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tralac’s Daily News Selection
The selection: Monday, 14 November 2016
Analysts recommend African Marshall Plan (DW)
A study by the Club of Rome think tank and the Senate of the Economy (Senat der Wirtschaft) business network is calling for a 120 billion euro ($130 billion) stimulus package from Germany to increase economic growth in Africa, generate wealth for the continent’s growing population and create jobs for its youth. "Germany is currently only spending 2 euros per head in Africa on development issues," said Franz Josef Radermacher, president of the Senate of the Economy, while presenting the joint study to German Minister of Eonomic Cooperation and Development, Gerd Müller in Berlin on Friday. The study proposes that a share of the funds required could be raised on capital markets, with the German government providing guarantees for investors. Other European countries would top up Germany’s 120 billion euro capital injection, the study suggests. [Download: Ein Marshall Plan mit Afrika]
ATPC, IDEP launch new training program on trade, gender and development (UNECA)
Aimed at middle and senior level officials in trade ministries across the continent, the course provided insights on the complex linkages between trade, gender and development and an overview of the policy responses to overcome gender imbalances in trade outcomes. For many participants, the course was the first opportunity to engage with gender questions in an in-depth way and it came at a crucial moment since negotiations for the CFTA are currently underway. A total of 25 officials from 15 Anglophone African countries completed the course. The next session of the course is planned for 2017 and will target Francophone African countries.
David Primack: ‘Services trade data – a fundamental roadblock to negotiations and policy-making to support structural transformation’ (ODI)
The relative paucity of services and services trade data has contributed to obscuring the role that services have increasingly been playing, alongside agriculture and manufacturing, in the process of structural transformation. While emerging research such as ODI’s Supporting Economic Transformation initiative and WIDER’s Industries Without Smokestacks project is helping to advance a more analytically rigorous understanding of the interactions different service sectors have in the transformation process, such efforts continue to be hampered by a number of services-specific data limitations. Unlike trade in goods, where a single document provides an internationally recognised product code and an indication of the country of origin and destination, as well as a transaction value, collecting service trade statistics is a highly subjective undertaking, prone to inaccuracies and a general dearth of availability. This is particularly the case for LICs, though the challenges prevail in other developing and even developed countries. These challenges are directly related to the nature of services trade and the absence of a physical item (and/or sometimes a payment) crossing a border where national authorities can track, count and record it.
Maya Forstater: ‘Illicit flows and trade misinvoicing – are we looking under the wrong lamppost?’ (CMI)
Challenging these estimates is not an argument for no action on illicit flows, nor is it a quest for impossible accuracy, but it is an urgent call for a more realistic conversation that draws in the expertise of revenue authorities, statistical agencies, customs agencies, law enforcement and businesses, as well as experts in natural resource governance and organised crime. There are four areas which are particularly relevant: [A response by GFI’s Matthew Salomon]
Zama Nkosi: ‘Africa cannot trade its way to an industrial revolution’ (Business Day)
Though it is important to participate in the global trade system and ensure progress on intra-African trade, the emphasis should be on the pace of technological advancement. This should particularly be the case in agriculture, a sector responsible for more than half of the employment and one-fifth of the gross domestic product in Sub-Saharan Africa. Such advances would constitute the foundations upon which trade can work for African citizens and economies. If not, the continental trade agenda could become a vacuous policy that does not meet expectations and produce results that enhance structural transformation. [Richard Munang, Robert Mgendi: Optimizing African food systems]
Peter Eigen: an update on the Fisheries Transparency Initiative (WEF)
The governments of Mauritania, the Seychelles, and others understand this better than anybody, of course, which is why they have been helping to establish the Fisheries Transparency Initiative (FiTI) since early 2015, an initiative to protect fish stocks through the twin principles of transparency and participation. The FiTI is a global multi-stakeholder initiative, in which countries seek to shed a light on access to fish resources – who has access, what are the (financial) conditions, and how much is extracted? Answering these important questions in a deliberative process will help countries to improve governance in this crucial sector for the benefit of their citizens. The FiTI is gathering steam.
EACJ now to deal with trade, investment cases (IPPMedia)
This is in line with a directive by the 16th ordinary sitting of the summit of EAC council of ministers that met in February this year. Speaking at the weekend, the registrar of the Arusha-based court, Yufnalis Okubo, said the summit had extended the regional court’s jurisdiction to allow it to cover regional trade and investment, among other issues. “We hope there will be an increase in cases filed concerning trade aspects as the EAC common market protocol is in its implementation stage,” Okubo said. According to the registrar, the court will later this month hear a case challenging all EAC partner states against signing the Economic Partnership Agreement and seeking to convince members who haven’t signed, not to sign.
Realising the ECOWAS regional electricity market: conference alert
Major players in the electricity sector in West Africa will meet in the Burkinabe capital of Ouagadougou on 16 November to push forward the agenda of the proposed regional electricity market. ERERA Chairman Honore Bogler said electricity regulation remained largely unknown to West African authorities, while the forum can enable regulators to convince policy makers that electricity regulation was the best way to addressing many power challenges in Africa.
Pointe Noire - Brazzaville highway opens Congo up for sub-regional trade (Africa News)
The previously abandoned road connecting the Republic of Congo’s capital, Brazzaville to its port city Pointe Noire has become a major route for the transportation of goods and people within Congo as well as within the central Africa region. The road had been neglected in favour of a rail line which connected the country’s north and south. An estimated 300 vehicles including trucks with loads of up to 50 tons use the highway daily.
Zuma calls for SADC special summit on drought
IGAD establishes a Sectoral Ministerial Committee on Migration: IGAD Ministerial declaration (pdf, IGAD)
EAC-USAID hold technical bilateral meeting on sidelines of COP22
EAC foreign affairs ministers back Amina Mohamed for AU post (Daily Nation)
Zambia: 2017 National Budget speech by Finance Minister Felix Mutati (MoF)
Total export earnings declined in the first nine months of 2016 compared with the corresponding period in 2015. Earnings from copper fell to $3.2bn from US$4 billion. Non-traditional export earnings declined to $1.3bn from US$1.6bn. This out turn was mainly explained by unfavourable international commodity prices. On international trade: We need to prioritise international trade as a tool for attaining inclusive growth and development. In 2017, Government will: (i) Operationalise the Bilateral Trade Agreements with the Democratic Republic of Congo and the Peoples Republic of Angola; (ii) Provide for advance ruling on rules of origin for goods originating from countries with which Zambia has signed trade agreements. These include SADC and COMESA member states as well as India and China; (iii) Implement a Single Window platform for various border agencies to enhance trade facilitation; and (iv) Establish trade centres at the borders of our major non-traditional export markets beginning with Kasumbalesa, Kipushi and Chirundu.
Zimbabwe: $11bn projects dead in the water (Sunday Mail)
Government departments and agencies whose mandate is to lure foreign direct investment are fretting over one key statistic: of the $12,6bn worth of investment proposals approved between 2011 and 2015, only investments valued at $2,1bn have taken off. Figures from the Zimbabwe Investment Authority, a statutory body mandated to attract domestic and foreign investment, show that in 2011 the country approved investments worth $6,6bn but realised only $387m in actual business. In 2012, the project approvals fell to $930m, and $400m translated into actual investment. Proposals dropped further to $686m in 2013, of which $400m was realised. Proposals topped $1,1bn in 2014, but there has only been movement in projects worth half the value. It was the same last year when ZIA approved investments worth $3,2bn — excluding the $3bn proposed investments by Nigerian billionaire Mr Aliko Dangote. Actual investments did not exceed $421m. Between January and August 2016, approvals fell to $452m. Though FDI has underperformed across Africa in line with slowing global economic growth, inflows into Zimbabwe are relatively underwhelming. [PPC: High manufacturing costs impede competitiveness]
Mauritius: Workshop explores sustainable growth opportunities for Mauritian entrepreneurs in Africa (GoM)
Targeting businessmen and entrepreneurs, the workshop covered business opportunities in Africa, challenges faced by local businessmen as well as methods of market entry. Participants were given an overview of several countries in Africa. Discussions included a contextual analysis of the continent as well as Africa’s political and economic background. Presentations were made on the political and economic backgrounds of the different countries. The most prospective countries that are suitable for Mauritian firms were also identified along with the types and categories of businesses that will be most suitable for operations in Africa. The Minister of Business, Enterprise and Cooperatives, Mr Sunil Bholah, recalled that the 2016-2017 Budget advocates to continue building on the Africa strategy where Mauritius has made concrete progress in the past year, with the signing of agreements with Senegal, Madagascar and Ghana for the establishment and management of Special Economic Zones.
Mozambique’s exports to the US: private sector identifies trade barriers (Club of Mozambique)
Fumane said that the US was willing to support the Mozambican private sector in removing barriers in order to increase in the volume of exports. US African Export and Administration Policy coordinator, Florizelle Liser, reaffirmed the US Government’s willingness to support the Mozambican private sector, noting that Mozambique had many products that it could export to the US duty-free but was not taking the opportunity. As a result, she said: “We had a meeting to see what we could do with the Mozambican government and private sector in order to increase the levels of trade relations.” A day before the meeting with the private sector the US representative met members of the Mozambican government to define a joint action plan aimed at promoting American investment in Mozambique and increasing trade between the two countries.
Tanzania does SDGs justice by engaging in Food Trade ESA (IPPMedia)
As one of the United Nations member countries, Tanzania is both supposed and expected to make sure that it meets the SDGs. It is already doing so by engaging and participating in a wide range of regional and other partnerships, one being the Food Trade Eastern and Southern Africa (Food Trade ESA) programme. Food Trade ESA has been set up primarily to facilitate the demands of SDG No. 2 – where the target is finding a sustainable solution to world hunger in all its forms and achieve food security in the world by 2030. Phrased a bit differently, the aim is to ensure that everyone everywhere has enough quality food to lead a healthy life. The promotion of sustainable agriculture is expected to improve the productivity and boost the incomes of small-scale farmers, in part through easier availability of land, technology and markets, all guaranteeing sustainable food production. This would be in line with the dreams of those who rooted for the birth of the national initiative known as Kilimo Kwanza (Agriculture as Priority Number One).
Universality and the SDGs: a business perspective (SDG Fund)
This report is based on interviews and input from private sector leaders through workshops in Africa, Latin America, Europe and the United States, with more than 100 firms representing various regions and industry sectors. The year-long series of workshops and interactive discussions provided valuable insight in to how companies were working to address the new set of goals. It also suggests many firms are working in the areas of SDGs, yet their work is not always linked to the goals or articulated as such. [Private investment facilitation in fragile situations: EOI for long term consultancy (AfDB)]
South Africa Botswana Bi-National Commission: joint communiqué
Egypt: IMF approves $12bn extended arrangement under Extended Fund Facility
Uganda promotes bankable investment projects in China (Daily Monitor)
East Africa attracts Sh78bn mergers (Business Daily)
Kenya: Govt to revive cotton industry, Agriculture CS Bett says (Daily Nation)
Tony Elumelu Foundation Entrepreneurship Forum: The day for 1000 African entrepreneurs (Premium Times)
Jan Hoffmann: ‘We have a new geography of trade’
DRC: UNSC delegation calls for consensual, inclusive electoral calendar
Legatum Institute’s Prosperity Index: download the latest report
Open Britain: Hard Brexit will lead to £1.2bn bombshell for British businesses
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