D+C Development and Cooperation (No. 5, September/October 2002, p. 25)


A New Deal for Africa?

Dieter Brauer


Africa is establishing new political and economic structures to cope with continuing poverty, political instability and international marginalisation. At a summit in Durban, the Organisation for African Unity (OAU) founded in 1963 was replaced by the African Union (AU) which is modelled on the European Union. South African president Thabo Mbeki said in Durban, the OAU had fulfilled its major purpose - to fight against colonialism and apartheid. The task of the new organisation was to fight against poverty and for the maintenance of human rights. The AU comprises 53 member states, i.e. all states on the continent except Morocco; the membership of Madagascar has been suspended. Among the institutions of the AU are the Assembly of the Heads of State, the Executive Council of the foreign ministers, the AU Commission (corresponding to the former OAU Secretariat) with headquarters in Addis Abeba, and a pan-African parliament. The AU also plans to establish a common bank and a common currency. Contrary to the old OAU where the principle of non-interference in the internal affairs of member states was sacrosanct, the AU charter provides for the right to intervene in cases of war crimes, genocide and crimes against humanity. It also provides for a Peace and Security Council, own peace keeping forces and a Conference on Security, Stability, Development and Cooperation in Africa modelled on the Conference on Security and Cooperation in Europe (CSCE).

The founding of the African Union follows the establishment of NEPAD, the New Partnership for Africa’s Development, as a substructure of the AU. NEPAD is a political and economic programme which aims at promoting democracy, stability, good governance, human rights, and economic development on the continent. The programme was developed as a joint initiative of the presidents of Algeria, Egypt, Nigeria, Senegal and South Africa. These five countries form the Steering Committee of NEPAD which meets monthly under the chairmanship of Wiseman Nkulu of South Africa who heads the Secretariat in Pretoria. The Executive Committee of NEPAD made up of 15 heads of state representing each of the five regions of Africa meets every four months under the chairmanship of Nigeria’s president Olusegun Obasanjo. The 15 NEPAD member states are: Mali, Nigeria, Senegal (West Africa); Cameroon, Gabon, Sao Tomé and Principé (Central Africa); Ethiopia, Mauritius, Rwanda (East Africa); Algeria, Egypt, Tunesia (North Africa); and Botswana, Mozambique, South Africa (Southern Africa).

NEPAD puts its emphasis on promoting democracy, good governance and political stability as a prerequisite for attracting foreign investments. It is based mainly on the own initiative of African states and not so much on foreign assistance. An independent body of experts is entrusted with regular ‘peer reviews’ of member states to see whether the respective governments are adhering to the principles of NEPAD regarding governance as well as budget discipline and fiscal transparency.

Although NEPAD expressly wishes to be seen as an effort to marshal Africa’s own resources and strengthen regional cooperation, it also seeks the assistance of the rich countries to implement its goals. In fact, NEPAD says that US$64 billion annually in foreign investments are needed to overcome poverty in Africa. In response, the G8 (major industrialised countries) and the European Union at their meeting in Kananaskis in Canada in June adopted an Africa Action Plan which pledges support for the African initiative.

The G8 say that in future assistance will be focussed "on countries that demonstrate a political and financial commitment to good governance and the rule of law, investing in their people, and pursuing policies that spur economic growth and alleviate poverty...While we will focus particular attention on enhanced-partnership countries, we will also work with countries that do not yet meet the standards of NEPAD but which are clearly committed to and working towards its implementation. We will not work with government which disregard the dignity and interests of their people".

While making it clear that political conditions such as the principles established by NEPAD will in future be the yardstick for cooperation with Africa, the G8 did not commit any new resources at their meeting in Kananashis. They did, however, promise that half of the additional US$12 billion in official government assistance (ODA) which are to be raised until 2006 (as decided in Monterrey in March) will be given to African nations.

The G8 also promised to support African efforts to resolve the principal armed conflicts on the continent; support African efforts to build capacities for improving political governance; and fostering trade, investments, economic growth, and sustainable development. On the question of debt relief for the Heavily Indebted Poor Countries (HIPC), the G8 pledged to finance the shortfall in the HIPC Trust Fund of US$1 billion. Help was also promised in the fight against HIV/AIDS and other mortal diseases.

The Action Plan for Africa was met with a sceptical response from German and international NGOs. The advocacy organisation World Economy, Environment and Development (WEED) as well as the German Catholic relief agency Misereor that the funds for debt relief were insufficient and the $6 billion in additional assistance fell short of the extra $50 billion estimated by the World Bank as needed to fight poverty worldwide. Oxfam said "a year of promises and grand intentions came to nothing as the leaders of the industrialised world agreed to an action plan lacking two ingredients, action and a plan".

The German government, on the other hand, promised support for NEPAD. The Minister for Economic Cooperation and Development, Heidemarie Wieczorek-Zeul, said Euro110 million would be made available in 2002 and 2003 "to add momentum to this vision of a new Africa". The money would be used to support Africa’s own efforts in the fields of crisis prevention, economic promotion, education and health.

Africa is already the priority area for German development cooperation. 39 of 72 partner states are African countries. Almost 30 per cent of all bilateral funding goes to Africa. Including the Euro110 million, Germany will provide Euro1 billion for Africa for the years 2002/2003.



D+C Development and Cooperation,
published by: Deutsche Stiftung für internationale Entwicklung (DSE)

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