African Economic Outlook, 2003 2004 by Organisation for Economic Co-Operation and Development

By Organisation for Economic Co-Operation and Development

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The Reform Pathway Power reform mainly aims at introducing competition in the upstream and downstream functions of industry structure and at adopting regulation of the wholesale and retail power markets to protect consumer interests. 46 Past experience22 shows that a full reform programme involves the following stages (see Figure 14): Political interference in the regulatory framework • Formulating a power policy providing the guidelines of the reform programmes. At this stage, political commitment to enacting the appropriate legislation and sustaining the reform process is crucial; • Establishing a transparent and independent regulator for the electricity market.

The Joint Africa/G8 Plan to enhance Africa’s capability to undertake Peace Support Operations, which was launched in 2003, is unique in its effort to address conflicts on the continent. The Comprehensive African Agricultural Development Programme (CAADP), prepared in 2003 in collaboration with the FAO, is being used as a basis for preparing detailed and costed country- and regionspecific projects for implementation. The Infrastructure Short-Term Action Plan (STAP) prepared by the African Development Bank, initially produced in 2002, was revised in 2003.

Exploration and extraction are less advanced than in other parts of the world but are expanding fast, partly because Africa is a way for importers such as the United States to reduce their dependence on Middle East oil. The continent is also very much open to private companies and oil taxes are mostly quite low, at least in the short term (Table 6). Oil provides substantial revenue for producer countries but also causes major governance problems as its management has often led to corrupt practices.

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