News
tralac’s Daily News selection: 6 October 2015
The selection: Tuesday, 6 October
World Bank/IMF 2015 Annual Meetings: A guide to webcast events, Event: State of the Africa region, AfDB delegation to strengthen alliances at 2015 Annual Meetings
Africa’s Pulse: October 2015 (World Bank)
The 2015 forecast remains below the robust 6.5% growth in GDP which the region sustained in 2003-2008, and drags below the 4.5% growth following the global financial crisis in 2009-2014. Overall, growth in the region is projected to pick up to 4.4% in 2016, and further strengthen to 4.8% in 2017. Africa’s Pulse notes that overall decline in growth in the region is nuanced and the factors hampering growth vary among countries. In the region’s commodity exporters - especially oil-producers such as Angola, Republic of Congo, Equatorial Guinea, and Nigeria, as well as producers of minerals and metals such as Botswana and Mauritania, the drop in prices is negatively affecting growth. In Ghana, South Africa, and Zambia, domestic factors such as electricity supply constraints are further stemming growth. In Burundi and South Sudan threats from political instability and social tensions are taking an economic and social toll. [Download]
Companion, regional perspectives from the World Bank: South Asia Economic Focus, East Asia Pacific Economic Update, Jobs, wages, and the Latin American slowdown
Sub-Sahara Africa gets over $7.4bn of financing from World Bank (GBN)
Ibrahim Index 2015: Banks and customs procedures indicators
The indicators that are contributing the most to declines in Public Management and Rural Sector are Ratio of External Debt Service to Exports (-3.4) and Agricultural Policy Costs (-5.7) respectively. However Business Environment has shown the most concerning trend, exhibiting the most deteriorated score of any sub-category in the IIAG since 2011 (-2.5), having shown a year-on-year deterioration for four consecutive years. This trend has been largely driven by the two most deteriorated indicators in the IIAG, at the African average level: Soundness of Banks (-11.0) and Customs Procedures (-9.0). These are both concerning. Reliable financial institutions are the foundation of any growing economy – if people are losing trust in African banks, then sustainable economic growth is more remote than ever. Efficient customs, meanwhile, is absolutely essential for trade across African borders. The African Union thinks intra-African trade is fundamental to Africa’s economic future, and it’s not a good sign that, despite the continental body’s efforts, customs procedures are getting worse instead of better. [Various downloads available]
Nairobi MC10: submission by the G-33 (WTO)
We, the G-33 members, strongly renew the long-standing calls for global trade reforms that address inequities and imbalances in the Uruguay Round Agreement on Agriculture so that all WTO Members would be governed by a multilateral trading system under the WTO which is not only open, transparent, and market-oriented but also, more importantly, development-oriented, fair and provides a level playing field.
Amid uncertain outlook for farm talks, WTO members consider the 'Nairobi Package' (WTO)
Ambassador Vitalis gave a detailed account of the status of the four inter-related elements of the agricultural negotiations. These are: 1) domestic support; 2) market access; 3) export competition; and 4) cotton. He also updated members on the separate talks regarding public stockholding for food security purposes. He reported “a very serious situation” in both the domestic support and market access pillars of the agricultural negotiations. “In fact, in my summing up of both discussions I drew the obvious conclusion: that the failure to find convergence in domestic support and market access has wider implications and these are not positive”.
Kenya's @AMB_A_Mohammed yesterday tweeted a series of comments following her meeting with G7 trade ministers: view her TL
The African Union Commission and its technical office, IBAR, have supported the training to improve the quality and effectiveness of participation of African member States in the activities of the WTO SPS Committee. The specific training objectives were to:
Trans-Pacific Partnership - selected updates: Technical summary of the agreement (DFAIT Canada), Obama finally gets the TPP, a massive trade deal covering 40 percent of the world’s economy (Foreign Policy), In Pacific trade deal, Australia gets bigger US sugar allocation (Reuters), DG Azevêdo congratulates TPP ministers (WTO), China expresses hesitant support for the Trans-Pacific Partnership (TIME)
African Grain Trade Summit concludes with clear commitments towards structured grain trade (EAC)
The summit ended with recommendations from the delegates who fronted for a private sector-led Action Group that would champion the identification of key issues and to drive policy engagement with governments to ensure the grain sector thrives. Regional harmonization of trade policies among countries and among regional economic blocs, was supported unanimously by the delegates. The Eastern Africa Grain Council was tasked to drive the regional trade harmonization agenda, including policies on Warehouse Receipting Systems, Post-harvest Management, storage systems and technologies that support regional trade. The summit also brought together, for the very first time, the Eastern Africa Grain Council, the Southern Africa Grain Network and the West Africa Grain network, where it was agreed on the need of collaboration on Marketing Information and Capacity Building. The delegates further agreed to the formation of the African Grain Council (AGC).
Policy, not technical challenges, is the real hurdle for smallholder farmers, says civil society (UNCTAD)
The SADC Renewable Energy and Energy Efficiency Status Report (REN21)
The Southern African Development Community is one of the oldest regional economic communities on the African continent. The region is now becoming a key player in the international trend towards development of renewable energy resources and energy efficiency. However regional challenges persist particularly around energy access, health and environment, energy security, infrastructure and financing. The SADC Renewable Energy and Energy Efficiency Status Report provides an comprehensive overview of where the opportunities and challenges lie for meeting the region’s need for accessible, clean and sustainable energy. As with other REN21 reports, it is for policymakers, industry, investors and civil society to make informed decisions with regards to the diffusion of renewable energy. By design, it does not provide analysis or forecast.
Synergising and optimising mineral infrastructure in regional development strategies (E15 Initiative)
The purpose of this paper is to explore the potential of mineral infrastructures as “anchors” for economic development and cross-border cooperation. It proposes some policy recommendations to make better use of existing frameworks to foster the utilisation of mineral infrastructures. It also points out that in some cases, rules may not be the most appropriate way to stimulate broader economic development out of resource infrastructures. Sometimes incentives and strategic partnerships are more efficient and effective ways to realise certain objectives. [The author: Isabelle Ramdoo]
EAC seeks 'common borders' for education (New Times)
The East African Community is looking into the adoption of a common education protocol to ease movement of learners and teachers within the region. Regional experts behind the plan say the creation of a common EAC Higher Education Area (EACHEA) implies that qualifications will be appropriately recognised in all partner states both for continuation of studies as well as in the labour market. When the EAC is declared as an EACHEA in November, according to Prof. Mayunga Nkunya, the executive secretary of the Inter-University Council for East Africa, the most important development will be the elimination of the disparity in the national education systems. “And I must say that we are the first region in Africa to have devised this kind of system. Once operational, all these challenges which we are seeing in movement of students from one partner state to another will end.”
Zimbabwe: Exports to SA down 37% (The Herald)
According to the latest trade data from ZimStat, Zimbabwe exports to its neighbour were down 37,3% to $86,3m in August from $137,6m, while imports from South Africa climbed 5,4% from $189,3m to $199,6m. The weakening rand has made imports from South Africa land much cheaper in Zimbabwe. This is despite the policy measures, meant to curb imports, introduced by Government at the Mid Term Fiscal Policy Review. Zimbabwe’s trade deficit for August stood at $316,2 million from $291,4m recorded in July this year. This represents an increase of 8,5% from the July figures. Overall Zimbabwe’s trade deficit for the year to August 2015 now stands at $2,02bn reflecting the over dependency on imports and the decline in exports as the local economy continues to be hamstrung by capacity constraints and lack of competitiveness. [Zimtrade to tackle trade facilitation issues (The Herald)]
Swaziland: IMF completes 2015 Article IV Mission (IMF)
The mission encourages the authorities to step up efforts to raise the country’s potential for inclusive growth in order to address social and economic challenges. To this end, the mission recognized that the loss of AGOA eligibility raises the importance of enhancing economic diversification and competitiveness. To this end, the mission highlights the importance of fast-tracking policy efforts in multiple areas to promote export diversification (through private sector development), enhance access to financing, and improve the business climate.
Uganda: IMF staff completes review mission (IMF)
Rwanda: Ministry of Trade and Industry improves export base (New Times)
Côte d’Ivoire: Support to industrial competitiveness enhancement project (AfDB)
Regional Oversight Mechanism for DRC and the Great Lake Region: update (SADC)
HPCL seeks Mozambique gas for Gujarat LNG terminal (LiveMint)
Global Forum on Competition: Does competition kill or create jobs? Contribution from CUTS
Given the above, the international competition fraternity and indeed national policymakers need to explore ways in which fair markets influence jobs – especially in the developing world. As an advocate of competition reforms across the developing regions of the world, CUTS presents its views on the linkage between competition and employment, under the following three heads especially relevant for developing countries like India:
Competition policy within the context of Free Trade Agreements (E15 Initiative)
OECD/G20 BEPS Project for discussion at G20 Finance Ministers meeting (OECD)
The OECD presented the final package of measures for a comprehensive, coherent and co-ordinated reform of the international tax rules to be discussed by G20 Finance Ministers at their meeting on 8 October, in Lima, Peru. The OECD/G20 Base Erosion and Profit Shifting (BEPS) Project provides governments with solutions for closing the gaps in existing international rules that allow corporate profits to ‘disappear’ or be artificially shifted to low/no tax environments, where little or no economic activity takes place. Revenue losses from BEPS are conservatively estimated at USD 100-240bn annually, or anywhere from 4-10% of global corporate income tax revenues. Given developing countries’ greater reliance on CIT revenues as a percentage of tax revenue, the impact of BEPS on these countries is particularly significant.
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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)
