The selection: Friday, 11 December

Today, in Nairobi: 7th Northern Corridor Transport Observatory Report validation workshop. For highlights: @NorthernCoridor

Today, in Gaborone: Sub-regional coordination mechanism for Eastern and Southern Africa (UNECA)

Gaborone discussion update: 'Why African-based institutions should operate coherently' (UNECA)

A trade facilitation strategy for Africa (AU)

The main objectives of the forum [being held in Libreville] is to appraise participants on new developments and endeavours in Trade Facilitation, to share best practices in the scheduling and implementation of Trade Facilitation Measures, to validate Terms of reference for Studies on the Gap Analysis of the implementation of the WTO Trade Facilitation Agreement in Africa and Development of Draft African Union engagement Strategy on the Agreement. The implementation of both the BIAT Action Plan and the WTO Trade Facilitation Agreement is expected to bring numerous benefits to the African Continent through improvements in the areas of transparency and fairness, good governance and modernization of the trade supply chain: This is key for poverty alleviation in Africa. Mr Aly Ibouroi Moussa called upon African WTO members to ratify the Trade Facilitation Agreement so as to be able to access the assistance facilities provided by the WTO and the WCO to implement the Agreement.

Kenya ratifies Trade Facilitation Agreement in advance of MC10 (WTO)

Kenya has ratified the new Trade Facilitation Agreement, less than a week before it hosts an important high-level WTO trade meeting. The WTO Secretariat received Kenya’s instruments of acceptance on 10 December. Kenya is the 57th WTO member and sixth African nation to ratify the TFA. The TFA will enter into force once two-thirds of the WTO membership has formally accepted the Agreement. In addition to Kenya, the following WTO members have also accepted the TFA:

WTO Nairobi summit: what’s in for East Africa? (Daily Nation)

COMESA urges Member States to ratify the Tripartite FTA (COMESA)

Sixteen countries have so far signed the Tripartite FTA. The Council encouraged Member States to ensure that the outstanding issues from Phase I negotiations are finalized within the 12 months from June 2015 as decided by the Tripartite Council of Ministers. “Negotiations continue in parallel to Phase II negotiations covering trade in services, competition policy, intellectual property rights and other trade related issues,” according to progress report presented to the Council.

With regard to movement of business persons: the Council noted that although the negotiation process could not be finalized, it was on course on a separate but parallel track with the Phase II negotiations. A draft tripartite Agreement has been developed and more work on this track is set to continue in phase II negotiations. The Council urged Member States to adopt more liberal provisions for the movement of business persons to facilitate trade and investment across borders. The Council also noted that seven of the 10 annexes that contain issues under negotiation have been finalized. The outstanding issues are tariff elimination schedules (annex I) trade remedies (annex II) and rules of origin (annex IV).

NCIP Kigali summit: joint communique (New Times)

On Single Customs Territory: The Summit noted the integration of the Regional Customs Transit Guarantees system and the improvement in its functionality. The Summit further noted the report of the time release study by the Northern Corridor Transit Transport Coordination Authority which has recorded increased efficiency on the time it takes to move cargo from the Port of Mombasa to the inland destinations along the Northern Corridor. The Summit further directed the Ministers of Finance together with Heads of Revenue Authorities to expeditiously resolve the challenges presented by diversion of transit cargo and the need to harmonise the respective warehousing regimes. The Summit further directed the procurement process of the Electronic Cargo Tracking System and address the issue of cash deposits and overstayed cargo in Mombasa.

Ethiopia’s entry into NCIP signals start of new trade bloc (Daily Nation)

The formal entry of Ethiopia into the Northern Corridor Integration Projects initiative is likely to reshape the regional economy and politics, creating a new trading bloc. In the 12th Head of States meeting on Thursday in Kigali, Rwanda, Ethiopia applied to join Kenya, Rwanda, South Sudan and Uganda, in the initiative, which is slowly transforming into more than just an infrastructure oriented group.

EA Grain Council to link regional grain businesses to improve trading (New Times)

Cross-border shares trading pact between Kenya, Nigeria signed (Daily Nation)

What EAC can learn from Nordic countries (Daily Monitor)

IGAD regional fisheries and aquaculture strategy: update (IGAD)

Most of the current fishery activities in the IGAD region are focused on inland waters located in the highlands and populated areas. The fish resource potential and its contribution to resilience, food security and livelihood diversification in Arid and Semi-Arid Lands (ASALs) are often overlooked by Member States and development partners because the huge rivers with high potential for fisheries are mainly found in the lowlands most of which are trans-boundary rivers. The workshop shared challenges and recommendations that apply to all Member States, such as:

Competitive cities for jobs and growth: what, who, and how (World Bank)

Of particular interest is the evidence from Africa: The top 10% of African cities in the dataset achieved an annual growth rate of 11.0%, strengthening hopes for the continent’s growth story. Unfortunately, the bottom 10% suffered from a fall in GDP per capita of 1.7% each year, underscoring the severity of Africa’s competitiveness challenge and the need for growth-focused interventions in Africa’s urban centers to fully reap the benefits of urbanization.

The report looks at global and regional trends, comparing different types of cities—by income, sector, region, and industrial mix. It found that competitive cities include more than capital cities, or global centers of commerce. They are often secondary cities that are experiencing rapid industrialization, such as Saltillo, Mexico; Meknes and Tangier, Morocco; Coimbatore, India; Gaziantep, Turkey; Bucaramanga, Colombia; Onitsha, Nigeria; and Changsha, China. [Download the report, companion papers]

Understanding urban land markets in West Africa (World Bank)

Making Moroccan cities safer and more livable (World Bank)

UN World Economic Situation and Prospects 2016 (UN)

Global growth is estimated at a mere 2.4% in 2015, a downward 0.4 percentage-point revision from forecasts presented six months ago, according to the UN World Economic Situation and Prospects 2016 report. Given the anticipated slowdown in China and persistently weak economic performances in other large emerging economies, notably Russia and Brazil, the pivot of global growth is partially shifting again towards developed economies. The global economy is projected to grow by 2.9% in 2016 and 3.2% in 2017, supported by generally less restrictive fiscal and still accommodative monetary policy stances worldwide, according to the report.

Extract: Developing economies in general would need to find new sources of growth domestically or regionally to escape the potential downward spiral emanating from commodity-price- and exchange-rate-related shocks. This would require Governments to pursue comprehensive structural transformation and industrial policies that would mobilize domestic savings and investment, improve institutions and corporate governance and reduce transaction costs and increase competitiveness. Sustained and sustainable improvement in labour productivity would allow many developing countries to create more decent jobs, increase the labour share of income and reduce income inequality both within and between countries. [Chapter 1 is available for download]

Swaziland: IMF concludes 2015 Article IV Consultation

SACU revenues are expected to decline markedly in 2016/17, putting pressures on fiscal and external balance. Furthermore, tighter or more volatile global financial conditions and weaker growth in South Africa could have negative spillovers to Swaziland. The recent weakening of the South African economy, together with the expected revision to the revenue sharing formula, point to downside risks for SACU revenues.

Swaziland: Mbabane-Manzini corridor dam feasibility study project (AfDB)

Zimbabwe: Cabinet to adopt diaspora policy (The Herald)

Cabinet is expected to adopt the country’s National Diaspora Policy which will encourage Zimbabweans in the diaspora to invest back home and make use of the expertise they would have gained over the years in other countries for economic development. In 2014, diaspora remittances amounted to more than $1,8bn to contribute about 15% of the country’s GDP. The Herald Business understands that Government has lined up Diaspora Engagements Conferences in South Africa, Australia and United Kingdom to engage more than 2 million Zimbabweans resident in those countries.

Zimbabwe: Resolve looming trade dispute (editorial comment, Financial Gazette)

The complaint raised by South Africa gives the first possible cue of a looming trade war. Yet it is important to note that South Africa has always had its cake and eaten it. In his 2014 budget statement, Finance Minister Patrick Chinamasa said South Africa was no longer observing a 1964 bilateral trade agreement, which provided for preferential rates of duty, rebates and quotas on certain goods traded between the two countries.

Zimbabwe: To ban or not to ban secondhand clothes imports? (Financial Gazette)

Mozambique: Fraught relationships (Financial Mail)

Relations between foreign-owned enterprises and local communities are often difficult in Mozambique. Many of the companies are struggling to turn a profit in the current commodities downturn, while local communities complain that promised investments in health and education have not materialised, and workers complain over pay and employment conditions. The incident in Muiane is not the first situation in which the Mozambican police appear to have worsened tensions. [The author: Tom Bowker]

AfDB's 'lessons learned' database is now open to the public (AfDB)

The database brings together more than 500 lessons and 1500 recommendations extracted from sector, thematic, corporate, country, impact and project performance evaluations, evaluation syntheses, and other reviews. Users can search for lessons, recommendations and documents using a variety of search parameters like keyword(s), sector, country, theme, date range and type of document.

Credit rating agencies: junk status? (UNCTAD)

Risk assessment is critical to well-functioning capital markets. Yet reliance on the “big three” credit rating agencies has increased with the rise of international capital flows. Their assessments have been strongly pro cyclical and have missed systemic risks. Insufficient competition, conflicts of interest and ideological bias are some of the reasons for this, says UNCTAD Policy Brief. The wide-spread use of their ratings has now come to be recognised as a potential threat to financial stability. Concerted reform of credit rating agencies is therefore urgently needed.

Extract: With the likelihood of increased debt distress across companies and countries, and at all levels of development, further reform of credit rating agencies should be an urgent priority of the international community, beginning with the next Group of 20 agenda under the leadership of China.

Asian, China's industrialization experience pivotal to Africa: DG UNIDO (Xinhua)

AU Commission discusses KIPPRA’s role in Agenda 2063 (KIPPRA)

Chinese devaluation is a bigger danger than Fed rate rises (The Telegraph)

Banking on Asean banks to step up with AEC (Straits Times)

Christopher Cramer: 'Industrialising freshness in global agriculture' (SOAS)

India: Job creation unlikely to pick up soon, courtesy weak exports (Livemint)

---

tralac’s Daily News archive

Catch up on tralac’s daily news selections by following this link ».

---

SUBSCRIBE

To receive the link to tralac’s Daily News Selection via email, click here to subscribe.

---

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)