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tralac’s Daily News Selection
The selection: Thursday, 22 September 2016
From yesterday’s US-Africa Business Forum: remarks by President Obama
So we are making progress, but we’re just scratching the surface. We have so much more work that can be done and will be done. The fact is that, despite significant growth in much of the continent, Africa’s entire GDP is still only about the GDP of France. Only a fraction of American exports - about 2% - go to Africa. So there’s still so much untapped potential. And I may only be in this office for a few more months, but let me suggest a few areas where we need to focus in the years ahead.
Trade Africa Annual Report 2016 (USAID): Programme Impacts: The U.S. Government implements most of its Trade Africa programs through its three Trade and Investment Hubs, bilateral programs in the expansion countries, and interagency agreements. From July 2014 through 2016, the Trade and Investment Hubs facilitated more than $283m in African exports and $140m in investment. In East Africa, the initial focus of the initiative, the results over the past three years have exceeded most of Trade Africa’s targets: (i) EAC exports to the United States increased by about 36% between 2013 and 2015, and in the past five years, by 95%; (ii) The average time to trade goods across borders along the Northern Corridor, from Mombasa, Kenya, to Kampala, Uganda, decreased from 18 days in 2013 to four days in 2014 – a 77% reduction. From Mombasa to Kigali, Rwanda, it declined by 71%, from 21 days in 2013 to six days in 2014. And, on the Dar es Salaam, Tanzania, to Kigali route, it decreased by 80%, from 25 days in 2013 down to five in 2014; (iii) Since 2013, the East Africa Trade and Investment Hub helped generate about 29,000 new jobs through $27m in new investments in targeted sectors and over $163m in exports under AGOA.
Power Africa Annual Report: Third Year in Review (USAID): Despite significant progress to-date, challenges to expanding access to energy persist in sub-Saharan Africa. Power Africa partners have faced a host of external obstacles this year, including a deterioration of macroeconomic and political conditions. Falling commodity prices hurt African trade in 2016 and lower economic growth is expected as a result in the short-term. Lower global gas prices have posed financial challenges for countries seeking to take advantage of their own vast gas resources. Unpredictable and depreciated currencies, along with credit agency “downgrades” for investment in certain countries, left many investors sitting on the sidelines, waiting for the currency issues to stabilize before moving forward on particular deals.
Fact Sheets prepared for the US-Africa Business Forum: US-Africa Cooperation on Trade and Investment under the Obama Administration, US-East African Heads of State and CEO Roundtable
The 15th AGOA Forum starts today. The theme: ‘Maximising US-Africa trade and investment - AGOA and beyond’
Beyond AGOA: looking to the future of US-Africa trade and investment (pdf, USTR): AGOA has supplied the policy architecture for nearly two decades. But, while AGOA has had important successes, our experience suggests that it is unlikely to be sufficient for achieving transformative changes in trade and investment. To deepen and expand the US-African trade and investment relationship over the long term, we will need more effective mechanisms to address both tariff and non-tariff constraints to trade, at the border and beyond. Further, as US and African policymakers assess a future trade policy architecture, they may wish to consider certain guiding principles and some of the key lessons from US and African experiences building trade relationships in recent years. Specifically, a new US-Africa trade and investment policy architecture should: (i) support African regional economic integration (ii) move toward greater reciprocity (iii) support African value-added production and promote diversification of exports (iv) include African reforms across a broad range of policy areas (v) promote African integration into the global trading system (vi) account for different levels of readiness and capacity across the region.
Somduth Soborun: The way forward for Mauritius (Mauritius Times)
While we should continue to move up scale and towards high end in the production of textile products, apparel and garments, we should take immediate steps to diversify our exports base to gain better and more diversified access to the American market under the Act. The way forward (15 recommendations): (i) develop, put in place and execute a national AGOA exports strategy urgently; (ii) set up an AGOA Implementation and Monitoring Mechanism. The institutional structures must be centered round the main priorities of the of the AGOA country strategy. We need to set up small coordination committees to oversee and implement strategic actions and priority sectors; (iii) Set up an AGOA Promotion Authority for advisory, oversight and funding of operations of the above said items (1-11)
Trade and Development Report 2016: structural transformation for inclusive and sustained growth (UNCTAD)
Because countries will still need to benefit from the opportunities of international trade, albeit with lower expectations than in the past, new points of entry into existing markets must be found. Competition policy needs much more attention, given the market dominance of MNEs. Even without explicit cartel behaviour or the abuse of dominant market position through restrictive business practices, there may be other effects of a less competitive environment. These may be expressed indirectly through higher prices for banking services, transport or electricity. The combination of increasing concentration at the top end of GVCs and increasing competition at the bottom end may require a new global institution, such as a global competition observatory, to monitor trends along different segments of these chains and across sectors, and to ensure that firms outside GVCs are not unfairly impacted.
Although multilateral and regional trade and investment agreements have constrained many of the policy options that once helped today’s industrialized countries, some important space and flexibilities remain. It is important for governments to consider how they can work with local businesses to take advantage of the remaining policy space in a strategic manner. Moreover, governments can encourage MNEs to become actively engaged players in industry associations, joining local firms as much as possible to participate in formal discussions about industry needs and constraints, and help stimulate linkages and learning by monitoring processes that are an important part of the support-performance pledges described above.
Africa Partnership Conference 2016: Mauritius is well positioned to underpin development in Africa, says Finance Minister (GoM)
With over 25 years of experience in the global business sector, Mauritius is well positioned to make significant contribution in attracting, mobilising and channeling the necessary financial resources to underpin development endeavours of Africa. The Minister of Finance and Economic Development, Mr Pravind Jugnauth, made this statement yesterday at the opening of a two-day Africa Partnership Conference organised by the Board of Investment, in collaboration with the World Association of Investment Promotion Agencies, on the theme ‘Creating shared value through sustainable investment’. The Finance Minister recalled several initiatives taken by Mauritius, including the setting up of the new Africa strategy. The two-day conference brought together eminent speakers from around the globe, representatives from 19 African Investment Promotion Agencies, and some 150 potential investors from 25 countries across the world including both local and foreign participants from the private sector, policy makers and Government officials. [Conference programme, pdf]
Towards a more coordinated approach to the management of West African corridors (AfDB)
The meeting, 27-28 September, will be structured around two key initiatives that aim at promoting dialogue between different stakeholders involved in the projects. The first day will be dedicated to the Abidjan-Lagos Corridor development led by the AfDB, the ECOWAS Commission and the NPCA. Discussions on the second day will focus on the three corridors covered by the Accelerating Trade in West Afric project: namely Abidjan-Ouagadougou, Tema-Ouagadougou and Lomé-Ouagadougou. “This critical meeting is in line with the Bank’s commitment to promote efficient transport corridors in West Africa and support Africa’s regional integration agenda for inclusive economic growth. At the end of the meeting, we hope to be better equipped to improve the conditions of shippers, transporters and traders in West Africa when they engage in cross-border trade,” said Moono Mupotola, Director of the AfDB’s NEPAD Regional Integration and Trade Department.
Namibia: IMF completes 2016 Article IV Mission
After years of strong performance, growth is expected to temporarily slowdown in 2016. The IMF projects 2016 growth at 2.5 percent, compared to 5.3 in 2015, as the government starts consolidating and construction activity slows down. The performance is expected to accelerate to above 5 percent in 2017 and 2018 as production from new mines rumps up. Risks to this outlook are tilted to the downside and include volatile Southern African Customs Union revenue, further commodity price declines, and possible sovereign debt credit downgrades.
Mauritius: India pledges to support socio economic development (GoM)
The Minister of Finance and Economic Development, Mr Pravind Jugnauth, pointed out that various issues of strategic importance were discussed during his 13-18 mission to India, namely: the Comprehensive Economic and Partnership Agreement, implementation of the Metro Express, development of Ocean Economy, port development, visa on arrival, Overseas Citizen of India, liberalised remittance system, the Double Tax Avoidance Treaty as well as Mauritius’ Sovereignty over Chagos Archipelago. Minister Jugnauth stated that a grant of Rs12,7 million has been allocated by India for development projects in Mauritius particularly for infrastructure projects among others. He further pointed out that in addition to this financial envelope, Mauritius has solicited the assistance of India to extend an additional financial aid amounting to some Rs 7 billion hence bringing the total allocation to Rs 20 billion for the implementation of other major projects.
CoP-COMESA Knowledge Sharing Forum: trade facilitation, business climate and macro-economic convergence (AfriK4R)
From 22-23 September, in Lilongwe, AfCoP-COMESA-AfriK4R is organizing a forum to take stock of Managing for Development Results (MfDR) implementation in policies and strategies and discuss about successes, challenges and the way forward. The focus will be on MfDR implementation in three key policy areas: trade facilitation, business climate and macro-economic convergence. The forum will include the following sessions: (i) COMESA goals and objectives with regard to the three key policies (ii) status of MfDR in the COMESA region (iii) panels and roundtables to discuss case studies on trade policies, business climate, public finance management (iv) drafting Action plans or Roadmaps in the three key policy areas.
Botswana: National Aid for Trade strategy launches (Daily News)
Giving the overview of the strategy, the consultant, Dr Claudious Preville said it has three priority areas: diversify export-led economic growth and employment creation, strengthening human development outcomes and eradicate poverty and reduce inequality. He said the strategy has a number of objectives such as to improve trade performance and terms of trade, increase employment opportunities for women, youth and people with disabilities and modernize trade related infrastructure. Other objectives are to diversify the export sectors and strengthen the legal and regulatory frameworks to support trade.
Botswana: Call to revamp anti-competitive poultry industry (Mmegi)
The study, carried out under the Private Sector Development Programme, says although the poultry industry in Botswana is self-sufficient in local production, it is anti-competitive. It says the introduction of an import substitution policy in the poultry sector has led to the demise in its competitiveness. “The Control of Goods Act of 1979 was introduced to restrict the importation of eggs and poultry meat and thus promote local production,” the study says. Of the total 46,080 tonnes produced locally, the study reveals that 10% is by small-scale producers whose production patterns are erratic and inconsistent.
High-Level Commission on Health Employment and Economic Growth: new investments in global health workforce will create jobs, drive economic growth (WHO)
The Presidents of France and South Africa have called for urgent investments globally to create new jobs in the health sector in order to prevent a projected shortfall of 18 million health workers primarily in low- and lower-middle-income countries, and help countries to maximize the social and economic benefits of increased health employment. The High-Level Commission on Health Employment and Economic Growth, chaired by H.E. François Hollande and H.E. Jacob Zuma, delivered its final report and recommendations to United Nations Secretary General Ban Ki-moon on the sidelines of the UN General Assembly in New York.
President John Dramani says Africa needs ‘fair chance’ to trade, not sympathy or aid
President Macky Sall urges massive investment and fair development for Africa
West African leaders cite terrorism as singular challenge to global peace and development
President Hage Geingob vows to ‘spare no effort’ to lift nation’s people out of poverty
Kenya to spend Sh3 bn on mineral survey
Somalia faults Kenya’s argument on ocean row
State invites bids for six-lane super-highway expansion of Nairobi-Mombasa highway
World Bank, ILO announce the Global Partnership for Universal Social Protection
India: Current account deficit at 0.1% of GDP in April-June quarter
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