News
tralac’s Daily News selection: 26 June 2015
The selection: Friday, 26 June
The AU Summit declarations and resolutions have been published in Addis: some highlights
AU Declaration on 2015 Year of Women’s Empowerment and Development Towards Africa’s Agenda 2063
The full set of outcomes from the Sandton Summit
Launch of the Continental Free Trade Area: new prospects for African trade? (Bridges Africa)
These developments make clear that without locking in preferential trade arrangements among themselves, African countries participating in different RECs could offer better terms to external partners than they offer each other. For example, Senegal in ECOWAS trades on MFN terms with Kenya in the EAC but each country is committed to offering Europe preferential access when their respective EPA arrangements are fully implemented. Aside from the political momentum to keep the mileposts of the Abuja Treaty on track, the implications of the MRTAs and the changing trade landscape provide the context that have made the conclusion of a CFTA all the more urgent. [The authors: David Luke, Babajide Sodipo]
Why the TFTA is significant for Kenya (Institute of Economic Affairs)
Perhaps the statistics of Kenya’s trade between 2010 and 2014 could indicate what opportunities and challenges exist for Kenya in the TFTA. Although the nominal values of trade with other African countries increased from KSh 300 billion to KSh 390 billion, the proportion of that value to total trade declined from 22.4% to 18%. The statistics on the value of trade with EAC and COMESA partners also show a decline in the amount of trade with those partners as a proportion of total trade. Between 2011 and 2014, the balance of trade with COMESA and EAC partners decreased from KSh 126 billion to KSh 110 billion, and 110 billion to 89 billion respectively. [The author: Leon Ong'onge]
Cairo to Cape Town: new free trade 'super bloc' is huge for African economy (Belfer Center)
Because of the small size of domestic markets, there has previously been pressure to protect local industries from products imported from other African countries. This results in higher penalties for intra-African imports than for goods coming from outside the region. On average, products being sold within Africa attract a tariff of 8.7 percent, whereas similar goods coming from outside the region have a tariff of 2.5 percent.
There are also large imbalances in the application of tariffs between North Africa and sub-Saharan Africa. For example, Tunisian exports to Ethiopia attract a 15 percent tariff protection, while the opposite flow is given a tax of 50.4 percent. A Moroccan exporting to Nigeria pays almost four times as much as a Nigerian exporting to Morocco. [The authors: Calestous Juma, Francis Mangeni]
Counting the costs of tariff evasion in Tunisia (World Bank)
In the interim, though, researchers have had a field day sifting through the archive. Their investigations reveal that almost one third of the 662 or so firms owned by the Ben Ali clan were import-export firms, and that they were likely to have been among the largest, most economically relevant of his companies. Researchers then looked at the ‘evasion gap’ between the value of goods that countries said they had exported to Tunisia, and the value that firms connected to Ben Ali reported they had received. The resulting sample comprised 1,386 products and 16 countries, and covered of 69.75% of all the exports and 61.03% of all the imports declared in Tunisia. [Download]
From 2014: 'Regional integration - uniting to compete' (Mo Ibrahim Foundation)
Immigration ministers to decide on visa relaxation (COMESA)
Ministers in charge of immigration from COMESA Member States are expected to make a policy decision regarding the slow progress on the full implementation of the Protocol on Gradual Relaxation and Eventually Elimination of Visa Requirements (Visa Protocol). The Protocol is contained in the COMESA Treaty and all Member States have ratified it. However, it has faced difficulties in implementation. Additionally, the Protocol on Free Movement of Persons, Services, Labour and the Right of Establishment and Residence also referred as Free Movement Protocol faces similar difficulties. The VISA Protocol has existed since 1984 and has not yet achieved full implemented in the region while the Free Movement Protocol, adopted in 2001 has so far only been ratified by Burundi and signed by Rwanda, Kenya and Zimbabwe.
European Union (EU) Head of Delegation in Zambia and Special Representative to COMESA Mr. Gilles Hervio told the Ministers that 85 million Euros would be available to COMESA in the coming six years to support initiatives to enhance the free movement of business persons and professionals. The funds have been provided by the EU under the 11th European Development Fund (EDF). They will also be used to support regulatory reforms to facilitate trade in key selected service sectors building on the momentum generated by the Tripartite and continental trade negotiation processes. An additional 25 Million Euros will also be available to build capacities in the Eastern and Southern Africa and Indian Ocean regions mainly to support the improvement of migration governance and facilitate legal migration. It will also support initiatives for refugees and displaced people with a specific focus on the horn of Africa.
Implementation of immigration regulations: briefing by Home Affairs (GCIS)
Our concern has always been on promoting national security, which has a far-reaching impact on tourism as well. This I must reiterate: Our policy has never been tourism by any means possible. Even the UN World Tourism Organisation has noted that tourism can be manipulated for criminal activities. It is in our best interest as a democratic state to work towards reducing levels of crime even in this area if our economy is to grow and if we are to succeed in building a united, democratic, non-racial, non-sexist and prosperous society. The DHA presentation on latest statistics on traveller movement will assist our analysis of arrival patterns for June 2013, June 2014 and June 2015. [Download]
US-Africa trade gets a boost with renewal of AGOA (Wall Street Journal)
The U.S. Congress has renewed a 15-year-old law that allows made-in-Africa goods to sail into the U.S. duty-free. That makes Africa the latest continent wrapped up in a spree of trade legislation clearing through Congress. AGOA’s renewal is as good as certain: President Obama promised on Thursday afternoon to sign it into law it as soon as it reaches his desk.
Hub plans to facilitate $100m in new investments (CoastWeek)
Kenya’s investment authority has signed an agreement with a regional trade promotion firm to boost foreign investments in the EAC). Kenya Investment Authority signed the Memorandum of Understanding with the East Africa Trade and Investment Hub to join efforts to increase investment and trade in the EAC. KenInvest Managing Director Moses Ikiara said under the partnership, the Hub plans to facilitate 100 million U.S. dollars in new investments and create 10,000 jobs over the next five years.
Eight global hotel chains target Kenyan entry (Business Daily)
Enhancing integration, unlocking investment in West Africa (World Bank)
At a mid-June event in Dakar, a regional public-private dialogue framework was launched to jointly identify regional and national investment constraints, facilitate investment-policy improvements, and enhance integration in the region. Preliminary national investment policy reform agendas were developed for each country that are part of the Economic Community of West African States (ECOWAS).
CBN denies rice, cement importers access to forex (BusinessDay)
Godwin Emefiele, the Governor of the Central Bank of Nigeria, says importers of rice, cement and other products will no longer access Foreign Exchange from CBN, banks and bureau de change for such importation. Speaking to newsmen on Wednesday, Emiefiele said the measure would prevent further depletion of the country’s foreign reserve. He said the country was spending huge amount to import things that could be produced locally.
Ban on textiles, furniture out as Customs begin implementation of ECOWAS CET (BusinessDay)
The Federal Government yesterday in Lagos said it has lifted the ban on the importation of textiles and furniture commodities following the commencement of the implementation of the much awaited ECOWAS Common External Tariff (CET). Textiles, furniture and others have become dutiable, as both commodities have been removed from the Import Prohibition Lists and it is going to be implemented. However, to protect the nation’s local industries, import levies have been developed on these commodities to avoid making Nigeria a dumping ground for the above mentioned cargoes, said Abdullahi Dikko, Comptroller General of the Nigeria Customs Service (NCS) at the official launch of the implementation of ECOWAS CET.
First Bank CEO calls for naira devaluation after curbs (ThisDay)
Managing Director and Chief Executive Officer of First Bank of Nigeria Limited, Mr. Bisi Onasanya, has disclosed that Nigeria needs to let the naira devalue as foreign-exchange trading restrictions used to keep the currency stable are starting to harm growth in Africa’s largest economy. According to Onasanya who spoke during an interview at a Bloomberg conference at the Nigerian Stock Exchange in Lagos yesterday, “People just don’t believe the Central Bank of Nigeria (CBN) has what it takes to sustain the exchange rate at the present level. “The market needs to reopen. You cannot peg the naira at a level that the whole world knows is unrealistic.”
Naira falls on parallel market after forex control (ThisDay)
Changes to Angola customs regulations – payment, fraud and product shortage concerns (tralac)
In June 2015 the Angolan General Tax Administration, which includes customs, adopted a new ruling that is causing concern for many exporters. According to the new ruling, the consignee (buyer or importer) no longer needs to present the original Bill of Lading (B/L) to ensure the release of cargo from the port of arrival. This has raised concerns regarding the risk of non-payment and the potential for fraudulent claims. [The author: Willemien Viljoen]
South Africa: statement on the cabinet meeting, 24 June 2015 - selected trade, economy highlights (GCIS)
Cabinet approved the introduction of the revised Promotion and Protection of Investment Bill, 2015 into Parliament. The Bill reaffirms that South Africa remains open to foreign investment, provides adequate security and protection to all investors, and preserves the sovereign right of the South African Government to pursue developmental and transformational public policy objectives.
Kenya has highest informal jobs in Africa (Business Daily)
Kenya has the highest informal sector employment among nine countries covered in a new report by the United Nations’ Economic Commission for Africa. Employment in the sector stands at 77.9% of the total ahead of Rwanda’s 73.4%, Uganda’s 59.2 and Tanzania’s 8.5%. In Egypt, Liberia, Madagascar, Mauritius and South Africa, the sector offers jobs to 51.2, 49.5, 51.8, 9.3 and 17.8% of workers, respectively.
Counting Africa’s rural entrepreneurs (World Bank Blogs)
We conclude that the non-farm enterprise sector is not equally important across African countries and that their contribution to total household income is proportionately lower in rural than in urban areas, as expected. Great heterogeneity in the non-farm enterprise sector may also reflect different motivations for enterprise operation, as well as different country contexts and economic geographies. Although governments and development agencies support rural entrepreneurship for a number of reasons, more action is needed if the sector is to make a significant contribution to rural development.
Transitioning from the MDGs to the SDGs: accountability for the post-2015 era (and other recent resources from the Committee for Development Policy)
Alex Vines: '40 Years of Mozambican independence – time for inclusive politics' (eNCA)
The Central Sahel: a perfect sandstorm (International Crisis Group)
Senior government officials meeting on the Arms Trade Treaty (AU)
This week in the news
Follow the links below to read tralac’s daily news selections for the past week:
The selection: Thursday, 25 June 2015
The selection: Wednesday, 24 June 2015
The selection: Tuesday, 23 June 2015
The selection: Monday, 22 June 2015
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)
