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Management of Natural Resources in Sub-Saharan Africa

Kinshasa Conference

March 21-22, 2012

Management of Natural Resources in Sub-Saharan Africa

In many sub-Saharan Africa (SSA) countries, extractive industries—oil, forestry, mining—account for a significant share of output and a major share of export earnings. Rising commodity prices have further boosted economic growth and exports in many countries.

Against this background, one of the objectives of this conference is to present the latest analysis and thinking on the macroeconomic management of natural resource revenue, and elaborate on how the policy dialogue with SSA countries has evolved. It will also cover tax policy, administration, and regulatory frameworks conducive to good management of natural resources.


WEDNESDAY, MARCH 21, 2012: MACROECONOMIC MANAGEMENT OF NATURAL RESOURCES
8h00–9h00

Registration

9h00–9h15

Welcome by Matata Ponyo Mapon, Minister of Finance, Democratic Republic of the Congo

9h15–9h30

Opening Remarks by Antoinette M. Sayeh, Director, African Department, IMF, on the Challenge of Managing Natural Resources in Low-Income Countries Challenge of Managing Natural Resources in Low-Income Countries

9h30–11h00

Session 1: Natural Resource Flows and Macroeconomic Policies

Managing the windfall from increasing resource revenue in good times and dealing with spending cuts when a “boom” fades, Dutch disease and international competitiveness, concerns about the coordination of reserve/monetary, and fiscal policies and external sustainability are major policy issues that are as pertinent today as they were yesterday. This session sets the stage for the conference through a discussion on the latest thinking about this age-old problem.

Chair: Maria Kiwanuka, Minister of Finance, Planning, and Economic Development, Uganda

Panelists:

Catherine Pattillo, Advisor, Strategy, Policy, and Review Department, IMF

Anthony Venables, BP Professor of Economics, Oxford University (invited)

Mattia Pellegrini, Member of the Cabinet of Antonio Tajani, Vice-President of the European Commission


Open discussion

11h00–11h30

Coffee Break

11h30–13h00

Session 2: Operational Aspects of Fiscal Policy in Resource-Rich CountriesOperational Aspects of Fiscal Policy in Resource-Rich Countries

Fiscal policy stands center stage in resource-rich countries because natural resource revenue is finite and highly volatile. This raises complex issues of sustainability and intergenerational equity, and financial management and the appropriate savings vehicles, including Sovereign Wealth Funds. This session explores the operational aspects of fiscal policy from a theoretical and practical perspective.

Chair: Matata Ponyo Mapon, Minister of Finance, Democratic Republic of the Congo

Panelists:

Sanjeev Gupta, Deputy Director, Fiscal Affairs Department, IMF

Joe Asamoah, Managing Director, EnerWise Africa

Olgario de Castro, Chairman, Investment Advisory Board, Petroleum Fund, Timor-Leste


Open discussion

13h00–14h00

Lunch

14h30–16h00

Session 3: Public Investment as the Engine of Sub-Saharan African Growth

Natural resource revenue has augmented fiscal space in many sub-Saharan African countries, creating the potential for public investment to be the engine of growth and poverty reduction. But in the past, scaling up public investment has often led to disappointing results. This session explores the pros and cons of scaling up investment, measures to enhance public investment efficiency and the potential constraints, and country experience.

Chair: Gilbert Ondongo, Minister of Finance, Budget, and Public Portfolio, Republic of Congo

Panelists:

Paul Collier, Professor of Economics and Director of the Centre for the Study of African Economies at Oxford University

Anand Rajaram, Sector Manager (Africa Region), World Bank

Pedro Conceição Couto, Vice Minister of Finance, Ministry of Finance, Mozambique


Open discussion

16h00-16h30

Coffee Break

16h30–18h00

Session 4: Raising the Bar on Governance and Transparency in Managing Natural Resources

Good governance and transparency in the management of natural resources is essential for accountability and getting the most from the exploitation of a country’s resource endowment. A broad-based panel will lead a discussion on the best ways to accomplish these goals.

Chair: Tim Bittiger, Rregional Director for Francophone Africa and Europe, Extractive Industries Transparency Initiative

Panelists:

Gavin Hayman, Director of Campaigns, Global Witness

Jonathan Hobbs, Senior Policy Advisor (Natural Resources Governance—Trade and Investment), WWF

Zainab Ahmed, Executive Secretary, Nigeria EITI

Zhang Yongpeng, Research Fellow, Chinese Academy of Social Sciences


Open discussion

19h30

Reception/Dinner (hosted by the DRC authorities)

THURSDAY, MARCH 22, 2012: MICROECONOMIC ASPECTS OF MANAGING NATURAL RESOURCES
9h30–11h00

Session 5: How the Government Gets its “Fair Share”

Relatively strong commodity prices in recent years combined with declining external financial support for low-income countries has many policy makers in resource-rich countries asking how government can get its fair share of resource wealth. This session explores the many issues surrounding the role of the public sector in managing natural resources: public versus private ownership; sharing of risks and rewards between government and private-sector investors; and the experience of in managing the interests of the state and multinational enterprises.

Chair: Holger Grundel, Senior Advisor, Department for International Development, United Kingdom

Panelists:

Philip Daniel, Deputy Division Chief, Fiscal Affairs Department, IMF

Kathryn McPhail, Director, International Council on Mining and Metals

William Curtis, Secretary General, Ministry of Mines and Geology


Open discussion

11h00–11h30

Coffee break

11h30–13h00

Session 6: Administering and Efficient Management of Natural Resource Revenue When Capacity is Weak

New policy instruments like the resource rent tax are gaining ground as the means to capture more revenue from the natural resource sector. But administering such measures and projecting the tax take is challenging, especially if capacity is weak. In this "hands-on" session, experienced practitioners share their views on what works and what does not in this setting.

Chair: Roger Nord, Deputy Director, African Department, IMF

Panelists:

John Calder, IMF Technical Expert

Antoine Heuty, Deputy Director, Revenue Watch Institute

Chansa Shambuluma, Acting Commissioner Domestic Taxes, Zambia Revenue Authority

Martin Kabwelulu, Minister of Mines and Acting Minister of Oil, Democratic Republic of the Congo


Open discussion

12h00–15h00

Roundtable discussion: Lessons and the Way Forward

Moderator: Anthony Venables

Participants: Antoinette Sayeh, Minister Matata, Minister Kiwanuka, Vice-Minister Couto, Kathryn McPhail, and Gavin Hayman

13h00–14h00

Lunch

17h30

Cocktail (hosted by the DRC authorities)