The New Partnership for Africa’s Development (NEPAD), October 2001

Sectors : Debt relief, Aid volume, Quality of aid, Financial Institutions, markets, services and microfinance, Domestic resource mobilisation, Investment
Organisation : AU
Date made: 
2001
Level: 
Heads Of State
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Commitments in: Financing for Development - Debt relief

“146. The New Partnership for Africa’s Development seeks the extension of debt relief beyond its current levels (based on debt .sustainability.), which still require debt service payments amounting to a significant portion of the resource gap. The long-term objective of the New Partnership for Africa’s Development is to link debt relief with costed poverty reduction outcomes. In the interim, debt service ceilings should be fixed as a proportion of fiscal revenue, with different ceilings for international development assistance (IDA) and non-IDA countries. To secure the full commitment of concessional resources, debt relief plus ODA, that Africa requires, the leadership of the New Partnership for Africa’s Development will negotiate these arrangements with creditor governments. Countries would engage with existing debt relief mechanisms, the HIPC and the Paris Club, before seeking recourse through the New Partnership for Africa’s Development. The Debt Initiative will require agreed poverty reduction strategies debt strategies and participation in the Economic Governance Initiative to ensure that countries are able to absorb the extra resources. In addition to seeking further debt relief through the interim debt strategy set out above, the leadership of the New Partnership for Africa’s Development will establish a forum in which African countries will share experience and mobilise for the improvement of debt relief strategies.

147. Actions
- The heads of state of the New Partnership for Africa’s Development will secure an agreement, negotiated with the international community, to provide further debt relief for countries participating in the New Partnership for Africa’s Development, based on the principles outlined above;

- The leadership of the New Partnership for Africa’s Development will establish a forum in which African countries may share experiences and mobilise for the improvement of debt relief strategies. They will exchange ideas that may end the process of reform and qualification in the HIPC process.”

Scope: 
Africa

Commitments in: Financing for Development - Aid volume

“148. The New Partnership for Africa’s Development seeks increased ODA flows in the medium term, as well as reform of the ODA delivery system, to ensure that flows are more effectively utilised by recipient African countries. The New Partnership for Africa’s Development will establish a forum of African countries so as to develop a common African position on ODA reform, and to engage with the Development Assistance Committee (DAC) of the OECD and other donors in developing a charter underpinning the development partnership. This charter will identify the Economic Governance Initiative as a prerequisite for enhancing the capacity of African countries to utilise increased ODA flows, and will propose a complementary, independent assessment mechanism for monitoring donor performance. The New Partnership for Africa’s Development will support a PRSP Learning Group to engage in the PRSP process, together with the IMF and the World Bank.

“149. Actions
- Constitute an ODA forum for developing a common African position on ODA reform, as a counterpart to the OECD/DAC structure;

- Engage, through the ODA forum, with donor agencies to establish a charter for the development partnership, which would embody the principles outlined above;

- Support efforts of the Economic Commission for Africa (ECA) to establish a PRSP Learning Group;

- Establish an independent mechanism for assessing donor and recipient country performance.”

Scope: 
Africa

Commitments in: Private Sector development and financial services for the poor - Investment

“150. The New Partnership for Africa’s Development seeks to increase private capital flows to Africa, as an essential component of a sustainable long-term approach to filling the resource gap...

...151. The next priority is the implementation of a PPP capacity-building programme through the African Development Bank and other regional development institutions, to assist national and subnational governments in structuring and regulating transactions in the provision of infrastructural and social services.
- The third priority is to promote the deepening of financial markets within countries, as well as cross-border harmonisation and integration, via a Financial Market Integration Task Force. Initially, this will focus on the legislative and regulatory environment for the financial system.

152. Actions
- Establish a task team to carry out audits of investment-related legislation and regulation, with a view to risk reduction and harmonisation within Africa;

- Carry out a needs assessment of, and feasibility study on, financial instruments to mitigate risks associated with doing business in Africa;

- Establish an initiative to enhance the capacity of countries to implement PPPs;

- Establish a Financial Market Integration Task Force that will speed up financial market integration through establishing an international standard legislative and regulatory framework and creating a single African trading platform...”

Scope: 
Africa