News
tralac’s Daily News selection: 7 December 2015
The selection: Monday, 7 December
This week, in Dakar: training workshop on trade in services negotiations for AU-CFTA negotiators
In spite of the task of negotiating and rule-making activity, at regional, continental and multilateral level, experience with services policy reforms is still young in Africa. Significant challenges exist in building the regulatory institutions that are needed to remedy market failures, appropriately sequence service sector reforms, and establish mechanism that promote the availability of essential services among poor people. Trade rules are complex and services negotiations are information and resource-intensive. Capacity building in services negotiations in key for African countries in order to effectively benefit from trade in services opportunities at bilateral, regional and multilateral levels but most importantly to prepare for CFTA Services negotiations.
Released today, in Harare: Capacity imperatives for domestic resource mobilization (ACBF)
The Africa Capacity Report 2015 sends a very clear message: with official development assistance to Africa diminishing, the continent will have to rely more on mobilizing domestic resources if it is to implement its development agenda. The ACR 2015 shows that this is possible, with a good number of African countries providing practical success stories based on strategies and initiatives that can easily be adapted to other countries. However, the capacity gaps to generate savings and taxes from domestic resources and allocate them to economically and socially productive activities remain glaring. [Download the report]
ADF12 & 13: is the AfDB delivering on its commitments? (IDEV)
The first of the three new evaluations, the Overarching Review, seeks to assess whether the commitments are being implemented fully and effectively. It distinguishes between “delivery”, such as producing an agreed document, and full “implementation” in practice. On delivery, the picture is largely positive, despite some delays. On implementation the journey is still ongoing. [Various downloads available]
Thirty years in Africa’s development: from structural adjustment to structural transformation? (UNU-WIDER)
Today’s policy agenda is subtle. Raising farm productivity; creating clusters of high value-added manufacturing and services; managing natural resource wealth in the public interest; making the right infrastructure choices; constructing financial systems that facilitate diversified economies; achieving inclusive urbanization; and adapting to climate change are challenges that have no easy (ideological) answers. [The author: Tony Addison]
Reminder: the Committee on Regional Cooperation and Integration meets today in Addis on the theme 'Enhancing productive integration for Africa’s structural transformation' (UNECA)
The African Cities Growth Index 2015 (Mastercard)
And Africa’s dynamic and fast growing cities are the strategic nodes where such an economic transformation could happen. Cities powerfully concentrate human resources and capability to create the necessary critical mass to support business investment and operations, and at the same time they are gateways for reaching out to the global market. Getting the basics right therefore also means making sure that cities in Africa can function effectively as centres of commerce, productive hubs for industries, and vibrant markets for consumers. This new edition of African Cities Growth Index provides a timely assessment of their potential. It is a roadmap to Africa’s future. [Download]
South Africa: Our cities are falling behind (TimesLive)
Nairobi lands position nine in African cities growth potential list (Daily Nation)
Lagos ranked among top three African cities (Leadership)
Nairobi tops Africa in financial services (Business Daily)
The State of City Climate Finance report (CCFLA)
The report is the first issued by the Cities Climate Finance Leadership Alliance, a coalition of over 40 banks, national governments and civil society organizations launched by the UN Secretary-General at the Climate Summit he convened in September 2014. The aim of the Alliance is to accelerate investment in low-emission, climate resilient infrastructure in cities, and to close the investment gap in urban areas over the next fifteen years. The report recommends five innovative routes for mobilizing investment in low-emission, climate-resilient urban infrastructure:
COMESA: 96% of all reported Non-Tariff Barriers resolved
In an effort to reinforce the current initiatives to eliminate the remaining NTBs, COMESA has now developed NTB Regulations to provide an efficient mechanism to address these barriers. The Regulations which have been circulated to Member States outlines the steps that concerned parties should go through. Specifically the Regulations require Member States to establish National Focal Points as well as National Monitoring Committee on NTBs. According to the Regulations, the initial stage of resolving the NTB is the exchange of information regarding an NTB between the imposing and recipient Member State. If the parties fail to resolve the NTB at this stage, they will engage a facilitator to provide factual information aimed at resolving the matter. The outcome of these proceeding will be enforced under article 171 of the COMESA Treaty that provides for sanctions.
EABC plans law on local sourcing (The East African)
The East African Business Council is now preparing a proposal to the EAC for introduction of the requirements that will compel foreign firms to provide opportunities for local businesses to participate in the projects. The EABC will ask for the EAC to develop local content framework and guidelines as a matter of urgency to enhance local firms’ role in the value-chain.
Kenya: MPs overrule Kebs in Sh4bn fertiliser import deal probe (Business Daily)
Members of Parliament have cleared a controversial Sh4 billion subsidised fertiliser supply contract, overruling the Kenya Bureau of Standards’ assessment that found impurities in some products imported through the port of Mombasa early this year. The National Assembly’s Agriculture Committee endorsed the three-year contract for the supply of assorted types of fertiliser citing submissions by Agriculture ministry and procurement officials.
Mombasa port raises red flag on excessive imports (Daily Monitor)
More than one million Twenty Foot Equivalent Unit—containers (TEUs) were handled in 2014. Latest traffic forecast indicate that the container traffic will rise from 1.1 million TEUs handled in 2014 to 3 million by 2015 and beyond, against current capacity of 1.1 million estimated in 2013/14; the port has to do more to cope.
One year later, Single Customs Territory drives growth in trade (The East African)
Rift Valley Railways begins revamp programme (Daily Nation)
AfDB gives Dar $348m to upgrade transport in Tanzania (The East African)
Johannesburg Summit of the Forum on China-Africa Cooperation: the declaration (GCIS)
We oppose trade protectionism in all its forms and are in favour of advancing the World Trade Organization (WTO) Doha Development Round negotiations and safeguarding and developing an open world economy. We further welcome the first hosting of the 10th WTO Ministerial Conference in Africa, taking place from 15 to 18 December 2015 in Nairobi, Kenya, and stress the importance of a successful meeting in Nairobi that brings tangible results and meaningful outcomes on the developmental agenda for Developing and Least Developed Countries.
UNIDO and CCPIT will conduct market research on developing countries to provide information on investment environment and policies, and UNIDO will assist CCPIT in arranging the visits of Chinese experts to Africa to promote China’s experience in the construction of its industrial parks. CCPIT will also facilitate the participation of Chinese enterprises in the construction of industrial parks in Ethiopia and Senegal, the two countries where UNIDO’s new Programme for Country Partnership is currently being piloted. A separate memorandum of understanding was signed between CAD Fund and UNIDO. The parties agreed to initiate their cooperation in the following areas: promotion in Africa of industrial zones, railways, roads, airports, seaports, manufacturing, and agriculture and agro-business; as well as food safety and quality infrastructure development; sustainable SMEs; investment and technology, infrastructure development and private sector development. They will also focus on building partnerships for South-South and Triangular cooperation.
China’s One Belt One Road Initiative: what we know thus far (World Bank Blogs)
OBOR can be big, indeed. In its largest definition, OBOR would include 65 countries, 4.4 billion people and about 4% of global GDP. China is backing the plan with considerable resources, setting up a New Silk Road Fund of $40bn to promote private investment along OBOR. The New Silk Road Fund is sponsored by China’s foreign exchange reserves, as well as government investment and lending arms. In addition, the Asia Infrastructure Investment Bank is widely expected to support the initiative with a considerable share of its $100bn in lending, and the China Development Bank reportedly said it would invest almost $900bn into more than 900 projects involving 60 countries to bolster the initiative. The Economist magazine reported that $1trn in “government money” would be spent on the initiative. [The author: Bert Hofman]
Deborah Brautigam: Highlights of Xi Jinping's pledges at the Johannesburg China Africa Summit
SADC's ES embarks on High-Level Policy Dialogue with Japan (SADC)
The Vice-Minister expressed Japan’s commitment to deepening its relations with the SADC Region, and affirmed that Japan intends to utilise TICAD VI as a vehicle for making its support to Africa more visible. “Among other things, Japan is considering ways of increasing the participation of public and private sectors, focusing on, among other things: Transport and Energy and the Development of Agriculture through agro-processing for value-addition”. Dr Tax presented the SADC priority regional infrastructure projects which are ready for investment. She emphasised the need to deepen SADC-JICA collaboration at the regional level through TICAD VI, and expressed the importance of regional projects to the investors. “Regional projects enable investors to benefit from economies of scale, a bigger market and achieve greater returns on investment. They are easier to implement due to multi-country participation and ownership", she said.
Harry Broadman: 'Can Japan jump-start growth by re-engaging in Africa?' (Forbes)
Zimbabwe: Grace's threatened border blockade slammed (The Standard)
South Africa: Leaky borders must be plugged (TimesLive)
Trade and Industry hosts discussion on South African economy (GCIS)
Where did the demographers in Africa go? (World Bank Blogs)
The demographic transition and labour markets in Sub-Saharan Africa (World Bank Blogs)
Illegal to pay wages in dollars in Mozambique from now on - lawyer (Club of Mozambique)
Adapting Central Africa’s agriculture to climate change, costly (UNECA)
Making trade policies more gender sensitive in the Caribbean (UNCTAD)
Diversification to Asia now weighs on India’s exports (Livemint)
Caroline Freund: 'Ex-Im Bank reauthorization...it’s about time' (PIE)
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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)
