Club. Frustrations over the political N MAY 2012 NEWSBRIEF PUBLISHED BY THE SWAC SECRETARIAT. Secretariat IN THIS ISSUE SAHEL AND WEST AFRICA

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1 N MAY 2012 SAHEL AND Club WEST AFRICA Secretariat NEWSBRIEF PUBLISHED BY THE SWAC SECRETARIAT IN THIS ISSUE Transition deal sparks violent protests in Mali FOCUS Transition deal sparks violent protests in Mali First ECOWAS peacekeepers arrive in Guinea-Bissau ECOWAS: USD 15 million for refugees and IDPs Boni, Mills attend G8 symposium on food security UN Security Council delegation visits West Africa Liberia, Sierra Leone vow to curb illicit mining, drug trafficking CILSS warns of critical food insecurity in Chad, Mali and Mauritania Niger signs political consultation pact with Turkey Mali cotton production resilient in face of multiple crises 4 th ECOWAS Business Forum to focus on ICT PUBLICATIONS IMF Regional Economic Outlook - Sub-Saharan Africa: Sustaining Growth Amid Global Uncertainty IMF Report on Niger: Request for a New Three- Year Arrangement under the Extended Credit Facility Frustrations over the political transition in Mali boiled over into violence on Monday, as thousands of protesters took to the streets of Bamako. Interim President Dioncounda Traoré was briefly hospitalized after angry protesters stormed his office and attacked the transitional leader. Authorities said the President was released from hospital after an examination revealed no serious injuries. Protesters also burned tires and blocked traffic in the capital, demanding Traoré s immediate resignation. Dioncounda was due to step down on Wednesday 23 May, 40 days after his investiture. On Sunday Protesters occupied Mali s presidential palace in protest at a deal for Traoré to remain in offi ce for a year [reuters] ECOWAS mediators brokered a lastminute deal with the leaders of the 22 March military coup to extend Traoré s mandate for the full 12 months of the transition period. Coup leader Captain Amadou Sanogo had signalled opposition the extension, threatening to derail the transition to civilian rule. He dropped his protests in exchange for receiving the full status and benefits of a former head of state. Compliance with the transition process is a prerequisite for Mali to receive international assistance to push back the Tuareg rebels and Islamist militants who have claimed control over the northern part of the country. The opinions and interpretations expressed in this newsbrief do not necessarily reflect the views of the OECD or the SWAC Secretariat.

2 First ECOWAS peacekeepers arrive in Guinea-Bissau The first elements of an ECOWAS peacekeeping force arrived in Guinea- Bissau on Thursday as part of the effort to restore constitutional rule. About 70 soldiers from Burkina Faso were welcomed by Bissau police and army officers as well as representatives of ECOWAS and the United Nations. The regional alliance has pledged to commit a 629-strong ECOWAS Mission in Guinea-Bissau (ECOMIB), in support of a 12-month transition period culminating with the election of a civilian president. The peacekeepers arrived on the same day that economist and former UEMOA leader Rui Duarte Barros was sworn in as Prime minister of the transitional government. Guinea-Bissau was preparing to hold a presidential runoff election when soldiers seized power on 12 April. On 18 May the UN Security Council voted to impose sanctions against five coup leaders. The Security Council resolution demanded the reinstatement of the previous government and encouraged ECOWAS to continue its efforts to restore constitutional order in Guinea- Bissau. ECOWAS: USD 15 million for refugees and displaced persons The ECOWAS Commission said efforts to deliver humanitarian assistance to people uprooted by the political crises in Guinea-Bissau and Mali will cost USD 15 million. Commission President Kadré Ouédraogo told reporters in Abuja that the budget has already been presented to the Authority of Heads of State and Government. We are now in the process of gathering this amount in order to bring this assistance to the refugees and internally displaced persons, Ouédraogo said. Beyond the funding challenges, the Commission President said the humanitarian effort is complicated by the security situation in the northern Mali. Securing humanitarian corridors will be part of the mandate for the planned ECOWAS Standby Force deployment to Mali. ECOWAS defence chiefs have said they are prepared to send a force of troops once authorities in Mali submit a formal request. Boni, Mills attend G8 symposium on food security G8 leaders and partner organisations announced a series of new investments in Africa s agricultural sector in a meeting held alongside the G8 summit. Ghanaian President John Atta Mills and Benin s President Yayi Boni were among the four African Heads of state and Government invited to attend the Symposium on Global Agriculture and Food Security outside Washington. U.S. President Barack Obama said 45 African and international firms will invest USD 3 billion to boost agricultural output on the continent. The commitments are part of the New Alliance for Food and Nutrition Security, a collaborative effort between G8 nations, African countries, aid agencies and multinational corporations that aims to lift 50 million people out of poverty. The World Cocoa Foundation (WCF) announced plans for a USD 4 million initiative to help small-scale producers in Cameroon, Côte d Ivoire and Nigeria gain access to key farming inputs, improved techniques and business training. Cocoa trees are well suited for combining with food crops, WCF President Bill Guyton said. Cocoa farmers are uniquely positioned to form a cornerstone of many countries food security strategies. 2 NewsBrief / N 67, May 2012 Sahel and West Africa Club Secretariat (SWAC/OECD)

3 UN Security Council delegation visits West Africa Left to right: Ambassador Mohammed Loulichki of Morocco, President Ellen Johnson Sirleaf and US Ambassador Susan Rice The UN Security Council has applauded Liberia s considerable progress toward restoring peace and stability since the end of its civil war. Monrovia was the first stop on a three-nation tour of West Africa for the 15-member Security Council delegation. The Ambassadors met with President Ellen Johnson Sirleaf and other top government officials as well as leaders of the United Nations Mission in Liberia (UNMIL). A statement from the Security Council said the objective of the visit is to demonstrate the UN s continued support for Liberia and review progress in the drawdown of UNMIL s operations. Liberia currently hosts UN peacekeepers, down from the original From Liberia, the Security Council delegation travelled to Côte d Ivoire, where they were to meet President Alassane Ouattara and discuss regional issues with ECOWAS officials. The delegation is also scheduled to visit Sierra Leone for meetings with President Ernest Bai Koroma and opposition party officials. Liberia, Sierra Leone co-operate against drug trafficking, illicit mining Liberia and Sierra Leone have pledged to work together to boost economic ties and counter drug trafficking and illegal mining in the two countries. Sierra Leone s President Ernest Bai Koroma held talks with his Liberian counterpart Ellen Johnson Sirleaf during a two-day working visit to Monrovia last week. In a statement, the two presidents vowed to curb illegal cross border activities including, but not limited to, illicit mining, drugs, illegal human and arms trafficking and money laundering. They reaffirmed their commitment to economic integration through ECOWAS and the Mano River Union, vowing to look for new opportunities to increase bilateral trade and to promote the free movement of goods and people across their common border. The presidents also inaugurated a National Petroleum service station, calling it a hallmark of economic ties between the two countries. The filling station is one of several branches of the Sierra Leonean brand established in Liberia by private investors from both countries. CILSS warns of critical food insecurity in Chad, Mali and Mauritania The Permanent Inter-State Committee for Drought Control in the Sahel (CILSS) is warning of critical food insecurity across the Sahel region. In a special bulletin Food Insecurity in West Africa April 2012, CILSS provides an update on the forces, both natural and socio-political, contributing to the grave situation across several countries. These include reduced cereals production, higher food prices, and elevated rates of malnutrition. Security challenges in Mali and Nigeria that have disrupted markets and caused the displacement of hundreds of thousands of people. The analysis concludes that three countries currently face phase 3 defined as critical, food insecurity : Chad, Mali and Mauritania. Looking ahead to the month of June, CILSS projects a deterioration of conditions along the Mali- Mauritania border and in the Chadian Sahel, where cereal stocks could be completely exhausted. Malnutrition rates are expected to rise in parts of Senegal, and the situation in northern Mali remains uncertain. The special bulletin is the result of the work conducted by the Regional Analysis Unit of the Harmonized Framework during their 2-6 April consultation meeting in Niamey, Niger. Sahel and West Africa Club Secretariat (SWAC/OECD) NEWSBRIEF / N 67, May

4 Niger signs political consultation pact with Turkey In a fresh sign of a powerful emerging force in South-South co-operation, Niger and Turkey signed a memorandum of understanding (MoU) to establish a framework for political consultations between the two countries. The Nigerien Minister of Foreign Affairs and Co-operation Mohamed Bazoum and Turkey s Ambassador to Niger Hasan Ulusoy signed the co-operation pact Thursday in Niamey. This agreement is an opportunity to lay the groundwork for a fruitful cooperation between our two countries, the Turkish diplomat said. The 2011 African Economic Outlook reported a sharp increase in economic engagement, with Turkey listed as one of the continent s top five emerging partners. Turkey-Africa trade reached USD 17 billion in 2011, more then double the figure in Turkish Airlines now serves 19 African cities, and Turkish diplomatic missions are expected to double from 16 at the beginning of 2012 to at least 33 by the end of the year. Addressing delegates from 54 African countries at a Turkey-Africa Media Forum last week in Ankara, Turkish Deputy Prime Minister Bulent Arinc said Africa and Turkey have a special relationship of brotherhood and business. Mali cotton production resilient in face of multiple crises Cotton producers in Mali say they are confident of a healthy harvest in the current growing season, despite the current political instability in the country and depressed world prices for cotton. The Malian Company for Textile Development (CMDT) confirmed its projections for tonnes of production, up from tonnes in the season. The chief statistician for the CMDT, Ousmane Cissé, attributed the increase in production to favourable rains and stable prices paid to producers. The Tuareg rebellion, which has displaced hundreds of thousands of people in northern Mali, has had minimal impact, since cotton production is concentrated in the southern part of the country. Along with Burkina Faso, Mali is one of sub-saharan Africa s largest cotton producers and exporters. The industry accounts for 15% of the country s GDP and directly or indirectly employs approximately 3 million people. Nearly a quarter of Malians depend on the crop to sustain their livelihoods. 4 th ECOWAS Business Forum to focus on ICT ECOWAS will shine a spotlight on information and communications technology (ICT) development during and upcoming business conference and awards ceremony. ECOWAS Commission representatives, regional business associations and other stakeholders met 2-3 May to discuss the themes and organisation of the 4th ECOWAS Business Forum and the 2nd ECOWAS Private Sector Awards, to be held in September in the Gambian capital, Banjul. Participants agreed to the presentation of two awards, one to a young and innovative entrepreneur in the field of ICT and another to a company with a record of achievement in telecommunications. In a statement, ECOWAS Commissioner for Macroeconomic Policy Ibrahim Bocar Ba affirmed the Commission s commitment to ensuring the success of the two events. The ECOWAS Business Forum brings together public and private sector stakeholders to engage on a wide range of issues important to the West African business community. Initiated in 2007, Ba said the Business Forum has already shown results, for instance sparking the creation of a development fund to finance promising business ventures. 4 NewsBrief / N 67, May 2012 Sahel and West Africa Club Secretariat (SWAC/OECD)

5 PUBLICATIONS IMF Regional Economic Outlook - Sub-Saharan Africa: Sustaining Growth Amid Global Uncertainty The IMF s Regional Economic Outlook examines the economic performance of sub-saharan Africa and outlines measures to shore up progress against the backdrop of an uncertain global environment. Despite the slowdown in major European trade partners, sub-saharan Africa saw economic output grow 5% last year, largely due to solid commodity prices, new resource exploitation and improved domestic conditions. While the overall narrative is positive, economic performance varied among countries and regions. West Africa, for instance, was held back by drought in the Sahel and conflict in Côte d Ivoire. Economics predict economic growth will improve slightly to 5.5% in 2012, but the report warns there are significant downside risks. Continued weakness in Europe could undercut growth in Sub-Saharan Africa and a surge in oil prices could spark inflation in importing countries. While the policy prescriptions differ from country to country, the IMF warns that countries should make contingency plans in case counter-cyclical interventions become necessary. The report also examines the impact of global financial woes on African banking systems, warning that the growth of pan-african banking groups could become a source of cross-country contagion if regulatory systems are not strengthened. Report in English: IMF - Niger: Request for a New Three-Year Arrangement under the Extended Credit Facility While significant challenges remain on the horizon, this IMF staff report documents improved economic governance since the return of civilian rule in Niger. The report notes that performance under Niger s previous Extended Credit Facility (ECF) was satisfactory, however implementation was interrupted due to the February 2010 military coup. Since the restoration of democratic rule in April 2011, the government of Niger has embarked on an ambitious development programme and is seeking a new ECF arrangement to support plans to use rising natural resource revenues to finance increased investments in agriculture, education, health and infrastructure. The IMF staff report expresses appreciation for Niger s reform-oriented approach and says the government s plans strike the appropriate balance between expanding development spending and maintaining a sustainable debt profile. The report also welcomes Niger s plans to develop its financial sector and improve its business climate, and it warns that an overhaul of supervisory and legal frameworks is necessary if Niger is to reap maximum benefit from its emerging natural resources sector. Based on these considerations, the IMF staff recommend approval of the government s request for a new threeyear ECF arrangement. Report in English: SAHEL AND Club WEST AFRICA Secretariat Newsbrief prepared by Margaret Egbula Contact: julia.wanjiru@oecd.org Mailing Address Office SWAC/OECD 2, rue André Pascal f Paris, Cedex 16 Le Seine Saint-Germain 12, bd des Iles, building B f Issy-les-Moulineaux Tel +33 (0) Fax +33 (0) swac.contact@oecd.org