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tralac’s Daily News selection: 13 August 2015

News

tralac’s Daily News selection: 13 August 2015

tralac’s Daily News selection: 13 August 2015

The selection: Thursday, 13 August

Strengthening citizen participation on matters affecting regional integration in Sub-Saharan Africa (NANGO)

The SADC Treaty Article 16A provides for the creation of the SADC National Committees. The SNC is a multi-stakeholder platform at member states level responsible for the implementation of particular SADC programmes and also act as the vehicles for bottom-up policy-making within SADC. However, various independent studies and review processes have revealed that SNCs are the least functional SADC institutional structures and are non-existent in Zimbabwe. In view of this, NANGO and to some extent with the technical support of the SADC CNGO has embarked on a process to engage and lobby the government of Zimbabwe to formally constitute the SNC. NANGO gave a presentation on progress to date in lobbying for the operationalisation of the SADC committees, which was followed by thematic presentations by CSOs including:

Womens Coalition of Zimbabwe: SADC gender and development protocol - key issues for Zimbabwe

SADC CNGO: Progress of implementation of setting up of the SNCs within SADC

National Association of Youth Organisations: Social and human development issues in Zimbabwe and their regional implications

AFRODAD: Pertinent issues related to Trade, industry and investment in view of SADC regional integration

WIPSU: Womens participation in peace, defense and security issues

Zimbabwe Cross Borders Traders Association: Regional integration and informal economy.

Integrating the voice of CSOs in regional integration process - Eastern and Southern Africa (CUTS International)

Integrating the Voice of CSOs in Regional Integration Process - Eastern and Southern Africa is a project of CUTS Nairobi, through the support of Oxfam Novib under the Pan Africa Programme. The project is motivated by the need to guarantee CSO participation in the on-going initiative to bring 26 African countries from Cairo to Cape under one market. It is driven by the need to address a number of emerging issues/valid questions which have the potential of hindering the realisation of the objective of the Tripartite Free Trade Area which is to improve the lives of the people in the participating regions. These questions include: [Project www]

COMESA Business Visa: request for proposals (COMESA Business Council)

In March 2012, COMESA Business Council, representative of the private sector in the region, tabled before the Council of Ministers the need to have an interim solution for the movement of business persons in the region - through a common travel document for business persons known as the COMESA Business Visa. This will be an interim measure, as member states move towards the COMESA passport. The assignment will broadly cover the following focus areas: develop a project document that gives relevant background, justification, and operational scheme and budget for the implementation of the COMESA Business Visa scheme and develop a draft COMESA Business Visa instrument and operational scheme for validation. [Download]

Why is China investing in Africa? Evidence from the firm level (Brookings)

Using the firms’ transaction-level ODI data, the paper examines how Chinese ODI is distributed according to the recipient countries’ and sector characteristics. It finds that Chinese ODI is attracted to politically stable countries, but not necessarily those with good rule of law, consistent with what is found in the aggregate data. The paper also finds evidence that Chinese ODI is profit-driven, just like investors from other countries. Specifically, the cross-sector regressions show that Chinese firms invest in the more skill-intensive sectors in skill-abundant countries, but the less capital-intensive sectors in capital-abundant countries. These patterns are mostly observed in politically unstable countries, suggesting stronger incentives to maximize profits in tougher environments. Finally, the predominance of Chinese ODI in services appears to be related to host countries’ natural resource abundance, which is also consistent with the profit-driven nature of Chinese ODI. [The authors: David Dollar, Heiwai Tang, Wenjie Chen]

South Africa: Truck ban ‘not thought through’ (Business Day)

The Department of Transport’s proposal to ban trucks exceeding nine tonnes from public roads during peak hours has elicited a strong reaction from business. Such a change will also incur costs for consumers if implemented, as operators will be forced to put more vehicles on the road, according to the Johannesburg Chamber of Commerce and Industry. "The South African ports, which are already congested, would become gridlocked at a considerable cost to the national economy. In addition this will further reduce SA’s status as the preferred logistical gateway to the SADC region," says Warburton-McBride.

SADC in food deficit (Zambia Daily Mail)

All Southern African Development Community (SADC) member states except Zambia, Tanzania and South Africa will this agricultural season experience food deficit due to poor rainfall pattern caused by climate change. “The humanitarian outlook looks challenging. It is important to note that this year, availability of maize which usually makes up more than 75 percent of the total cereal production is forecast at 31.73 million metric tonnes compared to 36.79 million metric tonnes last year.”

SATUCC's Muneku: 'Endemic poverty, high unemployment Africa’s greatest challenges due to corruption' (The Post)

Endemic poverty and high levels of unemployment are the greatest challenges facing Africa due to widespread corruption and illicit financial flows, says Southern Africa Trade Union Co-ordination Council executive secretary Austin Muneku. Speaking in Gaborone on Tuesday when he officially opened a regional seminar on illicit financial flows from Africa and their negative impact on development, Muneku said massive corruption in many African states had led to the collapse of effective institutions of governance, thereby exacerbating illicit financial flows.

Uhuru hits back at Opposition over Uganda trade pacts (Business Daily)

President Uhuru Kenyatta has hit back at the Opposition for criticising his administration’s sugar and meat trade deals with Uganda, claiming that the opening of the local market to cheaper imports from the country is more cost-effective than sourcing it from overseas markets such as Brazil.

Charles Onyango-Obbo: 'What the Museveni-Kenyatta trade deal tells us about Uganda and Kenya' (Daily Nation)

Tanzania: 'Level playing field is needed for local cement producers' (IPPmedia)

Local cement manufacturers have said they are at the brink of collapse due to the continued influx of cheap imported products in an already saturated market. According to the Chairman of the Tanzania Chapter of East African Cement Producers Association (EACPA), Reinhardt Swart, the situation is made to be worse because they are competing with cheap imports at a time when their profit margins are squeezed by overcapacity in the market. "I am not asking for protection. I'm not asking the government to ban imports. I am asking for the government to create a level playing field," he said in a statement.

Uganda’s forex earning reduces by Shs113b (Daily Monitor)

Uganda’s current account balance has depreciated by $32m (about Shs113.280b) due to low export earnings. The current account balance is the difference between a country’s savings and its investments abroad. In its monetary policy report released on August 10, Bank of Uganda said: [Bank of Uganda June quarterly report]

Partnership to improve standards of African fish exports (The Fish Site)

WorldFish and the African Organisation for Standardisation (ARSO) have announced a partnership that will promote consumer confidence in African fish for domestic and export markets. The memorandum of understanding will allow the two organizations to work together on standards that will provide an Africa-wide framework for producers, distributors and sellers to ensure safety and quality at all stages of the value chain, from catch to the plate.

‘Strong African economies may lose out under CFTA agenda if dumping is not checked’ (The Guardian)

Following the conclusion of the President’s forum of the African Organisation for Standardisation, tagged “Africa Rises for Standards” in Abuja, the Director-General of the Standards Organisation of Nigeria and President of ARSO, Dr. Joseph Odumodu, in this interview with Femi Adekoya, unveils resolutions by ARSO to use its advocacy machinery to address challenges of standards harmonisation as well as dumping of sub-standard goods in the continent, especially in the face of African Union’s timeline for the Continental Free Trade Agreement (CFTA) agenda. Excerpts.

The role of standards in promoting sustainable agriculture, food security in Africa: opening remarks of the ARSO President (African Union)

Public debt sustainability in Africa: building resilience and challenges ahead (AfDB)

African policy makers need to adopt sound fiscal policies and complementary monetary policies, while pursuing growth-enhancing investment, including through borrowing. Caution should be exercised when approaching commercial debt markets though given the rising borrowing cost and possibility of shifting sentiments of investors. With low revenue-to-GDP ratios, many low income countries can reduce their debt through domestic revenue mobilization. They would also benefit from greater efficiency of public expenditures and medium term perspective in budgeting. Reducing inefficient spending (e.g., over-sized wage bills in Southern Africa, energy subsidies in North Africa) would create space for pro-growth outlays (support to SMEs, infrastructure, ICT) and discretion against shocks. Furthermore: [The authors: Mthuli Ncube, Zuzana Brixiová]

Kenya: Aid unpredictability and economic growth (AfDB)

Aid-Growth literature is awash with studies that either support or find no evidence for the importance of aid as a driver of growth. This study examines a related but different aspect of this debate; whether aid unpredictability has any positive or negative effects on economic growth.

Yuan devaluation threatens industries, good for imports (Business Daily)

TFTA: Africa’s crucial inflection point

Botswana to improve efficiency in cross border trade (Mmegi)

Angola to destroy 11m illegally imported eggs (The Herald)

We can learn a lot from China – Ramaphosa (News24)

Kenya to lift ban on biotech foods (Daily Nation)

Lesotho: EU calls for more trade (Lesotho Times)

Increasing trade with Africa to benefit Indian SMEs: UN body (SME Times)

Africa to be money spinners for Indian firms (Indian Express)


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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)

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