Under the Royal Patronage of His Majesty King Abdullah II Ibn Al-Hussein African-Arab Economic Forum Roadmap & Accessible Funding for Successful Investments 27/9/2017 Under the patronage of His Majesty King Abdullah II Ibn Al Hussein, the African-Arab Economic Forum, held under the theme "Roadmap and Accessible Funding for Successful Investments", was launched on September 27, 2017 at the Fairmont Hotel in Amman and attended by more than 600 participants, from more than 53 countries represented by ministers and officials from both the Arab and Africa sides. This forum was lead and managed by the Union of Arab Chambers, Jordan Chamber of Commerce, and Union of African Chambers in cooperation with the League of Arab States and Al-Iktissad Wal-Aamal Group with the Arab Bank For Economic Development In Africa (BADEA) as strategic partner. The main objective of the forum consisted in developing and strengthening the economic, trade and cultural relations between the African and Arab private sectors, in order to pave the way for successful investments. The opening ceremony began with the welcoming words of the Personal Representative of His Majesty King Abdullah II Ibn Al Hussein, H.E. Mr. Muhannad Shehadeh, Jordanian Minister of State for Investment Affairs and President of the Investment Commission. In his speech, he stated that Jordan is now turning its challenges into real opportunities for total growth and job creation through public and private partnerships. He added that the Investment Commission is working closely with business owners, investors and companies to facilitate the work in Jordan and to enhance the mutual beneficial economic relations. He stressed that despite the turmoil in the region, Jordan remained a safe haven for Jordanians, Partners and Friends, under the wise leadership of His Majesty King Abdullah II, and he added that Jordan is determined to develop and strengthen the business environment in the heart of the Arab Mashreq, in order to make the Kingdom a strong platform for the Gulf region and the 1
Middle East and North Africa and a center for the East and West. He pursued by saying that trade agreements linking Jordan with various global economic blocs have given it access to a billion of consumers around the world and has become a regional hub for many regional corporate offices. Moreover, he highlighted that Jordan possesses core elements that makes it a base for infrastructure and reconstruction projects in the region. The African market represents an opportunity to achieve the mutual interest that exist between Jordan and the continent, especially in the sectors of agriculture, food and services. Mr. Shehadeh called upon the participants to provide new ideas that would contribute to the operation of the business and establish partnerships between the Arab and African countries to achieve mutual benefits between the two sides. He raised the need for collective action so that the two sides benefit from dynamic productivity and prosperity, and required us to drive the economy with its different institutions, large, medium and small enterprises, and provide growth opportunities for the youth since they are the hope of the future. For his part, the President of the Jordan Chamber of Commerce and of the Union of Arab Chambers, H.E. Mr. Nael Al-Kabariti expressed his appreciation to His Majesty King Abdullah II for holding the Forum under his patronage and for his interests towards the development of economic relations with African countries. He explained that the factors that unite the Arab and African countries are all sources and factors of strength that work together towards establishing an economic bloc facing the global economy, and that the Forum seeks to map a road on future cooperation for the benefit of the next generations. He mentioned that strengthening cooperation between the two sides requires the development of strategies, agreements and the use of tools in various fields, namely, trade exchanges, transport and logistics, culture, tourism, financial services, education with a particular focus/interest on the information, knowledge economy and transfer of technology. He also urged the need to establish areas for the exchange of commodities and industries that are complementary and not competitive, especially in the sectors of electronic equipment, agricultural inputs, products of agro-industry, food, health and pharmaceutical industries, traditional and renewable energy projects, water, fish and 2
livestock. He also stimulated efforts towards the formation of a working group of Arab and African countries capable of follow-up, giving and creativity to draw strategies to build economic partnerships aimed at production, export and intellectual creativity. The ceremony proceeded with the speech of the President of the Islamic Chamber of Commerce, Industry and Agriculture, Sheikh Saleh Kamel, who stated that investment in Jordan are necessary because it is in Rabat. "I certify that Jordan fulfills the contracts. I have been here since the 1970s and no one has been with me in Jordan. I also testify that the Jordanian government is fulfilling the contracts," pointing out that the investment does not need laws but needs to meet the contracts, and that the issue of contracts is a sacred issue, which must be respected. He also attested that work should be worshipped and that investors should not reserve their money in banks, but they have to invest it and help readjust the organization of the land. Sheikh Saleh pointed out that the Chamber aims at reviving ethical values in commercial transactions, spreading awareness of the concept of Islamic economy, deepening the spirit of integration and solidarity, increasing the volume of trade exchanges, developing the volume of intra-tourism and investment, encouraging cooperation in banking, facilitating capital transfer, achieving food security, and increasing national output. He added that the achievement of the objectives of the Chamber faces many challenges, including low rates of economic development, increasing poverty and unemployment rates, but also in terms of trade, degree of economic cooperation, global food crisis and challenges of globalization and competition. Mr. Ahmad Al-Wakil, President of the Union of African Chambers, reemphasized the importance of the cooperation between the two sides by stating that: "The African- Arab cooperation bridges can provide investments and technologies to transform African natural resources into value-added products, creating jobs for our children, and our role as a business community it s to look at the other side of the coin, the problems of energy, environment and climate changes, see innovative investments and business opportunities that create jobs for our children." He noted that Africa is the second largest continent and one of the biggest world's population, the highest growth rate of the middle class with high purchasing power, 60 percent of arable land, half the world's stocks of platinum, cobalt and diamonds, 11 3
percent of oil, and is known for its industrial exports, which doubled in the past decade to exceed 100 billion dollars. The Arab nation must seize the opportunity and be the main trading partner for Africa, especially with the presence of thousands of Arab citizens who have settled in various parts of Africa. More importantly, the Arab world must be a major investment partner, especially in agriculture, to achieve food safety, renewable energy and manufacturing/transformative industries to increase the added value of Africa's wealth. And of course, multimodal transport, which has grown over the past decade to include the Suez Canal, and a lot of projects such as Pointe Noire in the Congo, the port of Tema in Ghana, the Abuja-Kivi road in Nigeria and the Gabor-Kaolak road in Senegal, which will be integrated with the Alexandria-Cape Town highway and the hub ports of the Suez Canal to spread development throughout Africa, with high profitability. Dr. Kamal Hassan Ali, assistant and head of Economic Affairs representing Mr. Ahmed Aboul-Gheit, Secretary General of the League of Arab States, pointed out that despite the passage of more than thirty years since the first Arab-African summit, the Arab-African relations didn t reach a high level of partnership as hoped for. With the convening of the second Arab-African Summit in the Libyan city of Sirte in 2010, the fruits of this cooperation have leaded to a strategic partnership contract and a plan of action for Arab-African cooperation during the period 2011-2016, focusing on the need to strengthen partnership between the Arab and African private sectors. In addition, the League of Arab States is keen to activate areas of cooperation and integration between Arab and African countries through the establishment of a trade zone with the African Union. The aim is to create an appropriate trade climate to increase the movement of bilateral trade between the two sides, and be the first stage of the process of intereconomic integration. Efforts are being made in this matter, by the parties to develop appropriate mechanisms to activate this idea. Mr. Ahmed Chouaib, head of foreign trade and private sector division of BADEA representing Dr. Sidi Ould TAH, executive director, stated that the leaders of the Arab countries took the lead in exploring the importance of Arab-African economic cooperation by adopting the decision in the early seventies of the last century to establish the Arab Bank for Economic Development in Africa Economic and social development. One of the main tasks assigned to the Bank is to contribute to the financing of the economic development of African countries, to encourage the participation of Arab 4
investors in African development and to contribute to the provision of technical assistance for the development of Africa. He stressed that what makes the bank special compared to other financial institutions is that it is being owned by the Arab countries, despite the fact that it is only lending to African countries. The total funding granted by the Bank to Sub-Saharan African countries until 30 June 2017, was estimated at $5540 million. Mr. Raouf Abou Zaki, CEO of Al Iktissa Wal Aamal group, noted that it is encouraging to see Jordan following the course of growth and reform, despite the many challenges that surround it, especially the situation in Syria and Iraq. Where the Kingdom of Jordan, under the leadership of His Majesty King Abdullah II, has not let these crises deter them from implementing reforms, achieving more balance in the budget and enhancing confidence in the country and its policies. The biggest challenge for Jordan was to stimulate growth and create jobs, despite the unfavorable conditions, and continued to bet on positive regional changes such as the opening of trade cross-borders with Syria and Iraq. However, this may take time. This gives priority to structural reforms to enhance the capacity to meet current and future challenges. The launching of the Economic Growth Program for the period 2018-2022 contributes to attract investments and contain financial pressures and is considered an important positive development. In conclusion, Ms. Pelate Niyonkuru, Minister of Trade, Tourism and Industry in Burundi, gave a presentation on investment opportunities in her country and in Africa in general and mentioned the challenges facing the Arab-African economic, investment and trade relations and the mechanisms to address them, she expressed her thanks and appreciation to the organizers of the events. The Forum included four dialogue sessions letting participants coming up with ideas and suggestions to promote the Arab-African relations in various economic, trade, industrial and investment fields. 5
The first session entitled roadmap for strategic partnership was a discussion session leaded by H.E Mr. Akel Biltaji, Former Jordan s Minister of Tourism, Former Chief Commissioner to the Aqaba Special Economic Zone Authority, Former Mayor of the Greater Amman Municipality, Former Vice President at Royal Jordanian Airlines. Panellists Dr. Ismail Abdel Ghafar, President of the Arab Academy for Science, Technology and Maritime Transport. Mr. Haytham Jomaa, Executive Director, Ministry of Foreign Affairs and Emigration, Lebanon. Mr. Nabil Kuzbari, Consultant and Arab President of the Austro-Arab Chamber of Commerce (AACC), represented by Mr. Moudar Khouja, Secretary General. Mr. Charles Kahuthu, Chief Executive Officer East African Chamber of Commerce, Industry & Agriculture. Mr. Kassoum Coulibaly, Founder and Chairman of the African Development Group. The second session hold the title investment opportunities in the African and Arab countries and was leaded by H.E Mr. Abdullah Sultan Al Owais, Vice-President of UAE Chamber of Commerce and Industry, President of Sharjah Chamber of Commerce and Industry. Panellists H.E Mr. Nasser Sultan Shraideh, Chief Commissioner of the Authority of the Special Economic Zone of Aqaba. H.E Ms. Clare Akamanzi, Executive CEO, Rwanda Development Board, Cabinet Member. H.E Ms. Kanny Diallo, Minister of Guinea for Planning, Trade, and International Cooperation, represented by Ms. BAH Fatoumata Binta, Head of Department. Mr. Mohamed El Aid Benamor, President of the Algerian Chamber of Commerce and Industry, represented by Ms. Ouahiba Behloul, Executive Director. Mr. Ahmed Al Suwaidi, Chairman of Al Suwaidi Group. Mr. Kughonza Emely, President of Uganda Investment Authority. 6
Mr. Patale Koffi, Manager for transports and Port Manager, Director of Trade and Transport Facilitation. Mr. Mohssine Safi, Head of Office Relation with Arab and Islamic Countries, Ministry of Economy and Finance, Morocco. The third session focused on finance, insurance and supporting mechanisms with H.E Ms. Reem Badran, Vice-President and Board Member, Amman Chamber of Commerce, as chairperson of the session. Panellists H.E Mr. Henry Mussa, Minister of Trade, Industry and Tourism, Malawi. Mr. Ahmed Chouaib, Head of foreign trade and private sector division, Operations department, Arab Bank for Economic Development in Africa. Dr. Alaa Ezz, Secretary General, Union of Egyptian and European Chambers. Dr. Christiane Abou Lehaf, Manager, International Cooperation at the African Export-Import Bank. Mr. Zaid Al-Kayed, Senior Relationship Manager of the Islamic Corporation for Insurance of investments and Export. Dr. Jamil El Jaroudi, Seasoned Corporate Executive, Expert Banker in Islamic Finance. H.E Ms. Iyalode Alaba Lawson, National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), represented by Mr. Ahmad Rabiu Ahmad, National Vice-President. The fourth session s main topic concerned the transfer of technology, energy and Information technology and was leaded by Mr. David Hamod, President and CEO of the National US-Arab Chamber of Commerce (NUSACC). Panellists Mr. Steve Rhoades, CEO of Petra System Inc., United States. Dr. Issa Batarseh, Co-Founder, Board Member and Technical Consultant at Petra System Inc., University of Central Florida. Mr. Yaw Owusu, Managing Director, Gateway Innovations, Ghana Cyber City. 7
Mr. Omar Sabbour, Managing Director of Oriental Resorts and Director of Al Ahly Real Estate Development Company. Dr. Afif Barhoumi, Investment Promotion Expert and AICEI Program Coordinator at UNIDO. Mr. Ayman Adhair, Entrepreneur, KPMG Consulting, BearingPoint Partner. The Forum reached the following recommendations: Establish joint-venture projects in light of the expected stability of the situation in both Syria and Iraq, to provide great potential for the provision of services and reconstruction, especially in the sectors of information and construction and basic needs of the population. Increase the volume of trade exchanges and rely on mutual benefits enjoyed by the Arab and African countries and exploit the qualifications and capabilities that enable them to become a unique economic zone that would reach global trade. Create an African-Arab steering committee to strengthen the Arab-African partnership, consisting of nine representatives from the African and Arab chambers of commerce and industry, leaded by the President of the Union of Arab Chambers; and formulate a clear strategy and plan of action for future Arab-African relations. Encourage the establishment of an investment fund for small and medium enterprises in Africa. Organize exchanged programs and training sessions between entrepreneurs in Africa and the Arab world. 8
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