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By Dr Hanan Morsy, Director, Macroeconomics Policy, Forecasting and Research Department, African Development Bank Group. 



Despite remarkable progress made on women’s participation in policymaking, Africa is still far from achieving the 50 percent gender parity target set by the UN’s Sustainable Development Goals (SDGs).



Between
1995 and 2018, the proportion of women in African parliaments almost tripled
from 8% to 23% but remains insufficient. Out of 11,037 African parliamentarians
as of October 2018, only 2,591 were women and out of 1,348 ministers on the
continent only 302, or 22%, were women<a href="#_ftn1">[1]</a>. 



The
challenges in achieving gender equality and women’s empowerment, will be the
focus of the Global Gender Summit to be held in Kigali, Rwanda from the 25-27
November. The Summit, hosted by the African Development Bank in partnership
with the Government of Rwanda, will spotlight innovative financing, fostering
an enabling environment and ensuring women’s participation and voices.



Mainstreaming
gender in policymaking in Africa is crucial for at least three main reasons.
First, women are the main driving labor force in most African countries, making
a vital contribution to the economy. Empirical studies, including the African
Development Bank’s own research<a href="#_ftn2">[2]</a>,
have found that if women had equal access to productive resources such as land,
modern inputs, technology, or financial services, then the gender productivity
gap in agriculture of 20%-35% would almost disappear. 



This
suggests that African countries could significantly increase their production
by just closing the gender gap across economic sectors, particularly in agriculture.
Second, increasing women’s participation in policymaking has been found to lead
to higher GDP growth through increases in higher-skilled women in the labor
force and women’s employment in high-productivity sectors<a href="#_ftn3">[3]</a>. Africa
is therefore losing socio-economic opportunities by not doing enough to
encourage the voices of women. The continent cannot afford to wait any longer
to empower women. 



Gender
empowerment in policymaking can also boost women’s role as business leaders. Although
Africa boasts the world’s highest rate of women entrepreneurs (at 27%) and is the
only continent where more women than men choose to become entrepreneurs, most
female-led enterprises are small businesses, in the informal sector with little
growth prospects. 



Access
to finance is a key constraint and the Bank’s research found that women
entrepreneurs in Africa are more likely to self-select out of the credit market
due to perceived low creditworthiness compared to men<a href="#_ftn4">[4]</a>. 



By
influencing policymaking in their countries, women can help lift barriers to their
participation in labor markets which at 61% remains lower than men at 67%. 



And
to ensure that no voice remains unheard, much work needs to be done. Improving
women’s access to education is key. Better educated women are more likely to
influence policy. Despite commendable efforts, the gender gap in educational
attainment persists in most African countries, creating barriers to women’s
advancement.



For
instance, the average number of schooling years between 2010-2017 was 4.33 for
females but 5.6 for males in Africa. In many countries, the educational
disadvantage of women starts at primary school and by the time girls become
adolescents the educational gap has significantly widened.



One
solution to explore is to ensure universal access to education to all girls and
promote education parity at primary, secondary and tertiary levels. Several findings
indicate that countries with greater education parity have realized higher
economic growth<a href="#_ftn5">[5]</a>.
In addition to bringing girls into school, having them complete their grades is
also important, as the drop-out rate of girls in primary education is still very
high in Africa, with a third of girls dropping out between 2010-2017. 



Second,
government efforts to support the development of women’s political competency is
particularly important in raising their participation in policymaking. Mentoring
and training programs can equip women candidates with the necessary skills to successfully
run for political office. For elected women, leadership trainings would
strengthen their influence in policymaking and advocacy. 



Third,
scaling up of programs and initiatives or implementation of laws aimed at fostering
an enabling political environment for women will ensure that women’s voices are
heard. Although many African countries have made legal provisions guaranteeing
equal rights of men and women in policymaking and have even established gender
parity in their electoral systems, only a handful have implemented these laws.



Only
Rwanda, Ethiopia and Seychelles have achieved or are close to achieving gender
parity in their ministerial cabinets. Rwanda is the only country in Africa where
women outnumber men in the parliament (61.3% as of January 1, 2019). Other
countries such as Namibia (46.2%), South Africa (42.7%), or Senegal (41.8%) have
set examples for other nations to follow in mainstreaming gender in policymaking.




In
its own operations, the African Development Bank in 2018 launched a Gender
Marker System to track gender mainstreaming in its work. It has also developed
an Africa Gender Index in partnership with the United Nations Economic
Commission for Africa to measure gender parity across economic, social, and political
representation dimensions. 



With
its Affirmative Finance Action for Women in Africa (AFAWA) initiative, the Bank
will extend women’s access to finance through commercial banks and financial
intermediaries, provide technical assistance to women, and engage policy and
regulatory bodies to create an enabling environment for women.



With initiatives such as AFAWA, and the Global Gender Summit in Kigali, the African Development Bank is advancing the course of women and ensuring that no voice is unheard.

Op-Ed: Mainstreaming gender in African policy making: Ensuring no voice is unheard

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Last week saw the Kigali Global Dialogue where thought leaders came together to discuss global contemporary issues of development and growth. The talks centered around human policy, technological transformation of society, public health and climate change and sustainability. One of the key speakers on these topics, Joyce Msuya joins CNBC Africa for more.

Joyce Msuya on achieving sustainable development in East Africa

&nbsp;
By Jasson Urbach
“It’s déjà vu all over again,” as the late Yogi Berra might have said had he read the latest iteration of the national health insurance (NHI) policy paper. We are no closer to understanding critical details, such as how much the scheme will cost and where the money to pay for it will come from.
The costing figures presented in the latest iteration are copied verbatim (amongst other sections) from the 2015 White Paper. Despite economic alarm bells ringing throughout the economy, the government is going ahead with the scheme in an increasingly authoritarian attempt to limit our civil liberties and freedoms.
<h4>Those who can pay for their own healthcare should be allowed to do so</h4>
As I have argued previously and will continue to do so, in these dire financial circumstances, it is neither necessary nor appropriate for the government to provide “free healthcare for all”. Those who can pay for their own healthcare and, generally, do not rely on government provided service, must be allowed to continue to do so. Government’s role should be to fund the healthcare needs of only the poorest and most vulnerable members of society.
The proposed mandatory payments into the central NHI fund will crowd out private insurance. Cash-strapped individuals will no longer be able to afford voluntary private-insurance premiums when burdened with a mandatory NHI payment as well. Those unable to pay both premiums will be forced to burden the already overstretched public health service.
While the rich can hop on a plane and seek medical care anywhere they please, the poor and middle-class will be unable to escape the vagaries of the government-controlled system.
<h4>NHI will increase inequalities in healthcare</h4>
NHI will perversely increase the inequalities in healthcare, concentrating power in the hands of state officials and leaving no room for private medical schemes. Taxpayers could well fund healthcare for those who cannot afford it, but why interfere with the arrangements of those who can afford to fund their own healthcare?
Whether directly or indirectly, the government would control the availability, financing, and delivery of healthcare — the choice would no longer be ours to make. Compulsory NHI funding would serve government’s interests, not our own.
South African labour should be fuming since NHI necessitates an increase in the taxes levied on an already overtaxed population. The proposed payroll tax is a tax on labour. Workers will bear the cost, either through lower pay or job losses. This will leave us with less money for savings and investment, and thus the NHI will usher in even slower economic growth and less job creation, again hurting the poor. South Africa’s currently 9.3 million unemployed will have no hope of entering the job market.
<h4>No concern about the quality or price of healthcare</h4>
South Africans need to exercise real personal choice in choosing private insurance arrangements that best meet their individual needs – not a one-size-fits-all policy that will be determined and dictated by a nameless and faceless bureaucrat sitting in Pretoria.
Increased competition would force the private medical insurance sector and private providers of healthcare to compete directly for money by providing value and choice. The government has no such incentive – clearly, it is not concerned about the price or quality of healthcare. Personal ownership of healthcare would help control costs and guarantee better quality, and eliminate the need to depend on government.
South Africans fought hard for their freedoms from an overbearing state. Allowing the government to take over that most personal aspect of our lives &#8211; our healthcare &#8211; would undo these hard-won gains.
History has demonstrated that once a law is enacted, it is very difficult to repeal. The public sector is in shambles. We should not be trying to expand and emulate the failed policies that led to this situation. The government should be concentrating scarce taxpayer resources on the poor and destitute, and allowing the private healthcare sector to grow, innovate and expand. Such a healthcare model would not only be good for South Africa’s financial health, but would lead to better health outcomes for the poor, which is surely what we all want.
&nbsp;
Jasson Urbach is Free Market Foundation Director &amp; Head of the FMF’s Health Policy Unit

Op-Ed: S.A’s NHI – Is it necessary or appropriate for government to provide “free healthcare for all”?

South Africa&#8217;s government is maintaining its fiscal policy framework and is taking &#8220;systematic interventions&#8221; to address the country&#8217;s economic challenges in the wake of damaging ratings downgrades, the cabinet said on Thursday.
&#8220;Government remains on track in maintaining its fiscal framework, ensuring policy certainty, and working to ensure inclusive growth and economic transformation,&#8221; the cabinet said in a statement after it had a meeting on Wednesday.
(Reporting by Tanisha Heiberg; Editing by Ed Stoddard)
&nbsp;

South Africa’s fiscal policy framework on track: cabinet

Mfuneko Toyan | JOHANNESBURG
South Africa&#8217;s central bank governor Lesetja Kganyago said on Tuesday that raising lending rates would do little to attract new investments to the country after its credit rating was downgraded to junk.
Kganyago, due to announce his first rates decision since S&amp;P Global Ratings and Fitch cut South Africa&#8217;s credit score to sub-investment grade in April, told online publication The Conversation that the Reserve Bank (SARB) would stick to targeting inflation of 3 to 6 percent.
<blockquote>&#8220;Raising the repo rate by itself would do little to attract new investments,&#8221; Kganyago was quoted as saying.
&#8220;But failure to deal with the inflationary consequences of currency depreciation, which pushes up import prices and potentially all prices, would also push up both short and long term borrowing costs,&#8221; Kganyago said.</blockquote>
The currency plunged more than 12 percent in the wake of President Jacob Zuma&#8217;s decision in late March to recall Pravin Gordhan from meetings with investors overseas and then fire him as finance minister a week later.
Price growth in March slowed to 6.1 percent. Statistics South Africa publishes April CPI on May 24, with a Reuters poll forecasting inflation at 5.6 percent.
In March the bank kept rates unchanged for an eighth straight meeting, saying it had reached the end of its tightening cycle, which has seen it raise rates a total of 200 basis points (bps) since 2014.
But following the cabinet reshuffle and downgrades Kganyago said pressure on the rand, and accelerated inflation as inventors sold off local assets, could force the regulator to put off cutting rates.
The bank&#8217;s policy committee meets for three days starting next Monday and is due to announce its rates decision on Thursday.
Forward markets rates on Tuesday were pricing in a zero percent chance of a hike next week and a 9 percent probability of a 25 basis point cut. For meetings in July and September, markets see a 21 percent and 50 percent probability of a 25 bps hike.
Michelle Wohlberg, fixed income specialist at Rand Merchant Bank, said a rate move in either direction would be &#8220;pulling the trigger too quickly&#8221;, with the bank likely to consider cutting once South Africa&#8217;s credit rating path was clear.
&#8220;They&#8217;re waiting for things to settle down and for Moody&#8217;s to come out with their rating report. And once CPI prints in-line they&#8217;ll start thinking about cutting,&#8221; Wohlberg said.
Moody&#8217;s, which put the country on review for a downgrade after the cabinet reshuffle, is due to meet local investors and policy makers this month.
(Reporting by Mfuneko Toyana; Editing by Mark Trevelyan)
&nbsp;

S.Africa’s central bank governor says raising rates won’t lure investment

Wendell Roelf | CAPE TOWN
South Africa needs to provide policy clarity to boost investor confidence, after a cabinet reshuffle and a pledge to introduce &#8220;radical economic transformation&#8221;, Finance Minister Malusi Gigaba said on Tuesday.
Gigaba&#8217;s comments echo those of President Jacob Zuma about redistributing wealth, which remains largely in the hands of the white minority more than two decades after apartheid ended, raising uncertainty about South Africa&#8217;s policy direction.
&#8220;We know that we need to continue acting conscientiously to do what we have to do, including providing policy clarity on a number of areas &#8230; to boost business and investor confidence,&#8221; Gigaba told parliament&#8217;s finance committee.
Both S&amp;P Global Ratings and Fitch downgraded South Africa&#8217;s credit rating to below investment grade last month, citing likely changes in economic policy after Finance Minister Pravin Gordhan was fired, shaking investor confidence.
Lower ratings typically make it more expensive to borrow, particularly when they fall below investment grade, and risk deterring the foreign investors on whom South Africa relies to finance its big budget and balance of payments deficits.
&#8220;The debates around radical economic transformation are ongoing,&#8221; Gigaba told the finance committee. &#8220;How do you get the majority of South Africans &#8230; to participate in the economy, to own some assets, to become self-sustaining?&#8221;
He said the ruling African National Congress, which steers government policy, had not yet defined what the transformation entailed.
(Reporting by Wendell Roelf; Editing by James Macharia, Larry King)
&nbsp;

South Africa needs to clarify policy to boost confidence, Gigaba says

Nelson Banya | HARARE
Zimbabwe&#8217;s tax agency said on Thursday it had collected $862 million in the first quarter of 2017, exceeding its target by 6 percent, helped by automated operations and improved compliance among businesses.
The southern African country, which fell short of its 2016 revenue goal by 4 percent as its economy suffered from weaker commodity prices and a liquidity crisis, expects to collect $3.7 billion this year.
President Robert Mugabe&#8217;s government, which fell out with western donors nearly two decades ago amid accusations of human rights abuses and electoral fraud, does not receive significant direct international aid and relies almost entirely on tax revenues to fund its budget.
Zimbabwe&#8217;s economy stagnated last year following a devastating drought while its budget deficit exploded as Mugabe&#8217;s administration struggled to pay its workers, which helped fan anti-government protests.
Zimbabwe Revenue Authority (ZIMRA) chairperson Willian Bonyongwe said gross revenue collections for the first quarter of 2017 were 10 percent higher than figures for the same period last year.
<blockquote>&#8220;This upward trend is a result of a battery of revenue enhancement measures &#8230; which include automation, greater enforcement and the fight against corruption,&#8221; Bonyongwe said in a quarterly statement.</blockquote>
Value-added tax on local sales, at 22.42 percent, weighed in with the biggest contribution towards the revenue, followed by individual tax at 20.05 percent, ZIMRA said.
Company tax made up 11.2 percent, while mineral royalties, at $16.39 million, exceeded the quarterly target by 21.42 percent on the back of improved output and commodity prices.
The tax agency says it expects better revenue flows this year, following an improved farming season, but has cautioned that an extended bank note shortage Zimbabwe has experienced since the beginning of 2016 will affect economic performance.
Zimbabwe&#8217;s government has revised upwards its 1.7 percent economic growth projection for 2017 to 3.7 percent, citing the rebound in agriculture.
(Reporting by Nelson Banya; Editing by Gareth Jones)

Zimbabwe tax agency beats first quarter revenue target

Dakar, Senegal,25 March 2017 (ECA) &#8211; The Economic Commission for Africa (ECA) is revamping its fellowship programme to ensure it is relevant and makes sustained contributions to Africa’s transformation agenda.
The new look fellowship programme was unveiled during Africa Development Week in Dakar under the theme “Growth, inequality and unemployment”.
Capacity Development Division Director, Stephen Karingi, said the ECA fellowships are being re-aligned with the organization’s greater mandate of promoting the economic and social development of its 55 Member States, fostering intra-regional integration and promoting international cooperation for Africa’s development.
“In October 2012, ever changing the ECA embarked on a strategic retooling and reorientation process to ensure continuous relevance to the ever-changing dynamics of Africa’s development,” said Mr. Karingi. “We want the fellowship programme to continue to provide an avenue for knowledge sharing and provide opportunities for Africa’s youth so they can contribute to shaping policy on the continent even at a young age.”
The new fellowship framework fits into the four key areas identified by ECA as fundamental to ensuring regular, relevant and sustained contributions to Africa’s transformative agenda. These are: cutting edge policy research, knowledge delivery, dynamics for an integrated and coherent approach and aligning corporate incentives and support systems.
Mr. Karingi said the realignment of the current fellowship programme is meant to ensure a better fit within the new Capacity Development Strategy and to respond proactively to the capacity development needs of Member States.
This framework is developed and fits within the four key areas identified by ECA as fundamental to ensuring regular, relevant and sustained contributions to Africa’stransformative agenda. These are: cutting edge policy research, knowledge delivery, dynamics for an integrated and coherent approach and aligning corporate incentives and support systems.
The main objectives of the fellowships include supporting young African scholars acquire professional knowledge and operational experience as fellows and to apply this new and innovative knowledge to help Africa’s transformative agenda; to provide opportunity for young African scholars to gain exposure working in an international environment; and to build a community of experts in Africa that can serve as a resource for formulating, implementing and monitoring development activities at the national, sub-regional, regional and international levels.
A minimum of 40 fellows shall be recruited, trained and mentored annually by the ECA. At least six of the students will be ECA Prize Fellows, 30 ECA Regular Fellows, and the rest would be partner-sponsored fellows.
The ECA prize fellowship is a high-level fellowship programme that will be implemented in conjunction with African universities and institutions of higher learning on African issues both within and outside the continent.
Its aim is to provide recently graduated African youth, both on the continent and in the diaspora, who have excelled in their fields of study, an opportunity to experience and be part of policy and research work at a pan-African level.

ECA revamps fellowship programme targeting African students

The Economic Commission for Africa (ECA) launched today in Dakar the second generation of its country profiles, on the margins of the African Development Week (Dakar, 23 &#8211; 28 March 2017). These reports, which offer a snapshot of economic and social development in African countries, identify policy challenges and provide recommendations to decision-makers, national and regional institutions to address those challenges, this year cover 21 countries.
“The 1st generation of country profiles has strengthened our evidence based policy engagement and dialogue with ECA’s members States. Based on data generated by national institutions, they address critical issues at the core of countries economic and social transformation strategies said Giovani Biha, ECA Deputy Executive Secretary for Knowledge Delivery . “They are easy to read and accessible to a large group of ECA’s constituencies. This second generation of country profiles builds on the success of the 2015 country profiles.”
The ECA Country Profiles were originally designed in 2015 in accordance with Resolution 917 of the Conference of African Ministers of Finance, Planning and Economic Development (Abuja, 2014), with the aim to provide African decision-makers with an independent analysis of their countries’ economic and social development including the progress made to achieve regional integration.
The country profiles are based on data provided by member States and they complement ongoing ECA efforts to improve the collection and use of statistical data in Africa.
They include various innovations such as: the African Social Development Index (ASDI), which measures human exclusion in six key dimensions of wellbeing throughout the life cycle (survival, health, education, employment, means of subsistence and the capacity to live a decent life after the age of 60), the AGDI (African Gender and Development Index) and the African Regional Integration Index, based on the five pillars of regional integration (trade integration, regional infrastructure, productive integration, free movement of people &amp; financial and macroeconomic integration).
The countries covered in the 2016 Country Profiles are Algeria, Angola, Burundi, Cabo Verde, Chad, Central African Republic, Djibouti, Equatorial Guinea, Gabon, The Gambia, Ghana, Madagascar, Malawi, Mauritania, Mauritius, Mozambique, Nigeria, Somalia, South Africa, Swaziland and Tunisia.
END
For more information about the ECA country profiles, please visit: <a href="http://www.uneca.org/publications/country-profiles">http://www.uneca.org/publications/country-profiles</a> .

ECA launches African country profiles at African Development Week

Nigeria&#8217;s monetary and fiscal authorities must cooperate on their policies to help Africa&#8217;s largest economy to develop, the central bank governor said, according to his spokesman.
Central Bank Governor Godwin Emefiele made the comments at a two-day retreat for members of the bank&#8217;s Monetary Policy Committee and the ministers for finance, budget and investment. The closed-door meeting, which takes place about three times a year, ended on Saturday.
OPEC member Nigeria is in its first recession in 25 years, largely brought on by low oil prices. Crude oil sales account for about two-thirds of government revenue.
The central bank has faced criticism from investors for keeping Nigeria&#8217;s currency, the naira, at a rate some 30 percent above the black market, where entrepreneurs are forced to go for foreign exchange with the dollar scarce on official channels.
&#8220;Godwin Emefiele reiterated the need for the country&#8217;s monetary and fiscal authorities to collaborate and harmonize standpoints so as to develop the economy rapidly,&#8221; central bank spokesman Olalekan Ajayi said in an emailed statement on Sunday.
The finance ministry has previously said adjustments were needed to narrow the spread between exchanges rates on the official and black market. The central bank devalued the rate for retail customers in February after Nigeria&#8217;s top economic advisor body called for an urgent review.
The bank&#8217;s Monetary Policy Committee is due to meet on Monday and Tuesday to set interest rates. Twelve out of 13 economists polled by Reuters predicted that the bank would leave its benchmark interest rate unchanged at 14 percent on Tuesday.
(Reporting by Camillus Eboh and Alexis Akwagyiram, in Lagos, editing by Larry King)

Nigerian central bank head urges cooperation on monetary & fiscal policy

S&amp;P Global Ratings reiterated its concerns on Tuesday about weak economic growth, political tensions and policy reform in South Africa, which faces the prospect of downgrades to its sovereign credit ratings which would raise the cost of borrowing.
The political temperature has been rising in Africa&#8217;s most industrialised economy ahead of the ruling African National Congress (ANC) party&#8217;s key policy and leadership conferences this year, to chart the country&#8217;s economic and political course. A successor to President Jacob Zuma as head of the party is due to be elected at the ANC&#8217;s conference in December.
&#8220;If we see a lot increasing political tensions, infighting in state institutions which could derail the government’s plans in boosting economic growth then that can impact on our forecasts on growth,&#8221; Gardner Rusike, S&amp;P associate director told a conference.
S&amp;P has cited &#8220;political turmoil and tension&#8221; before and the issue clearly remains high on the investment radar screen.
Growth has also been a persistent concern. South Africa&#8217;s economy grew by 0.3 percent in 2016 versus 1.3 percent in 2015, well short of the government&#8217;s target of 5 percent.
(Reporting by Olivia Kumwenda-Mtambo; Writing by Ed Stoddard; Editing by James Macharia)
&nbsp;

S&P reiterates growth, policy & politics as concern to South Africa rating

Leaders from business and policy-making are not expecting a return to 1930s-style trade war, despite the populist backlash in parts of the world against globalization and free trade.
Nevertheless, the reality is that nationalism and protectionism are on the rise globally and the case for globalization needs to be made, agreed panellists in a session at the World Economic Forum Annual Meeting.   “There is no winner in a trade war,” stressed Min Zhu, President, National Institute of Financial Research, People&#8217;s Republic of China. Indeed, raising tariff barriers on both sides would cut China’s annual GDP by around one-third and US GDP by one-half. Rhetoric coming out of the incoming US administration is concerning, he added. “China will continue to support globalization and is willing to work with all countries,” he said.   “Protectionism is rising and that is worrying,” said Cecilia Malmström, Commissioner for Trade at the European Commission, Brussels. Trade is the best tool we have to fight poverty and promote growth. “However trade needs to be more inclusive, transparent and values-based,” she added.   David M. Cote, Chairman and Chief Executive Officer of Honeywell International, stressed the need to learn the lessons of history. “Since the Phoenicians, we’ve known that trade between countries raises the standard of living,” he said. We just need to find a way to make it work, he added. He said it is important not to take political rhetoric at face value and, instead, suggests a wait-and-see approach.   David Abney, Chairman and Chief Executive Officer, UPS, USA, also does not foresee a trade war. With so much to lose, cooler heads will prevail, he said. “Trade is not a zero-sum game,” he added. Nevertheless, leaders have not done a good enough job communicating the aggregate benefit of open trade and globalization. “We need to do much more to equip displaced workers with new jobs and 21st-century skills,” he said.   “We should not talk ourselves into a trade war,” stressed Roberto Azevêdo, Director-General of the World Trade Organization (WTO), Geneva. He emphasized the need to deliver positive news on trade. Periodically, we must deliver important breakthroughs, he said, such as the Bali 2013 Trade Facilitation Agreement, which increased global exports by around $1.3 trillion.
 The 47th World Economic Forum Annual Meeting is taking place on 17-20 January in Davos-Klosters, Switzerland, under the theme Responsive and Responsible Leadership. More than 3,000 participants from nearly 100 countries are participating in over 400 sessions.
﻿

Trade: Best tool to fight poverty and promote growth

Consumers want faster data at lower prices, yesterday. This is the sentiment behind the #DataMustFall movement, which is agitating for lower mobile and fixed-line data prices. But is this complaint valid and even if it were, would more government regulation be an appropriate response? No, on both counts, argues renowned writer and commentator Ivo Vegter in a recent talk given at the Free Market Foundation (FMF) in Johannesburg. It appears that the vested interest data must fall lobby has grossly misrepresented the facts.
According to Vegter, government interference, failed policy, bad regulation and poor implementation have created a market in which apparently a few mobile network operators hold dominant positions and charge frustrated consumers high prices for data. The speed and intensity with which the data must fall campaign spread headline comparisons widely across social media showing South Africa to have exorbitant data charges, left many in the industry reeling and consumers outraged.
The FMF is concerned that the misinformed push towards lower data prices appears to have been an influential factor in the recent Information and Communication Technology (ICT) Policy White Paper, which intends a radical shake up of the ICT industry and has far-reaching implications for mobile network operators. Has it played a disproportionate and inappropriate part in formulating policy? Has the DTPS been too quick to accept the whims of a social media campaign and is it using negative public sentiment to drive through more bad policy?
Vegter raised the question of whether data is really so much more expensive than elsewhere in the world and concludes it is a complex and difficult question. Voice and data products are difficult to compare across different operators and countries. The widely circulated gang of four meme that took social and mainstream media by storm is blatant misinformation. It used the lower cost of 1 GB – R11 &#8211; in India offered as a limited special by a small operator and compared it with a standard out of bundle price in South Africa – R149. Bizarrely, the Parliamentary Communications Committee states that special pricing used by operators cannot be included in the calculations of the cost to communicate in South Africa yet this is a standard marketing tool used all over the world and has a significant impact on the average price of data.
On a pure price basis, South Africa compares fairly well with other countries, Vegter maintains. “At the high end of the mobile market, South Africans pay about R30 per gigabyte from Telkom, and R50 per gigabyte from mobile operators. That’s less than Australians and Americans pay, according to research conducted by MyBroadband. New Zealanders pay about two and a half times as much as we do. India comes in slightly cheaper at R26.30, while the UK is much cheaper at only R8.38 per gigabyte.”
“At the lower end of the market, India remains a little cheaper, but Australians, Britons, and Americans all pay about twice as much as South Africans do, with New Zealanders paying almost four times as much.”
Again, contrary to prevailing misinformation, adjusting for income levels, South Africans spend on average about 2.3% of their income on ICT, according to the latest figures from 2014 compiled by the International Telecommunications Union in its 2015 Measuring the Information Society Report.
Out of 170 countries, South Africa ranks about mid-way at 80th, in terms of communication cost as a share of income, behind Brazil and China, on a par with Chile, Hungary, and Mexico, and well ahead of India.
Vegter said that a pure price comparison is complicated by many factors including the rand/dollar rate in which almost all telecommunications equipment, including handsets, is priced and the long distances between South Africa and the rest of the world, where most of the internet is located. “We are dependent on a handful of undersea cables that span long distances, mostly to the northern hemisphere. Other factors are the size and geographical spread of South Africa and population density, which makes Internet infrastructure relatively more expensive, per capita”.
That South Africa’s prices are extraordinarily high, is far from clear.﻿

Did data must fall lobby misrepresent the facts?

South Africa&#8217;s Treasury said on Wednesday it supported the report by a government-appointed advisory panel that suggested a national minimum wage of 3,500 rand ($245) per month, throwing its political weight behind the policy initiative. 
&#8220;The report represents &#8230; an important milestone in our government&#8217;s efforts over the years in this regard,&#8221; Finance Minister Pravin Gordhan was quoted as saying in a statement.
Supporters of a minimum wage say it can stimulate growth as workers can spend more while reducing inequality. Critics say it could lead to increased unemployment as employers will be unable to afford higher wage bills.
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South Africa's Treasury supports minimum wage recommendation

Liberian President Ellen Johnson Sirleaf said on Wednesday she was saddened by the fact U.S. voters had not elected a woman president, and expressed concern about what President-elect Donald Trump&#8217;s policy towards Africa would be.
Johnson Sirleaf, the first woman to be elected a head of state in Africa, said: &#8220;We are extremely saddened by this missed opportunity on the part of the people of the United States to join smaller democracies in ending the marginalisation of women.&#8221;
In an interview with BBC television, she said that Liberia, a nation founded in the 19th century by freed American slaves, had a long and historical relationship with the United States and she expected that to continue.
&#8220;We are concerned as to whether President-elect Trump will have an African agenda, will be able to build bridges with Africa. We can only hope that he will do so in due course.
&#8220;I&#8217;m worried about trade deals for Liberia, for Africa. I&#8217;m worried about investment and the special programmes that have been put in place by President Obama and by President George Bush before him, and we just don&#8217;t know what the policy towards Africa will be.&#8221;﻿

Liberia's Johnson Sirleaf saddened after Trump win

Government’s National Health Insurance (NHI) proposals have hit the headlines over the past months. The Free Market Foundation’s Health Policy Unit too, has focussed on what can be described as a misdirected and flawed policy. But the NHI is not the only problem in our national health regime.
The National Health Act (61 of 2003) is also holding South Africa back in terms of medical and healthcare development.                                                     
The Good Law Project’s Principles of Good Law report, published in 2015, contained an introduction to the meta-legal concept of ‘the rule of law’. In brief, the rule of law means that objectively-ascertainable principles of law govern society, rather than the arbitrary discretion or whims of politicians and bureaucrats. This is why ‘the rule of law’ is distinguished from ‘the rule of man’, which finds its expression in dictatorship or absolute monarchy.
The tenets of the rule of law were adopted into South Africa’s legal regime in terms of section 1(c) of the Constitution, which states that the State is founded on the “supremacy of the constitution and the rule of law.”
Despite this, the National Health Act is based on questionable premises, which is clearly evident from its long title and preamble. Rather than focussing on the provision of quality healthcare, the Act takes a bureaucratic, ideological approach, seeking to create a “uniform health system” and unite the elements of the “national health system” – which encompasses both public and private infrastructure. It is an exercise in centralisation, more than anything else. And it is these provisions in the Act which pursue this problematic goal, that contravene the rule of law.
Section 36 of the Act provides that no person may establish a healthcare agency, such as a clinic or hospital, without having a ‘certificate of need’ issued to them by the Director-General of Health (DG). These certificates are also required if an existing establishment wishes to increase the number of beds in a hospital (increasing its capacity) or acquire new medical technology (increasing the quality of treatment).
These certificates are a particularly perverse instrument in this post-Cold War era, especially for an African developmental state.
While the Act does not define what a certificate of need is, in section 36(3) it outlines what the DG must take into account before a certificate can be issued. Among other things, it says that there must be a “consistent” development of health services in terms of “national planning”; that the inequities of the past must be corrected (in the context of whether or not someone may build a new hospital); there must be an “appropriate mix” of public and private health services; that it must be ensured that “ownership of facilities” are not for “perverse” reasons; and whether or not the private hospital is for-profit.
These are only some of the things the DG must bear in mind before issuing a certificate, and an independent article can be dedicated to the patent ridiculousness of each.
The unifying characteristic of all of these ‘factors’, however, is that they are wholly irrelevant to expanding the quantity, and quality, of healthcare to ordinary South Africans. In fact, many of the factors appear to be inspired by a dogmatic adherence to an ideology currently pursued by the ruling party rather than for ensuring the safety and comfort of patients.          
These factors violate the rule of law in that they do not have general application and are arbitrary. Going by the wording of the Act – the DG might reject an application for a certificate from a hospital in an affluent area to increase the number of beds because it is a for-profit establishment and the township hospital nearby has not been “developing consistently” with the wealthier hospital.
The vagueness of some of these blatant ideological factors also contributes to their inconsistency with the rule of law. For example, what does an “appropriate mix” of private and public services mean? The Act provides no guidance or criteria on how to determine an “appropriate mix”. What is and what is not appropriate is entirely within the arbitrary discretion of the DG and the Department of Health.
More worrying is the fact that the DG may withdraw a certificate if the establishment “obstructs the State in fulfilling its obligations” to provide healthcare to South Africans. How is it conceivable that a private clinic can ‘obstruct’ the government in its public healthcare duties? The vagueness of this provision opens it up to potential abuse.
The key provisions of the National Health Act violate the most basic tenets of the rule of law. The Act should be reconsidered in light of the fact that there is no rational relationship between these provisions and the State’s supposed constitutional obligation to provide healthcare, and that, in all likelihood, they violate the right of every South African to access healthcare.
Author: Martin van Staden is a law student at the University of Pretoria and the Academic Programmes Director of Students for Liberty in Southern Africa. The views expressed in the article are the author’s and are not necessarily shared by the members of the Free Market Foundation.
 
@FMFSouthAfrica﻿

OPINION: Health Act does not adhere to the rule of law

Telkom has welcomed the publication of the Integrated Information and Communication Technology Policy White Paper noting in particular the policy’s attempt to balance universal access with the need to innovate and grow the industry.
Speaking at a technology conference today, Chief Commercial Officer, Dr Brian Armstrong set out Telkom’s high-level observations on the positive and potentially negative implications of the policy.
“Our reaction to the white paper is that there is a lot of good in it. Some of it is concerning and there some parts that are potentially dangerous. Our view is that one should regulate where it is necessary and this includes when there is market failure,” said Armstrong.
Planned regulatory interventions should be geared toward improving the overall health and sustainability of the industry for the benefit of consumers. To this end Armstrong said that policy must promote competition, promote investment, and ultimately deliver universal access, reduced costs to communicate and enhanced consumer choice. It should recognise the evolution of technology, and there needs to be policy coherence across the various arms and institutions of state. 
He highlighted the following positive policy proposals:
<ol>
<li>1.       Evidence Based Regulatory Interventions:The commitment that planned future interventions in the ICT sector will be evidenced based is encouraging. This will assist in avoiding untested proposals that may cause irreparable harm to the sector.</li>
</ol>
<ol>
<li>2.       Favourable Technology Mix:The policy recognises that wireless solutions will often be the appropriate manner in which to provide access to rural areas. Telkom has long had the view that rural connectivity should be anchored to key points, such as schools and government departments, by a fixed network. Beyond these points connectivity should be provided via mobile wireless solutions. “This is recognition that fixed and mobile have an important part to play and it’s not just about fibre. The open access principles are sound and recognises that mobile is as important for access as fixed,” said Armstrong.</li>
</ol>
<ol>
<li>3.       Over the Top (OTT) Services:Telkom supports the measured approach toward the possible regulation of OTT services. We are of the view that regulatory intervention should not compromise innovation, investment and competition.</li>
</ol>
<ol>
<li>4.       Open Access Principles:The policy acknowledges the convergence of fixed and mobile services and also the concentrated nature of the mobile market and to this end proposes an accounting separation of dominant incumbent mobile network operators with significant market power and potential mandatory sharing of their radio access network infrastructure. We are of the view that this is an important first step towards creating a healthier industry that will better serve consumers.</li>
</ol>
<ol>
<li>5.       Single Wholesale Open Access Network (SWOAN):Telkom supports the SWOAN as a means to extend coverage and promote service based competition in underserved areas where the duplication of network infrastructure is economically infeasible. “The principles of such a Wholesale Open Access Network are not yet clearly defined. This includes how existing networks have access to it, who pays for what and who shares what. Issues of demarcation have not been clearly defined. The debate on this is just starting,” said Armstrong.</li>
</ol>
<ol>
<li>6.       Restructuring of the Regulator:We support the need to emphasize economics in the regulation of the sector. We hope the proposal to restructure the regulator will foster a greater degree of alignment between policy and regulation.</li>
</ol>
Telkom has and always will be an advocate for the democratisation of communication – a prerequisite for inclusive digital transformation. However a balance between business interest and social benefits is necessary.
Armstrong pointed to the following policy proposals that pose a risk to current and planned investment and ultimately the overall health and sustainability of the industry.
<ol>
<li>1.       Return of Assigned IMT Spectrum:The proposal to return the currently assigned IMT spectrum goes against international best practice where there is a reasonable expectation of spectrum renewal. Operators have made significant investments in network infrastructure with the expectation of recovering costs over a period. “The fundamental problem is you have spent millions on the network and then have to return it. We need industry engagement on this issue,” Armstrong stated.</li>
</ol>
The withdrawal of IMT spectrum compromises the operators anticipated return on invested capital and disincentives future expenditure towards network upgrade and maintenance. The result is that the network coverage footprint will stagnate, innovative new services will fail to materialize and the quality of service will deteriorate. This is contrary to the policy objectives enshrined in the Integrated ICT Policy White Paper.   
<ol>
<li>2.       Net Neutrality:We support the notion of an “Open Internet” and the critical requirement to provide differentiated quality of service in response to consumer requirements. However, the establishment of indiscriminate and unfavourable net neutrality regulations could pose threats to the quality of service delivered to consumers, stifle innovation and may compromise the functionality of the Internet, which is inherently counterproductive.</li>
</ol>
<ol>
<li>3.       Designation of Deemed Entities:The definition of “deemed entities” is too broad as it includes market entities with limited market power and does not specifically address the concentrated nature of the mobile market. According to international best practice, significant market power alone is the criteria for sector specific regulation. An IMT spectrum assignment itself should not be used as a defining criteria for a deemed operator, as having a spectrum assignment does not necessarily lead to market dominance or abusive behaviour. Defining deemed entities in terms of spectrum assignments could entrench the current concentrated mobile market structure and disincentives future investment by new/smaller operators, which are yet to obtain sufficient market share or even enter the market.</li>
</ol>
<ol>
<li>4.       Open Access Principles (Fixed Context):The fixed industry is a dynamic and competitive market, where great progress has been made in the implementation of wholesale architecture. We are seeing very vibrant innovation and competition in the Fibre market and imposing open access to layer 1 of the network may compromise this. It is unnecessary in a market that operates efficiently and will discourage investment towards the expansion, upgrade and continued maintenance of the fixed network.</li>
</ol>
<ol>
<li>5.       Single Wholesale Open Access Network (SWOAN) in Metro and urban areas:“What we are not enthusiastic about in the policy is the assumption that a single access network will also be good for a well-functioning market as we have in urban areas. We don’t believe this is the best way to go for efficiency and competition in the metros. It will also disincentivise investment” said Armstrong. Notwithstanding the relatively concentrated nature of the mobile market at the moment, we are of the view that infrastructure based competition should be preserved in the areas which are currently well served. It will drive innovation, improve quality of service and result in reduced prices.</li>
</ol>
“It is important that we engage as an industry on these matters. We are heartened by the Department’s openness for discussions on the policy. Any policy should provide predictability and certainty., and drive alignment across the sector. We can’t start the process using one set of rules and then a few years later have another set of rules that applies. The process of regulation must be legally and procedurally sound and focussed on what we want to achieve as country,” concluded Armstrong.﻿

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policy

Op-Ed: Mainstreaming gender in African policy making: Ensuring no voice is unheard

Joyce Msuya on achieving sustainable development in East Africa

Op-Ed: S.A’s NHI – Is it necessary or appropriate for government to provide “free healthcare for all”?

South Africa’s fiscal policy framework on track: cabinet

S.Africa’s central bank governor says raising rates won’t lure investment

South Africa needs to clarify policy to boost confidence, Gigaba says

Zimbabwe tax agency beats first quarter revenue target

ECA revamps fellowship programme targeting African students

ECA launches African country profiles at African Development Week

Nigerian central bank head urges cooperation on monetary & fiscal policy

S&P reiterates growth, policy & politics as concern to South Africa rating

Trade: Best tool to fight poverty and promote growth

Did data must fall lobby misrepresent the facts?

South Africa's Treasury supports minimum wage recommendation

Liberia's Johnson Sirleaf saddened after Trump win

OPINION: Health Act does not adhere to the rule of law

S.A's Telkom states its position on Integrated ICT Policy White Paper

News Tips

Advertise With Us

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