JK Rowling: Inspiring Words Matched to an Inspiring Life

When the first edition of a book published in 1997 already fetches upward of twenty-thousand pounds, it is sure to have represented a literary milestone. Such is indeed the case with JK Rowling’s peerless masterwork Harry Potter and Philosopher’s Stone which had an initial print run of only a thousand copies, half destined for libraries across the UK.

It took Mrs Rowling almost five years, most of them marred by personal tragedies and setbacks, to finish her debut novel. She did so as a single mother, diagnosed with clinical depression, unemployed, and on meagre welfare benefits. Toting her baby daughter from one Edinburgh café to the next, she steadily worked towards the conclusion of an idea formed in 1990 during a train journey from Manchester to London.

Mrs Rowling’s perseverance paid off. The first of what was soon to become a series of Harry Potter books sold close to 110 million copies worldwide. However, it was the eight-year-old daughter of Bloomsbury’s chief executive who sealed JK Rowling’s fate by bluntly stating that her book “was so much better than anything else.” Prior to that verdict, twelve publishers had rejected the manuscript for being too long.

With her seven epic Harry Potter instalments selling a grand total of over 400 million books, Ms Rowling became the world’s most widely read author. The release of the last of the series, Harry Potter and the Deathly Hallows, turned into a global event. On the eve of July 21, 2007, young and older readers alike queued up in long lines in front of bookstores to grab a precious copy at one minute past midnight British Standard Time – the book’s official moment of release. That same day, the seventh Harry Potter title became the world’s fastest-selling book ever with well over 11 million copies sold.

A storyteller of almost unequalled talent, JK Rowling thrives on challenges. Turning to adult literature, she left the Harry Potter world of fantasy behind to tackle societal issues such as class, politics, drugs, and prostitution in A Casual Vacancy. Her adult debut novel promptly sold a million copies and was made in a soon to be released BBC television drama series.

Checking to see if her writing could attract a readership without the name recognition, JK Rowling assumed the pseudonym of Robert Galbraith for the release of The Cuckoo’s Calling, a detective novel. It took the literary critics and editors of The Sunday Times all of three months to unmask Robert Galbraith and confirm that the book had indeed been written by none other than JK Rowling. However, she did prove her point: A Cuckoo’s Calling was exceptionally well received though the book sold only about 1,500 hardcover copies up to the moment the true identity of its author was revealed. Immediately afterwards, sales shot up by 4,000%.

Working her way up to almost immeasurable wealth and fame, JK Rowling has not forgotten about the less happy times she had to experience. Through a charitable trust, financed to the tune of £5.1 million annually, she helps fight poverty and social inequality in Britain. She also wrote two booklets that raised well over fifteen million pound for Comic Relief – an anti-poverty fund. JK Rowling has also donated sizeable amounts in support of research and treatment of multiple sclerosis, the disease her own mother died from while the first Harry Potter book was taking shape.

Her greatest inspiration and motivation, besides the venerable Jane Austen, comes from civil rights activist and campaigner Jessica Mitford (1917-1996). “She instantly became my heroine after I read Hons and Rebels at age 14. She ran away from home to fight in the Spanish Civil War, remained true to her convictions, and never really outgrew her adolescent traits. I even named my own daughter after her.”


PwC Nigeria: Business Reorganisation in Nigeria - Key Tax Considerations

A popular saying has it that change is the only constant in life. This is true, especially in business. Organisations have to continuously re-examine their legal and operating structures to ensure they are fit for purpose and are able to compete favourably in the modern business world. This review often results in some internal and, sometimes, external restructuring activities.

Considering the renewed focus on Africa as the next investment frontier, and given that Nigeria is the largest economy on the continent, investors with operations in Nigeria may find it inevitable to restructure their businesses for various reasons. Whatever the motive, business executives must be aware of the possible tax implications before taking the leap.

Business re-organisation usually takes the form of internal restructuring or mergers and acquisition (M&A). Internal restructuring could involve changes to the functions, assets and risks of different operating units within the organisation or entities within a group as, for example, centralisation of procurement, changes to holding company location, central treasury function, shared services centre and so on. M&A essentially deals with the buying, selling, dividing and combining of different entities that can help an enterprise reposition for sustainable growth.

“Considering the renewed focus on Africa as the next investment frontier, and given that Nigeria is the largest economy on the continent, investors with operations in Nigeria may find it inevitable to restructure their businesses for various reasons.”

The distinction between a “merger” and an “acquisition” has become increasingly blurred especially from a financial reporting viewpoint. However, from a regulatory perspective, the difference has not completely disappeared. Generally, a merger is a legal consolidation of two companies into one entity either through a scheme of arrangement or a scheme of merger.

Under a typical scheme of arrangement, the net assets and business of a company (say A Limited) is transferred to another company (B limited). In this regard, company B’s identity is retained while company A is liquidated. However, under a scheme of merger, companies A and B combine into one. By so doing, both companies lose their individual identities for a new company to emerge which may well be named AB Limited. On the other hand, an acquisition occurs when one company takes over another and establishes itself as the new owner. The target company still exists as a separate legal entity.

The Nigerian Situation

Re-organisations in Nigeria are highly regulated. Entities that want to merge require some forms of notification and approval from the Federal Tax Authority – the Federal Inland Revenue Service (FIRS), and other regulators such as the Securities and Exchange Commission (SEC). The FIRS would usually request for a security or guarantee from any of the parties to the merger in respect of any established or potential tax liabilities.

Also, a court approval is required for a merger of all listed and large private companies. In practice, the entire process takes between 6 to 12 months to complete. On the other hand, these requirements are less stringent in the case of an acquisition.

Investors will typically consider the alternatives of either a share or an asset deal. In a share deal, the buyer acquires shares of the target company. Since the company is acquired intact as a going concern, this form of transaction carries with it all known and inherent liabilities and other risks of the target entity. These risks are thus transferred to the acquirer as all shareholders share proportionately in the residual risks or rewards of the companies they own.

In contrast, the investor simply buys the business or net assets of the target company in an asset deal. This is usually done through a special purpose vehicle that can start the business on a clean slate. This may leave the target company as an empty shell depending on the relative scale of the deal.
Driving Factors
Re-organisations are becoming increasingly common in the Nigerian business terrain due to a number of factors. These include minimum capital requirements stipulated by regulators in some sectors, local content regulations, deals and transactions around disposal of onshore oil and gas assets by international oil companies, divestment by government from power assets, divestment from passive assets by telecommunications companies, sale of rescued banks, the disposal of non-banking subsidiaries by financial groups and so on.

In the past, many investors did not pay sufficient attention to the tax issues when undertaking a re-organisation exercise. The result is usually tax inefficiency, and loss of shareholder value due to unanticipated tax costs. The importance of a robust tax due diligence and planning in a re-organisation cannot be over-emphasised and sometimes, tax issues can be a deal breaker.

Key Tax Considerations and Common Pitfalls

The FIRS will be interested in whether a re-organisation would lead to tax base erosion and possible tax revenue leakage. This, in many cases, means that affected companies may have to pay more taxes where there is no specific waiver in the law.

Generally, where assets are being transferred from one legal entity to another, certain tax liabilities may arise such as value added tax (VAT), capital gains tax (CGT), stamp duty, and claw-back of capital allowances.

In the case of a share deal, there is no VAT, no CGT and claw-back of capital allowance is not applicable but may be subject to a nominal stamp duty payment.

In deciding which option to take, investors need to balance the almost tax free share acquisition approach with the potential legacy risks of the target. Another downside is that the investor in a share deal does not get tax deduction for his investment given that the tax base of the underlying assets remains the same.

Certain provisions exist in the tax law to eliminate or significantly reduce the tax costs in an internal re-organisation. This however requires specific approval of the FIRS which cannot be guaranteed. Another key consideration for internal structuring is transfer pricing (TP) especially between separate legal entities within a group. This is particularly the case given that the TP regulations in Nigeria are applicable to cross border and domestic related party transactions alike.

In summary, the decision as to which approach to use from a buyer’s perspective is determined by how much historic liabilities are within the business, how to minimise the applicable transfer taxes to the seller, and how to maximise tax deductibility of acquisition costs. Some structuring possibilities are available to mitigate transaction taxes and other commercial non-tax liabilities.

A major pitfall to bear in mind is the creation of a holding company or intermediate parent companies. This could happen where a special purpose vehicle (SPV) is set up in Nigeria to acquire the shares of a Nigerian target company. Generally, Nigerian holding structures create significant tax leakages. This is because holding companies are exposed to “excess dividend tax” on any income that has not been subject to corporate income tax such as capital gains and tax exempt income like dividends. The effect of this rule is that intermediate or ultimate holding companies that earn dividend from other Nigerian operating companies or capital gains from the disposal of shares will be caught by the excess dividends tax when they further distributes such profits.

Another peculiar issue in respect of intermediate holding companies is minimum tax. The minimum tax provision requires income tax to be calculated based on other parameters such as net assets, for businesses with low or no taxable profits. However, companies that have 25% direct foreign equity are exempt from minimum tax. The effect is that the operating company may be exposed to minimum tax because its shares are held 100% by a Nigerian intermediate holding company.

Added to this is the commencement rule. Setting up a new SPV as a result of a re-organisation in whatever form could lead to double taxation (effectively up to 60%) of the profits of at least 12 months in the first 3 tax years due to the application of commencement rules.

New companies may apply for tax incentives such as “pioneer” status incentive which confers corporate income tax exemption on such companies for up to five years. This incentive also needs to be carefully planned otherwise it may result in an overall tax cost rather than tax benefit.

About PwC

PwC firms help organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with more than 184,000 people who are committed to delivering quality in assurance, tax and advisory services.


Participants at Cityscape Kuwait Showcase Latest Unique Projects & Services

Cityscape Kuwait, the premier real estate investment and development event in the State of Kuwait, will be opening its doors on December 7 - 9 at the Kuwait International Fairgrounds in Meshref. With less than one month until the opening, the exhibitor numbers have now exceeded 50 exhibitors from the domestic, regional and international markets. Participants are anticipating a premier platform to showcase their latest projects to an audience of investors and real estate professionals, and to network with the industry in a dynamic business environment.

Further to bringing the local real estate market to global attention, Cityscape Kuwait will also help develop the Kuwaiti market towards a new era of creativity and development, with a view of positioning Kuwait as a forward-thinking property market on a regional level.

Parallel to the Cityscape Kuwait exhibition, the Kuwait Real Estate Summit will be held on 7 – 8 December, and is the key networking event for developers, government officials, investors and financiers shaping the real estate industry to share insight, discuss important issues and network with the industry.

"Further to bringing the local real estate market to global attention, Cityscape Kuwait will also help develop the Kuwaiti market towards a new era of creativity and development, with a view of positioning Kuwait as a forward-thinking property market on a regional level."

Participants at Cityscape Kuwait shared their expectations and revealed exclusive products they will showcase at the exhibition.

URC

Ranimah Al Mattar, United Real Estate CO. (URC) Executive Vice President, said that participating in such a reputable and internationally well-known exhibition such as Cityscape Kuwait enables the opportunity to position United Real Estate Company (URC) as a leading real estate developer in the MENA region, especially since it is the first time the exhibition is held in Kuwait. Additionally, it is a platform to showcase URC projects in an arena which hosts real estate companies and professionals as well as end users, potential customers and investors, all in one location.

“Real estate is one of the strongest and most competitive sectors in Kuwait, and thus an immense area for discussion of the latest trends, role of government, laws and regulations. Cityscape’s impact lies in the seminars and panel discussions, which will take place, in addition to networking opportunities and a chance to obtain real feedback from visitors”.

URC will be showcasing its latest developments in the region which include ‘Aswar Residences’, a 75 unit residential community comprised of three-story villas, in the emerging area of New Cairo in Egypt. ‘Raouche View at 1090’ is URC’s prestigious and private residential building located in Beirut and situated directly across from the famous Raouche rocks. Another development showcased at Cityscape will be ‘Abdali Mall’, a design-led, energy efficient mall, situated in the new downtown district of Abdali in Amman, Jordan.

KUWADICO

On the other hand, KUWADICO CEO/ Deputy Chairman, Khalil Al Abdullah stressed on Cityscape’s importance in developing the real estate industry, and was keen to participate in the inaugural Cityscape Kuwait event due to the positive experiences from previous events such as Dubai, Abu Dhabi and Cairo.

He said: “Cityscape Kuwait provides a unique marketing opportunity. Cityscape is well recognized for its reputation and has become a yearly forum for investors from all around the world as well as for individuals looking for residential products”.

Al Abdullah elaborated that at Cityscape Kuwait, KUWADICO will provide visitors with the opportunity to benefit from the last chance of the “payments’ facilities” service. This is related to the potential increase in financial indexes of real estate in Egypt due to the state of the political stability expected post parliamentary elections.

He confirmed that KUWADICO offers distinguished and exclusive real estate products, he said: “we have managed to sell all units of Grand Heights/ part one, two and three and will soon accomplish the selling of all of part four and five”.

Capital Lands

Commenting on this event, Sami Khaled Al Amer, Chairman of Capital Lands Real Estate Development, said: “Our company is one of the pioneers and leading specialists in real estate development and marketing. The company has engaged on strengthening its position by marketing and managing real estate projects and investments with great prices, and leasing services to the owner after the purchase”.

Al Amer further emphasized that all units have been completely sold out in Jawharat Salalah 1 and Jawharat Salalah and currently the company is now working on marketing Jawharat Salalah 3 and Jawharat Muscat which will be at Cityscape Kuwait. The company is also marketing other projects in Oman.

“Our company provides credit facilities in Istanbul. With future upcoming projects in Turkey: Sapanca villa and in Sharjah; investment units with ownership and promising profits”, he ended.

Projacs International

Sameer Abu Shanab, Sr.V.P. & Area Manager of Projacs International Kuwait, Iraq & Jordan said: “Cityscape Kuwait plays a key role in shedding light on real estate leaders in Kuwait. The exhibition is set to have a pioneering role in both developing and supporting the industry”.

Abu Shanab added that the company will have new products on display at the exhibition and expects a great turnover due to the golden opportunity the exhibition provides to meet prospects and potential investors from Kuwait and the region.

Alarjowan

Ehsan Abu Nefisah, CEO and partner of Alarjowan Real Estate said that the company always play a key role in all real estate exhibitions participation, and will play the same role at Cityscape Kuwait at which the company will provide and launch new real estate products, and will put the facility to be accessible to everyone while securing a convenient return on investment

Abu Nefisah elaborated that the Cityscape Kuwait event will be very significant for the State of Kuwait , because it has become customary in Dubai yearly, and to be in Kuwait, this in itself a unique success.

“We expect Cityscape Kuwait to be the most successful real estate exhibition in the region considering the high individual purchasing capabilities of Kuwaiti investors. In fact the Cityscape Kuwait exhibition is expected to achieve great success and will have a bigger echo in the Gulf region”

At Cityscape Kuwait, Alarjowan Real Estate will showcase current and new real estate projects.

Mazaya Holding

Engineer Ibrahm Al Saqabi, CEO of Mazaya Holding said: “At Cityscape Kuwait, the opportunities are extensive. Al Mazaya is one of the Middle East's leading real estate companies and Cityscape Kuwait is the largest real estate exhibition in the country. Clearly it is an outstanding forum to network with our peers, to ascertain trends in the sector and discuss new innovations. It is also an excellent opportunity to reach our audience, to identify the real estate needs of investors from both the region and from all over the world, and to explore which markets are in demand. Reciprocally, investors can take the opportunity to learn about Al Mazaya’s goals and aspirations, ethos, current developments and future plans”.

He added: “One of the major strengths of Cityscape Kuwait is that it manages to bring together a great number of the country's most influential real estate players. It will no doubt shed a greater light on market trends and local demand in Kuwait's real estate sectors - both commercial and residential”

Al Saqabi confirmed that with the industry's continued resurgence as market conditions improve, it is very possible that exhibitors will project their collective confidence onto investors, providing reassurance about the market's health and generating excitement about impending opportunities - which would bode very well for the future of real estate in Kuwait over the short and medium run.

Al Mazaya is continually working to identify, analyse and evaluate a broad variety of opportunities within the local and regional markets. Future plans will be announced at the appropriate stage, but comprehensive and detailed information about our current developments will be available at our Cityscape exhibition.

Al Mazaya is committed to providing the market, shareholders and customers with the best, as well as unique developments and solutions within the real estate sector.

That is why we have built a strongly established reputation for thinking big and creating value, all the while growing and maintaining the trust of large-scale investors, both in the Kuwaiti market and abroad.

Al Mazaya is planning to showcase in the exhibition the current projects at hand for sale & rent and will shed light on the projects in the pipeline.


Overall Tax Cost and Compliance Burden Lower for Businesses around the World

Paying taxes has become easier over the past year for medium-sized companies around the world, the latest report from the World Bank Group and PwC finds. The time it takes an average company to meet its tax obligations dropped by four hours last year, according to the Paying Taxes 2015 study. The report also revealed that the total amount of taxes the average company paid in taxes and the number of payments it made have also declined in the past year. This is a trend seen every year over the ten year period covered by the publication.

The Paying Taxes 2015 report finds that on average, the standard company studied has a total tax rate (as defined under the Doing Business methodology) of 40.9 percent of profits. It makes 25.9 tax payments per year and takes 264 hours to comply with its tax requirements. Over the ten years of the study, 78% of the 189 economies covered in the report have made significant changes to their tax regimes at least once. Time and number of payments required to comply with tax obligations have fallen over the ten-year period, as has the average total tax rate. The fastest rate of decline for the total tax rate occurred during the financial crisis from 2008-2010 with an average decline of 1.8 percentage points per year during that period. The rate of decline then started slowing in 2011.

"Taxes provide the sustainable funding needed for social programs and to promote economic growth."

The average time it takes a medium size company to deal with its tax submissions has fallen by a total of nearly a week and a half over the ten years of the study; reflecting the increased use of electronic filing and payment systems around the world. Of the 379 tax reforms recorded in Paying Taxes reports since 2004, 105 relate to electronic filing.

For the first time since the Doing Business publication was introduced, a second city is measured in the 11 economies with more than 100 million inhabitants. The eleven economies are: Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation, and the United States. In the United States, where the report was launched today, Los Angeles and New York cities are included in the analysis enabling subnational comparison.

"Taxes provide the sustainable funding needed for social programs and to promote economic growth. Policymakers need to find the right balance between raising revenue and ensuring that tax rates and the burden of compliance do not deter participation or discourage business activity,” said Augusto Lopez-Claros, Director, Global Indicators Group, Development Economics, World Bank Group. “During economic downturns, this balancing act is intensified; some public spending may increase, putting pressure on deficits, and governments may need to use tax policy as an economic stimulus.”

“The latest results from the Paying Taxes study show many economies are continuing to make progress in tax reform, but there is still a lot of scope to streamline and simplify tax systems,” said Andrew Packman, leader for Tax Transparency and Total Tax Contribution at PwC. “Tax reform is set to remain an important topic for governments around the world for some years to come, and this will include the need to take on board the proposals from the OECD to modernise the international tax system to cater for today’s globalised business”

Paying Taxes 2015 measures all mandatory taxes and contributions that a medium-size company must pay in a given year. Taxes and contributions measured include the profit or corporate income tax, social contributions and labour taxes paid by the employer, property taxes, property transfer taxes, dividend tax, capital gains tax, financial transactions tax, waste collection taxes, vehicle and road taxes, and other small taxes or fees. Source

For more information about the Paying Taxes study, visit: www.pwc.com/payingtaxes.

The Paying Taxes annual report builds on the World Bank Group’s Doing Business reports’ chapter on Paying Taxes. For more information on the Doing Business report series, visit: www.doingbusiness.org

About the World Bank Group

The World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit www.worldbank.org, www.miga.org, and ifc.org.

About PwC

PwC firms help organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with more than 195,000 people who are committed to delivering quality in assurance, tax and advisory services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

©2014 PricewaterhouseCoopers. All rights reserved


Joanna Lumley: Nepal’s National Treasure

 Considered a “national treasure” in Nepal for her support of the Gurkha Justice Campaign, Joanna Lumley has few if any qualms when it comes to using her fame to promote good causes. As a high-profile activist, she backs Survival International in its quest to protect the right of indigenous tribal people and Compassion in World Farming, an animal welfare organisation that opposes factory farming and the export of live animals.

Best known for her commanding presence on the silver screen – most recently opposite Leonardo DiCaprio in Martin Scorsese’s drama of high finance The Wolf of Wall Street – Mrs Lumley has over time become somewhat of a Jill-of-all-trades.

She is currently the driving force behind the 367-metre long Garden Bridge which is to span the River Thames near Temple Station, London. Mrs Lumley conceived the project in 1998. It calls for a wide pedestrian bridge lined with trees and is to feature a number of gardens. Though the cost has risen to over £170m – with £30m pledged by Mayor Boris Johnson and another £30m promised by HM Treasury – Mrs Lumley fully expects the unique bridge to be completed by 2018. It is already slated to become yet another London tourist attraction.

“Having one of Britain’s most recognised voices, Mrs Lumley also established a successful parallel career as a voice-over artist and narrator.”

Throughout her acting career, Mrs Lumley mostly portrayed upper class characters. Aided by her distinctive voice, she made Purdey – a deceitfully charming spy working for British intelligence in The New Avengers (1976-77) – into a household name. With Nadine Garner, she starred in the 1994 television drama A Class Act playing the part of a classy lady down on her luck.

More recently, Mrs Lumley has turned her attention to documentaries, travelling up the Nile from the Mediterranean Sea to its source in Rwanda, visiting the sites of classical Greece, and searching for Noah’s Ark across three continents.
Having one of Britain’s most recognised voices, Mrs Lumley also established a successful parallel career as a voice-over artist and narrator.

Mrs Lumley was born in Srinagar in the princely state of Kashmir and Jammu, then part of British India. Her father served as a major with the 6th Gurkha Rifles. In 1947, after India gained independence, the family moved to Kent, England. At age sixteen, Joanna Lumley applied for a spot at the Royal Academy of Dramatic Art but was turned down. She became a model instead.

Even lacking a drama school degree, Joanna Lumley managed to break into acting landing her first role in 1966 on the Bruce Forsyth Show. Three years later she already appeared as a Bond girl in On Her Majesty’s Secret Service.

After a distinguished acting career spanning four decades, Mrs Lumley today dedicates a fair chunk of her time to charity and political action. She supports the fledgling Green Party of England and Wales in its attempts to gain a seat in parliament and is an advocate of the exiled government of Tibet. Mrs Lumley is a patron of multiple charities and is deemed to be one of the 100 most influential women in the United Kingdom by the BBC Radio 4 programme Woman’s Hour.


Clean Undustrialisation Critical for Africa to ‘Leapfrog’ Outdated Technologies

[caption id="attachment_8429" align="alignright" width="228"] UN SG Ban Ki-moon[/caption]

Africa needs a green, clean industrialization that leapfrogs outdated, polluting processes and platforms and benefits from new technologies, United Nations Secretary-General Ban Ki-moon said today as the world body marked Africa Industrialization Day.

In a statement on the Day, Mr. Ban explained this that year's theme Inclusive and Sustainable Industrial Development: Agro Industrial Development for Food Security focuses on the links between agriculture and development.

“Agriculture still accounts for the major share of rural household income and employs over 60 percent of Africa's labour force, particularly women,” the UN chief said.

Low agricultural productivity continues to threaten food security in Africa as a whole. And while many African economies have shown impressive growth rates in recent years, increased prosperity does not always translated into inclusive wealth creation.

“Far too often, economic development depends on the extraction of natural resources and on low-skilled labour, which has resulted in a weak manufacturing base and uneven distribution of wealth,” the Secretary-General said.

“I reaffirm the commitment of the United Nations to promote Africa’s inclusive and sustainable industrial development to help ensure an economically prosperous and socially integrated continent.”

Inclusive and sustainable industrialization is a “key stepping stone” towards sustained economic growth, food security and poverty eradication in Africa, he added.

“I reaffirm the commitment of the United Nations to promote Africa's inclusive and sustainable industrial development to help ensure an economically prosperous and socially integrated continent,” he pledged.

In his remarks on the Day, President of the General Assembly Sam Kutesa, a native of Uganda, explained today that accelerating industrialization in Africa goes hand-in-hand with improving productivity and addressing infrastructure deficits, namely in energy, roads, ports and air connectivity.

“While remarkable progress has been made in production…a lot of the surplus is often wasted due to lack of processing capacity and marketing,” Mr. Kutesa said.

In recent years, throughout the continent, agriculture has moved to the forefront of the development agenda at both the regional and national levels. The Africa Union Agenda 2063 lays out a 50-year transformative plan for the modernization of agriculture and agro-business through scaled-up value addition and productivity.

Mr. Kutesa underscored that investments in agriculture must go beyond improvements of on-farm productivity. He emphasized that inventions with the private sector are essential in designing and creating industries, jobs and increasing incomes.

Enhancing cooperation and integration among stakeholders is also essential, as it facilitates better mobilization of resources for infrastructure development, he added.

Within the framework of the Second Industrial Development Decade for Africa (1991-2000), the UN General Assembly, in 1989, proclaimed 20 November Africa Industrialization Day (resolution 44/237).

Commemorating the Day, the UN Industrial Development Organization (UNIDO) will host a symposium in Vienna on 24 November to showcase relevant actions and success stories that promote Africa's industrial development.

The event will bring together representatives from the diplomatic corps, the private sector, non-governmental organizations and other relevant stakeholders. Source


How Thailand’s Solar Power Visionary Built an Industry with a Boost from IFC

One of the winners of this year’s UN Momentum for Change awards has been transforming Thailand’s renewable energy capacity with utility-scale solar farms.

To get finance flowing for what was then a new industry in the country, she worked with the World Bank Group's International Finance Corporation (IFC) and the Clean Technology Fund to access blended finance.

The project is increasing clean energy capacity while helping drive economic growth in one of Thailand’s most impoverished regions.

Thailand’s solar power market was at a standstill in 2008, with solar energy accounting for less than 2 MW of installed capacity. Technology costs were falling, though, and the government was starting incentives for renewable energy developers. Wandee Khunchornyakong, a retired solar panel manufacturing executive, saw potential.

She wanted to help reduce Thailand’s reliance on imported energy, and she believed she could drive economic growth in one of the country’s most impoverished regions at the same time by building utility-scale solar farms. Funding from the World Bank Group’s International Finance Corporation gave her Solar Power Company Group the boost it needed to attract investors to a then-untested arena in Thailand.

Six years and 250MW of solar capacity later, Wandee and SPCG and were recognized today by the United Nations’ Climate Change secretariat with the prestigious Momentum for Change – Women for Results award, part of the UNFCCC’sLighthouse Activities honoring projects from around the world that address climate change as well as wider economic, social and environmental challenges.

Blended Finance in Action

Wandee’s journey to UN recognition required forward thinking and determination, as well as realization by the Thai government that it needed more a diversified, climate-friendly energy supply. Thailand now aims to generate at least 20 percent of energy from renewable sources by 2022.

In 2009, Wandee obtained 34 solar farm permits with a vision of building 200MW solar photovoltaic (PV) capacity in the sunny, rural areas of northeast Thailand.

There was one missing piece: financing. Wandee needed to convince investors to place big bets on her large-scale solar PV plants, but investors were hesitant to provide capital to a largely unproven market. So in 2010, the IFC stepped in to provide finance to SPCG’s two pilot projects of about 20MW of installed solar capacity.

With these initial projects underway, Wandee turned her attention to raising additional long-term finance for follow up projects to achieve SPCG's scale-up goal.

To help sustain the momentum, IFC provided a US$8 million loan “blended” with $4 million in concessional financing from the Clean Technology Fund (CTF) – a multi-donor fund that provides middle income countries with concessional resources for renewable energy and energy efficiency projects. This blended financing enabled SPCG to mobilize enough capital from three local banks to get an additional 12MW capacity of projects over the finish line. The support also sent positive signals to local financial markets about utility-scale solar PV and gave investors more confidence.

In a few short years, Wandee and SPCG were able to attract upwards of $800 million of investment and have delivered 250MW of solar PV capacity in Thailand. This new generation capacity helps avoid over 200,000 tons of CO2 equivalent emissions annually – the equivalent of taking more than 40,000 cars off the road or eliminating the use of almost 500,000 barrels of oil each year.

“Blended Climate Finance is one of the tools that IFC has available to help pave the way for these types of transformational projects to catalyze climate-smart, private sector investments,” said Kruskaia Sierra-Escalante, head of Blended Climate Finance at IFC. “We have been honored to work with Wandee in support of her vision, and are convinced that helping visionary entrepreneurs like her through blended finance investments can help unlock markets.”

Setting an Example for the World

The financial success of the early solar PV projects has helped drive private investment in Thailand’s clean energy sector, prompting industry analysts to pick the Thai solar PV market as one of the most attractive among the world’s emerging economies.

As Thailand’s pioneer in utility scale solar and now, solar rooftop development, Wandee considers her solar farms a model for other countries.

“Solar energy is the ‘endless power’ – it’s clean and available at no cost,” she said. “Other countries can replicate our experience in Thailand and undergo similar transformations that benefit their citizens.”

The UN Framework Convention on Climate Change (UNFCCC) chooses Lighthouse Activities to celebrate each year. The Women for Results award honors Lighthouse Activities that demonstrate the critical leadership and participation of women in addressing climate change. A 25-member international advisory panel selected Wandee as one of three winners this year in the Women for Results category. The Momentum for Change platform is implemented through support of the Bill & Melinda Gates Foundation, the Rockefeller Foundation, and other partners. Source


Mo Farah: Running for Fun, Profit and Charity

 Mo Farah runs for his life. It is what he does and he is pretty good at it too. On the 10,000 and 5,000 metres, Mo Farah is the Olympic, world and European champion. He runs in a great number of other competitions as well and has recently taken to marathons and cross-country. If there is a track, Mr Farah will start running.

Though born in Somalia and living in the United States, Mo Farah is now a British runner. He received a CBE (Commander of the Order of the British Empire) in 2013 and was twice voted European Athlete of the Year (in 2011 and 2012). His recent move to Oregon was inspired by his coach Alberto Salazar who seeks to impose a more energy-saving running style on his pupil. Once safely in the US, Mr Farah admitted to running from the tabloids as well.

Identified as a gifted athlete at age nine by his physical education teacher at London’s Feltham Community College, young Mo Farah initially dreamt of a football career with Arsenal. Plan B saw him becoming a car mechanic. However, Mo Farah’s life was to run a different course. After joining the Borough of Hounslow Athletics Club at the prodding of his teacher, Mo Farah soon started claiming titles on the track.

“Now firmly established as Britain’s greatest runner of all time, and one of the world’s best to boot, Mo Farah has turned his attention to helping others.”

In 2001, Mr Farah won his first major title on the 5,000 metres at the European Athletics Junior Championship. Over the next decade, Mo Farah trained with, and learned from, the world’s best. He moved in with a group of Kenyan runners that included the 10,000 metre world champion Micah Kogo. These athletes not only provided plenty of inspiration, they spurred Mo Farah on as well.

Now firmly established as Britain’s greatest runner of all time, and one of the world’s best to boot, Mo Farah has turned his attention to helping others. With the well-funded Mo Farah Foundation, he aims to help alleviate poverty and improve health conditions both in Britain and the Horn of Africa. In Somalia and Kenya, the foundation is particularly focused on easing the plight of people displaced by internal strife and droughts. In the UK, the Mo Farah Foundation aims to help young people from deprived backgrounds find opportunity through sports or otherwise.

Contrary to many of his peers, Mo Farah does not shun politics and joined a recent campaign to urge the UK government to clamp down on British multinational companies that actively avoid paying taxes in the struggling emerging markets they operate in and take profit from. He has also repeatedly spoken out against profiling by US immigration agents who detain him frequently for extensive questioning, a treatment apparently stemming only from having a first name deemed suspicious: Mohamed.

Still, profiled or not, Mo Farah keeps running. Odds are that he is not even close to the ultimate finish line. Even at 31, his career on the track seems only to have just started.


New World Bank Initiative to Help End Wasteful Energy Subsidies

A new World Bank-ESMAP facility helps countries develop and implement effective, sustainable energy subsidy reform programs that protect the poor from the impact of higher energy prices.

Such subsidies primarily benefit higher-income earners rather than the poor, but if subsidies are lifted suddenly, the poor can be hit hard.

Energy subsidies are creating huge budget pressures for governments and raise energy consumption, contributing to pollution and greenhouse gas emissions.

[caption id="attachment_8450" align="alignright" width="323"] Petrol tanker driving along the rural road, Russia Gennadiy Kolodkin / World Bank[/caption]

Countries around the world are finding that energy subsidies pose a threat to their economic, environmental and fiscal health. Despite originally being designed to help the poor and middle class, in most cases the benefits of energy subsidies have largely gone to higher income earners.

“Subsidized prices for fuel and electricity may have been put in place with the best of intentions, but in general the net effect has been to undermine sustainable growth and shared prosperity,” said Anita Marangoly George, senior director of the World Bank’sEnergy and Extractives Global Practice.

However, such subsidies, once in place, are very difficult to remove. Powerful vested interests grow around subsidies, and the poor, while not the primary beneficiary of these programs, can be seriously affected if energy prices rise too quickly. Worldwide energy consumption subsidies were estimated at $492 billion in 2011, the equivalent of 0.7 percent of global GDP, or over 2 percent of total government revenues.

"We have to take into account the long-term impact of fuel price adjustments, since we know that the poor and near-poor will cut health and education spending as a coping mechanism. We also need to make the distinction between ‘painkillers’ – short-term cash handouts – and ‘vitamins’ – long-term social safety nets."

- Mohamad Ikhsan, Professor, University of Indonesia

A new World Bank facility is now available to help countries reform their energy subsidies and put in place social protection measures to help the poor during this transition. The Energy Subsidy Reform Technical Assistance and Delivery Facility, led by the Bank’s Energy Sector Management Assistance Program (ESMAP), is already supporting World Bank engagements in a number of regions.

The facility was announced at a knowledge exchange conference held in Copenhagen on October 22, 2014. The event, organized by ESMAP, brought together senior representatives from 25 countries to look at what has worked to date – and what has not – as countries attempt to remove harmful energy subsidies. The event was co-hosted by Denmark’s Ministry of Foreign Affairs and opened by Foreign Minister Martin Lidegaard.

Presentations at the conference made it clear that there is a sense of urgency among countries to reverse course on energy subsidies, in part because of the huge fiscal pressures they can create. In some cases governments are spending more than a fifth of their annual budgets to keep fuel and electricity prices at artificially low levels. There is also increasing concern about the overconsumption of fossil fuels due to subsidies and their associated contribution to pollution and greenhouse gas emissions.

“Governments are ready to take action, but reform is difficult and complex,” said Anita Marangoly George, speaking at the conference. “It’s important to take into account economics, as well as timing, social structure, and the political environment.”

Speakers emphasized the importance of taking the right approach to protecting the poor as subsidies are lifted, and ensuring that compensation is handled correctly.

“We have to take into account the long-term impact of fuel price adjustments, since we know that the poor and near-poor will cut health and education spending as a coping mechanism,” said Professor Mohamad Ikhsan of the University of Indonesia. “We also need to make the distinction between ‘painkillers’ – short-term cash handouts – and ‘vitamins’ – long-term social safety nets.”

Another session at the conference focused on public communications and how best to build consensus towards reforms. Participants agreed that government credibility, coordination and clearly articulated rationales for reform are essential ingredients for success.

Other topics covered at the conference included managing price fluctuations, independent regulation of energy pricing, and how best to manage political challenges. Among the country experiences presented at the conference were those of Chile, Indonesia, Iran, Kenya and the Philippines.

The $20 million ESMAP energy subsidy reform facility will support a wide range of activities to help countries ensure that reform efforts are successful and sustainable. These include:

assessments of the social, economic, environmental and political impact of subsidies, and of reforms;

support for consensus building through policy dialogue, consultations and communications strategies;

design of subsidy reform approaches, transition plans, subsidy delivery mechanisms, and social protection measures; and

support to governments throughout the process of implementation.

Work under the facility has been ongoing at the country level for over a year in the Middle East, East Asia, Central Asia and Latin America and the Caribbean.

In Tajikistan, the facility supported an assessment of how energy deprivation is affecting households, taking a broad look at energy security, affordability and coping mechanisms across different populations in the country. As part of this, it also explored the conditions under which an electricity tariff increase would be acceptable for consumers, and what measures could be put in place to cushion the impact of rising energy expenditure for the poor and vulnerable. In Vietnam, the facility supported work to assess how low carbon development scenarios would impact costs of electricity and the need for future price changes to avoid subsidies.

In addition to supporting country action on subsidy reform, the facility also supports knowledge exchange, encouraging peer learning among client countries on reform approaches, pricing strategies, communications and consensus building, and mitigation measures such as social protection mechanisms.


Partnering to Support Uganda’s Roads PPP Program

[caption id="attachment_8457" align="alignright" width="321"] WBG[/caption]

The national road transport network is the most dominant mode of transport in Uganda. Over 90% of passenger and freight traffic travels through the network. It also provides vital transport corridors to the land-locked countries of Rwanda, Burundi, Eastern Democratic Republic of Congo (DRC) and Southern Sudan to the Port of Mombasa in Kenya. Much of the country's road network requires substantial development to meet current and forecast traffic demands to promote access and equal distribution of economic and social development across the country.

To meet the increased demands on the road network, the Government of Uganda is committed to fund a sizeable program of road works over a 5 year horizon.  Public Private Partnership (PPP) arrangements are considered to meet the funding gap through the use of private sector capital. Since 2000, PPIAF has provided technical assistance to the government of Uganda (GOU) to create an environment that enables private investment in infrastructure. A series of three technical grants have supported the GOU to develop the PPP framework at the national level to identify a pipeline of PPPs and strengthen the institutions implementing one of the priority projects identified –the Kampala-Jinja expressway.

[caption id="attachment_8459" align="aligncenter" width="375"] Outcomes: In 2010, the Ugandan Cabinet approved the PPP Policy and authorized the drafting of the PPP Bill by the First. WBG[/caption]

PPIAF Support

In 2007, PPIAF funded a study to help GOU develop a comprehensive policy, legal and institutional framework for the development and implementation of PPPs for procuring and financing infrastructure projects and services. The study recommended the establishment of a PPP law and PPP unit. The grant also supported the development of a draft PPP Policy Outline in 2008.

In 2011, PPIAF provided follow-up support to identify and prioritize potential PPP projects. Ten priority projects were identified, including the Kampala-Jinja road, which is now under implementation with the International Finance Corporation (IFC) appointed as the transaction advisor.

In 2014, to support the institutional capacity building of the implementing agency, the Uganda National Roads Authority (UNRA), PPIAF approved a grant in partnership with the Trademark EA (TMEA) and IFC to support a tolling policy; develop an investment appraisal guidance tool as well as support the PPP implementation capacity of the UNRA. The support is focused on developing a tolling strategy that would provide revenue and strategic guidance to the GOU on transparency, fairness and stability in toll setting and collection as well as the establishment of key internal processes to identify, appraise, manage and implement projects throughout the PPP project cycle.

Parliamentary Counsel in the Ministry of Justice and Constitutional Affairs. The PPP Bill was passed in July of 2014.

The Bill seeks to govern the relationship between the government and the private party in PPPs and to provide guidelines and procedures for the development and implementation of PPP projects.  One of its key objectives is the creation of a unit to oversee the implementation of PPPs. The priority PPP project pipeline/action plan was also adopted and identified the Kampala-Jinja expressway as a major potential project. In May 2014, IFC's Advisory Services in PPPs signed an advisory agreement with the GOU, through the UNRA, to develop a 77 km Greenfield expressway between Kampala and Jinja.


Nearly 500,000 New Residence Visas Issued in Dubai in First Half of 2014, Indicating Flourishing Business for Real Estate

[caption id="attachment_8464" align="alignright" width="212"] Dubai[/caption]

Exhibitors upbeat on growth graph of UAE property sector, based on factual demand from first renters, buyers and investors.

A total of 17,289 real estate transactions worth AED 37.5 billion were conducted in the first half of 2014, according to figures released by Dubai Land Department (DLD) and quoted by the organisers of The International Property Show 2015. The leading show attributes this remarkable movement in the property market to the booming population of the UAE, which mainly drives the demand for property units.

In 2014, according to official statistics, 478,451 new residence visas were issued in Dubai in the first half of the year. Josine Heijmans, Exhibition Director, Strategic Marketing & Exhibitions, organizers of The International Property Show 2015, says that UAE’s rising population will ensure strong demand for properties in the foreseeable future. She added that the real estate sector growth is driven by concrete demand from residents (first-time buyers and renters) as much as investors.

Heijmans said there was high optimism among exhibitors, most of whom are real estate developers, for the prospects of the real estate sector and higher demand in coming years, and added that the show was positioned as an ideal platform for showcasing units for retail customers over three days.

"Meticulous planning and strong infrastructure make Dubai a preferred property market, with easy connectivity between business locations and residential communities."

Rents in Dubai have been generating higher yields for investors and owners, especially over the past two years. More money is being injected in the construction sector in different areas of the Emirate.

Heijmans added: “The show will witness the biggest participation in terms of number of companies and we expect big investments deals to be signed on the exhibition floor.”

The International Property Show 2015 is a unique show that allows even end users to buy units directly from exhibitors. It is also supported by several government entities, which gives greater confidence to buyers. Exhibitors look at the show as an ideal platform to establish partnerships, expand operations, and adopt latest global practices in the real estate and property relevant sectors.

Meticulous planning and strong infrastructure make Dubai a preferred property market, with easy connectivity between business locations and residential communities. When investors look up for potential hotspots, they find several interesting options for investment across the emirate.

“We are seeing a huge interest from both exhibitors as well as investors aiming to visit the show, months ahead of the actual event. This is very promising and demonstrates the growing stature of the exhibition.”

UAE’s leading property portal Bayut.com was announced the official online property portal partner of The International Property Show. Bayut.com helps residents, property seekers and investors stay informed and make calculated decisions about real estate. Haider Khan, CEO Bayut.com, said: “We are delighted to be the official media partner of The International Property Show and we are confident that the event will be very significant for the UAE property sector.”

The International Property Show was launched by Strategic Marketing & Exhibitions more than a decade ago. It is organized at the end of the first quarter each year, when companies and investors are clear about the potential for the growth of their operations and have a better understanding of their investment budgets.

Heijmans said: “The commercial, residential, office and retail segments represents the majority of overall exhibitors at The International Property Show 2015. Exhibitors are upbeat about the growth of the local sector, especially in residential, office and retail segments.”


Temple Grandin: Autism Drives Academic Excellence

The lady thinks like a cow. In the case Temple Grandin (66), that is a compliment. Dr Grandin has singlehandedly changed and much improved the way livestock is handled in the US and across the globe. Her redesigned feedlots, stockyards and meat processing plants reduce stress levels in cattle and ensure humane slaughtering practices. As an animal welfare advocate and a scientist, Dr Grandin developed a new range of livestock handling and holding practices that have now become the de-facto standard in both the US and Europe.

In her now famous essay Animals Are Not Things, Dr Grandin argues that while legally animals may be considered property, they also hold certain rights. While the owner of, say, a screwdriver may grind and pulverize that object, a rancher may not inflict pain or suffering on his animals. It is this distinction that forms the premise of Dr Grandin’s work.

Dr Grandin is not just a distinguished professor of animal science at Colorado State University, she is also a bestselling author, a private consultant to the livestock industry, and an activist for people suffering – like she is – from autism. In fact, autism is central to Dr Grandin’s life. It is because of this condition – and the attention to minute detail and sensory acuity it brings – that she was able to relate to the stresses that livestock undergo as they are moved from the range to feedlots to final destination. “I think using animals for food is an ethical thing to do, but we’ve got to do it right. We’ve got to give those animals a decent life, and we’ve got to give them a painless death. We owe the animal respect.”

Dr Grandin stresses that families and care providers must provide serious time to work with autistic children so that they may reach their full potential. “You can’t just let them sit in the corner. You’ve got to really work with them.” That is what her parents did. While middle and high school were “unpleasant experiences”, Temple Grandin found her groove at the Hampshire Country School for gifted children from where she proceeded to obtain a doctoral degree in animal science from the Ohio State University.

Curiously enough, Dr Grandin does not necessarily support medical research efforts that try to find a cure for autism. She would much rather see an improvement in the educational approaches to neurodiversity considering that diverse neurological conditions correspond to normal variations in the human genome. Proponents of neurodiversity such as Dr Grandin argue that neurological variations should be recognized and respected as a social category similar to gender, ethnicity, sexual orientation, or disability.”

Featuring on the Time 100 list of the world’s most influential people since 2010, Dr Grandin has received a great many awards and honorary degrees in recognition of both her work as a scientist and an activist for the rights of autistic people. She was also portrayed in semi-biographical HBO movie that garnered no less than 15 Emmy nominations in 2010.


World Bank: Vietnam Sees Early Signs of Economic Recovery

[caption id="attachment_8473" align="alignright" width="244"] Hanoi, Vietnam[/caption]

Hanoi, December 3, 2014 – Early signs show that Vietnam’s economic recovery is on track, says the World Bank’s Taking Stock report, released today. Vietnam’s economic growth is expected to improve from 5.4 percent in 2013 to 5.6 percent in 2014.

This positive outlook is largely due to the country’s ongoing macroeconomic stability and continued strong performance of the foreign-invested manufacturing export sector. Positive macroeconomic conditions contributed to Vietnam’s improved sovereign risk ratings, enabling US$1 billion of government bonds to be issued on international capital markets on favorable terms.

“Vietnam’s potential for much more rapid growth can only be realized if substantial progress is made in addressing distortions such as in the state enterprise and banking sectors, that tax the economy’s efficiency and productivity,” says Victoria Kwakwa, World Bank Country Director for Vietnam. “Stepping up this reform agenda and strengthening the business environment are critical for moving forward.”

The report finds that underlying the broad pattern of economic recovery, the performances of foreign-invested and domestic firms remain dichotomous. The foreign-invested sector continues to be a significant source of growth, while the domestic private sector remains subdued, as reflected in the rising number of domestically-owned businesses that have closed or suspended operations.

“Vietnam’s potential for much more rapid growth can only be realized if substantial progress is made in addressing distortions such as in the state enterprise and banking sectors, that tax the economy’s efficiency and productivity.”

- Victoria Kwakwa, World Bank Country Director for Vietnam

Over the medium term, Vietnam’s macroeconomic outlook is good, with continued modest GDP growth and a further consolidation of macroeconomic stability. The outlook is subject to two key risks: (i) relatively slow progress on SOE and banking sector reforms could adversely impact macro-financial conditions; (ii) adverse turn of events in the global economy could undermine Vietnam’s growth prospects, given the relatively large size of the export sector.

The report has a special section on Financial Sector Assessment, which summarizes the major findings of the recent Financial Sector Assessment Program. The report highlights a complex array of institutional and regulatory factors that are responsible for the weak performance of the financial sector. The government has announced a comprehensive reform program designed to address these problems faced. The FSA provides a broad set of policy recommendations that can be used to operationalize the government’s program. Source

New World Bank Report, Taking Stock, Shows Increase in Vietnamese Economic Growth


SWIFT Enters Into Real-Time Retail Domestic Payments

New project win to build an innovative solution for domestic payments in Australia is the first major milestone for the cooperative.

SWIFT announces plans to develop real-time retail domestic payment solutions. SWIFT is creating an offering that allows domestic retail payments to be made instantly between financial institutions and their customers’ accounts.

SWIFT’s first delivery in this area will be the New Payments Platform (NPP), a new Australian infrastructure. Developed together with leading local financial institutions, the platform is expected to go live in 2017.

SWIFT’s real-time payments solution will use innovative peer-to-peer technology, reusing and reconfiguring SWIFT components already deployed in proven market infrastructure projects, and building on SWIFT interfaces to drive efficiencies for customers.

This move is a strategic response from SWIFT to the clear global shift towards real-time retail payments. Today, approximately 15 countries operate domestic real-time retail payments systems and another eight countries are in the process of, or are considering, rolling one out.

"SWIFT’s real-time payments solution will use innovative peer-to-peer technology, reusing and reconfiguring SWIFT components already deployed in proven market infrastructure projects, and building on SWIFT interfaces to drive efficiencies for customers."

“The trend in retail payments is having a profound impact on the payments ecosystem and is highly relevant to SWIFT’s core business,” says Gottfried Leibbrandt, CEO, SWIFT. “With SWIFT’s instant retail payments solution, banks can leverage their existing SWIFT infrastructure, resulting in a cost-effective solution with word-class resiliency. As a strategic partner to many payment market infrastructures across the globe, SWIFT’s move into real-time retail payments is a natural extension of our business as we strive to meet the changing needs of domestic payment systems and their customers worldwide.”

Australia selects SWIFT to provide New Payments Platform

On 2nd December, Australia’s New Payments Platform (NPP) Steering Committee announced it has selected SWIFT to provide the infrastructure for its New Payments Platform (NPP) project, a new Australian fast payments infrastructure. The new innovative platform will provide Australian businesses and consumers with a fast, versatile, data-rich payments system for everyday payments. The NPP is being developed collaboratively by 12 leading financial institutions in Australia. It is the local industry’s response to the Reserve Bank of Australia's strategic objectives on payments innovation, and implements the former Real Time Payments Committee's proposal on innovation in the domestic payments system. [1]

There will be three main technology components to the solution developed by SWIFT for the Australian community:

The network – a Domestic Messaging Channel that enables participants to exchange a high volume of messages in-country, with low latency on a 24x7 basis;

The switch - a payments gateway that orchestrates clearing and settlement flows; and

The addressing database – a proxy addressing lookup service allowing payment routing based on personal identifiers such as a mobile phone number or email address.

Alain Raes, Chief Executive, of EMEA and Asia Pacific at SWIFT, says “Australia is one of a growing number of countries looking to implement new domestic payments systems in order to achieve faster and more cost-efficient payments. This is a significant first step for SWIFT in this space. We are very excited by the project and look forward to partnering with the community on this initiative.”

Beyond Australia, SWIFT is now exploring how best to deploy these capabilities in a standardised way across multiple markets, generating economies of scale for its customers

About SWIFT

SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect more than 10,500 banking organisations, securities institutions and corporate customers in more than 200 countries and territories. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest.

For more information, visit www.swift.com or follow on Twitter: @swiftcommunity and LinkedIn: SWIFT

For more information, please contact Randa Mazzawi or Mayssa Makhlouf on: +971 4 3403005 or swift@boroujconsulting.com

[1] http://apca.com.au/docs/real-time-payments/real-time-payments-proposal.pdf


Pope Francis: Repairing the Roman Catholic Church

Is he merely a window dresser or could he actually be the great reformer most Roman Catholics have been patiently waiting for? Since his election in March 2013, Pope Francis – formerly known as Jorge Mario Bergoglio from Argentina – has been shaking things up at the Holy See.

Immediately after his investiture, Pope Francis invited eight cardinal advisers – all nonconformists – to form a council that is to offer outside guidance on the restructuring of the Roman Curia – the Vatican’s rather dysfunctional, stuffy and self-serving bureaucracy. Leading ecclesiastical historian Alberto Melloni, professor at the University of Modena, described this as the biggest step in church history for the past ten centuries.

In a sign that he prefers to bypass and even ignore Vatican bureaucracy, Pope Francis arranged his visit to the Italian island Lampedusa – awash with boat refugees from Africa – without consulting the Holy See’s State Secretariat – a sort of prime-minister’s office – and even tried to book his own flight using Alitalia’s website.

Pope Francis has also turned his attention to the scandal-ridden Vatican Bank. The members of the bank’s supervisory board, exclusively made up of cardinals, were told to forego their annual EUR25,000 stipend. The pope then promptly proceeded to appoint a five-member commission of outside financial experts of “impeccable moral rectitude” to investigate allegations of money-laundering and other improprieties. The experts, who are to report directly to him, were handed hand-written notes granting them full and unrestricted access to all the bank’s documents and archives, doing away with the Vatican’s traditional secrecy.

Pope Francis hopes to lead his battered church by example. He ditched most of the monarchical trappings of his office and refused to take up residence in the papal palace, opting instead for a modest hostel. This pope also doesn’t mind carrying his own bags, sharing simple meals at the refectory table, and in fact leaves no opportunity unused to assert his humility.

The lack of pretence also transpires on a theological level. Popeww Francis insists on returning his church to the basics, emphasising the message of love, the mission of caring for the poor, and prioritising the concern for the persecuted. Church dogma is to take a second seat to these.

A third seat is reserved for the Vatican’s long-standing obsession with abortion, gay marriage, and contraception. Pope Francis made it abundantly clear that, though no change of church doctrine is being contemplated, he does want to shift the emphasis of the church’s action. “We have to find a new balance otherwise even the moral edifice of the church is likely to fall like a house of cards, losing the freshness and fragrance of the gospel.”

In Latin America and many other parts of the developing world, the reordering of church priorities imposed by Pope Francis is welcomed as a vindication, of sorts, of the previously much-maligned Theology of Liberation that seeks to engage the church in the political and economic struggle of the poor. Earlier popes condemned this theology as Marxist and did not hesitate to silence proponents such as Brazilian theologian Leonardo Boff who – to his own amazement – has now been invited to submit his writings to the Vatican for re-evaluation.

Pope Francis, both the first Jesuit and the first Latin American to rule over the church, aims to be true to the saint whose name he adopted – St Francis of Assisi. In the 12th century, his namesake is reported to have received a message from a crucifix: “Francis, repair my church for it is in ruins.”


Mozambique Gets US$110 Million from World Bank to Improve Business Environment, Public Financial Management, and Social Protection

[caption id="attachment_8491" align="alignright" width="154"] Maputo, Mozambique[/caption]

WASHINGTON — The World Bank Board of Executive Directors approved today US$110 million to support the Government of Mozambique’s State Budget and its poverty reduction plan (PARP). This International Development Association (IDA) funding is provided under the tenth Poverty Reduction Support Credit (PRSC X) program that supports the Government’s programmatic reform agenda agreed upon with the World Bank in the context of general budget support.

Mozambique’s economic growth has averaged 7.4 percent over the past two decades. However, this rapid growth has not been accompanied by a concomitant poverty reduction.

“The reforms supported by this operation will precisely contribute to a more inclusive growth that addresses the weakened relationship between growth and poverty reduction,” said Mark Lundell, World Bank Country Director for Mozambique, Madagascar, Mauritius, and Seychelles. “This operation represents our commitment to the country’s development priorities and its poverty reduction agenda. The successive PRSC series has facilitated improvements in public sector capacity, greater efficiencies of public finance management, and improvements in the country’s business environment.”

"Mozambique’s economic growth has averaged 7.4 percent over the past two decades."

This tenth PRSC will continue to assist the Republic of Mozambique in improving its business climate and increasing transparency in the management of extractive industries; strengthening social protection; and enhancing public financial management.

“Reforms to simplify business licensing and registration support private sector growth and employment creation. Likewise, improving public investment management systems will result in investments with higher returns and a bigger impact on the well-being of the population,” said Enrique Blanco Armas, World Bank Task Team Leader for the PRSC and Senior Economist. “This project also supports the scaling up and improvements of social protection programs, which will enhance the Government’s ability to support the poorest and most vulnerable.”

The PRSC series is an important component of the World Bank Country Partnership Strategy (CPS) with Mozambique and supports the institution’s twin goals of ending extreme poverty and promoting shared prosperity. Under the CPS the World Bank commits to align its support to the national budget process and envisages consecutive PRSCs as an important element in supporting the Government’s poverty reduction agenda.Source


Trade Balance of Developing and Developed Countries Continues to Converge, UNCTAD Statistics Show

UNCTAD Handbook of Statistics 2014 shows that developing and transition economies run large trade surpluses for merchandise and services trade.

[caption id="attachment_8497" align="alignright" width="129"] Geneva: UN[/caption]

Geneva, 9 December 2014 – Developing economies ran a combined merchandise and services trade surplus for 2013 of $177.6 billion, the UNCTAD Handbook of Statistics 2014 [1] reveals, representing a fall of 40 per cent as measured in current prices compared with 2012 and 63 per cent compared with the peak in 2007. Transition economies also ran a trade surplus in 2013 of $128.6 billion. This represented a fall compared with the previous year (21 per cent) and with the peak in 2011 (33 per cent). Developed economies ran a trade deficit of $65.3 billion in 2013, down from almost $400 billion the previous year; a reduction of 84 per cent (current prices).

This overall convergence is being driven by a convergence in merchandise trade. However, trade balances for services of developing and developed countries continue to diverge. As trade in services is becoming more important, it suggests that the overall convergence may not continue indefinitely.

[caption id="attachment_8500" align="aligncenter" width="586"] Chart 1: Merchandise and total trade balance 1996–2013.
(Billion dollars and current prices). Source: UNCTADStat[/caption]

Trade balances varied significantly at the regional level. The overall trade surplus for developing countries was driven by Asia, which operated a surplus of $403.8 billion in 2013. In contrast, developing countries in Africa and the Americas ran aggregate trade deficits of $100.4 billion and $114.8 billion, respectively. Developed countries in Europe ran an overall trade surplus of $630 billion, whereas developed countries in the Americas and Asia ran deficits of $566.4 billion and $130.1 billion, respectively.

The direction of trade balances also varied markedly between merchandise and services trade. In 2013 there was a continuation of patterns seen in previous years in which developing and transition countries ran a trade surplus for merchandise trade ($451.9 billion and $187.2 billion, respectively), while developed countries ran a deficit of $619.2 billion. For trade in services, the opposite was true: developing and transition countries ran trade deficits ($274.3 billion and $58.6 billion, respectively), while developed countries operated a surplus of $553.9 billion. Separating merchandise and trade in services also illustrates that the convergence in overall trade balances between developing and developed countries evident in recent years is being driven by merchandise trade. The opposite is true for services, where the trade imbalance continues to grow.

[caption id="attachment_8502" align="aligncenter" width="589"] Chart 2: Merchandise and services trade balance 1996–2013.
(Billion dollars and current prices). Source: UNCTADStat.[/caption]

The UNCTAD Handbook of Statistics 2014 also shows that total world exports in 2013 were valued at $23.6 trillion (up almost 3 per cent from 2012), of which merchandise trade accounted for 80 per cent ($18.8 trillion).

Along with providing detailed statistics on international merchandise and services trade, the 2014 edition also provides investment, commodity prices, maritime transport and other economic and social data, for all individual economies for which data are available. In addition, it includes figures for geographical regions, various economic groupings and world totals. The Handbook aims each year to provide data for the analysis and evaluation of world trade, investment, international financial flows and development. To the extent possible, UNCTAD provides estimates to fill in data gaps in order to furnish the most complete data sets.

The Handbook is available in printed form and on DVD. In addition, the data underlying the findings of the Handbook are available online at UNCTADStat (http://unctadstat.unctad.org), a continuously updated statistical database.

References

[1] The Handbook (Sales No. B.14.II.D.6, ISBN: 978-92-1-012077-7) may be obtained from the United Nations Publications Sales and Marketing Office at the address mentioned below or from United Nations sales agents throughout the world. Customers may send orders or inquiries to: United Nations Publications Sales and Marketing Office, 300 E 42nd Street,
9th Floor, IN-919J New York, NY 10017, United States of America. Tel: 1 212 963 8302, fax: +1 212 963 3489, e-mail: publications@un.org, https://unp.un.org.

Copyright © 2014 United Nations Conference on Trade and Development (UNCTAD), All rights reserved.

Email: unctadpress@unctad.org
Telephone: +41 22 917 58 28 or +41 79 502 43 11


Stephen Hawking: In the Footsteps of Sir Isaac Newton

To grasp the size, shape and nature of the universe requires a vast mind such as only very few possess. However, in order to truly understand space, and how it came about, a mind the size of Stephen Hawking’s is needed. Where even renowned physicists struggle to keep up, Mr Hawking effortlessly connects the dots, plays with the resulting lines and draws conclusions that cause universal awe.

For all its genius, Mr Hawking’s mind is not an open book: It operates at a level and pace that is quite peerless. To convey the physicist’s thoughts to the general public requires a process of simplification which constitutes a tour-de-force in itself. In the mid-1980s, editors of US publishing house Bantam Books laboured incessantly for almost three years to make Mr Hawking’s thoughts on the origins of the universe accessible to all. The resulting A Brief History of Time: From the Big Bang to Black Holes went on to sell well over ten million copies. The book was translated into 35 languages.

Warned by his publisher that for every equation included, readership would plummet by about 50%, the British physicist reluctantly ejected all formulae from his script with the single exception of Albert Einstein’s mass-energy equivalence E = mc2. From the onset, Mr Hawking wanted to share his thoughts and ideas with as broad a readership as possible. Still, A Brief History of Time – a depository of mind-blowing concepts – requires the frequent re-reading of passages, and even entire chapters, if its meaning is to be fully understood.

In the original introduction, since removed for copyright reasons, American astrophysicist Carl Sagan called Stephen Hawking a worthy successor to both Isaac Newton and Paul Dirac, the British theoretical physicist who was instrumental in the development of quantum mechanics.

Though Stephen Hawking would likely have excelled in any field of his choosing, physics and chemistry were not his first choice: He’d much rather have studied mathematics at Oxford. As it happened, the life of a physics student did not offer young Stephen much of a challenge. In fact, he was bored for most of the time. He stumbled through and landed a first class BA degree – the ticket to a graduate degree from Trinity Hall Cambridge.

Stephen Hawking soon established a reputation for academic brilliance. In 1964, he successfully challenged the work of Professor Fred Hoyle, a noted astronomer famous for his rejection of the Big Bang Theory.

As he set off on his career in science by the mid-1960s, Stephen Hawking faced increasingly tough battles with his own failing physique. Suffering from a motor neuron disease akin to amyotrophic lateral sclerosis (ALS), doctors in 1963 gave the then 21-year old Stephen Hawking just two years to live. In a shining example of mind over matter, Mr Hawking proved them dead-wrong.

Today, 51 years later, bound to a wheelchair and hooked to a speech computer, Mr Hawking keeps the world spellbound with scientific theories on infinity, eternity, time travel, expanding, imploding and parallel universes, and black holes that gobble up time, space and anything else that dares come close.


UN Reports Potential for Gradual Return to Global Growth, Foresees Risks, Uncertainties

[caption id="attachment_8515" align="alignright" width="195"] Director of the Development and Policy Analysis Division for the UN Department of Economic and Social Affairs Pingfan Hong. UN Photo/Devra Berkowitz[/caption]

Global economic growth is forecast to continue increasing over the next two years, the United Nations reported today, despite legacies from the financial crisis continuing to weigh on growth, and the emergence of new challenges, including geopolitical conflicts such as in Ukraine, and the Ebola outbreak in West Africa.

The UN World Economic Situation and Prospects 2015 (WESP) report, which was launched today, estimates growth in 2015 of 3.1 per cent and in 2016 of 3.3 per cent. Those figures are higher than the 2.6 per cent growth recorded this year, where the pace of expansion has been moderate and uneven.

“While some economic indicators are positive and moving in the right direction which points to the potential for a gradual return to consistent economic growth,” said Pingfan Hong, Director of the Development and Policy Analysis Division for the UN Department of Economic and Social Affairs, “many risks and uncertainties could dash efforts to get the global economy on track and moving forward.”

"The UN World Economic Situation and Prospects 2015 (WESP) report, which was launched today, estimates growth in 2015 of 3.1 per cent and in 2016 of 3.3 per cent."

Over the course of 2014, unemployment remained historically high in some regions, though appeared to have stopped rising, while inflation varied, despite being broadly subdued. Trade growth was expected to pick up, while fiscal tightening was expected to continue at a slower pace in most developed economies.

[caption id="attachment_8517" align="aligncenter" width="617"] World gross product: Global growth is forecast to strengthen slightly to 3.1% in 2015 and 3.3% in 2016.[/caption]

Foreign direct investment inflows remained the most stable and relevant source of financing for developing countries, while capital flows were sensitive to changes in risk appetite. The dollar was expected to remain strong.

To reduce risks and meet challenges, the report says, it is imperative to strengthen international policy coordination. In particular, macroeconomic policies worldwide should be aligned toward supporting robust and balanced growth, creating productive jobs, and maintaining long-term economic and financial stability.

Analyzing countries and regions around the world, the report said that the United States fared well among developed economies, maintaining growth above 2 per cent in 2014, and expecting to continue growth in 2015 (2.8 per cent) and 2016 (3.1 per cent). The forthcoming further normalization of the US Federal Reserve’s monetary policy posed significant risks and uncertainties for the global economic outlook, depending on the timing and strategy of the monetary tightening, as well as the response by financial markets.

[caption id="attachment_8519" align="aligncenter" width="616"] Recent trends in commodity prices and exchange rates: The impact of falling energy prices and the appreciation of the US dollar varies from country to country[/caption]

Gross Domestic Product (GDP) in Western Europe failed to regain its pre-recession peak and Japan’s economy was expected to slow down on the back of reduced private consumption. The recovery in the Euro area was precarious, with the report citing great risks remaining. Underlying growth momentum was so slow that an exogenous event could return the region to recession.

The report saw divergent growth rates in developing countries and economies in transition during 2014, and projected continued growth momentum in Africa, with GDP growth there expected to accelerate to 4.6 per cent in 2015 and 4.9 per cent in 2016. East Asia was expected to grow fastest at around 6 per cent in both upcoming years, with South Asia set to see a gradual pick-up in economic growth.

[caption id="attachment_8520" align="aligncenter" width="617"] Long-term unemployment remains a major problem: Unemployment is down in many countries from recent peaks, but long-term and youth unemployment persist[/caption]

Many developing countries and economies in transition faced vulnerabilities due to tightening global financial conditions, aggravated geopolitical tensions and the Ebola epidemic. Large current-account deficits and rapid credit growth in some large emerging economies were causes for concern, particularly if tested by a sudden change in market sentiment, similar to mid-2013 and early 2014. A broad-based downturn in emerging economies, particularly a sharp slowdown in China, would weigh on economic performance worldwide.

Oil price volatility also posed risks to exporters and importers, while geopolitical crises like Ukraine, Iraq, Libya and Syria hampered economic development and remained causes of uncertainty. Source


World Bank: International Food Prices Hit Four-Year Low

[caption id="attachment_8526" align="alignright" width="173"] Ana Revenga[/caption]

New World Bank Group tool focuses on preparedness for potential future crises.

International prices of food decreased by 6 percent between April and August 2014, reaching a four-year low, according to the latest edition of Food Price Watch. This sharp decrease was driven mainly by international wheat prices, which went down 19 percent and maize prices, which plummeted 21% between April and August 2014. Rice prices actually increased 13 percent during the same period. Prospects for next year’s harvests and food stocks are strong.

“Such a sharp decline in international food prices is welcome, especially given the increases we’ve seen recently,” said Ana Revenga, Senior Director of the Poverty Global Practice at the World Bank Group. “However, as food prices continue to fluctuate and the most vulnerable are faced with new and growing concerns, it is essential to have the tools in place to act quickly if and when food price crises unfold.”

Domestic prices of grains have remained mostly stable overall, except across Central America and some parts of Western Africa, the latter partly associated with the Ebola Virus Disease. Prices in individual countries saw their typical variations, with large wheat price increases in monitored markets in Sudan and Ethiopia, and decreases in Argentina. Domestic maize prices decreased in monitored markets across Africa. Rice prices went up in Vietnam, Thailand, and India.

“Such a sharp decline in international food prices is welcome, especially given the increases we’ve seen recently.”

According to Food Price Watch, internationally traded food prices in August 2014 were 6 percent lower than in August 2013, and 21 percent below their historical peak in August 2012.

The Food Price Crisis Observatory

International food price declines and relatively stable domestic prices make this an ideal time to prepare for potential future food crises. Alongside this issue of Food Price Watch, the World Bank Group is launching the Food Price Crisis Observatory, an interactive platform that makes critical knowledge accessible to all at a moment’s notice and adds more evidence to a growing global body of work on monitoring food price crises. The Observatory helps policymakers, NGOs, the private sector, and other partners identify food price crises as they unfold, track where and why food riots take place, and better understand which policies work to prevent and cope with food price crises.

How the World Bank Group is helping:

The World Bank Group is committed to boosting agriculture and agriculture-related investment. In 2014, new commitments to agriculture and related sectors were $8.3 billion. For IBRD/IDA, assistance to agriculture and related sectors rose to $4.3 billion in FY14 from $3.6 billion in FY13.

IFC made $4.0 billion in private sector investments across the food supply chain in FY14. These investments supported projects that promote access to finance, access to inputs like seeds, equipment and advice, and access to markets through infrastructure and food-processing facilities.

Launched by the World Bank in 2008, the Global Food Price Crisis Response Program (GFRP)  provides relief to countries hit by high food prices. The GFRP has reached nearly 70 million people in 49 countries—through $1.6 billion in emergency funds for farming, seeds and fertilizer, and emergency school feeding programs.

The WBG supports the Global Agriculture and Food Security Program (GAFSP). Nine countries and the Bill & Melinda Gates Foundation have pledged about $1.4 billion with $1.2 billion received.

Coordinating with UN agencies through the High-Level Task Force on the Global Food Security Crisis and with non-governmental organizations, and supporting the Partnership for Agricultural Market Information System (AMIS) to improve international food market transparency.

Advocacy for more investment in agriculture research–including through the Consultative Group on International Agriculture Research (CGIAR) – and monitoring trade to identify potential food shortages.

Supporting improved nutrition among vulnerable groups: During the past decade (2003-2013), the International Development Association (IDA), the World Bank's fund for the poorest, has ensured that more than 210 million pregnant/lactating women, adolescent girls, and/or children under age five were reached by basic nutrition services. The Bank is also an active member of the Scaling Up Nutrition movement and supports the SecureNutrition Knowledge Platform, which aims to improve nutrition outcomes through agriculture investments.

Source


World Bank Supports Efforts to Achieve Growth with Equity and to Develop Cities in Colombia

[caption id="attachment_8530" align="alignright" width="218"] Bogotá, Colombia[/caption]

The World Bank Board of Executive Directors approved a two-loan package today totaling US$1.4 billion to strengthen economic growth with equity in Colombia, on the one hand, and increase productivity and sustainability in Colombian cities, on the other. These Development Policy Loans (DPLs) were designed to support the Colombian administration’s budget program.

Growth with Equity in Colombia

The US$700 million loan seeks to support the Colombian government in consolidating a sustained growth path and economic development over the long term. The Treasury and Public Credit Ministry and the National Planning Department will be responsible for coordinating and executing this program.

“With this program, the World Bank supports and accompanies key policies that the country has put into force to achieve sustained and competitive economic growth, specifically through actions aimed at promoting investment, improve confidence and the business environment and increase employment and human capital formation” said Mauricio Cardenas, Minister of the Treasury and Public Credit. “We are very pleased to enjoy the support of the Bank on initiatives that will serve to improve our regulatory processes and credit access conditions among small and medium enterprises, as well as to increase the technical and professional capabilities of Colombian workers so that they can respond to their employers’ needs.”

The support of the World Bank will focus on three key areas:

Increase access to credit among small and medium enterprises, as well as financing options available to fourth-generation infrastructure projects.

Improve the quality and targeting of State efforts to develop productive skills of the Colombian workforce.

Increase productivity by promoting innovation and an efficient regulatory environment for companies.

“The preparation of this program has broadened our dialogue with the government in terms of access to credit, competitiveness, innovation and trade,” said Gerardo Corrochano, World Bank Director for Mexico and Colombia. “We have established a continuous commitment with Colombia to develop new areas of technical support for the country.”

"With this program, the World Bank supports and accompanies key policies that the country has put into force to achieve sustained and competitive economic growth, specifically through actions aimed at promoting investment, improve confidence and the business environment and increase employment and human capital formation."

- Mauricio Cardenas, Minister of the Treasury and Public Credit

Among other concrete results, it is expected that this financing will enable the implementation of a Secured Transactions Registry, which will increase access to credit among companies using movable assets as collateral. Furthermore, the Ministry of Labor will be accompanied during the promulgation of the necessary regulations for a new state employment service to establish a nation-wide skill certification system. The loan matures in 2034.

Consolidation of Colombia’s City System

The second loan, also totaling US$700 million, seeks to increase the productivity, sustainability and inclusiveness of Colombian cities. This DPL, responsibility of the National Planning Department, is designed to support the Colombian Government’s budget program and is the second one for this area.

“Currently, 85 percent of national GDP is generated in cities. Recognizing their role as engines of economic growth, the Government has just formulated public policy to consolidate Colombia’s City System, which includes the introduction of guidelines to improve urban mobility and reduce traffic congestion, create housing-access mechanisms and reduce settlements located in high-risk areas,” said Simon Gaviria, Director of the National Planning Department. “The second stage of the Productive and Sustainable Cities Program is of great importance, inasmuch as it will contribute to the fulfillment of the 2014-2018 National Development Plan’s objectives, linked to strategies aimed at strengthening the Cities System.”

Specifically, financing will be used in four key areas:

Strengthen the institutional capacity to coordinate and finance regional and metropolitan initiatives.

Promote access to housing among the poorest households.

Promote urban connectivity and the policy framework to encourage regional infrastructure.

Improve urban and metropolitan management and establish instruments to improve congestion and the provision of urban transportation services.

“According to estimates from the Cities Mission, by 2050 the Colombian population living in urban centers will reach 86 percent. Thus, it is imperative to support the country to ensure it is successful in building productive and sustainable cities that continue to function as engines for development and the eradication of poverty and inequity,” said Corrochano.

It is expected that this operation will result in, among other things, the acceleration of the regional-level urban connectivity and infrastructure financing process, to which end the Colombian Government will promote private investment and increase the development of transportation infrastructure projects in the country. Moreover, it will accompany the Ministry of Transportation in the design of an electronic tax collection system for vehicles in cities with more than 300,000 people. The loan matures in 2032.