eeeeeTTTTTrrrrradequityadequityadequityadequityadequityA Newsletter of CUTS AfricaA Newsletter of CUTS AfricaA Newsletter of CUTS AfricaA Newsletter of CUTS AfricaA Newsletter of CUTS Africa

Year 18, No. 1/2019

Africa Moving towards Common MarketA Path to Economic Development

CUTS AfricaEmail: lusaka@cuts.org (Lusaka)

Email: nairobi@cuts.org (Nairobi)Email: accra@cuts.org (Accra)

Website: www.cuts-international.org/ARC

I N T H I S I S S U E

Kenya Face Costly Debt ............... 2

Regional Trade in Local Products .3

Zambia Signs African CFTA .......... 4

Agreement on Abidjan-LagosHighway ......................................5

Enforcing Environmental Pact ......6

Seven years in the making, theContinental Free Trade Area

(CFTA) is almost established. Aminimum of 22 states is needed tobring the trade bloc into force; only21 African states have so far ratifiedthe agreement. Nigeria, thecontinent’s largest economy, is stillconsidering whether to join theclub.

The idea of an African commonmarket has been circulating fordecades and it was adopted at anAfrican Union heads of stateconference in 2012. The CFTA willcreate an African common marketworth US$3tn where 1.2 billionpeople will be able to move freely.

Intra-African tradeTrade among African countries is

costlier than with Asia. According toCarlos Lopes, Professor at theUniversity of Cape Town, it costsmore to transport goods fromMombasa in Kenya to Kigali inRawanda than it costs to move thesame goods from Mombasa to China.

For Lopes the issues of tradefacilitation and logistics can beaddressed if the CFTA is properlyimplemented. However, he warnsthat it will involve a lot ofnegotiation to address variousproblems such as intellectualproperty or rules of origin.

Governments are also concernedabout the potential loss of revenueafter trade tariffs would have beenremoved.

InfrastructurePoor infrastructure on the

continent is a major damper to

trade and investment amongAfrican states. Africa’s internaltrade is the lowest of anycontinent and has longremained disproportionatelydependent on foreign marketsfor its total import and exportvolume.

But who will build themuch needed infrastructure? Accordingto Naguib Sawiris, Executive Chairmanof the Egypt-based OrascomInvestment Holding, it has to be doneby the governments or the World Bankor the new investors like China.

Sawiris said that Africaninfrastructure projects need first to be‘massively’ financed by the World Bank;then the private sector may considerstepping in with ‘equity andconstruction companies’. Investment ininfrastructure projects offers returns inthe long term, a reason why Sawirissays the private is cautious or ‘savvy’with its investments.

But, for Abdulsamad Rabiu,Chairman of BUA Group, the privatesector can assist in that field and shouldpartner with governments and ForeignDirect Investors.

He said that if they are able to linkEast to West Africa which is about6,000kms, it will be quite interestingand help businesses. Think about theHighway 8 linking Lagos to Mombasa.

Doubting NigeriaBut Nigeria still has not signed on.

President Buhari said Nigeria wascareful about signing the CFTA to avoidhurting its young industries.

Rabiu said that his country is waryof the risk of dumping on its marketafter trade barriers have been removed.

Nigeria is a big country with a hugepopulation of over 200 million people,the biggest in Africa. He said that theyimport a lot of goods. If borders areopened, what if some of the smallercountries importing goods from othernations like China dump them inNigeria?

According to President Kagame,they are getting there with Nigeria.For the Rwandan leader, Nigeria isnaturally part of the CFTA. If hefirmly believes that the CFTA is thepath towards Africa’s prosperity, healso believes that it involves somedegree of effort on the part of thestakeholders. He further stated thatpolitical will is everything.

www.scd.en

Tradequity2 Year 18, No.1/2019

Economics and Development

Lungu is expected to grace thesummit which will be held in June inthe tourist capital, Livingstone.

Haabazoka said the Summit willbring together economists,government officials, academicians,scholars from other countries, anduniversity students to discusseconomic issues affecting citizens inZambia and world over.

(LT, 02.02.19)

Kenya Seeks US$1bnKenya is seeking US$1bn through

a syndicated loan over the next onemonth, amid warnings to thegovernment to go slow on contractingnew debt and pressure rising to settlecredit maturing in the first half of theyear.

The new debt, expected from atleast three commercial lenders, isbeing arranged by the Trade andDevelopment Bank and StandardBank. The news of the move by theNational Treasury to seek new fundscame as Cabinet Secretary, HenryRotich, acknowledged the need to cutback on foreign loans to easerepayment concerns. (EAD, 17.02.19)

Oil to Drive Economic GrowthThe World Bank has predicted that

Ghana’s economy will witness stronggrowth in 2019, driven largely by an

expected increase in oil and gasproduction.

Similar to the projection by theGhanaian government, the bankprojects that the value of totaleconomic activity, measured by grossdomestic product (GDP), in 2019 willgrow by 7.6 percent. The expected7.6 percent growth is higher than the2.8 percent growth projected by thebank for sub-Saharan Africa (SSA).

In its 2019 budget statement, theGhanaian government projected theeconomy to grow by 7.4 percent in2019. (DG, 10.03.19)

Chinese Garlic Floods MarketChinese garlic has flooded the

Kenyan market as the Far Eastsuppliers cash in on an acute shortageof the commodity locally. Official dataindicate that Kenya imported 50percent of garlic from China astraders moved to bridge the hugesupply gap.

The Directorate of Horticulturesaid that the volumes that Kenyaproduces in a year, which is about2,000 tonnes, is not enough to meetthe annual demand. Data from theDirectorate indicate that the yieldshave been growing marginally but thevalue has been going up driven by ashortage in the market. (BD, 11.02.19)

Stabilising the KwachaThe Ndola District Chamber of

Commerce and Industry, Zambiasays there is need to find solutions tothe economic challenge the countryis facing and avoid a restrictivemeasure that could negatively impactany FDI potential.

Ndola Chamber President JohnSamaras said although the Kwachahas been stable against other majorcurrencies, the current exchange rateis under pressure and called for quicksolutions.

Samaras said one of solutions tothe problems is to restructure debtpayments and use the central bank todecrease interest rates which mayresult in more foreign income beinggenerated. (LT, 23.03.19)

TransformingMining IndustryProfessor of Engineering at the

University of Mines and Technology(UMaT) – Tarkwa, William Buah hasacknowledged Ghana’s mineralindustry as the foremost source ofrevenue generation, with prestigiousstatus on contributing significantly tonational growth.

He said statistics from the GhanaRevenue Authority (GRA) show thatthe minerals and mining sector is themajor source of direct domesticrevenue mobilised by the Authorityin 2017, with overall total miningfiscal receipt mobilised by GRAincreasing by 31 percent year on year.

Buah contended that the miningindustry’s contribution to nationaldevelopment can be directly linked tonational revenue generation, corporatesocial investment programmes of theindustry, and sustainable alternativelivelihood programmes.

(GNA, 27.02.19)

DiscussiononEconomic IssuesThe Economics Association of

Zambia (EAZ) will hold its first everNational Economics Summit todiscuss economic matters affectingthe country and the world at large in2019.

EAZ President LubindaHaabazoka said that President Edgar

Kenya Face Costly Debt

Interest repayments on Kenyan debt to China and commercial banksalone gobbled up Sh40.6bn in six months during 2018. According to the

National Treasury’s Quarterly Economic and Budgetary Review, about 60percent of all the country’sexternal debt service wasinterest payments to thetwo creditors.

This pushed thecountry’s total external debtservice during this periodto Sh69bn. TheInternational MonetaryFund (IMF) recentlyincreased Kenya’s risk to

debt distress from low to moderate, said interest payments on public debtincreased to almost one-fifth of the country’s revenue, pushing it up to thetop five frontier economies with a higher fraction of interest payment toearnings. (SD, 18.02.19)

www.kenyandigest.com

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News on Trade

Deepening Bilateral RelationsThe current global economic

outlook calls for robust trade linksbetween Ghana and its sister Africancountries for sustained mutual benefit.Eric Odoi-Anim-Ghana’s Ambassadorto Mozambique said that there is needfor closer economic cooperation,including expansion of the trade linksbetween African countries for mutualbenefit. To deepen Ghana’s bilateralrelations with Mozambique, Animcalled for educational exchanges andresearch collaborations betweeninstitutions of higher learning in bothcountries.

He also pledged to accelerate workof the Joint Technical Committee asa precursor and essential buildingblock for the establishment of apermanent joint commission oncooperation between Ghana andMozambique. (B&FT, 29.01.19)

UK-Africa Trade DealThe UK has inked a deal with

countries from Eastern and SouthernAfrica (ESA) for an arrangementunder which it will continue to tradewith the region upon its exit from theEuropean Union.

The UK-ESA Trade ContinuityAgreement is meant to replicate theEPA that the EAC is yet to sign withthe EU, due to disagreements amongmembers on its viability.

The agreement is meant to ensurethat trade between the UK and theAfrican countries will not bedisrupted by Brexit, and will allow theESA signatories to continue duty-free,quota-free exports to Britain.

(EAD, 16.02.19)

UK to Invest in GhanaThe UK’s Minister of State for

Africa, Harriet Baldwin, affirmed theUK government’s commitment toincrease investments in Ghana andensure greater economicharmonisation between two countries.

Recounting the economic gainsand significant strides aimed atformalising and improving theGhanaian economy in the last fewyears, Baldwin, together with some

government officials and businessleaders of the UK, pledged to bringnew investments and increase existingones in Ghana. (DG, 27.02.19)

Kenya Lifts China Fish BanThe Kenyan Department of

Fisheries has lifted a ban on fishimports following a biting shortageafter President Uhuru Kenyatta’sdirective against Chinese catch thathad flooded the market. The ban waslifted in January, barely three monthsafter the restrictions took effect inNovember.

Kenyatta, in ordering the ban, saidit was inappropriate to bring in thefish when local sources could wellsatisfy the demand. Kenya importsapproximately 1.8 million kgs of fishevery month. It produces about135,000 tonnes annual against anannual demand of 500,000 tonnes.Fish imports from China hit Sh1.7bnin 2018. (DN, 18.02.19)

Maritime Trade PerformanceGhana’s export trade business has

recorded an impressive 24.6 percentgrowth in the total volume of goodsshipped to other countries throughthe country’s two seaports.

Data from the Ghana Shippers’Authority (GSA) showed that goodsexported by shippers increased from6.14 million tonnes in 2017 to 7.66million tonnes in 2018, an indication

that aggressive industrialisationpolicies initiated by the governmentto correct the trade imbalances isalready paying off.

The growth was driven by theexportation of goods such as valueadded cocoa products, raw cocoabeans, equipment, cashew nut,manganese and petroleum products.

(GB, 05.03.19)

EUGives Zambia 800,000GrantThe European Union through the

Southern African DevelopmentCommunity (SADC) Trade RelatedFacility Project has given Zambia agrant of 800,000 to implement traderelated interventions in the GoldMining and Agro-based Sectors whichinclude Aquaculture, Dairy,Pineapples and Rice.

Preceding this, the governmentreceived an initial grant of 420,000which was used in setting up theproject management unit andimplementing start up interventionson Sanitary and Phyto-sanitaryStandards, Technical Barriers toTrade, Trade Facilitation andPromotion among others.

Kayula Siame, PermanentSecretary, Ministry of Commercesaid that the 800,000 funding will,therefore, build on the specificactivities which have been earmarkedin the aforementioned interventionareas. (LT, 06.02.19)

Regional Trade in Local Products

Ziad Hamoui, President, Borderless Alliance-Ghana, has advocated regionaltrade in locally made products among West African countries. Addressing

a bilateral workshop betweenborder agencies on tradefacilitation in West Africa atAflao, he said that this is theonly way to improvecommerce in the sub-region,create jobs and reducepoverty.

Hamoui noted that whileintra-trade in Europe was 71percent, Asia 53 percent, andNorth America 48 percent, Africa’s intra-regional trade stood at 15.65 percent,with West Africa ranking third among the continent’s regional communitieswith only 10 percent, and called for change. (GNA, 16.02.19)

www.greatlakesvoice.com

Tradequity4 Year 18, No.1/2019

News on Trade

Kenya�s Trade DeficitKenya’s reliance on the

international market for most of itsgoods continued in the first 10 monthsof 2018, with the country shippingin nearly a trillion shillings worth ofproducts.

During the period, Sh997.1bngoods were imported compared toSh291.8bn exports. This was a rise fromSh989.8bn in imports and Sh281.4 bnin exports during the same period in2017. This means the trade deficit rosefrom Sh708.4bn to Sh715.7bn in2017.

China remained Kenya’s largestsource of imports for machinery andtransport equipment followed byIndia, Saudi Arabia and UAE.

(BD, 01.01.19)

Intra-EAC Trade DwindlingTrade among East African

Community (EAC) states has declinedby 31.4 percent, thanks to non-tariffbarriers and increasing imports fromAsia.

A new report by the UnitedNations Economic Commission forAfrica (UNECA) shows that intra-EAC trade fell to US$2.4bn in 2017,from US$3.5bn in 2013, with Kenyaand Tanzania being blamed for thedecline.

The intra-EAC trade declinereflects a gradual loss ofcompetitiveness among the region’s

manufacturers compared with Asianexporters, as well as increasingprotectionism fuelled by politicaltensions that have engulfed the regionover the past couple of years.

(EAD, 23.03.19)

Ensuring Rail TransportZambia Railways Chief Executive

Officer, Christopher Musonda saidthat Zambia is set to become a moreattractive investment destination if itfully implements the decision to move30 percent of mining and agriculturalproducts from road to rail transport.

Musonda said the decision wasalready backed by a 2018 StatutoryInstrument and just needed effectiveimplementation and capacity buildingin the railway sector.

He said Zambia Railways, incollaboration with regionalstakeholders in the railway sector, wasstepping up measures to ensure railtransport dominated other forms oftransport as this would enhanceZambia’s trade competitiveness,improve the economies of scale andopen up new investmentopportunities. (LT, 28.03.19)

Kenya-Tanzania StandoffTanzania and Kenya are yet to

resolve the standoff over the testingof goods crossing their borders,subjecting traders from both countriesto increased losses. Although the

actual process has to be followed thereis no need of holding goods in amanner that is painful to traders.

Tanzania started subjectingKenyan products to qualityverification, after its Kenyancounterparts did the same for threeconsecutive months. This goes againsta mutual agreement on the standardsof goods traded within the region.

Tanzania products are subjectedto quality verification before enteringKenya despite having a TanzaniaBureau of Standards quality mark.

(EAD, 19.03.19)

Harmonising Trade BalanceForeign Affairs Minister Joseph

Malanji said that Zambia iscommitted to harmonising its tradebalance with China. Malanji said thegovernment wants to ensure that tradeis harmonised in order for bothcountries to have a win-win situationwith regards to trade volumes.

The Minister was speaking duringa bilateral meeting held with AssistantForeign Affairs Minister of thePeople’s Republic of China, ChenXiaodong in Addis Ababa, Ethiopiatoday. He said Zambia wants toensure that it exports more finishedproducts to China and attain a statusof being a middle-income country by2030. (LT, 06.02.19)

Robust Industrial DevelopmentThe Centre for Trade Policy and

Development (CTPD) said that forZambia to maximise benefits fromthe Africa Continental Free TradeArea (AfCFTA), the country will needa robust industrial development drive.

CTPD Executive Director IsaacMwaipopo said the country may notneed to go far in re-inventing the willas there is already a viable planthrough the Multi facility EconomicZones initiative.

Mwaipopo said what the Zambiangovernment now needs to do is toensure that the MFEZ in general andin particular, the Lusaka South Multi-Facility Economic Zone is fullysupported to realise the purpose ofits establishment. (LT, 25.03.19)

Zambia Signs African CFTA

Z ambia has joinedother African countries

to sign the AfCFTA.President Edgar Lungusigned the protocol whichwas witnessed by AfricanUnion Commissioner forTrade and Industry AlbertMuchanga who signed onbehalf of the African Union.

The Head of State saidZambia will now work towards necessary processes required to ratify theagreement. He said Zambia recognised the importance of the agreementwhich is set to liberalise trade of both goods and services for all Africancountries. Zambia witnessed the declaration of the AfCFTA in Kigali, Rwandain 2018. (ZR, 11.02.19)

www.ecow

as.int

Tradequity Year 18, No. 1/2019 5

Regional Round Up

Meeting Single Currency CriteriaGhanaian Vice President,

Mahamudu Bawumia said Ghana isthe most compliant country in the lastassessment of the member states ofthe West African Monetary Zonestatus of compliance aimed atestablishing a single currency by 2020.

He added that the nation emergedthe second-best performer in termsof trade integration and ECOWAStrade-related protocols and lookingforward to sustaining the goodperformance and even performingbetter.

He noted that Ghana had metthree out of four macroeconomicconvergence criteria and attained allthe secondary criteria outlinedtowards the establishment of amonetary union in the sub-region.

(GNA, 11.02.19)

Reviving Zimbabwe�s EconomySouth Africa is considering

financial packages to economically-struggling neighbour, Zimbabwe. Thisemerged following a meeting betweenSouth African President CyrilRamaphosa, and his Zimbabweancounterpart, Emmerson Mnangagwa,in Harare.

According to a communiquéissued at the end of the third sessionof the Bi-National Commission,relevant ministries agreed to consideroptions for expanding the standingfacility arrangement between therespective central banks.

This includes a facility from SouthAfrican private banks to theZimbabwe private sector andguaranteed by the South Africangovernment, with an appropriatecounter-guarantee from theZimbabwe government. (TST, 19.03.19)

Joint Power Project on CardsThe Kenya-Tanzania Power

Interconnection Project has beendivided into several lots, withcontractors on the Tanzanian sidecommitting to set up a 510km 400kvtransmission line and accompanyingsubstations in order to meet the 2020completion deadline.

The project is being implementedby the Tanzania Electric SupplyCompany through a US$258.82mnloan from the African DevelopmentBank and the Japanese InternationalCo-operation Agency.

It involves construction of adouble-circuit, overhead transmissionline from Singida to Isinya in Kenyathrough Babati, Arusha andNamanga. The Power project isgeared towards enabling the twocountries to share electricity easilywhile reducing operational costs ofenergy production. (EAD, 09.02.19)

Reinforce ECOWASBrown CardThe new Chairman of the

Executive Committee (Board) of theGhana National Bureau of theECOWAS Brown Card InsuranceScheme, Victor Obeng-Adiyiah saidthat the Board will invigorate theECOWAS Brown Card InsuranceScheme Protocol and build on thegood works of the former board.

He said the focus of the newExecutive Committee, would be topursue fair and prompt settlement ofcross-border claims, create publicawareness of the relevance of theECOWAS Brown Card InsuranceScheme, handle cross-borderaccident cases effectively andprudently and efficiently managefinances of the bureau.

(BG, 15.02.19)

EAC toResolve EPA IssuesThe Economic Partnership

Agreement (EPA) between theEuropean Union and the EAC was asticky issue during the 20th Heads ofState Summit in Arusha.

Tanzania insisted that it must beallowed more time to send experts toEU headquarters in Brussels, Belgium,to present its grievances. Tanzania hasbeen unhappy about the trade pact,arguing that the agreement will haveserious consequences on its revenuesand the growth of its industries.

Uganda, on the other hand, hasargued that signing the pact asindividual countries wouldcompromise the unity of the region,hence its decision to wait it out.

(EAD, 10.02.19)

COMESACountries Talk VisasThe easy movement of goods and

services from one country to the otheris a critical factor in promoting andboosting business activities and jobcreation. In the recent past, more thanhalf of African countries requiredtravellers who are African to obtain avisa before entry.

In the Common Market forEastern and Southern Africa(COMESA) region, many memberstates have shown commitment toopen border doors to other Africancountries by signing agreements formutual benefits. (ZDM, 08.01.19)

Agreement on Abidjan-Lagos Highway

The African Development Bank and the Economic Community of WestAfrican States (ECOWAS) Commission signed an agreement for a study

into a 1,000 km highway linking Cote d’Ivoire’s commercial capital Abidjan, toLagos in Nigeria, marking a new step in building regional integration and trade.

The agreement signed for a studyon the technical, implementationand operational aspects of theproject, comes nearly five years afterthe presidents of Côte d’Ivoire,Ghana, Togo, Benin and Nigeria,signed a treaty on the establishmentof the highway in March 2014.

The Bank has approved a financing package of US$12.6mn to financepart of the study for project and mobilised a 9.1mn grant from the EUCommission, bringing the total financing for this important study, toUS$22.7mn. (B&FT, 07.02.19)

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Environment/Consumer IssuesAirlines� Cost on the Rise

The recent fall in the value of theGhanaian cedi has raised the cost ofoperations for airlines and put theirmargins under pressure – in a dollar-dominated industry that requiresoperators to pay for services renderedin dollars or at the benchmark dollarrate. The local currency hasdepreciated by some 3.5 percentagainst the US dollar.

This development, coupled withthe rise in the dollar-denominated JetA1 fuel (aviation fuel), has created achallenging situation for domestic andregional airlines – which have to payfor fuel, maintenance, and leasingcosts among others in dollars.

This contrasts with the -4.1 percent decrease in the price of aviationfuel recorded a year ago.

(B&FT, 18.02.19)

Lobby on Cheap LoansConsumer Federation of Kenya

(Cofek) plans to appeal the recentruling declaring the law on interestrate cap unconstitutional. Theconsumer lobby has filed a notice ofappeal challenging the ruling thatdeclared some sections of the Banking(Amendment) Act that put a ceilingon the price of loans null and void.

The court gave Parliament a yearto iron out the unconstitutionality in

the law, setting the ground for a fierceeconomic battle betweenprotectionists and liberals in thecountry. (SD, 19.03.19)

Rising Water-Energy DemandWe are living in a world, which is

actively seeking for alternative energysolutions in order to lessendependence on non-renewable energy.Current global trends suggest thatmany uncertainties remain about theuse of conventional energy in thefuture, considering its costs and itslong-term effects on the environment.

The 2018-2030 NationalPopulation Policy (NPP) projects thatZambia’s population is expected toreach a staggering 24 million by 2030.This also means that its demand forenergy and other essential servicessuch as water and sanitation isexpected to triple just as much.

(ZDM, 30.03.19)

Climate Change FundsThe World Bank and the African

Development Bank (AfDB) havepledged US$22.5mn to tackle climatechange in Africa over the next fiveyears. The funding announced duringUnited Nations EnvironmentAssembly (UNEA-4) Summit inNairobi, is expected to help Africancountries, including Kenya, slow

down the negative effects of climatechange and pollution.

The bulk of the funds will be usedfor wildlife conservation, the waragainst poaching, environmentalprotection, forests’ conservations aswell as climate change adaptations andmitigation campaigns in Africa andKenya. (SD, 18.03.19)

Consumer Food SafetyThe Government of Kenya has

ordered all Nuteez peanut butter offthe market after samples testedpositive for dangerous levels ofaflatoxin. Director of Public HealthDr Kepha Ombacho said the brandwould only be restocked if it is clearedafter more tests.

Certificate of laboratory analysishas shown the butter is contaminatedwith aflatoxin above the maximumlimit provided in the nationalstandards.

Aflatoxin is a chemical producedby naturally occurring fungus in soil,decaying vegetation and grains. Whenconsumed, it can cause seriousdamage to the kidneys and liver,including causing cancer and death.

(ST, 01.02.19)

Zambia NodsBan of Plastic BagsThe Zambia Development Agency

(ZDA) believes the resolution to banthe use of disposable plastic bags willstimulate the manufacture of durablealternatives that are environmentally-sustainable.

ZDA Director General PerryMapani said that the Agency expectsthe ban to increase value additionwithin the timber industry as a resultof a growth in paper-based packaging.The regulation is further expected toencourage innovation in thehandicraft sub-sector aimed atproducing attractive, fashionable, yetdurable carrier bags using localbiodegradable materials while creatingmore jobs.

He explained that theopportunities created by the newregulation will establish a vibrant androbust recycling sub-sector.

(LT, 11.02.19)

Enforcing Environmental Pact

At the end of the five-day UN Environment Assembly in Nairobi,representatives of some 170 countries prepared a blueprint for change in

which they undertook to deliver a new model of development that cares forthe environment.

President Uhuru Kenyatta used the platform to make a commitment toincrease Kenya’s forest cover from the current seven percent to 10 percent.This is vital. Kenya has suffered serious environmental challenges resultingfrom poor resource management. (DN, 16.03.19)

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Special Feature

Dialogue with WTO and UNFCCC negotiatorsInternational trade and climate change negotiations play an important role in framing

the policy space available to governments in developing agro-processing despite climatechange. In this session, East African negotiators to the World Trade Organization(WTO) and United Nations Framework Convention on Climate Change (UNFCCC)were engaged in an interactive questions and answers session with participants aboutthe prospects of negotiations in their respective fora, and their implications for sustainableagro-processing value chains in the region.

Bramah Kaleve, SDT highlighted negotiations on agriculture as prioritised byKenya. Major areas included market access, export competition and domestic support.According to Kaleve, the draft modalities on agriculture are also an area of interest for Kenya under WTO negotiations.He further went ahead and gave a breakdown of the Green, Blue and Amber Box.

On his part, Michael Okumu, UNFCCC negotiator, took NRG members through the modalities under theKoronivia Joint Work on Agriculture and on the discussions about its operations under the Subsidiary Body forImplementation (SBI). He also updated members on the upcoming negotiations under SBI in June 2019.

Regional Advocacy: EACPSDS 2018-2022The EAC is currently embarking on the development of the Private Sector Development Strategy (PSDS) 2018-

2022, which will aim to create a conducive business environment that facilitates private sector competitiveness forincreased investment, productivity and trade. Since the last PSDS, important regional developments have taken placeand should be taken into account, such as the EAC Climate Change Policy as well as the EAC Industrialisation Policy

which prioritises agro-processing.The EAC PSDS process will

involve national stakeholderconsultations where the PACTEAC2 project could provide inputsto ensure the new PSDScontributes to climate-aware, trade-driven and food security-enhancing

agro-processing. NRG at its 6th meeting in August 2018 had adopted a general recommendation in this regard.Building on that, this session’s objective was to provide an update on the expected elements of the PSDS, and giverecommendations for ensuring that it contributes to sustainable agro-processing value chains in the region.

BeyondPACTEAC2PACT EAC had an impact especially from a trade facilitation perspective. It has capacity built NRG members in

understanding impact and implication of trade policy. However, moving forward and if there will be PACT EAC3then CUTS should focus on building the capacity of private sector on understanding the impacts of trade agreementson business. More expectations on a possible PACT EAC3 included the need to incorporate gender dimensions intrade especially at the cross-border point; and the need to involve everyone along the value chain, including countygovernments since agriculture is a devolved function in Kenya.

In the event of no extension, the partnerships that have been built through NRG and other forums should bestrengthened in order to carry on with PACT EAC2 objectives and achievements to date.

Sustainable Agro-processing Value Chains in East AfricaCUTS in collaboration with the Swedish International Development Cooperation Agency (Sida) andseveral regional partners, has been implementing a project entitled �Promoting Agriculture, Climateand Trade linkages in the East African Community� Phase 2" (PACT EAC2). The project buildscapacities of East Africans towards a climate-aware, trade-driven and food security-enhancingagro-processing industry.The project convened its seventh National Reference Group meeting (NRG) on March 12, 2019

to discuss the progress and pertinent emerging issues. Under the theme �Sustainable Agro-processing Value Chains in the EAC: Strengthening Regional Coherence�, the NRG meetingbrought together stakeholders from government, civil society, farmers� associations, businesscommunity, academia, and agro-processors among others.

Sources

B&FT: Business and Financial Times; BD: Business Daily; BW: BusiWeek; CBN: Citi Business News; CNR: Citi Newsroom;DG: Daily Graphic; EAD: East African Daily; GB: Graphic Business; GNA: Ghana News Agency; ND: Nation Daily;SD: Standard Daily; ST: Star Newspaper

Tradequity newsletter: Composed by CUTS International Lusaka, Plot 298 Ngwerere Road, Roma, Lusaka, Zambia, Ph: +260-211-294892, Tele Fax: +260-211-294 892, Office Mobile: +260-955-624 874, E-mail: lusaka@cuts.org, CUTS Nairobi, Yaya Court 2nd Floor, No.5, RingRoad Kilimani off Argwings Kodhek Road, PO Box 8188, 00200, Nairobi, Kenya, Ph: +254.20.3862149, 3862150, 20.2329112, Fax: +254.20.3862149,Email: nairobi@cuts.org, and CUTS Accra, 30, Ground Floor, Oroko Avenue, Near Central View Hotel & ATTC, Kokomlemle, Accra, Ghana,Ph: +233.30.224.5652, Email: accra@cuts.org. Published by CUTS International, Head Office: D-217, Bhaskar Marg, Bani Park, Jaipur302016, India, Ph: 91.141.2282821, Fax: 91.141.2282485, E-mail: cuts@cuts.org, Web Site: www.cuts-international.orgCUTS International is a not-for-profit organisation and the listing of paid news/articles is for informative and educative purposes only.

Publications

Our Twitter Handle (@cutsafrica)@Cutsafrica March 22: Water is #SDGs. Water is auniversal #humanright. Let’s protect our water toprotect our planet. #WorldWaterDay

@CUTS_Nairobi March 14: In celebration of#WorldConsumerRightsDay, read as our colleague@mulwamartin12 breaks it down on how tosafeguard #consumers interests in the #digital eraat https://www.standardmedia.co.ke/article/2001316651/what-to-do-to-ensure-that-even-in-the-digital-era-customer-is-right

@CUTS_Nairobi March 12: Today we have theNational Reference Group to discuss effective ways onpromoting sustainable agro-processing value chains inthe EAC #climateaware, #tradedriven #foodsecurity

@Cuts_Accra March 08: CUTS Accra joins the restof the world to celebrate the gallant #women all overthe #world. We #celebrate and #appreciate you foryour #commitment, #selflessness and #hardwork.#Ayekooooo!!!!!! #InternationalWomensDay

@Cutsafrica February 07: #Nigeria set to have#FederalCompetitionandConsumerProtectionAct 2019. It llpromote #EconomicEfficiency, maintain #CompetitiveMarket,protect interest and welfare of consumers, prohibit #Restrictive or#UnfairBusinessPractices

@Cutsafrica February 05: Labour-intensive export-ledindustrialisation worked for #China, but #Africa must come upwith its own strategies to reduce #poverty

@Cutsafrica January 30: #India, #SouthAfrica seal 3-year strategicplan to deepen ties

@CUTS_Nairobi Jan 28: The EAC Summit to be held inFebruary 2019 is expected to discuss the #EPA issue. The pactrequires all EAC countries to sign and ratify but only Kenya hasdone both with Rwanda signing.

@CUTS_Nairobi Jan 3: Take a read of @CollinsOwegi’s, (ourprogramme officer) article on perks and pitfalls of mobile moneylending at https://www.businessdailyafrica.com/analysis/columnists/pitfalls-of-mobile-money-lending/4259356-4919018-t9og0y/index.html

Understanding the Impact of Zambia’sGrowing Debt on Different Stakeholders

Zambia’s debt situation has negative implications on business owners and consumersmaking the cost of doing business and the cost of living very high. In this environment

the need to influence the public and policy makers to understand the consequences of debtand promote value for money policies through well evidenced research is critical.

Against this background CUTS sought to raise awareness about the gaps withinZambia’s public financial management system as it relates to debt and providerecommendations on how to address them. In an effort to do so CUTS worked with theDaiy Mail and News Diggers to produce a weekly column in each outlet. The series ofcolumns focused on debt and the consequences of growing debt in Zambia. Timed to begin alongside the budgetthey provided a platform to raise awareness of the impacts of Government policy amongst the public and supportinfluencing of the Government to tackle the growing debt problem. This brief contains the six articles that werepublished from September 25 to November 16, 2018.

The growing cost of servicing the increasing levels of debt are beginning to squeeze out domestic spending andindications are government arrears are beginning to be a drag on the economy. In this environment, the need toinfluence the public and policy makers to understand the consequences of debt and promote value for moneypolicies through well evidenced research is critical.

https://cuts-lusaka.org/pdf/Understanding_the_Impact_of_Zambias_Growing_Debt_on_Different_Stakeholders.pdf