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World Bank working paper reveals astonishing amount of aid money to the African continent going directly into tax havens!

The World Bank working paper named ‘Elite Capture of Foreign Aid – Evidence from Offshore Bank Accounts’, which was finally released yesterday is a devastating read. Not because of the facts in it, but because of the extent of the misuse and theft of aid money. The World Bank are now proving by small samples how much of their loans, grants and funds, which is given by donors to the WB, which happens to be moved to tax havens by the regimes that needs it. That is eating of the plate of the poorest and living lavish on others people’s dime.

Just in the Annex, the truth really comes forward, where it is only a small samples, but showing the distasteful enterprise still. Like from table one. You can see that a certain amount of African countries have taken out huge funds into havens deposits and non-haven deposits.

The report explains this about the table one: “The table shows the 22 countries in our main sample and presents summary statistics for the main variables in our analysis. The sample includes all countries for which annual disbursements from the World Bank are equivalent to at least 2 percent of annual GDP on average. Sample mean is the average of the 22 countries in the sample. Annual WB aid (% of GDP) is annual disbursements from the World Bank as a fraction of annual GDP. Annual ODA aid (% of GDP) is annual Official Development Assistance (ODA) from all sources as a fraction of annual GDP. Haven deposits is foreign deposits held in the 17 countries classified as havens. Non-haven deposits is foreign deposits held in the countries not classified as havens” (World Bank Feb 2020).

Nation Haven (million USD) Non-Haven (million USD)
Burkina Faso 32 88
Burundi 103 19
Eritrea 8 11
Ethiopia 64 155
Ghana 76 446
Guinea-Bissau 8 16
Madagascar 193 232
Malawi 31 82
Mali 27 133
Mauritania 32 150
Mozambique 40 161
Niger 29 79
Rwanda 149 41
Sao Tome and Principe 4 8
Sierra Leone 32 82
Tanzania 145 437
Uganda 73 188
Zambia 117 306

When you add into the A6 Table of the modestly aid-dependent countries. You see yet more African countries, where the money a flowing out of the coffers. Where surely not all aid is going where its supposed too.

The report explains table A6 like this: “The table shows the 24 countries for which annual disbursements from the World Bank are between 1% and 2% of annual GDP on average. is the average of the 24 countries in the sample. Annual WB aid (% of GDP) is annual disbursements from the World Bank as a fraction of annual GDP. Sample mean is the average of the 22 countries in the sample. WB aid disbursements is annual disbursements from the World Bank as a fraction of annual GDP. Annual ODA aid (% of GDP) is annual Official Development Assistance (ODA) from all sources as a fraction of annual GDP. Haven deposits is foreign deposits held in the 17 countries classified as havens. Non-haven deposits is foreign deposits held in the countries not classified as havens” (World Bank Feb 2020).

Nation Haven (million USD) Non-Haven (million USD)
Benin 42 96
Cape Verde 14 20
Central African Republic 18 53
Chad 11 91
Comoros 7 27
Democratic Republic of Congo 910 93
Cote d’Ivoire 387 787
Gambia 24 82
Guinea 54 114
Kenya 1277 1784
Lesotho 11 28
Senegal 253 487
Togo 82 146

Without going into deep technicalities of these operations, neither how the World Bank came through these numbers. We can see there is a staggering amount of funds that disappear and goes missing. Which was supposed to go to development or directly to support the state functions. Which happens to end up in tax-havens, surely by someone closely associated with the state or heads of state. Since, these sorts of amounts couldn’t have left the nations without the approval of the executive or head of state.

We can also clearly see, that some aid is directly feeding the rich and keeping tax-havens alive. Giving them financial stimulus and also covering the expenses of the elites in the respective places. There is certainly a mismanagement and a need for more oversight from the World Bank. But also more mechanisms to stop the misuse of aid. If it is supposed to help and not just create a very vastly elite in the nation in question. Because, with this sort of operations, they have clearly achieved that. Peace.

SADC Solidarity in the call for the lifting of Sanctions Imposed in the Republic of Zimbabwe (24.10.2019)

SADC: Solidarity Statement with the Bolivarian Republic of Venezuela (10.02.2019)

Communique of the Double Troika Summit of Heads of State and Government of the Southern African Development Community (SADC) – (24.04.2018)

Trump Administration proposed budget (FY-2018) to axe the ‘Economic Support Funds’ and the ‘Development Assistance’ on the African Continent!

Action without thought is empty. Thought without action is blind.”Kwame Nkrumah

You should expect by a man blessed and gotten the support by the Christian Conservative in the United States of America, to care a little about the ones who has less and needs support. You would expect of a man who claims to be a Christian and a man of faith to support charity and good causes. But President Donald J. Trump isn’t like any other Christian Conservative, I know, as he has used his own Foundation to buy statutes of himself and also use it on his real-estate, as well as reports of buying celebrity memorabilia.

Well, why do I start with this? Because it was released yesterday the remarkable “Financial Year 2018 Control Levels by state bureau, operating unit and Account”, this are the planned budget for the AEECA, DA, ESF, GHP-State and GHP-USAID. This United States Government document is dated not further back than the 6th April of 2017. The effects of the planned cuts in some of the regional aid projects, development aid and economic support funds, is as astonishing as the Presidency itself. It is a disgrace to anything of humanitarian understanding and belief of goodness in the Trump Administration at all. This sort of acts of disregard of humanitarian assistance, proves that the Trump Administration is a selfish, disgusting and belittling state. Who cannot afford to help the ones in need or the continue to finish the projects they have put forward abroad. The development projects overseas will now fail over night. Just take a look!

The “Economic Support funds” and “Development Assistance”, who are slashed a total of 100% from 2017 to 2018 are in Burundi, Central African Republic, Djibouti, Ethiopia, Ghana, Guinea, Madagascar, Malawi, Mali, Mauritania, Mozambique, Niger, Nigeria, Rwanda, Sierra Leone, South Africa, Tanzania, Uganda, Zambia, Zimbabwe and the African Union! Also the own offices and planning regional development all over the continent like the: USAID African Regional, USAID Central African Regional, USAID East African Regional, USAID Sahel Regional, USAID Southern Regional and the USAID West Africa Regional as well. That is 20 African countries being directly dropped by the Trump Administration and cutting needed funding of running expenses by these government. This happens without any consideration of finding alternative sources or taxing to cover the dropped direct support. That is apparent the act of the Christian Conservative President Trump, who is supposed to be a charitable and caring character. Clearly, he wants to send the African nations a message, that he doesn’t give two shits about their fate or their sustainability.

What is the meaning behind the ESF: “Economic Support Funds (ESF) is economic aid designated to promote economic or political stability in areas where the United States has special strategic interests. Authorized under Chapter 4, Part II of the Foreign Assistance Act of 1961, ESF is a flexible assistance tool that can be structured to meet a diverse range of foreign policy and economic development objectives. The makeup of ESF programs are made on a country-specific basis, while the nature of ESF assistance to a particular country is determined by a combination of the needs of the recipient and U.S. foreign policy objectives. Among ESF’s diverse applications are the following programs (among others): advancing peace and stability, building accountable and transparent institutions, creating economic and educational opportunities for youth, countering extremist ideology, counter-terrorism and counternarcotics, governance, economic growth, anti-corruption, trade capacity building and democratic strengthening. The executive branch is responsible for policy decisions and justifications for ESF use, including country eligibility and funding levels” (Security Assistance Monitor).

What is the meaning behind the “Development Assistance”: “ … [for] sustained support of the people of developing countries in their efforts to acquire the knowledge and resources essential to development and to build the economic, political, and social institutions which will improve the quality of their lives.” (USAID, 2005).

So the Trump Administration apparently doesn’t see any Foreign Policy or Economic Development Objectives inside 20 African Nations in Financial Year of 2018. This is only in the African States and Republics, not all over the world. Clearly the values of quality of life, building economic, political and social institutions doesn’t matter to Trump. The monies saved are surely going to more ‘Mothers of All Bombs” or to expensive carriers to fight an unnecessary war. Since, President Trump is caring or considering about the acts of his time in office.

The USAID operations on the African continent is clearly sending a message, that he does not think off or has anything to offer them. That the U.S. plans to be their uncle or sugar-daddy, that their instead thinking of leaving them behind. The wealth of United States rather goes to building war-ships and bombers, than being used on Humanitarian projects building institutions abroad. Therefore, the United States as a power-player on the African continent is gone with this. As their forged relationship and patronage is gone with this sort of budget. The significant relationship between their development projects in the 20 nations who suddenly get brash cuts and stopped all funding off. Peace.

Reference:

Security Assistance Monitor – ‘Economic Support Funds’ link: http://securityassistance.org/south-asia/content/economic%20support%20fund

USAID – ‘U.S. Foreign Assistance Reference Guide’ (2005) link: http://pdf.usaid.gov/pdf_docs/Pnadc240.pdf

MEPs back trade deal with six African countries (14.09.2016)

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BRUSSELS, Belgium, September 14, 2016 –The European Parliament approved an agreement granting duty-free access to the EU for products from Namibia, Mozambique, Botswana, Swaziland and Lesotho, and improved market access for South Africa on Wednesday.

“This agreement will help our African partner states to reduce poverty and can also facilitate their smooth and gradual integration into the world economy. There are also many safeguards in the deal to ensure that local people truly benefit from this cooperation. The language on human rights and sustainable development is one of the strongest that you will find in any EU agreement”, said rapporteur Alexander Graf Lambsdorff (ALDE, DE), before the vote.

MEPs approved the deal by 417 votes to 216, with 66 abstentions.

Free access to EU markets

The Economic Partnership Agreement (EPA) with six member states of the South African Development Community (SADCestablishes a “positive discrimination”, ensuring immediate duty- and quota-free access for their exports to the EU market. It also creates new regional opportunities through more flexible use of rules of origin.

The African countries will liberalise 86% of their trade with the EU (Mozambique 74%) over ten years with the exception of agricultural and fishery products. The deal replaces the previous interim agreements based on unilateral trade preferences and complies with World Trade Organisation (WTO) rules.

Safeguards

While the agreement covers only trade and development cooperation, it leaves the door open for services, investment, intellectual property and public procurement. To mitigate potential negative impacts on the SADC countries, several safeguards were added to the deal. The EU undertook not to subsidize its agricultural exports to these countries.

The deal also lists trade-related areas that could benefit from EU development cooperation funding, but none is pledged at this stage.

Monitoring

In a July resolution, international trade MEPs advocated strengthening the monitoring of the agreement to ensure that “its benefits for the people are maximized”. The committee also tabled an oral question to the Commission for this plenary on parliamentary oversight and civil society monitoring.

Next steps: The deal will enter into force once the Council formally approves it and the national parliaments of the six African states ratify the text.

Note to the editors: in the Cotonou Partnership Agreement of 2000, African, Caribbean and Pacific (ACP) countries and the EU agreed to negotiate reciprocal, though asymmetric, trade agreements to comply with WTO rules and to support these countries’ development and integration into the world economy.

Negotiations were to be concluded by the end of 2007, but the process took longer and the EU finished negotiations with six states of the SADC Group in July 2014. Angola finally decided not to enter into the agreement, but may join in the future. 

Negotiations with six SADC states ended in 2014. The other eight (Democratic Republic of Congo, Madagascar, Malawi, Mauritius, Seychelles, Tanzania, Zambia and Zimbabwe) belong to other regional EPA groupings.

Press Release: African Countries Launch AFR100 to Restore 100 Million Hectares of Land (05.12.2015)

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Commitments from 10 countries announced at the Global Landscapes Forum

PARIS (December 6, 2015)—African countries launched AFR100 (African Forest Landscape Restoration Initiative), a pan-African, country-led effort to restore 100 million hectares (386 thousand square miles) of degraded and deforested landscapes by 2030. The AFR100 target of 100 million hectares has been endorsed by the African Union. So far 10 African countries have agreed to join AFR100 and committed at least 31.7 million hectares of land for forest landscape restoration. AFR100 partners are earmarking more than USD $1 billion in development finance and more than $540 million in private sector impact investment to support restoration activities.

The announcement was made during the Global Landscapes Forum at the Conference of Parties (COP21) in Paris, where forest landscape restoration is a key ingredient of the global movement to adapt to and mitigate climate change. Commitments made through AFR100 build on significant climate pledges made by many African countries to support a binding global climate agreement.

“Restoring our landscapes brings prosperity, security and opportunity,” said Dr. Vincent Biruta, Minister of Natural Resources in Rwanda. “With forest landscape restoration we’ve seen agricultural yields rise and farmers in our rural communities diversify their livelihoods and improve their well-being. Forest landscape restoration is not just an environmental strategy, it is an economic and social development strategy as well.”

For the first time, AFR100 brings together political leadership with an ambitious package of financial and technical resources to support a large-scale forest landscape restoration effort across Africa. Nine financial partners and 10 technical assistance providers have pledged support, led by the New Partnership for Africa’s Development (NEPAD Agency), Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), and World Resources Institute (WRI).

“The scale of these new restoration commitments is unprecedented,” said Wanjira Mathai, Chair of the Green Belt Movement and daughter of Nobel Peace Prize Laureate Wangari Maathai. “I have seen restoration in communities both large and small across Africa, but the promise of a continent-wide movement is truly inspiring. Restoring landscapes will empower and enrich rural communities while providing downstream benefits to those in cities. Everybody wins. ”

Countries that have agreed to join the AFR100 initiative include:

• Democratic Republic of Congo | 8 million hectares
• Ethiopia | 15 million hectares
• Kenya | Committed, but finalizing hectare target
• Liberia | 1 million hectares
• Madagascar | Committed, but finalizing hectare target
• Malawi | Committed, but finalizing hectare target
• Niger | 3.2 million hectares
• Rwanda | 2 million hectares
• Togo | Committed, but finalizing hectare target
• Uganda | 2.5 million hectares

AFR100 builds on the climate commitments made by African countries. So far, 13 of the INDCs (Intended Nationally Determined Contributions) submitted by African countries include restoration, conservation of standing forests, or “climate-smart” agriculture. According to WRI analysis, following through on the commitments would cumulatively reduce emissions by 1.2 Gt CO2eq over the next 10 years, or 36 percent of Africa’s annual emissions and 0.25 percent of global emissions.

“Restoration is really Africa’s gift to the world,” said Dr. Andrew Steer, president and CEO, World Resources Institute. “As the world forges a climate agreement in Paris, African countries— which bear the least historic responsibility for climate change– are showing leadership with ambitious pledges to restore land. These countries are well on their way to meet the goal of restoring 100 million hectares of land, which will help sequester carbon and bring economic benefits to low-income, rural communities. These African leaders are turning their words into action and making a real contribution to respond to the global threat of climate change.”

AFR100 recognizes the benefits that forests and trees can provide in African landscapes: improved soil fertility and food security, greater availability and quality of water resources, reduced desertification, increased biodiversity, green jobs, economic growth, and increased capacity for climate change resilience and mitigation. Forest landscape restoration has the potential to improve livelihoods, especially for women. For example, 20 years ago, women in southern Niger spent an average of 2.5 hours daily collecting firewood, which was scarce in the degraded landscape. Now they prune on-farm trees saving two hours a day, time that can be spent on other income generating activities.

Commitments announced through AFR100 also support the Bonn Challenge, a global target to bring 150 million hectares of land into restoration by 2020 adopted in Germany in 2011, the New York Declaration on Forests that extends that challenge to 350 million hectares by 2030, and the African Resilient Landscapes Initiative (ARLI), an initiative to promote integrated landscape management with the goal of adapting to and mitigating climate change. With these new partners, the Bonn Challenge process has surpassed the 100 m hectare mark, on track to meet its goal well ahead of the 2020 target date.

AFR100 builds on a strong tradition of successful forest landscape restoration in Africa. In Ethiopia’s Tigray region, local communities have already restored over 1 million hectares, making the land more drought-resistant. In Niger, farmers have increased the number of on-farm trees across 5 million hectares of agricultural landscapes, improving food security for 2.5 million people. AFR100 will provide a forum for countries and communities to share knowledge and resources to achieve restoration at a greater scale.

“We know that restoration works for Africa. We’ve seen it work in countries as diverse as Malawi, Ethiopia, and Mali,” said Dr. Ibrahim Assane Mayaki, CEO of NEPAD and former Prime Minister of Niger. “But we need to scale up restoration across the whole continent- more than 700 million hectares of land in Africa have potential for restoration. AFR100 provides a platform to work together more effectively to accelerate the achievement of restoration successes to benefit tens of millions of people who are currently searching for ways to adapt to climate change and improve their well-being.”

AFR100 will help to translate ambitious commitments into action with support from private sector investors, foundations, development banks, and bilateral and multilateral funders. AFR100 will leverage a variety of financing, including grants, equity investments, loans, risk management guarantees and funds for specific interventions.

So far, AFR100 partners have set forth over USD $1 billion of development financing:

  • World Bank: USD $1 billion in investment in 14 African countries by 2030, as part of the Africa Climate Business Plan to support Africa’s climate resilient and low carbon development
  • Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) is providing support for the development of the AFR100 initiative

Impact investors have already earmarked USD $546.5 million for restoration under AFR100:

  • Ecoplanet Bamboo: USD $175 million by 2020
  • Sustainable Forest Investments – Netherlands: USD $150m by 2030
  • Terra Global Capital: USD $100 million by 2030
  • Green World Ventures: USD $65 million by 2020
  • Moringa Partnership: USD $56.5 million by 2030
  • NatureVest (impact investment arm of the Nature Conservancy)
  • Permian Global

Through AFR100, we expect to trigger one of the largest investments in forest landscape restoration the world has ever seen,” said H.E. Dr. Gerd Müller, Federal Minister for Economic Cooperation and Development, Germany. “This investment is vital for empowering local communities to scale up the inspiring restoration successes we’ve seen in Africa over the last decade.”

In addition to new financing, a coalition of organizations will provide technical assistance on a wide range of activities, including the mapping of restoration opportunities, securing further financing, and implementing restoration efforts on the ground. Partners include World Resources Institute (WRI), Clinton Foundation, Food and Agriculture Organization of the United Nations (FAO), International Union for Conservation of Nature (IUCN), Jane Goodall Institute (JGI), Kijani, New Partnership for Africa’s Development (NEPAD Agency), The Landscapes for People, Food and Nature Initiative (LPFN), and The Nature Conservancy (TNC) and The Greenbelt Movement.

Press Release: Kenya must review Double Tax Agreement with Mauritius (02.11.2015)

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(Nairobi, November 2, 2015) – Kenya is teetering on the brink of financial meltdown with the implosion of at least two private commercial banks in the last few months and signing of loophole-ridden double taxation agreements with tax havens Mauritius, United Arab Emirates and Qatar.

Tax havens are countries or states that position themselves as low tax jurisdictions allowing companies and rich individuals to hide their wealth without paying appropriate taxes where they actually make their profits or wealth. Tax Justice Network-Africa (TJN-A) in October 2014 sued the Government of Kenya (specifically the Cabinet Secretary to the Treasury, Kenya Revenue Authority and the Attorney-General) challenging the constitutionality of the Kenya/Mauritius Double Taxation Avoidance Agreement signed in Port Louis, Mauritius on May 11, 2012 and as contained in Legal Notice 59 published in the Kenya Gazette of May 23, 2014.

The Agreement significantly undermines Kenya’s ability to raise domestic revenue to underpin the country’s development by opening up loopholes for multinational companies operating in the country and super- rich individuals to shift profits abroad through Mauritius to avoid paying appropriate taxes. For example, provisions under Article 11 of the Agreement relating to interest limit Kenya’s withholding tax to 10 per cent whereas the Kenyan domestic rate currently stands at 15 per cent. This will significantly affect the tax base of the Kenya Revenue Authority (KRA). The Agreement also sharply contravenes Articles 10 and 201 of the Constitution and is inconsistent with the principles of good governance, sustainability and accountability. The Agreement is open to abuse and this could endanger the growth and development of Kenya.

Three main reliefs sought by TJN-A are: that the High Court declares the government’s failure or neglect to subject the Kenya-Mauritius Double Taxation Avoidance Agreement to ratification in line with the Treaty Making and Ratification Act 2012 as a contravention of Articles 10 (a), (c) and (d) and 201 of the Constitution of Kenya.

That the Court directs the Cabinet Secretary for Treasury to immediately withdraw Legal Notice 59 of 2014 and commence the process of ratification in conformity with the provisions of the Treaty Making and Ratification Act 2012.  And award cost of the petition with interest against the Government of Kenya. The case came up for mention at the Nairobi High Court today, November 2, 2015. The court will fix a date for hearing the case on November 9, 2015. Speaking at a press briefing earlier today, the Executive Director of TJN-A, Alvin Mosioma said “there is need for public participation in the process of ratification of double tax agreements…double tax agreements kill the competitive edge of local firms”. 2 Senator Hassan Omar of Mombasa County who also addressed the press said Kenya’s “Parliament needs to appreciate its responsibility in safeguarding the public’s interests,” adding that “the reason people steal is because there is complicity and people are aware of it”. Provisions under Article 12 of the Agreement which relates to royalties also restrict at- source withholding tax to half (10 per cent) of Kenya domestic rate of 20 per cent. This will significantly weaken Kenya’s ability to raise revenue to finance its development. Additionally provisions under Article 20 of the Agreement reserves all taxation of “other income” not dealt with in specific Articles to the residence state.

This effectively reduces withholding tax to zero per cent on services, management fees, insurance commissions among others, whereas Kenyan domestic withholding tax rate currently stands at 20 per cent. This is a major gap that will lead to massive revenue leakages. The Agreement is neither United Nations nor OECD compliant and it also fails to address the issue of disposal of shares in companies. The Agreement effectively reserves under Article 13.4 all taxation of capital gains from selling shares in companies to Mauritius where the effective Capital Gains Tax is zero per cent. Under the Agreement foreign investors in Kenya can acquire Kenyan companies through Mauritius holding companies and Kenya cannot tax any of the gains when they sell these businesses again. This is open to abuse. Similarly, domestic Kenyan investors can dodge Kenyan taxes by round-tripping their investments illicitly through Mauritian shell companies. Kenyan companies can also easily avoid Kenyan taxes in dividends paid to foreign investors through devices like share buy-backs therefore deny the government of development funds.

The provision is very similar to the Capital Gains Tax Article in the India-Mauritius treaty which has proved very controversial costing India an estimated US$600 million a year in revenues as a result of tax avoidance and illicit round-tripping by Indian business executives driving the Government of India to initiate steps to renegotiate its agreement with Mauritius. Under the definition of ‘bilateral treaty’ in Section 2 of the Treaty Making and Ratification Act an ‘agreement’ such as the one between Kenya and Mauritius and which is the subject matter of this legal case, is a treaty subject to the Act and therefore requires that the Cabinet Secretary to the Treasury in consultation with the Attorney General, submit to the Cabinet the treaty, together with a memorandum outlining, inter alia – 1. Policy and legislative considerations, 2. Financial implications 3. Implications on matters relating to counties, 4. The views of the public on the ratification of the treaty.

Mauritius presently has tax treaties with 13 African countries namely Botswana, Lesotho, Madagascar, Mozambique, Namibia, Rwanda, Senegal, Seychelles, Swaziland, South Africa, Tunisia, Uganda and Zimbabwe. Apart from Kenya, Mauritius also has signed Double Taxation Agreements with Congo, Zambia and Nigeria. Currently Mauritius is negotiating DTAs with Algeria, Burkina Faso, Egypt, Gabon, Ghana, Malawi and Tanzania. Unlike Mauritius’ DTA with Uganda and Nigeria, for example, which have specific provisions for withholding tax for management/technical services fees, Kenya failed to negotiate any such provisions. 

In a related development, the Government of Kenya has signed an equally harmful Double Tax Agreement with United Arab Emirates and Qatar – both of which are tax havens – in which Kenya further deems its right to tax as unnecessary in a bid to attract investment from these two countries. These agreements will deepen Kenya’s current cash crunch by allowing the further erosion of the country’s tax base. – END.

ABOUT TJN-A: Tax Justice Network-Africa (TJN-A) is a Pan-African initiative and a member of the Global Alliance for Tax Justice. It is a network of 29 members in 16 African countries. TJN-A collaborates closely with these member organisations in tax justice 3 advocacy at the national and regional levels. TJN-A seeks to promote socially just and progressive taxation systems in Africa, advocating for pro-poor tax policies and the strengthening of tax systems to promote domestic resource mobilisation. TJN-A aims to challenge harmful tax policies and practices that favour the wealthy and aggravate and perpetuate inequality. For further enquiries, please email Kwesi Obeng at kobeng@taxjusticeafrica.net (+254 726 804 400) and/or Michelle Mbuthia at mmbuthia@taxjusticeafrica.net (+254 724 994 796).

2016/082/AFR: World Bank Approves a Social Safety Net Project for Madagascar (17.09.2015)

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More than 162,500 vulnerable people are targeted 

WASHINGTON, September 17, 2015 – The World Bank’s Board of Executive Directors has approved a US$40 million credit for a social safety net project in Madagascar.

“This operation will support the government in increasing the access of extremely poor households to safety net services and in laying the foundations for a social protection system,” said Andrea Vermehren, Lead Social Protection Specialist at the World Bank.

The economic and political crises in Madagascar coupled with the country’s recurrent exposure to natural disasters have had adverse effects on food security and human development. The enrollment rate for children between 6 to 10 years old dropped sharply from 80 percent to 75 percent between 2005 and 2010, and over 40 percent of Malagasy children under the age of 5 suffer from chronic malnutrition, one of the highest prevalence rates in the world. “In response to this situation, the Government’s General Policy (Politique Générale de L’Etat) has made it a priority to develop the social protection sector” reminded Onitiana Realy, the Minister of Population, Social Protection, and Promotion of Women.

This three-year project will focus on five regions selected jointly by the Malagasy Government, the National Nutrition Office and the Intervention Fund for Development (FID), based on data related to the poverty level, malnutrition rates, school attendance rates, food security, productive potential and complementary programs/interventions. Following this process, the project will be implemented in Atsinanana, Atsimo Andrefana, Haute Matsiatra, Vatovavy Fitovinany and Vakinankaratra. It will target 32,500 extremely poor households, thus reaching more than 162,500 individuals, with an overall equal participation of men and women.

The Social Safety Net Project will help establish a systematic and programmatic approach to social protection, focusing on investing in the human capital and productive assets of Madagascar’s extreme poor in addition to supporting the government’s leadership capacity.

“This project is in support of the Malagasy Government’s goal to promote inclusive growth by giving work opportunities to the poorest families and helping them in sending their children to school. The World Bank shares this goal which is at the core of its mission to eradicate extreme poverty and is proud to help the poorest gain livelihood and dignity”said Coralie Gevers, World Bank Country Manager for Madagascar.

Press Release: The USAID Trade and Investment Hub, Syngenta and IREN Launch Second Edition of Agribusiness Competion for Youth in East Africa (04.09.2015)

USAID Trade PR

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