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Africa's Public Procurement & Entrepreneurship Research Initiative – APPERI

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Namibia: Public Procurement Bleeds Namibia


AllAfrica.com

By EDGAR BRANDT, 2 MAY 2013

Windhoek — Despite a significant increase in public expenditure, public procurement has not brought about the desired outcomes, such as increased employment, improvement in the distribution of economic opportunities, enterprise development and economic growth and development, the Minister of Finance, Saara Kuugongelwa-Amadhila, told a Tender Board meeting held recently in Windhoek.

According to the finance minister the desired outcomes have not been reached for the most part because of leakages out of the economy. “Many tenders are awarded to foreign companies even where local companies have the capacity to perform these tenders. Goods and services procured under these contracts are sourced from outside, and too many expatriates perform work on the projects under these contracts even where locals have the skills to do so. So resources leak out of the Namibian economy as a result of this and opportunities for learning and enterprise development are forfeited,” said Kuugongelwa-Amadhila.

She added that setting tenders aside for local companies and special target groups such as women and youth for economic empowerment could address these challenges.

Additional tools recommended by Kuugongelwa-Amadhila to address these issues include a policy that some tenders should require mandatory sole contracting of Namibian companies and SME‘s, that there should be requirements for local participation in all companies to be awarded tenders and that there should be a mandatory requirement for sourcing of supplies and labour services from within Namibia.

With specific regard to procurement, the finance minister noted there is a significant increase in expectations from the public for the system to help the country overcome the challenges of unemployment and inequities and to support sustainable economic growth. With public expenditure having increased significantly in the recent past, the government’s role in the economy has grown much bigger. “We should also put in place monitoring and evaluation systems to ensure that compliance with bidding commitments are enforced and that the impact of the procurement programmes is evaluated. Companies that fail to honour their bidding commitments should be held to account,” said Kuugongelwa-Amadhila, adding that the current allegations of corruption and court challenges against the decisions of the board do not augur well for the public image of the board.

Also, she encouraged the Tender Board to look at ways to delegate the adjudication of some tenders to state-owned enterprises, local authorities and regional authorities.

She also revealed that a dedicated procurement reform project office has been set up and recruitment of staff is in progress. “The office will help drive the reform process including assisting with the drafting of the regulations for the new (tender) law once passed, and operational guidelines, as well as the setting up of the procurement advisory office and the new secretariat. I encourage the board to ponder on all the challenges and ways and means of overcoming them,” concluded Kuugongelwa-Amadhila.

Trade between Europe and Africa: how to resuscitate an ailing deal


The Guardian

By Isabelle Ramdoo

Thursday, Feb. 28th, 2013

After 10 years of negotiations, how can policymakers on both sides revive a flagging relationship?

Trade negotiations between Europe and Africa seem to have stalled. Despite both sides last year celebrating the 10th anniversary of the start of negotiations over economic partnership agreements (EPAs), their attention now appears to have shifted elsewhere.

In crisis-ridden Europe, leaders are stressing the important contribution of trade to jobs and growth for economic recovery in Europe, as they did during the last European council in early February. They call for ambitious, proactive and constructive trade engagements with their “strategic partners”. But, interestingly, these partners are located on the other side of the Atlantic and in emerging Asian economies, as a letter by José Manuel Barroso, president of the European commission to Herman Van Rompuy, president of the council, highlights.

In his address to the commission, Barroso made no mention of Africa or the controversial EPAs, which haven’t been finalised by many, despite 10 long and difficult years of negotiations. And it’s no surprise why: the negotiations have been disappointing. Of the 77 African, Caribbean and Pacific countries negotiating with the EU, only 36 finalised an agreement, of which only 18 are in Africa.

Signals from Africa have not been much better: the continent is increasingly turning east and south, towards emerging markets, and is giving less attention to Europe. Although a few countries remained truly committed to an ambitious trade relationship with Europe, the lastAfrican Union summit, held in January, made no mention of EU-Africa trade. Instead, it focused on Africa’s own domestic economic dynamics, prioritising deeper regional economic integration and increased intra-Africa trade – a logical step and one which Europe itself has followed since the 1950s.

Given the political lethargy, the eurozone crisis that legitimises inward-facing economic politics and new dynamics in Africa, should we conclude that the trade relationship between Europe and Africa is dead? No. Despite all this, there are reasons and ways to resuscitate an ailing trade deal.

The reasons are that both regions remain important to each other: Europe is still the main trade, development and investment partner of most African countries. And despite its relatively low volume of trade with the EU, Africa is nevertheless a crucial source of hard and soft commodities for Europe, and in particular of strategic metals and minerals, essential for its high-tech and green-tech industries. Furthermore, the recent new discoveries of hydrocarbons are of crucial geo-strategic importance – they represent an important alternative, given the difficult political situation in the Middle East, notably with Iran. By keeping trade talks locked in the EPA debates, Europe might accentuate resentments in Africa and therefore miss out on the emerging opportunities. Continued game playing would clearly be counter-productive for both sides.

Develop a partnership of equals

What is needed is a more mature relationship, one that is based on understanding the changing dynamics of both partners and on a real partnership of equals. Europe and Africa have to be clear on their agenda, define their expectations and priorities according to agreed values, principles and interests. The shifting international balance of power places Africa in a better position to revive its partnerships to make them more effective – the challenge will be to translate the new vision into action.

On its side, Europe’s diminishing political clout in Africa implies that it needs to rethink its strategy to become a smarter partner and its engagement with developing countries in Asia or Latin America is proof that Europe can cut its coat according to its cloth. Relationships with Asia and Latin America are more business-like in nature and reflect the priorities and ambitions of each partner. The EU–Latin America and the Caribbean summit, held in January, focused on alliance for sustainable development to promote investment of social and environmental quality. In Asia, the focus is clearly on strategic economic partnerships, with specific relationships nurtured with ChinaIndiaJapan and South Korea.

Clear, consistent communications are key

Both partners have to learn to listen to each other and avoid mixed signals and conflicting incentives. Currently, Europe does not have a coherent agenda for Africa: it has different and multispeed approaches to North AfricaSouth Africa and the rest of sub-Saharan Africa. Even towards the last segment, it has different policies as the recent desire tofocus engagement on least developed countries underlines.

Appreciate regional differences

In addition, the limited success of the EPAs should teach policymakers that insisting on comprehensive trade agreements with countries that have different expectations simply does not work. Agreements should instead reflect the real interests and capacity of countries. Botswana is not Guinea. European wonks should be careful in their engagement with North Africa so that political conditionalities do not ultimately backfire on the EU’s relationship with the whole region.

Timing is everything

The moment for change is opportune. The African Union has a new chairperson who has taken up the challenge to lift the continent into a new prosperous era. Beyond gathering her troops to deliver the “African renaissance”, Nkosazana Dlamini-Zuma will have to reboot the collaboration with international partners. The challenge for her will be to balance Africa’s geo-strategic interests to get the most of all partners. For Europe, the challenge will be to plug into the new dynamics and remain relevant. But both sides need to think of a revived partnership that goes beyond trade and effectively support Africa’s structural transformation. It is the harder ask but one that will lead to the most sustainable mutual gains, and is something worth considering at theupcoming EU-Africa Summit, scheduled for the first half of 2014.

Isabelle Ramdoo is the trade and economic governance policy officer at the European Centre for Development Policy Management (ECDPM). Follow her on Twitter: @ir_ramdoo

This content is brought to you by Guardian Professional.

South Africa’s new labour policy: an analysis


by Anthea Jeffrey, The South African Institute of Race Relations, February 8, 2011

The Cabinet used the festive season to unveil five new bills: four labour, one on land. All five supposedly aim to help the poor, but their predictable effect will be to worse unemployment and build dependence on the State. Apart from the controversial Protection of Information Bill, these five bills are the firs major legislative intervention by President Jacob Zuma’s administration. They bode ill for South Africa, as the Institute’s in-house legal expert, Dr Anthea Jeffrey, explained at a briefing in Johannesburg on February 2011…In addition, the outsourcing of cleaning and other services has become an important way of promoting the preferential procurement required by the BEE of good practice. Under the bill, however, of a major corporation outsources or sub-contracts its catering needs to a BEE firm, the corporation will be liable for unfair labour practice by the BEE entity. As the RIA warms, this could ‘create a significant disincentive to supply chain diversification and have a negative impact on small business and job creation.’ Read more

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