News
tralac’s Daily News Selection
The selection: Thursday, 3 November 2016
This week’s tralac newsletter is posted: the lead commentary is by Gerhard Erasmus ‘How to forge a better SACU? Not by following the news headlines’
Concluding today, in Midrand: the 1st MOVEAFRICA stakeholders meeting
Underway in Arusha: East African Community - exchanging and trading with the Francophone world
Underway in Malabo: UNDP Africa Senior Managers Annual Meeting on the theme ‘SDGs implementation within the framework of the 2030 Agenda and Agenda 2063’
From the UNDP Africa Cluster Meeting: speech by Helen Clark (UNDP)
UNDP is also working with the Economic Commission for Africa, the International Development Research Centre, and the World Wide Web Foundation on a new initiative to “Strengthen the Evidence base for an African Data Revolution”. An Africa Data Report will be published in early 2017, which assesses data availability, quality, and analytical capacities, and provides a baseline against which to measure progress on achieving the data revolution needed to support sustainable development in Africa. The UNDP will seek to engage with national governments and legislators, municipal leaders and councils, civil society, NGOs, the private sector, and other stakeholders, and will work to create broad awareness of the SDGs, including through the SDG Action Campaign. A recent survey by GlobeScan, a market research firm, found the average level of public awareness of the SDGs across thirteen countries was 28%. I’m pleased to say that public awareness in the two African countries in the survey was above average – at 34% for Kenya and 30% for Nigeria.
African Continental Free Trade Area: developing and strengthening regional value chains in agricultural commodities and processed food products (UNCTAD)
The focus of this report is to: (i) provide a literature review on the many methodologies on value chain analysis and development, particularly in the sector of agri-food products and in the African region, recapping the definitions of the concepts used in the value chain paradigm (Chapter 1), (ii) give an overview of the regional agriculture value chains of specific commodities existing at the regional level, including mapping, presentation of actors and focus on special issues such as trade barriers (Chapter 2), (iii) suggest methods for prioritization of regional agricultural value chains to be further developed, and to test this approach with the analysis of two priority commodities, the potential development of regional value chains in these sectors, with a view on value addition (Chapter 3), (iv) draw conclusions and policy recommendations for fostering and establishing regional value chains in agricultural commodities and processed food products in Africa (Conclusion chapter).
Chinese online marketing giant Alibaba considering partnership with COMESA
The Chinese online marketing giant Alibaba and COMESA are exploring possibilities of a partnership to facilitate trade and investment within COMESA region and globally. The partnership is envisaged to utilize the platforms that Alibaba has developed. COMESA Secretary General Sindiso Ngwenya invited Alibaba, to consider partnering with COMESA in rolling out the COMESA Electronic Market Exchange System. CEMES was developed to facilitate online business exchanges within COMESA and between the regional bloc and the rest of the world system. “We explored the possibilities of integrating an online certificate of origin for trade between China and COMESA countries in the COMESA Electronic Exchange System and it was agreed that this something that should be done,” Mr Ngwenya said.
Zambia: Government signs $2.3bn deal with Chinese firm to construct Chipata-Serenje railway line (Lusaka Times)
Government has signed a $2.3bn contract with China Civil Engineering Construction Corporation for the construction of a 388.8 kilometre railway line from Chipata through Petauke in Eastern Province to Serenje in Central Province. Speaking during the signing ceremony in Lusaka yesterday, Minister of Transport and Communication Brian Mushimba said: “This project is meant to enhance regional and international trade through the Nacala Development Corridor with a direct economic stimulus in Zambia, Malawi and Mozambique.” [Zambia on track to host China’s next African railroad]
Abidjan-Lagos Highway Corridor Project: update (ECOWAS)
In her keynote address at a two-day workshop in Abuja, the ECOWAS Commissioner for Infrastructure, Dr Antoinette Weeks, expressed the hope that the review of the initial findings, refined approach and methodology as well as the revised work plan of the inception report will lead to a harmonized realization of the project. The Commissioner disclosed that the AfDB has now approved a total of $22.72m (to be mobilized from the African Development Fund) and the European Union African Investment Facility for the feasibility and detailed engineering studies for the project.
New rural access index: main determinants and correlation to poverty (World Bank)
Transport connectivity is essential to sustain inclusive growth in developing countries, where many rural populations and businesses are still considered to be unconnected to the domestic, regional, or global market. The Rural Access Index is among the most important global indicators for measuring people’s transport accessibility in rural areas where the majority of the poor live. A new method to calculate the Rural Access Index was recently developed using spatial data and techniques. The characteristics of subnational Rural Access Index estimates were investigated in eight countries: Bangladesh, Ethiopia, Kenya, Mozambique, Nepal, Tanzania, Uganda, and Zambia.
A sea change: the new migration from sub-Saharan Africa (IMF)
Two trends dominate the evolution of sub-Saharan migration. The number of refugees - people fleeing due to war or persecution - has decreased considerably since 1990, both within and outside the region. In 1990 about half of total migrants were refugees, and this share has declined to only about 10 percent by 2013. At the same time, the share of migrants that move outside the region for economic reasons has increased steadily, growing sixfold between 1990 and 2013 - from about 1 million to 6 million. In comparison, economic migrants within the region increased threefold - from 4 million to 12 million (see Chart 1).
There is an ongoing profound demographic transition in the region that will further shape migration from sub-Saharan Africa. The population of the region will not only continue to increase rapidly- from about 900 million in 2013 to 2 billion in 2050 - but also the working-age population, the group that typically feeds migration, is set to increase even more rapidly—from about 480 million in 2013 to 1.3 billion in 2050 (see Chart 2). [The analysts: Jesus Gonzalez-Garcia, Montfort Mlachila]
Nairobi is set to become a 10-million-person “megacity” in a few decades: What does this mean for Kenya’s economy?(Brookings)
AfDB supports Nigeria’s Economic Governance Programme
Executive Directors of the AfDB have approved a $600m loan, being the first tranche of a $1bn budget support loan to help finance Nigeria’s Economic Governance, Diversification and Competitiveness Support Programme. The final tranche of $400m will be approved in 2017. This operation is part of a two-fiscal-year (2016-2017) programmatic counter-cyclical fiscal support in a context where the Federal Government of Nigeria is implementing reforms to achieve efficiency in the business of government, combat corruption and promote diversification and competitiveness of the economy.
Rwanda: IMF staff conclude review visit (IMF)
IMF staff agreed with the government’s assessment that longer term policies should help restore external sustainability. These include accelerating policies to support larger and more diverse exports and promoting domestic production of certain products currently imported, through the recent “Made in Rwanda” campaign. Performance under the program has been strong, with almost all program targets set through end-June 2016 being achieved. Nascent signs suggest that adjustment policies are proving successful at reducing the trade deficit for goods and services, further abetted by the recent completion of several large public investment projects. Although these developments are likely to contain growth at a still-robust 6 percent through 2017, by reducing external imbalances they should help maintain official foreign exchange reserves coverage at adequate levels.
UN envoy calls for concerted efforts to avoid rolling-back of gains in Africa’s Great Lakes (UN)
Concerted efforts would be needed to avert any reversal of the commendable gains achieved in Africa’s Great Lakes region thus far, the Secretary-General’s Special Envoy told the Security Council yesterday. Special Envoy Said Djinnit was briefing the Council on the Peace, Security and Cooperation Framework for the Democratic Republic of the Congo and the Region (Framework Agreement), and on the high-level meeting of the Regional Oversight Mechanism, held in Luanda, Angola, on 26 October.
African govts urged to harmonise energy laws to attract investments (New Times)
Kipyego Cheluget, the Common Market for Eastern and Southern Africa (COMESA) assistant secretary general for programmes, said uniform laws could play a big role in attracting more energy investors to drive Africa’s generation and distribution capacity. Speaking during the opening of the 3rd iPAD Rwanda Energy Infrastructure summit in Kigali, yesterday, Cheluget cited the COMESA region, saying it lacks investments in the energy and infrastructure sectors, generally, despite the increasing demand for power in the bloc. “It is, therefore, imperative that we expedite policies that will attract investments into the energy sector to facilitate trade and development on the continent,” he said. [New report shows how Africa’s electricity providers can be profitable and still make electricity affordable]
AIIB opens first consultation for landmark energy strategy (Devex)
The Asian Infrastructure Investment Bank last week launched the initial stage of public consultations for its first energy strategy — a crucial piece of policy that will play a significant role in the Beijing-based institution’s pursuit of becoming a “green bank”. Part of the strategy launch is the release of an issues note meant to aid the discussion and inform relevant stakeholders planning to submit recommendations to the bank. Renewable energy (RE) investments (extract from the Issues Note, pdf): Renewable energy investments are essential to limit CO2 emissions. It is proposed that AIIB engage clients to develop intermittent RE [wind, solar photovoltaic (PV), run of the river hydropower] to reduce fossil fuel consumption and increase access to modern energy through decentralized generation. Moreover, data collected to date indicate that: (a) out of the 20 countries with the largest wind potential, only 4 are in Asia; (b) out of the 20 countries with the largest solar potential, 8 are in Asia; and (c) about two-thirds of the hydropower potential in Asia is untapped.
Turkey-Africa business forum vows to boost trade ties (AA)
Construction, food, healthcare and energy are some sectors where cooperation can be enhanced between Turkey and African countries, head of Turkey’s Foreign Economic Relations Board (DEIK) said Wednesday. Speaking at the Turkey-Africa Business and Economic Forum in Istanbul, Omer Cihad Vardan highlighted the wide range of opportunities available on both sides. There are 134 business councils from around the world linked to the DEIK, 34 of which operate with African nations to develop businesses there, he said.
India: Inaugural meeting of National Committee on Trade Facilitation (KNN)
Government has stressed the need to continuously move towards higher standards of excellence to make the trade ecosystem growth oriented and the need to do away with the multiplicity of committees looking at trade facilitation at various levels. The Cabinet Secretary and the Chairman of the National Committee on Trade Facilitation , P K Sinha emphasized that since the Trade Facilitation Agreement may become a binding Agreement shortly, India had to be in a state of readiness, especially for the Category ‘A’ commitments. He also directed that the Steering Committee, working under NCTF, will be co-chaired by the Revenue Secretary and the Commerce Secretary.
Senegal’s UNSC Presidency work programme (UN)
Open debates on “water, peace and security” and asymmetrical threats to peacekeeping would be highlighted by the Security Council this month, along with a range of items of ongoing concern, Fodé Seck (Senegal), Council President for November, told correspondents at Headquarters this afternoon. Wider cooperation with regional organizations would also be a prominent theme, Mr. Seck said at the monthly press conference on the Council’s programme of work. A more structured partnership with the African Union, including better ways to finance its peacekeeping operations, would be under consideration at an 18 November debate. Enhancing cooperation with the Organization of Islamic Cooperation would be discussed at a 17 November briefing, particularly in the area of fighting extremism and terrorism, along with ensuring that such ills were not associated with one religion. The 22 November open debate on water and its security implications would address the fact that water scarcity was generating conflicts around the world and States as well as non-State actors were using water as a weapon of war, he said.
Tanzania: MPs hit at govt over economy, Dar port slump (The Citizen)
SADC’s dependence on South Africa’s trade corridors slows (Engineering News)
G20 Data Gaps Initiative updates: Second phase objectives, action plans (pdf), German G20 Presidency in 2017 initiative
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