June 10, 2015: Seminar
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22nd ANNUAL GENERAL MEETING OF SHAREHOLDERS OF AFRICAN EXPORT-IMPORT BANK (AFREXIMBANK) LUSAKA, ZAMBIA JUNE 2015 PROGRAMME OF THE 21ST ADVISORY GROUP MEETING/SEMINARS JUNE 10, 2015: SEMINAR THEME: AFRICAN DIRECT INVESTMENT AS A SOURCE OF LONG TERM FINANCE FOR EXPORT DIVERSIFICATION AND DEVELOPMENT IN AFRICA 9:00 - 09:20 Welcome address and official opening speech By Dr. Hippolyte Fofack, Chief Economist and Director, Research and KM Department, Afreximbank 09:20-12:00 Plenary Session African Direct Investment as a Source of Long Term Finance for Export Diversification and Development in Africa The choice of the topic reflects the growing cost and scale of Lucas Paradox in Africa, whereby the massive outflows of resources from African countries is occurring at a time when financing gaps for infrastructure projects are extremely large and rising. This Seminar will provide the platform to initiate the debate on the need to develop mechanisms for the mobilization of domestic resources (including from private savings, pension funds, sovereign wealth funds, capital flight repatriation and foreign reserves) in support of investment and development of export and trade-related infrastructure in the continent. It will also share the experiences of Asian economies in mobilizing domestic resources for economic development. The Seminar will consist of a plenary session followed by a series of two parallel sessions. Chairperson: Mr. Denys Denya, Executive Vice President (FABS), Afreximbank 09:20-10:10 Presentations by: Prof. Léonce Ndikumana, Professor of Economics, Political Economy Research Institute (PERI) and Director of the Africa Policy Program, University of Massachusetts at Amherst (USA) 10:10-10:30 Q&A 10:30-10:50 Coffee/Tea Break 10:50-11:40 Presentations by: Prof. Justin Y. Lin, Professor of Economics, China Center for Economic Research (CCER) and National School of Development, Peking University, Beijing (China) 11:40 -12:00 Q&A 12:00 -14:00 Lunch Break 1 14:00-15:30 First Parallel Sessions 1. Pension Funds as a Source of Long-Term Finance for Export Diversification in Africa: Lessons of Experience of Successful Regions Pension funds have grown rapidly in recent years, in tandem with the growth of middle class and labour force in some African countries. Some examples include Nigeria, with Pension funds under management amounting to an estimated US$30 billion, and South Africa s over US$80 billion. It is estimated that pension funds average about US$3 to 5 billion in many other African countries. Reflecting that rising trend, many African policy makers and governments are increasingly advocating for the mobilization of these funds for long-term investment in infrastructure in support of export diversification and economic development. Drawing on lessons from other regions, this session will discuss the options for an effective deployment of these funds for economic development. It will also outline the modalities for deployment and the challenges associated with such an approach. Moderator: Dr. Simon Nguiamba, Senior Consultant, Afreximbank Panelist: Dr. Edward Odundo, Chief Executive Retirement Benefits Authority, Kenya Mrs. Chinelo Anohu-Amazu, Commission Secretary, National Pension Commission, Nigeria Mr. John Oliphant, Principal Executive Officer, Government Employees Pension Fund (GEPF) Mr. Chuka Eseka, Managing Director/CEO VETIVA Capital Management, Nigeria 2. Can Illicit Flows be a source of trade and development finance? As a result of globalization, international financial flows have grown significantly over the last few decade in tandem with the growth in trade and investment flows. These developments have also been accompanied by a rise in financial crimes including money laundering, bribery, corruption and fraud, and other criminal activities. These incidences, which arguably have higher costs in Africa, might erode the trade and economic gains that are expected to be derived from trade and from the deployment of institutional funds in Africa. This session will highlight the costs of financial crimes for economic development in Africa, discuss ways of averting these illicit financial flows and review how these resources could be used to finance investment in support of export diversification in the region. Moderator: Dr. Hippolyte Fofack, Chief Economist and Director, Research and KM Department, Afreximbank Panelists: Mrs. Razia Khan, Head of African Research, Standard Chartered Bank, United Kingdom Dr. George Elombi, Legal (Legal) and Executive Secretary, Afreximbank, Egypt Dr. Carlo Chalhoub, Chalhoub Consulting LLC. Mr. Tagbo Agbazue, Blandford Consulting, South Africa 15:30-16:00 Coffee/Tea Break 2 16:00-17:30 Second Parallel Sessions 1. Domestic resource mobilization in support of Investment in Africa’s Tourism Sector The Tourism and health sectors are considered some of the most important industries in many countries in Africa. It has been argued that these sectors could be used to enhance the diversification of exports away from commodities and ensure sustainable economic development in Africa. Drawing on Afreximbank Construction/Tourism-Linked Relay Facility (ConTour) program this session will discuss ways to deploy domestic resources to finance the continent’s tourism sector. It will also highlight policies and reforms that would be required in the sectors to achieve these goals. Moderator: H.E. Sylvia Masembo, Minister of Tourism and Arts, Zambia Panelist: Dr. Anwar Alhaq, Centenary Project Director, United Kingdom Mr. Yigo Thiam, Director General, Teyliom Group, Cote d’Ivoire Mr. Jacques Monnier, Managing Director, Hilton Cape Verde, Cape Verde Mr. Kome Cesse, Président Directeur Général, Societe Residence Kome, Mali Mr. Kofi Adomakoh, Director, Projects and Export Development Finance, Afreximbank 2. Domestic Resources Mobilization in Support of the Development of Africa’s Trade Facilitating Infrastructure According to the 2014 International Energy Agency (IEA) annual World Energy Outlook, Africa was the only region of the world with an increasing number of people without access to electricity. More than 60% (600 million people) of Africans were living without electricity. The huge energy gap continues to dampen the efforts towards economic transformation and human capital development in the continent. However, the financing needs of the power sector are significant; and in a resource constrain environment the call for expansion of investments in energy production also raises the question of what financing options are readily available for such investments. Within the context of this seminar, this session will discuss ways of closing the continent’s huge energy gap and how domestic resources could be mobilized to attain this goal. Moderator: H.E. Christopher Yaluma, Minister of Energy and Water Development, Zambia Panelists: Dr. Adedeji Adeleke, Pacific Energy Group, Nigeria Mr. Yusuf H. Abubakar (CON)—Chairman Kaduna Electricity Distribution Company, Nigeria Dr. Jamil Gwamna, Director, Northwest Power Ltd., Abuja, Nigeria Mr. Chuka Eseka, Managing Director/CEO VETIVA Capital Management, Nigeria Mr. Isaac Kirk Koffi, CEO Volta River Authority, Ghana End of Day 1 3 JUNE 11, 2015: ADVISORY GROUP MEETING Theme: “Contending with Headwinds: Impact of Recent Adverse Shocks on Africa’s Growth Prospects” 9:00-9:20 Welcome Address and Official Opening Speech By a Zambian Dignitary 9:20-9:50 Keynote Speech By Mr. Jean-Louis EKRA, President and Chairman of the Board, Afreximbank 10:00-11:30 Plenary Session “Contending with Headwinds: Impact of Recent Adverse Shocks on Africa’s Growth Prospects” As the African Export-Import Bank continues to contend with providing long-term solutions to Africa’s trade and economic development challenges, it must not lose sight of the shocks which are adversely impacting access to trade and project finance and as a consequent slowing down the growth of African economies. While some of these shocks are structural and reflect the deficit of economic diversification in a region, where despite the push for structural transformation exports continue to be largely driven by primary commodities and natural resources, others are more transitory and inherently associated with events such as climate variability, disease outbreak and political instability. This session will discuss the possible implications of both structural and transitory shocks on Africa’s trade and economic performance and highlight the most appropriate means to addressing such shocks, with emphasis on policies likely to put the continent on a sustainable growth and development path. Chairperson: H.E. Alexander Chikwanda, Minister of Finance, Zambia Presentation by: Prof. Joseph Stiglitz, Professor of Economics, Columbia University, New York 11:30-12:00 Q & A 12:00-13:30 Lunch Break 13:30-18:00 Panel Sessions 4 13:30-14:30 Panel Session One Risks to Growth: A Resurgence of Political Uncertainties and Insecurity in Africa This session will discuss the resurgence of political instability and insecurity in some parts of Africa, examine its implications for national security, investors (both national and international) sentiment and economic growth. The discussion will outline the experience of selected former Heads of State and propose appropriate reforms and policies to deal with/prevent insecurity and terrorist activities in ongoing efforts to create the right environment for economic growth and development. It is proposed that the following former Heads of State, Excellencies Mr. Olusegun Obasanjo, Mr. Joachim Chissano