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tralac’s Daily News Selection
The selection: Tuesday, 1 March 2016
For updates on today's EA Business Leaders Summit: follow @EABCArusha, #EABusinessSummit
Industrial policy in Africa: how to overcome the extractivist trap? The 17 presentations/papers from the conference (organised by FES Madagascar, 3-4 November 2015, in Antananarivo) can be accessed here.
Underway, in Addis: Towards an African-driven mineral governance framework (UNECA)
Hosted by the African Union Commission and the African Minerals Development Centre, the purpose of the workshop [29 February-2 March] is to critically review, share and develop a technical methodology, workshop tools, and proposed themes for the planned continental Roundtable on the African Extractive Industry Governance Framework (AEIGF) to be held in Addis Ababa on 21 and 22 March 2016.
Underway, in Accra: Africa’s trade and development initiatives and the multilateral regime (TWN Africa)
The meeting [29 February-3 March] is coordinated by Third World Network-Africa, the secretariat of Africa Trade Network, and being held in conjunction with the Africa Trade Policy Centre of the UNECA, aims to: (a) deepen participants’ understanding of and engagement around the fundamental imperatives of Africa-wide initiatives such as the Continental Free Trade Agreement; and (b) assess these against the outcomes of the December Ministerial Conference of the WTO in Nairobi, and other multilateral negotiations like the EPAs; (c) use it to inform the progress of the CFTA negotiations, and (d) mobilise for greater visibility for Africa’s concerns in the UNCTAD XIV as a counter-weight leverage for addressing Africa’s issues of the global system.
CFTA negotiators establish their launch pad (Bridges Africa)
A CFTA agreement on trade in goods could begin with the TFTA and the Economic Community of West African States (ECOWAS) regional economic community which already has a common external tariff, according to African trade coordinators Zodwa Mabuza and David Luke. Commitments in the TFTA could be used as a starting point for CFTA negotiations with ECOWAS and the north and central African blocs. The CFTA is a complex institutional and legal structure and the first CFTA-NF meeting is important in relation to the technical preparations for the CFTA negotiations, as representatives from the AU Commission, the New Partnership for Africa's Development, the African Development Bank, and UNECA stated earlier this month. In order to meet the CFTA’s establishment deadline of 2017, negotiators will have to proceed effectively in their discussions throughout 2016.
EAC fiscal policy: are we moving in the right direction? (The Citizen)
The EAC Market Scorecard 2014 recommended that, to achieve harmonisation, the private sector and Partner States should agree a practical agenda for addressing inconsistent measures, and use a simple monitoring system to check if commitments are being completed within the stipulated time frame. It is not clear to what extent there is in place an effective monitoring system. And yet having such a system in place should be a priority as ultimately more progress in harmonizing tax policies and eliminating adverse tax policies will further boost wealth creation and competitiveness and so enhance the region’s attractiveness to investors. [The author, David Tarimo, is Country Senior Partner, PwC]
East Africa: Cross-border trade for increased integration (Daily News)
TMEA has also supported establishment of National OSBP steering committees and funded their meetings, which among other things, prepared bilateral agreements which serve as legal framework necessary for OSBP arrangements pending the entry into force of EAC One- Stop border legislation. Mr Lyimo said they expected a return of 30 US dollar for every dollar invested in Holili and Taveta facilities as well as other 53 similar posts funded by Trademark East Africa in East Africa and South Sudan. “We have invested about 117million US dollars in One Stop Border Posts and one access road, and what is exciting about this is that we expect a return of 30 US dollars for every dollar invested,” he said. [Related: EAC launches first One Stop Border Post at Holili/Taveta (EAC), Arusha-Voi road facelift to improve trade - report (The Citizen)]
South Africa: Merchandise trade statistics, January 2016 (SARS)
South Africa’s trade balance swings to a deficit R17.87bn in January from a revised R7.56bn surplus in December, the national revenue agency said on Monday. Exports were down by 18.8% to R71.5 billion on a month-on-month basis, while imports rose by 11% to R89 billion on a month-on-month basis, the South African Revenue Service said in a statement. The consensus for the trade deficit was R14.10 billion. Africa: Trade surplus -R11 848 million. This is a 14.1% decrease in comparison to the R13 798 million surplus recorded in December 2015. SACU: Trade statistics with the BLNS for January 2016 recorded a trade surplus of R7.62bn, a result of exports of R10.19bn and imports of R2.58bn. Exports decreased from December 2015 to January 2016 by R0.26bn (2.5%) and imports increased from December 2015 to January 2016 by R0.37bn (16.7%). [Why SA recorded 4th largest trade deficit in 6 years (Fin24)]
AGOA-South Africa updates: The cost to farmers of cheap meat imports (Poultry Site), Senators announce arrival of first US poultry to South Africa in 15 years (Poultry Site)
Namibia rakes in over $1bn from EU trade (Southern Times)
Namibia has raked in U$1.059bn from trade exports to the European Union, almost twice as much as the U$643m worth of goods imported from the EU for the year 2014/2015. Latest statistics dated February 2016 from the European Commission in Namibia shows that 26 percent of the U$1.059bn came from the exportation of fish and crustaceans, molluscs and other aquatic products. Zinc represents 19%, copper 18% while inorganic chemicals represent 9% with ‘others’ make up the other 27%.
Mozambique: Minister Tonela sacks Export Promotion Institute director (Club of Mozambique)
Mozambique’s Minister of Industry and Trade, Max Tonela, has sacked the General Manager of the Export Promotion Institute (IPEX), Celia Candrino, and sent a dossier on IPEX to the Public Prosecutor’s Office, according to a report in Friday’s issue of the independent newssheet “Mediafax”. Candrino has been accused of abusing IPEX funds, particularly the money intended for the annual Maputo International Trade Fair.
Africa's co-op movement underexploited - CS (The Star)
Africa's co-operative movement should spearhead inter-regional and cross border trade in the continent, Industry, Investment and Trade CS Adan Mohamed said yesterday. He said with proper policies, co-operatives can foster seamless trade within the continent. The CS said said with a harmonised fiscal and monetary policy, legal framework and appropriate policies within EAC member states, East Africans will be free to join co-operative organisations from any of the nations. “If governments would facilitate registration of Saccos within their respective countries and for their citizens in the diaspora, it would structure how remittances are channelled back into the country, with a breakdown of how these remittances are used,” he said yesterday when he opened the first East Africa Co-operative conference.
What Barclays’ Africa exit means for Kenya (Daily Nation)
Anxiety has gripped the Kenyan financial markets as Barclays, the London based parent owner of Barclays Kenya, is set to announce the future of its African operations. The move is expected to affect its Kenya business. So what next for Barclays? Tongues are already wagging with some economic experts saying Chinese or Arab-based banks with huge financial might and who have been angling to enter the African market with no success would be the most likely suitors. [Barclays to sell out of Barclays Africa over two to three years (Business Day)]
Growing UAE-China trade 'complements DIFC growth strategy' (CPI Financial)
Ecobank picks Nairobi as eastern, central, southern regional hub (Business Daily)
Ecobank Kenya is set to be upgraded to be the regional hub of operations for 18 countries in a move that boosts Nairobi’s ambitions of being an international financial centre. The pan-African lender is restructuring its regional clustering that effectively combines eastern, southern and central Africa under one cluster headquartered in Nairobi. The other regional offices for the bank headquartered in Togo will be in Nigeria and Ghana.
Mobile money: state of the industry report (GSMA)
While Sub-Saharan Africa continues to account for the majority of live mobile money services, more than half of the new services launched in 2015 were outside this region, primarily in Latin America and the Caribbean. Looking ahead, new mobile money services are expected to grow by as much as 50% in Europe and Central Asia, as well as the Middle East and North Africa, demonstrating the significant traction that mobile money is gaining globally. Cross-border transactions were the fastest growing product in 2015. Mobile money services offering International Money Transfer saw the volume of cross-border remittances increase by 51.8%.
Carlos Lopes on Africa’s debt: They don’t believe in the future (UNECA)
Africa’s total foreign debt has been higher than 30% of GDP since 2010 and it was projected to have risen to 37.1% by the end of 2015. However, net foreign debt as a share of GDP is only 1%, having been negative since 2006 because of Africa’s international reserves. For example, net foreign debt as a share of GDP in Algeria has averaged -82.3 percent since 2010.
President Erdoğan: 'Burgeoning ties, common future' (Daily Sabah)
International trade data serves as a concrete measure of Turkey's growing partnership with the African continent. Over the past 13 years, bilateral trade grew tenfold: compared to $742m in 2000, Turkey's trade volume with sub-Saharan Africa soared to $8.4bn by 2014. Turkish companies, furthermore, invested over $6.2bn across Africa. Turkish Airlines, which flies to 48 destination in 31 African countries, is another source of pride for us. At this point, Istanbul has become a hub for African travelers bound for dozens of countries. I intend to visit Mogadishu again this year to inaugurate a valuable symbol of the importance Turkey attaches to the African continent. Turkey's largest embassy will enter into service in Somalia within the coming months.
How do “new generation” trade agreements such as the TPP differ from traditional free trade agreements? (World Bank)
While RTAs may significantly benefit members, they can hinder economic activity for non-members. The competitiveness gains developed in these new blocs could potentially divert trade away from more efficient non-member exporters towards less efficient ones – the “trade diversion” effect. In addition, RTAs can result in the erosion in the value of preferences given to Least Developed Countries under existing duty-free, quota-free, preferential schemes, such as the ‘Everything but Arms Initiative” of the European Union and “African Growth and Opportunities Act” of the US.
The economic effects of counterfeiting and piracy: a review and implications for developing countries (World Bank)
Policy makers around the world recognize the potentially harmful consequences of trademark counterfeiting and copyright piracy. The authors review the academic literature and other studies in the public domain to evaluate what has been learned about these socioeconomic effects, with an emphasis on developing countries where possible. They also identify important gaps in our understanding of the consequences of counterfeiting and piracy and develop recommendations on how governments might collect data and conduct studies to better inform IPR enforcement policy.
The revival of the "cash versus food" debate: new evidence for an old quandary? (World Bank)
The longstanding "cash versus food" debate has received renewed attention in both research and practice. This paper reviews key issues shaping the debate and presents new evidence from randomized and quasi-experimental evaluations that deliberately compare cash and in-kind food transfers in ten developing counties [Bangladesh, Cambodia, DRC, Ecuador, Ethiopia, Mexico, Niger, Sri Lanka, Uganda, Yemen].
Rwanda, Ethiopia sign open skies agreement (New Times)
Botswana/Zimbabwe: Joint Permanent Commission on Defence and Security communique
Zimbabwe: ICG releases 'Stranded in Stasis' briefing
Burundi: African Union High Level Delegation communiqué (AU)
Joseph Rwagatare: 'EAC leaders have duty to save Burundi' (New Times)
Richard Mshomba: 'Keep Somalia, South Sudan out of EAC' (The Citizen)
Kenya: Widening funding gap to hit road maintenance (Daily Nation)
Ghana's trade ministry calls on SA mining companies to invest in jewelry industry (Pulse)
Ethiopia: Small area estimation of child malnutrition across woredas (World Bank)
EU-Canada joint statement on the Comprehensive Economic and Trade Agreement
2030 Agenda’s promise of well-managed migration and mobility must become a reality – UN
Asia-Pacific Migration Report 2015: migrants' contributions to development (ESCAP)
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