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tralac’s Daily News Selection
The selection: Thursday, 14 April 2016
Starting today:
In Mauritius: the inaugural African Economic Platform
Announced by the Chairperson of the AU Commission, Dr Nkosazana Dlamini Zuma, during the just-concluded 26th AU Summit of Heads of State and Government, the AEP will contribute to fast track African economic transformation toward the realisation of Africa’s Agenda 2063. The participants expected to attend this first African Economic Platform will come from the public sector, led by Heads of State and Government; the African private sector, led by captains of commerce and industry, and the African higher education sector. This is a strategic approach by the African Union to bring together these three sectors to engage in discussions on cooperation and collaboration deemed to be critical for the continent’s growth and tangible economic transformation. [Concept paper]
In Lusaka: the Commonwealth's Africa trade prospects consultation
Next week:
On Tuesday, in London: hearings for the UK’s Africa Free Trade Initiative inquiry
This inquiry seeks to answer the following three main questions: i) What has been achieved in AFTi since 2011 and what lessons can be learned? ii) Is there a case for a successor to AFTi in the area of further facilitating trade and investment within Africa as a driver of growth and poverty reduction, and between African and the rest of the world, including the UK? iii) What should a future AFTi look like, what targets should it seek to achieve, and through which means and partnerships should it be delivered?
On Tuesday, in Midrand: a briefing on SADC certificates of origin and the new VAT rules
Roberto Azevêdo: 'Embracing change: forging global trade partnerships' (WTO)
Empirical evidence suggests that the deeper the RTA, the greater the potential for the development of production chains which span national borders. WTO members in the Asia-Pacific region in particular have greatly benefited from these global value chains. As production networks expand and regional and global value chains become more important, it becomes critical to more rapidly harmonize differences in legislation, rules and infrastructure, which impact international trade and investment. This appears to be what we see occurring more and more in modern RTAs and other regional networks.
Southern African Business Forum: launch of regional working groups (The Herald)
Following the launch [yesterday in Johannesburg] Gainmore Zanamwe, Regional Trade Adviser at the SADC Secretariat, said: “Both the Revised RISDP and the SADC Industrialisation Strategy call for the development of a Regional Private Sector Partnership and Collaboration Strategy and the establishment of a platform for the Public-Private Dialogue to improve the involvement of private sector in regional integration. To this end, the SADC Secretariat and Member States will be working with the regional public and private sector as they collaborate under the SABF’s six Regional Working Groups, which include Industrialisation and Regional Value Chains, Transport Corridors, Trade Facilitation, Movement of Services and Skills, Water and Energy.”
After their official launch, the SABF Working Groups begin their work in earnest, including establishing a work programme for the next year. Decisions and plans will vary from group to group, focusing on a range of activities from policy interventions and public-private co-operation geared at policy reform. Other groups may focus on the development of elements of regional infrastructure projects. The next major milestone is the 2nd Annual SABF Conference on the margins of the SADC Heads of State Summit in Swaziland, where progress reports from the six Working Groups will be presented. [SADC moves on industrialisation of region]
Botswana: Businesses ill-informed about EU trade prospects – envoy (Mmegi)
Many Botswana businesses are unaware of how to export to the European Union, a trade official said at a recent journalists’ seminar on EU cooperation. John Taylor, who is the trade officer for the EU delegation in Botswana, also said local businesses do not know how to take advantage of the EU trade benefits. “When I came here to talk about trade and interact with the trading community and administration, I was shocked. What we heard was about the wonderful opportunities with China and the US,” he said.
Kenya: Maize exports to Tanzania rise on high prices (Business Daily Africa)
Latest market data indicates that 145 tonnes of maize have been shipped to Tanzania through Isebania border in the last 30 days alone as farmers seek better prices in the regional market. Data prepared by the Regional Agricultural Trade Intelligence Network (Ratin) shows that a 90-kg bag of maize currently retails at Sh4,898 in Dar es Salaam, the highest unit price in East Africa.
International regulatory cooperation and domestic regulatory coherence: this week's tralac Newsletter
Public interest considerations behind SAB merger delay (IOL)
Public interest considerations of the planned merger between the world’s largest brewer Anheuser-Busch (AB) InBev and fellow brewing company SABMiller appear to be behind the delay in the Competition Commission’s assessment of the transaction, according to competition law analysts. AB InBev has agreed to an extension to May 5, after the commission missed Tuesday’s deadline. It had also missed its previous deadline of April 5. [Patel ‘hijacking’ cartel watchdog’s powers]
Mihe Gaomab II: ‘NACC guarding against future medical costs in Namibia' (Namibian Competition Commission)
The Commission opposed this application. NAMAF’s application was argued in the High Court on 26 November 2015. On the 18th March 2016, through a landmark judgement which solidified the precedence of the competition law on jurisdiction of all undertakings in Namibia, the High Court squashed NAMAF and the medical aid fund’s application and profoundly agreed with the Commission’s arguments by ruling that NAMAF and medical aid funds are subject to the jurisdiction of the Competition Act. This means that the Commission has regard to the ways and means of how NAMAF has conducted its modus operandi especially on how they set the medical tariffs. Following this judgment, the Commission intends to now file its application interdicting NAMAF and the Funds from engaging in the unlawful conduct and to seek further appropriate redress mechanisms.
COMESA: EOI for consultancy services for baseline study to assess industrial research and development, technology and innovation capacities (AfDB)
Specifically, the study aims at assessing the capacities, state infrastructure for industrial R&D and technology, and associated systems of innovation with a view to generate recommendations on appropriate areas of tripartite intervention to improve capacities, and strengthen Industrial R&D infrastructure and associated systems of innovation in the tripartite countries.
The Second IORA Economic and Business Conference concluded yesterday in Dubai: an Indian perspective
Migration and Development Brief 26: recent developments and outlook (World Bank)
Remittances to developing countries grew only marginally in 2015, as weak oil prices and other factors strained the earnings of international migrants and their ability to send money home to their families, says the World Bank’s latest edition of the Migration and Development Brief, released today. Officially recorded remittances to developing countries amounted to $431.6bn in 2015, an increase of 0.4% over $430bn in 2014. The growth pace in 2015 was the slowest since the global financial crisis. Global remittances, which include those to high-income countries, contracted by 1.7% to $581.6bn in 2015, from $592bn in 2014.
The estimated 1% rise in remittances to Sub-Saharan Africa in 2015 represents some recovery from the 0.2% rise in 2014. Remittances to Nigeria, accounting for around two-thirds of total remittance inflows to the region, are estimated to have declined by 0.8% to $20.7%, and remittances to South Africa are estimated to have fallen by 5.2% to $0.9bn. Regional growth in remittances in 2015 was largely driven by strong remittance growth in Kenya (8.3% to $1.6bn) and Uganda (21.1% to $1.1bn). Remittance flows to the region are projected to rise by 3.4 and 3.7% in 2016 and 2017, respectively.
Independent power projects in sub-Saharan Africa: lessons from five key countries (World Bank)
The five case study countries, namely Kenya, Nigeria, South Africa, Tanzania, and Uganda were selected because they present the largest and most diversified experience with independent power projects over the longest time period. The primary objective of this study is to evaluate the experience of IPPs in Sub-Saharan Africa and explore how they may be improved. Lessons from past experiences and a review of best practices from the region and from around the world can greatly help countries attract more and better IPPs. [The authors: Anton Eberhard, Katharine Gratwick, Elvira Morella, Pedro Antmann]
Natural resource revenues and public investment in resource-rich economies in sub-Saharan Africa (UNU-WIDER)
Using panel data for the period 1990–2013, we find in line with the scaling-up hypothesis that resource rents significantly increase public investment in SSA and that this tends to depend on the quality of political institutions. We also find evidence of a positive effect of public investment on economic growth, which also depends on the level of resource rents. Using some of the components of public investment, such as health and education expenditure, we find a negative effect of resource rents, suggesting among other things that public spending of resource rents is directed more to other infrastructure investments.
World Bank, AIIB sign first co-financing framework agreement (World Bank)
The agreement outlines the co-financing parameters of World Bank-AIIB investment projects, and paves the way for the two institutions to jointly develop projects this year. In 2016, the AIIB expects to approve about $1.2 billion in financing, with World Bank joint projects anticipated to account for a sizable share. The World Bank and the AIIB are currently discussing nearly one dozen co-financed projects in sectors that include transport, water and energy in Central Asia, South Asia and East Asia. Under the agreement, the World Bank will prepare and supervise the co-financed projects in accordance with its policies and procedures in areas like procurement, environment and social safeguards.
Quantifying the effects of trade liberalisation in Brazil: a CGE model simulation (OECD)
Brazil remains a fairly closed economy, with small trade flows relative to its share of world income. This paper explores the effects of three possible policy reforms to strengthen Brazil’s integration into global trade: a reduction in import tariffs, less local content requirements and a full zero-rating of exports in indirect taxes. A simulation analysis using the OECD Multi-Region Trade CGE model suggests that current policies are holding back exports, production and investment in Brazil. The model simulations suggest significant scope for trade policy reforms to strengthen industrial development and export competitiveness. Results also show that the expansion of investment and production would be accompanied by significant employment gains.
AfDB President strengthens alliances in South Africa
Mozambique plans to raise US$1bn a year for roads and bridges (Club of Mozambique)
André Thomashausen: 'How Mozambique subsidizes South Africa' (Club of Mozambique)
Regional experts meet towards actualisation of Dakar-Abidjan Corridor Highway (ECOWAS)
Senegal truckers tired of taking the long way around The Gambia (BBC)
On ECOWAS road transit (editorial comment, The Daily Observer)
Strong US$ affects Zim exports (The Herald)
China moves on $4 bln Ethiopian export project (Natural Gas Daily)
UNCTAD's latest Transport Newsletter
WTO: India opposes US, EU bid to hold small-group talks (The Hindu)
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This post has been sourced on behalf of tralac and disseminated to enhance trade policy knowledge and debate. It is distributed to over 350 recipients across Africa and internationally, serving in the AU, RECS, national government trade departments and research and development agencies. Your feedback is most welcome. Any suggestions that our recipients might have of items for inclusion are most welcome.
