Interviewed by Sanhouri Eissa

Mr. Khelef started his interview with the Paper by responding to the first question as to whether there was a relationship between signing the Agreement Establishing the Arab Fund for Economic Development in Africa (BADEA) in Algiers and his Algerian Nationality. Mr. Khelef responded by thanking Array Alaam Daily for the keen interest it shows in the mission and work of BADEA. He said his election to D.G of the Bank was a sheer coincidence and not an orchestrated move. He added that when the term of office of the former D.G came to an end, the Arab Finance Ministers meeting in Rabat, Morocco in April, 2006 elected, thanks to God, the candidate presented by the Algerian Government as the new D.G of BADEA. On the other hand, there has always been close interrelationship and interaction between Algeria and Africa interrelationship which dates back well before independence of Algeria. It is also worthy to note that the feelings of the Algerians of the importance of rapprochement between the Africans and Arabs stems from the fact that the African masses support, as well as that the Arabs, for the Algerian Revolution was very remarkable. The true feeling of the Algerians towards their African roots and belonging is a direct result of this support. It can be said that Algerian commitment towards Africa became a corner stone in the Algerian foreign policy. Mr. Khelef thought his presence as D.G of BADEA is part of this policy.

 The interviewer asked Mr. Khelef to evaluate the achievements of BADEA since its inception in 1973 and if BADEA fulfilled its mission or otherwise: He thought that the achievements and fields covered by BADEA since 1975, the year its operation commenced in Africa Sub-Sahara, or some 33 years ago, can be considered positive looking at it from three different angles:

First, taking into consideration the volume of financing BADEA offered to the African States since 1975, either in form of loans to finance projects or technical assistance operation. It is worth noting that African States received more either than 3 billion US Dollars offered through BADEA. These funds helped finance about 420 development projects and about 400 technical assistance operations. Mr. Khelef thought these figures represent impressive achievements.

Second, the sectors financed by BADEA are serving instrumental in the development in Africa since BADEA supports mainly the basic infrastructure such as roads, environment, electricity etc by allocating 50% of funds for this sector, 25% of its funds go to rural development and 20% for human development and social sector. It is a known factor that economic development depends predominantly on developing the infrastructure and when BADEA allocates 50% of its funds to this sector it is offering a great boost to economic and social development in Africa. Yet, as we all know, the main handicap to development in Africa is also the fight against hunger, establishment of food security and lack of development in the rural areas. Accordingly, BADEA believes that allocating 25% of funds for this sector as well as allocating 20% for human resources development are well deserved achievements.

The interviewer interrupted the D.G and asked him how the Africans evaluate the role of BADEA in the development in their countries. Mr. Khelef responded immediately by saying that viewing the issue from this dimension, and in view of the feedback during his visits he undertook to and his meetings with the African leaders and officials he can say in all honesty, that the impression he got from on the mission and role of BADEA was very positive. The African leaders and officials consider the Bank part of the institutions that truly serve development in African States. When confronted with a problem they seek advice and assistance from BAEDA and they are never disappointed. In many cases BADEA not only helps them with finances from its own resources, but also intervened with other sister Arab organizations to fund projects. Few African Leaders confirmed to him that they resort to BADEA for help when faced with problems because BADEA helps with honesty and without strings attached. This is a very important issue for Africans since most of the funds that reach Africa through some international institutions dictate on African States conditions which are mostly political such as changes in fiscal and finance policies in order to put more pressure and burden on the African States. Mr. Khelef stated that they do not place political, conditions when offering finance to the Africans. The only consideration taken into account when formulating projects is that the project in question is technically viable, professionally sound and carries an added value to economic development in Africa, and helps the poor sectors of the society.

The reporter enquired about the immediate impact of BADEA developmental projects on the ordinary African individual and in the alleviation of poverty, disease and lack of education. Mr. Khelef responded by saying that when roads are constructed, villages are taken out of isolation, when an agricultural project is built to increase incomes of farmers, when schools are built and well equipped life style of the people changes.

 The reporter wanted to know the effect of the operations implemented under the technical assistance of and human development on the life style of the Africans and their aspirations as well as their capacity programmes. Mr. Khelef replied by saying that he found the question pertinent. In this programme some Arab experts are seconded to the African countries under the technical assistance programme in some areas such as project formulation or capacity building. It is believed that the presence of Arab experts is considered milestone of the Afro-Arab Cooperation. BADEA also gives priority to Arab experts and contractors when implementing its projects. Foreign experts and contractors do their job and leave while the Arab or African experts and advisors remain which reflects the human resources development dimension to the cooperation. Now there are many Arab experts in so many African countries.

The reporter wanted to stress an issue he thought was imperative: it is noticeable that there is a strong Arab moral commitment towards financing development projects in African since Arab Summit in Algiers in 1973.  Where is the source of this commitment and do the Africans positively evaluate it? The D.G of BADEA said that commitment is sustainable and very much visible in the field. The Africans were furthermore encouraged by the mere fact that BADEA was making profits, not through interests on lending operations but from the Bank's own investments. It is worth mentioning here that the terms of financing projects in Africa is of very soft and concessionary nature, the lending periods extending up to 30 years with a grace period of up to 10 years and interest rate being as low as less than 1%, or you can say free of charge. These terms of financing make the Africans free when facing the harsh conditions imposed by international financial institutions and the International Monetary Fund (IMF). Regarding African foreign indebtedness. BAEDA's 33 years of presence in Africa through technical assistance and the commitment of the Arab States, owners of the Bank, and their decision that all interests and dividend generated from its external investments go as additions to its capital to increase the financial capability of the Bank which gives the Africans added confidence in the financial, technical and moral commitment of the Arabs in the BADEA operations. Africans consider these commitments go hand in hand with their free choices without imposing any restrictions on them. On the contrary in BADEA, the Arabs do their best to make the financing of the operations meet the African demands and not the other way round.

The reporter asked if it could be said that BADEA was a successful tool in implementing Afro-Arab cooperation. Mr. Khelef said he was confident that in its field as a financing institution, which mainly means financing projects and offering technical assistance and investment, BADEA successfully played its role in this regard.

As a response to a query from the reporter, BADEA D.G said that in implementing projects in Africa, preference is always given to the Arab and African companies. Almost 90% of experts are Arabs and Africans while the contractors are 60%-70% Arabs or Africans. The main aim of this policy is to create Arab-African consulting and contracting companies and encourage their joint venture in the field of consultancy and contracting in implementing development projects. Foreign firms are invited only in the case of some technically or technologically complicated projects.

The reporter wanted to know how far the Arab private sector made use of BADEA's trade and investment financing. D.G Khelef said that almost all implementing firms of BADEA projects belong to the Arab private sector from Saudi Arabia, Kuwait, Morocco, Algeria and Tunisia in addition to the contracting firms in Kenya, Senegal, South Africa and others. It is clear, then, that Arab private sector profits from BADEA activities through contracting and consultancy firms.

The reporter asked about BADEA's financing in trade fields and the D.G confirmed that there is a window in the Bank that avails trade finance whose aim is to encourage Arab exports to African States. He said this particular activity is executed by the Jeddah-based Islamic Development Bank (IsDB) on behalf of BADEA. On the other hand, there are other Arab channels that allow more Afro-Arab integration in the field of trade. He said an amount of USD100 million was allocated for financing Arab exports to African States, 75% of which has been executed. The Arab commodities exported to African countries through this programme included petroleum products, fertilizers and machinery. The reporter wanted specifically to know the types of commodities exported and their origin. Mr. Khelef reiterated his previous point and said the commodities included oil, refined petroleum products, petrochemicals, fertilizers and some machineries. 12 East and West African Countries made use of this type of financing. Demand for this type of financing is increasing and it is clear that this programme complements project financing. It is worth noting that this is an annual programme and it will help build sustainable long term relationship among the Arab and African economies, in addition to establishing long term relationship between the exporters and importers from both the private and general sectors in Africa and the Arab World.

The reporter wanted to know how far the Sudan, as the host country for BADEA and lying in the heart of Africa, can benefit from BADEA in financing Sudanese exports to other African countries. Mr. Khelef said BADEA was ready to finance any time any Sudanese exports, yet the Bank has not received any African request to import Sudanese products. The reporter was wondering whether the Sudanese private sector was aware of the presence of the window of trade financing. The D.G confirmed that the Sudanese are aware of it and that there are so many Sudanese consultants working in Africa. He said financing of exports depends wholly on the request of the African States wanting to import the commodity in question. BADEA's role is confined to financing. He pointed out that there is a window to finance Arab exports to African countries e.g. oil, fertilizers, electrical equipment, cables, etc.

The reporter enquired about the role Sudan Government plays in enabling BADEA play its role. Mr. Khelef said the Sudanese Government greatly supports BADEA fulfill its mission in consolidating the joint Arab and African work. The Bank found all support from Mr. Alzubair Muhammad Alhassan, former Finance Minister and Dr. Awad Aljaz the Finance Minister whom he met recently and found full support and encouragement for joint Afro-Arab cooperation. The Minister conveyed his readiness to facilitate the work of BADEA. His audience with the President of the Republic, HE Umar Albasheer was an important one. He added that he found the President contented with the work of BADEA as an Arab tool for cementing Afro-Arab Cooperation and that he encouraged BADEA to continue the good work they were doing. Mr. Khelef believed that President Basheer is one of great supporters of joint Arab and African Cooperation. He asked BADEA Management to continue the excellent work the Bank was doing in the field of Afro-Arab Cooperation and the Sudan Government will continue their support in this regard which is the fact of reality.

The reporter enquired about the Sudanese Nationals serving with Badea. Mr. Khelef said that they are many of them, and that Management are proud of them as dear brothers and efficient experts. The number of Sudanese working in BADEA stands of around 100 out of the total staff number of 130, or about 77%. Mr. Khelef took this opportunity to express his gratitude for all of them for the excellent work they are carrying out.

The D.G of BADEA thanked Array Alaam Daily for the keen interest in the work of BADEA. He added that he was happy to be in Khartoum, and the Sudan as a whole heading the administration of BADEA, this important Arab Institution, and thanked the Sudanese authorities for assisting BADEA carry out its mission.