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tralac’s Daily News Selection
The selection: Thursday, 30 June 2016
Later today: the release of South Africa’s May 2016 trade statistics. The ‘Bloomberg consensus’ is for another trade surplus in May, at R4.1bn, from R0.4bn in April. Standard Bank, however, expects a trade balance of R10.1bn.
Today, in Abidjan: the launch of the ACBF’s 2017-2021 Strategic Plan, Pledging Conference
The ACBF’s new five-year strategy will focus on four ambitious and mutually supportive strategic pillars. Strategic Pillar 1 - Enabling effective delivery of continental development priorities: this pillar targets the capacity development of pan-African institutions - the African Union, NEPAD Agency, and African Peer Review Mechanism - and of regional economic communities to increase their delivery capacities. The expected result by 2021 is increasing the delivery capacities of institutions leading Africa’s transformational agenda. To support these institutions, ACBF will achieve three intermediate results: i) improve its provision of integrated capacity development advisory services to pan-African institutions and RECs, ii) support pan-African institutions and RECs in prioritizing capacity development in their intervention strategies, iii) increase the effectiveness of pan-African institutions and RECs in implementing the continental transformation agenda. [Strategy synopsis, pdf]
Beyond AGOA: the 2016 Biennial Report on the implementation of the African Growth and Opportunity Act (USTR)
The US Trade Representative presented to Congress (Wednesday) a comprehensive report on implementation of the African Growth and Opportunity Act – the cornerstone of the US trade and investment relationship with sub-Saharan Africa. The report is statutorily mandated by Congress under the Trade Preferences Extension Act of 2015 to be submitted one year following the enactment of the Act, and biennially thereafter. Even as the United States works with African partners to maximize AGOA utilization, we are examining ways to enhance the US-Africa trade relationship beyond AGOA. Some countries – including Kenya and Mauritius – have expressed an interest in establishing more mature, long term trade relationships with the United States, including by entering into free trade agreements. The issue of a US-Africa trade relationship that expands beyond AGOA will be a focus of the AGOA Forum in September 2016 and our engagement with sub-Saharan African trading partners going forward. Table of contents (pdf):
Chapter I: The US - Sub-Saharan Africa trade and investment relationships
Chapter II: Country reports
Chapter III: Status of regional integration
Chapter IV: Status of trade capacity building assistance to Sub-Saharan Africa
Chapter V: Potential Free Trade Agreements with Sub-Saharan Africa
USTR report on impact of trade preferences on poverty and hunger
The report’s major conclusions (include): i) Economic research and available data also suggest that preferences are only one element in the larger set of trade policies that help promote development. Addressing supply-side constraints including slow and expensive port transits, costly telecommunications, the time and expense of managing overly complicated trade paperwork, inefficient internal transport and logistics bottlenecks, and other challenges is essential to success in trade, and tariff preferences cannot substitute for policy reforms in these other areas; ii) Preferences are of crucial importance to a number of least-developed countries which do not as yet have the capacity to negotiate and implement comprehensive FTAs.
IGAD, USAID sign agreement to strengthen collaboration on regional development (IGAD)
The activities supported by USAID are in the categories of Agriculture, Natural Resources and Environment; Economic Cooperation, Integration and Social Development; Peace and Security and Corporate Development Services within the IGAD region for the promotion of sustainable economic growth and resilience as well as improvement of management of risks in transcended borders in the IGAD region. The $17m is to strengthen the collaboration relationship and partnership between the two organizations, to outline a common understanding of how the U.S government supports IGAD priorities and to implement programs that will contribute to common goals of USAID and IGAD over the next 5 years. Ms Karen Freeman (USAID Mission Director of Kenya and East Africa) acknowledged the efforts that IGAD has made for some of the region‘s most remote regions to access trade, adding that this has not only promoted prosperity in those regions, but has also delivered better livelihoods to their communities thus putting IGAD in the forefront as a model for Integration as a partner and driver towards the achievements of USAID’s strategy in Africa.
East Africa Business Council in new push for countries to sign EPAs (New Times)
Further delay in signing the Economic Partnership Agreement will hamper East African Community partner states’ export to the European Union market, the East African Business Council (EABC) chief executive, Lilian Awinja, has said. EAC partner states earlier proposed that EPA signing ceremony be held in the first week of August, but the apex body of business associations of the private sector and corporates from EAC countries now recommends July 18, as an apt moment to take advantage of the EU Commissioner for Trade, who will be in Nairobi attending an upcoming United Nations Conference on Trade and Development conference. The EABC expectations are that all EAC partner states’ Ministers of Trade will also attend the conference in Nairobi in July and, therefore, be able to sign the EAC-EU-EPA on the same date to project the region as a functional Customs Union.
Improving the trading environment across the EAC: institutionalising the TIR initiative (Commonwealth)
Through the Export Promotion Council of Kenya, the Government of Kenya requested technical assistance from the Commonwealth Secretariat to develop a strategic action plan to institutionalise the Convention on International Transport of Goods Under Cover of TIR Carnets (TIR Convention), an international transit system. TIR appears to be feasible in Kenya and would also be beneficial to the region if implemented. Transit times and border procedures for exports out of the region via the coastal ports would be reduced thereby lowering costs and increasing export competitiveness. Institutionalising the TIR initiative in Kenya will likely prompt neighbouring countries, particularly EAC and Northern Corridor Member States, to also consider ratification. It is anticipated that the EAC Secretariat will recognise the advantages of the system for exports through transit countries to African continental and global destinations. [The analyst, Sujeevan Perera, is an adviser in the Trade Division, Commonwealth Secretariat]
Electronic SPS certification conference: presentations (Standards and Trade Development Facility, WTO)
The seminar, 28 June, i) reviewed existing international SPS and electronic data exchange standards and considered outstanding standard-setting gaps; ii) reviewed relevant initiatives aiming to streamline the automation of trade procedures and facilitate implementation of paperless trade to identify synergies and good practice; and iii) presented countries’ experiences in the area of exchange of electronic SPS certificates, shared lessons learned, discussed challenges faced and considered capacity building needs for developing countries. [Profiled presentation (pdf): 'Lessons learned from implementation of electronic phytosanitary certification in Kenya']
Geneva Ministerial Declaration: fifth meeting of trade ministers of Landlocked Developing Countries
We urge those LLDCs, which have not done so, to ratify the Multilateral Agreement on the establishment of the International Think Tank for the LLDCs in order to bring the Think Tank to full operation, and invite the Office of the High Representative and relevant organizations of the United Nations system, Member States, including development partners, and relevant international and regional organizations to support the think tank, as it will play an important role in enhancing the analytical capability of LLDCs and provide home-grown research to cater for our specific needs.
South Africa: Understanding the poultry trade (IOL)
Not many countries are involved in poultry trade and not all that many are the recipients of that trade. This is not truly a global production problem, but it is very much a problem for all the developing world markets as most trade is directed at these developing markets. As I will explain below, this impacts the existing industries in those countries and inhibits the establishment and growth of local poultry industries. [Kevin Lovell is chief executive of the SA Poultry Association] [Biosecurity key to ASF control in South Africa]
Uganda-Tanzania oil pipeline project now to begin 2017 (IPPMedia)
TPDC managing director Dr James Mataragio told The Guardian in an exclusive interview on Monday that prerequisite technical and commercial agreements for the $4bn project are in the process of being prepared and everything should be ready by December this year. The much-awaited pipeline project to be implemented by TPDC will enable Uganda to start exporting its sizeable reserves of crude oil via the port of Tanga in Tanzania by 2020. According to Mataragio, two particular documents - the “host government agreement” and “inter-governmental agreement” - will outline the roles of both countries in relation to the project. The pipeline company (PipeCo), whose registration is expected to be completed by the end of the year, will comprise the two governments (Uganda and Tanzania) and the three international oil companies with stakes in the project - Total SA (France), Tullow Oil (UK), and Cnooc Ltd (China – as the main shareholders, he explained. [Uganda to secure Shs8 trillion loan for Malaba-Kampala SGR route]
President Kenyatta wraps up his visit to Botswana (Daily Nation)
President Uhuru Kenyatta has wrapped up his three day State visit to Botswana where he pushed for a review of regulations that limited business and employment opportunities between Kenya and the southern African country. Top on the agenda during the talks was a review of immigration rules that made the obtaining of work permits restrictive. President Khama agreed to review the rules so that Kenyans can continue accessing employment and work opportunities in the country. Kenya and Botswana have agreed to collaborate to develop Kenya’s mining sector where the southern African country’s experience will help.
Botswana: Diamond sales fall again in June (Mmegi)
De Beers yesterday reported that the June sight sales fell for the second consecutive time to $560 million, which the miner regards as a typically slower period of the year. Although the decline in fifth sight sale represented a second straight downward trend, diamond sales this year are still significantly higher than in 2015, a development that would be a boost for Botswana.
Rail the key to unlock growth in Africa (Business Day)
We need to build on that proven maintenance capacity by devising innovative ways to control the value chain. This is where African governments need to make use of regulation. Supply chain industrialisation and growth must be the area of focus; policies must maximise local value-add, and spillovers from foreign direct investment, as well as tackle the fickleness of original equipment manufacturers. The nexus between global industrial networks and African economic growth must not be lost due to inability to control the supply chain of rail investments. [The author, Bongani Mankewu, is CEO of the Rail Road Association of SA]
Innovation in electronic payment adoption: the case of small retailers (WEF/World Bank)
A new study from the World Bank Group and the World Economic Forum estimates the global value of micro, small and medium retailers’ transactions. The total value of these transactions is estimated at $34 trillion, of which $19 trillion is paper-based transactions. Global estimates were extrapolated based on key markets including Colombia ($145bn), France ($950bn), Kenya ($63m), Lithuania ($8bn), Morocco ($96bn), Pakistan ($183bn) and Turkey ($410bn). The study proposes five key insights for companies and governments to move this $19 trillion from cash and checks to electronic payments, as it is safer, reduces the risk of corruption, and enables economic growth. [MIKTA workshop on electronic commerce, McKinsey Global Institute: Digital Europe - realizing the continent’s potential]
Why isn’t there more agribusiness investment in Mozambique? (SPEED)
UNECA's Carlos Lopes appointed Commissioner for the Global Commission on the Economy and Climate (UNECA)
South Africa to launch international migration Green Paper (GCIS)
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