News
tralac’s Daily News Selection
The selection: Thursday, 3 March 2016
Featured tweet, @ekbensah: CFTA – The AU will be creating a dedicated website, including monitoring on #BIAT – Boosting Intra-African Trade
Featured trade policy review process: Inquiry into Africa Free Trade initiative (AFTi) – call for written evidence (SAANA)
17th Ordinary Summit of the East African Community Heads of State: communiqué
The Summit directed the council to review the East African Development Bank charter to streamline it into the EAC main structure. The Summit further directed the secretariat to develop guidelines for the creation, governance and reporting structures for all the institutions of the community. The Summit directed the council to finalize the work on the modalities required to establish a sustainable financing mechanism for the East African Community based on various options, including a hybrid of a levy and equal contribution with a commitment to increase the budget, that encompasses the principles of equity, solidarity and equality, and submit a report to the next Summit for consideration. The Summit took note of the progress and road map towards finalization of the comprehensive study on automotive industry in the EAC region; and directed the Council to expedite the process and report to the 18th Summit.
Related EAC summit updates: South Sudan becomes EAC member, but not Somalia (IPPMedia), New generation passport for East Africans unveiled (Daily Nation), Uhuru, Magufuli seek to re-set trade ties with joint road projects (The East African), Museveni: EAC will ensure region’s survival, prosperity and security (The Independent), Why East Africa wants to ban second-hand clothes (BBC), Boost for Kenyan workers as South Sudan wins EAC admission (Business Daily Africa), Uganda, Tanzania agree on Shs13 trillion southern oil pipeline deal (Daily Monitor)
Northern Corridor states move to fill capacity gaps (New Times)
Northern Corridor member states have announced steps toward human resource development and capacity building as part of efforts to end brain drain and cut costs on scholarships abroad. The plan involves devising joint scholarship programmes in infrastructural interconnectivity projects that will be conducted by 17 centres of excellence across the region. The plan was announced on Tuesday during a meeting of the human resource and capacity building cluster, whose purpose is to commission a draft framework that will facilitate offering of scholarships to fast-track provision of requisite skills at those centres.
@FrankMatsaert: Holili OSBP funded by @TradeMarkEastA – 1st impact survey shows already 24% reduction in border crossing time, more to come.
Nacala corridor signs $8m rolling stock deal; port tender delayed (Zitamar News)
SADC banking supervisors meet to bolster financial stability (Seychelles Nation)
Banking supervisors from countries of the Southern African Development Community have come together at the Eden Bleu Hotel in Seychelles for their 2016 steering and sub-committee meetings. The aim is to discuss ways to bolster financial stability with main issues of discussions being banking supervision and regulatory, anti money laundering and counter financing of terrorism. A proposed draft banking model law being worked on by SADC and its legal sub-committee, will also be deliberated on. The model law will help in bringing in those central banks together. A report will be submitted to the next central bank governors’ meeting in April for discussion.
Botswana’s mineral revenues, expenditure and savings policy (AfDB)
What can other countries learn from Botswana with regard to mineral revenue management and expenditure, especially now that the country is a mature mineral producer? In many respects the Botswana experience is a positive one with many examples of policy and practice that are relevant to other countries. Botswana has an effective and efficient mineral fiscal regime, and these revenues have been invested in social and economic development. Sufficient financial resources have been accumulated to provide effective stabilisation buffers. However, Botswana’s experience also has some distinctive characteristics that make it more difficult to replicate. These include the very high rents entailed in diamond mining, and the fact that the bulk of that mining is done by one company. The following are the main lessons that are of general relevance. [The author: Keith Jefferis] [Other reports from the African Natural Resources Centre]
The price is not always right: on the impacts of commodity prices on households (and countries) (World Bank)
We uncover similar patterns in the African data. The income commodity dependence in Africa is very high (higher than in Latin America) and varies across countries. The lower quintiles also tend to show higher commodity dependence. In Ghana, for instance, the share of income derived from commodities is 71.4 in the first quintile, and 27.1 in the top quintile. Table 2 shows that in the data, most of the dependence from commodities in Africa is related to dependence on agriculture. [The authors: Daniel Lederman, Guido Porto]
‘Beyond AGOA’ policy updates: @USEmbassySA: With AGOA issues resolved, we are focused on a broader, stronger economic partnership by expanding trade and investment between US and SA. [Chicken imports end AGOA impasse (Business Day), USTR Factsheet: Obama administration actions open South African market to US agriculture]
COMESA Business Council signs MOU with Corporate Council on Africa
The COMESA Business Council, which is an equal partner and the private sector partner of COMESA, the largest and most effective regional organization in Africa signed an MOU with the Corporate Council on Africa that launches a new partnership on trade facilitation initiatives. The partnership will be modelled on a project CCA launched in 2014 to develop joint private sector recommendations on trade facilitation in East Africa, which has been central to the White House Trade Africa Initiative. The CCA-CBC partnership provided guidance for the meeting of the COMESA TIFA in Lusaka on February 8, 2016 and is designed to help facilitate trade in the COMESA region, as well as to provide private sector support for the Trade Africa initiative. It will be implemented through the CCA Trade Africa Working Group.
Africa-Arab Partnership: pre-summit meeting update (AU)
It discussed the preparation for the 3rd Africa-Arab Ministerial Meeting on Agricultural Development and Food Security and considered the work so far done with respect to Cooperation on Migration; activities of the Africa-Arab Cultural Institute in Bamako, Mali; the outcome of the meetings of the Working Groups on Trade and Investment, and Infrastructure; the preparation for the 8th Africa-Arab Trade Fair and Disaster Response Fund.
India’s trade pacts in a changing world (LiveMint)
The Economic Survey 2015-16’s analysis of the impact of India’s free trade agreements on the economy is a valuable attempt to address a gap in the policymaking ecosystem. Its conclusion - a conditional one, for it acknowledges the need for more analysis - is unsurprising. Controlling for potential non-FTA trade growth, India’s FTAs have on the whole had significant impact, boosting trade without introducing inefficiency due to trade diversion. So far, so good. But this raises interesting questions about New Delhi’s long-standing preference for multilateral trade liberalization and the global shift to the contrary.
India's Duty Free Tariff Preference Scheme for LDCs: ITC launches business guide (ITC)
Namibia to address WTO in bid to save livestock sector (New Era)
At the meeting to be held from March 16 to 17 the delegation is set to present its case before the Sanitary and Phyto Sanitary (SPS) Committee of the WTO in a bid to mitigate the new stringent and soon-to-be-announced livestock import restrictions by South Africa. The delegation will include representatives from the Directorate of Veterinary Services, the Agricultural Trade Forum and agricultural unions, as well as the Ministry of Industrialisation, Trade and SME Development. “Namibia’s position is that the issue has to be solved bilaterally to the benefit of both countries by way of negotiations, and that should the import conditions be implemented, it has to be done on a differentiated basis over a period of time. It is hoped that South Africa will agree to such a process, seeing that the impact on the Namibian livestock exports and the meat industry could be catastrophic,” the Meat Board said yesterday.
Uganda: agricultural value chain study EOI (AfDB)
With an initial pilot programme in Uganda, the Bank’s Agricultural Value Chain Study aims to select, prioritise and conduct a detailed value chains study. The commodities selected for the study will be identified on the basis of stakeholder consultation. The study assesses the status, constraints and economic potential of the selected commodities. Based on the findings of the study, the investment opportunities for the Bank and bankable private sector projects will be identified and the policy and institutional measures that need to be implemented will be delineated. The study will also review farm-level productivity of selected commodities, input and output markets for commodity in question, land tenure, access to finance by agribusinesses, extension, etc.
Participation in regional and global value chains as a driver of structural change in Africa (World Bank)
The objective of this study will be to invigorate and deepen the discussion about structural change in Africa and the appropriate trade and industrial policies that will allow countries in Africa to drive employment growth in higher value-added activities. [Note: Extracted from 'Summary of Africa regional studies due in FY16'] [Further details: Nora Carina Dihel, Trade & Competitiveness, This email address is being protected from spambots. You need JavaScript enabled to view it.]
Mozambique: Running after the rankings – but perhaps we don’t want to change (SPEED)
Mozambique fell 5 places in the most recent last World Bank Doing Business ranking. As usual the report was followed by a flurry of activity by donor agencies and the Ministry of Industry & Commerce seeking to identify reforms which could be carried out to improve the ranking. A quick analysis of the pages of proposals (a 154 slide presentation from the World Bank alone!) presented shows that few of the ideas are new. In fact most of the recommendations have been under discussion for many years. So what conclusion can we draw from this? [The author: Carrie Davies]
South Africa: Port authority bemoans regulator’s tariff move (Business Day)
The Port Regulator of SA’s decision to grant a 0% tariff increase to the Transnet National Port Authority will reduce the authority’s revenue by more than R600m. TNPA had asked for 5.9% tariff increase, but on Wednesday the regulator announced it would not grant an increase, citing "cargo volume and market-related factors". Analysts have criticised SA’s ports charges for being among the most expensive in the world, an allegation denied by Transnet. The Port Regulator said the ports are expensive in some areas and cheaper in others.
Mombasa: Relief for traders as port cargo clearance amnesty extended (Business Daily)
Clover says will no longer invest in Nigeria (The Namibian)
South Africa's Clover Industries will no longer invest in Nigeria due to a financial crisis caused by a sharp fall in oil prices, the dairy products company said yesterday. “The current financial crisis experienced in Nigeria, which is fuelled by the low oil price, is a further cause for concern. Thus, the group has decided to withdraw from future investments in Nigeria,” Clover said in a statement. The company said it will continue to expand operations in Botswana, Namibia, Lesotho and Swaziland.
Rwanda: Cimerwa calls for control of cement imports as competition tightens (New Times)
Nigeria unveils data dissemination system on statistics (The Namibian)
Habitat III: strategising for sustainable urbanisation in Africa (Leadership)
Brian Levy: 'Keeping the lights on – workable and unworkable approaches to electricity sector reform' (World Bank Blogs)
Why “inefficiency” is needed in energy financing for Africa (World Bank Blogs)
Africa has the biggest reservoir of green growth (UNECA)
The Road to Nairobi 2016 project: connecting youth entrepreneurs (Building Bridges 2016)
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