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tralac’s Daily News Selection
The selection: Monday, 26 September 2016
Profiled conference listings for this week:
Operationalization of Liberia National Trade Facilitation Committee (26-27 Sept, Monrovia), Senegal Trade Facilitation Committee (28-29 Sept, Dakar)
WTO’s Public Forum 2016: Inclusive trade (27-29 Sept, Geneva)
West Africa: corridor management co-ordination meeting (27-28 Sept, Abidjan)
East, Central Africa Roads and Rail Infrastructure Summit (27-28 Sept, Dar es Salaam)
African Ministerial Consultative Group on AGOA: the future of the US-Africa relationship beyond AGOA: talking points by David Luke (coordinator, ATPC)
The US perspective of the CFTA and engagement at the continental level is agnostic at best. Underlying this are concerns about the overlapping “spaghetti bowl” of regional economic communities in the African continent, the limited evidence of implementation of agreed integration, that continental integration in particular remains “behind schedule” and that it is not known in it what “disciplines will ultimately be included”.
In concluding this presentation it is important that I re-emphasise the cautions mentioned before. Principally this is to safe-guard African regional integration at the continental level. The benefits of doing so represent a more coherent and valuable partner for the US as well as being vital in promoting a prosperous Africa in line with Africa’s policy agenda at the African Union level. Lessons must be learned from the EU’s EPA experiences in Africa, as well as from the experiences of Latin America and South-East Asia. And efforts should be made to ensure that the least developed African countries are not prematurely pressed into liberalising when they are not ready. Ultimately the US is, and will remain, a highly important partner of Africa – not just in terms of trade, trade assistance and investment, but in development and strategic interests more broadly. [USTR’s Beyond AGOA report: looking to the future of US-Africa trade and investment]
Michael Froman, Amina Mohamed: ‘Tapping Africa’s full potential’ (Project Syndicate)
Last year, Congress reauthorized AGOA and extended it for another ten years. As a result, many companies are taking a fresh look at investment opportunities and sourcing options in countries such as Kenya and Ethiopia. But, because it focuses mainly on tariffs, AGOA has limited capacity to address other economic challenges in African countries, such as supply-side constraints to regional and global trade, and the need for greater value-added production and export diversification. Silicon Savannah companies, for example, are facing new and evolving challenges far outside the scope of tariff-preference programs, which are primarily a development tool. These challenges may be better addressed by policies resembling free-trade agreements, which define the rules of the road for bilateral trade. Silicon Savannah companies need, among other things, freer data flows, more transparent regulation, and access to services markets. Eliminating barriers in these areas will be critical for African entrepreneurs seeking to offer their products and services to American consumers, and to American entrepreneurs seeking opportunities in Africa. An updated policy framework is urgently needed.
Moody’s: US post-election shift in trade policy poses limited overall risk for Sub-Saharan Africa
The credit implications for sovereigns in Sub-Saharan Africa of a potential shift in the United States of America policies after the November election would materialize through trade, investment and remittances, but would be limited, says Zuzana Brixiova, a VP-Senior Analyst at Moody’s Investors Service. [Tony Elumelu: Changing the narrative on Africa in a changing administration]
AGOA: Nigeria calls for establishment of Africa skills fund (National Mirror)
Nigeria has called on the United States to assist in establishing an Africa Skills Development Fund to facilitate the training of skilled manpower among the army of unemployed African youths. A statement issued in Abuja said the Minister of Labour and Employment, Chris Ngige, made the call at the Labour and Trade Ministerial roundtable of the Africa Growth and Opportunity Act, held in Washington. Ngige who is the leader of the Nigerian Joint Labour and Trade delegation to the forum underscored the importance of such a fund in tackling unemployment and stemming the tide of poverty factors that hinder fair labour practices on the continent. [Ngige lists poverty, trade imbalance as bane of AGOA] [President Buhari’s speech at US-Africa Business Forum]
Mauritius’ Africa Strategy: MoU to facilitate movement of business persons and professionals (GoM)
Mauritius has signed a Memorandum of Understanding for the facilitation of movement of business persons and professionals between Accelerated Programme for Economic Integration countries, namely Malawi, Mauritius, Mozambique, the Seychelles and Zambia. The MoU is in line with the Africa Strategy aiming at expanding our economic horizons and providing, subject to relevant national legislation, Business Permits or short-term flexible Employment Permits with multiple entries to enable business persons and professionals to undertake a wide range of business activities. It is to be recalled that in line with the African Strategy, Mauritius has signed agreements with Senegal, Madagascar and Ghana for the establishment and management of Special Economic Zones.
AUC Balanced Scorecard: update (World Bank)
The African Union Scorecard is envisioned to be a tool which will provide performance data and analysis to ensure adequate programme development, management, monitoring and evaluation, and enable verification of progress made on AUC programs and projects consistent with the Agenda 2063 priorities and its 10 year plan. Some of the AUC scorecard features (to be implemented at the levels of the AUC, AU Organs, AU agencies, RECs, member states) will include: [Note: the EOI closing date has closed, posted for policy information purposes]
EALA joins push for legislative powers at ECOWAS Parliament (EAC)
The EALA Speaker, Rt Hon. Daniel Fred Kidega says the time for the ECOWAS Parliament to get legislative powers is now. Such a move, Rt Hon. Kidega notes would be a precursor to capacitate the legislature to enact laws and respond to demands of the populace of the West African region. Rt Hon. Daniel Fred Kidega made the remarks on 22 September as he delivered a solidarity message to the Assembly at the commencement of the 2nd Ordinary Session of the ECOWAS Parliament at the Parliamentary buildings in Garki, Abuja, Nigeria. He said EALA had contributed to strengthening of the integration process at the EAC - given its legislative powers, by passing over 70 pieces of legislation, all key to upping the stakes for stability and development in the EAC region. The EALA Speaker remarked that it was also necessary for the discourse on legislative powers to be scaled-up to the continental level. At the moment, the South African based Pan-African Parliament is also campaigning for the ratification of the new Protocol that is envisaged to give it powers to pass model laws for the continent. The new Protocol needs at least 28 ratifications to be enforced. At the moment, 10 countries have ratified the instrument but only two have returned (deposited) the same with PAP.
Malaria in the SADC region: situation and response analysis (SADC)
As national borders become increasingly porous, a harmonised and coordinated effort within the region is essential for malaria control. It is with that intention that the SADC Secretariat has commissioned the development of harmonised regional standards for malaria. The “Malaria Elimination Pathway”, a dynamic framework that tracks Member States through the various stages of malaria control and elimination was used to analyse the findings. A literature review followed by a site assessment visit by a group of malaria experts was used to gather information—and the findings are presented in this report.
DBSA eyes Brics Bank and diversification (IPPMedia)
In the DBSA’s annual report (pdf) CEO Patrick Dlamini noted that the new bank could be a threat as well as an opportunity – to a large extent, it will play in the same space as the DBSA. “Of concern is the ability of the New Development Bank to potentially provide preferential rates to clients due to its funding structures and financial strengths of the key founding countries,” wrote Dlamini. Speaking to City Press, however, he said that he “would be lying if he said this was a serious concern”. “At this point, they are still looking at their model for sub-sovereigns,” he said about the potential competitor for projects. “We need more partners,” he added.
Sudan: Realizing the potential for diversified development (World Bank)
A retrospective review, entitled Realizing the potential for diversified development (pdf), shows that Sudan’s economy has undergone three distinct periods of varying economic growth between 1988 and 2013. Sudan’s export markets are found to be highly concentrated as evidenced in large shares of the country’s top export items. There is hope however that the relatively low degree of concentration for non-oil products is a sign that the country already started to diversify its non-oil (export) products after the cessation of South Sudan. The report makes the following five policy recommendations for Sudan to make use of its potential for diversified growth and development:
Egypt: Country Strategy Paper 2015-2019 (pdf, AfDB)
The private sector contributes 62% of Egypt’s GDP, and over 65% and 70% of total investment and employment, respectively. Micro (1 to 4 employees), and small and medium enterprises (SMEs) (5 to 500 employees) comprise respectively 91% and 8% of the Egyptian private sector. Available indicators show that private sector competitiveness needs improvement. Indeed, Egypt ranked 116 (out of 140 countries) on the 2015/2016 Global Competiveness Index published by the World Economic Forum. Notably, Egypt ranks at or below the 100 mark on the three sub-components of the index: basic requirements (115), efficiency enhancers (100) and innovation and sophistication factors (113). Note, however, that the country gained 3 notches in overall ranking compared to last year ranking. The range of problems deterring private sector development and competitiveness are diverse.
Kenya will not stop maize imports from Uganda, farmers told (Business Daily Africa)
Kenya will not stop maize imports from Uganda as the two countries have signed East African trade protocol, Agriculture Cabinet Secretary Willy Bett has said. According to Mr Bett business between Kenya and Uganda will move seamlessly so long as the goods meet required standard. “We are not supposed to stop maize from coming in we are a block, we are East African Community and we have signed protocol. We challenge our farmers to be more competitive in crops production in order to remain relevant in the market,” said Mr Bett.
Maritime border row: Experts advise Kenya, Somalia to join hands (The EastAfrican)
Maritime experts are advising Kenya and Somalia to enter into a partnership in the exploitation of natural resources in the disputed maritime border, even as they continue to negotiate. They refer to the Nigeria and Sao Tome and Principe example, where the two states established Joint Development Zones in 2003 after it became clear that they could not agree on a maritime border. Kenya and Somalia are at the International Court of Justice (ICJ) where Mogadishu filed a suit in 2014 accusing Kenya of encroaching on 100,000 square kilometres of marine territory with potential oil and gas deposits in the Indian Ocean. The diplomatic negotiations had dragged for six years without success.
Raphael Kaplinsky: ‘Inclusive and sustainable growth: the SDG value chains nexus’ (ICTSD)
It is important to pay close attention while reading Section 4 of this framework paper which sets out an ambitious programme for a holistic analysis of the impact of GVCs on all of the SDGs. It is very unlikely that any one project will seek to undertake such comprehensive enquiry. Moreover, context differs between different types of GVCs and different types of economies. For example, the challenges faced by least developed economies with very large informal sectors and high levels of absolute poverty are different from those faced by middle and upper middle income economies. Similarly, the challenges faced and opportunities opened in sectors involving labour-intensive assembly are qualitatively different from those involved in the service sector and in high-tech industries. In addition, the resources available for the investigation and analysis of GVCs may be constrained in terms of both time and human effort. [Related ICTSD paper: Trade policies and sustainable development in the context of global value chains (pdf)]
Market access for products and services of export interest to LDCs: summary of recent developments (WTO)
LDC exports of goods and services grew by an annual average of 7.6% over the 2005-2015 period and, thus, slightly more than the exports of other developing economies (7.3% average). However, this fact is due to distinctly higher growth rates in the first part of the period. In recent years, LDCs’ exports were constrained by unfavourable developments in the prices of commodities. In 2015, LDC exports of goods and commercial services decreased by 20.1% to US$195.5bn, while LDC imports fell by 7.5% to US$303.6bn, resulting in an overall trade deficit of US$108.1bn. LDCs were able to increase their share in world exports of goods and commercial services from 0.7% in 2005 to 1.03% in 2014. However, in 2015, their share stood at 0.9% and hence fell below 1% for the first time since the crisis year 2009. This recent decrease reflected lower values of merchandise exports, due to falling prices of commodities. In 2015, merchandise exports of the LDCs contracted by 25%, a significantly bigger drop than in 2014. As a result, the share of LDCs in world merchandise exports decreased to 0.97%. As their imports declined by “only” 9% in 2015, the LDCs recorded a new high in their merchandise trade deficit (of US$87bn in 2015). [Addendum, pdf]
Tony Elumelu crowned Africa’s Investor of the Year
Mauritius: Towards the operationalisation of the Commonwealth Climate Finance Access Hub
UNCTAD issues new investment facilitation advice
OECD Working Party on Competition and Regulation: summary of hearing on disruptive innovation in the financial sector
Christopher Rooney: Tourism energizes South Africa’s jobs market
Deputy Secretary-General calls on development partners to boost aid for Lake Chad Basin, Lake Chad Basin Emergency (pdf)
Sahel and West Africa Club Secretariat: latest newsbrief
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