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tralac’s Daily News Selection
The selection: Thursday, 24 March 2016
Featured tweets:
Dr Stergomena Tax (@DrTaxs): Southern Africa Region endorses Madam Pelonomi Venson-Moitou as the region's candidate for AU Chairperson's position. Please support.
Tom Pengelly (@pengelly_tom): With Denmark, Netherlands is a founding investor in #ATWA for West Africa.
Donia Hammami (@donia_hammami): Today in Dakar: W-Africa to strengthen role biz in governance structure National Trade Facilitation Committees!
Featured infographics: What Africa will look like in 100 years (The Telegraph)
Terrorism and Africa: high hopes and tough challenges in CEN-SAD conference (Ahram)
Tomorrow, defence ministers from the Community of Sahel-Saharan States (CEN-SAD) will conclude their meeting in Sharm El-Sheikh, held between 22-25 March. With delegations from more than 27 Arab and African states and numerous regional and international organisations, the conference took place under tight security. The group is working to reformulate and restructure its organisational bodies and mechanisms to strengthen the economic, military and security capacities of its member states and bolster cooperation in the face of the challenges and threats posed by transboundary changes in the region and their repercussions on the security, stability and development of these states. [G5 Sahel declaration on border management (SWAC/OECD)]
Addressing informal cross-border trade and security in IGAD region (CEWARN)
Representatives of Trade and Customs authorities from IGAD Member States shared their perspectives and concerns in relation to policy frameworks governing Informal cross-border trade as well as challenges in implementation. The meeting, 22-23 March, is part of a pilot policy initiative led by CEWARN and partners with the aim of supporting well-informed and participatory regional policy processes to promote cross-border security governance in the IGAD region.[CEWARN's new strategy]
DR Congo at 'critical juncture,' amid rising political tensions (UN)
The DRC is at a critical juncture, with rising political tensions ahead of elections which could lead to violence if left unaddressed, the top UN official in the country warned the UNSC today, while highlighting key issues for consideration as it renews the UN's mandate there. Presenting the Secretary-General’s latest report on MONUSCO, Maman Sambo Sidikou expressed support for the renewed partnership between the Mission and the country’s Government, aimed at addressing security threats more effectively.
Forecasting volatility in financial markets is the key for macroeconomic stability in COMESA region (COMESA)
The COMESA Monetary Institute is conducting a series of training programmes to help member States manage volatility in prices of their financial markets assets. The focus group for these programmes are the staff of the Central Banks of the member States. The latest training programme was conducted in Nairobi, 14-18 March, under the theme 'Practical application of modelling and forecasting volatility in financial markets within a multivariate framework'. It was attended by Central Banks’ staff from Burundi, DR Congo, Egypt, Ethiopia, Kenya, Malawi, Sudan, Uganda, Zambia, and Zimbabwe.
Joint AUC-AACB strategy on the establishment of the African Central Bank (UNECA)
This report recommends the following Strategic Plan and Roadmap with clear tasks, activities, deliverables, timelines, milestones and main actors leading to the establishment of the African Central Bank (ACB), spanning the period 2013-2034 as shown in Figure 5.1 (page 21). The strategy recommends a five-Stage approach leading to the establishment of the ACB namely:
On overlapping memberships: The issue of overlapping REC memberships will need to be resolved at an early stage. Countries need to decide which REC they will belong to as the vehicle for monetary integration in line with Abuja Treaty. The Strategy recommends African Union Commission should ensure rationalisation of the RECs.
Towards a Continental Free Trade Area: analysis of the status of the regional trade regimes (tralac)
The paper aims to identify the status of the regional economic communities and bilateral trade agreements. We then analyse the current applied tariffs and trade between RECs in order to highlight to what extent are goods i) being traded duty free; ii) attracting low/nuisance tariffs; and iii) high tariffs within the 8 RECs recognised by the African Union. We also explore the percentage of goods receiving preferential vs most favoured nation treatment amongst the 8 RECs.
However, the TFTA has not lived up to expectations and it has not delivered on its objective of establishing a single integrated Free Trade Area comprising the Members of three recognised regional African Union. What were originally intended to be building blocks for the creation of an integrated African market have now turned into stumbling blocks. However, regional integration remains part of the integration agenda, and therefore new approaches and ways of doing business are required. [The author: Taku Fundira]
Deal or no deal: strictly business for China in Kenya? (English)
Existing work on China's economic influence in Africa refers to Africa in broad terms, thereby generalizing the results to an extent that is unhelpful for policy-makers in a specific country. Moreover, the emphasis is on oil exporters. This paper remedies this by focusing on a single, oil-importing country: Kenya. The paper examines China’s economic presence in Kenya and some of the popular myths surrounding Chinese economic activity. [The authors: Apurva Sanghi, Dylan Conte Johnson]
Chinese firm to build Sh14bn Kisumu port as Kenya eyes more regional trade (Business Daily)
China Roads and Bridges Company will build a modern Sh14 billion port in Kisumu as Kenya targets a bigger maritime trade stake in the region. Transport secretary James Macharia said the port will be built under a government-to-government arrangement and as part of phase two of the standard gauge railway (SGR) which will link Nairobi to Malaba on the border with Uganda. The plans to construct a new sea port and extend a branch of the SGR line being built from Mombasa is expected to boost economic activities in Kisumu and other satellite towns.
State to fund locals as China builders swamp the market (Business Daily)
The government is proposing to fund local contractors to the tune of 20% for large projects as the industry faces threats of being overwhelmed by South African and Chinese firms setting up one-stop shops in Kenya. The National Construction Authority notes that Chinese companies have virtually taken over all multi-billion projects in Nairobi with just 22 local firms registered as category one providers.
Malawi: IMF completes review mission (IMF)
The prolonged adverse effects of the El Niño-induced drought, a strengthening dollar, and lower-than-expected export receipts have hit the economy hard. The drought has also placed an estimated 2.8 million people at risk of food insecurity which is being addressed by the authorities and the donor community. Real GDP growth which fell sharply to 3% in 2015 is expected to be within 3–4% range in 2016, depending on the improvement in weather conditions. Rising food prices and a sharp depreciation of the kwacha contributed to annual inflation increasing to about 25% at end-December 2015. Inflation has since fallen slightly to 23.4% in February 2016 and non-food inflation has been on a clear declining trend, suggesting that the appropriate adjustments in monetary and fiscal policies are having their intended effects. [Note: Malawi's Trade Policy Review will take place on 27, 29 April at the WTO]
Tanzania: IMF holds 2016 Article IV Consultation (IMF)
There was a broad convergence of views on the priority reform areas and on the key role of the government in facilitating private sector-led growth. Modernizing agriculture, which employs a large share of the population, would raise rural incomes and contribute to poverty reduction. It would also free labour resources for other sectors of the economy and could foster the development of certain industries, such as food processing. Improving the business environment is also a priority; this includes, among others, better energy and transportation infrastructure and improving access to land and finance.
Egypt's Suez Canal revenues decline for 2nd consecutive month (Ahram)
Egypt's Suez Canal revenues fell for the second consecutive month to record $401.4m in February, official data from the canal’s authority showed. The revenues slowed from $411.8m in January and $429m in December last year amid claims that vessels are changing route to the Cape of Good Hope at the southern tip of Africa instead of the Suez Canal due to the drop in world oil prices.
Battle for globalisations? BRICS and US mega-regional trade agreements in a changing world order (ORF)
This paper examines the two cases of BRICS, and the Transpacific Partnership and the Transatlantic Trade and Investment Partnership, and tests the hypothesis of a 'battle for globalisations', understood in two conflicting ways: as a) battle for global dominance, i.e., singular globalisation led by either the West or the 'Rest', and b) a battle for plural,'globalisations'. This paper endorses the idea of a more balanced and inclusive, and less 'western' governance, although within the global trade regime the thesis of singular globalisation can be maintained. [The authors: Marko Juutinen, Jyrki Käkönen] [Download]
Related: Samir Saran, Abhijnan Rej: 'Building new alliances with BRICS' (The Hindu), Regional trade agreements cannot replace multilateral trading system: WTO’s Yonov Frederick Agah, (Economic Times), India overtakes China in direct investment by US (Economic Times)
Trade and global value chains: how to address the gender dimension (UNCTAD)
Global value chains have become a dominant feature of world trade and investment, but what opportunities and risks do they provide to women? This question was addressed at a side event jointly organized by UNCTAD and Finland on 17 March during the 60th session at the UN Commission on the Status of Women.
From Shenzhen to Nairobi: what makes a global manufacturing hub? (Village Capital)
On further reflection, Shenzhen was not so different a few decades ago. Both Nairobi now and Shenzhen then have in common a plethora of small businesses, relative freedom from regulatory obstructions, and diverse young populations. Perhaps, with the right actions, Nairobi might in fact be a future hub for manufacturing. Three themes emerged from conversations with these entrepreneurs and the community that Village Capital gathered around them: [The author: Daniel Hsu]
Nigeria: Emefiele's currency pledge dashes hopes for Naira devaluation (Bloomberg)
Moody's assigns positive outlook for Kenya's economy (Daily Nation)
SADC faces tough battle at CITES 17 (Southern Times)
Ghana and Ivory Coast want a bigger cut of world chocolate billions: why their 'CHOCPEC' tie-up could be a game changer (M&G Africa)
Mauritius: Towards the introduction of a National Minimum Wage Mechanism (Government of Mauritius)
Drones play an increasing role in African mine management (AFK Insider)
A new lease of life for African rail: Destination 2040 (UIC)
Mozambique: Fishy Mozambique deal snares lenders (Financial Times/Business Day)
Djibouti: How a forgotten sandlot of a country became a hub of international power games (Bloomberg)
Crans Montana Forum on Africa and South-South Cooperation: EAC Secretary General calls for strong cooperation in public health
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