastoorganiseanoperatingbudget.Createdin1970byLiberiaandSierraLeone,theMRUwasjoinedbyGuinea

in 1980 and Côte d’Ivoire in 2008. It remained a “phantom organisation” for a long time (with civil wars in Liberia and Sierra Leone), but is

being reconstituted today around the shared goals of peace and security.

RegionalConferenceontheagriculturalandfoodsituationandtradeopportunitiesinWestAfrica•

Abuja, 16 - 18 March

Organised by the Permanent Inter-State Committee for Drought Control in the Sahel (CILSS) in collaboration with ECOWAS, this regional

Conference was organised to take stock of the agricultural and food situation while encouraging regional trade.

UEMOA celebrates 15 years of existence •

Ouagadougou, 15 March

Meeting at their 13th Summit, Heads of State decided to create a community anthem and flag, without fixing any firm date. The UEMOA

flag could therefore fly one day alongside that of ECOWAS.

1stInternationalTransportExhibitioninWestAfrica•

Bamako, 12 - 15 March

OrganisedbytheGovernmentofMaliandtheUEMOACommission,thisexhibitionintendedtoopenthedebateontransportissuesinMali

and West Africa: http://www.sitrao.com

Subsidy for the Niger Basin Authority •

Ouagadougou, 20 February

UEMOAgrantedasubsidyofCFAfrancs3billion(aboutEUR4.6million)foradredgingprogramme.

2ndECOWASBusinessForum•

Ouagadougou, 12 - 14 February

The idea of regional agricultural product stock exchanges and the potential for investment in agriculture were discussed and promoted at

this meeting.

ECOWASMeetingagainsttheProliferationofLightArms•

Ouagadougou, 10 - 13 February

Objective: to design a mechanism to co-ordinate member States in combating major banditry and the burgeoning proliferation of light arms.

MeetingofUNPeaceMissionsLeadersinWestAfrica• Dakar, 5 - 6 February

The meeting’s aim was to improve co-ordination of UN peace and security activities in the subregion.

MeetingonClimateChangeAdaptationCapacitiesintheSahel• Ouagadougou, 2 - 4 February

Organised by the Agrhymet Centre of CILSS, the workshop drew lessons from a programme financed by the Canadian co-operation

(evaluation of the impact on water resources and agricultural production, training of experts, pilot schemes for adaptation, etc.).

InvasionofcaterpillarsinLiberia•

Monrovia, 26 January

Liberiadeclaredastateofemergencybecauseofaninvasionofmillionsofcaterpillars.TheAgricultureMinistersofCôted’Ivoire,Guinea,

Liberia and Sierra Leone set up a joint technical committee. Fortunately, food crops (in particular corn, rice, sorghum and millet) were not

attacked.

EstablishmentofanECOWAShumanitariandepotinBamako•

Bamako, 10 January

TheMalianGovernmentconfirmeditsagreementtotheestablishmentofadepot,fromwhereemergencyaidcouldbedistributedtogroups

suffering as a result of political crises or natural disasters. The depot will be built near the international airport of Bamako, with the support

of UNOCHA.

In Brief

18

AnewattempttocreateaWestAfricanregionalairlinecompany•

Lomé, 16 January

A new private company, African Sky, signed an agreement with Ethiopian Airlines. The aim is to make Lomé a regional hub serving all of

WestAfrica.In2000,AirSenegalInternational(ASI)enteredintoasimilarpartnershipwithRoyalAirMaroc(RAM).Afterapromisingstart,

ASI has been suffering from serious financial difficulties in the past two years, aggravated by a disagreement between the Senegalese State

andRAM,whichnowwantstowithdraw.

UEMOA–FranceagreementtosupportDiasporainitiatives•

Ouagadougou, 10 January

This three-year agreement is intended to support the Diaspora of UEMOA member countries in France. The idea is to mobilise the capacities

of the Diaspora in order to support community development projects. An annual forum on “Migration and Development” will be organised.

In Brief

19

Sahel and West Africa Club/OECDPostal Address: 2 rue André Pascal, 75775 Paris Cedex 16 - France

Office:LeSeineSaint-Germain,12bddesIles,BuildingB,92130Issy-les-Moulineaux-France

Phone: +33 (0)1 45 24 89 87 - Fax: +33 (0)1 45 24 90 31

E-mail: [email protected] / www.westafricaclub.org

West Africa Observer - Contact: [email protected]