News
tralac’s Daily News selection: 24 August 2015
The selection: Monday, 24 August
The African Democratic Developmental State symposium: selected updates
Replacing role of the state with externally funded NGOs left Africa in poverty – Kagame (Ghana Business News), Welcome remarks: President Kagame (AfDB), Rwanda and Ethiopia inventing a new Africa (KT Press), Self-financing is the way to develop Africa: Ghana Vice President (Egypt Daily News), Meles Zenawi: Why we must remember this intellectual giant of our times (New Times), Veep calls for new dev paradigm in Africa (Ghana News), Democracy and development not mutually exclusive (editorial comment, New Times)
Building the African Continental Free Trade Area: some suggestions on the way forward (Unctad)
Based on these studies, as well as discussions among a group of experts (UNCTAD, UNECA, AUC and consultants) on 2 April 2015 (Geneva), and other available analyses, this policy paper - with suggestions on the way forward in building the CFTA - was prepared with the aim of submitting it for the consideration of the AU Trade Ministers at their meetings on the CFTA, including the meeting scheduled to take place in Addis Ababa on 8-15 May, 2015. It would also feed into the subsequent policy process at the highest level, namely the forthcoming AU Summit of Heads of State and Government in June 2015, where a decision on the way forward in the CFTA process is expected to be made. [Download]
Is the latest FTA another booby prize for Africa? (The Namibian)
Ostensibly, we are moving to negotiate a continental free trade area which will finally begin the process of fulfilling of Nkrumah's dream of a united Africa. But instead, what we have is Cecil John Rhodes's dream of a market from Cape to Cairo - almost; no deepening of the African economic relationship into a customs union; just a widening to the north and west. Free trade areas are a nice step forward but they normally require no real sacrifice of economic interests. [The author: Roman Grynberg]
Unlocking Africa's trade potential (Project Syndicate)
Even as we consider how to make the most of AGOA’s historic renewal, we need to look beyond 2025 and imagine what a deeper, more mature economic partnership might entail. Of course, we will need to account for emerging economic realities both within and outside of Africa. Already, many African countries are forging more permanent, reciprocal relationships with other developed-country trading partners. At the same time, the US is moving forward with next-generation trade agreements – the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership – that will raise standards across both the Asia-Pacific region and the Atlantic and will have positive spillover effects in Africa. For example, the TPP will help combat illegal wildlife trafficking, including illegal trade in ivory from Africa. In other areas, including labor rights, these agreements could help make higher standards the global norm. [The authors: Michael Froman, Dana J Hyde]
This week, in Libreville: the 2015 African Growth and Opportunity Act Forum
Risks of TTIP and TPP (D+C)
The negotiations on the Transatlantic Trade and Investment Partnership and the Trans-Pacific Partnership are changing the system of world trade. It is important to discuss the negative impacts they may have on many developing countries. [The authors: Clara Weinhardt, Fabian Bohnenberger]
Egypt: Regional or bust? (Zawya)
Can Egypt and other similar economies survive mega-regional trade agreements? Egypt will have to push for such African mega-regional trade agreements to come to fruition, as otherwise its trading prospects will look bleak. In addition, Egypt will have to become more competitive in order to earn its rightful place in this new African mega-regional agreement. As for the Arab region, which continues to lag behind on regional cooperation, it has no alternative apart from getting its act together and reaching out to others, if only with a view to the partial integration of those countries that can afford to do so. The institutions are all in place. They just need to be activated for the Greater Arab Free Trade Area (GAFTA) process to resume in earnest. [The author: Magda Shahin]
WTO is not just a trade forum, says Commerce Minister Nirmala Sitharaman (The Hindu)
The WTO could not just be a trade forum and it had to keep development in mind, Union Minister of State for Commerce and Industries Nirmala Sitharaman said in an exclusive interview with The Hindu on Friday. She was speaking about its 10th Ministerial meet in Nairobi in December.
ACP group submits contribution for dealing with remaining DDA issues at Nairobi (ICTSD)
Obliterating Africa’s trade bottlenecks (Mmegi)
In the last five years of operation, the USAID-funded Southern Africa Trade Hub invested $50 million in eight Southern African countries. BusinessWeek Staff Writer Pauline Dikuelo spoke to USAID/Southern Africa senior outreach and communications officer, Kevin O’Loughlin to gain insight into their achievements since inception.
SADC integration vital for growth (Times of Zambia)
I was recently part of a delegation that toured Katima Mulilo border and the Katima Mulilo Bridge across the River Zambezi in commemoration of the Southern African Development Community by Zambia and Namibia. Ten years down the line, trade between Zambia and Namibia had increased by 200 percent, according to Namibian Ministry of Finance, deputy director for customs Wilbroad Poniso. This now has propelled Namibia to move towards approving the establishment of a one stop border service at the Katima Mulilo border post which separates the two countries. The legislation would be tabled in the next session of Parliament and thereafter take effect as the final piece of the jigsaw as Zambia is ready to execute the plan on all fronts.
SADC @ 35: success stories (Vol 1, SADC)
Wanted - gender equality in grand industrialisation plans (Gender Links)
COMESA Research Forum: Tracking informal cross border trade in Eastern and Southern Africa
Informal cross-border trade constitutes approximately 60% of the regional trade and it is improving the livelihoods of many populations through job creation as well as combating food insecurity in the region. Despite its enormous benefits, this trade is a threat in the region. It may offer unfair competitive advantage to informal sector traders over formal businesses. It also leads to loss of revenue through evasion of taxes by traders and affects the health of the populations in the region because many of the traders avoid safety checks on their commodities at the border. While the available data is incomplete to provide a precise indication of the magnitude of this trade, as well as hinder effective formulation of domestic and regional policies that enhance trading and development in the region. This study found that ICBT has increased steadily from 2010-2014 in the region. [The authors: Juliet Wanjiku, Maurice Juma Ogada, Paul Maina Guthiga]
Kenya’s new northern transport corridor promises region $2.6bn (The East African)
East Africa stands to make about $2.6 billion annually from Kenya’s northern transport corridor, new sea ports and other mega infrastructure facilities upon completion, global consulting firm Frost & Sullivan has said.
Determination required for African integration (Business Day)
Contradicting his reputation as a brash former general, Nigeria’s Obasanjo came across as wise, witty and adept at using first-hand experiences to illustrate his points. He called for a core group of African leaders to drive regional integration in Africa, much as Nigeria, SA, Algeria and Senegal had done in creating the New Partnership for Africa’s Development. He pushed for the abolition of visas to facilitate the free movement of Africa’s 1-billion citizens, criticised African leaders for talking regional integration while planning on a national basis, and condemned the negative role external actors such as France have played in sabotaging integration efforts. [The author: Adekeye Adebajo]
Botswana: Diamond slump halves economic growth forecast (Mmegi)
A 2016-2017 Budget Strategy Paper released by the finance ministry this [last] week, estimates the economy to grow by 2.6% while the budget balance is now seen posting a deficit of P4.03bn, or 2.6% of GDP. In February, finance minister Kenneth Matambo announced a growth target of 4.9% for 2015 while the budget was seen posting a surplus of P1.23bn, or 0.8% of GDP.
All set for Harare-Beitbridge road dualisation (The Herald)
Dualisation of the Harare-Masvingo-Beitbridge highway could soon kick off after Government last Friday invited consulting engineering firms to submit bids for the key road link between Zimbabwe and its major trading partner in the region, South Africa.
Kenya: Trade deficit up by Sh21bn in first half (Business Daily)
Kenya’s trade deficit widened by Sh21.3 billion in the first half of the year compared to a similar period in 2014, driven by a rising appetite for industrial inputs.
Kenya warned off economic war with Uganda (StarAfrica)
Legislators of the East African Legislative Assembly have called on Kenyan politicians to refrain from an economic war with Uganda, warning that this might negatively affect integration. The legislators were Friday reacting to the current standoff in Kenya over a bilateral agreement signed last week allowing Uganda to export sugar to the Kenyan market. They say the row mainly perpetrated by Kenyan opposition could create unnecessary tension and impact on trade between the two countries.
Environmental and Social Framework: consultations (World Bank)
The World Bank launched the 3rd round of consultations on the proposed Environmental and Social Framework, focusing on implementation and on an indicative list of complex issues that require further discussion. Consultation meetings will kick off at a meeting of African Finance Ministers in Angola at the end of August. This reform touches on complex development matters, including Human Rights, climate change, and a number of social issues.
UK’s Africa Policy (StarAfrica)
There are over 40,000 UK nationals living in Nigeria; 10,000 here in Ghana, 4,000 in Sierra Leone. 500,000 Nigerians and 90,000 Ghanaians live in the UK, though the respective Diasporas are much larger when you factor in the second and third generation populations who are now UK citizens. We think that there are over a quarter of a million British citizens who claim Ghanaian heritage. But we also know that this continent's very diversity means that there can be no one single Africa narrative, including in our foreign policy. [The author: UK High Commissioner to Ghana]
Lessons for Japanese foreign aid from research on aid’s impact (UNU-WIDER)
As Japan looks to the future, what insights can be found in the research literature on aid? How might this contribute to Japan’s new aid strategy? This is the focus of our paper. Ultimately, every donor’s aid policy must strike a balance between competing goals. The final allocation of aid (across sectors, countries, and modalities) reflects the overarching framework of foreign policy as well as past experience. These define what the donor sees as its particular comparative advantage. Accordingly, in this paper we try to avoid being over-prescriptive, while endeavoring to draw attention to what Japan might find useful in the literature on aid and its impact. [The authors: Tony Addison, Finn Tarp]
Ramaphosa on official visit to Japan (IOL)
Kenya: US embassy to issue five-year visas from September (Business Daily)
Mauritius tourism earnings down 3,5% in first half (The Namibian)
Global Witness response to US conflict minerals court case decision
As EU’s sledgehammer falls on Nigeria’s food export… (ThisDay)
Nigeria: Shoprite arrives A’Ibom, to employ 600 residents (ThisDay)
India-Egypt trade stands at $4.76b (Gulf News)
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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)
