News
tralac’s Daily News selection: 15 June 2015
The selection: Monday, 15 June
SADC-EAC-COMESA Tripartite Free Trade Area Legal Texts and Policy documents: updated resource page (tralac)
The benefits of Africa's new Free Trade Area (Belfer Centre, Harvard)
The TFTA is a key landmark in Africa's economic history. It ranks in significance with the independence of Ghana in 1957, the creation of the Organisation for African Unity in 1963, and its reinvention as the African Union in 2002. To paraphrase Kwame Nkrumah, Ghana’s first president, the best way to learn to be a continental free trade area is to be a continental free trade area. The TFTA will benefit Africa in at least six mutually reinforcing ways: [The authors: Calestous Juma, Francis Mangeni]
Storify of Twitter chat w/@calestous and @JulieGichuru on Africa's new grand free trade area
Seychelles signs up for Tripartite Free Trade Agreement (Seychelles News Agency)
Although the archipelago’s regional imports to COMESA, SADC and the Indian Ocean Commission totalled a substantial 2.8 billion Seychelles rupees ($214 million) in 2014, this was offset by weak reciprocal exports of only SCR50.2 million ($3.8 million) with Seychelles’ regional neighbours in 2012, indicating that much more can still be done to promote the exportation of Seychelles’ goods to other African countries.
Africa free trade zone of benefit to Botswana (CoastWeek)
While the TFTA pact is a noble idea, Jefferies pointed out there will remain some non-tariff barriers to free trade in Africa. "What often happens is that while a free trade agreement reduces tariffs, there will often be an increase in non-tariff barriers," Jefferies said. "For example, if a pharmacist in Botswana wants to import medicines from South Africa, there has to be an approval first from local authorities, not to mention associated regulatory standards. "So trade is still restricted by non-tariff barriers."
Mega trade agreement a step forward for the continent – Carlos Lopes (UNECA)
While not all countries have signed on to their region’s tripartite agreement and the negotiations towards the 2017 deadline for the establishment of the Continental Free Trade Area (CFTA) will need to address some thorny issues, Mr. Lopes stressed that the principle at work is that of ‘variable geometry’ as not all countries are ready at the same time.
Carlos Lopes: ‘Seize your future’ (UNECA)
“If Africans do not occupy the policy space vacated in the recent past, thanks to the various crises that shook the pillars of the financial system and facilitated the emergence of new South engines of growth, they may not have another chance,” Mr. Carlos Lopes, the Under-Secretary of General of the United Nations and the Executive Secretary of the Economic Commission for Africa said during the opening ceremony of the twenty-seventh ordinary session of the Executive Council of the African Union in Johannesburg, South Africa.
Support African monitoring system, President Kenyatta says (Daily Nation)
Kenya has urged African countries to revive an African Union monitoring system as a way of improving governance and political stability among member states. President Uhuru Kenyatta on Saturday said AU member states have an urgent obligation to support the work of the African Peer Review Mechanism (APRM) and make it the source of continental policy standards. “The APR mechanism has lost much of its lustre as an innovative, home-grown and effective tool to deliver on good governance for Africa,” he told the 23rd summit of the heads of state of APRM in Johannesburg. “Its promise of enhancing good governance is fast waning. It has given way to routine exercises that do not instill enthusiastic commitment to leadership transformation reminiscent of past years.” [Statement by President Kenyatta during African Peer Review Forum]
What Buhari told African leaders: AU PSC meeting speech (Premium Times)
The images in the international mass media of African youths getting drowned in the Mediterranean sea on their illegal attempts, and often times illusory hope of attaining better life in Europe is not only an embarrassment to us as leaders, but dehumanises our persons. Indeed, they combine to paint a very unfavourable picture of our peoples and countries. Those of us gathered here today owe it as a duty to reverse this ugly trend. We must put an end to the so-called push factors that compel our young men and women to throw caution to the winds and risk life, limbs and all, on this dangerous adventure. We must redouble our efforts to sustain the economic development of our countries, ensure empowerment of our youths, create more jobs, improve and upgrade our infrastructure, and above all continue the enthronement of a regime of democracy, good governance and respect for human rights and rule of law. These and other measures that engender peace and stability must be pursued relentlessly.
AU leaders pledge unity, integration at first day of Summit (SAnews.gov.za)
HLP on Gender Equality and Women’s Empowerment: financial inclusion of women in agri-business (AU)
Report on the NEPAD Agency's support for regional integration and women empowerment (AU)
Dynamics of the war to peace transition in Northern Uganda: EOI (AfDB)
The goal of this study is to investigate how the households in Northern Uganda have responded to the return of peace and how this is reflected in their livelihood patterns, asset accumulation, demographic and migration patterns, and their demand for services.
Burundi: communiqué of AU Peace and Security Council, at the Level of Heads of State and Government (AU)
Assessing the state of regional financial integration in SADC (FinMark Trust)
FinMark Trust seeks a service provider to conduct an assessment of the State of Regional Financial Integration (RFI) in the Southern African Development Community (SADC). The overall purpose of the project is to assess and analyse the actual state of regional financial integration in the SADC region. The study will determine the level of actual RFI and, through detailed analysis, indicate the sectors and activities that effectively contribute to RFI. This will help the SADC regulators and financial sector service providers to have a better understanding of state of regional financial integration and to make better decisions on the basis of this information.
Walvis Bay Dry Port: untying a white elephant (Mmegi)
BITC will work hand in hand with Botswana Railways, Gabcon and Sea Rail Botswana to ensure the expansion and growth potential of the Port. The above stakeholders will play a very vital role in deviating traffic from Durban and Cape Town to Walvis Bay; more Batswana will be encouraged to use Walvis Bay as opposed to Durban due to the quicker arrival of goods and the nature of the relationship the Namibian and Botswana governments have with each other.
China beats India to become Kenya’s top imports source (Business Daily)
China has overtaken India to become Kenya’s largest source of imports in the first four months to April, latest data shows. The value of China’s exports to Kenya rose to Sh93.6 billion from Sh63.6 billion in a similar period last year, moving ahead of India — which has been the largest seller of goods to the local market since 2011. India’s exports to Kenya dropped to Sh80.6 billion in the period to April from Sh84.5 billion in a similar period last year, the Kenya National Bureau of Statistics’ (KNBS) latest data shows without giving details. [Download]
Zambia: Growth promotion through industrial strategies (International Growth Centre)
The study analysed trends and patterns in industrial performance over time, as well as industry-level capabilities and competitiveness; scoped high potential sub-sectors, with particular attention to resource-based industries and regional markets; and reviewed at broad level the policy framework for industrial development. [The authors: Judith Fessehaie, Reena das Nair, Phumzile Ncube, Simon Roberts]
Regional value chains in East Africa (International Growth Centre)
This project will focus on three key value chains in different major sectors, one each from the agricultural, manufacturing and service sectors. The research will be guided by the following research questions:
Targets Kenya must aim for in AGOA renewal (Business Daily)
East Africa freight logistics chains - market analysis and programme design (TradeMark East Africa)
TMEA has established a trade and component under SO3 to facilitate improved performance indicators such as time and cost to import and export. The Terms of Reference outline the scope of work required for support to developing the programming.
Simultaneous budget readings give us the broader regional picture (The New Times)
EAC finance ministers seek to create more jobs for youth in spending plans (The EastAfrican)
EAC protocol on labour in the offing (The EastAfrican)
Nigeria losing 400,000 barrels of oil to thieves daily — Osinbajo (Premium Times)
Poverty Reduction Strategy Paper (PRSP) countries in Sub-Saharan Africa have shown strong signs of growth resilience in the aftermath of the recent global crisis. Yet, this paper finds evidence that growth has more than proportionately benefited the top quintile during PRSP implementation. It finds that PRSP implementation has neither reduced poverty headcount nor raised the income share of the poorest quintile in Sub-Saharan Africa. While countries in other regions have been more successful in reducing poverty and increasing the income share of the poor, there is no conclusive evidence that PRSP implementation has played a role in shaping these outcomes. [The author: Daouda Sembene]
Mapping Poverty in Botswana 2010 (Statistics Botswana/World Bank)
This report discusses the main findings of the Poverty Map 2010 at the village level in Botswana. It also provides a discussion of how different village poverty estimates are from district poverty rates, as well as how different these are within the district. The authors also provide a detailed discussion of the precision of the Poverty Map estimates.
Dani Rodrik: 'The muddled case for trade agreements' (Project Syndicate)
Trade agreements have long stopped being the province of experts and technocrats. So it is not surprising that both initiatives [TTIP, TPP] have generated significant and heated public discussion. The perspectives of proponents and opponents are so polarized that it is hard not to be utterly confused about the likely consequences. To appreciate what is at stake, we have to understand that these deals are motivated by a mix of objectives – some benign, others less so from a global perspective.
Is the WTO passe? (World Bank)
The WTO has delivered policy outcomes that are very different from those likely to emerge out of the recent wave of preferential trade agreements (PTAs). Should economists see this as an efficient institutional hand-off, where the WTO has carried trade liberalization as far as it can manage, and is now passing the baton to PTAs to finish the job? This paper surveys a growing economics literature on international trade agreements and argues on this basis that the WTO is not passé. Rather, and subject to some caveats, this survey of research to date suggests that the WTO warrants strong support while a more cautious view of PTAs seems appropriate.
Formulas for failure? Were the Doha tariff formulas too ambitious for success? (World Bank)
This paper views tariff-cutting formulas as a potential solution to the free-rider problem that arises when market opening is negotiated bilaterally and extended on a most-favored-nation basis. The negotiators in the Doha Agenda chose formulas that are ideal from an economic efficiency viewpoint in that they most sharply reduce the highest and most economically-costly tariffs. When the political support that gave rise to the original tariffs is considered, however, this approach appears to generate very high political costs per unit of gain in economic efficiency. The political costs associated with the formulas appear to have led to strong pressure for many, complex exceptions, which both lowered and increased uncertainty about members’ market access gains.
Competitive neutrality in competition policy: issues paper (OECD)
This issues paper examines (1) why competitive neutrality matters, (2) which state measures may distort the playing field, (3) how competition policy, law and enforcement contribute to enhance competitive neutrality in the market place, and what other rules and tools may be available, and (4) some concrete challenges arising for competition authorities in ensuring neutral competitive markets.
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)
