COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 23.09.1998 
COM(1998) 535 final 
• 1- V"-". 
. .+: 
-ijii 
i.; 
REPORT FROM THE COMMISSION 
f . • on the operation in 1997 of the 
export earnings stabilisation system under the 
fourth ACP-EC Convention as revised by the 
Agreement signed in Mauritius 

I. INTRODUCTION 
1. Article 31(3) of the Internal Agreement on the financing and administration of 
Community aid states: 
"Each year the Commission shall draw up a comprehensive report for the 
Member States on the operation of the system of stabilisation of export earnings 
and the use made by the ACP States of the funds transferred. " 
2. This report covers the activities of the ACP-EC institutions and the administration 
of the system in 1997, paying special attention to the allocation of transfers for 
1996, the second year of application of Stabex under the fourth ACP-EC 
Convention as revised by the Agreement signed in Mauritius. 
For the third year of application in a row, it has been possible to cover all transfers. 
2-
II. ACTIVITIES OF THE ACP-EC INSTITUTIONS 
3. The operation of Stabex was discussed at the 44th meeting of the ACP-EC 
Committee of Ambassadors (Brussels, 21 March 1997). 
4. The Committee approved the procedure proposed by the Commission for Stabex 
transfers in respect of the 1996 year of application, i.e. that the Commission would 
adopt by 31 July 1997 at the latest, pursuant to Article 207(3) of the Convention, 
the decisions on all transfers in respect of the 1996 year of application on condition 
that the decisions would not come into effect until the revised Lomé Convention 
came into force. 
3-
III. TRANSFERS FOR THE 1996 YEAR OF APPLICATION 
5. Calculation of the transfer bases 
For the 1996 year of application, the Commission Sound 2C i 
eligible for 27 transfers under the Slabcx arrangements. The 2 
groups for which losses of earnings eligible for compofi^uik;^ 
listed in Table 1 of this report (see page 29). \€f States to be 
7 country/product 
rVjjiC accorded are 
After calculating iie reduction provided for in Article 197(3) and (4) of the 
Convention, the transfer bases totalled ECU 87 570 927. 
Under Article 204 of the Convention the transfer basis calculated from the 
Community's import statistics is reduced to the level of the transfer basis calculated 
from the statistics on the exports to all destinations of the ACP States concerned, 
where the latter amount is less than the former. 
Reductions under Article 203 
Trends in marketed output, total exports and exports to the Community of the 
products in question meant that, in many instances, consultations under Article 203 
of the Convention had to be held between the Commission and the representatives 
of the ACP States. The consultations resulted in the following reductions being 
made: 
7.1. Reductions applied as a result of significant changes in trends in marketed 
output of the product in question. 
ACP State 
Gambia 
Togo 
Sierra Leone 
Guinea-Bissau 
Burundi 
Comoros 
Saint Vincent 
Vanuatu Product 
Cotton 
Shrimps 
Coffee 
Coffee 
Timber 
Coffee 
Uncured hides 
Vanilla 
Bananas 
Cocoa Reduction 
Amount in ECU 
77 384 
181 445 
2 525 216 
1216 233 
36 326 
4 288 507 
499 168 
1 245 754 
905 491 
129 817 % of transfer 
basis (TB) 
14.2 
29.9 
40.3 
57.0 
29.1 
57.4 
55.3 
37.4 
9.7 
39.5 
-4-
7.2. Reductions applied as a result of a decline in exports to all destinations as a 
proportion of marketed output: 
ACP State 
Rwanda 
Comoros 
Kiribati Product 
Pyrethrum 
Cloves 
Vanilla 
Copra Reduction 
Amount in 
ECU 
106 766 
214 063 
478 146 
115 140 % of transfer 
basis (TB) 
23.6 
43.3 
14.3 
31.6 
7.3. Reductions applied as a result of a decline in the ratio of exports to the 
Community to other exports (all destinations): 
ACP State Product Reduction 
Amount in % of transfer 
Gambia 
Rwanda 
Comoros Shrimps 
Pyrethrum 
Cloves ECU 
95 896 
121611 
76 519 basis (TB) 
15.8 
29.2 
15.4 
8. Calculating the transfers 
Following consultation, where appropriate and as required under Articles 202 
and 203 of the Convention, the total amount of eligible transfers was therefore 
calculated as ECU 73 584 806. 
As calculated in line with the provisions of Article 191 of the revised Convention 
and the annexed second Financial Protocol, the annual instalment for the 1996 year 
of application is approximately ECU 360 million. 
This means that all transfers eligible in 1996 can be covered, but the funds will not 
be available until the revised Convention comes into force, which will not be until 
the second Financial Protocol is ratified. 
In the light of Decision No 6/95 of the ACP-EC Council of Ministers on 
transitional measures to be applied until the entry into force of the revised 
Convention, the Commission decision fixing Stabex transfers for the 1996 year of 
application therefore had to be taken with suspensive effect before 31 July lc)97 
subject to the entry into force of the revised Convention and its ratification by the 
ACP State due to receive the transfer. 
5-
9. Results by recipient country and product 
Table 2 (page 30) gives the results by recipient country. As in 1994 and 1995, the 
Caribbean countries are the main recipients, their earnings losses on bananas being 
due to a number of causes such as bad weather conditions and structural problems 
in the sector. 
10. The balance per product (see Table 3, page 31) shows that bananas, at 26.9%, are 
still responsible for the largest share of the transfers. In many cases the transfers 
made represent a substantial addition to the recipient State's total export earnings, 
examples being: 
ACP States 
Saint Vincent 
Dominica 
Comoros Product 
Bananas 
Bananas 
Essential oils 
Vanilla Transfers as a % of total 1996 
earnings from the product 
concerned 
21.3 
18.4 
16.9 
32.8 
11. However, a more precise measure of the effect of the additional Stabex revenue on 
the sector showing a loss of earnings can be obtained by comparing the amounts 
transferred with the earnings from the products for which the transfer is requested: 
ACP States Product Transfers as a % of total 19S 
earnings from the product 
concerned 
Senegal Groundnuts 10.0 
Gambia Cotton 53.0 
Sierra Leone Coffee 82.0 
Togo Coffee 51.3 
Comoros Essential oils 62.7 
Comoros Vanilla 76.0 
Rwanda Pyrethrum 94.0 
Tanzania Tea 21.1 
6-
in min m Éiiiiiiimn 
These proportions can be high, especially when exports of the product in question 
are fairly low and fluctuate substantially from year to year. When low market prices 
combine with temporary difficulties in the sector, losses of revenue can be severe 
and give rise to relatively large transfers. Even when export revenue from a 
particular product is high, the transfers make a significant contribution. 
IV. USE OF TRANSFERS 
12. Framework of Mutual Obligations 
12.1 BENIN 
Application year: 1995 
Product: Palm products . ECU 205 442 
Date of payment: 09.10.96 
FMO signed: 18.08.97 
Summary: 
The Stabex funds will be used to finance: 
1. activities relating to the renewal of village plantations of selected oil palms: 
- practical training for private nurserymen 
- artificial pollination and production of dry seeds 
- production of germinated seeds 
- supply of seedlings to nurseries 
- supervision of planters 
2. export support activities. 
8-
12.2 BURKINA FASO 
Application year: 1994 
Product: Cotton ECU 13 916 449 
Date of payment: 22.12.95 
FMO signed: 23.12.96 (ECU 7 000 000) 
Summary 
Community aid will take the form of budget support under the structural 
adjustment programme. This involves supporting the government in the 
implementation of the transport sector adjustment programme and in the 
restructuring of the cotton industry. ECU 4.65 million will be allocated to routine 
road maintenance. The remaining ECU 2.35 million will be disbursed directly to 
the Treasury subject to compliance with the special conditions relating to 
restructuring of the cotton industry. 
12.3 BURKINA FASO 
Application years: 
Products: 
Date of payment: 
FMO signed: 
Summary: 1994 and 1995 
balance of 1 st Protocol 
Cotton 1994 
Hides and skins 1995 
Balance of 1st Protocol 
22.12.95(1994) 
05.03.97(1995) 
05.03.97 (balance) 
22.07.97 (ECU 7 836 374) ECU 
ECU 
ECU • 
13 916 449 
658 848 
261 077 
Under the 1994 Stabex FMO signed on 23 December 1996, ECU 7 million was 
allocated to the structural adjustment programme. The present FMO concerns a 
totalofECU7 836 734. 
In November 1995, the Government of Burkina Faso, together with the joint 
French, World Bank and Community mission conducted an analytical review of the 
first phase of the Agricultural Sector Adjustment Programme (PASA I). The 
implementation of PAS A II reflected the need to progress from a phase of reform to 
one of growth. 
The Burkinabé Government has therefore set the following overall objectives with 
the aim of stepping up and diversifying exports: 
- revival of cotton production 
- improving livestock production 
- promoting diversification programmes (oil seeds and gum arabic). 
-10-
12.4 CÔTE D'IVOIRE 
Application years: 
Products : 
Date of payment: 
FMO signed: 
Summary: 1993 additional 
balance 1 st Protoco 
1990-1993 
Cocoa products 
Coffee products 
Cocoa products 
Coffee products 
Cotton 
Timber 
Interest 1990-1993 I 
1993 add. 
1993 add. 
balance 
balance 
balance 
balance 
16.09.96 (1993 add.) 
10.12.96 (balance 1 
24.03.97 st Protocol) ECU 
ECU 
ECU 
ECU 
ECU 
ECU 354 238 
945 761 
5 242 883 
12 969 520 
326 031 
1 278 416 
CFAF 3 300 000 000 
The activities proposed in the current rider to the 1993 Stabex FMO are in keeping 
with the reduction of state involvement in productive activity and the development 
of a more intensive, diversified, competitive and sustainable system of agricultural 
production. The main aims are to: 
1. increase the long-term competitiveness of the coffee and cocoa sectors by 
means of technical assistance for continuing the reforms started in 1990, 
technical support to the professional associations most involved in overall 
management of these sectors and technical and financial support to the 
cooperative movement to help build organisational and financial capacity in 
the sectors; 
2. improve living conditions in rural areas through the construction of priority 
infrastructure works funded by the FRAR (Regional Fund for Rural 
Development) which, from the outset, has acted as an instrument of 
intervention in the field of land use planning which can be geared to the 
requirements of the rural community; 
3. build the capacity to diversify activities in rural areas by boosting the sheep 
and cattle-farming sector and fostering the development of tourism in rural 
areas by promoting reserves and national parks and supporting 
implementation of the National Environmental Programme; 
4. improve marketing of food products so as to boost producer incomes, 
increase supply and ensure supplies in urban areas at reasonable prices while 
cutting back on imported foodstuffs. 
11 
12.5 GHANA 
Application years : 1992 
1993 
Products: Cocoa products 1992 ECU 4 883 722 
Cocoa products 1993 ECU 15 738 690 
Cocoa products 1993 add. ECU 642 396 
Dates of payment: 21.11.94 ( 1992) 
29.11.94(1993) 
05.09.96 (1993 add.) 
FMO signed: 27.02.97 
Summary: 
The substantial contributions to the COCOBOD (cocoa state marketing board) 
retrenchment programme under the 1990 and 1991 STABEX allocations reduced 
COCOBOD's costs and contributed to an increase of the share of the cocoa 
smallholder in the export value. The major thrust of the 1992/1993 allocations is to 
maintain and possibly increase the 50% share of export value to be given to cocoa 
producers and to support other measures to increase smallholder incomes. 
More specific results will be: 
1. reduced marketing costs through the improvement of rural feeder roads firstly 
in the main cocoa producing areas of Ghana (the so called cocoa roads) and 
secondly, in order to support diversification, in other areas with agricultural 
potential and/or production, with a special focus on the Western Region; 
2. diversification of crop production towards products with export potential in 
support of Government's policy to reduce export dependence on cocoa; 
3. improved productivity and income of smallholder cocoa producers; 
4. improved employment opportunities for retrenched COCOBOD workers 
through a continuation of the retraining scheme. 
During this process, COCOBOD is expected further to reduce its cost as part of the 
reform programme. Progress is expected to be made towards liberalisation of 
external marketing and the transformation of COCOBOD towards an institution the 
main tasks of which are monitoring and coordination of cocoa operations, quality 
control through certification, research, disease control. 
-12-
12.6 GRENADA 
Application year: 1994 
Products: Cocoa ECU 87 769 
Bananas ECU 1 090 639 
Nutmeg and mace ECU 803 245 
Date of payment: 18.10.1995 
FMO signed: 05.05.1997 
Summary: 
Stabex 1994 transfers in favour of Grenada are intended to be used in the three 
sectors concerned for: 
- on-farm incentives to increased production; 
- appropriate price-support and the removal of bottle-necks in agricultural 
production; 
- development of the domestic agricultural sector and its diversification and 
improvement of the nutritional status of the population, and 
- improvement of the quality of rural life in order to reduce the rate of the rural-
urban drift. 
The Government of Grenada is committed to the strengthening of the national 
economy, thus putting the country on the road to sustainable development. 
-13 
.7 KIRIBATI 
Application year: 1993 
Product: Copra 
Date of payment: 31.03.1995 
FMO signed: 25.06.1997 
Summary: ECU 36 024 
The archipelago's size is the main cause of problems in the sector as it results in 
very high production and export costs. 
Since the transfer is quite low, it will not be used to support producer prices but to 
purchase the equipment which the KCCS (Kiribati Copra Cooperation Society) 
requires in order to meet its obligations for the marketing of copra. 
14 
12.8 MADAGASCAR 
Application 
Product: years: 1991, 1992 and 1993 in part 
Coffee 
Vanilla 
Essential oils 
Coffee 
Vanilla 
Cloves 
Coffee 
Cloves 
Coffee 
Vanilla 
Cloves } 
}1991 
} 
} 
}1992 
} 
}1993 
} (= 
} Balance 
} 1st 
}Fin. Prot. ECU 16 585 084 
ECU 9 980 228 
ECU 4 469 771 
4 294 485+ 175 286/add.) 
ECU 2 908 254 
Dates of payment: 
FMO signed: 
Summary: 19.02.1993(1991) 
30.08.1994(1992) 
05.01.1995 and 09.09.1996 (1993) 
19.03.1997 (balance from 1st Financial Protocol) 
13.12.1997 
(for the use of a maximum of ECU 15 250 000 out of a total 
ofECU38 443 561)> 
It has been agreed to use the Stabex funds in accordance with the objectives of 
developing traditional exports and diversification. 
Funds allocated under the FMO are mainly intended to: 
- improve production conditions, product quality and producer incomes; 
- enable exporting sectors to maintain competitiveness; 
- help open up access to areas of production by rehabilitating roads and bridges; 
- help set up an action fund to assist certain activities of traders; 
- develop, research and administer quality standards for exported products and 
ensure their implementation; 
- contribute to disease control and (he creation of five new abattoirs; 
1 NB. ECU 12 million out of the total of ECU 38 443 561 has already been earmarked to an FMO signed on 3 October 1996. 
-15-
assist the national authorising officer's support unit and the Stabex support team 
in the technical and financial implementation of projects and programmes under 
the FMO. 
-18-
12.9 MALAWI 
Application year: 1994 
Product: Tea ECU 4 183 470 
+ balance from 1 st Financial Protocol ECU 291542 
Date of payment: 02.01.1996 (23.12.1996) 
FMO signed: 11.08.1997 
Summary: 
The projects on which the above funds will be used aim at: 
- promoting agricultural diversification away from traditional export crops and/or 
agroprocessing for both import substitution and exports, and 
- improving the accessibility of the major tea producing areas through gravelling 
and grading of rural access roads, in order to facilitate efficient transportation of 
agricultural produce from points of production to processing and marketing 
centres. 
The Government of Malawi is implementing a number of macro-economic and 
structural adjustment measures supported by the IMF. In the agricultural sector, the 
Government liberalised input and commodity prices and lifted a ban on exports of 
agricultural commodities. This is expected to lead to flexible and diverse cropping 
patterns, thereby creating new opportunities for agricultural diversification and 
agroprocessing. 
17 
12.10 UGANDA 
Application years: 1993 and 1995 
Products: coffee 1993 
hides and skins 1993 
tea 1995 
Dates of payment: 21.07.1995 (coffee) 1993 
04.09.1996 (hides) 
16.06.1997 1995 
FMO signed: 14.08.1997 
Summary: ECU 44 434 124 
ECU 1 813 639 
ECU 430 212 
As a result of talks between the Ugandan Government and the Commission and 
discussion of the problems affecting export products, it has been decided that 
reforms and changes are necessary to improve farming of export products and the 
agri-food processing sector. 
Stabex 1993 and 1995 funds will be used to support development of the rural 
economic infrastructure, primary education in rural areas and the agri-food 
processing sector. 
To ensure effective implementation, part of the transfer will be earmarked for 
appropriate measures, e.g. technical assistance for effective administration and 
regular payments. 
18 
12.11 PAPUA NEW GUINEA 
Application year: 1994 
Product: Cocoa products ECU 7 271 542 
Date of payment: 20.08.1996 
FMO signed: 08.10.1996 
Summary: 
The main cause of the losses sustained is the drop in world prices for these 
products which resulted in planters losing interest and, in some cases, giving up 
farming. 
The funds will be used to continue ongoing projects which form part of the 
overall policy and are designed to stabilise the Government's external position 
under the second structural adjustment programme. Four main sectors are 
concerned: 
- improving performance in the cocoa and copra sectors, including rehabilitating 
infrastructure in the provinces of East New Britain and North Solomons; 
- improving coffee quality; 
- ensuring a healthy investment climate by means of price stabilisation; 
- diversification measures. 
-19 
12.12 RWANDA 
Application year: 
Products: 1991 
Coffee 
Hides and skins 
Pyrethrum ECU 9 184 660 
ECU 936 227 
ECU 11 269 
Date of payment: 25.08.1992 
FMO signed: 
Summary 18.04.1997 
The events of 1994 turned the country upside down. The loss of human resources 
and the looting and destruction of infrastructure brought the economy to a 
standstill, causing output to plummet. This state of emergency made it imperative 
to get production facilities back on their feet, including export sectors. The three 
products giving rise to transfers for the 1991 marketing year are coffee, hides and 
skins, and pyrethrum. 
When allocating these resources, priority was given to all agricultural export 
sectors. 
There is a special emphasis on tea, even though this sector has generated no 
transfer, owing to the abrupt halt in production as a result of the war and its 
importance to the Rwandan economy. 
This approach is consistent with the rehabilitation objectives laid down in the first 
emergency rehabilitation programme. 
20 
12.13 SAMOA 
Application year: 1993 
Products: Copra products ECU 111 589 
Oilcake ECU 16 602 
Date of payment: 20.10.1994 
FMO signed: 27.02.1997 
Summary 
The main causes of the loss of earnings were unstable international copra prices 
and the drop in production since cyclones Val and Ofa, the adverse effects of 
which have still to be overcome. 
Transfers will be used to continue activities begun under the earlier FMOs, among 
them the revitalisation and diversification of agriculture and the rehabilitation and 
maintenance of basic infrastructure. 
21 -
12.14 TANZANIA 
Application years: 
Product: 
Dates of payment: 
FMO signed: 
Summary 1991 and 1992 
Cotton 
29.12.1992(1991) 
24.08.1995(1992) 
16.10.1997 ECU 2 186 054 
Stabex transfers for cotton are very important because there is very little aid for 
this sector. 
The transfers will be used to improve the quality of the product, inter alia by 
introducing new varieties, and carry out general research in the sector, including 
looking at ways of improving the working environment. 
22 
12.15 TANZANIA 
Application year: 1992 
Product: Cloves 
Date of payment: 24.08.1995 
FMO signed: 11.11.1996 
Summary ECU 183 770 
The production of cloves in Zanzibar varies from year to year, with sales ranging 
from 1 300 to 12 000 tonnes over the past five years. 
The world market is reckoned to be able to absorb about 5500 tonnes a year. 
Another problem is Indonesia's self-sufficiency in cloves, which has put an end to 
imports from Zanzibar. 
The Government considers it necessary to promote rice production with a view to 
achieving self-sufficiency in the long term. 
The Stabex transfers are intended to improve the irrigation of rain-fed paddies, 
train growers in more advanced methods and carry out a study into growing other 
rice varieties. 
-23-
12.16 TANZANIA 
Application years: 1992 and 1993 
Products: Coffee 1992 
Coffee 1993 
Date of payment: 24.08.1995 
FMO signed: 09.10.1996 
Summary ECU 12 528 623 
ECU 8 300 103 
The overall objective is to improve the quality and quantity of production. 
The measures funded complement activities financed by the national indicative 
programme or other donors. 
More specific objectives include: 
- repairing infrastructure necessary for coffee production, 
- taking measures and launching activities to improve the quality of the coffee, 
- facilitating operators" access to credit for the purchase of inputs and equipment 
for producing coffee. 
24 
12.17 TOGO 
Application year: 1990 
Products: Cocoa 1990 ECU 1724 659 
Coffee 1990 ECU 3 505 259 
Interest 1989 ECU 1 521 822 
Stabex balance 1989 CFAF 954 825 643 
Date of payments: 08.05.92 
FMO signed: 30.09.97 
Summary 
In September 1992 the national authorising officer approved a draft FMO 
governing Stabex transfers for the 1990 application year. The decision to suspend 
cooperation between the European Union and Togo meant the draft was never 
approved by the Community authorities. 
Pending a scheme specifically designed to improve the competitiveness of cash-
crop sectors, the European Commission and the Government of Togo have agreed 
to give priority to meeting pressing needs in the areas of basic education and 
primary health care in rural areas by funding priority investment, equipment and 
operating costs figuring in the 1997 budget and complementary schemes aimed at 
paving the way for the implementation of the Government's policy in the cash-
crop sectors and facilitating the future implementation of a national regional 
development and decentralisation policy. 
In the health sector Stabex funding will help rehabilitate and equip a third of those 
first-tier public health facilities (dispensaries and medical welfare centres) 
considered operational (i.e. possessing at least one nursing auxiliary) to provide 
basic care. It will also cover frontline medical equipment for 30 prefecture 
hospitals and the refitting of five of them. It will also pay a proportion of the 
operating costs of the Health Ministry departments directly involved in supporting 
and developing basic health. 
This FMO will serve to rehabilitate a hundred or so schools in the coffee/cocoa 
area, replacing straw huts with permanent buildings, providing furniture and 
teaching materials and installing latrines. 
Last but not least, some funds will be earmarked for repairing tracks and bridges 
aimed at opening up coffee- and cocoa-growing areas. 
25-
12.18 TOGO 
Application years: 
Products: 
Dates of payment: 
FMO signed: 
Summary 1991-1994 
Cocoa 
Coffee 
Cocoa 
Coffee 
Cotton 
Cocoa 
Coffee 
Shea 
Cocoa 
09.09.92(1991) 
02.05.95(1992) 
02.05.95(1993) 
27.11.95(1994) 
30.09.97 1991 
1991 
1992 
1992 
1992 
1993 
1993 
1993 
1994 
The Stabex funds must be used exclusively: ECU 
ECU 
ECU 
ECU 
ECU 
ECU 
ECU 
ECU 
ECU 1 676 087 
6 073 184 
1 085 546 
1 720 363 
273 001 
1937 651 
1 718417 
281 571 
360 298 
- to support the above sectors, in which reform and restructuring are well under 
way, and facilitate the adoption of the self-management measures necessary for 
the withdrawal of the State; 
- to carry out a number of investment projects of public interest designed to 
assist the smooth development of these sectors and the implementation of 
diversification activities; 
- to help increase the involvement of growers in the decision-making process, 
especially in respect of the prices at which their produce is purchased. 
The relatively high number of operations is the result of a deliberate choice and is 
possible only because some follow on from programmes already being carried out 
or planned by other donors. However, to avoid dependency, the sums allocated 
are for free-standing schemes that can be brought under way without waiting for 
other funding. 
The schemes proposed concern the means of production. They are designed 
either to have knock-on effects for the entire industry or to stop the deterioration 
in production conditions in that sector. It is clear from this programme that the 
funds benefit producers, even if there is no automatic link between the source of 
the loss and the allocation of the Stabex funds. 
26 
12.19 VANUATU 
Application years: 
Product: 1992 to 1994 
Copra 1992 
1993 
1994 ECU 267 337 
ECU 265 281 
ECU 60 045 
Dates of payment: 16.06.1995 (1992 and 1993), 03.06.1996 (1994) 
FMO signed: 22.04.1996 
Summary 
About 90 % of copra is produced by small growers who depend on the income to 
meet their basic cash needs. Since school fees were cut in 1993 and medical care 
became free, the growers have needed far less cash and reduced their activities in 
the sector. This trend has combined with a series of cyclones to reduce 
production and, therefore, export earnings. The funds available under this FMO 
are used for a single operation in support of an operation carried out under the 
1988-91 FMO, namely the improvement of the rural road network. 
-27 
12.20 ZIMBABWE 
Application year: 1994 
Products: Coffee ECU 2 708 633 
Cotton ECU 2 145 286 
+ balance from 1st Financial Protocol ECU 1 175 104 
+ balance from 1992 l-'MO ECU 1319 485 
+ balance from 1993 FMO ECU 1 299 172 
Dates of payment: 09.09.1996 (23.12.1996) 
FMO signed: 20.10.1997 
Summary 
The Government of Zimbabwe, after consultation with the various interested 
parties, has decided that the counterpart funds generated by the Stabex transfers 
will be used: 
- primarily to assist the productive capability of the cotton and coffee sectors 
through the improvement of research and training, as well as infrastructure 
development, and 
- partly to compensate the economic operators for losses incurred. 
The Government of Zimbabwe is committed to continuing the liberalisation of 
agricultural markets as well as facilitating exports and investments. Moreover, the 
process of restructuring research and training activities in agriculture will be 
pursued. 
28 
TABLE 1: 
CALCULATION OF 1996 TRANSFER BASES (in ECU) 
§8 o 
224 
236 
248 
252 
257 
264 
280 
306 
324 
328 
352 
370 
375 
386 
460 
465 
467 
473 
812 
816 Country 
Sudan 
Burkina Faso 
Senegal 
Gambia 
Guinea-Bissau 
Sierra Leone 
Togo 
Central African Republic 
Rwanda Product 
Gum arabica 
Beans 
Groundnut products 
Cotton neither carded nor combed 
Shrimps 
Timber 
Green or roasted coffee 
Green or roasted coffee 
Timber 
Tea 
| Pyrethrum: saps and other extracts 
Burundi 
Tanzania 
Madagascar 
Comoros 
Malawi 
Dominica 
Saint Lucia 
St Vincent and the Grenadir 
Grenada 
Kiribati 
Vanuatu Uncured skins 
Green or roasted coffee 
Uncured skins 
Tea 
Vanilla 
Vanilla 
Cloves 
Essential oils 
Green or roasted coffee 
Tea 
Green bananas 
Green bananas 
Green bananas 
Green bananas 
Copra 
Cocoa beans 
Totals Loss of 
earnings 
20.042.631 
100.787 
10.006.992 
543.655 
605.765 
124.490 
2.181.588 
6.408.790 
4.520.405 
1.657.238 
451.215 
408.364 
7.897.038 
901.905 
3.298.181 
2.945.860 
3.378.682 
493.962 
829.618 
824.946 
1.611.662 
8.865.785 
4.589.495 
10.942.182 
2.408.643 
364.690 
328.485 
96.733.054 "Excess 
clause" 
445.884 
0 
3.002.098 
•0 
0 
0 
48.594 
147.407 
109.780 
0 
0 
- 0 
425.642 
0 
247.157 
143.705 
48.324 
0 
0 
0 
0 
1.372.452 
'1.376.848 
1.638.875 
155.361 
0 
0 
9.162.127 Transfer 
basis after 
deduction of 
excess clause 
19.596.747 
100.787 
7.004.894 
543.655 
605.765 
124.490 
2.132.994 
6.261.383 
4.410.625 
1.657.238 
451.215 
408.364 
7.471.396 
901.905 
3.051.024 
2.802.155 
3.330.358 
493.962 
829.618 
824.946 
1.611.662 
7.493.333 
3.212.647 
9.303.307 
2.253.282 
364.690 
328.485 
87.570.927 Article 
202/203 
consultations* 
0 
0 
0 
77.384 
277.341 
36.326 
1.216.233 
2.525.216 
0 
0 
228.377 
0 
4.288.507 
499.168 
0 
0 
1.723.900 
290.582 
0 
161.813 
0 
0 
0 
; 905.491 
1.510.826 
115.140 
129.817 
13.986.121 Transfer basis 
after 
consultations 
19.596.747 
100.787 
7.004.894 
466.271 
328.424 
88.164 
916.761 
3.736.167 
4.410.625 
1.657.238 
222.838 
408.364 
3.182.889 
402.737 
3.051.024 
2.802.155 
1.606.458 
203.380 
829.618 
663.133 
1.611.662 
7.493.333 
3.212.647 
8.397.816 
742.456 
249.550 
198.668 
73.584.806 Article 
194(2) 
reduction 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 Article 
194(4) 
reduction 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 Amount of 
transfer 
19.596.747 
100.787 
7.004.894 
466.271 
328.424 
88.164 
916.761 
3.736.167 
4.410.625 
1.657.238 
222.838 
408.364 
3.182.889 
402.737 
3.051.024 
2.802.155 
1.606.458 
203.380 
829.618 
663.133 
1.611.662 
7.493.333 
3.212.647 
8.397.816 
742.456 
249.550 
198.663 
73.584.806 
-29-
TABLE 2: 
BREAKDOWN BY RECIPIENT COUNTRY 
1996 application year 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 Country 
Sudan 
St Vincent & the Grenadines 
Dominica 
Senegal 
Central African Republic 
Togo 
Burundi 
Saint Lucia 
Tanzania 
Madagascar 
Comoros 
Rwanda 
Malawi 
Sierra Leone 
Gambia 
Grenada 
Kiribati 
Vanuatu 
Burkina Faso 
Guinea-Bissau Amount in ECU 
19.596.747 
8.397.816 
7.493.333 
7.004.894 
4.410.625 
3.736.167 
3.585.626 
3.212.647 
3.051.024 
2.802.155 
2.639.456 
2.288.440 
2.274.795 
916.761 
794.695 
742.456 
249.550 
198.668 
100.787 
88.164 
73.584.806 As % of total 
26,632 
11,412 
10,183 
9,519 
5,994 
5,077 
4,873 
4,366 
4,146 
3,808 
3,587 
3,110 
3,091 
1,246 
1,080 
1,009 
0,339 
0,270 
0,137 
0,120 
100,000 
30-
TABLE 3: 
BREAKDOWN BY PRODUCT 
1996 application year 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 Product 
Green bananas 
Gum arabica 
Green or roasted coffee 
Groundnut products 
Tea 
Timber 
Vanilla 
Essential oils 
Cotton neither carded nor combed 
Uncured skins 
Uncured skins 
Shrimps 
Copra 
Pyrethrum: saps and extracts 
Cloves 
Cocoa beans 
Beans 
Total Amount in ECU 
19.846.252 
19.596.747 
8.498.950 
7.004.894 
6.319.924 
4.498.789 
4.408.613 
829.618 
466.271 
408.364 
402.737 
328.424 
249.550 
222.838 
203.380 
198.668 
100.787 
73.584.806 As % of total 
26,971 
26,632 
11,550 
9,519 
8,589 
6,114 
5,991 
1,127 
0,634 
0,555 
0,547 
0,446 
0,339 
0,303 
0,276 
0,270 
0,137 
100,000 
-3I-

s ISSN 0254-1475 
COM(98) 535 final 
DOCUMENTS 
EN 11 17 02 10 
Catalogue number : CB-CO-98-540-EN-C 
ISBN 92-78-39354-1 
Office for Officiai Publications of the European Communities 
L-2985 Luxembourg 
- \A