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tralac’s Daily News selection
The selection: Friday, 29 January 2016
Later today, from Pretoria: South Africa's December trade data figures will be released
Call for papers: COMESA-ACBF capacity building project in economic and trade policy analysis and research
The objective of this call is to seek for empirical or policy oriented research papers to address the issues of COMESA regional integration in the context of inclusive and sustainable industrialization in COMESA Member States. The research theme is 'Trade in services and trade facilitation for inclusive and sustainable industrialisation in the COMESA region'. Successful papers will be presented at the Research Forum in August 2016 and selected papers will be published in the 'Key issues for regional integration, Volume V' in 2016.
Highlights from the Tripartite Private Sector Platform workshop: 'Regional blocs urged to harmonise rules of origin' (New Times)
Lilian Awinja, the EABC executive director, said the objective of developing rules of origin should be to avoid trade deflection and encourage intra regional trade. “We must ensure that the final rules are not trade-restrictive but simplified and more general rather than product specific except in minor cases where it is necessary,” Awinja said. Ideally, tariff liberalisation under preferential arrangement should be accompanied by simple and flexible rules– which will make it easy businesses to access the market and take advantage of preferential treatment, she added.
Nigeria-Kenya trade updates:
Kenya-Nigeria seek to establish duty free trade zone (The Standard)
Kenya and Nigeria are seeking to establish a duty-free trade zone between the two countries. This comes following trade talks between Nigerian President Muhammadu Buhari and his Kenyan counterpart Uhuru Kenyatta. In Kenya, the unit will be housed under the KNCCI’s Nigeria-Kenya business council and chaired by Equity Bank CEO James Mwangi while in Nigeria it will be chaired by Sani Dangote, brother of Africa’s richest man Aliko Dangote and vice president of the Dangote Group.
Kenya-Nigeria Business Forum: speech by President Uhuru Kenyatta
Our relations and engagements have been growing over the last few years following the two state visits to Nairobi and to Nigeria in 2013 and 2014 respectively. The two visits yielded a number of agreements including the Bilateral Trade Agreement and the Memorandum of Understanding between the Kenyan and Nigerian Private sectors. I am reliably informed that Kenya and Nigeria have agreed to establish the Joint Trade Committee, which will address issues affecting our trade relations. I believe once the committee is in place it will clear some of the hurdles our business persons are experiencing in order to enhance our trade volumes. With the Bilateral Trade Agreement in place, I believe our experts will be able to discuss ways of dismantling any impediments to increasing trade between the two countries.
Related: Brookside plans for West Africa exports get Buhari visit boost (Business Daily), @gina_din: To get a container from China to Nigeria it takes a month. To get a container from Kenya to Nigeria it takes 3 months, @AdanMohamedCS: Kenya recognizes the important role Nigeria plays in influencing foreign trade in the continent
Tanzania trade deficit widens in 5 years - report (The Citizen)
Tanzania has continued to experience a negative trade balance in the last five years, a comprehensive review of a five-year development plan has revealed. The report, which was unveiled to MPs on Monday during a workshop, says that between 2011/12 and 2015/16 the country witnessed a significant widening of trade deficit due to a decline exports. The situation was caused by a fall in gold and traditional exports. Poor exports have also contributed to volatile exchange rates, according to economists.
US-Africa trade and investment policy updates:
'Beyond AGOA': remarks by Ambassador Michael Froman (USTR)
The question now is not whether AGOA is an important tool – it has been and, for many countries, will continue to be vital for the near future. The question is whether we also need to develop new trade policies for the new Africa, given the broad spectrum of countries that now make it up and the changing global trading system of which it is part. This is a question that is also on Congress’ mind, with the AGOA extension legislation passed last summer asking us to assess the prospects of putting us on a path to more permanent, reciprocal trade arrangements.
Drawing on the expertise of this diverse and distinguished group, we’ve been working to develop a better understanding of the challenges and opportunities for trade and investment between the U.S. and Africa, and how we can harness the full potential of the US-Africa trade and investment relationship. This input is critical as we prepare a public report, for delivery to Congress in June of this year that will lay out a set of options and roadmaps for advancing the US-Africa trade and investment agenda.
To build upon AGOA’s successes, the US government and its African partners launched the Trade Africa initiative with the East African Community in 2013, signing a multifaceted Cooperation Agreement in 2015 focused on compliance with WTO standards on trade facilitation, sanitary and phytosanitary measures, and technical barriers to trade. The US is currently working to expand the Trade Africa Initiative to involve new partners, including Cote d’Ivoire, Ghana, Mozambique, Senegal, and Zambia.
US Secretary of Commerce Penny Pritzker: statement on Rwanda visit
Rwanda and the East African Community have a lot to offer US investors. East Africa is the most integrated and fastest-growing regional economic community in Africa. The PAC-DBIA members, as representatives of the American business community, have had the opportunity to share their perspective on policies that can foster deeper economic and trade ties between the EAC and the United States. As part of this visit, our delegation today met with President Kagame for a roundtable discussion on the opportunities presented by regional integration. While we continue to deepen our commercial relationships, our delegation arrived at a challenging moment. The United States has expressed its disappointment that President Kagame has chosen to run for a third term in 2017.
EAC to benefit from USAID Regional Strategic Plan 2016-2022 (EAC)
The visit constituted of a presentation of the draft USAID Regional Strategic Plan 2016-2022 to the Secretary General, and dialogue on ways in which the two organizations can align their key priorities for the next five years. USAID’s five-year strategic plan will focus on increased trade, investment and food security; health services and systems for marginalized and vulnerable populations; increased security of populations vulnerable to regional threats and strengthening East African institutions’ leadership and learning.
Electrify Africa Act: update (Atlanta Black Star)
In the next week, the U.S. House of Representatives is expected to vote on the Electrify Africa Act, passed by the Senate under unanimous consent late last year. This bill directs the President to establish a multiyear strategy to assist countries in sub-Saharan Africa, implement national power strategies and develop an appropriate mix of power solutions, including renewable energy, to provide access to reliable, affordable, and sustainable power in order to reduce poverty and drive economic growth. On behalf of the African Energy Leaders Group, a high-level public-private partnership launched last year, we welcome the leadership of the US Congress on this issue.
Mining and oil deals drop by half in East Africa (Business Daily)
The annual financial review by Burbidge Capital shows that the number of deals in the mining, oil and gas sectors halved due to the poor market. “2015 was a low year for the natural resources sector in East Africa as investor interest decreased, with around half the number of deals announced compared to 2014. The number of deals reduced to 23 in 2015 with Kenya accounting for almost 50% of the total deals recorded in the sector,” said the report. [Download]
East Africa: Regional states sign joint cargo tracking agreement (Daily Monitor)
The tracking system comprises satellites, a central monitoring centre and special electronic seals fitted on cargo containers and trucks, which give the precise location of goods in real time. The system triggers an alarm whenever there is diversion from the designated route, an unusually long stopover or when someone attempts to open a container. Besides curbing theft of cargo, the system also helps to seal loopholes that cause the country losses in revenue through suspected under-declaration of the value of exports or theft of cargo.
Busia town loses out as cross-border trade favours ‘cheaper’ Uganda economy (Business Daily)
Seamless trade is seen to have thrived more on Kenya and Uganda sides compared to Tanzania. Entering Tanzania from Isebania border in Migori, a Kenyan is subjected to checks and one cannot allowed to pass without a passport and yellow fever immunisation card. Use of national IDs at the exit/entry points by the citizens of Kenya, Uganda and Rwanda started two years ago. In Burundi and Tanzania, Kenyans cannot use national IDs to cross borders. Busia and Malaba are now like towns in the same country, save for difference in business environment. Kenya’s Luhya community speak Luganda language and vice-versa. But as businesses favour Uganda, Busia county government is seeking ways to woo back consumers. Following devolution, Busia town started attracting many entrepreneurs, but some are now eyeing the other side of the border.
Tweet by @UKenyatta: The dream of our continent will be achieved when our people are free to move without border restrictions
EALA: ‘Let us streamline acquisition of work and residence permits’ (EAC)
The Assembly is calling on the Partner States to commence the process of uniformly abolishing work and residence permit fees as well as in the facilitation of portability of social benefits. In the same vein, the Assembly is set to work jointly with regional advocacy bodies to engage in sensitization and popularization of the Common Market Protocol among other related issues. Late yesterday, the Assembly debated and adopted the Report of the Committee on General Purpose on the petition to EALA regarding work/residence permits in the EAC for the citizens of the Partner States.
Lesotho-South Africa Special Permit initiative: update (GCIS)
The thinking behind the Lesotho Special Permit initiative we explained in detail, in November 2015. This was after discussions between our two countries – the Kingdom of Lesotho and the Republic of South Africa. The SA Cabinet approved implementation in October, last year. In a nutshell, the purpose of the LSP is to regularise the stay of Lesotho nationals currently residing in South Africa illegally. It is meant to document Lesotho nationals who are working, studying or running businesses in South Africa, without appropriate documentation.
International Customs Day 2016: MRA launches National Single Window and Taxpayers’ portal (Government of Mauritius)
The Mauritius Trade link will act as a single web-based online portal for the submission and processing of import/export permits and respective clearance from Government agencies. Various benefits will be derived from the National Single Window project by the business communities in general such as reduction in dwell time for import/export permits processing and clearance; reduced cost of doing business; 24/7 access to the portal via internet; and facilities for traders to track the progress of their applications/declarations in real time among others. [Setting up of a commodities exchange (Government of Mauritius)]
Local Sourcing for Partnerships: project update (Comesa Business Council)
As a strategic response, the LSP project aims to increase local sourcing by large corporate companies in the COMESA region from small growth enterprise within the hospitality and agro-industry sector, focusing mainly on food and beverages. The project is being piloted in six COMESA states namely Ethiopia, Kenya, Malawi, Rwanda, Uganda and Zambia. In Zambia, the Zambia Association of Manufactures is the implementing partner for the project. A number of Multinationals often decide to source outside the region due to various reasons such as: the majority of local suppliers fail to meet the international quality standard requirements demanded for food and beverages suppliers, and most Multinationals have limited credible information on local suppliers. Additionally, local sourcing partnerships are viewed as difficult, unstable processes due to the inconsistence of supplying as well as their small production units and quantities.
WTO releases new statistical profiles on global value chains
Trans-Kalahari railway dream still an office job (The Namibian)
No investor has yet been selected to fund the project, as no tendering or calling for proposals to invest in the project has been done at this stage. Although the project was estimated to cost about N$100 billion in 2014, it is estimated to be nearly double that figure with today's exchange rate. Asked if there were major challenges that could hamper the development, Kalomoh said that at this stage none “that cannot be mitigated” could be foreseen. “Those saying the project is off are merely spreading unfounded rumours,” Kalomoh said.
India-Africa Partnership: a civil society perspective (Voluntary Action Network India)
The objective of the meeting was to reflect on the expectations and promises of the outcome documents of the IAFS and discuss civil societies’ possible contribution to upholding the spirit of India-Africa partnership and achieving the transformational change it envisions. In addition, the meeting provided a forum for bringing the national NGO platforms of Africa and India together to have a dialogue on current challenges and opportunities, and share their learnings and experiences.
China-Africa Trends & 2015 FOCAC: policy brief from the China-Africa Research Initiative (Johns Hopkins)
Namibia: Banks gear up for Chinese clients (The Namibian)
How the internationalisation of China’s currency could offset the global trade slowdown (ODI)
Agribusiness rules lag in agriculture dependent countries (World Bank)
Countries where agriculture is a major economic activity have greater room for improving key regulations that govern the agribusiness sector, a new World Bank report finds. In contrast, countries where agriculture accounts for less than 25 percent of GDP have better regulatory systems that foster agribusiness and ensure quality control and safety of food production, says the first edition of Enabling the Business of Agriculture 2016: Comparing regulatory good practices. The report, released today, examines regulations that affect private enterprise in agribusiness in 40 countries around the world. [Downloads available]
Zim moves to draft GM labelling laws (Southern Times Africa)
Kaberuka named head of AU Peace Fund (New Times)
The volume woes of Indian goods export (Livemint)
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