News
tralac’s Daily News selection: 17 June 2015
The selection: Wednesday, 17 June
ECA chief tells AU Summit to align and measure African Development Goals (UNECA)
“ECA is working to ensure that the issue of the African Development Goals (ADGs) does not fall off our collective radar but we must remember that existing programmes and frameworks are not yet being tracked and measured through a unified system of goals, targets and indicators,” said Mr. Carlos Lopes, the Executive Secretary of the ECA during the 25th Summit of the AU taking place in South Africa. Mr. Lopes suggested that ADGs should be developed in a way that takes account of the different starting points of our countries and gives them the space to adopt suitable policies rather than have a ‘one size fits all’ policy regime. They will also need to be compatible not only with Agenda 2063 but also with the African Common Position.
AU moves toward financial independence (Business Report)
Dr Donald Kaberuka: valedictory remarks at the AU Summit
Dr Nkosazana Dlamini-Zuma: statement to the AU Summit
COMESA-EAC-SADC TFTA Agreement signatures rise as Swaziland signs
The Kingdom of Swaziland became the 16 State to sign the COMESA-EAC-SADC Tripartite Free Trade Agreement. Member/Partner States that have so far signed the Agreement are; Angola, Burundi, Comoros, DR Congo, Djibouti, Egypt, Kenya, Malawi, Namibia, Rwanda, Seychelles, Sudan, Tanzania, Uganda, Swaziland and Zimbabwe. This [also] brings to 24 Member/Partner States that have signed the Declaration launching the TFTA except for The Republic of Libya and The State of Eritrea.
“Help us keep the momentum” RECs urge African Leaders (SADC)
Speaking on behalf of the African Regional Economic Communities (RECs), SADC Executive Secretary, Dr. Stergomena Lawrence Tax urged the Heads of State and Government to enable the RECs to keep the momentum on the pressing matter of Capacity Development and Institutional Transformation of Africa’s Regional Economic Communities, which are the “building blocks” of the African Union. “The capacity of the entire AU institutional architecture requires attention, as part of the RECs capacity and institution building process particularly as it relates to effective linkage with other AU institutions in avoiding, the long standing and unattended problem of overlaps and duplication by institutions which are supposed to be working in coherence, linking and reinforcing transformation efforts.”
AfCoP annual meetings conclude with renewed commitment to results-oriented regional integration (AfDB)
In addition to sharing lessons and best practice from the AfriK4R assessments and regional roadmaps for COMESA and WAEMU, the delegates examined Africa’s landscape of challenges, opportunities, and trends related to economic integration and regional development. A recurring theme throughout the 2015 AfCoP Annual Meetings was the need to address “Africa’s implementation crisis” and to adopt innovative thinking and practices in areas like public finance, capacity building, and monitoring and evaluation (M&E). [Downloads]
Phyllis Wakiaga: 'The significance of the Tripartite FTA launch and signing' (Capital FM)
Despite the signing, without the finalization of tariff offers and rules of origin which are important trade facilitation instruments, the TFTA will be a challenge to operationalise and the inconclusive status of these areas does not bode well for trade in the bloc. This TFTA should not just be a political commitment on paper only but rather a show of political will to improve trade and should be signified by a quick resolution to the pending issues. [The author is CEO designate of Kenya Association of Manufacturers]
Kenya offers to host Cape-Cairo FTA secretariat (Capital FM)
Reform Africa’s policies for better trade – Uhuru (Capital FM)
Forge pacts to benefit from green energy, Uhuru tells Africa (Capital FM)
BoT: Gold, crude oil and white petroleum record price decline (IPPMedia)
Crude oil, white petroleum products and gold have recorded price decline during the year ending April this year, the Bank of Tanzania (BoT) has said in its May Economic Review issued yesterday.
Crop choice and infrastructure accessibility in Tanzania: subsistence crops or export crops? (World Bank)
Officials move to ease money transfer across East Africa (Business Daily)
Officials in East Africa are working to ease money transfer across the region in a move to boost trade. Low cross-border money transfer rates are set to be a reality as Kenya, Rwanda, Uganda and South Sudan formulate harmonised money transfer guidelines. Through the One Area Network Agreement, ICT ministers from the four countries have arranged with finance ministers and central banks to draft a proposal that is currently under discussion by individual governments.
East Africa Regional Transport, Trade and Development Facilitation Project (World Bank)
The World Bank Group has approved $500 million for the development of the transport and trade corridor in north-western Kenya and improve the livelihoods of the communities in Turkana and West Pokot counties. The upgraded road will link up to the Northern Corridor transport system and other major transport and trade corridors in the Eastern African region. [Project documentation]
MDBs provided $28bn in climate finance in 2014 (World Bank)
The MDBs’ channeling and leveraging of climate finance supports a mix of policy work and investments in both the public and private sectors with adaptation and mitigation benefits. Of the $28 billion committed in 2014, 82 percent was dedicated to mitigation projects that can reduce greenhouse gas emissions, and 18 percent went to adaptation projects designed to help countries adjust to the impacts of climate change and build resilience. [Download]
Framework for enhanced engagement with civil society organizations (AfDB)
The CSO Engagement Framework is designed to structure the AfDB’s broader and deeper engagement with CSOs through three dimensions—outreach, dialogue, and partnership—carried out at the corporate, regional/country, and project levels (three-tier engagement). It sets out specific activities for each dimension at each level: for example, encouraging greater civil society participation in annual meetings, developing and disseminating guidelines to staff on selecting and working with CSOs, and establishing a CSO portal on the Bank’s website. Once the Board adopts the CSO Framework, the Bank will implement the framework in a progressive way, building on results achieved:
Namibia: New investment act to bring wholesale changes (The Namibian)
The new law is likely to define what will be expected from domestic as well as foreign investors. The law is also expected to restrict some of the economic sectors to foreign investors and introduce investor-performance requirements. Malan Lindeque, permanent secretary in the Ministry of Industrialisation, Trade and SME Development said in an interview that transparency procedures for foreign investors will also be introduced and that investor registration will become compulsory. Lindeque said the ministry is currently undertaking a study to identify the economic sectors that are reserved for government, Namibian investors or those who require special entry requirements. Lindeque added that it has been proposed that the current EPZ regime will be phased out, and replaced by a new incentive regime covering manufacturing, agro-processing, logistics and tourism.
Namibia stands firm over poultry import restrictions (Global Meat News)
The Namibian government is continuing to fight a legal challenge against its decision to restrict South African chicken imports.
Namibia: Food safety policy launched (New Era)
Crisis-era trade distortions cut LDC export growth 5.5% per year (VOX)
This column summarises the findings of a recently-published study of the impact of crisis-era trade distortions on the exports of the Least Developed Countries (LDCs), based on data collected by the Global Trade Alert (GTA). Between 2000 and 2008 LDC exports grew in nominal terms 20.6% per annum. Since 2008 the annual rate of growth of LDC exports has collapsed to an average of 5.7%. How much of that export slowdown was due to trade distortions imposed since the crisis began?
The study breaks new ground by presenting new data on the extent of trade covered by crisis-era trade distortions, by considering a wider range of such distortions than most studies of bilateral trade flows, and by taking account of the impact of trade reforms. A richer and disturbing picture of the challenges facing LDC exporters emerges, with clear implications for trade and development policymaking. [The authors: Simon J Evenett, Johannes Fritz]
WTO sees “slight deceleration” in G20 trade restrictions but calls for continued vigilance (UNCTAD)
During the reporting period, G20 members continued to negotiate or conclude new international investment agreements (IIAs). Between 16 October 2014 and 15 May 2015, G20 members concluded seven bilateral investment treaties (BITs) and four “other IIAs” (table 1). Also during the reporting period, Indonesia sent notices of BIT terminations to Cambodia, Hungary, India, Romania, Singapore, Turkey and Vietnam. As of 15 May 2015, there existed globally 2,926 BITs and 345 “other IIAs”.
China third largest export market for American goods (USCBC)
The US-China Business Council’s annual report on US exports to China shows that China continues to be an important destination for American goods and a significant contributor to US economic growth, despite a slowdown versus previous years. In 2014, US exports to China totaled $120 billion, making it the third-largest export market for American goods behind Canada and Mexico, our neighbors and NAFTA partners. Overall, 42 states experienced at least triple-digit export growth to China since 2005, and five states saw export growth of more than 500 percent over the same period.
Nigeria among top beneficiaries of Europe’s migrants $110 bn remittances (BusinessDay)
Nigeria is among the top beneficiaries of the $110bn in remittance sent home by Europe’s 50-million-strong migrant population in 2014, an International Fund for Agricultural Development (IFAD) said on Monday. Dr Kanayo Nwanze, the IFAD President, said the figures were released amid growing intra-European tensions on migration. Nwanze argued even though they should not be seen as a substitute for development aid, yet the remittances brought a measure of hope and stability to their countries of origin, and the international community could do more to help maximise their positive effect. [Sending money home: European flows and markets]
Nestle cuts 15 percent of its Africa workforce (NewsDay)
ILO adopts historic labour standard to tackle the informal economy (ILO)
India’s exports contract for a sixth month, down 20.2% in May (LiveMint)
Falling exports have Indian producers banking on Yellen (LiveMint)
‘Essential shifts’ needed for UN to tackle new peacekeeping challenges, report reveals (UN News Centre)
Brazil asserts its influence across the Atlantic (Foreign Policy)
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)
