tralac’s Daily News Selection
The selection: Monday, 29 August 2016
CFTA negotiations update: Kenya signs partnership to speed up intra-Africa trade (The Standard)
Kenya's Foreign Affairs Cabinet Secretary Dr Amina Mohamed led her counterparts of South Africa, Nigeria and Egypt to pen down the agreement that should see 'tangible' progress before the October 2017 deadline. These are Dr Rob Davies (South Africa), Dr Okechukwu Enelamah (Nigeria) and Amb Amgad Ghaffar (Egypt). The four leaders took advantage Ticad to address the stalled talks on the CFTA that was President Uhuru Kenyatta's proposal during the African Union summit held earlier in Kigali. "The four countries represent the four economic blocks. Also, they are the most active countries in the discussions on CFTA hence the importance of them spearheading the talks," said Amb Nelson Ndirangu Director Economic Affairs at Foreign Affairs ministry who noted that the talks have so far covered just 'basic grounds.'
The decision was reached at by the leaders meeting for the African Peer Review Mechanism chaired by President Uhuru Kenyatta on the sidelines of the Tokyo International Conference on African Development. President Museveni told the meeting that he had arrived at the 10 bottlenecks after watching the development scene in Africa for 50 years. “I have picked some ideas which are responsible for our lagging behind. The problem seems not to be addressing all issues in a comprehensive way.” The motion to adopt the paper and task the APRM secretariat to expand it into a blue-print for the continent was moved by South African President Jacob Zuma and was unanimously supported. The proposal had earlier been backed by Senegalese President Macky Sall of Senegal and Ellen Johnson Sirleaf of Liberia in their earlier presentations. [APRM Forum: communiqué]
TICAD VI: selected outcomes
The Nairobi Declaration: We affirm that TICAD is a unique process that has contributed remarkably to Africa’s development and regional integration agenda. It is a forum that promotes synergy with a candid and heart-to-heart communication among Africa, Japan and the international community and values the sense of equality and mutual benefit. We acknowledge the contribution made so far by all co-organizers to the TICAD process - the Government of Japan, the United Nations, the United Nations Development Programme (UNDP), the World Bank and the African Union Commission (AUC). Bearing in mind the high potential of this partnership, we reaffirm our strong commitment to continue to pursue the TICAD process with its distinctive elements stated below as its guiding principles: [Prime Minister Shinzo Abe's speech during opening session, President Uhuru Kenyatta's speech during official closing of TICADVI Summit]
AfDB President emphasises industrialising Africa plan to spur bond markets: AfDB President Akinwumi Adesina unveiled the elements of an African industrialisation strategy at an international meeting of African Heads of State and Government and their Japanese counterparts, and called for the linking of stock markets to enlarge Africa's domestic markets. The AfDB president said it was also important for countries to tap the locally available resources, including $334bn held by African pension funds, to enable investors to access affordable funding for long-term investments. "We must have a strong domestic bond market in Africa. We must work towards integrating the stock exchanges from Johannesburg to Cairo. This will create a bigger market for bonds. It would also allow African companies to cross-list in different areas," President Adesina said.
Profiled AfDB-TICAD linkages: AfDB, JETRO sign MOU on collaboration: The AfDB and JETRO intend to collaborate with each other in developing and implementing programmes and projects. Priority areas of such cooperation will include: power and energy, industrialization and private sector development, including quality infrastructure. AfDB and JETRO will further strengthen cooperation through knowledge partnership including research, staff exchange and knowledge sharing in the areas of common interest. Such partnership will include: region-wide partnership with regional economic communities and collaboration to foster systematic knowledge transfer between Japanese and African companies that creates significant value addition to African agricultural exports to Japan and the world. [Japan chooses AfDB to implement bold new infrastructure plan, Japan pledges investment in quality infrastructure in Africa, AfDB, World Bank strategic alliance positions Africa to attract Japanese investors, JETRO Global Trade and Investment Report 2016 (pdf)]
Record 73 deals signed in bid to boost Africa-Japan trade (The Standard): A total of 73 deals have been signed at TICAD VI in an unprecedented move to boost trade between Africa and Japan. This follows closely the Asian economic giant’s pledge to commit $30 billion (Sh3 trillion) in public and private support for infrastructure development, education and healthcare expansion in Africa. The 73 MOUs involve 22 Japanese companies and universities with African countries. Of the 73 MoUs signed at Ticad over the weekend, more than 20 of them involve Kenyan companies and State corporations across various sectors. [Kenya woos Japanese to sign deals on mega Lapsset corridor, China questions Japan’s ability to fulfil Ticad promises]
SA-JETRO MOU signed (dti): The MOU was signed between InvestSA Acting Head, Mr Yunus Hoosen, and JETRO Executive Director, Mr Hiroyuki Nemoto, on the sidelines of TICAD VI. “This MOU complements our investment relationship and the work done by the dti and Minister of Economy, Trade and Industry on the Joint Study on Economic Cooperation. The study recommended that South Africa and Japan should cooperate more in three areas: mineral beneficiation, agro-processing and automotive components. The number of Japanese companies have increased over the past 2 years in South Africa to 140, employing 150 000 people. Companies such as Toyota, Nissan, and Isuzu have retained and expanded their operations. The Japan Chamber in South Africa also reports an increase in its membership from 49 in 2013 to 64 in 2015,” added Minister Davies.
This dispatch uses Afrobarometer Round 6 data from 11 SADC countries to explore Zimbabweans’ views on some aspects of regionalization. Three-fourths (75%) of Zimbabweans think that people living in Southern Africa should be able to move freely across international borders in order to trade or work in other countries. This is the highest level of support for free movement in the SADC – twice as high as in Namibia and Botswana. Almost half (48%) of Zimbabweans say it is “difficult” or “very difficult” to cross international borders in order to work or trade in other countries. Regionally, Lesotho has the highest proportion of citizens (71%) who report difficulties in crossing borders.
Zimbabwe: CZI to submit value chains implementation proposals (The Herald)
The Confederation of Zimbabwe Industries is expected to submit to Government proposals on the implementation on value chains in line with the SADC Industrialisation Strategy and Roadmap. The move is in line with the industrialists' resolutions made at the CZI annual congress last month. The dossier, to be presented to Industry and Commerce Minister Mike Bimha, is expected to feed into the operationalisation of the SADC Industrialisation Agenda and Roadmap 2015-2063 by Zimbabwe. The CZI proposals include implementing the UNIDO value chains model as a tool for achieving competitiveness.
The four publications that were launched deal with energy, gender, trafficking in persons, and managing economic transformation. The SADC Energy Monitor, the first of its kind in southern Africa, documents progress made by Member States towards implementation of SADC energy policies and initiatives, including the SADC Protocol on Energy. The SADC Gender and Development Monitor 2016, now in its sixth edition, presents an account of progress made towards implementation of regional commitments to achieve gender equality and equity in line with the SADC Protocol on Gender and Development. Adding Value: a policy toolbox for SADC Member States to manage economic transformation and value chain development is a publication that provides tools and guidelines to help regional stakeholders to promote value addition, thus increasing the benefits from their products. [Tanzania's JPM skips yet another SADC meet, Burundi, Comoros Islands eye SADC membership]
In the report (pdf), EALA urges the Council of Ministers to fast-track and complete the study on the implementation of the EAC One Single Tourist Visa which commenced three years ago. EALA further wants the EAC Council to fast-track ratification of the Protocol on Tourism and Wildlife Management and for the EAC to provide additional resources for the Tourism and Wildlife Management Unit. The oversight report follows an on-spot assessment of selected hotels in EAC Partner States by the Committee on Agriculture Tourism and Natural Resources and a further workshop aimed at identifying progress made, existing gaps, challenges and charting a way forward in this respect in order to ensure sustainable development of the sector.
In a four-day regional stakeholders meeting (22-25 August, Nairobi) Partner States experts from ministries of agriculture, livestock and fisheries, Bureau of Standards, plant health inspectorates, and animal resources critically reviewed and provided comments to improve and enrich the draft EAC SPS legal framework and the measures. The meeting was also attended by officials from the Eastern Africa Farmers Federation, the Eastern Africa Grain Council, USAID Regional Economic Integration Office, USAID East Africa Trade and Investment Hub and EAC Secretariat officials. The EAC's Deputy Secretary General noted that many people in the Community were not yet aware of SPS measures and therefore the need for Partner States to take drastic measures to disseminate SPS information widely.
South Africa: Trade data likely to show another surplus in July (Business Day)
South Africa’s international trade balance is likely to have remained in surplus in July‚ according to Investec economist Kamilla Kaplan. Kaplan says the international trade account is forecast to have yielded a R5bn surplus in July‚ following surpluses of R18.4bn in May and R12.5bn in June. The trade balance data for July will be released on Wednesday.
Investors in Nigeria must learn how to navigate the potholes (Business Day)
A South African-developed mall opened in Lagos last week, attracting shoppers in droves, who took time off from their economic woes to visit more than 100 shops in the new centre. First-day trading at the centre was reported to be good, particularly at Shoprite and Game. Shoprite had to restrict access during the day because of the number of people in the store. The mall, on the Lekki Peninsula, serves a large catchment area that lacks shopping facilities, despite the fact that hundreds of middle class Nigerians are moving into new residential estates in the area. Developed by Cape Town-based Novare Real Estate Africa at a cost of R1.2bn, the Novare Lekki Mall, which covers 22,000m², is one of the two biggest malls in sub-Saharan Africa’s biggest city.
EADB urges strengthening of mining laws (IPPMedia)
EADB director-general, Vivienne Yeda, said the discovery and ongoing exploration of various minerals in the region have raised the expectation of host communities and governments that resource extraction will result in wealth creation and reduced budget deficits, and improve the conditions of the local people. “It is critical that host countries are able to derive tangible benefits from the exploitation of their natural resources,” Yeda told a regional seminar for judges from East Africa region, which ended in Nairobi on Sunday. The seminar, which was organised by EADB, was designed for judges from the East African region involved in arbitrating transactions and settlement of disputes in the extractive sectors.
Development co-operation for private sector development: analytical framework and measuring official development finance (OECD)
The aim of this report is to provide an analytical framework of development co-operation for private sector development and a measurement to capture relevant Official Development Finance. In general, PSD is regarded as an effective means to achieve the overall objective of boosting inclusive and sustainable growth. This paper considers PSD as development co-operation that addresses policies and institutions, market functioning and enterprise resources in order to improve the investment climate and the productivity capacity of the local private sector - particularly of SMEs - in developing countries.
Africa Human Development Report 2016: advancing gender equality and women’s empowerment (UNDP)
The report states that while 61% of African women are working they still face economic exclusion as their jobs are underpaid and undervalued, and are mostly in the informal sector. African women hold 66% of the all jobs in the non-agricultural informal sector and only make 70 cents for each dollar made by men. Only between 7 and 30% of all private firms have a female manager. In a key finding, the report estimates that total annual economic losses due to gender inequality in the labour market have averaged $95bn per year since 2010 in sub-Saharan Africa and could be as high as $105bn, or 6% of the region’s GDP in 2014.
Economics from space (G-Feed)
So why is it sensible to try to use satellite imagery to predict economic livelihoods? The main motivation is the lack of good economic data in many parts of the developing world. As best we can tell, between the years 2000 and 2010, one quarter of African countries did not conduct a survey from which nationally-representative poverty estimates could be constructed, and another 40% conducted only one survey. So this means that in two-thirds of countries on the world's poorest continent, you've got very little sense of what's going on, poverty-wise. And even a lot of the surveys that do get conducted are only partially in the public domain, meaning you've got to employ some trickery to even get the shape of the income distribution in these countries (and survey locations are still unavailable!). This lack of data makes it hard to track specific targets that we've set, such as the #1 Sustainable Development Goal of eliminating poverty by 2030. [The analyst: Marshall Burke]
Tree-based production systems for Africa’s drylands (World Bank)
Tree-based production systems have enormous potential to reduce vulnerability and increase the resilience of households living in dryland regions of Sub-Saharan Africa. Trees are key providers of biomass, which is critical for many livelihood needs. This report identifies some of the most promising investment opportunities at the level of tree-based systems, species (products), and well-defined management practices for accelerating rural economic growth in the drylands. [Companion report: Prevalence, economic contribution, and determinants of trees on farms across Sub-Saharan Africa, Companion book: Integrated landscape approaches for Africa’s drylands]
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