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tralac’s Daily News Selection
The selection: Monday, 6 June 2016
A ‘Beyond AGOA’ reminder: by end June, the USTR must submit a report to the US Congress 'that will lay out a set of options and roadmaps for advancing the US-Africa trade and investment agenda'. The report could also include a list of SSA countries that have expressed interest in negotiating a free-trade agreement with the US. [A Manchester Trade backgrounder]
Featured policy research workshop report: ‘Service liberalization within Africa: trying to quantify the potential economic impact’ (tralac)
During the week of 16-20 May, the African Trade Policy Centre and partners held a week-long workshop on trade-related matters. tralac was represented by Associates Hans Grinsted Jensen and Ron Sandrey to further develop their special interest in services trade data and computer modelling of services trade liberalisation in Africa. The meeting was attended by several of the top international experts on this issue, and grew out of a proposal for tralac to have a bilateral meeting with the ATPC. The meeting was opened with a brief introductory welcome from David Luke, ATPC Coordinator of the Economic Commission for Africa, after which several presentations were made:
WTO welcomes India’s TFA proposal - Sitharaman (The Hindu)
WTO DG Roberto Azevedo has welcomed India’s proposal for a Trade Facilitation Agreement in Services, Commerce Minister Nirmala Sitharaman said. The proposed TFA in Services envisages, among other things, easier temporary movement of skilled workers, to boost global services trade. Ms. Sitharaman reiterated the proposal for a TFA in Services during the informal meeting of trade ministers from 25 WTO member countries on the sidelines of the Organisation for Economic Co-operation and Development (OECD) ministerial council meeting in Paris.
Trading power: regional economic integration in Africa (Belfer Centre)
Book prospectus (pdf): This book is both historical and prospective. It outlines the path followed in reaching agreement and identifies the various obstacles faced. For this reason it will serve as a handbook for those pursuing the implementation of the Agreement or seeking to promote similar integration in other parts of Africa. By stressing the lessons learned, this book will serve as a textbook for those involved in creating a new image of Africa that is guided by a common vision, pursued through experimentation and learning, and achieved through determined collective action. [The authors: Dr Francis Mangeni, Prof Calestous Juma]
A reminder that Wednesday, 8 June, is Budget Day across East Africa. Some previews: Tanzania, Kenya, Rwanda, Uganda
Uganda Economic Update: ‘From smart budgets to smart returns: unleashing the power of public investment management’ (World Bank)
This update focuses on this area to provide a menu of options to policy makers and other stakeholders on how public investments can be better managed and leveraged to drive growth. This analysis is informed by an assessment of Uganda’s systems and processes of public investment management that was undertaken by the Ministry of Finance, Planning and Economic Development, and the World Bank Group last year. Indeed, a key risk to Uganda's fiscal strategy relates to the potential for public investments to fail to yield the expected growth and welfare dividend. Over the past decade, for every dollar invested in Uganda’s capital infrastructure, only seven-tenth of a dollar has been generated. This is far below countries that have successfully undergone structural transformation.
Mombasa to Kigali: the gruelling life of long distance truck driver (Daily Nation)
I travelled with driver Rubimbura from Mombasa to Kigali in a journey that lasted five days (about 1,750 kilometres). In Uganda, I spoke to two other drivers – Mugisha and Abdul Gakwaya, both Rwandan nationals. During the journey, I noticed that Kenya’s traffic police officers are the most notorious in demanding bribes. In Uganda, drivers are rarely stopped unless they exceed the speed limit or in case of an accident. The drivers said they set aside between Sh1,500 and Sh2,000 — in denominations of Sh50 — to give as bribes in order to be allowed to pass through 15 to 20 roadblocks in Kenya. Data from the Northern Corridor Transit and Transport Coordination Authority shows that at least 12,143 heavy commercial vehicles are weighed daily at five weighbridges within Kenya.
ECOWAS Summit: final communique
The Authority commends the signing by Member States of the Economic Partnership Agreement and urges the two Member States yet to do so, to urgently sign the Agreement and hold consultations with the economic stakeholders of these countries, while awaiting ratification by the respective Parliaments. The Summit reaffirms the need to implement the Common External Tariff in all Member States and urges the six States yet to commence application, to take urgent steps in that regard.
The Heads of State and Government reaffirm their commitment to the rationalization of the costs of running Community Institutions, completion of institutional reforms and the actualization of the ECOWAS Vision 2020. While welcoming the precautionary measures taken by the President of the Commission to streamline and control costs, the Summit instructs the Commission to quickly provide lasting solutions to the Community Levy implementation and redirect the Community’s resources towards priority, integrating programmes within the region. In order to expedite the implementation of Community programmes, the Summit decides to convene a high-level Conference on innovative financing and a Donors’ Roundtable for the funding of the Community Development Programme, in Abidjan, Cote d’Ivoire, before the end of 2016. [Related: Model ECOWAS Summit (GNA), WACSOF Forum resolution]
Delay in endorsing EPA affects investment in West Africa - Mahama (Daily Trust)
President Mahama disclosed that Ghana and Cote d’Ivoire had contracted separately, interim EPA with the EU in order to mitigate the hardship caused by the inconclusive joint sub-regional agreement. “We had hoped that we should be able to negotiate an ECOWAS-wide EPA, but unfortunately due to the non-signature of the EPA by Nigeria and Gambia, it is obvious that Cote d’Ivoire and Ghana have to enter into some transitional arrangements in other that our economies will not suffer,” he said. Mahama pledged his commitment to the discourse in other to bring about a regional trading framework with the EU saying, “But even in those circumstances we will continue to work hard so that the whole sub-region can have a partnership agreement so that we can advance our integration.”
Nigeria explains why it has not signed EU-ECOWAS trade agreement (Premium Times)
Nigeria will continue consultations within the country regarding its stance on the Economic Partnership Agreement, EPA, between ECOWAS and the European Union, Vice President Yemi Osinbajo said at the just concluded Dakar meeting of West African leaders. According to him “there are ongoing negotiations on it. We are discussing with the Manufacturing Association of Nigeria and some other key economic players about it.” In addition, the VP noted that “we understand some of the terms of this agreement are capable of restricting their manufacturers trading activities and we would not want this to happen.”
Nigeria, ECOWAS member states unite on food safety (Nigeria Today)
Nigeria, alongside member states of ECOWAS have formed a common ground against indiscriminate dumping of harmful food products mostly from the European Union and China. The position of the regional member countries was made known at a workshop in Abuja, ahead of the 39th session of the Codex Alimentarius Commission conference billed for June 27 to July 1, 2016 in Rome, Italy, where they are expected to participate and make consultations on critical issues affecting the sub-region. [Cost and benefits from regional cooperation on grain reserves: the case of ECOWAS (AgEcon)]
From oil to cities: Nigeria’s next transformation (World Bank)
The Nigeria Urbanization Review serves the critical and timely purpose of understanding the challenges and opportunities of urbanization in Nigeria. The country’s rapid urban population growth and expansion is examined in relation to the account of its recent urban economic growth in order to seek for ways to finance urban development, particularly the provision of urban public goods and services. Although oil has created some positive spillovers in high-end services and finance, high oil revenues have also led to an overvalued exchange rate that makes other exports uncompetitive, lowering incentives, and the ability to invest in non-oil sectors, including manufacturing and agriculture. Tradable sectors, apart from natural resources, have not been developed. In particular, manufacturing development has resembled that in resource-dependent economies more than in most developing countries (figure O.1). Even in today’s slightly more diversified economy, growth has been most rapid in non-tradable services sectors, including real estate, financial intermediation, and information and communication technology. The dependence on oil has in turn led to underdevelopment of other revenue sources and prevented improvements in governance.
South Africa: Storm brews over new customs law (Business Day)
SA’s seaports could face increased congestion, reams of additional red tape, and costly handling delays when new customs clearing legislation comes into effect, says the import-export industry. The South African Revenue Service disagrees, saying the Customs Control Act of 2014 is necessary for streamlining the ports and national security. The legislation requires all imported and exported sea freight to be cleared at the coastal ports of entry and downgrades Southern Africa’s full service inland "dry ports" to depots in which the customs function will be limited to inspection status only. The inland ports currently have the status of seaports, with full customs clearing and forwarding capability and have assisted with easing congestion in the port of Durban significantly. Containers can be consigned directly to or from inland ports to any foreign port, simplifying cargo delivery in a one-document operation.
Botswana: Underutilised dry port reopens (Mmegi)
The underutilised Botswana Dry Port in Walvis Bay, Namibia, owned and managed by Botswana Railways’ subsidiary, Sea Rail Botswana is back in operation after being closed for some time. Acting Permanent Secretary in the Ministry of Transport and Communications, Ompone Kereteletswe told the Public Accounts Committee that the port has been closed for business due to some teething problems, which the relevant ministries from both Botswana and Namibia had resolved.
World’s first illegal fishing treaty is now in force (FAO)
The Agreement on Port State Measures to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing (PSMA) - adopted as an FAO Agreement in 2009 after a years-long diplomatic effort - is the first ever binding international treaty that focuses specifically on illicit fishing. The threshold to activation of the treaty - which called for at least 25 countries to adhere to it - was surpassed last month, triggering a 30-day countdown to today's entry-into-force. Currently, the African parties to the PSMA are: Gabon, Guinea, Mauritius, Mozambique, Seychelles, Somalia, South Africa, Sudan.
EALA passes 2016/17 budget as it adjourns (EAC)
EA Whispers: 'Noise from Nairobi: regional integration end of road' (IPPMedia)
Country laws hampering East African single tourist visa (The East African)
NEPAD/SADC: Food and nutrition security knowledge management and sharing workshop (18-20 July)
FAO Food Price Index: commodity trends point to stable food prices, declining global food import bill
South Africa: S&P outlook shifts from fiscal metrics to political turmoil (Business Day)
SA investors in Mozambique stay put despite debt crisis (City Press)
Mauritian manufacturers to participate in Source Africa 2016 in Cape Town (GoM)
Mozambique gives Malawi cargo police escort (Club of Mozambique)
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