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tralac’s Daily News Selection
The selection: Thursday, 10 November 2016
G20 trade measures monitoring report (WTO)
The WTO’s sixteenth monitoring report on Group of 20 trade measures shows that the number of trade-restrictive measures applied by G20 economies remains high, despite a slight decline against the previous period. This is of particular concern given the continuing global economic uncertainty and the WTO’s recent downward revision of its trade forecasts. The steady accumulation of trade-restrictive measures since the financial crisis has gradually increased the share of global trade affected by such restrictions. As of the most recent reporting period the share of world imports covered by import-restrictive measures implemented since October 2008 and still in place is 5% and the share of G20 imports covered is 6.5%.
Peter Draper: ‘Implications of a Trump Presidency: trade, and South Africa’ (Tutwa)
These are sobering days for the world, and particularly for the fortunes of the global trade and investment system. Why? Consider two pre-elections blogs that set out the key contours of a potential Trump trade agenda, and the powers he will shortly exercise should he seek to deliver fully on his promises.
Related: CBK moves to stabilise shilling after Trump’s surprise victory (Business Daily), Trump must nurture AGOA, help defeat Shabaab (editorial comment, Business Daily), Nigeria’s Industry, Trade and Investment minister, Dr. Okechukwu Enelamah: ‘It’s opportunity to promote inter-regional trade’ (The Guardian), What will a @realDonaldTrump presidency mean for US-Africa policy? (Africa Up Close), The only way African countries can avoid being hurt by Trump is to trade with each other (Quartz)
Rwanda negotiates modalities for contributing funds to ECCAS (New Times)
Rwanda is in the process of negotiating with Economic Community of Central African States an agreeable mode of contribution of membership funds to meet cost of operations and establishment of the body’s free trade area. During a meeting of the Ministers for Trade and Finance affairs in Kinshasa, in May, a special tariff was established to be imposed on imports by member states for products originating outside the region. The body fixed a 0.4% on all imports from outside the region. However, Rwanda is negotiating to be left out of the import levy model citing other commitments with the import levy model. According to Minister for Trade and Industry, Francois Kanimba, Rwanda, as part of the East African Community, is subject to a similar import levy arrangement of 1.4% whereby proceeds are earmarked for joint infrastructure projects. Rwanda also committed to another import levy under the African Union, which was unanimously agreed upon in July. Kanimba said these import levies being decided by different organs of regional bodies of integration pose a challenge, hence Rwanda’s request to make its contribution using a different model.
Abidjan–Lagos Corridor Programme: report of the steering committee (ECOWAS)
The meeting made the following comments on the presentation by AfDB: (i) it was noted that the implementation timeline proposed by the AfDB follows the Bank’s classic procurement cycle. However, the need to fast-track the process was recognized by all parties and restricted tendering will be considered in this regard for the procurement process. Consideration will also be given to dividing the Corridor in different lots (sections) and undertake the Corridor Development Studies. (ii) it was clarified that the activities of the Corridor Authority need not wait the completion of the studies and the Authority can be operational immediately. (iii) in the spirit of making rapid progress, the specific tasks required from each Member State towards the realization of the project will be defined and a timeline indicated for the accomplishment of these activities. Each country presented the progress made in ratifying the Treaty as follows:
European Development Fund 11: joint conclusions (SADC)
The High Level Group exchanged on the global challenges and identified the following as key issues: social-economic transformation, labour and irregular migration, poverty and food insecurity, radicalisation and violent extremism, economy and demographics, climate change, democracy, elections and good governance, natural disasters and terrorism. Extract from a statement by the EAC: During the meeting, the EU underlined the need to find sustainable financing solutions for donor-funded staff positions. The EU also announced a creation of a technical facility of 14 million Euros to support capacity building of project preparation on soft infrastructure projects. Under EDF 11, the EU has allocated 600 million Euros for the five Regional Economic Communities (RECs). All the RECs have up to the end of December 2016 to finalize on the identification of priority projects.
ECOWAS ambassadors adopt memoranda for a more stable region
The memoranda adopted during the 25th session of the Mediation and Security Council (ambassadorial level) were those on the political and security situation in the region, the statutes of the ECOWAS Council of the Wise, the adoption of 23rd November as ECOWAS Human Rights Day, the implementation of the National Early Warning and Response Mechanisms as well as for the consideration of the Agenda of the 37th Ordinary Meeting of the Mediation and Security Council.
Malawi Economic Monitor (World Bank)
While the overall trend towards a depreciation in the value of the Kwacha reflects uncertainties regarding Malawi’s macroeconomic outlook, it has also been driven by a general strengthening of the US dollar relative to emerging and developing country currencies. This is reflected by the Kwacha’s relatively lower rate of depreciation against regional currencies such as the South African Rand and the Zambian Kwacha. The strengthening of the US dollar has been largely driven by expectations of an increase in the US Federal Reserve Bank’s reference lending rate; by concerns regarding the sustainability of resource-fueled growth in developing economies led by Chinese demand; and by pressure on the Euro and British Pound after the Brexit vote in June (see Box 1). A decline in the value of the Kwacha results in an increased import bill for strategic commodities such as fuel, fertilizer and pharmaceuticals. Import cover in August stood at 4.1 months, unchanged from the same point in the previous year. This is an increase from the figure of 3.6 months recorded in May 2016, though this may partially reflect the impact of IMF disbursements. A drawing-down on reserves is likely to occur in coming months as the lean foreign exchange season approaches, particularly in the context of the high level of demand for food imports necessary to implement the humanitarian response to the drought.
Namibia: 25% NEEEF clause rethink (The Namibian)
The provision in the New Equitable Economic Empowerment Framework draft bill which will have white businesses sell a mandatory 25% shares to black people can be reconsidered. This was the view of the chairperson of the Law Reform and Development Commission, Yvonne Dausab. She said this during a plenary discussion at the Invest In Namibia conference, which ended in Windhoek yesterday.
Namibia: Investment Guide launched (The Namibian)
The Ministry of Trade, together with the Namibian Investment Centre, PwC Namibia and the Namibia Chamber of Commerce and Industry, has launched the second edition of the Business and Investment Guide for Namibia. It covers all major legal and regulatory requirements, explains processes and provides general information on Namibia to help investors and business owners.
Botswana: New strategy seen boosting AGOA exports (Mmegi)
According to the deputy permanent secretary in the Ministry of Investment, Trade and Industry, Ontlametse Ward, despite the market access opportunity for goods and services granted under AGOA, Botswana’s exports remain undiversified. Addressing delegates yesterday at the validation workshop of the draft AGOA national response strategy in Gaborone, she said this impacts negatively on the export sector and growth of the country. “The strategy reflects what Botswana wishes to achieve in improving the country’s economic growth through increased trade, expanding Botswana’s capacity in business and improving trade relations with the US and other international markets,” said Ward. She added that the response strategy was not developed in isolation, noting that it takes into account other strategies and policies currently in place.
New RSA-China grape protocol opens doors (Fruitnet)
South Africa’s new protocol for table grape exports to China will remove risk from direct shipments, enabling the industry to land product in peak condition and to develop the market for seedless varieties. Rod Hill, import manager with Chinese importer-distributor Joy Wing Mau, which is part owned by Capespan, said the previous protocol was “extremely harsh on the fruit”, and engendered two key challenges.
Tanzania: Standard gauge railway tenders announced (Daily News)
The government has invited bidders for construction of the remaining stretch of $7.6 billion standard gauge railway line from Morogoro to Mwanza which is expected to be carried out in four phases. The works include design and build contract for 336 kilometre stretch of the standard gauge railway (SGR) line from Morogoro to Makutopora, a 294 kilometre stretch from Makutopora to Tabora, a 133 kilometre long Tabora to Isaka and works contract for 294 kilometre stretch from Isaka to Mwanza.
Small farmers can earn big returns by investing in climate adaptation (IFAD)
The United Nations International Fund for Agricultural Development has issued a new report which shows that for every dollar invested through its Adaptation for Smallholder Agriculture Programme, farmers could earn a return of between $1.40 and $2.60 over a 20 year period by applying climate change adaptation practices. The report, The economics advantage: assessing the value of climate change actions in agriculture (pdf), was presented today at the UN Climate Conference in Marrakech. [World Bank: Prospects for livestock-based livelihoods in Africa’s drylands]
Africa’s new climate economy: economic transformation and social and environmental change (ODI)
Efforts to elaborate the extensive links, trade-offs and synergies across these economic, social and environmental subjects have been relatively limited. This report surveys and synthesises the existing evidence within a common analytical framework, to provide a clearer overview for decision-makers. This report seeks to make three main contributions: (i) to provide an integrated approach for thinking about and tackling economic, social and environmental concerns, taking into account both trade-offs and synergies; (ii) to tailor that approach to the sub-Saharan African context, taking account of the diversity of conditions and challenges across different countries; and (iii) to provide a decision-making lens that meets the practical needs of policy-makers.
Lesotho: Helping rural farmers to become certified exporters (World Bank)
Ntofela Pasa, a 30-year-old mother of two, spends her days managing Likhothola Farm, which her family owns with eight other households. Formed in 2012, when she and the other families joined their collective 10.7 hectares of land together, the rural farm employs 38 villagers who have gained experience in plant husbandry, post-harvest handling, and other farming skills. Now, Lesotho’s farmers can also export deciduous fruit to neighboring countries. Through a World Bank-supported project, Likhothola Farm recently earned a GlobalG.A.P certification for the production and exportation of apples, plums, peaches and apricots. The project is part of the World Bank’s broader $13.1m Second Private Sector Competitiveness and Economic Diversification Project, which aims to increase private sector investment, firm growth, and job creation through development of selected non-textile industries.
Agribusiness can help to unlock the true potential of Africa (World Bank)
In Ethiopia, access to simple market knowledge has also helped small food manufacturers grow. AfricaJUICE is the first Fairtrade certified fruit juice in sub-Saharan Africa and it has been able to expand through the provision of technical expertise and understanding global markets and industry practices. This assistance came from the World Bank, alongside equity financing of $6m. Agribusiness is growing fast, yet the true potential is stymied by limited mechanization, fragmented markets, price controls and poor infrastructure. For a sector that contributes 25% to Africa’s overall gross domestic product and accounts for 70% of all employment, it is an industry that presents enormous opportunities to investors. For policymakers and investors, one of the hurdles is knowing how to find and identify those small-scale farmers or food manufacturers that have really strong commercial potential. In Angola, this challenge has been met by the creation of a state-backed organization called Fundo Activo de Capital de Risco Angolana (FACRA). It is a public venture capital fund that supports Angolan SME’s in agribusiness and other sectors in building, innovating and expanding their existing business.
How to make services work for the poor? (World Bank)
Rwanda is a good case study, as ‘progressive disengagement from extension service in favor of private extension delivery’ is part of the government’s agricultural strategy. The Land Husbandry, Water Harvesting, and Hillside Irrigation (LWH) project served as a pilot for privatization: in the LWH project areas, farmers purchase agricultural services (inputs and extension) from One Acre Fund (OAF).
Brazil-Africa Forum update: strategies for the development of agriculture in Brazil and Africa (AfDB)
Can commercial farming promote rural dynamism in sub-Saharan Africa?: evidence from Mozambique (UNU-WIDER)
Tanzania: Local content policy bears fruits in natural gas value chain (IPPMedia)
Tanzania: Manufacturers’ plea on electricity (The Citizen)
Task force gets Sh10m to review Kenya’s tourism strategy (Business Daily)
UK trade deficit widens unexpectedly as exports fall despite pound drop (The Guardian)
Why FDI inflows to India are slowing down (LiveMint)
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