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tralac’s Daily News Selection
The selection: Thursday, 14 July 2016
Featured infographic, @InvestEAfrica: the state of EAC exports to the US
Now available: David Dollar’s study ‘China’s engagement with Africa: from natural resources to human resources’
Luke Warford: ‘Africa is moving toward a massive and important free trade agreement’ (Washington Post)
Given the CFTA’s potential and size, the United States and other international actors have reason to support the completion of the CFTA, and then to pursue new opportunities created by the agreement. This type of support might include directing resources to the African Union’s CFTA Unit, for example, as well as training and equipping trade negotiators. Moving forward, there will also be a need for existing U.S. trade policies, including the African Growth and Opportunity Act (AGOA), to coordinate with the CFTA in order to minimize barriers to trade across the African continent. By breaking down barriers between African countries and creating a single African market, the CFTA has the potential to reshape the continent, with implications for actors both within and outside of Africa.
AU Executive Council: highlights
Carlos Lopes: ‘Africa and the immigration conundrum’ (pdf)
One in every six university graduates finds a way out of their country of origin, making Africa’s migrants surprisingly educated. The highly skilled account for only 3% of Africa’s labour force but 35% of the new migrants leaving the continent. That partly explains why remittances continue to rise, last year attaining US$71bn or over 4% of the continent’s combined GDP. [Abridged version]
Dr Nkosazana Dlamini Zuma’s speech (pdf)
Many of these capacities for the implementation of Agenda 2063 are within our power and of our choosing. It includes the choice to be Pan African in our outlook and actions, as we collectively reflect on the African paradox: of a continent that is rich in natural resources, and yet its people are poor. The resolution of this paradox is indeed the mission of current generations of leaders and peoples of Africa. Some of the actions to resolve the paradox will have regional dimensions: as we strengthen integration, build common regional markets, develop infrastructure that connects us and harmonized policies so that we strengthen free movement of people, goods and services. We also have responsibilities at national levels. [AU appeals to countries to increase contribution (New Times), Dr Kazibwe AU election in balance (Daily Monitor)]
Tanzania's U-turn sparks calls for rethink of EU trade deal (New Times)
It is imperative for East African Community to listen carefully to the issues Tanzania is raising related to the Economic Partnership Agreement the bloc concluded with the European Union, a regional lawmaker has said. MP Abubakar Zein Abubakar, a Kenyan representative in the East African Legislative Assembly, stressed this during an interview with The New Times on Monday. On Monday, EABC chief executive Lilian Awinja told The New Times that Tanzania, as current chair of EAC, should take a “leadership role” in signing the agreement as it has been committed to the negotiations since the formation of EAC-EU EPA configuration in 2007.
EU downplays Tanzania's decision to opt out of EPA (The Citizen)
The head of the EU Delegation to Tanzania, Mr Roeland van de Geer, said the decision to sign or not to sign the already negotiated agreement was for the EAC to determine. Mr van de Geer spoke as the EAC technocrat behind the 14 years of negotiations said he was still optimistic Tanzania would come along. Elsewhere, reports in Kenya said the country's Foreign Affairs minister, Ms Amina Mohammed, was due in the country to hold talks with the government over its decision. Kenya's exports to Europe would be hardest hit should the EAC fail to sign the EPA. A top EAC official in Arusha said Tanzania's failure to sign the EPA would adversely affect the bloc's trade arrangements with the outside world, and eventually undermine the integration process. It would cause more inconsistencies for the region that will have to employ different trade regimes with the EU and complicate enforcement of the common external tariffs for goods entering the region from outside the bloc.
Africa-UK trade and investment agreements after Brexit (20 July, APPG, Royal African Society)
Following the Brexit vote on the 23rd June, the Africa APPG is carrying out an inquiry into the future of trade & investment agreements between the UK and African states. This is an initial exploratory meeting to begin reflecting on the EU Economic Partnership Agreements with African Regional Economic Areas and the UK's Bilateral Investment Treaties with African countries. What lessons can be learnt from their negotiation and implementation to date? Does Brexit provide an opportunity for bettering our trade and investment relationships with African countries? [Brexit won’t stop globalization (Bloomberg)]
Namibia's trade policy: three updates
Chicken import limit survives challenge (The Namibian)
South African poultry producers' legal challenge of the chicken import restriction which was introduced in Namibia as an infant industry protection measure three years ago has failed in the Windhoek High Court. Judge Ueitele said in his opinion, the applicants unreasonably delayed instituting the review application. Since the notice on the import restriction relates to the industrial policy of Namibia, it "cries out for finality in respect of those who have to plan the economic direction of the country, and those who have to make a decision whether they will or not invest in a given industry", he stated.
Government planning to simplify doing business (The Namibian)
The government plans to make it easy for doing business in Namibia by cutting the current red tape and reducing the time it takes to apply for business permits among many other things. The first phase of the Namibia National Single Window project is intended to be operational by April 2018, in line with the schedule set in the Harambee Prosperity Plan, trade permanent secretary Gabriel Sinimbo said this week. Sinimbo is confident that the project will be implemented within five years. “I am absolutely confident that Namibia will be able to implement the first phase of the National Single Window in less than three years, and a more comprehensive National Single Window solution in five years."
Meatco’s beef exports exceed N$1.28bn (New Era)
“The value of our international markets increased by 29.9, while the volume sold there also increased by 8.5%, confirming how important our high-value international markets are to the success of our business,” says Meatco executive for marketing and sales Cyprianus Khaiseb. Meatco’s international markets (the EU, Norway and UK), accounted for 74.07% of the company’s sales volume, compared to the local market, which accounted for 9.91%.
Tanzania: New ports boss pledges to end corruption, delays in 2 months (IPPMedia)
The Tanzania Ports Authority yesterday revealed a grand plan to solve its problems of bureaucracy, corruption, delays and theft of cargo at the port of Dar es Salaam within the next two months, asserting that the revamp - once complete - will put the port ahead of its commercial competitors along the Indian Ocean coastline. TPA director general Eng Deusdedit Kakoko revealed this during a public-private dialogue organized by the East African Business Community Council in the city. Kakoko said a team of IT experts specializing in port operations will deploy a customized surveillance and monitoring system aimed at doing away with such problems as identified at the port and related points of business. [TIC boss: Tanzania poised to double current FDI amount]
Abidjan-Ouagadougou transport corridor: funding update (World Bank)
The development objective of the Transport Sector Modernization and Corridor Trade Facilitation Project for Cote d'Ivoire is to improve the efficiency and safety of transport services on the Ivorian section of the Abidjan (Ivory Coast) - Ouagadougou (Burkina Faso) road transport corridor. The project has five components.
The Gambia: transport sector diagnostic study (pdf, AfDB)
In order for The Gambia to reap the economies of scale, which regional integration within ECOWAS offers, it has to develop part of the ECOWAS regional road corridors of Trans-Sahelian (Dakar – Ndjamena) and the Trans Coastal (Dakar – Abidjan – Lagos) within its territory and in addition strategically develop coastal shipping for effective trading within ECOWAS. But this should not only be about infrastructure but putting in place trade and transport facilitation measures and harmonization of cross border customs and immigration barriers that affect the level of and efficiency of regional transport services and trade. The capacity of the Gambia transport system to service regional trade however depends on the first hand on Senegalese authority’s willingness to facilitate transit and re-export trade and, on the second hand, on the political will of member states of ECOWAS to implement the existing transport and trade facilitation conventions that provide the framework for transport and trade facilitation along regional trade corridors and the bilateral and tripartite Road Transport Agreements with The Gambia; viz: [Related reports (pdf, in French): Problem associated with transport facilitation in West Africa and Action Plan, Opening road corridors study in Guinea and Senegal]
Need to increase direct flights between India and Africa, says Rwandan diplomat (LiveMint)
But one area that needs urgent attention is direct air connectivity, said an African diplomat in India, considering the rise in the number of people travelling between Africa and India. “An opportunity that is under exploited is connectivity between India and Africa. If you look at the Indian population in Africa and... you look at the traffic of African students coming to India, the patients coming for high-end treatment in some of the major hospitals here, I think we need to look at how to maximize connectivity, especially air connectivity,” Rwandan high commissioner to India, Ernest Rwamucyo, said.
Agri firms see hurdles in investing in Africa (Business Standard)
Prime Minister Narendra Modi's tour to Africa has revived enthusiasm over agriculture in African continent. Indian companies have started looking at African continent as the potential destination for investment in agriculture to meet deficit in India and elsewhere in the world. However, past experience suggests that the road is not free of hurdles.
African governments undermining corruption fight, AU body says (Business Daily)
Africans continue to face increasing risks of being short-changed in dubious and poorly negotiated oil deals between governments and multinational corporations involved in the extraction industry, the African Union's advisory board on corruption said at the side-lines of the ongoing summit in Kigali. “The kind of contracts made by our governments with these multinationals have not met the transparency standards needed, our people are short-changed in these contracts by multinationals, this needs to be addressed” said Daniel Batidam, the chairperson AU anti-corruption body said.
ACP Group, UN join forces to advance South-South cooperation (ACP)
The African, Caribbean and Pacific Group of States and the United Nations Office for South-South Cooperation (UNOSSC) today agreed to embark on concrete joint initiatives to foster South-South cooperation and triangular cooperation amongst their mutual constituencies. The agreement outlined the key areas of cooperation, including: fostering South-South cooperation and triangular cooperation among their mutual constituencies, as well with other developing countries to support intraregional and regional integration; deepening institutional partnerships to scale up knowledge-sharing, showcasing and scaling up of development solutions, and technology transfer;
US initiates WTO dispute proceedings against Chinese export duties on raw materials (WTO)
Angola spends over $1bn on road repairs, financed by China LoC (MacauHub)
China Wu Yi firms grip on Kenya roads with Sh16bn Waiyaki Way contract (Daily Nation)
Angola consolidates its position as Africa’s biggest oil producer (MacauHub)
Africa for Results Forum: update (Daily Nation)
China-Africa Industrial Capacity Cooperation: update (FOCAC)
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