News
tralac’s Daily News Selection
The selection: Tuesday, 3 May 2016
Featured African trade policy processes, presently underway:
In Nairobi: Ease of Doing Business Initiative 2016 conference on the theme 'Digitizing Business – leveraging ICT to enhance the business environment'
In Nairobi: ‘@UNCTAD joins @ECA_OFFICIAL/AUC/RECs and experts for 5 days of drafting #CFTA draft texts'
In Kampala: National Trade Facilitation Committee workshop on the effective implementation of the TFA within the EAC
Sub-Saharan Africa: 'Time for a policy reset' (IMF)
After a prolonged period of strong economic growth, sub-Saharan Africa is set to experience a second difficult year as the region is hit by multiple shocks, the IMF said in its latest Regional Economic Outlook for Sub-Saharan Africa. The steep decline in commodity prices and tighter financing conditions have put many large economies under severe strain, and the new report calls for a stronger policy response to counter the effect of these shocks and secure the region’s growth potential. The report shows growth fell to 3½ percent in 2015, the lowest level in 15 years. Growth this year is expected to slow further to 3 percent, well below the 6% average over the last decade, and barely above population growth. [Asia Pacific Regional Economic Outlook] [World Bank raises 2016 oil price forecast, revises down agriculture price projections]
African Regional Standards Organization: report on activities for the implementation of WTO's TBT agreement (WTO)
Understandably, one of the main challenges facing the African countries is the variation in Regulatory framework, standards, certification, testing, and inspection practices used by different countries. This makes trade between the countries difficult, contentious, and expensive. This explains the low level of intra African Trade 12% and participation in the global trade (3%). For this, ARSO, an intergovernmental body, established in 1977 with the mandate to harmonise African Standards and conformity assessment procedures in order to reduce these Technical Barriers to Trade, promote intra-African and international Trade. Currently ARSO has 36 member States. Current programmes and activities are implemented under the current strategic plan 2012-2017 and may I bring to the attention of the Committee the following ARSO programmes which aims at facilitating the implementation of the WTO TBT Agreement.
Trade and the SDGs: making ‘means of implementation’ a reality (Commonwealth)
A major factor that inhibits more effective use of the global trading system by firms in LDCs is high trade costs. Extensive evidence suggests that trade costs are much higher than prevailing tariff rates of protection. Even if account is taken of non-tariff measures (NTMs), foreign market access barriers in export markets are rarely the binding constraint on trade expansion. The post-1980 experience makes clear that autonomous reforms drive economic development. However, non-tariff barriers and services trade restrictions do not figure prominently in the SDGs and the 2030 agenda. [The author: Bernard Hoekman]
Sixteen countries now in COMESA Free Trade Area
The number of member States participating in the COMESA Free Trade Area has risen to 16 following the passage of the required law by the DRC to join the regional economic community. Two other countries are expected enlist any time soon. Describing this development as positive, Director of Trade at the COMESA Secretariat, Dr Francis Mangeni said this will boost the levels of investment and intra-regional trade for the 19 member bloc. The 16 participating countries are Burundi, Comoros, Djibouti, Democratic Republic of Congo, Egypt, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Uganda, Zambia and Zimbabwe.
East African Parliamentary Institute: update
EAC Speakers are optimistic that the operationalization of the East African Parliamentary Institute (EAPI) shall go the mile in building capacities for legislators, Parliamentary staff and other stakeholders in Parliamentary practice and contribute to widening and deepening integration. The operationalization is expected in the next Financial Year once the EAPI Act, 2011, is gazetted by the EAC Council of Ministers. In addition, the EAC Bureau of Speakers considered a number of key areas deemed to strengthen integration as they held a one day Forum in Arusha, on April 29th, 2016. [New EA parliamentary body to help deepen integration]
IGAD Regional Infrastructure Master Plan: AfDB appraisal mission
The key objective for IRIMP is to establish regional infrastructure development that will enhance regional physical and economic integration through trade, free movement of goods and persons and poverty reduction amongst IGAD Member States. Regional Integration has been part of Africa’s strategy for economic transformation and the RECs including IGAD, are the building blocks that will enhance continental integration. IGAD Secretariat had submitted a request to the AfDB in June 2013 to support the preparation of the IRIMP. The Bank responded positively to this request for support. IRIMP is one of the deliverables set out under “IGAD Minimum Integration Plan/Roadmap” as part of the “Roadmap towards creating a Free Trade Area (FTA) in the IGAD Region” approved by IGAD Member States in Nairobi, Kenya in 2010 and the wider “Horn of Arica Initiative’.” After three fruitful days of discussions between IGAD and AfDB the aide memoire was signed on 27 April. According to the memoire the AfDB will fund the project at a cost of about $3.8m. The project will be structured into two components:
The 2016 Africa Logistics forum: COMESA joins initiative to improve security in Africa
The 2016 Africa Logistics forum which comprises African member States is exploring possible ways of avoiding conflict in the continent. This is by enhancing capacity among members States towards improving national, regional, and multinational logistical preparedness for peace support, humanitarian and disaster management response operations in Africa. This was disclosed during the forum hosted by the African Union in collaboration with partnership with the US Africa Command (AFRICOM) and the Washington D.C-based Africa Centre for Strategic Studies (ACSS) at the Koffi Annan International Peacekeeping and Training Centre, Accra, 12–14 April, 2016. The seminar noted that some RECS had made great strides in fostering regional integration efforts and in particularly the free movement of people, and exchange of goods and services that was accompanied by infrastructural development (roads/highways, ports, airports, and rail).
South Africa: March 2016 merchandise trade statistics (SARS)
The R2.92bn surplus for March 2016 is due to exports of R96.13bn and imports of R93.22bn, improving from a revised deficit of R1.27bn in February 2016. Exports increased from February 2016 to March 2016 by R5.66bn (6.3%) and imports increased from February 2016 to March 2016 by R1.48bn (1.6%). Africa trade surplus: R16 063 million – this is a 12.4% increase in comparison to the R14 295 million surplus recorded in February 2016. Europe trade deficit: R10 639 million – this is a 58.4% increase in comparison to the R6 716 million deficit recorded in February 2016. Asia trade deficit: R10 088 million – this is a 27.3% decrease in comparison to the R13 878 million deficit recorded in February 2016.
Is it worth it? (The Economist)
In reality, though, South African firms have proved more optimistic than most about the potential of the African market. Where they have failed, it has often been because they were too sanguine about infrastructure and working of the law. In particular, they put too much faith in the power of innovative product design. “You can come up with an amazing product here, but that doesn’t help you sell it in Nigeria if you haven’t got the contacts to get it out of the port,” says Safroadu Yeboah-Amankwah, the South Africa director of McKinsey, a management consultancy.
Mozambique: latest economic update (World Bank)
After several consecutive years of accelerating growth, Mozambique’s economic performance eased to its slowest pace since 2009, whilst the economy remains increasingly exposed to heightened levels of fiscal risk, according to the Mozambique Economic Update released today. Although Mozambique’s economic prospects remain sound, a robust policy response is vital to manage short term pressures and lay the ground for future growth. Mozambique has been substantially scaling-up public investment over the last few years. Financing has taken various forms. However, liabilities have accumulated at a rapid pace while the due diligence mechanisms to govern them more efficiently lagged. The report highlights the need to improve monitoring, disclosure and management of debt and fiscal risks. These efforts should be complemented by measures to improve the government’s capacity to appraise and manage public investments.
Uganda: Trade ministry takes over investment authority (Daily Monitor)
The activities of Uganda Investment Authority are now going to be overseen by the Ministry of Trade, Industry and Cooperatives, Daily Monitor has learnt. In an interview with this newspaper, Trade minister Amelia Kyambadde confirmed the development: “We think it belongs here in the Ministry of Trade. All the necessary expertise is here and it will now streamline trade and investment.”
Tanzania: How JPM fell out with TIC boss Kairuki (The Citizen)
Sacked Tanzania Investment Centre Executive Director Juliet Kairuki fell out with President John Magufuli over tax issues and an apparent arrangement through which she was reportedly earning a salary outside the established government structure, The Citizen can reveal. A brief government statement revealed yesterday that President Magufuli fired Ms Kairuki last Sunday for declining a salary offered to her since April 2013 when she was appointed. The Citizen has established, however, that a Tanzania Revenue Authority (TRA) tax bill slapped on Dangote Cement was at the centre of a heated dispute within government that may have cost Ms Kairuki the job for which she was head-hunted from South Africa by then President Jakaya Kikwete. [Vodacom’s contribution to Tanzania’s economy hits Sh4tr: study]
Eric Mboma: 'How China is building the future in sub-Saharan Africa – and why the US needs to rethink its approach' (SCMP)
While much is made of China’s expanding footprint in Asia, the reach of its global aspirations can be seen in Africa. The Democratic Republic of Congo reveals the complex dynamics of China’s interaction with the continent, and the inability of the US to balance it. The fundamental reason for this state of affairs is that American and Chinese foreign-policy priorities in sub-Saharan Africa, of which Congo is a part, diverge considerably. [The author is CEO Standard Bank Group in the DRC]
Creating optimal partnerships to tackle socio-economic problems: lessons from North Star Alliance (Knowledge@Wharton)
When it comes to tackling large-scale socio-economic problems, especially in emerging markets, several entities usually form partnerships to solve these challenges. But what is the optimal configuration of these partnerships and how should they best be coordinated for maximum effect? That is the topic of an ongoing research study led by Aline Gatignon. Gatignon and her colleagues are gathering their data from North Star Alliance, a non-profit that manages health clinics for truck drivers along African transport corridors. [Infrastructures: ces corridors africains qui valent de l'or (JeuneAfrique)]
Sustainable fisheries: international trade, trade policy and regulatory issues (UNCTAD)
In a ‘business-as-usual’ scenario, only half the amount of fish harvested in 1970 will be probably available by 2015 and only one-third by 2050. In contrast, fish consumption can be expected to expand substantially, as the global population is predicted to increase from over 7 billion presently to about 9-10 billion by 2050. These trends raise serious questions about the sustainability of the sector globally and related sector practices.
Angola-China Chamber of Commerce wants to encourage partnerships (Macau Daily Times)
Kenyan firms push for laws forcing EAC States to implement treaties (Business Daily)
Nigeria’s foreign reserves dip significantly, reverses previous gains (Vanguard)
Examining the Naira-Yuan deal (Leadership)
Foreign exchange policies of major trading partners of the United States (US Treasury)
Ethiopia: urgent action needed to help farmers produce food in main cropping season (FAO)
EU may appoint negotiator for bilateral trade pact with India (Livemint)
Seizing the moment in Asian economic diplomacy (editorial comment, East Asia Forum)
tralac’s Daily News archive
Catch up on tralac’s daily news selections by following this link ».
SUBSCRIBE
To receive the link to tralac’s Daily News Selection via email, click here to subscribe.
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.
