News
tralac’s Daily News selection: 30 June 2015
The selection: Tuesday, 30 June
Global Review of Aid for Trade starts today
The Fifth Global Review of Aid for Trade gets under way at the WTO’s headquarters on 30 June 2015. The three-day event will bring together over 1,000 participants from around the world to review actions being taken to reduce trade costs so that developing countries, and in particular least-developed countries, can participate more effectively in global trade. A theme running through the three-day event will be the significant contribution that implementation of the WTO’s Trade Facilitation Agreement can make to the objective of reducing trade costs. Over the course of the three days, 17 high-level plenary sessions and 28 side events organized by WTO members and other Aid-for-Trade partners will be held. [Download the programme]
Fifth Global Review of Aid for Trade: UNCTAD participation, World Bank participation, OECD commentary
Released today: The role of trade in ending poverty (WTO)
A greater and more sustained effort to deepen the integration of developing countries into the global trading system through lower trade costs and fewer barriers between countries is essential to eliminating extreme poverty, according to a joint World Bank Group and World Trade Organization report released today. The report highlights three main messages: [Download]
The ACP at 40 – Repositioning as a global player (Inter Press Service)
The ACP has social and organisational capital accumulated from a rich experience on trade negotiations with the world’s largest bloc of Europe and its 500 million inhabitants. Undoubtedly marked by contentious issues on trade provisions to satisfy the WTO’s non-discriminatory behaviour among its member States, ACP-EU relations reveal the persistent battle of poor versus rich with a view to finding common ground on issues of mutual interest. The 40th anniversary celebration by the ACP Group at a High-Level Inter-regional Symposium on June 4 and 5 witnessed reflections on achievements and failures, as well as limitations in the performance of the ACP Group, in itself as a group and among its member states, as well as in its partnership with the European Union and the wider global arena. [The author, Patrick I. Gomes, is the Secretary-General of the ACP Group of States]
The AIIB was launched yesterday: a collection of links on its structure
Articles of Agreement (Government of China)
A breakdown per country of shares, votes in China-led AIIB
Initial subscriptions to the authorized capital stock (South Africa 0.60%, Egypt 0.66%)
How voting rights in AIIB reflect Beijing's leading role (South China Morning Post)
Philippa Brant: 'Four observations about the AIIB's Articles of Agreement' (Lowy Institute)
Can new AIIB learn from both BRICS & Western development experiences? (IDS Rising Powers)
Kenya needs to invest Sh1.7trn yearly to hit 10pc GDP growth: Rotich (Daily Nation)
Kenya needs to make investments worth Sh1.7 trillion each year if the country is to attain growth rates of over 10 per cent annually, National Treasury Cabinet Secretary, Henry Rotich has said. Such investments, equivalent to 32 per cent of the country’s GDP would be channelled to critical sectors in energy and infrastructure development.
Motivated by the relative lack of research on international procurement, we used World Bank contracts data to examine the linkages between countries’ economic development trajectories and their domestic firms’ competitiveness in our recent paper, 'Aid procurement and the development of local industry: a question for Africa'. Here are four key points we uncovered: [The authors: Jeffrey Gutman, Christine Zhang]
US trade mission to Sub-Saharan Africa concludes in Kenya (US Department of Transportation)
In Johannesburg, Secretary Foxx and his counterpart, South African Transportation Minister Dipuo Peters, signed a Memorandum of Cooperation to work together on important issues related to roads, rail, transit, air and maritime transport, including skills and workforce development. An important element of the agreement is a mutual commitment to bring more women into the transportation field. Secretary Foxx and Minister Peters immediately launched the “Tomorrow’s Transportation Leaders” initiative, a capacity-building program for Sub-Saharan Africa.
Ambassador Michael Froman: statement on Congressional Passage of TPA, AGOA, and Preference Package (USTR)
On trade, here’s what the President signed into law (The White House)
What they’re saying on the trade package (TradewWinds)
Nairobi Convention COP: speech by Achim Steiner (UNEP)
Then we face urbanization pressures, most markedly in main centres such as Mombasa, Dar es Salaam, Maputo and Durban. Consequently, pollution in some key areas is degrading water and sediment quality, resulting in a loss of biological diversity, problems for human health and a reduction in fish stocks. And we have likely yet to see the worst impacts. With the exception of Kenya, it is estimated that by 2020, 50 per cent of the populations of the Western Indian Ocean's mainland countries will live within the coastal zone. Economic activities are also expected to intensify, particularly in the areas of maritime trade, mineral extraction from the coast, oil and gas exploration, coastal tourism and bio-prospecting. While these sectors present enormous economic opportunities, the potential impacts may reduce natural capital. Then, of course, we have the specific climate challenges faced by Small Island Developing States (SIDS), such as our gracious host today. [Climate change strategy for the Nairobi Convention Area]
India begins first seabed exploration for gold and other mineral deposits in Indian Ocean (Economic Times)
UNSG: Failure to constrain climate change will create ‘climate chaos’ (Common African Platform)
BASIC Ministerial: statement on climate change (Common African Platform)
Ministers expressed disappointment over the continued lack of any clear roadmap for developed countries to provide USD 100 billion per year by 2020, as well as on substantially scaling up financial support after 2020. They urged developed countries to honor their obligations to provide new, additional and predictable financial support to developing countries in a measurable, reportable and verifiable manner. They reiterated that public financial sources should be the mainstay of climate finance and that private finance could only be expected to play a supplementary role.
Statement on political and security developments in the Kingdom of Lesotho (GCIS)
After receiving the report of the Fact Finding Mission, President Zuma has become more concerned about the apparent explosive security situation in Lesotho. In this regard, President Zuma has decided to urgently dispatch Deputy President Cyril Ramaphosa, who is the SADC Facilitator on Lesotho, to consult with Right Honourable Prime Minister Pakalitha Mosisili. Further, President Zuma is sending a Special Envoy to the Chair of SADC, HE Robert Mugabe, President of the Republic of Zimbabwe to share his deep concerns about the security situation in Lesotho as contained in the Ministerial Fact Finding Mission.
Lesotho: Second private sector competitiveness and economic diversification project (World Bank)
TFTA’s opportunity requires bold decisions – PM (New Era)
The tripartite agreement that incorporates Africa’s major trade blocs into a concerted effort to boost the continent’s trade power must be seen as an opportunity for Namibia to grow its economy at a rate that can rapidly reduce unemployment and poverty. However, Prime Minister Saara Kuugongelwa-Amadhila warned that this would require bold decisions to improve the country’s competitiveness and innovation capacity in a fast-changing world.
International migration paradigm for South Africa - remarks by Home Affairs Minister Malusi Gigaba
We often get severely criticized for the choice of balance we strike and, consequently, this balance cannot be arbitrary on our part, it must be guided by a clear, futuristic and balanced policy paradigm that seeks to harness the good and take advantage of the positives whilst it minimises the risks both through the policy guide and administrative processes and capacity.
One of our most important international obligations is to the region. South Africa has committed itself to African and regional integration, to progressively weaken colonially imposed borders and make it easier for SADC and African citizens to move without restriction. Because of our relative economic strength, our terms of trade with some of our neighbours are often balanced in our favour. So while we may have concerns about the impact of mixed migration on our domestic labour market, we must balance this with regional solidarity and enlightened self-interest, as South Africa will benefit in the long-term from a more integrated, more prosperous region and continent.
COMESA High Level Cyber Security Forum: 2-3 July 2015 (COMESA)
COMESA has developed and adopted cyber security policy and legislation. Extensive work has been done on the public key infrastructure protection. An assessment of the current situation of cyber security report will be presented to the forum in addition to regional cooperation agreement, cyber security board establishment. The main objective of the Forum is to contribute to harmonization, consolidation and support for the regional and national efforts in strengthening the safety, security and resilience of COMESA Cyberspace. The specific objectives are:
Is Uganda becoming a dollar economy? (Daily Monitor)
As of November, foreign currency deposits stood at Shs4 trillion, according to the central bank. However, as the central bank agrees, economists say it is hard to tell the actual amount of dollars in circulation due to black market trade of the unit. “It is not possible to establish the exact amount of foreign currency in circulation partly because of the informal trading,” Alupo says. But Ggoobi believes there has been a steady growth of dollar transactions, especially at times when the shilling is much volatile.
Exiting dollarisation won’t be easy: UN official (The Herald)
No country has ever been able to reintroduce its domestic currency in the history of dollarisation due to the costs associated with such a decision and Zimbabwe may not be able to do so at least in the next five years, a United Nations Development Programme senior official has said. UNDP senior economic advisor in Zimbabwe Mr Amarakoon Bandara told a Zimbabwe National Chamber of Commerce annual congress in Victoria Falls that Zimbabwe was not ready for reintroduction of local currency, even under a different name as the fundamentals were not there yet. The growing informal sector and rising imports, instead of savings, were also indications the economy is a long way from the desired destination.
Tanzania: Shilling finally gains after freefall spree (The Citizen)
Better cross-border trade key to EA growth (Business Daily)
The Kenya Private Sector Alliance and the Government of Kenya have been involved in proposals to expedite regional integration so as to facilitate cross-border trade with neighbouring countries as well as improve Kenya’s overall investment climate. One key reform is the National Electronic Single Window System (NESWS), which has drastically reduced cost of tax compliance and facilitates cross-border trade within the EAC. [The author, Carole Kariuki is the CEO, Kenya Private Sector Alliance]
South Sudan to sensitize citizens before joining EAC (Daily News)
South Sudan, the newest but troubled African State which had also applied to join the Arusha-pivoted, East African Community has announced that, the country will need five more years to sensitize its citizens before becoming the sixth member of the EAC. Official reports from the East African Community Secretariat in Arusha are to the effect that South Sudan’s council of ministers approved the country’s bid to join the EAC, but insisted its government needed five years to sensitise citizens on the benefits and risks of becoming a member.
Optimism high as Holili/ Taveta OSBP opens (Daily News)
Aviation: the next infrastructure growth frontier for Africa (AfDB)
Eastern African power organizations to advance power system integration (EAC)
Kenya–Tanzania power interconnection project: EOI (AfDB)
IMF extends support for Senegal’s plan to be emerging economy (IMF)
EU, India aim to resume stalled FTA talks in August (LiveMint)
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)
