Ministry of Water Resources and Irrigation, NWS Cairo,28-29 July 2007 NBI First National Coordination Meeting

Socio-economic Development and Benefits Sharing (SDBS) Project Activities of the INSTITUTE OF NATIONAL PLANNING (INP) In its capacity as a PARTICIPATING INSTITUTION (PI) ByA.M.FARAHAT

SDBS Project Two Components : Nile Transboundary Development Network (NTDN) and, Nile Transboundary Development Network (NTDN) and, Network of 10 PIs. Network of 10 PIs. Nile Transboundary Development Facility (NTDF) Nile Transboundary Development Facility (NTDF) Network of Collaborating Institutions CIs, i.e NGOs, Private Sector and other civil society institutions Network of Collaborating Institutions CIs, i.e NGOs, Private Sector and other civil society institutions

Two Phases Two Phases 1. A Preparatory Phase : March 2006 – January An Operational Phase : 1February-31 July 2007

The Preparatory Phase INP designated by MWRI as the PI from Egypt INP designated by MWRI as the PI from Egypt March Inception Workshop for the PIs, Entebbe, April 2006 Inception Workshop for the PIs, Entebbe, April 2006 Work Plans prepared and submitted. Work Plans prepared and submitted. First PSC mandated a clustering scheme, Kampala, June 2006 First PSC mandated a clustering scheme, Kampala, June 2006 New Work Plans prepared accordingly New Work Plans prepared accordingly Contract Negotiated, Entebbe, Nov.2006 Contract Negotiated, Entebbe, Nov.2006 Contract signed, February 2007 Contract signed, February 2007

Clustering Scheme Five clusters, each led by a PI as follows: 1. Cross-Border Trade Egypt, Uganda, Tanzania, Burundi Egypt, Uganda, Tanzania, Burundi 2. Benefit-Sharing: Ethiopia, Burundi, DRC. Ethiopia, Burundi, DRC. 3. Food Security: Kenya, Ethiopia, Sudan. Kenya, Ethiopia, Sudan. 4. Energy: Tanzania, Uganda, Kenya, Rwanda, Egypt. Tanzania, Uganda, Kenya, Rwanda, Egypt. 5. Water/Natural Resources Management: Rwanda, Ethiopia, Egypt, Burundi, DRC. Rwanda, Ethiopia, Egypt, Burundi, DRC.

Operational Phase Started 1 February 2007 Started 1 February 2007 Focus on Cross Border Trade Focus on Cross Border Trade Concept Note Concept Note Cluster Meeting/Workshop, Cairo, March 2007 Cluster Meeting/Workshop, Cairo, March 2007 Announcement of the first grant competition of the NTDF Announcement of the first grant competition of the NTDF Scoping Study prepared Scoping Study prepared

Operational Phase INP also participated with Country Papers in the other five clusters. Two of the four meetings were attended by a representative from INP: INP also participated with Country Papers in the other five clusters. Two of the four meetings were attended by a representative from INP: Energy Cluster, Dar Es Salam, 2-3 April 2007 Energy Cluster, Dar Es Salam, 2-3 April 2007 Food Security Cluster, Nairobi, April 2007 Food Security Cluster, Nairobi, April 2007 Water/Natural Resources Cluster, Rwanda, April 2007 Water/Natural Resources Cluster, Rwanda, April 2007 Benefits Sharing Cluster, Addis Ababa, May 2007 Benefits Sharing Cluster, Addis Ababa, May 2007

Scoping Study Development of Cross Border Trade among Nile Basin Countries

Table of Contents I CBT, NILE BASIN COOPERATION AND POVERTY 1. Introduction 2. CBT and Poverty IIRELEVANT CONCEPTS AND CONSIDERATIONS 3. Benefit-Sharing Considerations 4. The Virtual Water Concept 5. The Comparative Advantage of Agricultural Commodities 6. Supply Chain and Transport 7. Implications of ICTs 8. Contemporary Trade Facilitation Schemes

Table of Contents III THE STATUS QUO 9. Nile Basin CBT: The Current Situation 10. Nile Basin CBT: The Role of Women 11. Contemporary Regional Cooperation Schemes 12. Transport Infrastructure: An Overview 13. Investment Opportunities in the Nile Basin IVPROMOTING CBT: TOWARDS A STRATEGIC FRAMEWORK 14. A Proposed Strategy 15. Towards Action: A Result-Based Approach

Highlights of the Study The Poverty Scene in the NB A Human Development perspective A Human Development perspective An MDGs perspective An MDGs perspective The genuine relationship between CBT & Poverty The genuine relationship between CBT & Poverty Social implications. Social implications.

Highlights of the Study The Current Intra-Basin Trade VOLUME: VOLUME: Intra-basin trade is extremely low (5-6%) Intra-basin trade is extremely low (5-6%) STRUCTURE: STRUCTURE: Primary commodities on the exports side and manufactured goods on the imports side Primary commodities on the exports side and manufactured goods on the imports side Unfavorable terms of trade Unfavorable terms of trade Mainly with EU and North American markets Mainly with EU and North American markets

Highlights of the Study Low Intra-Basin Trade VOLUME Explains why current RC schemes such as COMESA scored limited success Explains why current RC schemes such as COMESA scored limited success They are working on alleviating tariff and non-tariff barriers to trade They are working on alleviating tariff and non-tariff barriers to trade If trade volume is low, then expected result should be modest If trade volume is low, then expected result should be modest

Highlights of the Study UNFAVORABLE Trade Structure Indicates that Trade Liberalization Schemes of the WTO will not yield the required results Indicates that Trade Liberalization Schemes of the WTO will not yield the required results They tend to facilitate trade according to the current links and structure They tend to facilitate trade according to the current links and structure They don’t induce much change in the structure They don’t induce much change in the structure

Highlights of the Study The Way Out of this Situation If CBT is truly the vehicle for development, then the engine would be our real target If CBT is truly the vehicle for development, then the engine would be our real target Endogenous development is the Engine for development Endogenous development is the Engine for development The ultimate goal should be REGIONAL INTEGRATION. The ultimate goal should be REGIONAL INTEGRATION. Regionalization is no hindrance to globalization Regionalization is no hindrance to globalization This means interdependent economic relationships based on: This means interdependent economic relationships based on: Comparative advantages Comparative advantages Competitive advantages Competitive advantages Favorable factors (diversified resources and big markets) Favorable factors (diversified resources and big markets)

Highlights of the Study Investments Should Precede The role to be vested to the private sector The role to be vested to the private sector Investments will increase the potential for trade Investments will increase the potential for trade

Highlights of the Study Agricultural Trading opportunities Comparative advantages for NBCs Comparative advantages for NBCs Competitive advantages ( Egypt for instance) Competitive advantages ( Egypt for instance) Case of meat production and oil seeds Case of meat production and oil seeds

The Way Ahead Integrated Strategy The Core of which: Investment promotion Investment promotion Flow facilitation Flow facilitation Market access Market access Market access is taken care of by WTO and globalization trends

Highlights of the Study The Need for an Integrated Strategy Investment Promotion Will increase the potential for CBT Will increase the potential for CBT This is the role to be vested in the Private Sector This is the role to be vested in the Private Sector This is the focus of other clusters acc. To log frame of SDBS project This is the focus of other clusters acc. To log frame of SDBS project Flow facilitation Will trigger CBT This will be the recommended focus of our cluster for future action

The Way Ahead Our Focus Flow facilitation through alleviation of physical and non-physical barriers to trade Flow facilitation through alleviation of physical and non-physical barriers to trade

Highlights of the Study Flow Facilitation A Two Track Approach Physical Barriers Mainly transport infrastructure Mainly transport infrastructure Could be approached through a long-term capital-intensive hard- measures track Could be approached through a long-term capital-intensive hard- measures track Non-Physical Barriers For instance, logistics, conventions,..etc Could be approached through a medium-term not highly capital intensive soft measures track

Highlights of the Study Flow Facilitation Physical Barriers to Trade The need for a multimodal integrated normative transport network The need for a multimodal integrated normative transport network The need for a North-South Corridor as a backbone for such network The need for a North-South Corridor as a backbone for such network The Nile River potentials and equatorial lakes potentials as inland waterways should be fully exploited The Nile River potentials and equatorial lakes potentials as inland waterways should be fully exploited The problems of the East Africa shipping line should be studied and solved The problems of the East Africa shipping line should be studied and solved

The Way FORWARD The starting Point would be to have a BETTER UNDERSTANDING OF THE PROBLEM on the ground The starting Point would be to have a BETTER UNDERSTANDING OF THE PROBLEM on the ground What are the missing links, where are the barriers, what are the bottlenecks, …etc What are the missing links, where are the barriers, what are the bottlenecks, …etc This requires a multidisciplinary team and field visits This requires a multidisciplinary team and field visits

The Way FORWARD A crude proposal for action is prepared A crude proposal for action is prepared It is based on the Result-Based technique adopted by the SDBS project It is based on the Result-Based technique adopted by the SDBS project Moreover, it is consistent with the Log Frame of the SDBS project itself Moreover, it is consistent with the Log Frame of the SDBS project itself A detailed Work Plan will be prepared once the proposal is accepted A detailed Work Plan will be prepared once the proposal is accepted