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tralac’s Daily News Selection
CFTA negotiations update: The Eighth Meeting of the Continental Free Trade Area Continental Task Force kicked off today in Arusha - @AUTradeIndustry
Economic Report on Africa 2017: Urbanization and Industrialization for Africa’s transformation (UNECA): The report calls on African governments to instigate and coordinate investments in urban infrastructure, particularly in electricity and transport, both to support industrial enterprises and to meet urban populations’ needs. The 11 country case studies in the report detail practical findings on how Ethiopia, Madagascar, Morocco, Nigeria, Congo Brazzaville, Rwanda, Sudan, Mozambique, Cote d’Ivoire, South Africa and Cameroon are managing rapid urbanization. Extract (Box 1.3: The Continental Free Trade Area) (pdf): The CFTA is more than a trade liberalization project, but also a tool for structurally transforming African economies and urban cities, boosting value addition and driving industrial competitiveness (and see the three thematic chapters, 3, 4 and 5 in this report). Although urbanization is crucial for facilitating agglomeration economies, enhanced cooperation at the continental level is also needed to provide the economies of scale needed to make Africa’s industrial products globally competitive. Urbanization is part of a chain of events for Africa to compete on world markets. Urban centres and agglomeration economies encourage productive local value chains, which are important for boosting national competitiveness. Competitive national industries are in turn important for developing efficient regional value chains, needed for Africa’s integration into global value chains. The economies of scale provided by urban agglomerations should not be seen as an end in themselves, however, but as a means to achieve further integration, economies of scale and competitiveness gains, all of which are needed for large-scale industrialization. The CFTA will help to maximize the gains from urban agglomerations and to stimulate further integration among African cities.
#CoM2017: Dakar talks on Africa collapse
UNECA’s 2016 Country Profiles for six southern African countries: download here
UNECA’s Stephen Karingi: Innovations for infrastructure development and sustainable industrialization
Regional Coordination Mechanism for Africa: Consolidated progress report for the period April 2016–March 2017 (pdf): As in past reports, the key achievements of RCM-Africa, the main challenges that it faced and the lessons learned will be considered. Pointer: Annex I - Priorities identified for the eight newly reconfigured clusters. [RCM 18: Session documents]
One Stop Border Post Sourcebook (2nd edition, Nepad Planning Agency and partners)
The following case studies of planned or operational OSBPs were prepared: (i) Chirundu, a juxtaposed OSBP serving Zambia and Zimbabwe; (ii) Cinkansé, serving Burkina Faso and Togo, although wholly located within Burkina Faso; (iii) Mfum, an OSBP planned to serve Cameroon and Nigeria, although wholly located within Nigeria; (iv) an overview of OSBPs within the EAC; (v) Namanga and Rusumo, the former to serve Kenya and Tanzania, and the latter to serve Rwanda and Tanzania; (vi) Gasenyi/Nemba, a straddling OSBP serving Burundi and Rwanda; and (vii) Lebombo/Ressano Garcia, planned to serve South Africa and Mozambique. The case studies focus on the issues/lesson(s) to be presented, with background information provided (only) to the extent that it is relevant. The case studies were necessarily limited to available materials (which have been cited within the case studies) and inputs from cooperating partners. Certain issues/lessons recur throughout several case studies (e.g., the need for well structured institutions, laws, and procedures; the importance of training), while others are unique (e.g., the viability and efficacy of the straddling OSBP model, the possibility of improving border operating performance even without an OSBP). The case studies provided source material for (the earlier chapters of) the Sourcebook.
2017 SSATP Annual Meeting: African transport policies, aligning with sustainable development goals: The Annual Meeting of the Africa Transport Policy Program was held in Marrakech, 20-24 February. Over 150 participants attended the meeting from 30 countries. Participants acknowledged that the three thematic areas of DP3, namely integration, cohesion and connectivity, urban transport and mobility and road safety were top key priorities for Africa transport challenges and noted that they were well aligned with Africa Development Agenda 2063 adopted by AUC. Profiled presentations from the SSATP meeting:
Truck monitoring in Eastern and Southern Africa (pdf): Extract: Route idle time ‘Durban-DRC’: (i) Idle measures the time the truck is not moving, either due to intermediate stops on the links (weighbridges, rest stops, etc.), or at borders, or while crossing major urban areas (ii) Average speed is measured only when the truck is moving (iii) On the total route, the trucks are moving less than a quarter of the total route time [Idle time is 74%].
Annual Report (January-December 2016) (pdf): Extract ‘Looking ahead - tackling emerging issues’: How digitalization will impact integration and connectivity? How we can foster regional integration while mitigating globalization risks. How can we encourage transport policies which mitigate climate change? How can we encourage citizen engagement to support the fights against vested interests in the transport reforms?
Rwanda launches new Regional Electronic Cargo Tracking System (New Times)
Rwanda, on Friday, launched the Regional Electronic Cargo Tracking System (RECTS), connecting with Uganda and Kenya in reducing the cost of cargo transportation along the Northern Corridor. “The system will enhance security of the supply chain, especially the mineral sector, where there have been challenges beyond the borders of Rwanda,” Richard Kamajugo, the senior director for trade environment at TMEA, said. The system comes three years after a 3 July 2014, EAC Heads of States Summit in Kigali, which directed the three member states to adopt e-monitoring for seamless flow of goods. It involves fitting of an e-seal with a 60-day power capacity, monitored under the GPRS platform.
Burundi’s admission into SADC: what would this mean for the East African community? (Arcadia Law)
Nevertheless, Burundi’s desire to join a third regional body is shocking especially in light of the current negotiations for the establishment of the COMESA-EAC-SADC tripartite free trade area that is expected to deal with the challenges of overlapping memberships. Currently, a COMESA-EAC-SADC Tripartite Free Trade Area Agreement has been signed by 18 out of the 26 member states and is awaiting ratification. The free trade area is expected to create a single large market with free movement of goods and services among the Tripartite Partner States. If this agreement is ratified, Burundi’s move will be pointless as there will be free trade amongst the member states of all the three regional communities. With such an important venture in motion, Burundi’s desire to create its own personal tripartite free trade by being part of all the three bodies is perplexing. If Burundi wishes to trade with SADC, a more suitable approach would be a trade agreement between Burundi and SADC pending the establishment of the COMESA- EAC- SADC free trade area. [The analyst: Jemimah Mushabe]
Go slow on push for EAC single currency - expert (The Monitor)
East African Community countries have been told to go slow on the push to have a single currency for the region if they cannot fix the basics of trading in the region. In an interview with Daily Monitor, Mr Miguel Azevedo, the head of investment Banking for Africa at Citigroup, said the countries should focus on issues that boost East Africa as a trading bloc because a single currency may be hard to attain.
EALA Committee on Regional Affairs and Conflict Resolution (pdf): report on public hearing on the pastoral communities of Longido (Tanzania) and Kajiado (Kenya) on the implementation of the EAC Common Market Protocol Projects
Mauritius trade policy updates:
Financial Services Consultative Council holds first meeting: The Council was chaired by the Minister of Financial Services, Good Governance and Institutional Reforms, Mr D. Sesungkur, is in line with Government policy to give a new boost to the global financial sector of the country. The Minister recalled that the FSSC serves as a think-tank and a platform for discussions of the latest concepts and international trends in the field of financial services and global business. The Council will be holding a series of meetings focused on accessing the African market and positioning Mauritius as a centre for enterprises of financial services.
Mauritius Export Association AGM: Referring to the exports of the Export oriented enterprises (EOE) sector, which have gone down by 0.8% in 2015 and by 8% in 2016 in the wake of the accentuated international competition and new challenges such as the Brexit, Mr Gungah said that Government has put in place a range of schemes to improve the business climate. The measures include: streamlining of business procedures to bring a highly conducive environment for both local and foreign businesses to continue investing in Mauritius; implementation of the Speed-to-Market scheme aimed at giving a new impetus to the Textile and Apparel industry; and the promotion of sectors with high potential like the jewellery sector. Mr Gungah also pointed out that the E-commerce platform, which is a major tool in the trading arena geared towards developing innovative ways to promote exports, will soon be launched.
Rwanda: Govt drafts new policy to promote Made-in-Rwanda (New Times)
The Ministry of Trade and Industry and East African Community Affairs has unveiled a Made-in-Rwanda policy in a bid to address issues of quality, prices, cost of production as well as link industries to suppliers. Minister Francois Kanimba said the policy is designed to help boost local industrial contribution to the economic growth – which increased to 17% in 2016 – ahead of the 20% target by 2020. “The initiative is playing a big role in boosting locally-made products. The trade deficit in terms of goods decreased to $1.5bn in 2016 from $1.8bn in 2015,” he said. Karenzi said, under the new policy, in order for companies receive Made-in-Rwanda brand, they will be required to have 30% of local content or value addition in their products.
South Sudan initiates move to join Afreximbank
A South Sudanese delegation led by Mou Ambrose Thiik, Deputy Minister of Finance and Economic Planning of the country, met in Cairo on Saturday with an Afreximbank team led by Bank President Dr. Benedict Oramah for discussions to clear the way for South Sudan’s immediate membership of the Bank. Addressing participants during the meeting, which took place on the sidelines of the meeting of the Bank’s Board of Directors, Mr. Thiik said that South Sudan was determined to accomplish its Afreximbank membership in a speedy manner and that it hoped to have a formal accession ceremony to the Bank’s Establishment Agreement during the second week of May 2017.
Tanzania: Magufuli sacks mining PS in fresh containers drama (IPPMedia)
John Magufuli yesterday dismissed the permanent secretary of the Ministry of Energy and Minerals, Prof Justin Ntalikwa, just hours after the PS accompanied the Speaker of the National Assembly, Job Ndugai, on an inspection of export-bound shipping containers impounded at the port of Dar es Salaam with gold/copper concentrate cargo. Although no reason was given for Prof Ntalikwa’s abrupt removal, the senior ministry official appeared to differ with Tanzania Ports Authority (TPA) director general Deusdedit Kakoko on the procedures for assaying the contents of the containers and issuing of export permits.
Chinese business community in Kenya launches Kenya Chinese Chamber of Commerce
Tanzania: Second phase standard gauge rail works tender out 19 April
African Alliance for e-Commerce: update
Ethiopian Airlines launches Vic Falls flight
The outlook for GCC trade with East Africa
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