EUROPEAN UNION DE 78 0 EUROPEAN COMMISSION JULY 1994 • Text: European Commission Directorate-General for Development Unit "Communication, Publications, COl/rier ACP-EU" (Nicola Usborne, Jeffrey Russell)

Photographs: Paola Amadei (PA) p.3G Dr. Wim A. G. Blank (WB) pp. 14,16,21,31,32 Dr. Antonius Bruser (AB) p.4G Dennis Cleaver (DC) p.38 Jan DeKok (JDK) p.35 Birgit Elgaard (BE) p.35 G. Farrell (GF) p.44 Jean Harold Gyselynck (JG) p.24 Seamus Jeffreson (Sf) p.49 M. Jones (Mf) p.44 Lesotho Highlands Water Project (LHWP), p.26 Paola Marchetti (PM) p.5G Harry Rook (HR), p. 27 Jeffrey Russell (JR) pp.2, 6, 9, 46, 52 D. W. Schmidt (DWS) p.23 John Stonehouse (JS) p.49 Association for Training and Resources in Early Education (TREE), p.51 Daniel de Vas (DV) p.17

Layout: Bam's Studio, Brussels

This volume is published as n078 in the series Europe Information-Development (DE 78). Manuscript completed in May 1994.

Luxembourg: Office for Official Publications of the European Communities, 1994. © ECSC - EC - EAEC, Brussels - Luxembourg, 1994.

Reproduction is authorized, except for commercial purposes, provided the source is acknowledged. Printed in Belgium SOUTHERN AFRICA AND THE EUROPEAN UNION

CONTENTS

Introduction 3

The European Union and Development Co-operation 4

The Union in Europe and in the World 4 The Lome Convention and the ACP Group 5

Southern Africa and the European Union 6

Economic and political situation of Southern Africa 6 Instruments of EU-Southern Africa co-operation 8

Regional co-operation: 11 • Transport and communications 13 • Food security, agriculture and natural resources 15 • Human resource development 17 • Other areas 18

Co-operation with ACP states: 20 • Angola 20 • Botswana 22 • Lesotho 25 • Malawi 28 • Mozambique 31 • Namibia 34 • Swaziland 36 • Tanzania 39 • Zambia 42 • Zimbabwe 45

Co-operation with South Africa 48 The famous Baobab tree near the Victoria Falls. The Baobab tree, between 3000 and 4000 years old, is found throughout Southem Africa. (JR)

Southern Africa

o o

TANZANIA

ANGOLA o 0 MALAWI o D ZAMBIA

ZIMBABWE NAMIBIA o BOTSWANA D

SOUTH AFRIC

SADC States INTRODUCTION _

In 1975 the European Community As signatories to the agreement, these spent over 5000 million European signed a comprehensive co-operation Southern African States are entitled to Currency Units (ECU)2 for the region. agreement - the Lome Convention ­ a number of aid and trade advantages. with a group of independent African, On the trade side, almost all their Convinced of the tangible benefits of Caribbean and Pacific (ACP) countries, exports can enter the European Union' regional co-operation after some which included Botswana, Lesotho, market free of duties or quotas. This is 35 years of practical experience in Malawi, Swaziland, Tanzania and significant, as the Union buys over Europe, the Union has provided Zambia. Shortly after achieving inde­ 25% of their total exports. Overall, the encouragement and financial and tech­ pendence in 1980, Zimbabwe signed tra'de balance is in their favour. nical assistance to the Southern the second Lome Convention. Special arrangements for beef and African Development Community ­ Mozambique and Angola joined the sugar, and for compensation for losses and to its predecessor, the Southern ACP group in 1984 and 1985, on on exports of other commodities, are African Development Coordination signing the third Lome Convention, also of assistance. Conference - since the latter's esta­ while Namibia, which achieved inde­ blishment in 1980. Since 1986 almost pendence in March 1990, became the On the aid side, the Union has been all the Union's regional assistance to 69th ACP State on its accession to the operating an increasingly substantial Southern Africa has been coordinated fourth Lome Convention in December programme of financial and technical by SADCC/SADC, which has been of the same year. co-operation. By 1995, it will have better placed as a result to plan the use of the resources available.

SADC States European Union South Africa In response to the profound political reforms in the country, the EU has Countries 10 12 begun a process of normalising rela­ tions with South Africa. The lifting of Total area 5 707031 km2 2362939 km2 1221038 km2 trade sanctions will allow renewed Population 86 million 347 million 38 million access to Europe's 347 million consu­ mers - promising considerable revenue Average GNP $ 785 $17346 $2560 from export earnings. Development per capita aid is being provided in the context of (U5$1991)* the Union's "Special Programme on South Africa" - the largest program­ Main exports Copper, diamonds, Steel, machinery, Gold, base metals, mable development initiative ever gold, tobacco, sugar, vehicles, chemicals, mineral products, implemented by the EU anywhere in meat, tea, coffee, foodstuffs platinum the world. cotton

*Based on World Bank data published in World Development Report, 1993. The importance of EU-Southern Africa relations is underlined by the presence in Brussels of an ambassador from o South Africa and each of the SADC countries. On its side, the European The European Union Commission maintains a delegation in each of the SADC States and in South - Member States Africa to implement its aid program­ me. IZ2J Applicant States This brochure presents the principal aspects of co-operation between the European Union and the countries of Southern Africa.

, In 1993 the European Community was subsumed into a new entity called the Enropean Union. See p4 for use of terms. , 1 ECU = 1.15 US S in April 1994.

3 THE EUROPEAN UNION AND DEVELOPMENT CO-OPERATION _

The Union in Europe

The European Union is made up of twelve countries: Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain and the United Kingdom!. All these countries signed three treaties which formed the initial framework for the construction of a united Europe - notably the European Coal and Steel Community (ECSC) treaty in 1951, and both the European Atomic Energy Community (EUR­ ATOM) treaty and the European Economic Community (EEC) treaty in 1957.

The aim of these treaties was the for­ mation of an economic union - facilita­ ting progress towards monetary and political union - in which goods, people, capital and services can circu­ late freely, and where foreign trade, agriculture, fisheries, transport and other sectors of the economy are In addition to its trade activities, the Union governed by common policies. The Union in the world contributes to the economic development In its relations with other countries the of the majority of countries in the Third The Single Act (1986) increased the Union seeks to encourage world trade World. Itdevotes a share of its annual bud­ Community's scope and decreed that and the economic development of the get to aid programmes in the southern and the internal market should be comple­ poorer countries. ~rernMro~ITane~in~illandin~fu ted by the end of 1992. Under the America; and it provides assistance to Treaty on European Union (1992 ­ It has supported successive rounds of tariff 70 African, Caribbean and Pacific countries often known as the Maastricht rrouctions: at 5.6% the average level of its from the European Development Fund. Treaty), the EEC became the European own external tariff is one of the lowest in Community (EC), and, with the old the world. It is a party to all international Union aid funds represent about 15% of ECSC and EURATOM, was subsumed commodity agreements, and has set up a the total aid effort of its Member States, into a new entity called the European sizeable fund to help stabilise the export which between them provide over 40% Union. The Union is a grouping of the earnings of many producer countries. of all official development assistance. same 12 member states but has wider powers - covering justice and home affairs, the establishment of economic and monetary union, and a common foreign and security policy. The deci­ sion to support democratisation in South Africa with a co-ordinated pro­ gramme was one of the first joint actions taken under the EU Treaty.

The treaty delegates responsibility for conducting policy in the sphere of development co-operation to the EC. For this reason - and because much of the co-operation discussed in this brochure was in operation before the creation of the EU - the term "Community" will frequently be used.

, Four applicant countries - Austria, Finland, Norway and Sweden - have completed negotia­ tions to join the European Union in 1995. 2 From 1995 the Commission's term of office will be extended to five years. J MECU = million ECU.

4 The Lome Convention

The Lome Convention has four essen­ tial features: • It is a ten-year contract freely nego­ tiated between equal partners. The security it offers enables the associa- 7 ted countries to plan their economies 8 with greater confidence. 17 • It is non-aligned in that it respects 20 each partner's freedom to choose its economic system, political regime and development model. It embraces countries represented by governments of varying political 35 tendencies. 37 • It is a comprehensive agreement that combines a whole range of co-opera­ tion instruments providing a balan­ 10 ced response to needs that vary with economic structures and levels of development. The Southern African ACP States, like all other countries 28 that have signed Lome, decide them­ selves which development instru­ J;l1ents to use, according to their own priorities. Africa • Its institutions (ACP-EU Council of Ministers and Committee of Ambassadors, ACP-EU Joint Assembly) make for a permanent dialogue between governments and Caribbean Pacific with the European Parliament. ·...64

These institutions operate at different levels: • The ACP-EU Council of Ministers manages the Lome Convention at government level, and is the ultima­ ACP Countries 39. Somalia te decision-maker on questions of The ACP Group 40. Sudan AFRICA 41. Swaziland co-operation. 42. Tanzania Founded in 1975, with the signing of 1. Angola 43. Togo 2. Benin 44. Uganda • The ACP-EU Committee of the Georgetown Agreement: 3. Botswana 45. Z1.ire Ambassadors (based in Brussels) 4. Burkina Faso 46. Zambia meets more often than the Council of 5. Burundi 47. Zimbabwe Institutions 6. Cameroon Ministers. This Committee monitors 7. Cape Verde CARIBBEAN ACP-EU co-operation and has cer­ 8. Central African Republic 1. The Council of Ministers: the 9. Chad tain powers delegated by the 10. Comoros 48. Antigua and Barbuda supreme body with decision-making 11. Congo 49. Bahamas Council of Ministers. 12. Djibouti 50. Barbados power. Member States are represen­ 13. Equatorial Guinea 51. Belize ted at ministerial level. The Council 14. Eritrea 52. Dominica • The ACP-EU Joint Assembly consists 15. Ethiopia 53. Dominican Republic of a representative from each ACP defines the broad outlines of the 16. Gabon 54. Grenada Group's policies, and examines 17. Gambia 55. Guyana State and an equal number of 18. Ghana 56. HaIti Members from the European ACP-EU co-operation as well as 19. Guinea 57. Jamaica 20. Guinea Bissau 58. Saint Christopher & Parliament. It meets twice a year. intra-ACP matters. 21. Ivory Coast Nevis The Joint Assembly serves as a 22. Kenya 59. Saint Vincent & 23. Lesotho The Grenadines forum for discussions and as a sti­ 2. The Committee of Ambassadors: 24. Liberia 60. Saint Lucia composed of ACP Ambassadors to 25. Madagascar 61. Suriname mulus to ACP-EU co-operation. 26. Malawi 62. Trinidad & Tobago the EU or their representatives, 27. Mali 28. Mauritius Consultations with the two sides of assists the Council of Ministers and 29. Mauritania PACIFIC industry can be arranged on the initia­ supervises the implementation of the 30. Mozambique 31. Namibia 63. Fiji tive of the Assembly. Ad hoc meetings Lome Convention. 32. Niger 64. Kiribati can also be held under the aegis of the 33. Nigeria 65. Papua New Guinea 34. Rwanda 66. Solomon Islands ACP-EU Council of Ministers on 3. The ACP General Secretariat: co­ 35. Sao Tome Principe 67. Tonga 36. Senegal 68. Tuvalu "dearly defined matters of common ordinates the activities of the ACP 37. Seychelles 69. Vanuatu interest". institutions. Located in Brussels. 38. Sierra Leone 70. Western Samoa

5 SOUTHERN AFRICA AND THE EUROPEAN UNION

ECONOMIC AND POLITICAL SITUATION OF SOUTHERN AFRICA

Population The aim is to reduce internal (budget) holders, who make up the vast majority as well as external (balance of pay­ of the region's farmers. The staple crop Southern Africa is vast and on the ments) imbalances. Resource allocation is maize. Sorghum, which is more whole sparsely populated. The ten and mobilisation will be improved by drought-resistant, is widely cultivated. SADC countries between them cover removing protection for consumers Millet and wheat are also grown, and 5.7 million square kilometres, well (formerly provided by subsidies and parts of Zambia and the eastern coastal over twice the size of the European the freezing of prices paid to produ­ areas produce rice. Union. Their combined population is cers) or importers (by reforming cus­ just over 85 million, almost four times toms tariffs) - and by juggling with For various reasons the SADC region smaller than the Union's, and only a monetary and tax policy (offering more does not usually produce enough food little over two and half times larger attractive interest rates to depositors, to feed its inhabitants - necessitating than South Africa's. South Africa's raising the basis for taxation and so on). large annual cereal imports. The unu­ particularly large allocation of Union Public sector management is being sually severe drought which hit the aid reflects this fact that its population rationalised or reoriented (reducing the region in 1991/1992 - dubbed "the worst is considerably bigger than that of public sector's hold on the economy, in living history" - required 5.5 million most SADC countries. reviewing public spending etc.). As tonnes of cereal imports. mentioned overleaf, these measures are The average density is low partly fully supported by the EU, as well as by Under their structural adjustment pro­ because agriculture or cattle breeding most other major multilateral donors. grammes, many SADC governments are are the principal occupations ­ liberalising their agricultural sector poli­ although South Africa has a sophistica­ Agriculture cies. With greater economic incentives ted industrial sector, the SADC region for farmers and rural people, production contains very few industrial centres Although commercial farming plays a can be expected to grow. apart from Zambia's Copperbelt - and major role in some countries, notably partly because large tracts of land are Zimbabwe and South Africa, food pro­ Fish are an important source of food and uninhabitable desert or semi-arid scrub duction is mainly in the hands of small- income in the areas around Lake or grassland capable of supporting wildlife or cattle but very few people. The Victoria Falls, the "smoke that thunders" in the heart of Southern Africa. (TR) Arable land is in fact quite limited, while the population is increasing rapidly, at an average rate of over 3% a year. Pressure on the land is therefore a serious problem in some areas, and the question of optimum land use occupies authorities everywhere.

The SADC region contains some of the very poorest and most aid-dependent countries in the world: in 1993 the World Bank! placed Mozambique and Tanzania at the bottom of a table ranking countries according to GNP per capita. Other important development indicators such as life expectancy at birth and adult literacy rates reveal the under-develop­ ment of many of the SADC states. Zambia is one of the world's most indeb­ ted countries - with a foreign debt equal­ ling almost US$l 000 per capita.

Structural adjustment

In the last few years many Southern African states - to date Lesotho, Malawi, Mozambique, Tanzania, Zambia and Zimbabwe - have taken the decision to implement structural adjustment programmes.

, "World Development Report 1993", World Bank.

6 Tanganyika, Lake Malawi and the artifi­ rist industry. Protecting them and industry has recently increased in cial lakes formed by the Kariba and their habitat is becoming an increasing­ Botswana, Lesotho and Swaziland, Cahora Bassa dams across the Zambezi. ly important issue, entailing in some which, together with Namibia, obtain South Africa's coastal waters are stocked areas - such as the Zambezi Valley and most of their imports from South Africa. with pelagic fish, prawns are northern Botswana - difficult decisions By far the largest share of SADC's trade, Mozambique's leading export, Namibia on land use, to reconcile the sometimes however, involves overseas partners. is exporting increasing quantities of conflicting demands of cattle owners, hake and mackerel, and the waters off safari operators and conservationists. Although Zimbabwe, alone among Angola's southern coast contain some of SADC states, possesses a diversified the richest fishing areas in African industrial sector - manufactured pro­ waters. Industry and trade ducts currently make up about 35% of its exports - it still conducts most of its The principal cash crops are sugar, cof­ Although it employs far fewer people trade with overseas partners, so like its fee, tea, tobacco, cotton and sisal. than agriculture, mining is of crucial neighbours depends heavily on the Tobacco, sugar and coffee are the big­ importance for several SADC states and region's international transport net­ gest export earners for, respectively, for South Africa. Diamonds are far and work. This has been seriously disturbed Malawi and Zimbabwe, Swaziland and away the leading exports for Botswana as a result of the political events of the Tanzania. Cashew nuts are an impor­ and Namibia, and are also mined in past 15 years. tant cash crop in Mozambique and South Africa, Tanzania and Angola. Tanzania. The principal markets for all Copper still accounts for 90% of .these crops are in Europe. The move­ Zambia's foreign exchange earnings, Political situation ment of commodity prices is therefore of and gold, chrome and a variety of other great significance, especially as many minerals make up over 30% of Side by side with economic liberalisa­ smallholders are now being encouraged Zimbabwe's exports. Mining (particu­ tioh, many SADC states have recently to grow one or other of these cash crops larly gold mining) is the most important experienced profound political reform. as a supplement to traditional food sector in the South African economy ­ Namibia attained its independence in crops. The overall trend of tropical agri­ and thousands of workers from 1990 following a multi-party election, cultural prices has unfortunately been Lesotho, Swaziland and Mozambique Lesotho and Zambia have adopted downwards in the last decade, while the have traditionally found employment in democratic rule, while Swaziland, cost of imported machinery and fertiliser the country's mines. Malawi and Tanzania are implemen­ has risen. In the agricultural sector the ting changes to their political systems. "terms of trade" have therefore deterio­ Recent years have seen sharp fluctua­ rated for the Southern African countries. tions in world metal prices. As a result, The Rome peace accords in October some Southern African countries ­ 1992 marked the eventual end of Livestock and wildlife notably Zambia - are trying to diversify Mozambique's bloody 15-year long their economies away from over-depen­ civil war. Reconstruction is slowly Cattle farming is important through­ dence on the metal sectors as part of beginning, refugees are returning out Southern Africa. The SADC coun­ their general structural adjustment mea­ home, and elections should take place tries alone contain an estimated 30 mil­ sures. at the end of 1994. Transport links to lion head of cattle - although the ports of Beira, Maputo and Nacala considerable numbers (some 1.9 mil­ The mining industry needs a great deal are slowly being normalised. lion in Zimbabwe alone) were lost due of power, but the region is fortunate in to reduced grazing and watering facili­ possessing substantial deposits of coal, Angola held elections - pronounced ties resulting from the severe drought. supplemented in recent years by hydro­ free and fair by the United Nations - in Most rural households in fact own power from the Kariba and Cahora 1992. The opposition group UNITA's only a few animals, but large herds Bassa dams on the Zambezi. Work is rejection of the government's victory are kept in Botswana, Namibia, now under way on an ambitious hydro­ has, however, plunged the country Swaziland, Zambia and Zimbabwe, electric scheme in Lesotho, which back into war - if anything even more which all produce beef for export (the should bring great economic benefits to savage than during previous years. region as a whole is a net exporter of that country. Oil, however, has to be Renewed fighting means that the beef and beef products). The substan­ imported by South Africa and all the Benguela railway is still out of action, tial resources devoted to veterinary SADC states except Angola, whose eco­ depriving Zambia of its outlet to the science, cattle fences, vaccination cam­ nomy depends on its offshore oil indus­ Atlantic Ocean, and forcing it to re­ paigns and the eradication of the tsetse try. Zambia's Copperbelt is supplied route some of its trade. fly reflect the importance attached to with oil via a pipeline from Dar-es­ livestock. Salaam. Another pipeline, from Beira, Recent years have seen the withdrawal carries oil to Harare. of South African military involvement Southern Africa also supports large in neighbouring countries, the dis­ numbers of wild animals, including Although the largest contributor to mantling of apartheid and the coun­ more rhinos and elephants than any GDP in South Africa, manufacturing is try's first democratic, non-racial elec­ other part of Africa. Wild animals in limited in the SADC states. Most tions in 1994. As a consequence, their natural surroundings are both exports are still primary or semi-proces­ improved economic and political rela­ beautiful and valuable, since they are sed products, sold to customers in over­ tions between South Africa and the the real attraction of the growing tou- seas industrialised countries. Light SADC countries can be expected.

7 INSTRUMENTS OF EU-SOUTHERN AFRICA CO-OPERATION

Trade guaranteed price. The protocol is of a result of price falls, crop failures or particular benefit to Swaziland, which damage to crops - has also proved of In common with most other develo­ obtains this price for 116 000 tons of assistance in the region. Over the per­ ping countries, the SADC states export sugar annually. Sugar producers in iod 1975-1993, transfers have been chiefly raw materials - unprocessed or Zimbabwe, Malawi and Tanzania also made for export losses on tea, coffee, semi-processed agricultural commodi­ benefit, although these countries' quo­ cotton, groundnuts, copra, wool, ties and minerals - and import manu­ tas are smaller. mohair, sisal and cashew nuts. The factured goods, oil (Angola excepted) scheme has been of particular benefit and foodstuffs. The one exception is A special arrangement for meat exports to producers in Tanzania, Malawi, Zimbabwe, which is partly industriali­ to the EU, known as the Beef Protocol, Mozambique and Lesotho. sed and produces a variety of finished allows traditional ACP beef-exporting products. countries to keep 90% of the tax nor­ South Africa is not a signatory of the mally payable on beef imports into the Lome Convention - and does not the­ Again like other groups of developing Union, for certain quantities: upto refore benefit from the above-mentio­ countries, the SADC region conducts 18 916 tons for Botswana, 13 000 tons ned arrangements. The lifting of most the majority of its trade in both direc­ for Namibia, 9 100 tons for Zimbabwe trade sanctions by the EU in response tions - imports and exports - with and 3 363 tons for Swaziland. Insofar to political reforms will provide, external partners, and the largest of as they fulfil their quotas, these coun­ however, renewed access to the these is the European Union. tries derive substantial extra income Union's 347 million consumers - offer­ Although South Africa, as the nearest from the beef levy rebate. ing considerable export revenue ear­ industrialised country is the biggest ning potential. supplier for the other members of the Under the fisheries agreements which Southern African Customs Union', the it has signed with two coastal SADC Union is the leading source of imports states - Angola and Mozambique - the for Angola, Mozambique, Zambia and Union makes payments to these coun­ Zimbabwe, and its market is the big­ tries for fishing rights in their exclusi­ gest outlet for five SADC countries ­ ve economic zones. In addition, it pro­ Botswana, Malawi, Mozambique, vides funds to finance training Tanzania and Zimbabwe. The EU is activities and scientific and technical also South Africa's principal trading programmes related to fishing and partner. Trade arrangements between fishery resources in their waters. the two regions are therefore of consi­ derable importance. The Stabex scheme - cash transfers to compensate for serious losses sustai­ Trade arrangements ned on agricultural export earnings as

The trade provisions of the Lome Convention allow the vast majority of World and ED trade with the SADC States (in million ECU) Southern African ACP exports to enter the EU duty-free and in unlimited quantities. The Union does not howe­ 1991 1992 J ver require the ACP states to apply the Imports Exports Imports Exports same treatment to its own exports - the 1 principle of non-reciprocity - and so IWorld 8778.2 9549.8 8339.9 .' 9308.2 the SADC countries can charge cus­ toms duties on the EU products they 2524.6 2519.9 2384.1 2776.6' import. A number of them derive sub­ Source: Eurastat stantial revenue from this source.

In addition to these general provisions, special arrangements exist for sugar World and ED trade with South Africa (in million ECD) and beef which are of interest to certain SADC countries. Under the Sugar Protocol attached to the Lome .1991 Convention, the Union agrees to buy a Imports fixed quantity of sugar every year from ACP producers at an attractively high 19126 14042 8378 5815 'Botswana, Lesotho, Namibia, Swaziland. Source: Eurastat

8 up the "structural adjustment facili­ ty"). These funds - which are additio­ nal to normal EDF development aid, and come as grants not loans - finance sectoral or general import pro­ grammes and technical assistance with structural adjustment measures. The recipient countries - of the SADC countries, Lesotho, Malawi, Mozambique, Tanzania, Zambia and Zimbabwe - have a major say in their use. Counterpart funds generated by the sale of the imported goods finance operations in the social sector (e.g. payment of redundancy benefits, retraining, job-creation schemes...). Participating countries may also direct a percentage of their National Indicative Programme funds (see below) towards structural adjustment measures. Sorting ripe coffee berries in the highlands of Zimbabwe. The Stabex scheme provides compensa­ The bulk of the rest of the EDF is avai­ tion for serious losses on export earnings from cof­ Trade development fee and other agricultural commodities. (JR) lable for development projects chosen As well as assisting SADC trade by the ACP countries and approved by the Union. Works, supplies, studies through general and special arrange­ and technical assistance can all be ments described above, the Lome Convention provides funds, on a financed. Each country has a fixed amount to spend on its national pro­ national or regional basis: gramme. In addition, funds are avai­ • to promote individual countries' lable for regional projects benefitting exports, by financing, for example, two or more countries, co-ordinated, participation in trade fairs; in the case of Southern Africa, by SADC. • to develop new products, through technical assistance with market In Southern Africa, EDF program­ research; mable aid - aid for national and regio­ • to encourage trade within the region, nal programmes - amounted to some which is one of the principal aims of 300 MECU under Lome I (1975-80), SADC and of the wider group of 450 MECU under Lome II (1981-85), countries belonging to the 970 MECU under Lome III (1986-1990), Preferential Trade Area for East and and should equal over 1000 MECU for Southern Africa. An example of EU the period 1990-1995, when the Lome support in this field is given in the IV (first financial protocol) pro­ section on regional co-operation. grammes are completed. Some 14% of the EDF is set aside for the stabilisation of export earnings. Financial and technical Stabex transfers are only made if justi­ assistance fied by circumstances, but these cir­ cumstances have arisen quite frequent­ In addition to their trade provisions, ly, and a total of some 193.5 MECU has the Lome Conventions, backed up by already been transferred to the SADC five-year European Development states for the period 1975-1993. Stabex Funds (EDF) and the capital resources funds take the form of grants. of the European Investment Bank (EIB), offer assistance in a variety of' The Sysmin facility, introduced in forms to ACP countries. Lome II for mining operations in difficulty, has proved especially useful Some 12% of the seventh EDF has been for Zambia, where loans totalling set aside to provide special support 83 MECU and a 60 MECU grant have to those countries implementing helped. To support the country's structural adjustment programmes structural adjustment programme, and (1150 MECU from the 7th EDF make its aim to decrease its dependency on

9 the mining sector, the latest Sysmin ED Financial Assistance (EDF + EIB + EC budget) allocation was directed towards gene­ to the SADC States (1975-1993) ral balance of payments support. (in million ECD) Botswana has received 22 MECU for a copper-nickel mine - and due to the recent inclusion of uranium under the Lome I Lome II Lome III·ioome IV TotCil'] list of eligible products, Namibia has 1975·80 . 1981·85 1986':90 i~.!~~._~_.,~ also benefitted. [National Programmes 267.5 371.7 824.6' '.' 905.6 2369:til A small proportion of the EDF is reser­ [Regional Programmes 30.0 70 141.0 121.0 362;01 ved for emergency aid operations in the wake of natural disasters or serious refugee situations. Afflicted by drought - notably in 1992 -, epidemics !~~~-;~~~~~ and armed conflict, the region has had to call on the emergency aid fund on §bex 33.9 35.1 56.4' 68.1 193.5J numerous occasions. [ Sysmin 82.3 21.6 100.0 203.9J While previously between two-thirds and three-quarters of all EDF assistan­ ~mergency / refugee aid' 44.5 33.0 86.5 83.0 247.0 ! ce was in the form of grants, under Lome IV the proportion of grant aid rF:;;Jilii-=--='~"-~: . 81.7. 147.5 ':.~~.~E,:350~=:-~~~~ has risen to 92%. To assist ACP enter­ ~~~~ ~~~~:~~~g, ecology, AIDS, etc~~'O 42.2 4i:2·---·41.5·-·-·156~~ prises and to support the private sec­ ~ tor, risk capital is also provided on -----.J easy terms. Risk capital - over 7% of Pre-Lome aid to Mozambique - 25.0 26.5 51.51 EDF VII - is managed by the European and Zimbabwe I -'---=--":"-==='~-====='-_':"'''-'=-:-'''. Investment Bank. _. '''00 • =""=="''''--,..i TOTAL 580.9 978.6· 1644.1" .' .1821.9 5025:51 [ Projects can also be financed with r~l'tAND' iOTAL ' ~==-='=:--==="'~~,,~===--= 50';S~~J loans from the Bank's own resources, which carry more commercial rates of interest. In practice these are often fur­ ther reduced by interest rate subsidies which aimed to assist the process of from the EDF - to between 3% and 6% peaceful change by supporting non­ under Lome IV. The Bank has so far racial activities. As a response to the lent a total of over 650 MECU to ACP dramatic political reforms in the coun­ countries in the region. try, the Special Programme has been reoriented and funding has dramati­ In addition to EDF and EIB resources, cally increased. Since 1991,340 MECU part of the Union's annual budget is has been channelled to South Africa. set aside for assistance to developing countries, especially in the form of food aid and co-financing of NCO pro­ jects. Over the years hundreds of thousands of tons of cereals and other foods have been shipped to the region, in response to drought, to feed refu­ gees, or to make up structural deficits.

Innumerable projects implemented by non-governmental organisations (NCOs) have received Union support (over 160 projects have been co-finan­ ced to date in Zimbabwe alone).

The table below shows that over the first 18 years of EU-Southern Africa co-operation, the Union has spent or committed in one form or another over 5000 MECU in the SADC region. 130 MECU was directed to South Africa between 1986 and 1991 in the context of the "Special Programme"

10 REGIONAL CO-OPERATION

In their efforts to foster sustainable development, the ACP countries of Southern Africa are faced with a num­ ber of serious obstacles - a narrow industrial base, a shortage of skilled workers, a network of communica­ tions in need of maintenance, a low volume of trade amongst themselves, and a chronic shortage of foreign exchange.

Tackling these problems require human and financial resources beyond the means of individual developing countries. Since 1980 all the ACP countries of the region have formed an economic association - the Southern Africa Development Coordination Conference until 1992 and thereafter the Southern African Development Community (SADC) - to co-ordinate their own efforts and those of their external co-operating partners (see inset). The 1992 treaty provides for the inclusion of a post-apartheid democra­ tic South Africa on the principles of equity, balance and mutual benefit ­ and the establishment of a SADC resi­ dent mission in the country reflects the commitment of the region to contribu­ te to South Africa's democratic pro­ cess.

To date SADC has concentrated on three areas - transport and communi­ cations; food security, agriculture and natural resources; and human resource development.

The European Community, which as a regional body is convinced of the practical benefits of this form of co-operation, has provided regional funds since 1976 (30 MECD under Lome I, 70 MECD under Lome II, 141 MECD under Lome III, and 121 MECD under Lome IV, first finan­ cial protocol), and has supported SADC since its formation. Since 1986 most of the Community's regional assistance to Southern Africa has been programmed with SADC.

11 Southern African regional programmes, by sector (EC commitments, in million ECU)

Lome I Lome II Lome III Lome IV Allocations 30 70 141 121 Transport and Communications: 20 (67%) 23.1 (34%) 91 (65%) 60 (49.5%) Railways 10 10.5 19 Roads 10 10.5 24 45 Ports 48 Airports 2.1 5 Other 10 Food Security, Agriculture 0.8 (3%) 23 (34%) 27 (19%) 18 (15%) and Natural Resources: Food and agriculture 0.3 11 8 Animal disease control 0.8 22.7 16 10 Human Resources Development: 8.8 (30%) 13.8 (20%) 14 (10%) 21 (17.5%) Other areas 7.9 (12%) 9 (6%) 22 (18%) Energy, industry, mines 1.8 5.5 12.5 Technical assistance, studies 3.9 1.5 7.1 Reintegration of qualified 2.2 2 2.4 Africans Total 29.6 67.8 141 121

General arrangement of the Muela Hydropower com­ plex, an important component of the Lesotho Highlands Water Project. The Community's contri­ bution - EeU 44 million, including 10 MECU from regional funds and 20 MECU from the EIB - is financing a major proportion of the civil engineering works. (Photo by courtesy of SOGREAH, <." Consulting Engineer, France)

12 Transport and communications SADC's members, six of which are The Zimbabwe army, which patrolled Access to the sea landlocked, have always given top the Beira Corridor during fighting, priority to the rehabilitation of their was withdrawn in 1993, and large SATCC has commissioned studies on transport systems. One of SADCC's quantities of food aid - imported to and raised funds for the rehabilitation first acts was to set up a special unit, address the 1991/2 drought - were ef­ and improvement of five routes to the the Southern African Transport ficiently transported through the sea - designated "Port Transport Commission (SATCC). The Windhoek Mozambican system. The possibility Systems". These systems, and their Treaty's commitment towards deeper of future closer co-operation with a major components, are: regional integration - with free move­ post-apartheid South Africa is reflec­ ment of goods, people, services and 'ted in a SATCC study - financed by the • Dar-es-Salaam PTS - the port of information - underscores the need for EC with 6.7 MECD from the 7th EDF ­ Dar, the Tazara railway, the Tanzam an efficient network. looking at regional transport and com­ road, and the "Northern Corridor" munications integration. linking Malawi and Tanzania Although war in Angola continues to seriously disrupt transport systems in While further developing infrastructu­ • Nacala PTS - Nacala port and rail­ that country, the improved security re, particular attention is now being way situation in Mozambique has meant a paid to operational co-ordination and marked improvement in the opera­ efficiency improvement issues. • Beira PTS - Beira port, railway and tions and development of its network. road

ro-+-.....-..;;;==:::' )Nacala

Southern Africa's Railway and Road Network

Railways _ Major roads -

13 Tanzania (15 MECD from Lome 11 and Trains can now travel at 60 km/h Lome III regional funds and 4 MECD down the track, and transit time from from Malawi's national allocation). Maputo to Chicualacuala has been This road is an essential link in the reduced to only 15 hours. "Northern Corridor" designed to connect Malawi with the Tanzam road 5. Lobito: This route used to carry up and Tazara railway at Mbeya. 5.6 to 45% of the Copperbelt's exports. MECU from Lome III funds have Resumption of war has meant the reconstructed and widened the road continued closure of the line and dis­ from Ibanda to Uyole, on the ruption of rehabilitation efforts Tanzania-Zambia road close to Mbeya. (2.4 MECD of 6th EDF regional funds have been allocated to provision of 2. Nacala: technical assistance). 25 MECU of Community funds (from Mozambique's Lome III NIP) have purchased materials and equipment Other assistance for the railway. To date more than half the Nacala-Malawi line has alrea­ In addition to its contributions to the dy been completed - and work is "Port Transport Systems", the Com­ expected to speed up as a result of munity has financed several other peace in Mozambique. When fully transport projects of regional impor­ operational, the Nacala line is expected tance: the extension of the Mwanza­ to serve as Malawi's main outlet to the Musoma road across the Kenyan bor­ sea. der with Lome IV regional and Tanzanian NIP funds; the hard-surfa­ Possible support for the rehabilitation cing of the 300 km Nata-Kazungula of the Nacala-Nampula road is being (BOTZAM) road - which gives discussed. Botswana a direct, permanent link with Zambia; the construction of a 3. Beira: new control tower, operations buil­ The nearest port to Harare and The Community and its Member States are major ding and remote transmitter at contributors to the rehabilitation of the port of Blantyre, Beira is the natural outlet for Swaziland's Matsapha international Beira, Mozambique. (WB) northern Zimbabwe and southern airport. 6th EDF regional funds provi­ Malawi. A massive rehabilitation pro­ ded 10 MECD towards the rehabilita­ gramme means that the port is tion of major roads in the south-wes­ • Maputo PTS - Maputo port and now handling close to pre-indepen­ tern region of Angola, and 2.2 MECU Limpopo railway dence levels of freight - during 1992 it for the rehabilitation of Mpulungu dealt with over a fifth of the food aid harbour. • Lobito PTS - Lobito port and sent to Southern Africa. Benguela railway Projects under consideration include The Community and its Member possible funding for the upgrading of The European Community - and, bila­ States, in particular the Netherlands, the final 283 km of the Trans-Caprivi terally, most of its Member States ­ Italy and Denmark, have made major Highway. have given, are providing or have financial contributions. The EDF pledged substantial support for these contribution (45 MECD from Lome III five routes. regional funds and 11 MECU from Mozambique's Lome III national allo­ 1. Tazara/Dar-es-Salaam: cation) has financed the rehabilitation The Community has contributed of quays 2, 3, 4 and 5 in the port of 13 MECD towards the improvement of Beira and their freight handling areas. the Tazara railway - which has bought These will become the main terminal heavy equipment, including two cru­ for modern container, roll-on/roll-off shers, for quarries producing ballast and multi-purpose vessels. In addi­ for the track, workshop equipment tion, the EDF is financing repairs to the and wheel lathes - and financed a team Beira-Inchope road with a 5.7 MECU to supervise track maintenance for grant (further funding of 20 MECU is 5 years. currently under consideration).

Further Community support has been 4. Maputo: provided towards the supervision and 10 MECD from Lome III regional construction of 51 km of road - which funds and 5 MECD from includes 3 new bridges - from Mozambique's national allocation Karonga, at the northern end of Lake have contributed towards the rehabili­ Malawi, to Ibanda 5 km inside tation of the 533 km Limpopo line.

14 Food security, agriculture' and natural resources Although the SADC countries are thin­ drought - the exceptionally severe between 10% and 15% of all food aid ly populated by European standards, 1991/1992 drought resulted in a cereal to the SADC region. their population, currently estimated deficit of well over 7 million tonnes. at over 85 million, is rising fast - and War - only recently brought to an end Furthermore, the Community is fun­ will be well over 100 million by the in Mozambique and still being waged ding a programme of regional food year 2000 at present rates of increase, in Angola - further disrupts farming security training with 5 MECU from For various reasons, many of them do and results in thousands of refugees the 7th EDF regional programme ­ not produce enough food to cover who depend uponfood aid. which covers training in food manage­ even present needs, and usually need' ment, household level food security to import basic cereals from outside For the 1993/1994 marketing year and grain marketing. the region, alone, the SADC countries, to cover a shortfall of some 1.5 million tonnes of Agricultural research One of SADC's top priorities is there­ maize, needed to import over 800 000 fore to achieve regional food security, tonnes of wheat, 190000 tonnes of rice The food reserve debate has clarified The EC is assisting the drive for food and 120 000 tonnes of sorghum/millet one issue - the fundamental importan­ security in several ways: financial and - merely in order to meet staple food ce of raising food production, especial­ technical assistance is supporting needs. For 1991/1992, an especially ly in view of the region's rising popu­ structural adjustment programmes ­ large donor-assisted cereal import pro­ lation. SADC has a specialised unit to an important aspect of which is rural gramme was implemented - totalling co-ordinate regional agricultural reform, which aims to increase pro­ some 5.6 million tonnes of food, research - the Southern African Centre duction by providing farmers with 2.8 million of which were commercial for Cooperation in Agricultural more favourable economic incentives; imports through the world cereals Research (SACCAR), based at the through national agricultural projects; market, and the rest as food aid. In Agricultural College, north of through food aid; and through support recent years the Community has sup­ Gaborone, Botswana. The EC is sup­ for regional agricultural research pro­ plied, on average, 25% of food aid to porting two projects coordinated by grammes, the region. SACCAR: Southern Africa also has a large cattle In 1992 and 1993 the Community has • Land and water management population - some 30 million head of been buying white maize from With a grant of 2.5 MECU the cattle according to a SADC estimate ­ Mozambique for SADC deficit coun­ Community has financed the construc­ and animal husbandry is of great tries as triangular food aid - and it is tion and equipment of a soil physics importance throughout the region, hoped that the return to surplus pro­ laboratory, with associated lecture This is an area which has received sub­ duction of maize in Zimbabwe will rooms and offices, a training officer for stantial Community funding, particu­ allow resumption of maize purchases 3 years, and courses for trainee soil larly the animal disease control aspect for the region in the near future. scientists from other SADC countries. Triangular operations now represent The training officer will be passing on The EC is also supporting the SADC Unit on Fisheries, Forestry and Main areas of food insecurity Wildlife in the Malawi administration, (climatic and/or war-related) 7th EDF funds are financing a large wildlife management training pro­ gramme (see page 17), A number of other projects in these sectors are being considered for possible support

Food security

Food production is unevenly distribu­ ted in Southern Africa, While some areas do well in normal years, notably Zambia, parts of Zimbabwe, and to a lesser extent Malawi, others are fre­ quently short of food, Botswana and Lesotho, for example, regularly produ­ ce less than half their grain require­ ments. Marketing, distribution and storage problems - and sometimes lack of money - mean that food shortage areas cannot always have access to existing surpluses in the region. The situation is made worse by frequent (incorporating information supplied by FAD)

15 to a group of about 80 SADC nationals the research methods and results of a team of British Government-funded scientists who have been conducting research into such questions as the retention of surface water in low rain­ fall areas. Most of Botswana and parts of Angola, Mozambique, Zambia and Zimbabwe receive less than 600 mm of rain a year, while containing large numbers of traditional farming fami­ lies. There is therefore a clear need to pass on valuable research results throughout the region.

• Grain legume improvement Agricultural research in Southern Africa, long preoccupied with cash crops, has recently given more attention to traditional food crops. Some 2 mil­ lion hectares are planted with grain legumes - beans, groundnuts, cowpeas­ Over 85 MECU have been devoted to animal disease control from EC regional funds. (WB) half a million of these with cowpeas. Productivity is low (300-400 kg/ha) and demand outstrips supply. SACCAR ders, and it is logical to organise their 70% of all cattle in Tanzania funded and the International Institute for control on a regional basis. with 2.9 MECU from the 5th EDF and Tropical Agriculture have set up a cow­ 1.3 MECU from Tanzania's NIP. pea research station at Umbeluzi, 20 km The Community financed a major tset­ north of Maputo, with test sites in se eradication programme from Lome At the time of writing, work was just Mozambique, Botswana and Tanzania. II regional funds (8 MECU) - involving commencing on a manpower needs The EC has backed the development of aerial spraying, traps and baits - in the assessment study, financed with some high-yield varieties and improved culti­ Zambezi Valley area of Zambia and 300 000 ECU of 7th EDF regional vation techniques, as well as financing a Zimbabwe, and in Malawi and funds. Evaluation will be made of cur­ market study, with some 2 MECU from Mozambique. Regional research rent and future supply and demand of EDF regional funds. conducted under this project has deve­ skilled manpower in the livestock and loped new tsetse control technology animal disease control sector, and the 4 MECU from 7th EDF regional funds which is in use throughout the conti­ current provision of tertiary level and have been allocated towards the deve­ nent - the South African government in-service training of professional staff. lopment of a regional research network has recently requested technical help to 'to reinforce national research capacities control a tsetse outbreak in the Natal The Community has to date contribu­ on maize and wheat production. region. A second phase of the project ted over 85 MECU to animal disease is receiving major funding from the control in Southern Africa. Community; bait techniques will be • Animal disease control researched and their environmental Although the Community has contri­ impact assessed, work will continue on buted 1 MECU from sixth EDF regio­ a system to improve diagnosis of nal funds to the Botswana-based ele­ Trypanosomiasis, and a postgraduate ment of a research and training EC support for animal disease training programme will be launched 1 programme, co-ordinated by the control in Southern Africa in collaboration with universities. International Livestock Centre for (in million ECU)* Africa, on methods of improving the performance of draught animals and 1982-88 saw an important foot and Botswana, Vaccine:Instihite . 5.86 of raising sheep and goats, its major mouth vaccination campaign mainly contribution to livestock production in the Botswana-Zimbabwe-Zambia Vaccine prod~ction~it;zambia 3.00 has taken the form of substantial sup­ border area with 12 MECU from Lome Veterinary.F(lqllty,·I1a~a.re' 12.96 port for the control of three killer II. A second phase will be funded ­ Footand~outh. dis~aS~contt:ol diseases: foot and mouth, rinderpest aiming to control FMD in member 23.80 and trypanosomiasis. states, study the disease in wildlife Ril1derpestcol1tt91,:"';};';;}::'" .4·20 and cattle, and train technical field The first two diseases are treated by vac­ staff. The first stage will cover Angola, l=:::~f~~:'~OI ~:: cination, the third by eradication of the Malawi, Namibia, Zambia and carrier, the tsetse fly. Although veterina­ Zimbabwe 00 MECU, 7th EDF). ~ . --: --~771 ry services are organised nationally, ani­ During the 1980s a major vaccination mal diseases do not respect national bor- campaign against rinderpest treated ,Amounts include regional and national funds.

16 Human Resource Development In common with most other develo­ Management and other ping countries, the Southern African specialist training programmes States suffer from a shortage of quali­ fied indigenous professional and Major EC support is addressing the managerial staff in the public and pri­ need for better wildlife management vate sectors, of skilled workers, of tea­ training in the SADC region. 8 MECU chers and of teaching equipment. from 7th EDF will provide staff and extra facilities to the College of African To a great extent the problem is being Wildlife Management at Mweka, tackled at a national level, but there Tanzania, and to the Department of are some activities which call for regio­ SADC attaches great importance to education, and Biological Sciences at the University of the EC has consistently supported its efforts in this nal action. SADC has recently finali­ Zimbabwe - to expand their already area. This school for normal and disabled children sed its long term strategy to address existing courses, and adapt them to the in Lesotho was extended with EC funding. (DV) regional needs for the period 1993­ needs of wildlife management agen­ 2003. It recognises that the combina­ cies. The project will provide for and Swaziland - while phase II will be tion of severe drought - requiring 80 places on the course at Mweka, and expanded to cover all SADC states. considerable government outlay to for 10 MSc places in Zimbabwe - and pay for urgent food supplies - and will also encourage academic links bet­ SADC's own Regional Training widespread implementation of econo­ ween these regional institutions and Council has been partly staffed since its mic adjustment programmes, which appropriate European training and creation by Community-funded techni­ usually demand budgetary control research organisations. and reduction in public expenditure, cal assistants. The Council was recently has left limited funds available for A number of SADC manpower deve­ strengthened by the appointment, educational spending. These limited lopment projects in the transport and again from EDF regional funds, of a finances must be carefully allocated. communications sector are receiving Transport Adviser and an Agricultural EC finance: as part of a larger road adviser. The strategy identifies three program­ traffic and transport training scheme me sections - research programmes, developed by SATCC, the EC is fun­ Other education programmes, and manage­ ding training for senior managers in ment training programmes. Communi­ the Road Traffic and Transport sector The Community is co-funding with 6 ty aid has been principally directed with 2 MECU from 7th EDF regional MECU from Lome II, III and IV regional towards the latter two. funds; 1 MECU will provide manage­ programmes the return of qualified ment training in the Mozambican'and African nationals - doctors, accountants, Angolan maritime and port sectors; engineers - from industrialised countries Education programmes the 6th EDF financed an assessment of to help fill suitable vacant jobs in Africa. manpower needs for the Beira Of the SADC countries, Zimbabwe and Projects funded from 7th EDF regional Corridor, and supported Mozambique Zambia are benefiting from the scheme. funds include: finance for up to Railways' Training School at 36 students from Angola and Inhambane (4 MECU). Mozambique to study for the Intern~tional Baccalaureate diploma at 2.5 MECU from the 6th and 7th EDFs Waterford Kamhlaba College in are helping to provide agricultural Swaziland (1:7 MECU), thereby pre­ management training to 360 middle paring them for tertiary level educa­ managers at the Agricultural tion in scientific and technical subjects; Management Centre at Mananga in and support (2 MECU) for a Swaziland. All SADC countries have Portuguese language training initiative sent students on courses. The construc­ - four training centres have been desi­ tion of the Veterinary Faculty of the gnated for the pilot phase, one each in University of Zimbabwe - open to stu­ Namibia, Swaziland, Zambia and dents from the whole SADC region ­ Zimbabwe. was financed with 13 MECU from the Community. A 6th EDF regional grant financed a workshop for science and maths tea­ As intra-regional trade flows increase, chers from secondary schools in all larger numbers of skilled customs offi­ SADC countries to update their know­ cers will be required. 1.9 MECU from ledge of these subjects, while earlier the 7th EDF is funding a regional trai­ EC funding provided several new ning programme to improve the pro­ buildings for the University of fessional expertise and managerial Botswana and Swaziland. skills of customs officers in the mem­ ber states. Phase I of the project will involve Botswana, Lesotho, Namibia

17 Other areas of regional co-operation Energy, industry, mines Previous EC financing aided the reha­ East and South African Mineral bilitation of the 1 700 km Tazama oil Resources Development Centre On the whole, EC assistance to these pipeline linking the port of Dar es (ESAMRDC). important sectors has been provided Salaam with the dola refinery in on a national rather than on a regional Zambia's copperbelt. The European basis. Investment Bank provided a loan of Trade development 13 MECD to cover one-third of total In the energy sector, however, there costs. The works include replacing cor­ Only a very small percentage of SADC have been three major projects within roded pipes, protecting the pipeline countries' trade is intra-regional - less the framework of EC-SADC co-opera­ from external corrosion, refurbishing than 5% of total imports and exports, tion. all valves and replacing a number of compared to a figure of close to 50% booster pumps and station generators. for the European Community - and 7th EDF regional funds are supporting The project will make Zambia's oil one of the organisation's objectives is the rehabilitation of the Cahora-Bassa supply and distribution system more to increase trade between its member dam (20 MECD in addition to efficient and reliable, and the elimina­ states. To achieve this, SADC itself 40 MECD as a loan from the EIB), and tion of leaks will reduce pollution in encourages bilateral trade agreements are financing the construction of the Tanzania. and emphasises the need to rationalise Muela Hydropower Plant (10 MECD)­ production by avoiding unprofitable an integral component of the Lesotho In the mining sector, Lome III regional duplication. Highlands Water Project, currently the funds have financed a central isotope largest energy project in the SADC geochronology laboratory; Lome IV At the same time, all SADC states region (for details see Lesotho pages). funds are contributing towards the except Botswana are members of the The EIB and the EC are considering costs of a forthcoming mining invest­ Preferential Trade Area for East and funding the rehabilitation of the trans­ ment forum, which is aiming to encou­ Southern Africa (PTA), a wider grou­ mission lines from the Cahora Bassa rage European investment in the ping which seeks to promote regional dam to South Africa, at a cost of some SADC mineral sector; and 2.5 MECD trade and economic integration by 50MECD. from the 7th EDF is supporting the liberalisation and other measures'.

Preferential trade area for East and Southern Africa (PTA)

Established: 1981

SUDAN Institutions: • Secretariat, Lusaka • Clearing House, Harare • Trade and Development Bank, Bujumbura

Members: RWANDA­ SEYCHELLES Angola Mozambique BURUNDI­ Burundi Namibia TANZANIA Comoros Rwanda COMOROS Djibouti Seychelles Ethiopia Somalia Eritrea Swaziland Kenya Sudan Lesotho Tanzania Madagascar Uganda Malawi Zambia Mauritius Zimbabwe

18 Established by treaty in 1981, the PTA is gradually reducing tariffs and elimi­ nating non-tariff barriers to trade. It has already taken a number of practi­ cal steps to encourage trade within the region: it has set up a clearing house for payments in local currencies rather than in foreign exchange; introduced its own traveller's cheques, denomina­ ted in PTA units of account, again to save foreign exchange; and launched a third-party vehicle insurance scheme. The use of these facilities is gradually becoming more widespread.

In addition, the PTA has undertaken more traditional trade promotion mea­ sures, for which it has obtained techni­ cal and financial assistance from the Community (the EDF includes an allo­ cation for regional trade promotion): • design and construction of national stands at the PTA Trade Fair which is held every two years; • funding for regional training semi­ nars.

A computerised system (ASYCUDA) for processing PTA customs declara­ tions, controlling the clearance of goods, and producing trade and fiscal data has been developed with UNC­ TAD - and the Community's Statistical Office is helping with technical work. A planned future project is the Advance Cargo Information System - a computerised system for tracking freight.

In 1993 most of the 22 PTA member states signed the Treaty establishing the Common Market for Eastern and Southern Africa (COMESA). As the successor to the PTA, it is envisaged that this common market will be esta­ blished following the creation of a full free trade area within the region by the year 2000.

, The PTA treatv allows for simultaneous member­ ship of the So~thern African Customs Union and the PTA. Lesotho, Namibia and Swaziland belong to both groups.

19 CO-OPERATION WITH ACP COUNTRIES ANGOLA Background EC-Angola co-operation has been Health severely limited by the conditions in The largest of the SADC states, Angola the country. The Community played The UN has estimated that in 1990 a covers an area almost half the size of an extremely active role in support of mere 24% of the population had access the entire European Community. the elections - with 5 MECU under to health services. 15 MECU from the Much of the land is savannah or desert their "Community Platform" program­ 7th EDF were granted in the form of a except for a narrow coastal strip and me towards election costs, but since post-emergency health project to the densely forested valleys in the north the renewed outbreak of fighting, Ministry of Health to support their and north-east. attention has been directed again efforts to devise an effective health towards humanitarian aid and rehabi­ policy. Further funds are supplying Angola's wealth of natural resources litation. Development projects are technical assistance and equipment to gives it the potential to be one of only ongoing in the 30% of Angola blood transfusion centres to help com­ Africa's most prosperous countries. which is controlled by the government bat the already rapid spread of the Rich mineral resources include offsho­ - and even here most new projects HIV virus. re oil fields (oil currently accounts for other than those in the health and edu­ over 90% of export earnings), dia­ cation sectors are "on standby". Of the Insecurity in rural areas has resulted in monds in the north-east and iron and total of 115 MECU allocated under the mass migration to Luanda and other manganese in the south. Abundant 7th EDF only 22% had been committed towns - with 70% of urban dwellers arable land and several different cli­ by December 1993. living in the musseques, the unplanned matic zones allow the cultivation of a squatter settlements on the fringes of very wide range of crops: maize and Humanitarian aid the city. Health, water and sanitation wheat are the main cereals, coffee and services have all but broken down, sugar the principal cash crops. The Angola and specialised agencies like and disease is rife - cholera has recent­ waters off Angola's southern coast the Red Cross and UNHCR have sadly ly struck the cities. contain some of the richest fishing had to call on the emergency aid fund areas in Africa - stocked with quanti­ on numerous occasions: for war-dis­ 22.4 MECU from the Community fun­ ties of pelagic fish, notably horse mac­ placed Angolans, for cholera victims, ded a total rehabilitation of the buil­ kerel and sardine, and tuna and shell­ and even for airbridges to remote or ding and installations of the Boavida fish. Livestock resources are insecure areas. Although self sufficient hospital in Luanda, and provided considerable, particularly in the arid in most key food crops until 1975, the medical equipment and training of south which is free from tsetse fly. combination of war and severe medical and para-medical staff. Food processing - of fish, cereals, palm drought has dangerously lowered the 13 MECU is improving Luanda's oil and meat - and the manufacture of food supply situation: emergency food sewerage and waste disposal system. jute, textiles and paper from local raw aid (delivered free of charge to final materials are the principal non-oil destination) has been necessary, while industries. over 380 000 tons of cereals have been shipped to Angola as normal food aid Apart from the oil industry, the econo­ (part of which was sold at local prices my - indeed all aspects of life - have producing counterpart funds). been devastated by the vicious civil war which has gripped Angola since the sixties: hundreds of thousands of Angolans have been killed in fighting, and many more have died from mal­ nutrition and disease; an estimated 20% of the population have been uprooted, and are either refugees within their country or in neighbou­ PROFILE ring Zaire or Zambia; agriculture is in disarray, jeopardising food supply; Date ofindependence: 11.11.1975 non-oil industry is running at less than Capital: Luanda 10% of its capacity; and there is vir­ Area: 1246 700 km' tually no transport or trade. There Population: 10 900 000 (1993, est.) was a brief respite from fighting for Languages: Portuguese (official language), the year and a half between the May Umbundu, Kimbundu, 1991 peace accords and Angola's first Kikongo multi-party elections (declared free Main exports: Crude oil, diamonds, and fair by the UN) in September 1992, refined petroleum, gas but due to UNITA's rejection of the GDP/head: US$ 750 (est. 1992) government's election victory, war has Currency: New kwanza (NKz) resumed. 1ECD =130 000 New kwanza (parallel market rate, March 1994)

20 Revival of production

Although oil revenues are substantial, massive expenditure on food imports and military equipment have led to an acute shortage of foreign exchange. Industry and agriculture, starved of essential imports obtainable only with hard currency, have suffered as a result. Hence the decision to spend 35% of Lome III funds on imports of seeds, tools, machinery, vehicles, pumps and other basics to revive pro­ duction in the farming, manufacturing and fisheries sectors. A percentage of these imports was channelled direct to Fish is an important source of food in the sou­ the private sector to promote the libe­ thern provinces of Namibe and Huila. ralisation of the economy. A further The Community has supported the fisheries 2 MECU under Lome IV is providing industry since the early 1980s. (WB) small enterprises and craftsmen with 5000 tool kits.

Fisheries

The fisheries industry is a major source of income and employment in the sou­ thern ports of Namibe and Tombwa, and an important source of food for the hinterland (the provinces of Namibe and Huila). Community aid has reha­ bilitated three refrigeration plants in the ports, and the Tombwa shipyard; and installed a new production line in a canning factory in Tombwa. Refrigerated containers, trucks and cold stores are being supplied for the transport of frozen fish from Namibe to Lubango, 180 km inland. The indus­ try received some of the imports (e.g. tin, spare parts) purchased under the Lome III programme.

The fishing industry also receives sup­ port through the EC-Angola fisheries Canning factory in the fishing port of Namibe, rehabilitated with EC funds. agreement, first signed in 1987. For the period 1992-1994 covered by the Community aid (allocations in million ECU) current protocol, the EC pays Angola financial compensation - some 18.5 MECU - for fishing rights in Angolan waters.

Other assistance

The EIB has allocated 10 MECU of risk capital resources to Angola for the per­ iod 1991-1995.

In the area of education, some 5 MECU under Lome III and IV is funding tech­ nical assistance, rehabilitation of facili­ ties and provision of equipment to technical institutes and professional training centres. 'allocations until end-1993.

21 BOTSWANA Background livestock owners in a number of rural Tsetse and Trypanomiasis and Foot areas. Lome III and IV focus on the and Mouth programmes; while a loan A vast, sparsely-populated area conservation and development of of 6 MECU funded the construction of (1.4 million people for an area the size natural resources. Substantial a new slaughterhouse in Francistown. of France and Belgium put together), European Investment Bank loans have Botswana is noted for its large cattle assisted the industrial and business Conservation and herds, abundant wildlife and, more sectors. The livestock industry has development of natural recently, its mineral wealth. Cattle, benefitted from the special arrange­ resources which outnumber humans by about ments for beef exports to the EC, as 2 to 1, and sheep and goats, of which well as receiving a number of grants and loans from the EDF and the EIB. The Botswanan authorities and the there are an estimated 3 million, repre­ Commission agreed to concentrate sent the principal or sole source of 90% of their Lome III and IV resources income and an important source of Rural development and on the development and conservation food for the vast majority of the rural livestock of natural resources, notably in the population. Wild animals - elephant, northern part of the country, contai­ buffalo, a variety of antelopes, croco­ Funding from earlier Lome Conven­ ning both the Okavango Delta and the diles, flamingos and many other birds tions invested some 12 MECU in the Chobe National Park, under Lome III, - are the star attractions of a growing rural economy - with the provision of and in the central and southern areas tourist industry. Minerals, especially 20 administration centres in villages under Lome IV. diamonds (over 79% of total exports in to bring government services to the recent years), have brought the coun­ countryside, and the construction of a Wildlife has to be protected, not from try financial stability. Rural Training Centre in Francistown. hunters (a strict system of permits ope­ A first microprojects programme ­ rates well) or poachers (not a major While its diamond earnings, combined funded from Lome IV NIP - will finan­ problem), but from drought and exces­ with sound management, have ce rural communities in their efforts to sive competition for grazing land from enabled Botswana to make rapid eco­ improve their own conditions. cattle. This means, for example, ensu­ nomic progress - it has the fastest ring that drinking water points exist growth rate, highest average level of Small-scale sheep, goat and cattle far­ for wild animals (which may necessita­ income and strongest currency of the mers were targetted by two projects te expenditure on drilling and pum­ SADC region - the country is nonethe­ under Lome I and II which successful­ ping) as well as for cattle, and that less confronted with a number of inhe­ ly managed to increase the quality and cattle owners avoid overstocking and rent problems. The name of the cur­ quantity of their herds by improving overgrazing. rency - pula - means "rain", the animal health and breeding methods. scarcest and most precious commodi­ Lome III gave 2.4 MECU towards the Well aware of the possible conflict of ty in a drought-prone country. upgrading of facilities to market this interests - exemplified at Maun, which Something like half a million cattle extra output. houses both a wildlife training centre and thousands of wild animals were (constructed with EC funds) and a lost in the prolonged drought of the The issue of animal health has been slaughterhouse - the government, 1980s. Agriculture, always difficult in tackled more generally with which has set aside 17% of Botswana's a dry climate, is further restricted by 5.75 MECU for the Botswana Vaccine territory for wildlife in the form of soil conditions - only about 6% of the Institute (the BVI now produces foot national parks and game reserves, and land is arable - and usually produces and mouth and rinderpest vaccines for sought the advice of the United less than a fifth of national food requi­ the whole SADC area), and regional Nations Environment Programme, has rements. Despite the country's healthy macroeconomic situation, rural pover­ ty is widespread and deep-rooted. Many rural households do not own cattle and have to rely on sheep, goats and poultry for a living. Foot-and­ mouth disease is a permanent threat, necessitating hundreds of miles of fences and regular vaccination campai­ gns to protect the meat export indus­ try. Large cattle herds can damage the PROFILE environment and wildlife, and careful Kalahari legislation, money and trained person­ Date of independenc . 30.9.1966 nel are needed to reconcile the inter­ Capital: aborone ests of the livestock and tourist indus­ Area: 82 000 km' Desert tries. Population: 400 000 (1993) Language: tswana, English Main exports: D monds, copper-nickel These are the main problems which m lte, meat have been tackled with the resources GDP/head: US 2413 (1992) of the European Development Fund. Currency: Pul A sizeable share of Lome I and II IEC =3Pula resources were used to support the (Apri 994) poorer population, particularly small

22 The government has set aside 17% of Botswana's territory for wildlife in the form of national parks and game reserves. (DWS) set up a special unit to develop a Industry Francistown Abattoir, and the national conservation strategy. Botswana Development Corporation. The Community has supported the The Community has provided techni­ industrial and business sectors chiefly The burden of interest rate payments cal assistance with the preparation of through the European Investment on these loans has been lightened by the strategy, and the investments Bank, which has lent substantial the provision of subsidies totalling being made under the Lome III and IV amounts from its own resources: almost 10 MECD. programmes will undoubtedly help the government reconcile ecological MECD Increased demand for electricity from and economic interests. Current sup­ Lome I the mining sector necessitated the port includes: conservation of the Extension of Selebi-Phikwe Power Station 4 investment in the power stations. The Kalahari ecosystem (supply of equip­ Bovine Vaccine 2.5 Selebi-Phikwe station provides electri­ ment to the Department of Wildlife city to a copper and nickel mine, which and National Parks, support for the Lome II is being rehabilitated with a Sysmin DWNP's Water for Wildlife Construction of a Coal-Fired Power loan amounting to 21.65 MECD. Programme, technical assistance in the Station at Morupule 25 Geological surveys have been made form of a wildlife ecologist for the Lome II, III & IV from earlier EDF funds of Eastern and Central Kalahari Game Reserve ­ Botswana Development Corp'n for on-lending South-West Botswana, and from Lome 2 MECD, Lome III); two large integra­ IV of the Ghanzi-Chobe Fold Belt and to small & medium-sized businesses 13.5 ted programmes taking a comprehen­ Chinamba Hills - to facilitate and sive approach to development of wild­ Lome III encourage mineral prospection. life in northern Botswana (6.8 MECD, Construction of Francistown Abattoir 4 Lome III) and in central and southern Gaborone Water Supply 10 Trade and tourism Botswana (6.4 MECD, Lome IV); finan­ Gaborone International Hotel 3 cing for the government's forestry Lome IV The livestock industry benefits from policy (3 MECD, Lome IV); and the the Lome IV Beef Protocol: import numerous education initiatives men­ Botswana Power Corporation 7 duty is reduced by 90% for a yearly tioned below in the training section. Lobatse Water Supply 7.4 quota of 18 916 tonnes exported to the in addition to risk capital loans total­ EC market. Exported meat must, ling 8.25 MECD to the Botswana however, conform to the EC's strict Power Corporation, Bovine Vaccine, guidelines which forbid any hormone

23

LESOTHO _ Background Structural adjustment and facilities in the rural areas in support democracy support of the government's rural develop­ The mountain home of the Basotho ment policy. The facilities improved people, Lesotho is almost exactly the Respect for democratic principles has or provided under these programmes size of Belgium and is entirely surroun­ become a cornerstone in the co-opera­ include schools, village water schemes, ded by the Republic of South Africa. tion agreements of the EC. The rural clinics, post offices and foot­ Altitudes range from 1 500 metres in Community has therefore actively bridges. A first microprojects pro­ the West, where the majority of the supported Lesotho's return to demo­ gramme funded with 1 MECU from population and most of the arable land cratic rule after 23 years of single party the 7th EDF (to be followed in 1994 by are to be found, to 3 482 metres in the and military rule, with 280000 ECU a second programme of 2 MECU) is East, the highest point of the from its human rights and democrati­ financing operations in water supply Drakensberg range and the eastern sation budget line towards various and educational facilities. Finally, border with South Africa. The Senqu costs related to the elections, and the various operations in the field of edu­ (Orange) River and the Caledon River, purchase of 11 vehicles for electoral cation and rural development have which forms the north-west frontier, officers from food aid counterpart been funded on a 50% basis by the have their source in the country's funds. Community with various European mountains. NGOs. The adoption by the government of an Wheat, sorghum and maize - the staple IMF-sponsored Structural Adjustment Natural resources foods - and fruit and vegetables are Programme is also being supported: (water and energy) grown on the lower arable lands, which 8.5 MECU from the Lome IV represent a mere 9% of the total area. Structural Adjustment Facility is finan­ Water is Lesotho's only hitherto unex­ The higher lands are suitable for sheep cing a General Import Programme. ploited resource. South Africa's need and cattle farming. Wool and mohair Counterpart funds will be directed for more water for her populated are the main traditional exports. A towards social sector programmes to industrial heartland to the north, and small industrial base, traditionally limi­ help soften the blow of cutbacks in Lesotho's need for a secure source of ted by the size of the domestic market government spending. Notable pro­ revenue and for control over its own and competition with South Africa, has jects include a contribution to a prima­ energy supply, have led the two coun­ expanded markedly since the 1980s ry schools construction programme, tries to embark on the Lesotho with the arrival of companies produ­ equipment and maintenance for the Highlands Water Project (LHWP). cing for export. Nonetheless, imports Queen Elizabeth II Hospital in Maseru are some 10 times higher than exports. (also supported with 5.1 MECU from A portion of the southwards-flowing Remittances from the 120 000 Basotho Lome I and III NIPs), and a water waters of the mountain tributaries of (about 40% of the active male popula­ pumping system for the capital. A the Senqu (Orange) River will be tion) working in South Africa - mainly second structural adjustment pro­ caught in a large reservoir by the Katse in the gold and coal mines - account for gramme involving 8 MECU is under Dam (to be completed by 1996) high 50% of the country's GNP. SACU preparation for 1994/5. up in the Maluti Mountains. From this receipts provide more than half the reservoir, water will be transferred by government's revenues (Lesotho is a This social sector spending supple­ gravity through tunnels northwards to member of the Southern African ments more traditional funding from a tributary of the Vaal river, the princi­ Customs Union with Botswana, Lome resources and food aid counter­ pal, although inadequate, source of Namibia, Swaziland and South Africa). part funds to improve, and in some water for South Africa's largest centre cases build, a considerable number of of population and industry around Most foreign trade is conducted with South Africa. The Republic takes about half of Lesotho's exports and supplies 95% of its imports, including all the country's electricity and a lot of its food. The Maloti is pegged at par to the South African Rand, and the international value of both currencies rises and falls in tandem. Any decline in the South African economy adverse­ ly affects Lesotho. PROFILE The government aims to lessen its eco­ nomic dependence on its powerful Date of independence: 4.10.1966 neighbour by harnessing the vast Capital: Maseru hydro-electric potential of its moun­ Area: 30 355 krn' tain rivers; to reduce food imports by Population: 1930 000 (1992) developing its own agriculture; and to Language: Sesotho, English raise the living standards of Lesotho's Main exports: Wool, mohair, textiles GNP/head: US$ 580 (1991) largely rural population. The bulk of Currency: Maloti the Community's aid has been used to 1ECU =3.99 Maloti support these objectives. (April 1994)

25 Rural development

The higher rangelands of Lesotho sup­ port a large population of sheep and cattle, outnumbering humans by about 3 to 1. Overstocking and inadequate land tenure traditions have caused land degradation and soil erosion, reducing the already limited possibili­ ties for crop production.

The EC-funded Mphaki development project (2.2 MECU from Lome I and 3.7 MECU from Lome III national funds) has tried to reverse the trend of overstocking and land degradation in a typical high-altitude area of 150 000 ha in south-east Lesotho. The project, completed for the main part in 1992, has provided better livestock infra­ structure, veterinary services and mar­ keting installations, including feeder roads, to village communities in the area which are willing to introduce basic rules on land use, livestock Tunnel-boring machine completing the intake side of the delivery tunnel under the future Muela reservoir. control and grazing management. (LHWP) The second major issue in rural deve­ Johannesburg. A hydroelectric power Authority; office equipment and lopment, the production of high value station will be built at Muela in nor­ vehicles for LHDA; and studies on cash crops, is being tackled by the thern Lesotho on the water delivery Lesotho Electricity Corporation's futu­ Asparagus Expansion Programme route, to meet the country's present re needs (9.5 MECU, Lome III N.I.P) (4.75 MECU, Lome III) on the arable and future needs and, at a later stage, lands near the capital, Maseru. The to generate electricity required to • a manpower development program­ aim is to increase the area used by pump water from subsidiary reser­ me, to reduce Lesotho's dependence smallholders to grow asparagus from voirs into the main Katse Lake. on expatriate personnel for technical 70 ha to 500 ha and to increase produc­ and managerial posts. The program­ tion from 350 tons to 2 250 tons a year. Under the LHWP treaty of 21.10.1986, me, which involves support to Asparagus is harvested in Lesotho's South Africa will be responsible for secondary schools, the University spring, and tinned and fresh aspara­ the cost of the water delivery compo­ and the Polytechnic, aims both to gus can be sold as an off-season pro­ nent (construction, operation, mainte­ train Basotho immediately and to duct in the European autumn and nance) and will buy water from improve science and maths teaching early winter seasons. Lesotho (from 1996 onwards, if all to ensure a future pool of skilled goes to plan), while Lesotho will be technical personnel (7.6 MECU, Although yields have been disappoin­ responsible for the hydropower com­ Lome III N.I.P). ting in recent years as a result of the drought in 1991/92, the project conti­ ponent. • 80% of Lesotho's Lome IV NIP, toge­ nues to provide a much appreciated ther with 10 MECU from regional revenue to some 2 000 smallholders. EC assistance has been concentrated funds and 20 MECU from the EIB Asparagus-growing is mainly a on the hydropower component and (totalling 44 MECU) will finance a related training: major proportion of Muela's civil • the feasibility study for Lesotho's works, all project supervision costs, side of the project, successfully com­ as well as continued support for the pleted in 1986 (7.7 MECU, Lome II environmental, manpower develop­ N.I.P) ment and technical assistance aspects of this vast operation during' • geo-technical studies to determine 1992-97. the optimal configuration for the Muela hydropower station (3.5 Although it will not solve all the country's MECU, EIB loan) problems, the Highlands Water Project, in . creating a new and lasting source of inco­ • the engineering design study for the me, an indigenous source of energy, and hydropower plant, plus the produc­ jobs for skilled and unskilled Basotho, tion of a Social and Environmental should do much to place Lesotho's econo­ Plan to take a careful look at these Lesotho's Minister of Agriculture inspecting a mic future on a sounder footing. small-scale irrigated vegetable scheme in northern aspects; technical assistance to the Lesotho funded from food-aid counterpart funds. Lesotho Highlands Development (SSlVP)

26 access by means of a special deroga­ tion from the rules of origin. Although the volume of Lesotho-EC trade is tiny, and the country, beautiful as it is, is too remote to attract large numbers of tourists from Europe or America, efforts were made in the 1980s to promote the export of handi­ crafts and tapestries and to improve pony-trekking facilities under a sizeable trade and tourism program­ me. In 1993 the EC funded the esta­ blishment of a tourism master plan. As a result of reduced wool and mohair export earnings - due to falling world prices and bad grazing conditions for An EC-financed secondary road in southern Lesotho. At independence in 1966 most of the country was animals - Lesotho has been eligible for inaccessible to motor vehicles. The Community has played a significant role in building up the western and STABEX transfers totalling 3.5 MECU southern road network. (HR) for the years 1988 and 1991-1992, which will be used for structural improve­ ments in this small livestock sector. woman's job and the income genera­ In addition, the Community has provi­ ted by this scheme belongs to women ded over 5 MECU to improve Maseru Other assistance rather than to their husbands - who airport and for technical assistance and often work as miners in South Africa. training of Lesotho Airways personnel. • Average cereal production in The women are therefore entitled to Lesotho consistently falls short of total consumption requirements. spend the money - mainly used for Industry, trade and tourism school fees and improvements to the Since 1978 the Community has gran­ family's everyday life - without asking ted Lesotho a food aid allocation As well as the above-mentioned sup­ their husbands' permission. In this of 7 000 or 8 000 tonnes of wheat per port of 3.5 MECU to the Highland respect the project supports the chan­ year. In response to the devastating Development Authority, the EIB has ging status of women. drought of 1991/1992 this quantity made a number of risk capital loans, was increased to 10 000 tonnes in totalling nearly 10 MECU over the per­ Counterpart funds generated from 1992/1993, and a further 5 000 iod 1980-1993 to the Lesotho National food aid sales are used to supplement tonnes of maize and 450 tonnes of Development Corporation, for on-len­ NIP-funded rural development pro­ pulses were provided under an ding to small and medium-sized firms jects - notably the national food for emergency food aid programme. in light industry. Most firms in this work programmes, the small-scale irri­ sector are producing goods to replace gated vegetable project and a forestry • 300 000 ECU from the "Support to imports, but some, especially textile programme. Frontline States" budget line has been companies, are achieving success with used for a series of integrated agricultural exports - especially to the EC which projects to provide income and employ­ Transport and communications has since 1990 allowed preferential ment for retrenched mineworkers. At independence in 1966 most of the country was inaccessible to motor Community aid (allocations in million ECD) vehicles. The Community has played a significant role in building up the western and southern network, there­ by improving communications to some of the agricultural centres, by funding the reconstruction or impro­ vement of the following sections: • Mafeteng-Tsoloane (23km, co-finan­ ced, 2.9 MECU, Lome I)

• Quthing-Qacha's Nek (l MECU, Lome I) • Mohale's Hoek-Mekaling (26km, 7.4 MECD, LomelI) • Mekaling-Quthing (26km, 10.3 MECU, Lome III) together with 30km of feeder roads from the far­ ming villages to the main road. *Lome IV totals as of March 1994, possible additional amounts to follow.

27 MALAWI _ Background emergency and refugee aid have Rural development played an increasing role in an effort A land of lakes, rivers and tree-cove­ to alleviate the effects of the drought While the large estates are essential to red hills, Malawi is perhaps the gree­ and the flood of Mozambican refugees. the national economy as the major sour­ nest of the Southern African countries. ce of foreign exchange and the main It is also the most densely populated ­ Due to bad governance and lack of res­ employers of unskilled labour, small far­ with about 112 people per square kilo­ pect of human rights in the country, ming is no less important. Almost all metre - and has one of the highest donors limited operations in Malawi rural households in Malawi are small­ population growth rates in the region. during 1992/1993. The EC restricted its holders. Between them they cultivate co-operation to continuation of existing the greater part of the arable land, on The economy is overwhelmingly agri­ projects and humanitarian aid. Recent which they produce most of the coun­ cultural. In normal years, adequate radical changes to the political and try's main staple food, maize. The rainfall and moderately fertile soils legal systems - notably a referendum in government supports them through the allow the cultivation of a variety of June 1993 which led to Malawi's first National Rural Development crops. Tobacco, tea, sugar, ground­ multiparty elections for 30 years in May Programme and through different nuts, coffee, rubber, cotton and maize 1994 - have allowed resumption of co­ bodies concerned with specific crops are grown on large estates, chiefly for operation. Accompanying liberalisation (Smallholder Coffee Authority, export. Food crops - maize, cassava, of the economy has qualified Malawi Smallholder Tea Authority etc.). The rice, sorghum, fruit and vegetables ­ for funds from the Structural two principal aims are to ensure and are grown on small or very small fami­ Adjustment Facility. improve food security, and where pos­ ly farms, while fisheries activities on sible to increase rural incomes by encou­ Lake Malawi are a major source of raging cash crops. The Community sup­ protein. Forestry, cattle and poultry ports the government in these aims, and farming also playa small role. The Structural adjustment support has devoted over 65% of both the 6th country's known mineral resources are and 7th EOFs to complementary rural insignificant, while industry, although In recognition of Malawi's economic development projects. expanding slowly, is still a much less readjustment measures 30.6 MECU important source of income and (20.6 MECU from the Structural Integrated rural development employment than farming. Adjustment Facility and 10 MECU projects from the NIP) are funding a general Integrated rural development projects Malawi exports agricultural commodi­ import programme. Resulting counter­ were the favoured instrument of offi­ ties - tobacco, tea, and sugar accounted part funds will chiefly be spent in the cial support to the rural areas in the for 87% of total export earnings in 1992 social sectors - with an emphasis on late 1970s. These attracted the largest - and imports fuel, fertiliser, and primary education, peripheral health share of Community aid to the agricul­ manufactures, via long, expensive . services and the replenishment of stra­ tural sector under Lome I and II. routes. Although South Africa pro­ tegic food reserves. Under Lome II, some 18 MECU was vides most of the country's imports, committed for three such projects in the EC counts as its biggest export the districts of Salima, Nkhotakota and market. Ntchisi. All three provided economic

Rural poverty, population growth and shortage of land are perhaps the most serious internal pressures confronting Malawi, but in recent years a combina­ tion of external factors has adversely affected the country's economy. The war in neighbouring Mozambique resulted in a huge influx of refugees and costly disruption to Malawi's tra­ ditional transport routes, falling com­ modity prices have reduced the coun­ try's foreign exchange earnings - and drought and the decision by donors to freeze aid in 1992 (see below) had a serious impact. Date of independence: 6.7.1964 The Community's financial and techni­ Capital: Lilongwe cal assistance has been directed Area: 118484 kIn' (of which towards these problems. A large share 94274 km' is land) has gone to agriculture and fisheries Population: 9020 000 (1992) Language: Chichewa, English with the emphasis very much on the Main exports: Tobacco, tea, sugar small farmer. Transport, especially GNP/head: US$ 230 (1991) road construction and repair, has Currency: Kwacha received a lot of attention. Industry 1ECU =8.07 Kwacha and trade have been supported with (April 1994) the appropriate instruments. Food,

28 and social infrastructure (roads, water • The tea crop scheme: Due to decrea­ extra outlet when the "Northern supplies, health centres... ), advice, trai­ sed earnings from tea exports, this Corridor" road link is completed, but ning and demonstrations for small far­ sector has qualified for substantial this is still 620 km north of Lilongwe. mers, and agricultural credit. transfers from the Stabex fund. Of In any event, Malawi's own road net­ these, some 10 MECU will be reinves­ work will have to cope with heavy and Results were at best mixed, at worst ted in infrastructure and payments possibly increasing road tanker and negative, giving rise to serious doubts for smallholders in the tea sector. lorry traffic, a requirement necessita­ about the validity of the integrated ting major expenditure on road impro­ approach. Although the social compo­ Fertiliser buffer stock vements in often hilly terrain. nents have brought about improve­ To encourage smallholders to use ferti­ ments in general social welfare, there liser to increase their yields, 42 MECU When current and planned roadworks is little evidence that the poorest fami­ has been invested - in the biggest pro­ are completed, the Community will . lies - those with less than 1 hectare of ject ever funded by the Community in have spent more than 120 MECU on land - have increased their incomes or Malawi - for the purchase of 90 000 improving over 600 km of roads their food production (many still run tons of fertiliser in order to establish a (paving, widening, some realignment, short of food during the year). Fertiliser Buffer Stock, and the bridges, drainage works). construction of four storage sheds, two Fisheries in Lilongwe, one in Mzuzu and one in The main aim here has been to increa­ Blantyre. The four warehouses will se the supply of fish, a valuable source hold up to 110 000 tons. of protein, to the rural areas, especially those near Lake Malawi. Under Lome 1, the Central Lakeshore Fisheries Transport infrastructure Development project (l.8 MECU) pro­ vided boats and a boatyard to lake The majority of Malawi's exports and fisherman, improved smoking kilns imports are very bulky commodities ­ and other facilities at landing stages, tobacco, tea, sugar, fuel, fertiliser - best access roads to the centres of popula­ carried by railway wagons. The loss or tion inland, and ice to traders. Further curtailment of traditional rail services north, in Mzuzu, the Central and to Beira and Nacala during the Northern Regions Fish Farming Mozambican war meant the need to Project (3.4 MECU) is being imple­ divert goods traffic to the Zimbabwe­ mented: the technical and economic South Africa line, 600 km from Blantyre parameters for aquaculture at an alti­ by road through Southern Malawi and tude of 1 000 - 1 500 metres have been Mozambique. Peace has made access established, and extension services are to the coast easier, but full normalisa­ being developed. Finally, under Lome tion could take many years. Apart IV technical assistance has been provi­ from the railway connection, the Tazara ded to the Department of Fisheries to road link to Dar es Salaam will offer an assist project planning.

Smallholder crop schemes In order to raise rural incomes without detriment to food crops, the . Community supported a number of projects under Lome I which encoura­ ged smallholders to grow cash and food crops on their land; results were positive, and the projects were exten­ ded with Lome III funds.

• The tobacco crop scheme establi­ shed 600 farmers on 6 hectare plots in Malawi's Northern Region, on which to grow maize for food and tobacco for cash. The project (6.8 MECU) provided training, mechani­ sation, milling facilities, transport for sales of tobacco, irrigation, credit and social amenities.

• The coffee crop scheme has provi­ ded some 7 MECU towards help with production, processing and sales of coffee for very small farmers in the high hills of Northern Malawi.

29 Industry and energy population was estimated to be infec­ ning of 1993 the EC has been suppor­ ted with the virus in 1994. ting relief organisations in their efforts In order to provide much-needed to repatriate the refugees. At the same employment and to diversify the eco­ War in Mozambique resulted in the time substantial quantities of maize nomy, which is heavily reliant on agri­ migration of over 1 million refugees to were provided for the local population, cultural commodities, the Malawi Malawi. Community emergency, refu­ and hospitals and dispensaries were government is keen to expand indus­ gee and food aid - valued at over 24 re-stocked with drugs, in an effort to trial and business activities. MECU in 1992 alone - all proved extre­ ease the burden of the refugee influx mely useful. Thanks to these three ins­ on the Malawians themselves. During The Community is supporting its truments, the refugees were supplied the 1992/3 drought, the EC provided efforts in three principal ways: (notably through organisations like the 90 000 tonnes of maize to Malawi.

I) EIB loans: These total some 93 MECU, from the Bank's own and from risk capital resources.

Some principal recipients have been: ESCOM - 29 MECU for the expan­ sion of electricity supply; 6.5 MECU to the Lilongwe Water Board for a water supply extension project; 11 MECU to the Dwanga Sugar Corporation (of which 6.5 MECU have been reimbursed); INDEBANK ­ 14.3 MECU for on-lending to small and medium-sized firms; and 10.5 MECU to the Blantyre Water Board.

II) Support for SEDaM: Since 1983 the Community has provided a total of over 10 MECU to the Small Enterprises Development Organisation of Malawi, initially to help set it up and then for on-lending. SEDOM has made over 4 500 loans and has helped to create or sustain over 30 000 jobs.

III) Structural Adjustment Programme: As mentioned above, the EC is provi­ ding balance of payments support amounting to 30.6 MECU to import industrial equipment, raw materials and spare parts.

Trade UNHCR, and NGOs such as the Red Cross, Medecins sans Frontieres, In addition to funds for trade promo­ Concern Universal and Marie Stopes tion and participation in trade fairs, International) with emergency relief and to the general Lome trade provi­ supplies (blankets, shelters, essential sions, which are of some importance drugs etc.), transport, and many thou­ Distribution of EC funded maize in a refugee camp as the EC is Malawi's biggest export sands of tons of food. Since the begin- by Red Cross staff. (PA) market, the Sugar Protocol is of benefit to the country: Malawi regularly deli­ Community aid (allocations in million ECD) vers its full quota of 21 000 tons a year to the Ee. [.---..-·------.-·-....--·------i~~~~·-··~~~~-~~-t~j;ri;·~·L::~~~~l

Since 1980, Malawi has received over rNationalIndicative Programme 67.9 80.0 114S 1211 30 MECU from STABEX for reduced export earnings from tea, groundnuts IStructural Adjustment Facility20.6 I and coffee. 1'1 I EIB loans: own resources 14.5 7.5 lOS. .! ! Other assistance risk capital 2 15.5 13.5 29.8. l Interest rate subsidies . 1.8 0.4 . J.7 .. , . ,. . . Special efforts have been made to r""'''''=·=='-==o''''====~=~-===""'=_..,"'=,==-..,.-==-="=o~.=:=;_-=::,=·-'.'-=,""'~"~==""-" ."j improve health services, particularly I Sub-total .. 86.2 103.4. 140.2.'171.4 in the rural areas. EC resources under the Lome I, II and III rural health pro­ I Stabex .. .. 4.8 21.7' . 4.2 grammes financed the construction of i i Food aid 31.0 district hospitals in Nsanje, Mangochi, I Karonga and Mulanje and several ! Emergency/refugee aid 2.6 0.4 17.8 10.7 smaller rural health centres. I Furthermore, under Lome III and IV, tOthe~ (NGO_~~f!nancing, etc.).. 0.4. 0:4 1.4.:'" 2.0 J the EC has allocated some 2 MECU r·.....·----.--.-.... -...... ' .. 1 towards an AIDS programme suppor­ I Total 89.2 109.0 197.+ .... ' 219..3 "J' l~.:::.;:;;:::.·=:=.:...~-..:;::.::::::::-.:::.::::::=::::;:=::~-::::..-=:=;:·-::-....:.::::::::-~=~:=~::.~:=:::~-::::::::=:::::::::::;:::-_-:-...;:;:;;;;::::..-;;:::::~~,:.:=::::~:::;_ .•. ~' •.c.,."'<";::::~....:.~.~=:. "-::-~--:::~~~=='=:' ting education and information about ~~AND 614.~ the virus - some 15% of the adult TOTAL ._.____ .

30 MOZAMBIQUE _ Background

The signing of a peace treaty in October 1992 between the government and the Renamo opposition brought to an end Mozambique's civil war. After 15 years of fighting - which resulted in hundreds of thousands of deaths, huge infrastructural damage and the displacement of some 4.5 mil­ lion Mozambicans - soldiers from both sides are now being demobilised, reha­ bilitation efforts are beginning, and multi-party elections have been set for late 1994.

War and the severe drought of 1991/1992 have reduced Mozambique to abject poverty: in 1993 the World Bank placed the country among the very poorest in the world'. This, howe­ ver, is no true reflection of Mozambique's considerable economic potential - which stems from its rich Mozambique island from which the country derives its name. (WB) mineral, hydro-electric and agricultu­ ral resources, and strategic position on the trade routes to the interior. Community funds are currently addressing the war, the Community has in the last Mozambique's immediate post-war requi­ decade had to spend more em humani­ As befits a country with one of the lon­ rements with particular focus on demobili­ tarian than on development aid. With gest coastlines in Africa (2 575 km sation, reintegration and democratisation, the peace accord, the EC has again tai­ from the Tanzanian to the South supporting structural adjustment efforts lored its assistance to Mozambique's African borders), fishing is an impor­ and financing programmes in the trans­ particular needs: two weeks after the tant activity, although generally practi­ port, agricultural and fisheries sectors. Rome agreement the Community sed on a small scale. Inland, the popu­ announced its decision to make over lation is overwhelmingly agricultural, 85 MECD available from Mozam­ with the majority engaged in subsis­ Emergency programme for bique's Lome IV NIP, Lome emergen­ tence farming. Cash crops include the post-war period cy and refugee funds, and a number of cashew nuts, cotton, sugarcane, sisal budget lines (Human rights and demo­ and, in the more mountainous interior, To address the large-scale famine, cratisation, AIDS, Front-line states, Co­ tea. Coal, diamonds and bauxite are homelessness and exile resulting from financing with NGOs, food aid funds) mined - recently in only modest quan­ tities because of the war - but extensi­ ve mineral reserves remain unexploi­ ted. The Cahora Bassa dam across the Zambezi, when operational, will pro­ vide hydro-electricity. Industry is limited to the processing of raw mate­ rials, chiefly food and cotton, and the manufacture of fertilisers and cement.

Possessing three Indian Ocean ports in Maputo, Beira and Nacala, Mozambique occupies a key position in the region's transport network. The railways and roads serving its ports offer the shortest and cheapest routes to the sea for its landlocked neigh­ bours, Swaziland, Zambia, Zimbabwe and Malawi. In addition to their regio­ nal importance, mentioned in an ear­ lier chapter, they are also of conside­ rable national significance.

, World Bank "World Development Report" 1993.

31 - for support during the critical transi­ tion period before the first multi-party elections.

Five areas are receiving attention: • 24 MECD will aid the electoral pro­ cess - principally by supporting an electoral census and the voting pro­ cess, and the rest funding technical assistance, equipment for the elec­ tion committee, and civic education programmes.

• Soldiers from both sides need to be demobilised. The EC is contributing 10 MECD to help cover the food and health care requirements of the bet­ ween 80 and 110 000 demobilised soldiers who will be billeted in 49 camps.

• Tools, seed and other agricultural inputs funded with 28.5 MECD from the Community will facilitate the reintegration of returning refugees, displaced persons and demobilised soldiers by helping them set up in Two sectoral import programmes ballast and sleepers), for radio com­ agricultural and handicraft activities. worth 70 MECD under Lome III encou­ munication and for the security raged imports of raw materials and forces needed to protect the work • In an effort to reinstate basic social intermediate products to stimulate during the war years. This line is services the Community is providing local agricultural and industrial pro­ now operational again. 15.4 MECD from the Refugee fund duction. Dnder Lome IV some 55 • Beira corridor - 9 MECD (plus for the primary health sector. Aims MECD - 30 MECD from the NIP and 45 MECD from regional funds) to are to: provide medical assistance to the rest from the structural adjustment rehabilitate quays 2-5 and the main 7 regions badly hit by drought; aid facility and funds remaining from pre­ freight handling area in the port, and the war-wounded; and expand medi­ vious sectoral import programmes - are 5.7 MECD (from regional and natio­ cal services in areas previously inac­ financing a general import programme. nal funds) for emergency repairs to cessible due to fighting. An additio­ So far, 20 MECD have been allocated part of the 180 km road from the nal 1 MECD from the AIDS budget towards the import of vital oil supplies, Zimbabwe border to Beira. line will improve health conditions half of which will be channelled in demobilisation camps, where through private operators to promote • Limpopo line - 5 MECD from natio­ hygiene standards are low. the liberalisation of this sector. nal funds and 10 MECD from regio­ nal funds for the rehabilitation of • 10 MECD is funding an emergency this railway which links southern programme to rehabilitate basic Transport Zimbabwe with Maputo. infrastructure in rural areas - 3.5 MECD towards the provision of safe Rehabilitation of Mozambique's three A 30 MECD road and bridge renova­ drinking water and 6.5 MECD to main transit routes - the Nacala rail­ tion programme is at present under repair rural roads and bridges. way in the north, the Beira "corridor" preparation in the Zambezi and Sofala in the centre and the Limpopo line in areas. Balance of payments support the south - is of national importance because their disruption, caused by Additional to its contributions to repeated acts of sabotage during the Rural development, war, jeopardises the much needed Mozambique's urgent post-war opera­ agriculture and fisheries tions, the Community is providing revenue from international traffic and balance of payments support to facili­ further isolates the already remote provinces of the interior. The rehabilitation of rural areas to tate the government's longer-term enable the return of the millions of dis­ efforts - initiated in 1987 with the laun­ Recognising this importance, the placed people is a government priori­ ch of the PRES - to restructure the eco­ ty. The Community has financed a nomy. Community' and the Mozambique government have allocated 25% of number of schemes to replace war-des­ troyed rural facilities - 68% of the 1983 , Community (EC) aid is additional to EC Member Lome III funds and further Lome IV States' aid, which is substantial in this area. France funds to the following operations: total of rural schools, 1 100 rural health and Portugal are heavily involved in the Nacala centres and thousands of wells were work, the Netherlands. Italy and Denmark in the Beira project and the United Kingdom on the • Nacala railway - 25 MECD on ruined. Two recent major projects are Limpopo line. equipment for the track (to produce upgrading telecommunications facili-

32 ties (13 MECU, Lome III) in the tion - 3 MECU - for tuna- and shrimp­ In the area of education, 2.3 MECU of Maputo, Gaza, Inhambane, Manica fishing rights in Mozambique waters, Lome III funds have provided techni­ and Sofala regions, and repairing rural and contributes 180 000 ECU to the cal assistance and laboratory equip­ health centres. cost of scientific and technical pro­ ment to the University Eduardo grammes improving the supply of Mondlane. 2 MECU has recently been Agriculture information on Mozambique's fishery allocated towards an aid programme Although Mozambique has the capaci­ resources. for Mozambican students - to finance ty to be self-sufficient in food, the com­ their return to Mozambique or to finish bined disruption of civil war and their studies. drought has resulted in annual short­ Trade falls which approach 700 000 tons. Food aid from the Community - provi­ Some 29% of Mozambique's total trade ded either for free distribution through is with the EC - so the Lome preferen­ the government, NGOs and internatio­ tial trade agreements are of conside­ nal agencies, or for sale - has been of rable importance to the national eco­ fundamental importance as it accoun­ nomy. Regional funds have financed ted for 40% of all external provisions stands for Mozambique at internatio­ in the early 1990s. Anxious to revive nal trade fairs - and over 22 MECU domestic production, the EC is now have been transferred as Stabex sup­ concentrating on obtaining agricultu­ port under Lome III and IV to offset ral products and seeds locally: in 1992 losses in the tea, copra, cotton and the Community made purchases of 15 cashew nut sector. 000 tons of maize from Mozambique and in 1993 cereal market buffer stocks - combining supplies from Europe Other assistance with local purchases - were financed with 40 MECU to meet the food requi­ Risk capital loans from the EIB have rements of demobilised soldiers. supported Mozambique's industrial sector: 6 MECU towards the rehabili­ In addition to the two massive import tation of a cement factory in Matola; 3 programmes under Lome III which MECU to LOMACO; 6 MECU to the provided seeds, raw materials for ferti­ Bank of Mozambique for onlending to lisers and pesticides, tools, vehicles, small and medium sized enterprises; building materials, spare parts etc. to and in 1993, 3.3 MECU to the Ancuabe the farmers and fishermen, the Graphite mine and 3 MECU to a Community has supported a number cashew-nut processing plant in of agricultural projects, which include: Nacala. a potato production project in Chimoio region (7.1 MECU); a programme designed to increase food self suffi­ ciency in the Moamba region (2 MECU); three integrated develop­ ment programmes in Cabo Delgado (5 MECU), Inhambane (4.5 MECU) and Moamba (12 MECU) provinces to Community aid (allocations in million ECD) improve the production and marke­ ting of agricultural produce and fish goods.

Fishing The considerable potential of the fishe­ ries sector has been relatively unex­ ploited. Apart from the integrated programmes mentioned above, a 7.5 MECU programme in Inhambane is supporting the activities of small-scale fishermen. Institutional support - in the form of 12 fisheries experts - is being provided by the Community at a total cost of 2.75 MECU.

The fishing industry also benefits from the EC-Mozambique fisheries agree­ ment under which, for the period 1992 -1993, the Community pays compensa-

33 NAMIBIA _

Background Recognising the needs of the newly­ Health independent country, Namibia was On 21 March 1990 the Republic of accorded treatment equivalent to that In May 1993 13.5 MECU was approved Namibia gained independence. The of a least-developed country. for a large integrated health program­ following month it joined SADC - and me. Objectives include: the strengthe­ in December became the 69th ACP After consultation between the ning of financial and administrative State on accession to the Lome Commission and the Namibian management and infrastructure; health Convention. government, it was decided that manpower development; regional inte­ Community assistance should be grated health projects in all four regions The youngest member of the SADC concentrated on the three focal sectors of the country (institution building, family is a large, sparsely populated of agriculture and rural develop­ management, administration, PHC country. More than half its inhabitants ment, health, and education. delivery, mother-child care....); and an live in the northern alluvial plain, essential drugs programme (manage­ where water, although scarce, is more Agriculture and rural ment of procurement, storage, distribu­ plentiful than on the higher central development tion, supply and use of pharmaceutical plateau or in the arid south. The products and medical supplies). Kalahari Desert extends into eastern Although approximately 120 000 fami­ Namibia and the entire coastal strip ­ lies earn their living from communal Technical assistance and financial sup­ the Namib Desert - is barren. farming, this sector has in the past port for the Namibian AIDS Control been excluded from the benefits of Programme is also being made avai­ Minerals, livestock and fish constitute improved farming techniques and lable from Community resources. the country's principal resources. The access to formal markets. The EC is mining industry, developed and large­ financing a major rural development Human resource development ly owned by independent companies, support programme with 7.7 MECU, provides 60% of export earnings. which will centre around the streng­ In response to the educational imbalance Diamonds and uranium are the most thening of agricultural extension ser­ inherited by Namibia at independence, valuable products, but lead, copper, vices in the Northern Communal and the commitment of the government zinc, cadmium, tin, gold and silver are areas, with a view to improving house­ to provide equality of access to educa­ also mined. Farming is of two kinds: hold food security in particular. In tion, 20% of Lome IV funds have been subsistence agriculture, chiefly in the addition, 1.3 MECU from the Lome IV allocated to education and training. north, occupying 60% of the popula­ NIP has been providing three agricul­ tion; commercial cattle and sheep far­ tural economists to enable the Ministry The In-Service Training and Assistance ming, mainly for export, in parts of the of Agriculture, Water and Rural for Namibian Teachers (INSTANT) centre and south. Pilchards, mackerel, Development to better design appro­ Project, first financed under the 1990 bud­ anchovies and lobster are caught in the priate agricultural and rural develop­ get line and now receiving 4.5 MECU coastal waters, and hake - the most ment policies for Namibia. from the Lome N NIP, aims to improve valuable species - further offshore. the standard of maths and science tea­ Limited manufacturing activities EC support also extends to the livestock ching at secondary school level. include food processing (of meat and sector - and includes regional funding fish), building materials and speciali­ towards Tsetse and Trypanosomiasis 1.8 MECU has been allocated for the sed mining equipment. Control, and a study on the Karakul indus­ construction and rehabilitation of prima­ try. The EIB has allocated 2.5 MECU risk ry school classrooms and teachers' The EC is an important market for capital for the construction of a tannery. accommodation in rural areas. It is envi- minerals and, more recently, agricultu­ ral products. Namibia's closest econo­ mic links are still, however, with South Africa - which supplies 90% of the country's imports and buys 25% of its exports. Namibia is a member of both PROFILE the Southern African Customs Union Date of independence: 21.3.1990 (SACU), and the Common Monetary Capital: Windhoek Area (CMA) - which links all partici­ Area: 824269 km2 pating countries within common rules (including Walvis Bay) of monetary behaviour. Population: 1443 800 (1992) Languages: English, German, Afrikaans, WI' The European Community provided Os hIvam· b0, Herero, NavIsama Bay considerable financial assistance to the Main exports: Minerals (especially population of pre-independence diamonds and uranium), Namibia under various budget lines. agricultural products, Further funding during the interim manufactured products (including processed fish period between independence and and meat). accession to the Lome Convention GNP/head: U5$1460 (1991) totalled 32 MECU. A National Currency: Namibia Dollar (NAD) Indicative Programme, allocating 45 1 ECU = 3.99 NAD MECU in grants and 6 MECU in risk (April 1994) capital, was signed in March 1992.

34 saged that approximately 70 classrooms EC-funded classroom under will be built over a period of two years. construction, northern Namibia. (JOK) As far as manpower development is concerned, the Commission is conside­ ring a proposal to support an initiative undertaken by the Namibian National Planning Commission, which will contribute to government policy desi­ gn in this sector. EC-financed primary health clinic in rural area, south-east of Windhoek. (BE) Mining

The most important sector in the Namibian economy (contributing over 20% to Namibia's GOP) remains the mining industry, despite having suffered from the fall in world commodity prices.

Owing to the extension under Lome IV of the range of minerals covered by the SYSMIN system, Namibia was able to benefit from a grant of 40 MECD to off­ set reduced earnings from uranium exports. These funds will be partly lent on to independent mining companies and repayments will constitute a revol­ ving fund for continued support to the independent mining sector in Namibia.

Fisheries The EC is currently assisting the Namibia - involving elephant tracking, government in designing an interna­ and the protection of rare black rhinos. The seas along Namibia's Atlantic coast contain some of the richest tional trade strategy, and has funded Namibia's attendance at a number of In addition, 700 000 ECD has been provi­ fishing grounds in the world. Now ded through the Human Rights and that conservation policies implemen­ international trade fairs. Democratisation budget line to support the ted at independence are helping to Namibia's tourism industry has consi­ democratisation process in the country. replenish stocks - seriously depleted derable potential to contribute to the by overfishing - the fisheries sector has economic growth of the country. The Emergency food aid (15 000 tons of the potential to become extremely pro­ fitable. A long-term aim of the go­ EC is providing financial assistance for cereals - 10 000 for sale and 5 000 for free the preparation of a government white distribution) was provided to Namibia vernment is to maximise the local pro­ under the Special Food Aid Programme, cessing of fish caught in Namibian paper on tourism. created in response to the 1992 drought. waters, to develop an indigenous off­ shore fishing fleet and associated Other assistance Community funding is being conside­ fisheries support services. At indepen­ Through its Environment budget line the red for the rehabilitation of the Trans­ dence Namibia assumed responsibility Caprivi Highway. for marine fisheries within the SADC EC is financing conservation projects in framework. Community aid (allocations in million ECU) Funds have been allocated from the Commission budget towards the trai­ ning of fisheries inspectors and the upgrading of the maritime training centre in Liideritz.

Trade and tourism

Namibia benefits from all the trade provisions under the Lome convention - but particularly from the beef proto­ col, which allows Namibia to keep 90% of the tax normally payable on beef imports into the Community for up to 60 000 tons during 1991-1995.

35 SWAZILAND Background Education and Training larships under Lome II, the Science faculty acquired new buildings, tea­ Bordered on three sides by the The EC is supporting modern agricul­ ching equipment, staff training and Republic of South Africa and on the tural education in schools - started in visiting lecturers under Lome III. fourth by Mozambique, Swaziland is a Swaziland by the United Kingdom ­ small land-locked country perched on with part of its 8 MECU human • Vocational and Commercial the edge of the South African escarp­ resources development programme Training Institute, Matsapha (VOC­ ment. Rugged highlands in the West under Swaziland's Lome III NIP. A TIM): which provides training descend to low-lying plains - the low­ number of schools are being provided directly relevant for industrial and veld - which rise again in the east to with livestock, sheds, fertiliser and commercial jobs in the modern sec­ the Lebombo range along the border tools - and funds have been made tor, was built from scratch and partly with Mozambique. Four major rivers available for technical assistance both equipped with EC funds (3.9 MECU offering considerable hydro-electric to devise courses, and for teachers' from Lome Il). The Institute has potential are used for irrigation in the training seminars. recently acquired 3 new student hos­ drier lowveld. tels, built with Lome III funds, which The problem of raising science and have raised student accommodation Agriculture is the mainstay of the eco­ maths standards is being tackled by a places from 50 to 150. Further accom­ nomy. Sugar (35% of total export ear­ 2.9 MECU programme (co-financed modation facilities and educational nings) and wood pulp and timber with the Dutch government) which, equipment will be financed with 1.1 (15%) are the leading exports. Other firstly, provides technical assistance, MECU from Lome IV NIP. exports include citrus fruit, tinned books and other teaching aids for pineapples, meat - and in the mining science and maths teachers already in • Ngwane Teachers' Training College: sector, asbestos and coal. Locally service, and secondly, is funding built with a 2.5 MECU grant from grown cotton provides the raw mate­ 270 scholarships for students to follow Lome 1, provided with staff accom­ rial for a small textile industry. a four month bridging course before modation and equipment with a 1.8 Handicrafts are widely produced in entering the University of Swaziland MECU grant from Lome II, the the rural areas. Swaziland currently to read Science and Maths. 300 scho­ College acquired 7 new classrooms, receives some 250 000 tourists a year, larships will also be offered for similar staff houses and 6 scholarships from mainly from South Africa. Agriculture Pre-Entry courses. A Lome III funds. Consistent EC sup­ second phase of this programme was port has paid dividends, for the Although the EC has been absorbing launched in 1993 (co-financed with the College has won a good reputation about one third of all exports in recent Dutch and Swazi governments), and and its senior staff members have years, Swaziland's economy is closely focuses on the upgrading of science remained in their posts ever since tied to South Africa - the source of 90% and maths teaching facilities, in-servi­ inauguration. of its imports, most of its tourists and ce teacher training and the improve­ thousands of jobs for Swazi migrant ment of school management skills. The regional aspects of EC support for workers. human resource development - the Three institutions in particular have Institute for Development Management, The government aims to reduce received extensive Community sup­ the Mananga Agricultural Management dependence on its powerful neigh­ port: Centre, technical assistance for the bour, by encouraging the emergence of Regional Training Council - have been modern agricultural, industrial and • University of Swaziland: built and mentioned earlier under Regional Co­ service sectors. It is making determi­ equipped with Lome I regional operation. ned efforts, with the assistance of funds, endowed with science scho- . donors, to build up an educational sys­ tem which will provide the knowledge and skills required by a modern eco­ nomy. A major part of the Community's assistance has been used to support this system, both nationally and in the wider regional context, where Swaziland is responsible for human resource development within SADC. The development of the rural PROFILE areas, where some 70% of the popUla­ tion lives in rather backward condi­ Date of independence: 6.9.1968 tions, is another major government Capital: Mbabane policy to have received consistent sup­ Area: 17363 km' port from the Community under the Population: 810 000 (1991) four Lome conventions. More recently Language: Siswati, English .Ngwane substantial funds have been directed Main exports: Sugar, woodpulp towards the upgrading of Swaziland's GNP Ihead: US$1129 (1992) Currency: Lilangeni (plural transport infrastructure. Emalangeni) 1ECU = 3.99 Emalangeni (April 1994)

36 Transport and Communications

10 MECU, representing 40% of Swaziland's Lome IV NIP (and making this the largest single project so far undertaken by the Community in Swaziland) has been earmarked for the expansion and upgrading of 8 km of road, connecting the major indus­ trial area and the international airport at Matsapha with the commercial area of Manzini. Work began in 1992 to convert the two-lane road to a four­ lane dual carriageway, and will conti­ nue (with ADB support) on the connection to Mbabane in 1994/5.

Rural development

Some 70% of all Swazis live in rather Overview ofMatsapha-Manzini Highway under construction. scattered homesteads in the rural area, raising sheep and cattle, growing maize and other food crops and EC support for rural development also An extension of the project under Lome making a variety of handicraft pro­ includes a substantial - and very suc­ IV (2 MECU) will provide for the ducts (baskets, candles, mats etc.) cessful - microprojects programme (3 construction of a further 18 dams for much sought after by tourists. Living MECU under Lome Ill, and 2.2 MECU livestock use, domestic water consump­ conditions are difficult - life expectan­ under Lome IV). These cover a wide tion and irrigation of vegetable plots. cy is low, access to safe water is a pro­ range of activities: infrastructure, inco­ blem, and infant mortality, especially me-generating schemes, self-help pro­ Industry from water-borne diseases, is high. jects. Aiming to promote self-reliance, these projects help to develop a com­ Swaziland has traditionally offered a The Community has supported the munity spirit and to encourage rural stable investment climate, and has government's policy of rural develop­ communities to playa more active role attracted a number of European ment from the outset. Under Lome I, in shaping their own future. Investment Bank loans: 3.5 MECU was used to build the Simunye irrigation canal and a fur­ ther 2.6 MECU was devoted to a pro­ gramme of small operations in rural Recipient EIB loans areas, including the construction of a (million ECU) number of footbridges. Lome II pro­ vided 3.5 MECU for a smallholder cre­ Lome I National Industrial Development Corporation 3.15 dit and marketing project, and laun­ Royal Swazi Sugar Corporation (for a third sugar mill) 10 ched the first phase of a rural water supply programme (2.4 MECU). This Lome II Luphohlo Hydro-Electric Scheme 7 provided some 17 000 people in eleven villages with drinking water from Lome III Swaziland Industrial Development Corporation standpipes, and sanitation in the form (equity purchase and onlending to SMEs) 3 of pit latrines. SIDC (for construction of industrial buildings) 1 Swaziland Meat Industries, via SIDC 1 Phase II of the programme (2.6 MECU SMI (to repair slaughterhouse) 1 from Swaziland's Lome III NIP) will Natex Textiles (for a spinning mill) 3 serve 18 000 people in 12 villages, pro­ Spintex Ltd (for a spinning mill) 4 viding them with safe drinking water from standpipes within a maximum Lome IV SIDC, global loan (SMEs) 3.5 walking distance of 200 yards, and Swaziland Sugar Association (to upgrade refinery and 4.5 2 400 pit latrines, to be built by the vil­ storage capacity) lagers themselves under supervision. The EC is paying for the heavy works and hardware (drilling operation, Finally, a 3.9 MECU programme under Interest rate subsidies from the EDF pipes, taps), the Swazi water board Lome III to repair 16 earth dams and have reduced the cost of some of these will pay for major repairs and replace­ build 10 new ones in the Lowveld was loans. The tourism industry has bene­ ments, but each local water committee completed in 1993. The stored water fitted from certain aspects of the Lome must pay for fuel and routine mainte­ will be used for irrigation, for watering integrated programme to develop nance. cattle and for domestic consumption. trade, tourism and handicrafts, and

37 One of the Swaziland sugar mills at Ubombo Ranches in the Lowveld to be improved with an fIB Lome IV from regional programmes supporting loan to the Sugar Association. (DC) participation in tourism fairs in Europe.

Trade

In addition to the trade aspect of the integrated programme (attendance at trade fairs, technical assistance, market research, etc.), and the general trade Community aid (allocations in million ECD) provisions of the Lome Conventions (35% of Swaziland's exports now go to Lome I LomelI LomelII the EC), the special protocols on Sugar " and Beef can be worth an extra 50 and National Indicative Programme 12 18.5. 25.5 5-10 MECD respectively, depending on the extent to which the country ful­ EIB loans: risk capital 1.2 7 2:1 own resources 12 7 6 fils its quotas. I Llnterest rate subsid~=.s_ 2 2.1 1.1 J Other assistance i Sub~to~l-----~" 27.2 27.6 39.6 33 . I ~ . .... ,,______..:.....J Stabex transfers for losses on iron ore r------.------.----.---.- ~ and cotton exports brought in an extra I Stabex 13.2; 8.2 j 21 MECU under Lome I and II; emer­ I Food aid 0.6 1.2 1.2 gency and refugee aid has been useful, 1.11 particularly in helping with IEm"'gen,yj,e{ugee aid 0.4 0.1 1.5 I Mozambican refugees; modest but useful quantities of food aid were dis­ I Other 0.1 0.1 0.6.. 0.41 tributed by NGOs and international f""="c="-C~"==""'=c='''C~"'C''"''"..~_''''c,,='-=~o.,.c='''''''''''_~''_==.z'=',,,,,,,,=,,,,=,,,,,,,,co==c=,,",c"'''',,,,,,,,,,,,==oc===l agencies during the recent drought; i Total 41.5 37.2 42.9 34.5 ..J and the blind and disabled have bene­ I"G~N-;TO~Ai"-=='c==,=~====--=---=-:----=-- 156.1 - i fitted from NGO co-financed projects. L..- ._____ I

38 TANZANIA _ Background nal finance. For several Member States alone. In order to protect the poorest with bilateral programmes - among members of society from the potential­ The second largest of the SADC coun­ others, Germany, Netherlands, ly adverse effects of economic reform, tries - Spain, Portugal and Italy would Denmark and Ireland - Tanzania is the the Community is contributing to the all fit in with a little to spare ­ largest recipient. The Community's government's budgets for primary Tanzania resembles a vast cirque, rin­ EDF contribution, amounting to over education and basic health care via ged by mountains and lakes, opening 900 MECU since 1975, represents a counterpart funds. onto the sea. The interior is a semi­ significant proportion of foreign aid. arid plateau, sparsely populated and Funding under Lome I, II and III took Rural development and subject to shortages of food and fod­ the traditional form of project assistan­ agriculture der. The peripheral regions are more ce - principally in the fields of rural heavily populated, for the most fertile development, transport infrastructure Reflecting the central role that the agri­ soils are to be found on the lower and industry. In line with Tanzania's cultural sector plays in the Tanzanian slopes of the mountains, in the lake economic realignment, the Communi­ economy - it provides employment for areas and in the coastal plain. ty has restructured its financing - half about 80% of the population, and of Lome IV assistance is directly sup­ accounts for a maximum of 75% of Although diamonds and tin are porting Tanzania's adjustment mea­ export earnings - Community assistan­ mined, and the country possesses sures. ce has for many years been concentra­ large reserves of iron ore and coal, lar­ ted in this area. gely unexploited, the economy is Structural adjustment support overwhelmingly agricultural. Cash 90 MECU - or over 50% of Lome III crops include coffee, cotton, sisal, tea, Macroeconomic reforms lie at the core resources - funded the Agricultural tobacco, sugarcane, cashew nuts and of Tanzania's restructuring process. Sector Support Programme in the pyrethrum. Maize, millet, sorghum, Principal objectives are financial and south-west of the country, where the rice, bananas and cassava are the main budgetary reform; rationalisation and potential for maize as well as coffee is food crops. The two are often combi­ privatisation of publically owned high. The programme included major, ned, coffee and bananas being a com­ enterprises, and pruning of the civil co-ordinated projects in the Southern mon combination in the north. With service. Although the reform program­ Highlands - focussing upon the impro­ the exception of tea and sisal, and a me has still a way to go and macroeco­ vement of maize and coffee production, few coffee estates, farming is essential­ nomic balances remain very fragile, assistance to co-operatives, road impro­ ly a small-scale family business in the country has already succeeded in vement, and institutional support. Tanzania. Cattle farming is also reversing a long period of decline and important: the national herd numbers has recently recorded positive growth In the recent context of economic an estimated 12 million animals. In figures per capita. adjustment and liberalisation of the the manufacturing sector, the textile agricultural sector, the Community's industry is perhaps the most impor­ The EC has supported Tanzania's eco­ structural adjustment support is condi­ tant. The country's national parks, par­ nomic restructuring with balance of tional upon the government maintai­ ticularly Kilimanjaro, Ngorongoro payments support from the Structural ning its efforts to address the more fun­ Crater and Serengeti National Park, Adjustment Facility - totalling 85 damental problems hampering rural attract significant numbers of tourists. MECU by the end of 1992. These development. As agriculture is pro­ funds have been supplemented by gressively freed from the pervasive The economic development of Lome IV STABEX funds - equalling control of the state - and producer Tanzania, one of Africa's poorest and 46.5 MECU between 1990 and 1992 prices, notably of maize, are allowed to now most aid-dependent countries, has proved to be difficult. Transport, not surprisingly for such a large coun­ try, is a major problem. Shortage of foreign exchange, seriously aggrava­ ted by steep declines from 1970 to 1985 in the production of most cash crops ­ the principal source of hard currency ­ made the purchase of productive imports extremely problematic. Since the early 1980s, the Tanzanian govern­ PROFILE ment has been rethinking its economic policy - moving away from a socialist, Date of independence: 9.12.1961 centralised model of development Capital: Dar es Salaam/ Dodoma towards a free-market system, and is Area: 945 087 krn2 now under an IMF structural adjust­ Population: 25 900 000 (1992) ment programme. Economic liberali­ Language: Kiswahili, English sation has been paralleled by a gradual Main exports: Coffee, cotton, minerals, tea, tobacco transition towards multiparty demo­ GNP/head: US$ 100 (1992) crCicy, Currency: Tanzanian Shilling 1ECU = 564.47 shillings Development aid has for some time (April 1994) constituted a major source of additio-

39 float to market levels - there is some under the Stabex system: of the Transport and communications evidence that the effects, even on the 82 MECU transferred to Tanzania so far, poorest sections of the population, have 39 MECU have been for coffee, and the Tanzania's basic network - 46 000 km been positive. Counterpart funds, as rest for sisal, cashew nuts and cotton. of roads (many of them impassable in mentioned above, are specifically targe­ Stabex funds have been primarily rein­ wet weather), 2 580 km of railways ted towards basic health and primary vested in the sectors in which the short­ and several lake and sea ports - is vital education budgets in order to help miti­ falls occurred. Under Lome IV, support for the national economy and is also of gate the potentially adverse effects of from Stabex funds has been given direct great importance for its land-locked adjustment on the poor. Future deepe­ to coffee producers in proportion to neighbours. Because the country does ning and extension of reforms - e.g. to their earlier production. First transfers not yet have the resources to improve the financial sector, the co-operatives of the equivalent of 10 MECU took or even fully maintain its transport and to export crops - should increase place on a trial basis in 1993, involving infrastructure, external aid is essential. the income-earning opportunities of the more than 200 000 farmers organised in rural majority still further. 766 primary co-operatives. The Community has so far allocated well over 400 MECU in this sector: • Coffee improvement over 300 MECU on roads and vehicle Because coffee accounts for roughly repairs, 100 MECU on railways and 30 1/6 of Tanzania's total export ear­ MECU on ports. This does not include nings, and provides a living for some the maintenance of feeder roads two to three million people, the undertaken as part of rural develop­ Community has considered it essential ment programmes. About half the to try to sustain coffee production total amount has come from regional levels. This has been the aim of exten­ funds, reflecting the regional interest of much of the work. . sive support for Tanzania's coffee industry under the first three Lome • Principal Conventions - totalling more than coffee-growing Major projects include: areas 60 MECU from EDF resources. • Mwanza-Musoma and Musoma­ Serari roads, around the south-east shore of Lake Victoria (increasingly Lome I Coffee Improvement Programme 1977-81 12.5MECU used by transit traffic as a "short cut" to Nairobi and Mombasa); Lome II Coffee Development Programme Phase I, 1982-84 13.5MECU • Lushunga-Bukombe and Bukombe­ Phase II, 1985-87 9.5MECU Isaka roads, part of a new all-wea­ ther link between Rwanda and the Lome III Coffee Production and Marketing, 23 MECU northern branch of the Central 1987-1990 Corridor Railway Line (to be com­ pleted by a road-rail terminal);

EC funds were used to provide far- i-- mers with equipment and chemicals; I to maintain some 2 000 km of feeder roads; and to finance training and research.

While overall output has not risen significantly (production totalled 53 000 tons in 1992 which is similar to the 1968/9 figure), coffee production has at least remained fairly stable in com­ parison with output of many other cash crops - and is now showing early signs of recovery as a result of rationa­ lisation by the government and of rising world prices.

• Stabex 1970-1985 saw a marked decline in the production of many cash crops - nota­ bly cashew nuts, cotton, pyrethrum, and sisal - usually ascribed to inadequa­ te returns for producers resulting from taxation and unduly high marketing costs. Falling export revenues made Tanzania eligible for financial support Smallholder coffee plantations in the Southern Highlands. (AB)

40 • Ibanda-Uyole road, providing improved access to and from Malawi; • Maintenance of the Tazara and Central Railway lines, particularly through the production of ballast, the supply of locomotives and wagons, maintenance work, and technical assistance; • Rehabilitation of Kigoma, Dar and Lake Victoria ports; • Rehabilitation of Zanzibar ports.

The Northern Corridor, with Mombasa as the point of entry, is now served by rail, road and pipeline - as is the corridor from Dar es Salaam towards Malawi and Zambia. It is expected that by the year 2000 the main highway network will be sub­ stantially rehabilitated - including the key Central Corridor crossing The Community is funding restora­ tion of the Old Fort at Bagamoyo for Tanzania from Dar es Salaam to the use as a training centre in the field landlocked countries of Uganda, ofconservation and restoration of Rwanda and Burundi, built with consi­ historical buildings. derable contributions from the Community. Attention is now being focussed on efficient operation and Other assistance management. In the field of social infrastructure, to its 26 million inhabitants, it has Industry Zanzibar's general hospitals have been nevertheless received over 75 MECD assisted; and the water supply systems of Community food aid since 1976, To date the Community has invested for the towns of Mwanza, Mtwara and much of which has been sold to gene­ rather more than 50 MECD, mainly in Mbeya have been extended, trebling rate counterpart funds for use in emer­ the form of risk capital and special capacity for the first two and doubling gency relief and various agricultural (soft) loans through the EIB, in the it for Mbeya. This investment helps to development activities. These funds industrial sector. Its biggest single ensure that the systems better meet represent considerable extra develop­ investment - 33 MECD in all - has been present and foreseeable future needs. ment resources, and have made it pos­ in the Morogoro Canvas Mill, which sible to encourage agricultural produc­ has over 1 000 employees. The mill, Although Tanzania has not required tion and avoid adverse effects of food which is in the process of being priva­ food aid on a massive scale in relation aid on farm prices. tised, is equipped with modern machi­ nery enabling it to produce quality Community aid (allocations in million ECU) canvas, and it has secured overseas and domestic markets for its products. Other projects include the construction of an access road to the Mufindi Paper Mill and the extension of a textile mill in Arusha.

In the south-west, a loan of 3.5 MECD has financed 100 km of electricity transmission lines, and in early 1992 a 25 MECU grant was made to a tele­ communications upgrading project.

The current balance of payments sup­ port to Tanzania - in addition to earlier import programmes (24.5 MECD in 1989), has greatly improved the availa­ bility of foreign exchange for Tanzanian importers. A very high proportion of funded imports are directed towards the industrial sector.

41 ZAMBIA _ Background des. Impressive progress has already term programmes will combine exten­ been made. sive rehabilitation and refurbishment Occupying an area slightly larger than of medical and educational institutions Britain and Spain put together, and The Community has allocated 12 with technical assistance through trai­ nearly twice the size of neighbouring MECU from the Lome IV NIP, 71 ning at district level. Zimbabwe, landlocked Zambia MECU from the Structural Adjustment contains some 8.4 million inhabitants. Facility and 60 MECU from SYSMIN Furthermore, Zambia will be assisted Zambians are among the most urbani­ III funds as structural adjustment sup­ in its efforts to combat the AIDS epide­ sed of African peoples: over half the port. Foreign exchange is being provi­ mic through regionalisation of the population live in towns, which grew ded to finance necessary imports for National Blood Transfusion Service ­ up around the mines or along the rail­ the productive sector, while the coun­ and hence the provision of safe blood. ways built to transport the copper and terpart funds are credited to the natio­ other mineral products - cobalt, lead nal budget - enabling the government 10 MECU from Lome IV ensures the and zinc - to the distant ocean ports. to commit adequate levels of expendi­ continuation of the successful The rest live in villages or in small ture to the social sectors and reduce Microprojects Programme (7 MECU rural townships scattered over a vast public-sector debt. The latter should from Lome II and III), whereby com­ area. make room for expansion of credit to munities are given funds to improve the private sector. their own conditions, particularly in Although the country inherited one of the areas of basic education, health, the highest per-capita incomes in Sub­ Under Lome IV almost 2 MECU has safe water, sanitation and food securi­ Saharan Africa on gaining indepen­ been made available to assist the ty. Groups targetted for help under dence in 1964, subsequent poor econo­ Zambian government to more effecti­ this scheme include: urban and rural mic management combined with a vely manage its own and external female-headed households; rural com­ slump in copper prices and copper financial resources. munities in areas of environmental output (copper still accounts for some risk (e.g. drought-prone areas); low 80% of export earnings), oil price rises, income urban households; the young and high transport costs, resulted in Social sector assistance (especially children under five); the decades of serious economic decline. aged, disabled and chronically ill Zambia became one of the world's Structural adjustment inevitably (including AIDS victims and their most indebted nations - with a debt affects the most vulnerable groups in families); and agricultural smallhol­ burden of almost US$ 1 000 per capita. society. Delivery of effective health ders. and education services is therefore The new government, elected through important for the success of the overall The Zambia Centre for Accountancy democratic elections in 1991, has put programme. Studies (ZCAS) was established with into place a radical programme of Lome III funds to address the critical reforms, which is being implemented 12 MECU from Lome IV NIP under shortage of professionally qualified at a remarkable pace. Taking account the Social Sector Support Programme accountants by providing accountancy of Zambia's new economic, social and is backing up policy reforms in the training within Zambia - thereby political priorities, Lome IV funds Ministries of Health and Education ­ saving on scarce foreign exchange have been focussed towards support which will lead to the decentralisation otherwise needed to send students for structural adjustment, assistance to of services to the districts and the abroad. The project has been a great the productive sector (rehabilitation restructuring of planning functions success - pass rates in internationally and maintenance of the road system, and policy formulation in the central­ set exams have been twice the world promotion of non-copper expo-rts, line ministries. Short and medium average, and under Lome IV 6.8 improvement of the animal health sec­ tor), and aid for the social sector. Under earlier Lome Conventions agri­ cultural and integrated rural develop­ ment programmes received priority.

Structural adjustment support Date of inde 24.10.1964 Capital: Lusaka The government has committed itself Area: 752614 km' to improving economic efficiency and Population: 8400000 (1991) establishing a more stable macro-eco­ Languages: English, Bemba, .k.l._.,..,Tonga, Lozi, Nyanja nomic environment, restoring internal orts:Copper, zinc, lead, and external balances, boosting non­ cobalt copper exports and generally diversi­ Non-tradit'onal exports: Horticultural produce, fying the economy away from copper. gemstones, textiles, building materials, To this end it is swiftly implementing animal products a radical economic adjustment pro­ US$ 350 (1992) gramme - which will involve a major Kwacha liberalisation of the economy, inclu­ 1ECU =807.95 Kwacha (April 1994) ding reform of demand, supply, exchange rate and external debt poli-

42 MECD will provide for a further 200 Zambian accountants to be trained, for 150 to obtain a licentiate qualification, and for the creation of a sustainable and commercially viable training insti­ tution.

Transport and communications

A total of 38 MECD (Lome III and IV) is being devoted to the rehabilitation of some 200 km of a major trunk road­ the Great North Road - which links Lusaka with Kabwe and then Kapiri Mposhi. Further roads projects are being considered for funding under Lome IV national and regional pro­ grammes.

A 2.2 MECD grant from Lome III regional funds will help .finance the rehabilitation of the quay, imp'rove­ Work in progress on the Great North Road - Lusaka to Kabwe. ment of access roads and the provision of a workshop and crane for Mpulungu harbour on the southern result the agricultural sector has real services and the redefinition of the end of Lake Tanganyika. potential to become a greater source of private and public sectors' respetti­ income and employment. ve roles in the industry.

Mining Two smallholder development pro­ •A 1.3 MECD grant has been made jects - one in the northern Copperbelt available under Lome III to the Batoka Dairy Cross-Breeding Although Zambia still derives almost Province (12 MECD) and the other in Ranch to produce dairy cross-breed all its foreign exchange from copper the Central Province (12.35 MECD) ­ have been launched with Lome III animals to be sold to various govern­ and cobalt exports, declining output, ment and donor-aided rural dairy rising production costs, and fluctua­ resources to increase production and yields through the introduction of schemes, with a view to increasing ting world prices, have rendered the dairy production. mining sector an unreliable source of improved technical packages for rain­ income. fed agriculture. In line with the • The question of animal health was government's recent liberalisation in addressed under Lome II and III by In addition to large loans from earlier its approach to agriculture, these pro­ the building of a laboratory to pro­ SYSMIN facilities, a SYSMIN III alloca­ jects have been reoriented to focus duce animal vaccines locally (3 tion of 60 MECD has been made. With upon market information, credit and MECD), and by a regionally and the emphasis now upon reducing the privatisation pilot schemes on crop nationally funded Tsetse program­ economy's dependence on mining, marketing. me, chiefly in the Zambezi Valley these funds will not as previously be area (7.1 MECD). 8 MECD under channelled directly back into the 5 MECD of Lome IV funds have been Lome IV will allow for the increase mining sector but will reinforce the targetted for the rehabilitation of 300 in area of intervention of the tsetse general balance of payments support km of feeder roads in areas of high project (2 MECD) and will focus on programme. agricultural production in the the LSCS (2 MECD) - mainly direc­ Copperbelt and Central Provinces. ted to input supply through the pri­ vate sector and the establishment of Agriculture and livestock Livestock private veterinary facilities to impro­ Although cattle farming is on a smaller ve disease control and to increase Agriculture scale than in neighbouring Botswana, productivity. the Zambian livestock industry is a Zambia's land is relatively fertile, rain­ flourishing concern. The Community fall is mostly adequate and reliable, has financed several operations of and moderate average temperatures benefit in this sector. allow most tropical and some tempera­ te products to be grown. When rain­ • The Livestock Services Co-operati­ fall is inadequate it can usually be sup­ ve Society was set up under Lome plemented by irrigation from the III as a vehicle to test and implement rivers which drain large areas of the salient points of the agricultural country - the Zambezi and its tributa­ policy reform process - and, among­ ries in the West, South, Centre and st them, the development of private East, the Luapula in the North. As a initiatives in the delivery of livestock

43 Trade Distribution of maize supplied under EC Food Aid Programmes during the 1991/1992 severe drought. (GF) 10 MECU from the Lome IV NIP are funding an export development pro­ gramme which aims to boost Zambia's non-copper exports. The coffee, tobac­ co, horticulture and cotton textiles sec­ tors have been identified as having hitherto unexploited export potential ­ and Community resources will fund the provision of credit facilities, trai­ The women and children ofMwandi Compound, Southern Province, enjoying the good supply of ning, consultancy and advisory ser­ clean, potable water provided through their efforts vices, technical and market informa­ and using funds from the Microprojects tion and quality control test facilities Programme. (MJ) for exporters.

It is worth recalling the Community's support, mentioned earlier, for the PTA and its secretariat which is based in Lusaka.

Other assistance

In the non-mining industrial sedor, which the government hopes to deve­ lop as an alternative source of employ­ ment and income, the EIB has made several loans to the Development Bank of Zambia for on-lending to companies working chiefly in industry, agro­ industry and tourism. The EIB loan for the Tazama oil pipeline has been mentioned under regional co-opera­ tion.

During the severe drought of 1991/92, which resulted in heavy crop losses in six of Zambia's nine provinces, the Community pledged a total amount of Community aid (allocations in million ECD) 109 430 tonnes of food aid. Most of the aid was given to the Government [.-.-.-- .. --·----··--·-·~·-----~~~~~--·--~i~~·11·- .. ~~~~·~11~·-'~~~~1V-] for resale, with the counterpart funds subsequently created being used to Nationallndicative Pmgramme 45.1 58 92' 95! finance drought-related projects. The balance was distributed free through EIB loans: own resources 10.5 31.5 i NGOs to those in particular need of risk capital 4.76 7.18 11.7 35 I assistance. In this instance some 300 r 000 people benefitted from free EC Structural Adjustment Facility 71 I food aid. I:_~~terest rate subsidies 1.5 8.6 ~ 1.2 MECU has recently been allocated [S~b-total 61.86 105.28 103.7 201 I towards support programmes for "·'=~""'~.-·'=='=-~='C-='====C= =.~""===o='=="====--="='~_="""C"~' -"~l Angolan and Zairean refugees inside I Sysmin 82.27 60 I Zambia. ! Food aid 4.78 21.69 5.2 39 The Community is currently underta­ Emergency/refugee aid 16.38 1.29 1.18 king studies regarding the potential 1.2 I for development of Zambia's tourism I and handicraft sectors. [~~~T~~I':~?l":o~~~~83~;~;~~~~~~l

~~;;o':;~TA~' - 718.82 J

1 Includes 11 MECU transferred under a special programme for poor and heavily indebted countries of Sub­ Saharan Africa. , Special Action Programmes to combat Hunger in the World.

44 ZIMBABWE Background eligible for support from the Cattle rearing is one of the country's Community's Structural Adjustment foremost economic activities The smallest of the large SADC coW1tries Facility. A total of 60 MECU (36 MECU (Zimbabwe is Africa's leading exporter (although still bigger than Germany), from the SAF supplemented by 24 of beef and veal to the Community). Zimbabwe is well endowed with natural MECU from Zimbabwe's Lome IV NIP) Zimbabwean livestock is, however, resources. Minerals are abundant and will support the Government's Trade under constant threat from the tsetse varied: some 40 metals and stones include Liberalisation Programme in the period fly, a carrier of trypanosomiasis, and gold, nickel, ferro-alloys, copper and gem­ up to mid-1996. Counterpart funds foot and mouth disease. Animal disea­ stones in significant quantities. There are generated will be directed towards the se control has been financed either large coal deposits, and the waters of the health and education sectors. from regional funds - this was the case Zambezi, dammed at Kariba, provide for the twice-yearly vaccination cam­ hydro-electric power. There is enough paign against foot and mouth disease arable land to produce substantial maize Rural development in the areas bordering Botswana (24.6 surpluses in normal years. MECU from the 5th, 6th and 7th EDF) In Matabeleland South, one of the poo­ - or, for the tsetse control operations in Partly because of its fortunate endow­ rest and driest parts of the country, an the Zambezi Valley area, from a mix of ment, the country possesses the most ambitious water supply and sanitation regional and national funds (31.6 diversified and industrialised economy programme, initiated under Lome II MECU). The latter have so far cleared in the SADC region; in 1992 manufactu­ and to be extended under Lome IV, is a substantial area of land of the tsetse ring contributed almost 25% of improving living standards for 70 000 fly, releasing it for productive use - for Zimbabwe's gross domestic product. people by providing 350 water points agriculture, grazing or wildlife, whi­ Manufactured goods represent over and the materials for some 6 000 pit chever is the most appropriate. The 30% of exports: a variety of commodi­ latrines to be built on a self-help basis. University of Zimbabwe's new school ties make up the rest - tobacco, gold, of veterinary science (see below) will ferro-alloys, copper, nickel, cotton, The severe 1991/1992 drought - which back up work in this field. maize, sugar, meat. Zimbabwe, which resulted in a drop of 40% in is involved in 30% of all intra-SADC Zimbabwe's agricultural output, with The problem of land use was tackled trade, counts the European CommW1ity maize production falling by as much under Lome III, through the 3 MECU as its main trading partner. as 85%, emphasised the urgent need Kanyati and Gatshe-Gatshe pilot pro­ for effective irrigation. A small-scale ject at the eastern end of Lake Kariba The CoW1try is not without its problems, irrigation programme was implemen­ in the Zambezi Valley. This is desi­ however. Dependence on Mozambican ted in 1989 with 14 MECU of gned to restrict agriculture and gra­ and South African routes to the sea is Community funds. zing to areas really suitable for those something of an Achilles' heel. The purposes, as distinct from areas to be development of the "communal lands", Lome II saw the first of a series of micro­ set aside for wildlife, which will be i.e. those outside the commercial farming project programmes under which the separated from the farmland by an EC­ areas, is proving a major task involving Community finances small-scale funded foot and mouth disease barrier difficult questions of land use as well as schemes, often local initiatives, in the fence. Although complex - numerous calling for much time and money. Its cli­ rural areas. These have proved so popu­ organisations are involved, to allocate mate is too dry for comfort - parts at least lar (see inset) that no fewer than 7 pro­ Land, demarcate village boundaries, of the CoW1try suffer drought three years grammes have been launched since 1982, drill boreholes, align and build the in every nine, on average. An imbalan­ absorbing over 30 MECU of Zimbabwe's fence, etc. - the success of this project ced economy prompted the government Lome II, III and IV allocations. has meant a further 4.6 MECU being to apply a Structural Adjustment Programme in 1991 (which was maintai­ ned despite the severe drought in 1992) ­ and while necessary, the restructuring l" measures have resulted in short term problems such as steep price rises, which have a harsh effect on the everyday lives of people.

To varying degrees Community assistance PROFILE has been applied to each of these problems, with especial emphasis, however, on the Date of independence: 18.4.1980 development of the rural areas, and more Capital: Harare recently, support for structural adjustment. Area: 390 759 km' Population: 10400000 million (est. 1992) Language: Shona, Ndebele, English Main exports: Tobacco, gold, Structural adjustment support ferro-alloys, nickel, cotton GNP/head: US$ 682 (1991) The decision by the Zimbabwean Currency: Zimbabwe dollar government to apply a 5-year 1ECD =9.32 Z$ Economic Structural Adjustment (April 1994) Programme in 1991 makes the country

45 The microprojects programme

Zimbabwe's microproject programme, funded under suc­ cessive Lome Conventions, is one of the largest and most successful in any ACP State. By mid-1990, so~e 650 micro­ projects involving about 2 800 separate operations or loca­ tions had been approved, for the benefit of approximately 700 000 rural families in Zimbabwe.

Under Lome II, three microproject programmes were approved, amounting to 6.6 MECU or 12% of the National Indicative Programme. Under Lome III, another three microproject programmes were funded with 16 MECU or 21 % of the Lome III National Indicative Programme, and Lome IV (first financial protocol) allocated 24 MECU. The Community's growing interest in microprojects is reflected in the increasing percentage of NIPs being devoted to them.

Agricultural production, social infrastructure and educa­ tion have been the main sectors of concentration within the programme from the beginning. The scope is wide indeed, varying from reconstruction of primary schools and health 1. Nyangombe bridge, Manicaland. The bridge was built with loca/labour; materials and supervision were paid for from EC microproject funds. (JR) clinics, to fisheries co-operatives on Lake Kariba, and other forms of employment-generating schemes in the rural 2. EC microproject funds have been used to purchase equipment for two areas. fishing co-operatives on Lake Kariba. (JR)

allocated from Lome IV funds, and the Education and training project area being extended to include the communal lands of the District of In addition to the innumerable prima­ Zimbabwe to create a regional centre Gmay. Similar projects over larger ry schools built in the rural areas for research and staff training. areas - up to 500 000 ha in all - 'are under the microproject programmes, being discussed. the EC allocated 12.5 MECU from the 6th EDF towards the building of The Mashonaland East Vegetable and Zimbabwe University's Veterinary Fruit Project Phase II (3.3 MECU, Faculty in Harare, and 9.1 MECU from Lome IV), which commenced in 1993, 7th EDF national and regional funds is designed to strengthen farmers' for technical assistance and training. marketing organisations and improve The Community has also supported the quality and quantity of vegetables the Technical Training Institute in and fruit being grown in the Gweru, which was upgraded with 6th Communal Areas for Harare markets. EDF funds. The Human Resources Development Programme (4.5 MECU) is funding scholarships and training awards.

Regional funds will develop the exis­ ting isotope laboratory at the Geology Department of the University of

46 Industry Tourism Other assistance The European Investment Bank has Tourism is gaining in importance every In response to the 1991/1992 drought, loaned from its own resources over year, and becoming one of the coun­ the EC supplied 80 000 tonnes of cereal 183 MECD in Zimbabwe since 1982: try's major foreign exchange earners - equivalent and 416 tonnes of seed as part of the special food aid program­ Year Recipient Amount in MEeD me, additional to the 2 685 tons of 1982 Wankie Power 20 various food commodities under an emergency decision within the 1983 and 1989 Zimbabwe Telecommunications 33 Commission's "normal" programme. 1987 and 1992 Zimbabwe Development Bank 14 The total value of these supplies 1987 Harare Water Supply 12 amounted to nearly 22 MECD. Due to 1987 Cold Storage Commission 14 the extremely serioJ,s losses in food 1989 Kadoma Paper Factory 12 production and other sectors, the Commission decided to concentrate its 1990, 1991, 1993 Zesa Power 63 efforts on allocating food for free dis­ 1992 Harare Sewerage 15 tribution.

In addition to its support for local ini­ In addition, contributions were made in 1992 alone Zimbabwe attracted 765 tiatives through the microprojects pro­ from EDF resources, in the form of inter­ 500 visitors from abroad. Recognising grammes, the Community has co­ est rate subsidies totalling 35.6 MECD, this sector's potential the government financed over 160 projects between and risk capital loans totalling approxi­ has launched - with 3.6 MECD of 1980-1992 implemented by NGOs, at a mately 12.6 MECD to the Zimbabwe Community support - the Zimbabwe total value of about 11 MECD, many of Development Bank, which on-lends to Tourist Development Programme. To them in rural areas. small and medium-sized firms in manu­ help manage and protect Zimbabwe's facturing, mining and tourism. wildlife, one of its principal tourist Various financing operations under attractions, the Community is suppor­ the 5th, 6th and 7th EDFs have enabled Trade ting the Department of National Parks the Community to co-operate with and Wildlife Management. A Com­ Zimbabwe to provide relief for munity-financed wildlife vet is current­ The Lome Conventions are helping Mozambican refugees displaced by the ly working on a programme to dehorn Zimbabwe's trade, directly and indi­ war and living in camps close to the rhinos in an attempt to save them from rectly, in a number of ways: Mozambican border. extinction. Training in Wildlife • the general trade provisions, which, Management has also been strengthe­ Finally, the Community's substantial for instance, allow Zimbabwe's cot­ ned through the Veterinary Wildlife contribution from regional funds to ton and tobacco producers to export Programme under Lome IV. the rehabilitation of the Beira Corridor to the EC free of quotas or duties; is, of course, of great importance for Regional funding has financed Zimbabwe, which can expect conside­ • the Sugar Protocol: the annual quota Zimbabwe's attendance at a number of rable savings in reduced transport of 30 225 tons is worth an estimated international tourism and travel fairs. costs from greater use of this route. 13 MECD a year; • the Beef Protocol: the levy charged by the government on 9 100 tons of Community aid (allocations in million ECD) exports (increased to 14 242 tons for 1993 and 1994) to Europe brought in almost 45 MECD in 1993; • local food aid purchases: between 1985 and 1988 the Community bought no less than 155 000 tons of Zimbabwean maize, for distribution in other countries. • trade promotion funds: the Export Development Programme (4.4 MECD, Lome III); support to Zimtrade, the national trade promotion board - with the objective of strengthening trade with other countries in the region 00.2 MECD, Lome IV NIP); and support for participation in trade fairs.

Zimbabwe benefitted during 1992 from STABEX transfers for reduced export earnings from coHee and cotton resulting from the severe drought, which amounted to 15 MECD. , Provisional total for 1992.

47 CO-OPERATION WITH OTHER COUNTRIES SOUTH AFRICA _ Background The Special Programme on Reorientation was complemented by a South Africa substantial increase in the Program­ The early nineties have seen profound me's budget and the opening of the political transition in South Africa. After Launched in 1985 as part of the European Commission's Programme some 40 years of apartheid rule, the first European Community's response to the Coordination Office in Pretoria in democratic, multi-racial elections in the intensification of official repression in March 1991- enabling the Commission country's history took place in April 1994. South Africa, the "Special Programme" to become more directly involved in aimed to assist the process of peaceful the identification, assessment and South Africa is widely perceived as a change by supporting non-racial activi­ monitoring of projects. highly developed country, which once ties - chiefly education and training, freed from the shackles of the unjust and humanitarian and social aid and legal wasteful system of apartheid and from assistance - through non-violent organi­ Education and training international sanctions, will become a sations in South Africa and Namibia. major economic power. With its sophis­ Racially separated education - and ticated manufacturing and mining acti­ In accordance with mutually agreed state spending on white pupils which vities, abundance of natural resources, criteria and guidelines, Community was five times higher per capita than and highly developed financial services funds were channelled exclusively on African pupils - has left a legacy of industry, the country has potential for through four non-racial, non-govern­ overcrowded, under-resourced black economic success. However only a mental organisations - namely the schools with under-qualified teachers, small minority have enjoyed a high stan­ South African Council of Churches inappropriate curricula and a highly dard of living, while the majority of the (SACC), the Southern African Catholic fractured administration. The deve­ population has suffered from chronic Bishops' Conference, the Kagiso 1 lopment of a single, effective and non­ underdevelopment. The new democra­ Trust, and Trade Unions - to projects racial education system is critical to tic government will inherit a structurally selected for assistance by a number of South Africa's future, both to rectify weak economy with an overdependence European NGOs with experience in the imbalances of the past and to on mineral exports, an industrial sector South Africa and trade union federa­ increase the country's human resource which is largely uncompetitive interna­ tions. Between 1986 and 1991 capacity for economic growth. tionally, an acute shortage of skilled Community funding totalling over 130 labour and burgeoning unemployment. MECU supported 402 projects. Education and training is receiving the Furthermore, the demands on the new largest share of the Special Programme government in redressing the injustices The unbanning of political opposition budget. A total of over 91 MECU since of the past and meeting the expectations groups and the repeal of apartheid 1991 has supported a number of edu­ of the newly enfranchised population legislation in the early 1990s prompted cational initiatives from pre-primary to will be immense. the EC to transform the "Special tertiary level, which cover: Programme" into a more coherent, sec­ In response to the political reforms, the tor-based development project. Focal • Policy research: financing of univer­ EU has begun a process of normalising areas of support are: education and sity research units and NGOs wor­ its relations with South Africa. The lif­ training; health; rural and agricultural king on key areas of education ­ ting of most trade sanctions allowing development; community develop­ such as administrative systems, edu­ renewed access to Europe's 347 million ment; good governance and democra­ cational management, curriculum consumers will generate considerable tisation; and job creation. development and teacher training. revenue in export earnings. Develop­ ment aid - principally in the areas of edu­ cation and training, health, rural and agricultural development, community development, good governance and job creation - will be provided in the context of the Union's "Special Programme on PROFILE South Africa". The largest program­ mable development initiative ever imple­ Capitals: Pretoria (administrative) mented by the EU anywhere in the Cape Town (parliamentary) world, the Special Programme has com­ Bloemfontein (judicial) mitted over 370 MECU to South Africa Area: 1221038 km' Population: 37700000 (1991 est.) since 1990 - making the Community's Languages: 11 official languages contribution to the country the biggest of including English, any single overseas aid donor. Afrikaans and many CAPE Furthermore, following the lifting of eco­ other African, Asian and nomic and diplomatic sanctions, an offi­ European languages cial Commission Delegation has been Main exports: Gold, base metals, established in South Africa. mineral products, platinum GNP/head: US$ 2560 (1991) Currency: Rand 1 Kagiso means "peace". The trust was presented with the International King Badouin Prize for 1ECU = 3.99 Rand (April 1994) development work in 1990.

48 • Institution and capacity building: the EU is funding targeted educatio­ nal. institutions - among others the South African Institute of Distance Education, the new Independent Examinations Board, the SACHED Trust, and training programmes to increase the management capacity of NGOs in educational and other fields to enable a more effective deli­ very of services. • Non-formal and adult education: ­ with emphasis on adult basic educa­ tion (8 MECD), maths and science tuition and teaching training. • Vocational training: aiming to equip black South Africans with skills which will help them to find employment. • Pre-school education: financial sup­ port to a number of NGOs which act EU-funded NCO water pump in Kangwane, Eastern Transvaal, installed during the drought of 1992. (IS) as service organisations assisting community-based pre-schools and creches as well as pre-school tea­ chers. • Tertiary education: during 1993 alone 20 MECU - representing the largest single project commitment of the Special Programme - financed bursaries for 7000 students at uni­ versity and technical college level. Special training programmes in areas such as Public and Development Administration have received 3.8 MECD.

Rural and agricultural development

The Union's involvement with rural and agricultural development has become more pronounced in recent years as the Special Programme has Creche being built by local people in Eastern Cape Province. (Sf) assumed a more developmental focus ­ accounting, after education, for the greatest total expenditure from the water and sanitation (notably through and development in the health sector ­ Programme budget (37.5 MECU since a 13.5 MECU "issue-led" programme), with the broad aim of supporting the deve­ 1991). agricultural development, income lopment of a unified national health sys­ generation projects, the encourage­ tem based on the principles of accessibility, One of the major concerns within rural ment of micro-enterprises and commu­ equality, affordability and efficiency. locations is the dependency culture ­ nity development initiatives (pre­ Attention is being focused towards: in which communities, pushed into school, literacy and health projects,...). overcrowded "homeland" areas where • Primary health care, including heal­ agricultural and economic activities Health th and nutrition clinics and local are severely limited, live almost entire­ community health workers; ly from remittances sent by relatives Most of South Africa's health problems can working in urban areas and from be attributed to socio-economic causes ­ • Industrial and occupational health savings and pensions. EU-supported lack of education, potable water and clean units - to monitor health and safety projects aim to help these communities living conditions - which are being addres­ in the workplace and assist indivi­ become productive, and to generally sed under other areas. An additional 9.7 dual workers and trade unions with improve their living conditions. MECU is, however, funding specific pro­ information and training on the Principal activities are the supply of jects, training programmes and research issue of occupational health;

49 Women's brick-making; an income generating project in Lenyenye, Northern Transvaal. (PM)

• AIDS prevention initiatives, within Trade unions have become an increa­ Good governance and the biggest nationwide programme singly influential force in South democratisation aimed at preventing the spread of African society over the last two the AIDS virus; decades - and the two largest federa­ A total of 17.8 MECU since 1991 has tions, COSATU and NACTU, repre­ • Research into health policy issues been given from the Special sent many millions of working people. Programme budget to initiatives and the development of new models 2.7 MECU of EU funds are providing for a unified health system. which take as their broad aim the pro­ technical assistance, organisational motion of the transition towards repre­ development and training pro­ sentational democracy in South Africa. Community development grammes to trade unions, and finan­ cing research groups and service orga­ The 5 million ECU Voter Education Overloaded by the movement of large nisations in the labour field - with the numbers of people to the cities ­ Programme was implemented by the aim of developing union capacity to Independent Forum for Electoral Durban, for example, is one of the fas­ represent their members in an efficient test growing cities in Africa - ~o~th Education (IFEE), a broad-based and and effective manner. representative NCO. The focus of the Africa's local government system IS In a programme was the media, with voter state of crisis. Conditions in urban Some 1.4 MECU have been committed townships and the settlements growing education material being spread to the development of micro-enter­ through newspapers, television - and, up around them are often appalling ­ prises within the black urban commu­ basic amenities are lacking, violence most importantly in South Africa, via nity, as an effort to reduce the extre­ radio. and conflict is common and housing is mely high levels of unemployment, inadequate. The greater part - 3 MECU increase economic growth, and give - of the Special Programme's budget for The EU provided 320 election obser­ black South Africans a bigger stake in vers to assist in overseeing South community development is financing the country's economy. Under a new Africa's first democratic elections. The representative local community struc­ legislative framework this area will be body concerned with this initiative ­ tures - known as "Civics" - and profes­ a priority for EU support. sional urban service organisations who the European Union Elections Unit ­ funded through the Special are developing strategies to address A pilot project which is supplying Programme, provided technical assis­ South Africa's urban problems. much needed employment and skills tance and support to the Independent training - and at the same time provi­ Electoral Commission (lEC). To help the numerous street childre~ ding low-cost housing for people - is living in South Africa's cities, the EU IS receiving 13.4 MECU from the Union. supporting two NCOs in their work The scale of violence in the country with 1 million ECU to provide shelter, remains a potent threat to the ongoing subsistence, social work services and political and democratisation process. educational opportunities to over 1 000 Projects which provide dispute resolu­ youths in four cities around the country. tion services to communities through-

50 An EU-supported pre-school in Natal. (TREE)

out the country are being supported nue to evolve according to the specific with ED funds - as is the National requirements of South Africa - and, as Sub-Committee on Socio-Economic before, NGOs will playa role in imple­ Reconstruction and Development, mentation. convened by the National Peace Accord, which aims to tackle some of The acceptance of South Africa into the underlying social and economic SADC is currently under discussion. causes of violence. The EC Observers There is already general agreement on Mission in South Africa (ECOMSA) the "regional dimension" of future monitors conflict and violence, and development assistance to South tries to maintain a high visibility at Africa. events - such as demonstrations ­ which have the potential to end in conflict.

Future relations between the EU, SADe and South Africa

In the wake of South Africa's first democratic, non-racial elections in 1994, the ED is embarking upon nego­ ciations with the South African government regarding future develop­ ment assistance measures aiming to address the long-term priority needs of the country. These measures will include economic and trade co-opera­ tion: among the options being conside­ red are assistance in the form of loans, capital investment, training for small and medium sized enterprises, joint ventures, trade fairs etc. Furthermore, an initiative to forge links with univer­ sities and other interest groups in the country is being discussed. The ongoing Special Programme will conti-

51 Principal abbreviations used in the Brochure

ACP: African, Caribbean and Pacific countries which have signed the Lome Convention EC: European Community ECU: European Currency Unit (the ED's accounting unit, worth approximately 1.15 US $ in April 1994) EDF: European Development Fund EIB: European Investment Bank EU: European Union GNP: Gross National Product MECU: Million ECU NGO: Non-governmental organisation (Save the Children Fund, Danchurchaid, etc.) NIP: National Indicative Programme PTA: Preferential Trade Area for East and Southern Africa SACU: Southern African Customs Union SADC: Southern African Development Community STABEX: Stabilisation of Export Earnings UNCTAD: United Nations Conference on Trade and Development 1}i(lj]rrillluWi? fu.l\!Jl@[fij[f\k\j)IlU(~iJil [lj]i@~ ~ ~~ fi'lKti)j]j]j] l\llu@ ~~Wtnfi(Q}lJR~ (O)~ u1lil@ ~\!I]If(iJ)~!lil (C@\1\Ji.lJ1i]j)fr..]i) fu:ro ~ lft9)l!kQ)~ ~~

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