News
tralac’s Daily News Selection
The selection: Friday, 4 November 2016
Featured tweet, @WTODGAZEVEDO: Pleased to confirm my willingness to serve 2nd term as WTO DG. A lot done, much more to do. My letter to WTO members.
A series of postings on bilateral trade developments:
Zimbabwe – South Africa Bi-National Commission: joint communiqué (DIRCO)
The two Heads of State noted the growing economic cooperation between the two countries. In this regard, it was agreed to establish a Joint Trade and Investment Committee by the end of the first quarter of 2017. The Heads of State emphasised the importance of business to business interaction and the promotion of Public-Private Partnerships and joint ventures. The two Heads of State discussed the implementation of the SADC Protocol on Trade and the Bilateral Trade Agreement between Zimbabwe and South Africa, including various Statutory Instruments adopted by Zimbabwe related to import control management.
The Bi-National Commission highlighted the urgent need for the establishment of a One Stop Border Post at Beitbridge-Musina as decided by the Joint Permanent Commission at Victoria Falls in 2009. To that end, the Commission decided to finalise the modalities for its establishment by the time of the next Bi-National Commission in 2017. The two Heads of State called for further progress in the implementation of the SADC Industrialisation Strategy and Roadmap. In this context they looked forward to the adoption of the Costed Action Plan for the implementation of the Strategy and Roadmap at the forthcoming SADC Extraordinary Summit to be held in March 2017.
Invest in Zambia Business Forum, Sandton: Government refutes accusations of policy inconsistency (Lusaka Times)
Government has refuted accusations that it has been inconsistent with its economic policies saying all adjustments made previously were necessary as they were meant to protect the interests of Zambians. Minister of National Development Planning, Mr. Lucky Mulusa said that there has been cases of insincerity on the part of some investors and that Government has had to respond accordingly in order to safe guard the nation. “All the adjustments to policy should be seen as a way of trying to align things for the benefit of the people. These policy adjustments in the past were in response to the insincere conduct of some members of the business community. There is no way we can just wake up today and introduce a new law which we again change a few weeks down the line. All our actions are informed by how businesses in the country behave,” Mr. Mulusa said.
Chief Executive Officer for Trade Invest Africa, an initiative of South Africa’s Department of Trade and Industry, Ms. Lerato Mataboge, noted that total trade between the two countries grew from R19.9bn in 2011 to R31.9bn in 2015, making South Africa Zambia’s main trading partner in the SADC and Zambia, South Africa’s fourth largest trading partner in the region. Ms Mataboge said South Africa was conscious of the trade imbalance which supported her country and that this needed to be assessed and addressed. “Key to this will be identifying and establishing cooperative mechanisms for assisting Zambian businesses seeking opportunities to supply in the South African market.”
EU-Nigeria Business Forum: Harnessing Nigeria’s potential for economic growth (The Cable)
Akinwumi Adesina, president of the African Development Bank; Akinwunmi Ambode, Lagos state governor and his counterpart from Kaduna, Nasir el-Rufai, are to speak at the fifth EU-Nigeria business forum, set for 10-11 November in Lagos. This year’s event is themed Harnessing Nigeria’s Potential for Economic Growth will focus on creating opportunities for EU and Nigerian Small and Medium Enterprises to increase their businesses through the Enterprise Europe Network; identify opportunities in the textile value chain; and proffer options for accessing long term finance for the critical power sector in Nigeria. [EU’s grant to Nigeria may top €1.5b by 2020]
World Federation of Development Finance Institutions: CEO forum in Gaborone
The Citizen Entrepreneurial Development Agency is hosting the CEO Forum of the World Federation of Development Finance Institutions (WFDFI) in Gaborone, 2-4 November. In attendance will be the Chief Executive Officers and Senior Management Executives of Association of African Development Finance Institutions, the Association of Development Finance Institutions in member-countries of the Islamic Development Bank, the Association of Development Finance Institutions in Latin America and the Association of Development Financing Institutions in Asia and Pacific. Extract from the keynote speech by Mr Erastus Mwencha (Deputy Chairperson African Union Commission): There is an imperative need to revisit the role of African Development Finance Institutions with a view to reinforce their development potential and address their poor performance recorded over the last decade. In fact, over the last decade, African Development Finance Institutions have shown low levels of profitability, with an estimated 2.4% return on average assets, and a high level of loan impairment, with a 15.8% of impairment loans to gross loans. To avoid the repetition of this disappointing performance of African Development Banks, let me underline [five] policy actions that can help Development Finance Institutions remain relevant partners in achieving socio-economic transformation in Africa.
Former EAC secretary general, Nuwe Amanya Mushega, warns EAC against politicising East African Development Bank (IPPMedia)
Tanzania is the only EAC partner ‘without microfinance law’ (The Citizen)
Tanzania is the only country among EAC member states that has not enacted a law to regulate all microfinance activities, thus limiting their reinforcement and development. Tanzania Microfinance Association board chairman Joel Mwakitalu said this in Dar es Salaam yesterday during the second East Africa Microfinance summit. According to the deputy permanent secretary in the ministry of Finance and Planning, Ms Amina Hamisi, the cabinet has already approved the National Microfinance Policy and it is expected that in the near future, a Microfinance Bill will be submitted to the National Assembly.
Jamie MacLeod: The view from Geneva and implications for Africa (AgBiz)
E-commerce has evolved the global trade landscape, opening up trade to online platforms and extending the reach to a larger connected global market. On 26 October, GEG Africa hosted a study group, reaching out to key stakeholders involved in e-commerce trade and regulation. An extract from the presentation by Jamie MacLeod (pdf) (Trade Policy Fellow from the African Trade Policy Centre): E-commerce at the WTO now: (i) July 2016, seven new proposals submitted to WTO on e-commerce. Suggestions that new rules adopted by Dec 2017 (next Ministerial), (ii) But may detract from priority ‘remaining DDA issues’, (iii) Suggestions that e-commerce will be revolution that developing countries have been waiting for. Especially for MSMEs – therefore, should there be rules at WTO?, (iv) But what kind of rules? How would they help developing countries? What are the challenges facing developing countries with e-commerce? [What does 2017 hold for e-Commerce in Africa?: eCommerce MoneyAfrica 2017 (22-23 February 2017, Cape Town)]
Measuring broadband in SADC (CRASA)
In June 2015, SADC agreed to the key baseline conditions, especially the need for all SADC Member States to establish National Broadband Plans and related strategies by 2017. SADC also agreed to a definition and targets for broadband for sustainable socio-economic development. CRASA in conjunction with the International Telecommunications Union are convening a one-day workshop in Gaborone on 24 November. The workshop intends to bring greater awareness of SADC’s broadband targets as well as to identify the indicators to be used for the monitoring and reporting.
A hollowing out: Disjunctive policy in South Africa and implications for the trade agenda (tralac)
This working paper seeks to act as a discussion document on the dichotomous policy discourse in South Africa and the possible implications for trade strategies. Though the issues raised in this paper are applicable to South Africa’s trade strategy in general, particular focus will be placed on trade with Africa. [The analyst: Tania Gill]
Afreximbank to attract up to $1bn financing for trade and related infrastructure development in Togo
Speaking on Monday after meetings with Togolese President Faure Gnassingbé and several ministers, Dr. Oramah, who led a mission of business leaders to discuss trade and investment opportunities, said that Afreximbank saw opportunities to “participate in the financing of trade activities and logistics infrastructure, as well as industrial parks in Togo, for projects that are likely to span from $500m to $1bn”. The President said that following Togo’s joining as an Afreximbank participating state in May, the Bank was now able to fully deploy its programmes to support its growth sectors.
East African Community Competition Authority: new commissioners sworn in (EAC)
The appointed Commissioners were approved by the 33rd Meeting of the Council of Ministers held on 29 February, which considered nominees submitted by each Partner State and appointed them as Commissioners of the EACCA. The five Commissioners are: Mr Innocent Habarugira (Burundi), Mr Francis W. Kariuki (Kenya), Dr Frederick Ringo (Tanzania), Dr Didas M. Kayihura (Rwanda) and Mr Sam Watasa (Uganda). [Kenyan competition watchdog investigates Naspers]
IGAD advances implementation of AU declaration on land (IGAD)
The specific objectives of the workshop (2 November) were to validate commissioned reports on the mapping of the research and training institutions in the region and the country profiles of IGAD MS on respective status of land governance in order to agree on these as the overall guiding documents for work on land governance in the IGAD region. Participants were also expected to propose a roadmap 2017 for land governance work in the IGAD region, taking into account the findings of the consultancy reports submitted to them.
Rwanda: Govt considers plan to have 80% of coffee go through washing stations (New Times)
The NationaL Agricultural Exports Development Board plans to have 80% of coffee go through washing stations by 2018. Dr Celestin Gatarayiha, coffee division manager at NAEB, said this is part of the Government’s deliberate plan to promote specialty coffee. In 2002, Rwanda had no coffee going through coffee washing stations, which resulted into low quality coffee. But, from 2002 to-date, Gatarayiha said, about 50% of Rwanda’s coffee goes through the coffee washing stations.
Climate change and clean energy in the 2030 Agenda: what role for the trade system? (ICTSD)
This think piece covers six key policy challenges, namely reforming fossil fuel subsidies; creating room for subsidies to support scale-up of clean energy technologies; facilitating access, dissemination, and transfer of climate-friendly technologies; dealing with the political economy of local content requirements; pricing carbon nationally while tackling international competitiveness and carbon leakage concerns, particularly through border carbon adjustments; and designing “carrots” and “sticks” for more ambitious action under climate clubs. The think piece recommends prioritising policy actions in the short term mainly in three areas: fossil fuel subsidies; clean energy subsidies; and access, dissemination, and transfer of climate-friendly technologies. [The analysts: Kasturi Das, Kaushik Bandyopadhyay)
‘Dramatic’ action needed to cut emissions, slow rise in global temperature (UNEP)
A day before the landmark Paris Agreement on climate change comes into force, UNEP urged the world to ‘dramatically’ step up its efforts to cut greenhouse gas emissions – by some 25 more than those pledged in Paris last year – “to meet the stronger, and safer, target of 1.5 degrees Celsius” global temperature rise. UNEP made the announcement as it released its annual Emissions Gap report (pdf), which found that 2030 emissions are expected to reach 54 to 56 gigatonnes of carbon dioxide equivalent. The projected level needed to keep global warming from surpassing 2°C this century is 42 gigatonnes.
Enhancing transparency of climate finance under the Paris agreement: lessons from experience (pdf, OECD)
The Paris Agreement one year later: where are the Parties to Framework Convention on Climate Change? (tralac)
COP22 will take place in Marrakesh, 7-18 November
Can wind and solar fuel Africa’s future? (Nature)
Egypt, Ethiopia, Kenya, Morocco and South Africa are leading the charge to build up renewable power, but one of the biggest barriers is insufficient data. Most existing maps of wind and solar resources in Africa do not contain enough detailed information to allow companies to select sites for projects, says Grace Wu, an energy researcher at the University of California, Berkeley. She co-authored a report2 on planning renewable-energy zones in 21 African countries, a joint project by the Lawrence Berkeley National Laboratory in California and the International Renewable Energy Agency in Abu Dhabi. [The author: Erica Gies]
Today’s Quick Links:
Dar cuts work permit fee for Kenyans to Sh50,500 (Business Daily)
Six foreign investors to make drugs in Tanzania (Daily News)
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