1. Ratification of Collaborative Africa Budget Reform Initiative (CABRI)
Presentation to Portfolio Committee on Finance
Tuesday 13 November 2007
Lesley Fisher

2. Content Background and purpose
Objectives of legal status & GA recommendation
Options
Current membership
Ratification process
South Africa
Founding members
Hosting agreement
Achievements to date

3. Establishment and objectives
Professional network of senior government officials in ministries of finance and planning from across Africa.
South African National Treasury played a leading role in establishment together with Mozambique and Uganda in 2004.
Key objective of CABRI is the promotion of efficient and effective management of public finances to foster economic growth and enhance service delivery for the improvement of living standards of people living in Africa.

4. CABRI aims to:
support senior budget officials in the management of public finance systems and develop approaches, procedures and practices for improving these;
advance the development of Member States by building capacity and promoting training and research in the field of public finance management, in particular from a practitioner’s perspective; and
develop and promote common African positions on budgetary issues of interest to Africa.

5. Objectives of Legal Status
Draft memorandum of understanding forms the basis of existing structure of the informal network
Enable financial and legal independence from any national government and other regional bodies
Support funding arrangements - membership fees, donor funding etc.
Enable formal engagement with regional and international bodies
MOU is an important part of the preparatory of the legal status of CABRI. Those who participated in its drafting shared the same objectives, agreed to its content and have been mandated to accept it at a properly constituted meeting of national officials. The MoU could be viewed as a factual precursor to the final founding instrument. It can, however, only be finalized through its formal adoption.

6. Legal Study
Considered a number of existing organisations e.g. AU, NEPAD, AFRU
Identified two options:
By an international legal agreement between member countries
By resolution of another established pan- African body

7. Pros and Cons Option Pros Cons
Formed by resolution of the African Union
Formalised structure in place and access to all African countries
Access to resources
Possibly a faster route to legal establishing the network
No longer an autonomous body
Bureaucratic procedures and complexities of governance
Reduced importance and competition of funds with the AU structure
Take on a political nature
Formed through an international legal agreement
Constitution clearly establishes the nature of the network
Easier to establish fees and receive funding
Takes on a more formal nature in terms of it operations
Time-consuming and extensive process of negotiating an agreement between every country and for each country to sign and then seek ratification
Work as the equivalent of a technical committee on PFM. Build a relationship with the AU where you are can retain your independence yet still access their networks and resources, by undertaking the role of an otherwise technical committee on PFM

8. General Assembly Recommendation December 2006
To fast track process, International Agreement can be negotiated by 6 countries
Thereafter, new members join through accession process
Application for accession is presented at General Assembly meetings
Countries have two years in which to present their application for accession

9. International Agreement
Provide a founding instrument for CABRI, which can accommodate the various needs regarding institutions, powers, membership, finances, procedures
The final product of negotiations is a signed text but this is not yet a binding treaty June 2007
Secretariat prepared draft agreement based on MoU. Agreement circulated to all countries
Once all 6 countries have ratified the agreement, the agreement will come force
This agreement is, therefore, also the “constitution” of the organization and will explain, in addition, the rights and obligations of the members. The national procedures for accrediting officials and developing positions may differ. Negotiators will prepare their positions beforehand and will know what they want in the eventual agreement. This will in itself require preparations. The text produced by the negotiations is normally referred back to the relevant national authorities (as a rule the executive branch of government) to finalize. A signature ceremony may also be involved. The date of formal entry into force has to be provided for in the agreement.[1] The relevant provision will usually stipulate that the agreement will enter into force a certain number of days after the final instrument of ratification has been deposited.
[1] Only bilateral agreements normally enter into force upon signature.
Negotiators mandated to negotiate on behalf of State (May & June)
Each country is required to ratify the agreement. This process varies from country to country

10. Countries participating in CABRI

11. Legal Status
Table 1: Status of the signatory countries of the International Agreement
Country
Signed
Ratification
Remark
Ghana √
Ratification expected by the end of 2007
Kenya
Waiting for instrument of ratification
Mali
Ratification expected by the end of 2007/early 2008
Senegal
South Africa
Rwanda

12. South African process Signed by Minister of Finance 7 August 2007
Cabinet approval 24 October 2007
Dialogue and negotiations Mauritius
Training workshop & study tour SANT
Financial contribution to be determined at next GAM
Between R1m – R1.5m per annum
Effective 2009/10
Legal status – April to June 2008
South African government to host CABRI and act as interim secretariat

13. Hosting agreement South Africa will host CABRI
Agreement concluded as soon as reasonable after legally established
Standard agreement concluded in consultation with DFA, SARS, DHA
Priviledges, immunities, immigration, tax exemptions
Disputes, amendments, inviolability of office
To be finalised between Secretariat and Government of South Africa

14. Achievements in 2007
Membership increased from 17 countries to 28 in year and fostered a more committed and active membership base
Increased the relevance of activities
Dialogue and negotiations – Mauritius
Training workshop and study tour SANT
Received a positive feedback from members on activities
Established an institutional reputation
Launched CABRI as a legal entity
Received acknowledgment of CABRI’s publications as resources for PFM
Strengthened relationship with development partners and partnering institutions.

15. THANK YOU