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

Year 15, No. 2/2016

Quest for a Pan-African Investment CodePromoting Sustainable Development

The year 2015 was a crucial one for Africa regarding the negotiation of the firstcontinent-wide investment agreement: the Pan-African Investment Code (PAIC).

Although this legal instrument – presented in the form of a treaty – is not yet officiallyadopted, but it reflects an African consensus on shaping of international investmentlaw.

The main objective of the PAIC is to foster coherence and consistency with respectto the rules and principles that will govern investment protection, promotion andfacilitation on the African continent. As such, it has the potential to become a sustainablesolution to solve the puzzle of International Investment Agreements (IIAs) in Africa.

African countries adopted the Bilateral Investment Treaties (BITs) between themid-90s and the early 2000s, mainly from capital exporting countries like Europe.Currently, African countries have signed around 870 BITs or IIAs, which correspond to about a third of all IIAs signed worldwide.

– This cover story has been abridged from an article by Makane Mbengue published inwww.ictsd.org, on June 21, 2016

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

ICT to Boost Economy ........................ 2

EAC States Review CET ....................... 3

Investor-friendly Policies ..................... 4

Adopting Flexible Regime ................... 5

No Tariff Increment ............................ 6

Building a Coalition for AfricanCSOs on Policy Advocacy ................... 7

The AU member states need to decideupon the issue with their relevantstakeholders.

The elaboration of the PAIC hasallowed African countries to deliberate ontheir vision of IIAs and to be aware of thebroader implications of foreign investmentas a tool for sustainable development.

The PAIC thus endows Africa with avoice in the international debate on thefuture and reform of the investmentregime. Furthermore, its strong emphasison SDGs bears the potential for the PAICto become a model for innovation outsideAfrica.

Investment Facilitation inAfricaAfrican Ministers responsible for

continental integration decided to workon PAIC in 2008. Its declared aim wasto draw greater investment flows to thecontinent and to facilitate intra-Africancross-border investment. A group ofindependent African experts –representatives from various AfricanRegional Economic Communities(RECs), academia, and the private sector– has drafted the text, proceeding in twophases. In the first phase, the groupcompiled African best practices in thefield and elaborated a first draft. Thesecond and decisive phase, which tookplace throughout 2015, consisted infinalising the PAIC text at the expert level.

The PAIC, has the potential to solvethe problems of legal uncertainty andfragmentation. The issue of therelationship between the PAIC and otherinvestment agreements is addressed inthe draft text of the PAIC, which clarifiesthat: “Member States might agree thatin case of a conflict between this Codeand any intra-African BIT, investmentchapter in any intra-African tradeagreement, or regional investmentarrangements, this Code shall takeprecedence”.

�Africanisation� of Investment LawThe PAIC reflects the trend towards

the ‘Africanisation’ of internationalinvestment law in the current context ofreform of the international investmentregime.

The PAIC reformulates traditionalinvestment treaty language, introduces newprovisions, such as unprecedentedprovisions on due diligence and obligationsfor investors in relation to human rights;corporate social responsibility; use ofnatural resources; and land-grabbing.Further, it omits certain investmentstandards completely.

The PAIC is intended to be a balancedinstrument, meaning that it seeks to balancebetween investment protection and non-investment related public interests, assuggested by the innovative UnitedNations Conference on Trade andDevelopment (UNCTAD) InvestmentPolicy Framework on SustainableDevelopment. Consequently, sustainabledevelopment plays a prominent rolethroughout the draft text of the PAIC.

Moreover, PAIC might end up as abinding instrument applicable in all (AU)member states, or it might be adopted as amodel treaty serving as a guide forindividual member states’ IIA negotiations.

www.ictsd.org

Tradequity2 Year 15, No.2/2016

Economics and Development

Ayensu Factory BouncesBackThe Ayensu Starch Company

Limited (ASCo) of Ghana that becamedefunct in 2006, two years after it hadbeen inaugurated has been reactivated tocreate jobs and boost agriculture andindustry. The factory was re-inauguratedagain at Awutu Bawjiase by the HannaSerwaa Tetteh, Minister of Foreign Affairsof Ghana.

After the first and initial factoryinauguration, the factory faced challenges,such as the delay in the payment of outgrowers, as well as the unattractive priceof cassava (starch), which did notencourage farmers to go into itscultivation.

In view of these challenges, the factoryincurred huge costs in production, whichinformed a partnership with the relevantstakeholders through the Ministry ofTrade and Industry (Ghana).

(DG, 27.06.16)

Kenya�s Improves in AIDIInformation Communication and

Technology (ICT) and transport upgradeshave helped to raise Kenya’s (Nairobi)infrastructure development ranking inAfrica despite dismal performance by eastAfrica as a bloc. The ‘Africa InfrastructureDevelopment Index (AIDI) 2016’ by theAfrican Development Bank (AfDB) listsKenya among top winners over threeyears having gained five positions basedon the capability of ICT andtransportation.

ICT has, increasingly, become animportant enabler of Kenya’s economicgrowth. Further, the government hascontinued to focus on the implementationof e-government to enhance the uptakeof ICT in its operations for effective andefficient delivery of services to its citizens.

(BD, 17.06.16)

ZACCI Launches ToolkitZambia Chambers of Commerce and

Industry (ZACCI) has launched abusiness toolkit aimed at addressing theskills and knowledge gap among Micro,Small and Medium Enterprises (MSME).ZACCI President Geoffrey Sakulanda saidthe business toolkit will also enhance theperformance of small-scale businesses.

Sakulanda said the development is inview of low skills and knowledge levelsamong MSMEs, who if equipped withthe right skills can contribute significantlyto the economy. He explained that thetoolkit is a comprehensive and practicalcompendium for entrepreneurs and istailored for the Zambian environment.The toolkit covers, among others,introduction to entrepreneurship,business planning, financial managementand sales and marketing. (ZDM, 27.06.16)

Creating New Jobs in ZambiaPresident of Zambia Lungu said that

the declaration of new districts hasbrought about massive infrastructuredevelopment and created jobs for citizens.After touring projects in Shibuyunji

district in Zambia, President Lungu saidthat creation of new districts by thePatriotic Front administration has resultedin the construction of more schools, clinicsand roads, such as Mongu-Kalobo road,thereby improving the living standards ofthe people.

The President said that the Zambiangovernment will soon start compensating40 families of Shibuyunji, who weredisplaced as a result of the infrastructuredevelopment projects taking place in thedistrict. (ZDM, 17.06.16)

Aid to Foster AgribusinessThe leading credit guarantee Exim

guaranty Ghana Ltd. and the UnitedStates Agency for InternationalDevelopment-Financing GhanaianAgriculture Project (USAID-FinGAP) arecollaborating to provide credit guarantees,which are expected to increase financingfor agricultural development andinnovation in Ghana.

This collaboration was born out of thefact that agribusinesses seeking financingto meet their business needs lack the fixedasset collateral usually demanded by thefinancial institutions.

Eximguaranty is thereforecollaborating with FinGAP to supportSmall and Medium including LargeEnterprises with viable business venturesin maize, rice and soy value chain, throughprovision of credit guarantee in favour offinancial institutions offering credit.

(B&FT, 27.06.16)

New Industrial Park in ZambiaA Chinese company Zhongyang is to

set up a trading estate in Lusaka’s heavyindustrial area to promote investmentsexclusively from Southeast China.Zhongyang Construction Group andZambia have signed an agreement forestablishment of what will be calledJiangxi Industrial Park, which will be aplatform for investors from China’s JiangxiProvince.

The group is among six nationalpremium construction enterprises withdiversified businesses in the Chineseprovince. In 2016, Government andTianjin Federation of Industry andCommerce launched the One Belt OneRoad industrial parks in Lusaka andChisamba with a US$1bn investment tocreate national wealth and jobopportunities. (ZDM, 28.06.16)

ICT to Boost Economy

Deputy Communications Minister, Felix Ofosu-Kwakye of Ghana has emphasisedover the government’s commitment to scale up investments in the ICT industry

to benefit from the sector’s hugepotential as a global dominantemployer.

According to the Minister, thedevelopment and expansion of thenational broadband infrastructure wason course and had connected 120communities along the Easterncorridor to the system to boost faster,easier voice and data quality toenhance business transactions andICT education.

He added that various strategieshave also been taken to stopcybercrime in the country noting that

other measures were also being taken to ensure that children do not get easy access toprohibited sites. (B&FT, 30.04.16)

www.soschildrensvillages.org.uk

Tradequity Year 15, No. 2/2016 3

News on Trade

Bilateral Trade to Hit US$2.4bnThe US is hopeful of doubling its

bilateral trade with the Ghana from thecurrent US$1.2bn within the followingthree years as it seeks to push job-creationas well as unearth global trade potentials.

In 2015, the bilateral trade was aboutUS$1.2bn. Ghana Ambassador Jacksonexpressed that the US would like toensure that bilateral trade hits US$2.4bnin the coming years.

He mentioned that Ghanaiancompanies need to focus more on theexport sector to the US market. There area number of US companies interested indealing with some Ghanaian companiesin the textile area. He also indicated thatinvestments from the US government willbe focussing strongly on sectors like health,agriculture, education and democraticgovernance, which will be key to boostthe economy’s growth. (BF&T, 19.04.16)

Zambia Ratifies Trade PactZambia has ratified the World Trade

Organisation (WTO) agreement on tradefacilitation, which will assist the Zambiangovernment put in place reforms that willreduce the cost of doing business. Theimplementation of the agreement is aimedat putting in place interventions inZambia’s regulatory trade environment byproviding support infrastructure andcapacity building for stakeholders.

Trade facilitation reforms will improvetrade logistics and facilitate ‘Ease of DoingBusiness’ by embarking on modernisingthe manner in which trade is conducted.Implementation of modernised tradeecosystems will ensure efficiency andeffectiveness in trade system, thusreducing the cost of doing business andincreasing foreign investment.

(ZDM, 21.06.16)

ZMM Trade Triangle VitalDeeper regional integration is a must

in the Zambia-Malawi-Mozambique(ZMM) trade triangle, which willpromote inclusive growth among the threecountries, indicates African DevelopmentBank Trade Department Director MoonoMupotola.

She said the three countries have ahuge tourism potential and could benefitfrom easing barriers to trade andinvestment in targeted sectors, putting inplace measures to facilitate the movementof tourist and tour operators across thethree countries.

Mupotola said that improved corridorinfrastructure and trade facilitationarrangements also provided a greatincentive for expanding business in theZMM growth triangle initiative.

She also stressed the need to leverageon tripartite arrangements, which couldgive access to an even bigger market ofaround 600 million people. (DN, 03.06.16)

Malawi Eyes Zambian MaizeThree-million Malawians are

expected to be hit with hunger in 2016following poor rainfall during the2015/16 farming season. Farmers’ Unionof Malawi’s (FUM’s) Director of Research,Policy and Partnership, CandidaNakhumwa, said Malawi was comingfrom a poor season previous year where itwas hit by adverse weather conditions asa result of the El Nino.

She noted that FUM wanted Zambiato help Malawi in a formal manner wherethe two countries could trade in Maize tocushion the hunger in that country. Sheobserved that Malawi was lucky thatZambia had surplus maize in 2016 and itwould be prudent that the two countrieshelped each other by engaging in formaltrade of the staple food. (LT, 23.05.16)

Protecting Cashew TradeThe Trade and Industry Minister of

Ghana, Ekwow Spio-Garbrah stated thatthe government of Ghana is weighingstrategic options to streamline andprotect the cashew industry fromcollapsing, and for that reason, banningforeigners from buying and exportingraw cashew nuts could be a possiblechoice.

He said: “Though no firm decisionhas been taken yet, there are so manyregulations on the table that governmentand relevant stakeholders are reflectingon to put the industry on track –including a ban on foreigners fromtrading in cashew.

In addition, he stated, “Foreigners arelargely involved in the cashew trade(buying and export); they also playintermediary role between farmers andprocessors”. (B&FT, 28.04.16)

EACCompetition AuthorityThe East African Legislative

Assembly approved US$587,565 for theCompetition authority. The authorityhas jurisdiction in all the five partnerstates, while South Sudan will be coveredat a later stage, as it is not fully integratedinto the EAC.

East African Business Councileconomist Adrian Njau said as cross-border trade grows, a regionalcompetition law becomes crucial tocheck unfair trade practices.

The East African CommunityCompetition Authority (EACCA) willbe operational from July 2016 with amandate to curb unfair trade practicesin the region and protect consumers fromsubstandard goods. The authority willrestrict trade practices and transactionsthat unduly limit fair competition.

(TEA, 18.06.16)

EAC States Review CET

The East African has learnt that the proposed review of the EACthree-band tariff could see excessive protection granted to

sensitive goods, such as maize, rice, wheat, textiles and sugarabolished and a uniform duty applied to the products.

Other key issues under discussion include a proposal toreview the existing CET rates and the basket of sensitive goods witha view to dropping some of them from the list and a proposal onwhether or not an additional fourth tariff band should beintroduced to the EAC’s three band CET. EAC’s current CET of zero percent on raw materials and capital goods, 10 percent onintermediate goods and 25 percent on finished goods were agreed upon by the member states on June 23, 2003. (TEA, 25.06.16)

www.theeastafrican.co.ke

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News on Trade

Zambia-Turkey MoUTurkish Ministry of Foreign Affairs-

African Division, Director General HulusKilic indicated that his government andthe Republic of Zambia should finaliseall memorandums of understanding(MosU) and legislation that will increasecooperation and trade between Zambiaand Turkey countries. The trade betweenthe two countries stands at US$32mn.

General Hulus Kilic stated this duringa consultative meeting that he held withthe Zambian Ambassador to TurkeyMiriam Mulenga in Ankara.

He also said the two countries enjoygood relations that could be furtherstrengthened by signing of agreementsthat would stimulate increasedcooperation in various sectors.

(ZDM, 03.05.16)

UK-ATI Deal for ExportsMultinationals of UK will find it easier

to boost their exports to Kenya after theUK Export Finance (UKEF), an exportcredit agency, signed a deal with theAfrican Trade Insurance (ATI). Theagreement will see the UKEF, whichoffers payment guarantees to UKexporters, gain access to information aboutupcoming opportunities for its clients aswell as local knowledge of firms andprojects.

ATI will also provide a platform toraise awareness among project sponsorsand investors in African countries aboutthe UKEF support available to Kenyanimporters of UK goods and services.

(BD, 05.04.16)

Exploit Kenyan MarketsZambia needs to increase trade with

Kenya, as that country offers numerousbusiness opportunities, which cancontribute to mutual economic growth,Stanbic Bank Business Banking Head saidthat Kenya and the entire East Africanmarket provide ideal opportunities toZambian businesses that are prepared tomake long-term business commitments.

Opportunities exist in exploitinglinkages into East Africa, particularlyKenya, which has improved governance,responsive regulatory measures and astronger infrastructural environment.

Stanbic Bank hosted the first-everEast Africa trans-regional conference inNairobi, aimed at bringing togethercommercial business clients from Zambia,Kenya, Tanzania, Uganda and SouthAfrica. Zambia has huge tradeopportunities from its landlocked positionand Stanbic is exploring ways ofunlocking these trade opportunities byconnecting clients to markets that exist.

(ZDM, 16.06.16)

UK-Ghana Trade DealThe UK Prime Minister’s Trade

Envoy to Ghana, Adam Afriyie has saidthe special relationship that existsbetween Ghana and the UK provides aunique platform that could be taken

advantage of by businesses in the twocountries.

Adam Afriyie, who is also the Memberof Parliament for Windsor, (UK) at thelaunch of ‘Business is Great’ initiative inAccra, Afriyie disclosed that Britishcompanies have vast expertise that canreally be of immense benefit to theircounterparts in Ghana.

According to him, ‘Business is Great’initiative seeks to highlight the UKcapabilities in healthcare, technology,creative industries, education, extractives(including mining and oil and gas), Agri-technology, Financial, Legal andprofessional services. (BF&T, 11.04.16)

Kenya�s Tea Futures ContractKenya, the world’s biggest exporter

of black tea, is considering introducingthe world’s first futures contracts for theleaves to help stabilise prices and enablegrowers to guarantee income from theirproduction.

INTL FCStone Inc., based in NewYork (US), had discussions with industryrepresentatives in the East African nationsabout introducing the derivatives, StuartPonder, Senior Vice President forEmerging Markets, stated.

The company has prepared a reportfor clients in Kenya on the securities’potential, Ponder stated. The NairobiSecurities Exchange is already planningto start trading equity-index and currencyfutures in the second half of the currentyear and will support the proposal.

(BL, 16.06.16)

Move to Reduce ImportsEast African governments want to

implement taxation measures that will seethem make good their promise to promotelocal manufacturing and reduceimportation of goods, particularly second-hand clothes and shoes. Steel rolling mills,textiles, animal feeds and leather benefitfrom increased duties meant to promotelocal industries.

Overall, the four countries increasedtheir annual budgets for the 2016-2017fiscal year, with the focus on increasedtaxes, even as the integration policies tookbackstage. Regional Finance Ministershave proposed taxation measures that seekto rope in the informal sector, whichcontributes about 55 percent of Sub-Saharan Africa’s gross domestic product(GDP). (TEA, 11.06.16)

Investor-friendlyPolicies

Vice President of Ghana Paa KwesiAmissah-Arthur said that the

government will continue to ensureinvestor-friendly policies to attractinvestments from Trinidad andTobago in the oil and gas sector.“Relations between Ghana andTrinidad and Tobago turn back to theperiod before independence. We hopethat Ghana can benefit from theexpertise that Trinidad and Tobago hasdeveloped, especially in local contentfor the oil and gas sector”, he stated.

The Vice President disclosed thatthe government is currently lookingfor substantial investments that can bemobilised domestically and externally.

Moreover, the private sector alsorequires assurances that can only beguaranteed by political stability and agood business environment. Thegovernment is committed to providingthese assurances. (B&FT, 11.05.16)

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Regional Round UpRegional Livestock Policy

Common Market for Eastern andSouthern Africa has completed thedevelopment of a regional livestock policyto be implemented in partnership withthe Regional Economic Communities. Itwill enable members to enhanceinnovation, generation and utilisation oftechnologies, capacities andentrepreneurship skills of livestock valuechain actors in individual countries.

The implementation stages ofmember states vary according to priorities,with some being ahead in terms ofimproving production and productivityof their livestock sector.

Zambia is among the countries thatwill soon complete the enactment of theirlocal livestock policies. The policy isexpected to draw public and privateinvestments along different livestock valuechains, enhancing livestock productionand animal health. (DM, 28.06.16)

Nigeria Oil in CrisisAirlines plying the Accra-Lagos route

have had to reschedule or cancel theirflights altogether, following fuel supplychallenges in Nigeria. Passengers have hadto contend with delayed flights whilesome airlines still plying the route havehad to reduce the number of passengersthey transport from Accra, Ghana havingfilled their fuel tanks to avoid lifting fuelin Nigeria, the oil-rich West Africancountry.

This is the 13th largest oil producer inthe world with a daily output of some2.4 million bbl, is experiencing shortageof oil products including the specialisedaviation fuel for months now. It hasrecently been reported that outstandingdebts, currency crisis, and fuel subsidydisputes are some of the major reasons forthe fuel crisis. (BF&T, 27.05.16)

SADC to Mitigate DroughtSouthern Africa needs to prepare

bankable projects to cushion the regionagainst the impact of the current droughton member states’ water and energydevelopment programmes. SouthernAfrican Development Community(SADC) Ministers of Energy and Waterhad a joint workshop to discuss impactsof the current drought on the energy andwater sectors in the region and whatremedies can be implemented.

They said implementation of priorityinfrastructure projects for hydropowerand multi-purpose dams will accelerateregional industrialisation. To tackle theregion’s current power deficit, they agreedthat there is need to implement incentivesthat encourage efficient energy and waterappliances. (ZDM, 28.06.16)

Intra-EAC Trade FallsKenya, Uganda and Tanzania

continue to dominate intra-East AfricanCommunity trade even though its valuefell from US$5.8bn in 2013 toUS$5.63bn in 2014.

Intra-EAC trade is mainly dominatedby agricultural commodities, such ascoffee, tea, tobacco, cotton, rice, maize,and wheat flour and manufacturedgoods, such as cement, petroleumproducts, textiles, sugar, beer and salt.

Non-tariff barriers and doubletaxation for companies operating in twoor more member countries are among keychallenges facing businesses in the EACregional integration agenda, according tothe Kenya Private Sector Alliance.

(TEA, 18.06.16)

TAZARA-SNCCCollaborateThe Tanzania-Zambia Railway

Authority (TAZARA) and the CongoNational Railways Company (SNCC),have agreed to jointly market services ofthe two firms to boost the volume offreight between the three countries. The

Adopting Flexible Regime

Nigeria’s Central Bank is adopting a flexible foreign exchange rate regime in order toboost exports and stave off a recession in Africa’s biggest economy. The Bank has

previously kept a de facto peg ofaround 197 naira per dollar but thathas become unsustainable due to ashortage of hard currency stemmingfrom a slump in oil revenues. On theparallel market, the naira has fallento some 40 percent below the officialrate.

The Monetary PolicyCommittee (MPC) votedunanimously to adopt a flexibleexchange rate policy to restore theautomatic adjustment properties ofthe exchange rate. Details of the new rules would be shared with the public in due time.The Nigerian government said it would use a lower rate of 285 naira per dollar for petrolimports rather than the pegged official rate of 197. (B&FT, 24.05.16)

joint marketing initiative is designed toenhance the volume of freight from Dares Salaam to Zambia and the DRC.

Following the posting of improvedservice deliver, the two companies haveagreed to aggressively market theirservices. These improvements have comeas a result of changes of leadership in bothrailways as well as measures taken by theshareholding governments to stabilise andboost railway operations by injectingfunds and equipment. (ZDM, 24.06.16)

Austria AssistsWest AfricaThe Austrian Study Centre for Peace

and Conflict Resolution (ASPR) hascollaborated with the Kofi AnnanInternational Peacekeeping TrainingCentre (KAIPTC) in the implementationof a training course on humanitarianassistance in West Africa (WA), withfunding by the Austrian DevelopmentAgency (ADA).

The aim of the training course is toimprove the responses to humanitarianchallenges – for example, those causedby natural disasters, epidemics, violentconflict – in Africa with focus on the WestAfrican region.

The Austrian Federal Ministry ofDefence and Sports (MoDS) supportedthe two-week training programme byseconding an Austrian Officer as courseDirector at the KAIPTC, in the person ofBrigadier General Dr Alois A Hirschmug.The programme was an initiated in 2012.

(BF&T, 30.05.16)

Tradequity6 Year 15, No.2/2016

Environment/Consumer IssuesPoverty Levels High

Zambian government’s abuse ofFarmer Input Support Programme (FISP)has perpetuated high poverty levels in thecountry, stated the Centre for Trade Policyand Development (CTPD).

According to a 2015 agriculturalbudget analysis carried out by the IndabaAgricultural Policy Research Institute(IAPRI), it was noted that despite 56.7percent of the total agricultural budgetthat goes to FISP and Food ReserveAgency (FRA), rural poverty remainedabove 75 percent.

Commenting on the development,CTPD Executive Director IsabelMukelabai noted that both governmentprogrammes had been abused bysuccessive governments for politicalpurposes hence perpetuating highpoverty levels in the country as evidencedby their poor performance in alleviatingpoverty among smallholder farmers.

(TP, 14.06.16)

InflationMounts HighGhana’s annual consumer price

inflation rose to 19.2 percent in March2016 from 18.5 percent in February2016, pushed up by road transport fareincreases, the statistics office has disclosed.

A major commodities exporter, in theWest African country is implementing athree-year aid programme with theInternational Monetary Fund (IMF) inan attempt to remedy fiscal problemsincluding inflation persistently above

government targets. Road transportoperators in Ghana announced a15 percent hike in fares in late February2016.

“Fares are linked to almost all marketactivities and locally produced goods andany change in those fares tends to have adirect impact on consumer prices”, Ghanagovernment statistician PhilomenaNyarko said. For Razia Khan, StandardChartered Bank’s Chief Economist forAfrica, the rise in inflation was adisappointing outcome.

(B&FT, 14.04.16)

ZABS in Greens StandardsThe Zambia Bureau of Standards

(ZABS) has drafted standards on variousfruits and vegetables to help promotequality and safe products that are sold toconsumers. In a press statement issued byZABS Head of Marketing and PublicRelations Hazel Zulu in Lusaka, the draftstandards included fruits and vegetableslike tomatoes, carrots, cabbage, oranges,bananas and pineapples.

The draft standards are based oninternational standards in order topromote regional and foreign trade. Shefurther stated that the draft standardsprovided for product specifications andrequirements for packaging, ripeningconditions, storage and transportation offruit and vegetables for all handlers. Zuluwarned that fresh fruits and vegetablescould pose a health risk to consumers ifnot properly handled. (TP, 14.06.16)

Cheap Power BenefitAbout 300,000 households and

businesses will be linked to the power gridafter the African Development Bank(AfDB) approved Sh13.5bn loan for alow-cost connection project. The projectis targeting homes not connected to powerand are within a 600-metre radius to atransformer.

The new loan will be used in thesecond phase where new transformers willbe installed to connect homes that are farfrom power grid. Power consumers havethe option of paying the amount upfrontor in instalments through their monthlybills, removing a major hurdle to theacceleration of rural electrification.

(BD, 28.06.16)

Maize Meal Price HikeNearly 83 percent of Zambians believe

that the price of mealie-meal is too high,while 42 percent said they can no longerafford to buy the nation’s staple food,according to CUTS press statement issuedin Lusaka.

In the last four months, the price ofmealie-meal has increased drastically withpeople in some parts of the countrybuying the commodity for as high asK120 per 25 kg bag.

CUTS observed that continuous highmealie-meal prices pose serious health risksto a country where over 80 percent of thepopulation lives below the poverty line.This inability to continue to afford mealie-meal in the future is particularly highamong lower income groups.

(TP, 12.06.16)

Kenyans@Health RisksNearly 80 percent of electronics sold

in Kenya are counterfeit while 34 percentof medicines stocked in pharmacies arefake, according to a survey. This showsKenyans are prone to health risks besidesseeing the country lose more than Sh70bnannually, partly in unpaid taxes.Manufacturers incur losses of Sh50bnannually in sales revenue, the surveyfound.

Counterfeiting cartels use normalsupply chains delivering with ease the fakesto formal retailers, such as supermarketsand pharmacies. Majority of Kenyans,according to the survey, cannot distinguishbetween the genuine brands andcounterfeits regardless of education levelsor age. (BD, 28.06.16)

No Tariff Increment

The Public Utilities Regulatory Commission (PURC) of Ghana has said there hasnot been any increase in the existing Electricity and Water tariffs for the first

quarter. A statement signed by NanaYaa Akyempim Jantuah, Director,Public Relations and ExternalAffairs of PURC, said that theCommission, using the AutomaticAdjustment Formula, arrived at thedecision considering the movementsin the variables that underpin theFormula.

The AAF is a tariff mechanismthat seeks to track and incorporatemovements in key determiningfactors to reflect the cost of electricityand water every quarter. The

following factors are considered in computing the AAF: Ghana Cedi US$ exchangerate; inflation; fuel mix (crude oil, natural gas, and distillate fuel) and generation mix(hydro and thermal). (B&FT, 19.04.16)

Tradequity Year 15, No. 2/2016 7

Special Feature

CUTS Nairobi (Kenya) has beenworking in partnership with Southern

and Eastern African Trade, Information andNegotiations Institute (SEATINI) Uganda;Economic and Social Research Foundation(ESRF) Tanzania; and Association for theDefence of Consumers Rights (ADECOR);Rwanda, among other organisations in theEAC, to implement projects that have theend result of improving the citizen’s welfarein the EAC partner states. The areas of focusof this coalition are diverse like trade anddevelopment, climate change, consumerprotection, inclusive governance andcompetition.

There is a need to expand such a coalition on Sub-SaharanAfrica (SSA) level and include the civil society organisations(CSOs) and think tanks from various regions. This becomes allthe more relevant in the current scenario, when Tripartite FreeTrade Area (TFTA) and Continental Free Trade Area (CFTA) isunderway in Africa.

To initiate this idea, termed as the Africa Coalition on Trade andEconomic Regulation (ACTER), CUTS Nairobi, organised aDirectorate Level Meeting on May 06, 2016 in Kenya, Nairobi.The purpose of the meeting was to initiate a discussion for thisidea at the SSA level, structure and other management issues.Various prospective actors for the coalition participated in thediscussion. These include Kenya Small Scale Farmers Forum(KSSFF), SEATINI, ADECOR, ESRF, CUTS Lusaka, Zambia,CUTS Accra, Ghana etc.

To ensure this integration of the coalition, there is a need to behave a clear agenda set by the members and a Secretariat thatensures the tasks accomplished under the coalition is efficientlyallocated amongst the members. This would help to synergiseon individual members’ years of experience on various issuesand their expertise in various technical components, such asresearch, advocacy and networking. These notably, are some ofthe common strategies used by the members in their individualorganisations to achieve their objectives.

The participants in the discussion felt that there was a need forexpanding the scope of the partnership and include areas like:mobilisation of coalition members; development of coalitiongovernance structure; development of coalition campaignstrategy; and development of monitoring, evaluation researchand learning framework.

The operational modalities for this initiative were discussedand deliberated. It was agreed that the coalition would strive toform a niche are to work on in order to impact the stakeholders

Building a Coalition for AfricanCSOs on Policy Advocacy

at the grassroots. Further, the actors in the coalition, decided toidentify the functional areas and work towards cementing thefundamentals for the coalition.

The groundwork for ACTER was initiated through a projectcalled ‘Integrating Voice of CSOs in Regional Integration inEastern and Southern Africa’ referred to as IVORI-III Project.The idea of the project was to build awareness and capacity ofNon-State Actors in Eastern and Southern African countries,and establish a dynamic network to gather inputs and views foreffective implementation of the TFTA.

CUTS Nairobi developed a forward-looking ‘EngagementFramework and Action Agenda’ that specifies roles andresponsibilities of national governments, regional authorities,business community and CSOs in the region. This was sharedwith the three Regional Economic Communities (RECs),Common Market for Eastern & Southern Africa, East AfricanCommunity and Southern African Development Community(COMESA-EAC-SADC) and with other developmental actorsin the region, to create buy-in and establish synergies.

The aim of this ‘Engagement Framework’ was to help create asystem for two-way movement of information from thebeneficiaries to the implementers of the TFTA, and vice-versa.

A Forum called Eastern and Southern Africa Civil SocietyOrganisations’ Network on Integration and Development(ESACSONID) was created under the IVORI-III project. Thee-network constitutes of people/institutions involved in tradeand regional integration.

This E-forum not only serves as a discussion and informationdissemination forum on regional integration, multilateral tradeissues and other trade matters, it also helps in keeping themembers informed of the ideas being developed under ACTER.

SourcesBD: Business Daily, B&FT: Business and Financial Times, BL: The Hindu Business Line, DG: Daily Graphic, DN: Daily Nation;GNA: Ghana News Agency, LT: Lusaka Times, TEA: The East African, ZDM: Zambia Daily Mail

Tradequity newsletter: Composed by CUTS International Lusaka, 6211, Bukavu Road, Thorn Park, Lusaka, Zambia, Ph: +260.211.294892,Fax: +260.211.294892, E-mail: lusaka@cuts.org, CUTS Nairobi, Yaya Court 2nd Floor, No.5, Ring Road 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, Jaipur 302016, India, Ph: 91.141.2282821,Fax: 91.141.2282485, E-mail: cuts@cuts.org, Web Site: www.cuts-international.org

The news/stories in this Newsletter are compressed from several newspapers. The sources given are to be used as areference for further information and do not indicate the literal transcript of a particular news/story.

Publications

Our Twitter Handle (@cutsafrica)@cutsafrica June 30, 2016: Kenya's tea growers say hampered by high labour costs (50-60% of production costs)http://www.africanews.com/2016/06/29/kenyan-tea-growers-decry-high-labour-costs-in-the-sector/

@cutsafrica June 27, 2016: Africa can expect 100 megawatts electricity collectively from 3 renewable energy projectshttp://www.africanews.com/2016/06/27/3-african-renewable-energy-projects-to-share-7m-acf-prize/

@cutsafrica June 27, 2016: Post Brexit vote-consequences for Africa-Chain reactions could accumulate negativelyhttp://www.africanews.com/2016/06/24/brexit-vote-what-will-be-the-consequences-for-africa/

@cutsafrica May 08, 2016: PM Modi`s new round of energy diplomacy and diaspora-outreach in Africahttp://goo.gl/EHa4Gh

Research Reports

Liberalisation of Maize Procurement in Ghana and Implication on Women’sEconomic Empowerment Case-Study of Market Queens in Selected Regions

Ghana’s domestic maize trade is largely dependent on a network of private women traders who dominatethe local and regional markets while larger groups of wholesalers engage in spatial arbitrage across

regions/districts. These women traders are referred to as ‘Ohemaa’ or ‘Market Queens’ (MQs).The study presents analysis of liberalisation of maize procurement in Ghana and implication on women’s

economic empowerment. Specifically, the study examined the activities of market queens (MQs) and theircontribution towards women’s economic empowerment and employment opportunities, price settingmechanisms, types of support provided by MQs to the farmers, support of the state and perception of MQs onthe effect of the introduction of the commodity exchange in Ghana.

http://www.cuts-ccier.org/CREW/pdf/Liberalisation_of_Maize_Procurement_in_Ghana_$_Implications_on_Women_Economic_Empowerment.pdf

IVORI Reports

From EAC to TFTA Integrating the Voice of the Civil Society in Kenya

This research publication presents the state of involvement of Kenyan non-state actors, particularlyCSOs, in the East African Community (EAC) and the ongoing TFTA initiative. The main finding of

the Kenyan study is that the EAC has a working engagement framework in place with certain gaps both indesign and implementation, which can be improved upon for non-state actors’ engagement under theTFTA.

(http://www.cuts-international.org/ARC/Accra/IVORI/pdf/From_EAC_to_TFTA_Integrating_the_Voice_of_the_Civil_Society_in_Kenya.pdf )

From COMESA to TFTA Integrating the Voice of the Civil Society in Ethiopia

Tripartite Free Trade Area (TFTA) was officially launched in 2015 to bring 26 African countries fromCairo to Cape Town under one market. While, the grand initiative is noble and in line with the Abuja

Treaty that envisages for one African Economic Community, the integration process will have to incorporatevoices of the marginalised as represented by CSOs and other Non-State Actors (NSAs), for deep and meaningfulintegration. African RECs are, most often than not, perceived as elitist and government-to-governmentcooperation, partly because of lack of participation from citizens of Member States. This research publicationpresents the state of involvement of Ethiopian NSAs, particularly CSOs, in the Common Market for Easternand Southern Africa (COMESA) and the ongoing TFTA initiative.

http://www.cuts-international.org/ARC/Accra/IVORI/pdf/From_COMESA_to_TFTA-Integrtaing_the_Voice_of_Civil_Society_in_Ethiopia.pdf