News
tralac’s Daily News selection: 27 November 2015
The selection: Friday, 27 November
Today: MTC holds Beira and Zambezia Development Corridors Investment Conference
Looking ahead to Monday: South Africa's October trade statistics will be released, The 13th African Regional Meeting starts in Addis: updated agenda from the ILO
Featured commentaries:
Gerhard Erasmus: 'New generation disputes in African regional integration: what are the reasons and the implications?' (tralac)
This state of affairs is changing; at least in some of the RECs. Regional Courts and Tribunals have allowed standing for private parties; while recent case law shows a tendency to expand the scope of the relevant jurisdictional principles. New types of disputes involving investors and businesses from other African countries are also being heard by domestic courts. This Trade Brief discusses some of the recent cases and discusses the reasons and the implications of these developments for African regional integration endeavours.
Mzukisi Qobo: 'Depending on China is no way to grow Africa' (Business Day)
African leaders need to look beyond China for the continent’s long-term development. Next week, SA will be co-hosting the Sixth Forum on China-Africa Co-operation. While China’s relationship with Africa has broadly been beneficial, there are worrying movements in this tango.
Ricardo Hausmann: 'The import of exports' (Project Syndicate)
Should a country’s development strategy pay special attention to exports? After all, exports have nothing to do with satisfying their people’s basic needs, such as education, health care, housing, power, water, telecoms, security, the rule of law, and recreation. So why give precedence to satisfying the needs of distant foreign consumers?
Featured report: The Commonwealth in the unfolding global trade landscape - prospects, priorities, perspectives (Commonwealth Secretariat)
“Our flagship report offers new and valuable perspectives on Commonwealth trade in a global context. We have demonstrated that a Commonwealth connection makes a difference from a trade perspective and we have also suggested policy measures that can help members exploit the huge potential to expand their trade,” said Kamalesh Sharma, Commonwealth Secretary-General. Trade within the Commonwealth is already substantial and is predicted to surpass $1trn by 2020. When bilateral partners are both Commonwealth members, they tend to trade 20% more, save around 19% in costs and generate 10% more foreign direct investment inflows. Evidence also suggests that hundreds of billions of dollars of intra-Commonwealth trade has yet to be exploited, particularly through trade with developing countries. [Downloads]
Mainstreaming trade in Africa: lessons from Asia and the way forward (UNCTAD)
This paper examines the experiences of three Asian countries (China, the Republic of Korea and Singapore) that have successfully used trade to engender development and draws lessons from these experiences for Africa. The paper also argues that despite the growing interest in mainstreaming trade, no criteria have been set or defined on how to measure success. To fill up this lacuna, the paper proposes measurable criteria on how to determine whether or not African countries have successfully mainstreamed trade into their national development strategies. [The author: Patrick N. Osakwe]
WTO updates:
Pakistan unanimously elected to chair key WTO body on trade and environment (The News)
Cecilia Malmström: 'We must have a trade deal' (Politico)
India may not secure food security deal at WTO Nairobi meet (LiveMint)
India toughens stand at WTO after safeguards proposal blocked (LiveMint)
The world’s poorest countries can still make patent-protected drugs - till 2033 (Quartz)
AfDB Transport Forum: report of first day's proceedings (AfDB)
The panelists pinpointed that despite the opening up of African skies, the continent does not see many companies or competition, as taxes, fares and fuel costs are high in Africa. Capacity building for actors and operators in the transport sectors was also stressed as a key element for sustainable development and integration. Government officials and airline operators underlined opportunities for developing transport in Africa and potential benefits from the regional integration, but underscored the need for strengthened cooperation and vigorous actions. For African air transport to be competitive, they said, there is a need for adequately investing in transport infrastructure, cancelling the monopoly of airport service providers, reducing fuel prices and taxes, as well as fares and charges.
Chinese firm acquires Swissport (Tanzania Daily News)
Tanzania's Fair Competition Commission, is investigating reports on the acquisition of Swissport by China’s HNA Group and claims that the merger will not have material effect on the market. The FCC has given 14 days any parties that have objections with the merger to notify the commission, which strives for fair competition in the country.
Zambia: Lungu cuts spending on roads as low copper prices weigh (Bloomberg)
Zambian President Edgar Lungu unveiled a raft of spending cuts ranging from reduced fuel subsidies to delayed road building as an economic crisis in the southern African nation intensifies. The government will have spent $300 million on subsidizing fuel for consumers by the end of the year, which is “clearly not sustainable,” Lungu, told reporters Thursday in Lusaka. A further $40 million will have been paid to import power and ease a severe shortage between September and the end of the year, underscoring the need for the energy regulator to increase prices, he said. Lungu ordered officials not to start any new road projects, to defer construction contracts where possible and to focus instead on completing those already under way. He’s also delaying the establishment of a national airline, which was set to take place next year.
EAC/EALA updates:
Time to make One Stop Border Posts a reality
EALA members undertook an On-Spot Assessment on the One Stop Border Posts in EAC Partner States in the months of April and September 2015. Phase one of the assessment covered OSBPs of Mutukula (Uganda/Tanzania), Mirama Hill/Kagitumba (Uganda/Rwanda) and Rusumo (Rwanda/Tanzania) on 8th to 11th April 2015. The second phase covered Lungalunga/HoroHoro (Kenya/Tanzania), Taveta/Holili (Kenya/Tanzania) and Namanga (Tanzania/Kenya) from 30th September to 3rd October 2015. Generally on all borders, there is limited knowledge on borders with regards to OSBPs, lack of operating manuals and inadequate water supply. In its findings, the report underscores training and sensitisation programs and the need for teamwork.
EALA wants effective tracking of its resolutions
At the same time, the Assembly is to urgently mobilize resources to develop an online monitoring module under the EAC Monitoring System currently operational at the EAC Secretariat that will serve as a database for monitoring. The recommendations are contained in a report of the Committee on Legal, Rules and Privileges on tracking the implementation of Resolutions and Questions of the Assembly.
Promoting innovation and trade in East Africa's horticulture sector (New Times)
The conference under the theme, “Promoting innovation and trade in horticulture” brought together over 500 horticulture industry stakeholders from seven countries, including The Netherland, Kenya, Tanzania, Uganda, Burundi, Zambia and the DR Congo. It was organised by the National Agricultural Export Development Board, the Private Sector Federation, the Rwanda Horticulture Interprofessional Organisation and AgriPro Focus Rwanda. Rwanda’s horticulture sector is expected to fetch about $9m this year, up from $3m in 2010.
EALA to look into alleged mistreatment of Sezibera in Burundi (New Times)
COMESA updates:
William Mwanza: Steady progress of community law in COMESA: Malawi Mobile Ltd v Government of Malawi and MACRA (tralac)
Court of Justice ruling on the matter between Malawi Mobile Limited and Government of Malawi
COMESA/AUC discussion on the Road Map to eliminate HIV, TB and Malaria in Africa
SADC updates:
Namibian PM calls for regional approach to diamond processing (NAM News)
Namibian Prime Minister Saara Kuugongelwa-Amadhila has called on mining industry role players in the Southern African Development Community bloc to adopt a regional co-operative approach towards diamond processing instead of competing against one another. She made the call during a gala dinner held here Tuesday for industry players from across the SADC sub-region who had gathered for a two-day diamond industry conference, held under the theme "Challenges Facing Diamond Beneficiation in Southern Africa". "Last year, the SADC region produced 56% of global diamond output by US dollar value and 51% by volume. This is clearly a strong and dominant market position that we need to optimise by bargaining for better beneficiating deals in the region. We look forward to innovative proposals on how diamond beneficiation can be promoted in our region," she stressed.
Zimbabwe says diamond industry must tackle synthetic diamonds (The Namibian)
Regional parliament eludes SADC-PF
SADC calls for a code of ethics for media in the region
Zimbabwe's budget issues: The 2016 National Budget Statement, Govt misses ZimAsset targets (Zimbabwe Independent), Jet-setting govt sees expenditure rise 25%, deficit widens – think tank (Zimbabwe Independent)
Jim Brumby: 'A tool at the right time for tax reform' (World Bank Blogs)
Berlin Msiska, commissioner general of the Zambia Revenue Authority, said TADAT showed his administration had a strong governance structure. It validated previous reforms, and identified successful practices. The tool also showed some weaknesses, including in areas that had not received much attention, such as bottlenecks caused by the use of third-party information. He said it “should be embraced like a health check,” and planned to sign up for a re-assessment early next year.
Namibia studies SA's black industrialist policy (The Namibian)
Namibian diamond factories decimated in downturn, mining minister says (Rapaport)
Mozambique announces total ban on timber exports, starting immediately (Club of Mozambique)
Africa Tourism Monitor (AfDB)
Promoting North African women’s employment through SMEs (AfDB)
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 300 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. Richard Humphries (Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Twitter: @richardhumphri1)
