
Article 1 
Regulation (EC) No 1726/2000 is hereby amended as follows:

1.. Article 2(1) is replaced by the following:
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1. Programmes shall focus on the fight against poverty, take into account the needs of the previously disadvantaged communities, integrate the environmental dimension of development and mainstream gender equality, in particular strengthening women's participation at all levels of policy, programming and implementation. In all these programmes special attention shall be paid to the strengthening of institutional capacities.'
2.. In Article 2(2), the introductory phrase is replaced by the following:
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2. Development cooperation to be carried out pursuant to this Regulation shall focus mainly on the areas of cooperation referred to in Article 8 of Protocol 3 on South Africa to the Cotonou Agreement and in particular on:'
3.. Article 4 is hereby amended as follows:

((a)) paragraph 2 is amended as follows:

((i)) in the first subparagraph, the introductory phrase is replaced by the following:
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2. Community financing may cover:'
((ii)) in the first subparagraph, point (a) is replaced by the following:
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((a)) government budget expenditure to support reforms and policy implementation in the priority sectors identified through a policy dialogue, using the most appropriate instruments including budgetary support and other specific forms of budgetary aid;'
((iii)) the second subparagraph is replaced by the following:
'Part of the financing may be channelled towards targeted final beneficiaries (e.g. emerging entrepreneurs) in the form of risk capital or other forms of financial participation. The European Investment Bank may be associated with the management of these funds, as appropriate. The resources made available under this Regulation shall not be used in a manner that will permit unfair competition.'
((b)) the following paragraph is inserted:
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4a. Financing of individual projects and programmes for regional cooperation and integration shall be provided from the EPRD and/or from regional funds under the European Development Fund (EDF).The Commission shall strive to ensure balanced funding from both sources at the level of the Multiannual Indicative Programme, by committing to regional cooperation and integration an indicative percentage of the EPRD similar to the share of EDF funds dedicated to regional cooperation and integration in the Financial Protocol to the Cotonou Agreement.'
4.. Article 5 is deleted.
5.. Article 6 is replaced by the following:
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Article 6 

1. Multiannual indicative programming shall be carried out in the context of close contacts with the South African Government and taking account of the results of the coordination referred to in Article 4(6) and (7). The indicative programming process will fully respect the principle of recipient-led programming.
2. In order to prepare for each programming exercise, in the context of increased coordination with the Member States, including on the spot, the Commission shall draw up a country strategy paper in dialogue with the South African Government. This country strategy paper shall take into account the results of the most recent overall evaluation of operations financed pursuant to Regulation (EC) No 2259/96 and in accordance with this Regulation and of other regular evaluations of operations. It will be linked to a problem-oriented analysis, and integrate cross-cutting issues such as poverty reduction, gender equality, environment and sustainability. A draft of the Multiannual Indicative Programme will be annexed to the country strategy paper. A limited number of sectors of cooperation based on the areas identified in Article 2 shall be selected. For these sectors, modalities and accompanying measures shall be set out. As far as possible, performance indicators shall be developed in order to facilitate the implementation of the objectives and its evaluation of impact. The country strategy paper and the draft Multiannual Indicative Programme shall be examined by the geographically determined committee competent for development as referred to in Article 8(1), hereafter referred to as “the Committee”. The Committee shall give its opinion in accordance with the procedure referred to in Article 8(2).
3. The Multiannual Indicative Programme shall be negotiated and signed by the Commission and the South African Government. The final result of the negotiations shall be sent to the Committee for information. If requested by one or more Committee members, this document will be discussed by the Committee.
4. The Committee shall once a year review the functioning, results and continued relevance of the country strategy paper and the Multiannual Indicative Programme. If evaluations or other relevant developments so indicate, the Committee may invite the Commission to negotiate with the South African Government amendments to the Multiannual Indicative Programme.
5. The Committee shall once a year, on the basis of a presentation by the Commission, discuss the general guidelines for the operations to be carried out in the year ahead.'
6.. Article 7(2) is deleted.
7.. Article 8 is hereby amended as follows:

((a)) paragraph 1 is replaced by the following:
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1. The Commission shall be assisted by the South Africa Committee, hereinafter referred to as “the Committee”.'
((b)) in paragraphs 5 and 6 the amount of ‘EUR 5 million’ is replaced by ‘EUR 8 million’.
8.. In Article 10(1) the amount of ‘EUR 885,5 million’ is replaced by ‘EUR 900,5 million’.
Article 2 
This Regulation shall enter into force on the 20th day after its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Strasbourg, 27 October 2004.
For the European Parliament
J. BORRELL FONTELLES
The President
For the Council
A. NICOLAI
The President