News
tralac’s Daily News Selection
The selection: Friday, 4 March 2016
UNECA’s 2016 Conference of Ministers – 'Towards an integrated and coherent approach to implementation, monitoring and evaluation of Agenda 2063 and the SDGs' (31 March - 5 April, UNECA):
Profiled briefing note 'Global and continental frameworks – implications for Africa': In sum, notwithstanding its shortcomings, the Addis Ababa Action Agenda offers an important contribution to Africa’s development, particularly in the areas of technology, illicit financial flows, energy and remittances. The devil, however, is in the details. Commitments have been made before and several remain unfulfilled. Ensuring the fulfilment of the commitments in the Addis Ababa Action Agenda will require a robust follow-up mechanism underpinned by the development of regional and national targets and timelines to track progress, particularly on the broad statements of intent. [Concept note] [Documentation]
Three profiled launches: Measuring progress on Africa's regional integration agenda, The problem of measuring corruption in Africa, Bilateral investment treaties in Africa: balancing rights and obligations between host countries and investors
Related events in Addis: ECA-AU to host inaugural Africa Development Week (31 March - 5 April), Regional Coordination Mechanism for Africa (2-3 April)
African Union Gender Pre-Summit: communiqué (AU)
We recommend as follows: AUC, RECs and Member States to...Adopt an integrated approach to reinvigorate dialogue between stakeholders participation, in playing a leadership role in public office by 2020. on the opportunities, gaps and solutions for enhancing women’s economic empowerment and ensure that women are at the centre of sustainable development, peace, regional integration and economic growth initiatives in Africa; Address challenges which hinder progress in achieving women’s land and property rights in Africa, as well as identify and promote practical approaches to addressing these challenges with a view to securing commitment towards promoting proven models. [Various downloads]
tralac's Annual Conference 2016: 'Towards rules-based governance in African trade and integration?'
At this year’s tralac Annual Conference (7-8 April) we will discuss, inter alia, the following issues: why African trade and integration efforts benefit from rules-based governance; safeguards and trade remedies; standards; connecting Africa for competitiveness; private litigation, dispute resolution and community law developments.
Mapping global and regional value chains in SACU: sector-level overviews (World Bank)
This report compiles sectoral value chain case studies that were carried out as part of parallel work, including the SACU Regional Trade and Transport Facilitation Assessment and previous report on Mapping Regional Value Chains in SACU. As the two studies were carried out for different purposes and with a different approach, the structure and focus of the outcomes are not fully consistent across sectors presented in this report. However, in all sectors, the case studies provide an overview of the structure of the value chain and inter-linkages across firms in SACU, along with their positioning in wider GVCs. They also provide some discussion of the main constraints impact GVC participation and competitiveness, as well as the constraints to developing more integrated RVCs. [Table of contents: Manufacturing; Agribusiness; Minerals and tourism; Conclusions] [A reposting: SACU in global value chains: measuring GVC integration, position, and performance of Botswana, Lesotho, Namibia, South Africa, and Swaziland]
Is a ‘factory Southern Africa’ feasible? Harnessing flying geese to the South African gateway (World Bank)
Given East Asia’s spectacular success with integrating into GVCs, we first assess the probability that SACU can copy their flying geese pattern. That was initiated by Japanese multinational corporations investing in successive East Asian countries thereby becoming the lead geese, to be joined subsequently by MNCs from other countries. We argue that the conditions for pursuing a flying geese approach are difficult to replicate in SACU. Therefore, we proffer and explore the proposition that South Africa could serve as the gateway for harnessing MNC geese flying from third countries into the SACU region, in time propelling regional development through knowledge and investment spillovers, and serving as a conduit into GVCs. However, there may be substantial obstacles to deepening this integration potential. Other African gateways are emerging as alternatives to South Africa. And some SACU governments would prefer to build regional value chains (RVCs) rather than prioritize GVC integration. [The authors: Peter Draper, Christoph Andreas Freytag, Sören Scholvin, Luong Thanh]
A capability-based assessment of GVC competitiveness for the SACU region (World Bank)
With competition for GVC investment taking place in a truly global market, factor competitiveness relative to other countries matters a lot. In this context, the purpose of this note is to shed some light for policymakers, in this case specifically in the Southern African Customs Union (SACU) countries, on where to focus efforts to drive competitiveness for GVC participation. This is a data-intensive exercise that requires indicators to represent underlying capabilities, disaggregated international trade data, and finally, a classification of which products are likely to be trade within GVCs. [The authors: Vilas G. Pathikonda, Thomas Farole]
Zimbabwe: Economic growth notes - spatial integration in Zimbabwean product markets (World Bank)
The purpose of this policy note is to provide evidence on the level of integration between Zimbabwe’s domestic markets for grain and staple foods. Efficient and integrated agricultural markets are an important vehicle for growth and poverty reduction. The note determines whether Zimbabwe’s provincial markets are integrated and explores the determinants of market integration. It provides estimates of the speed of adjustment between markets pairs. The analysis investigates the extent to which distances and demand for the products determine market integration. The paper concludes with a discussion of other structural or policy related factors that affect integration and efficiency of domestic markets. [The authors: Shireen Mahdi; Matteo Bonato, Johannes Herderschee]
Cargo piles up at Beitbridge (The Herald)
The Shipping and Forwarding Agents Association of Zimbabwe chief executive officer, Mr Joseph Musariri called on the Government to waive the implementation of the CBCA on goods which were shipped before it became operational. “It is sad that cargo is piling up at Beitbridge border post where most importers are having challenges in acquiring the transitional CBCA certificates” he said. Industry and Commerce Minister Mike Bimha told The Herald Business that the ministry was yet to receive the border reports but like any new system the CBCA would also be prone to teething challenges. “We are working together with Zimra and the Standards Association of Zimbabwe on this new programme. Together, if the report on the challenges at the border comes, we will address them immediately as this is still a new system.”
Rwanda Economic Update: Rwanda at work (World Bank)
The EAC countries and the DRC account for more than half of Rwanda’s exports. In goods exports, DRC accounts for 32%, followed by the EAC countries (20%). The high share of exports to DRC reflects its high share in re-exports (mainly fuel products). European countries account for about 15%. Thus, future development of these countries will affect Rwanda’s exports. On the other hand, China accounts for less than 5% of Rwanda’s exports. The origins of Rwanda’s imports are different from Rwanda’s export destinations. While imports from the EAC countries are similar to the share of exports to these countries, China has the largest import share at around 20%. Thus, fluctuations of the Chinese yuan affect imports from China (see annex 1.2). [Download]
Revised RISDP: a new growth path for SADC’s industrial development? (tralac)
The review was not merely an exercise to adopt new target dates for implementation of the targets set out in the RISDP, but a more fundamental reflection and enquiry to ensure that regional and global realities were taken into account in the design of SADC implementation strategy. It is noteworthy that the adoption of the Revised RISDP coincided with the adoption of the SADC Industrialisation Strategy. This SADC Industrialisation Strategy 2015-2063 was adopted by the same Summit of Heads of State and Government. More importantly, one might want to understand what are the synergies, contradictions, new provisions in the RISDP, and which one is the leading document? [The author: Brian Mureverwi] [SADC Industrialisation Strategy and Roadmap 2015-2063]
Related event: Financing the SADC strategy and roadmap on industrialization (ICE meeting, 17-18 March, UNECA]
South Africa: Revitalisation and refurbishment of government established industrial parks - EOI (AfDB)
The Department of Trade and Industry has received a grant from the African Development Bank for the Enterprise Development Pilot Project with special reference to conducting a study on the revitalisation and refurbishment of government established Industrial Parks, in particular those in the former homelands and townships. The Revitalisation and refurbishment of the government established Industrial Parks is an initiative of government to promote industrialisation and manufacturing, as well as fulfil spatial economic development policies. The activities included in this project are:
Critical issues in the negotiations of the Continental Free Trade Area (tralac)
This paper raises the question as to whether the envisaged CFTA will result in a single trading arrangement for Africa or add another layer of overlapping trade regimes in the continent. In this regard, lessons from the Tripartite FTA negotiations are highlighted. Subsequent sections deal with some negotiation, design and implementation issues in the context of new global trade and production realities. [The author: Paul Kalenga]
JB Cronjé: 'Where to from here for the Tripartite FTA negotiations on movement of business persons?' (tralac)
ASEAN: advances and challenges in regional integration (IMF)
A decade ago, there was much discussion about when Asia might achieve full economic integration, including the establishment of a monetary union. This reflected rapid expansion of intra-regional trade in Asia, and the optimism in the success of European integration, as the 50th anniversary of the Treaty of Rome was approaching. Now, while there remains a broad consensus on the desirability of economic integration, the landscape has become more nuanced. [Conference www]
From global savings glut to financing infrastructure: the advent of investment platforms (IMF)
To enhance the cooperation between public and private partners, there is a new class of facilitators like the European Investment Bank or the Asia Infrastructure Investment Bank. But how can they avoid engaging private investment in inefficient infrastructure projects, bridges to nowhere, or avoid granting too generous concession terms, like high highway tolls? The paper makes a number of suggestions, including the creation of infrastructure securities and a global infrastructure investment platform. [The authors: Rabah Arezki, Patrick Bolton, Sanjay Peters, Frederic Samama, Joseph Stiglitz]
Zim relaxes visas for China, scraps for SADC countries (NewsDay)
South Sudan’s Yei traders petition government over foreigners’ control of trade (Sudan Tribune)
EAC: Push South Sudan to adapt to EAC rules (editorial comment, Daily Monitor)
Lessons learned on industrial and trade development of tropical timber and timber products in Africa (ITTO)
Nigeria, Turkey sign trade, economic partnership agreement (Footprint to Africa)
Ethiopia-Qatari joint technical committee holds second meeting
Sweden to approve new five-year aid strategy for Ethiopia (MFA)
What influences FDI into Africa? (KPMG Africa)
Southern Africa: drought report (AgBiz)
Global Food Price Index: February 2016 (FAO)
Lesotho: DIRCO briefing to SA parliament
Engineers Without Borders Canada researches local procurement in sub-Saharan Africa
Digital protectionism? Or label the US government uses to criticize policy it doesn’t like? (CFR)
India: 2016 Article IV Consultation report, Selected Issues report (IMF)
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