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Building capacity to help Africa trade better

tralac’s Daily News Selection

News

tralac’s Daily News Selection

tralac’s Daily News Selection
Photo credit: Mercator Media

Under way, in Botswana: ICN competition authority conference

New: The African Governance and Space (AFRIGOS) project  a five-year project examining transport corridors, border towns and port cities in four regions of Africa

Diarise: 2016 SIID Annual Lecture by Morten Jerven, 7 April: 'Africa by numbers knowledge and governance', 2016 LSE Africa Summit, 22-23 April: update

Committee on Sanitary and Phytosanitary Measures: update on the Standards and Trade Development Facility (WTO)

Note by the Secretariat prepared for the formal meeting of the Committee on Sanitary and Phytosanitary Measures, 16-17 March: A new report [by Jennifer M. Rathebe], entitled 'The implementation of SPS measures to facilitate safe trade: selected practices and experiences in Malawi, South Africa and Zambia', is available on the STDF website. The report examines how SPS measures are implemented in practice for selected products in Malawi, South Africa and Zambia, and identifies opportunities and good practice to reduce SPS-related transaction costs, while reinforcing health protection. The report includes a number of country-specific recommendations, as well as more general recommendations that can be of interest to other countries interested in facilitating safe trade. [Report: Activities of the Europe-Africa-Caribbean-Pacific Liaison Committee]

Global Trade Watch: trade development in 2015 (World Bank)

After dramatically declining in the first half of 2015, global trade recovered but at a slower pace over the rest of the year, so that world imports grew by only 1.7% in 2015 compared to 3% in 2014. According to a new World Bank Group paper, Global Trade Watch: Trade Development in 2015, by World Bank Group Economists Cristina Constantinescu, Aaditya Mattoo and Michele Ruta, global trade in 2015 reflected persistently weak demand and structural changes in world trade, compounded by falling commodity prices and China’s transition to a new growth path.

Africa and the Middle East: Having experienced a deep plunge in export values since mid-2014, Africa and the Middle East contributed significantly to the recent decline in world trade values. This was mostly a nominal phenomenon (Figure 17). The downturn in oil and commodity exports also reflects sluggish volume growth in recent years, which can be explained by factors such as depressed global demand (Figure 18). China and other Emerging Asian countries together account for more than half of the decline in export values of Africa and the Middle East. The recent pickup in exported volumes may reflect the gains in competitiveness from lower prices, although this was not sufficient to avoid the revenue losses.

The changing global trade landscape: implications for African Commonwealth countries (Bridges)

An analysis of 43 Commonwealth countries shows that between 2000 and 2012 the Commonwealth’s share of global trade in value added has remained steady around 16%, with the average share of domestic value added in Commonwealth members’ total exports estimated to be 68% in 2012, close to, yet below the global average of 70%. While GVCs present export opportunities through specialisation in only a relatively limited number of tasks, most Commonwealth African countries being predominantly commodity exporters, are at a disadvantageous position in terms of linking into these chains. [The author: Salamat Ali]

CFTA negotiations: two updates

Concept note for the ECOWAS/UNCTAD/GIZ stakeholder consultation (UNCTAD)

The meeting will facilitate consultations and dialogue among selected ECOWAS Member States and the ECOWAS Commission on the CFTA for a start, with a view to developing regional strategy for engagement with other partners in the CFTA negotiations. It is further intended to provide an occasion to review the opportunities and challenges that confront ECOWAS Member States in the implementation of the Community’s Goods and Services Protocols and Supplementary Protocols. Progress made towards regional integration within the ECOWAS region, in particular, in the areas of goods and services trade, the challenges, and the role partners can play in building capacity for the CFTA negotiations will also be highlighted. More specifically, the meeting has the following objectives:

Viola Sawere: 'Pro-competitive services sector regulation - a possible direction for the AU CFTA Agreement?' (tralac)

A practical question is what should be the starting point and ambition for the CFTA services chapter. Clearly, Article 6 of the Abuja Treaty embeds the acquis principle i.e. CFTA agreement will build on the achievements so far in the eight African Regional Economic Communities. However, learning from the WTO General Agreement on Trade in Services, the Trade in Services Agreement currently under negotiation, and other non-African FTAs, the value of the agreement will depend on its response to business challenges and sector development.

COMESA judges trained on regional integration issues (COMESA)

Sponsored by the Trade Law Centre a non-profit making capacity-building organization, the judges who took over about eight months ago went through intensive two-day training in international trade law and policy and dispute resolution within regional economic communities. The training took place at the University of Cape Town, South Africa 7-8 March 2016. As Judge President of the Court Justice Lombe P. Chibesakunda observed during the opening of the training, COMESA Court judges are appointed from different legal/judicial backgrounds to find themselves thrust into the realm of regional and international trade law and policy.

State of the EAC Address: delivered by Tanzania's Prime Minister, Kassim Majaliwa (EALA)

During the past few years, the EAC region experienced major threats, to its development, peace and security concerns. The food and fuel crisis; the rise of piracy in the Indian Ocean waters off the East African coast; and the terrorist threat posed by the Al Shabaab militia operating from bases in Somalia, served as a wakeup call on the need to expedite and deepen East African integration on all the fronts, including the economic, social and political fronts. At the pragmatic level, there are several challenges impacting negatively on the integration agenda. Some of these include; resource availability to implement regional development programs that are critical for attracting investments in the region by reducing the costs of doing business (eg. Railway and road networks linking EAC Partner States and reliable energy); Domestication of National Laws to conform to the EAC Common Market Protocol to enable the citizens enjoy the rights and freedoms enshrined in the Protocol and its subsequent implementation.

Zimbabwe: IMF staff completes 2016 Article IV Consultation Mission (IMF)

At the conclusion of the mission, Mr Fanizza issued the following statement: Economic difficulties have deepened. Zimbabwe cannot wait and needs to act now. The El Niño-induced drought has hit the economy hard. Lower commodity prices and the appreciation of the U.S. dollar have compounded difficulties. Policy action is needed to reverse this trend. Once the SMP is completed successfully - as an initial step toward reform and re-engagement with international partners - a comprehensive and ambitious economic transformation program is needed to revive the Zimbabwean economy and to cement support among international partners. [Zimbabwe Poverty Atlas 2015 (pdf, ZimStat)]

Investment in Mozambique falls 74.5% in 2015 (Club of Mozambique)

The value of investment projects authorised in Mozambique fell by 74.5% in 2015 over the previous year to US$1.7bn, according to figures from the Centre for Investment Promotion. The CPI data, cited by Portuguese news agency Lusa, showed that foreign direct investment fell by 60%, Mozambican investment decreased 83.2% and loans and supplies fell 94.1%. Spain leads the list of projects approved, with a total of US$320m, ahead of China and the United Arab Emirates, in a list in which Portugal ranks fourth and South Africa fifth.

Namibia: New tax collecting agency (Informante)

Government intends to improve the tax collection system through the establishment of a semi-autonomous revenue agency. This agency has been long coming as most, if not all, the countries within SADC already have a similar agency up and running. The agency will help with revenue collection efforts which need to be increased from policy and administrative levels and they will help as government’s measures to control expenditure. Currently, taxes are collected through the Inland Revenue and Custom and Excise Department’s at the Ministry of Finance.

NCCI defends local informal traders (The Namibian)

The chief executive officer of the Namibia Chamber of Commerce and Industry, Tara Shaanika, says it cannot be fair to have Chinese informal traders in Namibia. Shaanika was responding to a question on whether it is fair for Chinese small businesses to move to informal areas to do business as is currently the case. “I am certain that most of the Chinese informal traders did not get permission from the Ministry of Industrialisation, Trade and SME Development to set up retail shops as required by our regulations,” Shaanika said yesterday.

Ghana: Committee presents 'Made in Ghana' draft policy document to cabinet (News Ghana)

The policy document, according to Dr Ekow Spio Garbrah, Minister of Trade and Industry, will help to ensure that government agencies, Metropolitan, Municipal and District Assemblies prioritize Made in Ghana products and services in their procurement processes. The document covers about 20 different product items.

Crop Prospects and Food Situation: update (FAO)

Thirty-four countries, including 27 in Africa, are currently in need of external assistance for food due to drought, flooding and civil conflicts, according to a new United Nations report released today. The figure has grown from 33 last December, after the addition of Swaziland, says the FAO in its Crop Prospects and Food Situation report. At the regional level, FAO and WFP are supporting SADC to develop a coordinated response to minimize the impact and strengthen the resilience of the affected population. [Africa regional review]

Uganda: As good as the company they keep? Improving farmers’ social networks (World Bank)

Extension services have a history of being relatively expensive and not always effective. At the same time, studies show that informal social networks can be very beneficial in helping increase productivity. In Uganda, the authors tested the value of informal social networks for women farmers by connecting the least-productive 30 percent to some of the most productive women farmers in their own villages. Results show significant gains in productivity indicating that the path to better outcomes is contained within their own community.

Making the most of extractive industries data (World Bank)

To help overcome some of these challenges and improve the quality, accessibility and use of EITI data, the World Bank recently launched a report at the EITI Global Conference in Lima, ‘Options for EITI Data Reporting and Access: the good, the better and the best’. Recognizing that countries have varying capacities to report data, the report provides recommendations on the good, better and best practices in reporting various types of EITI data in a standardized format and how best to make it accessible. It answers questions such as:

Related: What you didn't hear about EITI last week: six new elements of the 2016 Standard and their potential for impact (NRGI), Zimbabwe: Publish What You Pay position paper on mining reforms

President Jacob Zuma: address to the South Africa-Nigeria Business Council (GCIS)


 

SADC Investment Promotion Agencies Forum: update (IPPMedia)

SADC: Harmonisation of National Qualification Framework meeting (Malawi News Agency)

Gift Mugano: 'Can SEZs attract FDI' (The Herald)

Kenya expects 20% jump in guest numbers (Daily Nation)

Nigeria: House insists N1.04tn MTN fine must be paid in full (ThisDay)

Nigeria: Manufacturers seek 18 months access to forex for backward integration (Vanguard)

Egypt's Central Bank lifts US-dollar caps for corporations (Ahram)

Nigeria’s GDP slows to 2.11% in 4th quarter as oil sector contracts (ThisDay)

India said to mull taking EU to WTO over threat to drug exports (Livemint)

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