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tralac’s Daily News selection: 21 October 2015
The selection: Wednesday, 21 October
African, Caribbean and Pacific Ministers of Trade meeting yesterday in Brussels: selected updates
Opening statement by Minister Joshua Setipa (Lesotho)
When the current WTO Round was launched, it was referred to as the Doha Development Agenda, because it promised to deliver on development. So far that development promise has eluded us and has proved to be a mirage. Bur we have to keep on keeping on, pushing for our interests and to have our concerns fully addressed. We are concerned that some Members are even calling for the DDA to be abandoned altogether. We need to discuss how to respond to such calls. The European Union, our key development partner is currently debating its future trade and investment policy. Part of the strategy that the EU has outlined is a welcome proposal to reinvigorate the multilateral trading system. But there is also the idea of, and I quote, “turning the page on the DDA”. How will this be done?
ACP trade ministers ‘concerned’ with preparations for upcoming WTO ministerial (ACP)
Roberto Azevêdo: Africa can be biggest winner of MC10 (WTO)
The Director-General gave a frank assessment of the current situation: “But just as important as any deliverables in Nairobi will be the direction of our work after Nairobi. There are big decisions to take about the future of the system. We have to ensure that the WTO continues to be operational, so that developing countries continue to have a seat at the table. I urge African members to get involved in this conversation now.”
EU Commissioner for Trade, Cecilia Malmström meets ACP Ministers (Europa)
"This is a critical time for the WTO", said Commissioner Malmström. "I really wish for the EU and ACP countries to stand side by side in trying to steer the discussion towards tangible results. Expanding opportunities to trade through the multilateral system is crucial to foster development and prosperity.”
@AMB_A_Mohammed: The meeting also examined and adopted the ACP Declaration on the outcome of MC10
CS Amina rallies Africa for success of Nairobi WTO Conference (CapitalFM)
South Africa: October stands firm behind controversial investment bill (Business Day)
Department of Trade and Industry director-general Lionel October has defended the department from fresh claims that the Promotion and Protection of Investment Bill was ill thought out and that it placed SA at risk of international litigation. The proposed bill seeks to provide a harmonised and standard legislative framework to govern investments, replacing bilateral investment treaties that the government has terminated. Mr October said in an interview that critics of the Bill who argue it contradicts SA’s obligations under the Southern African Development Community’s finance and investment protocol, have their facts wrong.
Chinese government pledges $50bn to industrialise South Africa, African continent (GCIS)
The Chinese government reiterated its commitment to support industrialisation in South Africa and the rest of the African continent by pledging $50 billion towards industrialisation projects. The pledge was announced during a courtesy visit by the Vice Minister of Commerce of China, Mr Zhang Xiangchen to the Director-General of the Department of Trade and Industry, Mr Lionel October in Pretoria. “China-Africa industrialisation partnerships will be at the forefront of any development in the continent followed by agricultural activities. China will also increase investments in Africa especially in the Special Economic Zones and provide training in those sectors,” said Xiangchen.
BRICS industry ministers meet in Moscow (BRICS Post)
BRICS industry ministers held their first meeting in Moscow on Tuesday. Officials from the five countries discussed “new opportunities for growth” and “collaborative multilateral infrastructure projects”, said a statement. “BRICS New Development Bank which has already started the selection of next year’s priority projects, will contribute in attracting investment in joint projects in a wide range of industries,” said Minister of Industry and Trade of Russia Denis Manturov. Russia has worked out a ‘roadmap’ on boosting intra-BRICS trade ties through till 2020, the minister said. It includes projects in manufacturing, mining, engineering, energy and many other sectors of the economy. The Russian Trade Minister during Tuesday’s meet also urged governments to eliminate trade barriers between the BRICS countries and the members of the Russia-led Eurasian Economic Union.
World Export Development Forum 2015: keynote address by Ms Valentine Rugwabiza (ITC)
Deeper and closer integration of economic communities such as the Gulf Cooperation Council and the East African Community will open up new trade and investment opportunities to encourage sustainable growth, thereby creating new jobs and prosperity for millions. However, this will not be easy given the challenging reality we are confronted with.
State corruption slowing business growth, Kepsa warns (Daily News)
The private sector wants the government to urgently address what its members feel are high levels of State corruption which are impeding the growth of their businesses. Kenya Private Sector Alliance (Kepsa) members told Treasury Cabinet Secretary Henry Rotich that unprecedented levels of graft particularly in state procurement were standing in the way of business despite a general improvement in business environment in the country. The members were speaking at a stormy closed door meeting held Monday between the government and business community.
Endemic collusion in the South African construction sector: reasons and implications (OECD Global Forum on Competition)
The paper analyses the number of cartel cases that have been considered and the value of cartel penalties that have been imposed by the Competition Tribunal and the Competition Appeal Court since the first administrative penalty was imposed. From this it concludes that until recently collusion was endemic in the industry. The paper then discusses the possible reasons for this and the implications for the future enforcement of competition law in South Africa. [The author: This paper by Robert Wilson, partner in the Competition Practice at Webber Wentzel, Johannesburg]
International comparison of South African private hospitals price levels (OECD Health Working Paper)
In summary, private hospital prices are expensive relative to what could reasonably be predicted given the country’s income and are likely to be expensive even for individuals with higher levels of income. However, the findings have implications far beyond the personal budgets of the fraction of the population that can afford them, as they set benchmarks for how much the public sector has to attract medical specialists to work in the public sector. This study suggests that policies to control price increases while ensuring accessibility and quality are needed. There is scope to improve the value provided to South Africans for their considerable spending on health care.
The Greater Horn of Africa region to prepare for El Niño impact (IGAD)
The main objectives of holding the regional consultative meeting are to provide forecast updates based on the expected strengthening of El Niño, its likely impacts and mitigation recommendations with relevant decision makers from the Member States, and to share the status of preparedness by the Member States. The organizers will also use the opportunity to facilitate national and regional climate experts to create awareness of key actors in the various sectors regarding the use of climate outlook products. A final communiqué on the Preparation for Early Action on the Impending El-Nino Impact on Member States is expected to be released.
Second Committee debate on disaster risk issues (UN)
Terrorism and climate change go hand in hand in delaying, and in some cases destroying, development gains, the Second Committee (Economic and Financial) heard today as it concluded its discussion on sustainable development. Antonio Gumende (Mozambique), associating himself with the Group of 77 and the African Group, stated that the Sendai Framework for Disaster Risk Reduction 2015-2030 had the merit of being multidisciplinary, comprehensive and people-centred, and should guide the collective efforts of the international community to better address disaster preparedness. His country was extremely vulnerable to natural disasters and the Government had approved a master plan for preventing and mitigating their effect, that involved measures such as simulation exercises focusing on floods and cyclones and activation of an early warning system.
Namibia: Farmers urged to plan for drought (New Era)
Commodity Markets Outlook: understanding El Niño (World Bank)
SADC: AfDB to conduct regional broadband study (NewsDay)
The African Development Bank has commissioned a study on infrastructure and broadband aimed at finding ways to improve the regional ICT infrastructure, an official from the Southern African Telecommunications Association has said. Currently, SATA is holding its workshop on regional ICT Infrastructure in Zimbabwe. The association will today present preliminary findings of the study to SADC representatives. The AfDB study began last month and is expected to be completed by December this year.
Transform Africa conference: Develop relevant business models, ICT firms told (New Times)
Growing digital lifestyle and technology uptake across the African continent will require corporations to have new business models that create value for consumers at the same time have valuable revenue streams, industry experts say. Speaking at the ongoing Transform Africa 2015 forum, players in the ICT sector said for corporations and start-ups to make the most of the technology uptake, the new operating models will require provision of unique digital content, exceptional customer experience and superior digitised platforms. The second edition of Transform Africa Summit in Kigali, which closes today, has attracted more than 2,500 delegates from more than 80 countries and 80 firms to deliberate on how to advance a more digital Africa. [Calls between Uganda and Rwanda up by 800% (New Vision)]
BOBS urges firms to establish local standards (Mmegi)
Botswana is forced to rely on international companies’ standards because it was rare to get locally founded standards, a senior standards scientist at the Botswana Bureau of Standards, Poppy Kgabung said. Speaking at the World Standards Day commemoration here last week, Kgabung said if local companies did not have standards in place, government is compelled to source base materials from international bodies like the South African Bureau of Standards.
Migration governance and migrant rights in SADC (UNRISD)
Attempts at regional coordination and harmonization of migration governance have made limited progress and continue to face formidable challenges, although recent developments at national and regional levels show some promise. In conjunction with the 2003 SADC Charter of Fundamental Social Rights and 2008 Code on Social Security, incorporation of migrants into the SADC 2014 Employment and Labour Protocol could signal a shift towards more rights-based migration governance. The paper concludes by arguing that there can be no robust rights regime, either regionally or in individual countries, without extension of labour and certain other rights to non-citizens, nor a robust regional migration regime unless it is rights-based. [The authors: Belinda Dodson, Jonathan Crush]
Ethiopia leads in honey production in Africa (COMESA)
Currently COMESA contributes less than 5% of global honey production which is estimated to be 1.7 million tonnes annually. The region produces about 82,000 tonnes annually with Ethiopia contributing 45,000 tonnes; Kenya, Egypt and Madagascar follow with 12,000 tonnes, 5,100 tonnes and 4,400 tonnes respectively. Ethiopia also leads the African continent followed by Tanzania, Angola and the Central African Republic. It is estimated that less than 3% of the honey produced in COMESA enters the international markets partly because of food quality standard requirements in the developed countries.
High-level Conference on Feeding Africa: an action plan for African agriculture transformation (AfDB)
Ethiopia: Second Growth and Transformation Plan consultation
Tanzania’s Sh1 trillion port project threatens Mombasa hub status (Business Daily)
Zimbabwe: ATI treaty gets Parly thumbs-up (The Herald)
Museveni in trade, security talk with Algeria’s Bouteflika (Daily Monitor)
Bharti Airtel raises $400 million more from sale of Africa assets (Mint)
ASEAN regional non-tariff measures workshop (UNCTAD)
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This post has been sourced on behalf of tralac and disseminated to enhance trade policy knowledge and debate. It is distributed to over 300 recipients across Africa and internationally, serving in the AU, RECS, national government trade departments and research and development agencies. Your feedback is most welcome. Any suggestions that our recipients might have of items for inclusion are most welcome. Richard Humphries (Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Twitter: @richardhumphri1)
