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tralac’s Daily News selection
The selection: Thursday, 25 February 2016
Namibia's 2016-2017 budget takes place today: PWC preview (The Namibian)
Rescheduled: The 17th Ordinary EAC Heads of State Summit will now take place on 2 March in Arusha while the East African Business Leaders’ Summit will take place on 1 March.
Related - tweets, multimedia on cross-border movement policy issues:
@MINEACRwanda: #EAC Heads of State expected to launch the new International East African e-passport during their meeting 2nd March, 2016 in Arusha,Tanzania
@Rwandamigration: The open visa policy at the regional (#EAC) level has led to over 12,000 people getting permits free of charge
@Rwandamigration: #Rwanda, #Kenya and #Uganda also allow travel between their countries with national ID cards, which has increased cross-border trade by 50%
Africa Openness Index Report 2016: interview with AfDB's Director of Regional Integration and Trade (video, CNBCAfrica)
South Africa: 2016 Budget Speech documentation (National Treasury)
During the first three quarters of 2015, the current account deficit narrowed to 4% of GDP from 5.4% in 2014, largely due to an improved trade balance stemming from higher export receipts. The narrowing of the trade deficit in 2015 is expected to be maintained over the forecast period, resulting in an improvement in the current account relative to 2015 MTBPS projections. A further reduction in the current account deficit requires higher domestic savings. Over time, fiscal consolidation and structural reforms should contribute to improved savings. The terms of trade deteriorated by 0.1% over the first three quarters of 2015 compared to the same period in 2014, as falling oil prices offset declines in prices for coal, iron ore, gold and platinum. As oil prices rise gradually during 2016, the terms of trade are expected to weaken, before stabilising over the medium term. [SA risks ‘kleptocracy’ status - Gordhan (IOL)]
African economic and trade matters - highlighted decisions from the Executive Council's 28th Ordinary Session, 23-28 January (AU):
On AGOA: Requests the Commission to conduct a continent-wide study to investigate the causes of shortcomings in the African Growth and Opportunity Act process and make the most of the experiences of countries that have recorded better economic and commercial performance in this process; Also requests the Commission to remain engaged with the United States to ensure that there is no erosion of preferences available to Member States under AGOA; Urges Member States to set up their national AGOA response strategies to take better advantage of the economic and commercial potential of AGOA;
On FOCAC: Requests the Commission to capitalize on the commitment of China within the Forum on China-Africa Cooperation and the Memorandum of Understanding signed with China for industrialization;
On EPAs: Urges Member States and negotiating regions to forward their signed Economic Partnerships Agreement to the Commission which in collaboration with the United Nations Economic Commission for Africa are mandated to analysing them and ensuring that they are compatible with Africa’s development as framed in Agenda 2063;
Also requests the Commission to urgently organize a Ministerial Roundtable on current economic, financial, agricultural and humanitarian challenges facing the continent with a view to addressing these challenges and designing an African forward-looking response aimed to build long-term resilience;
Further requests the Commission in collaboration with Member States to fast-track the implementation of flagship programmes such as the Grand Inga Dam Project to unleash the economic potential of the continent;
Related: Continental Free Trade Area Negotiating Forum: update (AU), Tear down Africa's trade walls (The Economist), Africa should spur pace to integrate development (editorial comment, Ethiopian Herald)
Nigeria: IMF completes 2016 Article IV Mission (IMF)
Growth is projected to improve slightly to 3.2% in 2016 but could rebound to 4.9% in 2017, supported by an appropriate policy package that would, for example, enable priority infrastructure investments. The general government deficit is projected to widen somewhat before improving in 2017, while the external current account deficit is likely to remain flat at 2.3% of GDP. Growth in credit to the private sector is projected to recover from the slump in 2015, aiding the increase in activity. Key risks to the outlook include lower-than-budgeted oil prices, shortfalls in non-oil revenues, a further deterioration in finances of state and local Governments, and a resurgence in security concerns.
UK-Guinea Trade and Investment Forum: opening speech by James Duddridge, Minister for Africa (UK)
Improving the perspective for regional trade and investment in West Africa: the key to food security, economic development and stability in the region (ASCL)
The overall objective of the scoping study is to provide a comprehensive picture of The Netherlands’ Government ongoing cooperation with West Africa and the perspective in terms of policy options for strengthening its effectiveness and coherence by giving more emphasis to the promotion of intraregional trade and investment in West Africa. In order to identify knowledge gaps and needs, and to generate meaningful input in support of this scoping study, the ASCL, LEI and ECDPM organize a scoping conference, bringing together representatives from the consortium partners, The Netherlands’ Ministry of Foreign Affairs, the Food & Business Knowledge Platform as well as a selected number of other experts from diverse backgrounds. [Download the conference report]
Managing food security risks and intra-regional trade in Africa (FAO)
Key messages of the brief: Increased intra-regional trade in food staples can play a significant role in reducing domestic food price volatility. Significant efforts need to be made to increase the confidence of governments to place greater reliance on market based instruments at the same time as ensuring that food security objectives are met, and to convince private sector stakeholders that such change is credible and will be sustained.
Starting today, in Gaborone: SADC convenes meeting to assess El Nino impact
The two-day meeting, being jointly convened by SADC, the FAO and the WFP is expected to be attended by some 165 delegates from the agriculture, environment, food and nutrition, disaster management, climate change, water, health, planning and financial sectors from the 15 SADC member states. Other participants would include representatives from the humanitarian, development and donor communities.
The Great Lakes Private Sector Investment Conference concludes today: Ban highlights private-sector investment for potential to ‘transform’ Africa’s Great Lakes region (UN)
Turning to Government leaders of governments of the Great Lakes region, Mr Ban highlighted that by lending their support to the conference, they were showing their “resolve to improve the investment climate.” Governments had also committed to enact policies to help expand the domestic private sector, and to make it possible for micro-, small- and medium-sized enterprises to grow. “As you do so, I encourage you to create an environment that ensures business operations and investments are responsible and sustainable, and predictable,” Mr. Ban stressed. “We know that this is an essential ingredient to long-term economic growth and building trust in societies.” Speaking to the African private-sector leaders, Mr. Ban said that the people of the Great Lakes region count them – business leaders, entrepreneurs and investors – to fully contribute to the goal of transforming the region.
South Africa accepts protocol amending the TRIPS Agreement (WTO)
South Africa deposited its instrument of acceptance for the 2005 protocol amending the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) on 23 February 2016, becoming the fourth WTO member to do so in 2016. Thailand (on 28 January), Mali (on 20 January) and Lesotho (on 4 January) are the other three members that have accepted the amendment this year. The protocol will enter into force once two-thirds of the WTO membership has formally accepted it. South Africa’s acceptance marks another step towards the threshold.
WTO updates: Roberto Azevêdo: report to Trade Negotiations Committee (WTO), Rorden Wilkinson: 'The WTO, Nairobi and the 2030 Agenda' (BioRes), US prevails in WTO dispute challenging India’s discrimination against US solar exports (USTR)
Zimbabwe: Pre-shipment inspection to push prices upwards (Financial Gazette)
Kingston Khanyile, chief executive officer at Mtilikwe Financial Services, said while the SI is meant to mitigate dumping of substandard goods, the costs arising from this exercise will simply be passed onto the final consumer. “It’s a commendable move by government. The cost is minimal and there will be a marginal increase of prices but that will not stop the demand for imports,” he said.
Namibia Enterprise Surveys: key findings (World Bank Blogs)
The Namibia Enterprise Surveys consisted of 580 interviews with firms across three regions and three business sectors – manufacturing, retail, and other services. So what are some key highlights from the surveys? In 2013, it took a firm in Namibia about eight days to clear exports through customs, which is considerably more than the two days it took in 2006. Despite this increase, the average time to clear direct exports through customs is still about the same as in the upper middle income countries (8 days) and lower than the Sub-Saharan Africa regional average (10 days). Moreover, there is a wide variation across firm size.
ECOSOC debate: 'Partnership approaches: how to ensure accountability, coherence and evaluation of impact?' (UN)
Mr Mayaki (NEPAD) said after the creation of the African Union and NEPAD, in 2000, the regional dimension of partnerships had strengthened, common positions within the African context had been defined, and foreign direct investment (FDI) had increased. The coming decade would be uncertain, but it would be characterized by increased “regionality” and localism that would affect the State’s role. Decisions taken from the top-down would be increasingly contested by civil society and the private sector.
Kenya: Mobile cash transfers hit record Sh2.8trn on bill payments growth (Business Daily)
Kenya gets greenlight to export labour to Israel (Daily Nation)
Saudi Arabia to lift ban on Ugandan beef, fruits (Daily Monitor)
Mozambique: US EXIM Bank president visits (Club of Mozambique)
Zim-India trade increases by 200% (NewsDay)
Trade finance in Africa – where are we headed? An interview with Ikenna Egbukole, FirstBank of Nigeria
Algeria suspends free trade exchange agreements with EU (Africa News)
The New Development Bank has launched its website
African industrialisation investigation and workshop 2016: probing China’s role in Africa following FOCAC6 (WITS Journalism)
Civil society from the BRICS: emerging roles in the new international development landscape (IDS)
Sendai takes root in Africa (UNSIDR)
IMF Note on Global Prospects and Policy Challenges: prepared for the G20 Finance Ministers and Central Bank Governors' Meetings (IMF)
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