Download The Courier AFRICA-CARIBBEAN-PACIFIC PDF

TitleThe Courier AFRICA-CARIBBEAN-PACIFIC
LanguageEnglish
File Size50.0 MB
Total Pages146
Table of Contents
                            Table of contents
MEETING POINT
	Edward V.K. Africa Region Jaycox, World Bank Vice-President for the
ACP-EEC
	Kampala Joint Assembly puts Uganda in the spotlight
COUNTRY REPORTS
	CAPE VERDE A Mudança -with the President, - Change
	An interview with the President, Antonio Mascarenhas Montero Monteiro
	An interview with Prime Minister Carlos Veiga
	Tourism - the engine of future growth
	' and not a drop to drink'
	The Cape Verdeans and America
	Cooperation with the EEC
	NAMIBIA: Meeting the challenge of nationhood
	Consolidating democracy
	An interview with Prime Minister Geingob
	An interview with EC Commission Vice-President Manuel Marin
	An interview with Dr Ben Amathila, Minister for Trade and Industry
	Agriculture and fisheries — managing the transition
	Mining — the economic foundation
	Education — bridging the divide
	Namibia and the European Community
EUROPE
	1990 EIB financing
DOSSIER: 'New' ACP export products
	'New' ACP export products
	Fruit and vegetables market in Europe : the case of France
	Finding new markets in the North
	Flowers and foliage: a blooming market
	Kenya - Broadening the range of agricultural exports
	Mauritius — Successful export diversification under adverse conditions
	Zimbabwe — The expansion of non-traditional exports:a general explanation
	Ghana — Diversifying the export base — problems and strategies
	The growth of non-traditional exports in the Caribbean
	Jamaica - Manufacturing: almost exclusively for export
	Jamaica's Preferential Trade Arrangements
	Promoting exports of ACP manufactures — The role of CDI
CLOSE-UP
	The Nakasero Blood Bank
DE Y'ELOPING WORLD
	Bissap — health tea and natural colouring
CULTURE AND THE ARTS
	'SARAFINA' — South African musical comedy comes to Brussels
	FESPACO — a veritable institution
CTA-BULLETIN
	Livestock problems of African origin in the Caribbean
	BOOKS
                        
Document Text Contents
Page 1

Bruxelles Χ ISSN 1013-7335

he Courier
g AFRICA-CARIBBEAN-PACIFIC - EUROPEAN COMMUNITY

Published every two months N° 127-MAY-JUNE 1991

Page 2

THE EUROPEAN
COMMUNITY THE 69 ACP STATES

BELGIUM
DENMARK
FRANCE
GERMANY

(Federal Rep.)
GREECE
IRELAND
ITALY
LUXEMBOURG
NETHERLANDS
PORTUGAL
SPAIN
UNITED KINGDOM

General Secretariat
of the ACP Group

of States

Avenue Georges Henri, 451
1200 Brussels

Belgium
T e l . : 733 96 00

ANGOLA
ANTIGUA & BARBUDA
BAHAMAS
BARBADOS
BELIZE
BENIN
BOTSWANA
BURKINA FASO
BURUNDI
CAMEROON
CAPE VERDE
CENTRAL AFRICAN
REPUBLIC

CHAD
COMOROS
CONGO
COTE D'IVOIRE
DJIBOUTI
DOMINICA
DOMINICAN REPUBLIC
EQUATORIAL GUINEA
ETHIOPIA
FIJI
GABON

GAMBIA
GHANA
GRENADA
GUINEA
GUINEA BISSAU
GUYANA
HAITI
JAMAICA
KENYA
KIRIBATI
LESOTHO
LIBERIA
MADAGASCAR
MALAWI
MALI
MAURITANIA
MAURITIUS
MOZAMBIQUE
NAMIBIA
NIGER
NIGERIA
PAPUA NEW GUINEA
RWANDA
ST. KITTS AND NEVIS

ST. LUCIA
ST. VINCENT AND
THE GRENADINES

SAO TOME & PRINCIPE
SENEGAL
SEYCHELLES
SIERRA LEONE
SOLOMON ISLANDS
SOMALIA
SUDAN
SURINAME
SWAZILAND
TANZANIA
TOGO
TONGA
TRINIDAD & TOBAGO
TUVALU
UGANDA
WESTERN SAMOA
VANUATU
ZAIRE
ZAMBIA
ZIMBABWE

ACP COUNTRIES
CONVENTION

FRANCE

(Territorial collectivities)
Mayotte
St Pierre and Miquelon

(Overseas territories)
New Caledonia and dependencies
French Polynesia
French Southern and Antarctic Territories
Wallis and Futuna Islands

NETHERLANDS
(Overseas countries)
Netherlands Antilles
(Bonaire, Curaçao, St Martin,
Saba, St Eustache)
Aruba

DENMARK

(Country having special relations with Denmark)
Greenland

UNITED KINGDOM

(Overseas countries and territories)
Anguilla
British Antarctic Territory
British Indian Ocean Territory
British Virgin Islands
Cayman Islands
Falkland Islands
Southern Sandwich Islands and
dependencies
Montserrat
Pitcairn Island
St Helena and dependencies
Turks and Caicos Islands

This list does not prejudice the status of these countries and territories now or in the future.
The Courier uses maps from a variety of sources. Their use does not imply recognition of any particular boundaries nor prejudice the status of any state or
territory.

Cover page: The Courier presents in this issue, its first Country Report on the ACP Group's newest member
— Namibia. Featured here are Vice-President Manuel Marin and the Namibian Prime Minister, Hage

Geingob (Photo EC)

Page 73

DOSSIER
available for horticulture exports with
few clearly identifiable imported inputs.

Two particular aspects of the fiscal
regime appear to have caused problems.
These concern taxes on aviation fuel and
duties on imported packaging materials.
The major constraint on further expan­
sion of exports at the present time
appears to be air freight capacity. Unlike
Ethiopia, there is no shortage of south­
bound flights to bring freight costs down
to an acceptable level. But there is not
always sufficient space on scheduled
airlines to absorb supply and there
appear to be constraints in hiring char­
ters. A widespread view, expressed by
both private sector and Government
sources during the fieldwork for this
project, is that aviation fuel prices in

shelves without further repackaging.
These have two advantages : the level of
value added in Kenya is increased, and
the journey from farm to shop is reduced
by one day — increasing the freshness of
the product on the shelves and, hence, its
price. Government policy is to provide
trade protection for the domestic packag­
ing industry. Packaging materials for
bulk exports are supplied by a single
company, which does not produce the
type of material required for pre-packs.
At present, therefore, the packs have to
be imported, and face an import duty of
45% plus a sales tax of 17% (even though
they are re-exported immediately). This
reduces the financial competitiveness of
the resulting export.

Such duties are not the only taxes
applied to export production. The local

Kenyan mangoes

Kenya have been higher than in neigh­
bouring countries as a result of Govern­
ment tax policies. It is alleged that this has
made it difficult to attract charter flights.
The Government recently reduced the tax
on aviation fuel considerably; it will be
important to monitor the effect on air
transport availability.

Another constraining factor, which
appears likely to become increasingly
important, is the absence of adequate
packaging materials. In an effort to
increase the unit value of exports, some
exporters are attempting to move into the
export of pre-packed vegetables which
are suitable to be placed on supermarket

authorities in the main horticultural
growing areas (Machakos, Meru and
Malindi) impose a production cess. Also
a 15% cess is levied on imported hides
and skins required for leather exports.
(c) Institutional support

The horticultural industry is super­
vised by the Horticultural Crops De­
velopment Authority (HCDA), set up in
1968. This registers all exporters and
provides technical and marketing inform­
ation to both exporters and producers,
for which it levies a charge of 10 cents/kg.
In conjunction with the Ministry of
Agriculture and Livestock Development,
the HCDA's technical services depart­

ment provides production advice to
farmers. It also has a marketing depart­
ment which undertakes limited market­
ing for very small farmers and provides
market intelligence to the industry as a
whole. As part of this, it is a member of
COLEACP, an organisation set up in
1973 under the aegis of the EC Commis­
sion, which offers a specialist profes­
sional framework for cooperation 'be­
tween ACP exporters and European
importers of tropical fruits, vegetables,
flowers and spices. HCDA is also re­
sponsible, in collaboration with the
Central Bank of Kenya, for monitoring
prices and foreign exchange remittances
into Kenya.

However, the horticulture trade ap­
pears to be a highly individualistic affair,
with exporters undertaking much of their
own marketing. Partly because of this, a
frequently voiced complaint concerns
problems in ensuring payment by im­
porters. At present there appears to be no
system for obtaining references on poten­
tial importers or of checking the prices
they actually receive on goods sent on
commission (i.e. to be sold at the best
price obtainable).

Pre-export inspection services are pro­
vided by the Ministry of Agriculture. This
operates a unit at Nairobi Airport which
provides phytosanitary certificates and
other documentation required to gain
entry to the EC.

There is a Kenya External Trade
Organisation (KETO) within the Min­
istry of Commerce and Industry. This
provides general government support for
horticultural, as for other, exports. To­
gether with HCDA it participates in trade
fairs, giving special emphasis to horticul­
tural products, and it has conducted
contact promotion programmes and sent
trade missions abroad for horticultural
marketing. Although most contacts are
made by the exporters themselves, the
KETO claims some credit for the de­
velopment of markets for some horticul­
tural products, such as mushrooms, and
for the development of handicraft pro­
duct markets.

The government is considering es­
tablishing an export processing zone,
with the idea of developing clothing
exports particularly in mind. However,
studies are still being undertaken on the
practical implementation of this. There
already exists provision for manufactur­
ing under bond within a factory, although
this does not seem to have figured in
exports to the EC.

The Courier no. 127 Mav-June 1991 71

Page 74

DOSSIER
There also exists a National Chamber

of Commerce which has some interest in
promoting non-traditional exports. It
recently sponsored a mission of horticul­
tural exporters to the main EC markets.

The European Community
The Lomé Convention trade pre­

ferences of most relevance given Kenya's
actual performance in diversification are
the, often tightly delineated, concessions
for products falling under the Common
Agricultural Policy (CAP). The CAP
regime for horticultural products is com­
plex. The basic rule is that the system for
supporting European farmers is relatively
lightly structured, without the mandatory
intervention buying and variable import
levies characterising the cereals and meat
regimes. For the fresh products of most
interest to Kenya, the normal regime
applying to imports is that the EC levies
an ad valorem tariffand also establishes a
'reference price'. Countries exporting to
the EC are obliged to sell their goods at a
'minimum import price' equal to the
reference price plus the tariffs. Failure to
comply results in a countervailing levy
being imposed to bring the cost of
imports up to the required level. Hence, it
is possible to export fresh fruit and
vegetables to the EC, but only if the
landed price exceeds the level at which
domestic produce is sold.

For the ACP, and some other third
party suppliers, concessions are made on
CAP products. The concessions take the
form of full or partial rebates of the ad
valorem tariff. But there are two provisos.
The first is that ACP suppliers must still
respect minimum import prices. In other
words, they are unable to undercut
domestic European produce but they
retain a larger share of the proceeds from
any exports they do make. This helps
them, of course, to compete with other
third party suppliers that have to pay the
full tariff. The second proviso is that these
concessions are limited to a fixed quota
for some products. These quotas may be
very small, e.g. the quota in Lomé IV for
small winter cucumber is 100 tonnes for
the whole of the ACP group!

In addition, the Lomé Convention
provides for duty-free access to the EC
market for manufactured goods that
fulfil the rules of origin. Although Kenya
has not taken great advantage of these
concessions in the past, there is a poss­
ibility that it might do so in the future.

Kenyan exports have not been subject
to any formal restrictions (other than

those specified in Lomé). But surveillance
and 'voluntary export restraints' (VERs)
on cut flowers have been proposed
(although not implemented) at various
times by the EC Commission, and by the
Netherlands and German governments.

Horticulture
Export performance

Kenya has exported horticultural
goods to the EC since before the first
Lomé Convention. However, the trade
was at a fairly modest level until the mid-
L980s. The bigjump in exports took place
in 1984, when the volume increased more
than threefold over the previous year; it
was from 1984 that the government
began to devalue the real effective ex­
change rate.

Since then there has been substantial
growth in the volume, value and unit
value of exports. There was an average
annual growth of 10% in export volume
over the five years to 1988. In value terms,
exports grew in current prices from below
K £10 million in 1979 to K £95 million by
1988. The unit value of Kenya's horticul­
tural exports has grown more rapidly
than the average for all exports. Between
1984 and 1988 it rose in current terms by
an annual average of 4.6%; by contrast,
the price index of all exports rose by an
annual average of only 0.7%.

As a result of hpth the increase in
volume and the faster-than-average
growth of unit value, horticulture's share
of total merchandise exports has in­
creased steadily. From only 3% in 1983, it
had reached 10% of the total by 1987, a
position which it maintained in 1988.
Coffee's share in 1988, by contrast, stood
at 27%, with that of tea at 20%.
Production characteristics

There are no detailed statistics on the
horticulture sub-sector. For example,
there are no official data on the number
of people employed in horticulture pro­
duction, but it has been variously es­
timated at tens of thousands. Flower
cultivation alone is said to employ about
7000 people. One reason for the lack of
data is that the growth of horticulture
appears to have passed more or less
unnoticed by the Government. The
annual Statistical Abstract, for example,
does not even identify horticulture as a
separate agricultural sub-sector, let alone
as a major export ! This may account for
the fact that the sector has benefited from
no special Government support or sub­
sidies.

Over one hundred exporters are regist­
ered with the HCDA, but only 40 to 50
currently are active. A typical exporter
may deal with 50 to 60 farmers. The
dividing line between farmers and ex­
porters is somewhat blurred : the largest
producers undertake their own exports,
and many exporters also have some
production capacity.

The farmers range from smallholders
on half an acre to large farms with 400 or
more acres devoted to horticulture. The
relative shares of total production accru­
ing to large farmers and smallholders is
unknown. However, it is understood that
large-scale farms in the area around
Naivasha dominate the cut flowers
market and that large farms (and the
larger smallholders — with holdings of
over five acres) are also particularly
important for high value vegetables
where quality control is especially strin­
gent. As Kenya changes its product mix
to increase the share of high value items,
it will present a challenge to smallholders
to maintain their share of the industry.

In addition to air space and packaging,
noted above, another constraining factor
is the absence of adequate common-user
cold storage facilities at Nairobi airport.
Some of the large producing and export­
ing companies have their own cold
storage facilities, but the facilities avail­
able to small exporters are said to be
inadequate. This has two adverse effects.
First, it limits the possibility of 'pre-
cooling' produce, a process that is
favoured by importers in the EC.

Second, it makes the small exporters
very vulnerable if cargo space is not
available as planned. If, for any reason,
cargo space fails to be made available
after the produce has reached the airport,
the exporter either faces the complete loss
of his consignment or must sell at a
knockdown price to an exporter with
surplus space. Plans are afoot to con­
struct additional storage, but they are still
at a preliminary stage.

Canned Pineapple
Another significant and relatively

'new' export is canned pineapple. There is
one firm in Kenya that is responsible for
the bulk of canned pineapple exports. It is
a subsidiary of Del Monte, the US-based
multinational. Unfortunately, the firm
declined to cooperate in any way with this
study and so it has not been possible to
analyse the sub-sector in detail. However,
it is clear that canned pineapple exports

72

Page 145

BOOKS
the imaginary world and the obligations
trigger fear because the community be­
longs both to the real world and to
imaginary worlds.

So the uncertain universe of the Af­
rican community makes it impossible for
the individual to perceive the consequen­
ces of his individual plans and com­
munity calculations must come before
economic calculations.
Effect of a society of transfers on develop­
ment

Mr Mahieu maintains that, so far, 'the
importance of the transfers set up by the
African community system has enabled
the continent to show remarkable resist­
ance to natural and economic disaster.
However, in the present economic crisis,
too many demands are being made on
this transfer system and it could well lead
to a general crisis of the system of
solidarity, with greater poverty in its
wake' (p 33).

Although the system of rights and
obligations cushions the social effects of
growth, it amplifies the social con­
sequences of prolonged deflation. It is the
cement of African society, ensuring a
minimum amount of security by the
redistribution of wealth, although it may
paralyse entrepreneurial initiative.

The interaction of community and
utilitarian values so typical of Africa's
economic system makes the African
economic operator very resistant to the
ups and downs of the economy. But the
system of solidarity may collapse if there
is a prolonged economic crisis which
takes in both rural and urban sectors.
More and more people will make de­
mands on fewer and fewer potential
donors and the crisis will emerge as a
growing confrontation between rich and
poor, with class consciousness emerging
in hitherto socially regulated societies.

So François Régis Mahieu is at vari­
ance with Serge Latouche in his belief
that the African cultural identity is ever-
present and so strong that it constantly
subverts the modern forms of develop­
ment. But Serge Latouche is not as
pessimistic as one might think.
Westernisation is active and deculturation
problematical

He maintains that the economy may
break through or even catch up in a given
country. This means active westernis­
ation, essential to development, should
make it possible to build a framework of
values in which techniques come into

their own and to overcome the absence of
any auto-dynamism.

A technical society is not a machine
which only has to be taken out of its box
and plugged in, the author maintains.
People, their beliefs, their traditions and
their skills are extra parts which ensure
that the machine ticks over properly and
they are not delivered with the machine.
It all has to come together and any
breakdown in the circuit will create
problems.

If the crisis of westernisation is to be
stopped, then the social destruction that
could well prevent the machine from
working properly has to cease too.

François Régis Mahieu says, however,
that 'African cadres are often the first to
turn aside from it, (p. 154). And Serge
Latouche maintains that 'solving the
problems Europe took to Africa, econ­
omic development included, is only the
affair of the whites...' (p. 114).
Africanist knowledge and external depen­
dence

Jean Copans believes that the Africa of
the Africanists, be they white or black,
'has very little to do with the Africa of the
African peoples' (p. 11). Yet the incom­
prehension and misunderstanding of
what societies, States and cultures are can

only help maintain external dependence
and internal nationalist demagoguery.
Conclusions

These three works show that it is
possible at least to try and explain the
problems of African society (and par­
ticularly its economic development) in
terms of African culture, beyond the
standard models of third worldism and
neo-classical liberalism.

The failure of African development is
more than the determinism of ethnocen­
tric deculturation. The African cultural
model is a resistant one. Should — and
how — can it adapt to the imagery of the
social machinery of the West?

Does African modernity necessarily
mean individualism or does it mean
respect for the community? This is
particularly important given that redistri­
bution by the community generates
rigidity that can be fatal to African
development and that the present crisis
could well lead to a general crisis in the
system of solidarity.

These are just some of the questions
raised by these three books. The answers
are for the Africans to find, first and
foremost, for, fundamentally, Africa has
to see itself other than in categories other
people have established.O

Dominique DAVID

Address :
Correspondence should be sent to:

' T h e A C P - E E C C o u r i e r '
B e r l a y m o n t 5 / 2
C o m m i s s i o n o f t h e E u r o p e a n C o m m u n i t i e s
2 0 0 , rue d e la Loi
1 0 4 9 B r u s s e l s Visitors are always welcome to call at our office
B e l g i u m (Monday to Friday, from 9 a.m. to 5 p.m.)

THE COURIER
AFRICA - CARIBBEAN - PACIFIC

- EUROPEAN COMMUNITY

PUBLISHER
Dieter Frisch

Commission
of the European Communities

200, rue de la Loi
1049 - BRUSSELS

(Belgium)
Tel. 235-11-11 (switchboard)
Telex COMEURBRU 21877

EDITOR
Mr Dominique David

DEPUTY EDITOR
Lucien Pagni

ASSISTANT EDITORS
Roger De Backer
Amadou Traoré

Augustine Oyowe
Simon Horner

SECRETARIAT:
Viviane Jacquet (235-27-19)

Susan Carlier (235-72-30)

CIRCULATION
Margriet Mahy-van der Werf (235-76-39)

Back cover: Out-of-season vegetables packaged for export at the Centre for Horticultural Development in Senegal (Source FAO)

Page 146

«g t í

<%\\&L

ςι nr

Publisher Dieter Frisch-CEC 200, rue de la Loi B-1049 Brussels — Printed in Belgium

Similer Documents