September 02, 2010.
EC approves key concession for regional trading blocs
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The European Commission (EC) has agreed to harmonise programmes under its European Development Fund (EDF) with those of countries in regional trading blocs in order to make them more effective.

According to a new declaration between the EC and its development partners under the auspices of the inter-regional coordination committee (IRCC), new ventures under the EDF will have to support existing cooperation programmes that have direct impact on the ongoing integration processes.

“Regional organisations will intensify the development and harmonisation of their aid for trade strategies, ensure coherence and alignment at national and regional levels to cover the wider aid for trade agenda”, the new pact reads.

The IRCC brings together various regional economic communities including the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC), the Southern African Development Community (SADC), the Inter-Governmental Authority on Development (Igad), and the Indian Ocean Commission (IOC).

It is anticipated that the new deals will transform the implementation of projects and programmes under the EDF that have over the years been dogged by controversy over their effectiveness.

Kenya is a major beneficiary of the EDF, particularly with regards to the financing of infrastructure projects.

During the last meeting of the IRCC and the EC in Kenya earlier this year, the blame-game over the effectiveness of the donor support played out with officials from recipient nations warning that bureaucracy in the management of the fund risked stagnating the realisation of its goals.

Speaking during a session of the joint forum in Nairobi, Foreign Affairs Assistant Minister Richard Onyonka argued that EDF funding rules and procedures often change mysteriously, leaving the intended beneficiaries disadvantaged.

“This has led to the delay in preparation of project documents. I must also state that whereas the EDF rules stipulate strict time lines from the regional economic communities, the EC does not seem to comply with the same strict rules.”

Onyonka said it took a long time to get project approvals from the commission, thus impacting negatively on implementation schedules.

“At the end of the day we are evaluated poorly and told we have no capacity to absorb the funds when the fault actually lies elsewhere”, Onyonka said. The new arrangement is, however, expected to address most of the concerns with a focus on ensuring food security and taming the effects of the global financial crisis.

The partners agreed “[t]hat 10th EDF regional resources will also continue to support functional cooperation programmes that have direct and indirect impacts on the regional integration processes”. The EC has lined up about €23 billion for the 10th tranche of the EDF assistance to developing countries.

Dubbed the Lusaka Declaration, the document was signed by Mr Stefano Manservisi, Director General in charge of development at the European Commission, and Mr Mahboub Malim, Executive Secretary of IGAD and IRCC chairman.

By Odhiambo, Allan (Business Daily, Nairobi)

 
 

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