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tralac’s Daily News Selection
The selection: Monday, 19 September 2016
The 6th Meeting of the Continental Task Force discusses fast-tracking the establishment of the CFTA (@AUTradeIndustry).
The UN Summit for Refugees and Migrants, in New York: conference website
Profiled conference resources:
South Africa: the minutes, documentation from last week’s parliamentary hearing on the Border Management Authority Bill.
African Union for Housing Finance: presentations from last week’s 32nd Annual Conference, on the theme ‘Housing and Africa’s growth agenda’.
Featured commentary, by Memory Dube: ‘Could emerging economies accelerate regional integration in Africa?’ (ICTSD)
It must be stressed from the onset that, to date, emerging economies’ influence on African regional integration has not been the result of targeted intervention. Instead, it consists of what observers can perceive by making connections and creating links between their trade, investment, and development aid interventions, where such interventions have regional implications. This, of course, is distinct from speeches or forum declarations where commitments to regional integration are made without specific allusion to any particular project. Emerging economies tend to have a bilateral, project-based approach to their engagement with African countries that, at cursory glance, cannot be said to speak to regional integration. Africa’s “traditional” partners (mainly EU countries), on the other hand, have long supported African regional integration efforts through trade-related development aid, with well-established technical support structures and capacity building initiatives. In considering the current role of emerging economies in regional integration, there are three avenues that can be considered: trade, investment, and development aid.
Financing the African Union: F10 Ministerial workshop (AU)
The two-day conference saw the Committee of Ten Finance Ministers (F10) convene to share ideas and best practices of implementing the decision. The F10 (representing the five African regions East, Southern, West, North and Central) met to discuss the draft terms of reference of the F10 which among others include; the review and evaluation of the annual budget of African Union before submission to the Assembly of Heads of State and Government of the African Union; propose implementation mechanisms of the Import Levy in particular; the collection of the funds, transfer of the collected funds and Peace Fund management arrangements. The F10 are also tasked with defining a roadmap for the implementation of the Decision, reviewing the status of the implementation of the 0.2% levy on all eligible imported goods into the continent to finance the African Union operational, program and peace support operations budgets starting from the year 2017 while ensuring the effective use of these resources.
The US-Africa Business Forum: Assessing progress and considering the stakes (Brookings)
Two years after the first US-Africa Leaders Summit and Business Forum brought together US and African CEOs in addition to heads of state and government, the US will convene a second US-Africa Business Forum on 21 September in New York City. Co-hosted by Bloomberg Philanthropies and the US Department of Commerce, the forum will emphasize opportunities for expanding US-Africa business, trade, and investment ties in key sectors positioned for growth, such as finance and capital investment, infrastructure, power and energy, agriculture, consumer goods, and information communication technology. While at the inaugural forum in 2014, nearly 150 CEOs from US and African companies announced more than $33bn in new deals - thus highlighting Africa as a strategic business and investment destination - this year, the forum promises to delve further into the question “How do you effectively do business in Africa?” It will also serve as an opportunity to assess how far the US has come in fulfilling its commitments from the last forum to the continent. [The analysts: Amy Copley, Amadou Sy]. Related Business Forum commentaries (Brookings): Witney Schneidman: Investing in solar energy, Robin Lewis, John Villasenor, Darrell M. West: ICT investment can drive economic growth, John McArthur: Expanding credit for small-scale irrigation
Women’s trousers top list of Kenyan exports to the US (Business Daily)
Official data shows that the United States ordered women trousers and shorts worth Sh4.2bn in the year to June, a 23.5% growth compared to Sh3.4bn in a similar period of 2015. The export of women’s wear has grown steadily over the last three years from Sh2.9bn in the first half of 2013, according to data from the Kenya National Bureau of Statistics. At Sh4.2bn women’s trousers accounted for nearly a third of the Sh13.4bn value of clothes shipped from Nairobi to Washington in the year to June, having grown by Sh1.5bn or 12.6%. [Kenya eyes more exports to US at Agoa summit]
East Africa: Illicit trade a security threat, region warned (New Times)
Pointing out the impact on security, Magdalene Munyao, Chairperson of the Anti-Illicit Trade Committee of Kenya Association of Manufacturers, said the crime is conducted by organised criminal groups, and was an opportunity for financing terrorism. Shedding light on the impact of illicit trade on investments, government revenues and social welfare, Munyao noted that it is a front for money laundering and has the potential to sabotage national economies. “KAM urges governments, the private sector and the consumers to work together in fighting this common enemy so that we may be able to; enhance the regional and national regulatory frameworks in order to protect EAC investments and consumers,” Munyao said. [Illegal trade ‘costing East Africa $500MN in tax’]
Tanzania changes tune on food exports to East Africa (The East African)
Tanzania is set to introduce new rules on food exports after it lifted a ban that had seen Uganda become the main source of grains in the region. The government said the lifting of the ban was prompted by forecast of surpluses. However, exporters will still require permits for rice and maize, and quotas will also be introduced to limit the export quantities. The Minister for Agriculture, Livestock and Fisheries, Charles Tizeba, said the new rules were meant to curb practices that jeopardise food security such as pre-harvest sale of produce. Mr Tizeba said traders were now free to export maize, sorghum, millet, rice, wheat, beans, cassava, potatoes and bananas potentially providing a respite for Rwandans who have over the past two months borne high food prices following a ban of exports there by Burundi.
Kenya to lose regional fuel market (Daily Nation)
The image of a visibly angry Energy Cabinet Secretary Charles Keter moving from one petrol station to another two weeks ago pouring adulterated fuel in Nakuru not only raised eyebrows but also questions why he was doing a job that would ordinarily be done by junior ministry officers. In the end, seven fuel companies had their licences cancelled. But Mr Keter has a bigger reason to worry. But on the regional front, all EAC countries apart from Uganda and Tanzania have since the beginning of the year reduced the amount of fuel they import from Kenya due to concerns over adulteration. So dire is the situation that Rwanda, which imports on average 60 metric tons of diesel through Kenya, completely stopped doing so in July opting for Tanzania which it claims has cleaner fuel and has a bigger axle load limit offering better economies of scale. Burundi, too, has since May not imported any diesel from Kenya.
Tanzania: Involve Parliament in EPAs, Ndugai advises government (The Citizen)
National Assembly Speaker Job Ndugai has asked Prime Minister Kassim Majaliwa to bring the Economic Partnership Agreements to Parliament so they can be debated before the government decides whether or not to sign them. In his remarks after the Premier had adjourned the august House on Friday, Mr Ndugai noted that MPs would have valuable input on the matter. His call comes only a few days after members of the business community also asked the government to involve them in deliberating the documents. They blamed the government for sidelining them in the last ten years during which it has been consulting with the EU through the EAC. [Honest Ngowi: ‘Postponing signing of EPAs: looking at issues of concern’ (The Citizen)]
South Africa: Busa rejects border agency due to cost (Business Day)
Business Unity SA has added its voice to growing opposition to a mooted border management authority and cautioned against such a move, citing the strain this would place on the fiscus when the country is faced with the prospect of having its sovereign credit rating downgraded. Busa pointed to the socioeconomic impact assessment study conducted on the formation of such an entity, which showed that setting up a border management authority would cost R15bn-R24bn, while capacitating the South African National Defence Force would come at a projected R2.5bn price tag. “The fiscal space for the establishment of the [authority] is simply not available.” [Government’s refugee plan is overkill]
South Africa: Review of system for import tariffs on key foods is nearing completion (Business Day)
The International Trade Administration Commission aims to complete its review of the system for determining import tariffs on wheat, maize and sugar before year-end, chief commissioner Siyabulela Tsengiwe said on Friday. Tshenge said in briefing Parliament’s agriculture portfolio committee that Economic Development Minister Ebrahim Patel had directed Itac to review the dollar-based domestic reference price and varied tariff formulas for the three commodities. "The reasons for these reviews are changed circumstances," he said.
Zimbabwe: SI64 paying dividends (Sunday Mail)
“We are happy to note that there are some industries that are now reaching 100% capacity utilisation, with cooking oil industry pushing to between 90 and 100 percent from around 50% a few months ago,” said Industry and Commerce Deputy Minister Chiratidzo Mabuwa. “The yeast industry was almost closed but it’s now at 83% capacity utilisation while the biscuits manufacturing industry has gone up from 35% to around 75% because of SI64. “Some big companies were about to fold because we were importing products that they were producing. We corrected that and gave them an opportunity to produce those goods,” she said. The deputy minister dismissed suggestions that SI64 pushed the prices of basic goods upwards.
UNCTAD eyes an agricultural future for successful customs automation (UNCTAD)
Trade in agricultural commodities is the next frontier for UNCTAD’s ASYCUDA program, which reduces bureaucracy, corruption, and trade delays in as many as 93 developing countries by automating customs procedures. The first country to pilot ASYCER - which stands for Automated System for Certification - was Ethiopia. "Flowers are especially perishable, and cutting customs clearance times can bring significant benefits to farmers," said Fabrice Millet, Chief of the ASYCUDA program at UNCTAD’s Division on technology and logistics. ASYCUDA is UNCTAD’s largest technical assistance program.
MERCOSUR is not really a free trade agreement, let alone a customs union (Vox EU)
The fact that Argentina and Brazil do not coordinate their most actively changing trade policies of antidumping and safeguards has other important implications. Each can and does continue to respond to political-economic shocks independently. Yet, this also makes them unable to take full advantage of the benefits of a customs union arrangement. In particular, the inability to credibly coordinate joint policy changes means they have been unable to amass increased bargaining power vis-à-vis the rest of the world – that might have otherwise arisen through increases in their (joint) import market power – to better negotiate collectively. [The analysts: Chad Bown, Patricia Tovar]
Deconstructing India’s Model Bilateral Investment Treaty (The Wire)
Released in 2015, a few provisions in the model treaty have drawn attention from trade partners. A greater look at this treaty, which will shape investor dispute battles in the future, is clearly necessary. There have been concerns regarding India’s model treaty and its seemingly protectionist approach that has come to inform this process. Recent reverses including the verdict in the Devas dispute, are also strengthening positions of both investors and the government. India has so far signed BITs with 83 different countries. According to UNCTAD, which keeps an account of the number of disputes, a total of 17 known investor-state dispute settlement cases were filed against India by the end of 2015. Of these seven are pending, nine were settled and India lost one case (excluding the recent Devas ruling). India was one of the top 15 most frequent respondent states in 2015 (sued most often). [The analyst: Priti Patnaik] [India’s appeal against WTO solar ruling rejected]
Aliko Dangote: Despite my influence, I need 38 visas to move around Africa (The Cable)
Cashaa, the Uber of money transfers, revolutionizes cash remittances to Africa (The Coin Telegraph)
Rwanda: Mining companies welcome revenue sharing scheme (New Times)
Ghana’s horticulture and floriculture potentials showcased (GhanaWeb)
Collins Odote: ‘We need more objective debate on the SGR’ (Business Daily)
China sets up council to promote investments with India (Indian Express)
Egypt sets up committee to resolve agricultural trade dispute with Russia (The Independent)
NZ dairy companies press WTO over Canadian subsidies
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