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

Year 14, No. 4/2015

Post-Doha Trading SystemFive Point Agenda for African Economies

The package that came out of theDecember 2015 World Trade

Organisation (WTO) MinisterialConference in Nairobi – the first hostedby an African nation – has been hailedas one of the most substantial packagesthat has been reached over the WTO's20 years. The most notable outcomes ofthe conference include the following:• African farmers will acquire benefit

from the immediate (or at least before2018) phase out of most exportsubsidies on agricultural goods.

• African least developed countries(LDC) cotton producers will beprovided with duty-free, quota-freeaccess to developed and selectedemerging countries' markets.

• Under a special safeguardmechanism, African governments willbe able to raise their tariffs as neededto protect their farmers.

• They can also claim exemptions fromagricultural subsidy limits in order tomaintain public stocks for foodsecurity.

The Big Elephant in NairobiThe most mediatised issue during

and after the Nairobi Conference wasthe failure of the Ministers to agree onwhether or not to continue the DohaRound. While developing countriesare generally in favour of the Doha

– (http://www.brookings.edu/blogs/africa-in-focus/posts/2016/01/06-post-doha-trading-system-andriamananjara)

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 to Lead Africa in EconomicGrowth .............................................. 2

Is Time Ripe to Pull the Plug on theWTO Doha Round Issues? ................. 3

Global Trade Agreement ..................... 4

Common Passport for EAC ................. 5

Tariff Hike for Gas Debt ..................... 6

contain preferential features that violate the'most favoured nations' principles. Moreimportantly, they are likely to significantlyhurt excluded countries, which generallytend to be the poor or small countries withlittle bargaining power.

4. Costly negotiations Signing trade agreements could be

difficult and costly, especially for smallcountries that lack negotiation andimplementation resources and capacity.The typical African economy might notbe able to keep pace with emerging ordeveloped countries that are able to signmultiple deals and will likely remain at themargin of many new agreements.

5. Impact onmultilateralism There is a potentially perverse

relationship between multilateralism andthe trend towards regional or plurilateraldeals. On one hand, difficulty and slowprogress in multilateral liberalisation haveled to the current push for regionalarrangements. On the other hand, thosearrangements themselves might renderfuture multilateral deals more difficult andless feasible. Furthermore, the ‘Nairobipackage’ features a wide range of decisionsthat are of particular relevance to Africaneconomics.

Round (given its strongemphasis on making traderules fairer for developingcountries), prolongeddeadlock in multilateraltrade negotiationsbeginning 2001, hasbeen a source of fatiguefor many WTOmembers, inducing a shiftin their focus to othertrade initiatives.

The five important policy-relatedpoints for African officials and stakeholdersto note while formulating their positionsand strategies for any future negotiationsin a post-Doha world are as following:

1. Newcontexts and attitudesThe round was launched two months

after 9/11, when the multilateral tradingsystem was considered as a 'global publicgood'. Now, if anything, the key criteria forchoosing one's partners in the new regionaltrade deals are overwhelmingly based onthe potential for 'coincidence of wants' andthe possibility of reciprocal exchange ofconcessions.

2. New trade issues Developed and emerging countries are

more interested in negotiating sophisticatedissues, such as investments, governmentprocurement and competition policy,international taxation, migration,intellectual property, financial services, andpharmaceuticals than import tariffs oragricultural subsidies – Doha's core issuesfor developing economies.

3. Preferential & discriminatorydeals

Whether by design or not, bilateral,regional, and especially mega-regional tradedeals, by their inherent nature, exclude non-participating countries. Most of them

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Economics and Development

SMEs to Create Jobs in AfricaAfrica's transformation on the global

economy requires it to be currently atthe table of international trade decision-making. Studies have focussed ondeveloping Africa's Small and MediumEnterprises (SME) sector as a vehicle toemployment and job creation and as akey to the region's entrepreneurialenvironment needs.

At present, these small and growingbusinesses create around 80 percent ofthe region's employment, establishing anew middle class and fulfill the demandfor new goods and services. SMEs play acritical role in nation building, nationadvancement, and a nation'sinnovativeness.

This is because without SMEsdevelopment, growth and socio-economic paradigm shifts in Africa cannottake place. Moreover, it is not possible toreduce poverty without SMEs. It is thusnecessary for WTO to strike a deal andhave SMEs as central pillar for the world'seconomy. (TS, 16.12.15)

AfDB's Aid to GhanaAkinwumi Adesina, President of the

African Development Bank (AfDB) isconfident that the Bank's board willapprove an amount of US$100mn to

support Ghana's budget. According toAdesina, the support is the Bank's way ofasserting its confidence in the localeconomy, which he said has witnessed atsome hard times.

The expected release of the AfDBbudget support will come as good newsto the government, particularly as itincurred donors' wrath previous yearwhen more than US$700mn waswithheld on account of some concernsdonors raised about the economy'smanagement.

The deal between Ghana and theInternational Monetary Fund (IMF) hasacted as a catalyst in ensuring that thedonor funds that were previously lockedup are released to ease the fiscal constraintsof the government. (B&FT, 23.10.15)

Japan Eyes Energy SectorJapan is interested in investing in the

Zambian energy sector to stabilise powersupply, which has directly affectedJapanese economic activities in Zambia,said visiting Japanese Parliamentary ForeignAffairs Vice Minister Hitoshi Kikawada.

He said that it was important that thepower deficit was stabilised as it affectedthe entire Zambian economy and directlyimpacted the Japanese firms andcompanies working in Zambia.

"It is important that the power supplyis stabilised because it directly affectsJapanese companies and the entireeconomy in Zambia. We will continue toencourage Japanese companies to investin Zambia", Kikawada said. He added thatmore Japanese investors would come toZambia when the Zambian economy isstabilised, which had the potential to dobetter. (DN, 11.12.15)

US$10bn Aid from IndiaIndia and Africa renewed their

relations at a conference in New Delhi(India) on October 29, 2015, whereIndian Prime Minister Narandra Modiannounced his country's decision to raisethe level of support to Africa with aconcessional credit of US$10bn over thecoming five years.

Besides, India pledged a grant ofUS$600mn, which would include anIndia-Africa Development Fund ofUS$100mn and an India-Africa HealthFund of US$10mn over the sameperiod.

Modi said that his country since thefirst India-Africa Summit in 2008, hadcommitted US$7.4bn in concessionalcredit and US$1.2bn in grants to Africa.The event of 2015 attracted a recordparticipation of all 54 African nations with41 of them represented by their heads ofstate, including Ghana's President JohnDramani Mahama. (DG, 30.10.15)

Ghana Ranks 14th in AfricaGhana has been ranked 111th most

competitive economy in the world in the2015 World Economic Forum's GlobalCompetitiveness Index (GCI) report,placing the Ghanaian economy 14th inAfrica. On a barometer of 7, the economyscored 3.9 in institutions, 3 ininfrastructure, 3.4 in macroeconomicenvironment, and 4.5 in health andprimary education.

Low score on macroeconomic stabilityof Ghana comes as no surprise, as thecurrent inflation rate stands at 17.4 percentand the current monetary policy rate is 26percent with downward revision of GrossDomestic Product (GDP) growth rate andunstable value of cedi against US$.

The report suggests that Africa,including Ghana, needs to increase thecapacity of institutional frameworks toincrease its competitiveness as well as toresolve power shortfalls. (B&FT, 24.11.15)

Kenya to Lead Africa in Economic Growth

Kenya's economic growth could be the highest in Sub-Saharan Africa over thecoming 15 years, according to a new World Bank (WB) report. According to

Pulse report, Kenya's growth should remain 'robust' at around 6.2 percent until2030, well above many other African economies that would suffer from China'seconomic slowdown and restructuring away from foreign investment and towardsdomestic consumption.

The WB has also warned of dark clouds on the horizon, including wideningpublic sector deficits, growing debt levels and the continuing decline in commodityprices, particularly for coffee, which has declined by 25 percent in the previous year.However, most Sub-Saharan countries are expected to grow at a slower pace due to amore challenging economic environment. (DN, 06.10.15)

www.nation.co.ke

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News on Trade

Drop in Transit TradeThe Ghana Ports and Harbours

Authority has mentioned Ghana is losingsignificant revenue due to continued dropin transit trade between the country andits West African neighbours. Officialsattribute the trend, among others, to theintroduction of axle load regulation, whichhas seen shippers from the Sahel regionboycott Ghana's ports over high cost.

Figures from the authority indicatethat Ghana lost about 50 percent of cargotrade with Burkina Faso, Mali and Nigerfrom 1mn tons annually since 2009 to500 thousand tons in 2014. Shippersfrom the Sahel region have seven portalternatives to the Ghana option.

Marketing and Public RelationsManager at Ghana Ports and HarboursAuthority (GPHA), Paul Asare Ansah, saidthat Ghana paid the price in the country'squest to maintain the integrity of hercorridors. (DG, 17.11.15)

M-Pesa-based LoansA US company has launched a

Facebook-linked mobile phone lendingservice that allows the users to borrow andrepay small loans through M-Pesa. Theservice accessible through an app dubbedBranch is set to raise competition for otherM-Pesa-based loan disbursementplatforms, such as M-Shwari and KCBM-Pesa and will be offering entrepreneursup to Sh50,000 repayable in six months.

Branch will target small and microenterprises that are in need of quick loansbut are locked out by traditional banks,which demand collateral and see them ashigh-risk borrowers.

Borrowers only need to download'Branch' from Google Play, log-in withtheir Facebook accounts and beginapplying for small loans charged a one-offfee of between six percent and 12 percentdepending on the amount and repaymentperiod. (BD, 18.10, 15)

Zambia Part of TFTAZambian President Edgar Lungu has

stated that Zambia is in the process ofratifying the treaty establishing theTripartite Free Trade Area (TFTA)encompassing South AfricanDevelopment Community (SADC),Common Market for Eastern andSouthern Africa (COMESA) and the EastAfrican Community (EAC).

President Lungu mentioned thatZambia is also actively involved in the on-going negotiations to create an African Free

Trade Area by 2017. The President alsosaid that the African continent will betransformed into a major player in theglobal economy once the free trade areasare successfully implemented.

Lungu also stated that Zambia fullysupports the SADC industrialisationstrategy and road map 2015-2063 thatprovides a clear framework forindustrialisation, economic diversification,productivity and market integration.

(http://www.tiozambia.com/zambia-part-of-afta-lungu/25.10.15)

Ghana-Denmark Deal SignedThe Ghana Maritime Authority

(GMA) and the Danish MaritimeAuthority (DMA) have signed a bilateralagreement for the mutual recognition ofseafarer certificates between Ghana andDenmark.

The Director Generals of the twoinstitutions, Rev. Dr Peter Issaka Azumaand Andreas Nordseth, initialed for theirrespective organisations. Azuma noted thatthe signing of the agreement marked apositive development by the authoritytowards alleviating the unemploymentdifficulties of Ghanaian seafarers. This wasconsidering the fact that Denmark was aleading ship owning country with hugeemployment opportunities on board itsflagships.

Further, he expressed the hope thatGhanaian seafarers and ship manningagencies would take advantage and accessthe Danish maritime labour market.

(DG, 23.10.15)

Kenya in ECOWAS Market

Nearly one year after Kenya signed a free trade pact with Ghana as part of 'Africa-focussed diplomacy', Nairobi-based firms are preparing to make a major move to

the West African nation. The firms – in energy, construction, professional services,agriculture, manufacturing and tourism – are already seeing beyond Ghana into thewider regional market.

According to theKenya Private SectorAlliance (KEPSA)Chief Executive CaroleKariuki, Ghana givesKenya's businesses anopportunity to connectwith a wider targetaudience, andintroduce newproducts for international markets.

The hope is that they will be able to use the pact to side-step some of the tariff andadministrative barriers that have previously blocked their entry into the 350mn-peopleECOWAS. (BD, 18.10.15)

Is Time Ripe to Pull thePlug on the WTO Doha

Round Issues?

With the ensuing NairobiMinisterial of the WTO, the

Director General of the WTO,Roberto Azevêdo, said that while thereremains agreement that the DohaRound core issues, such as agriculture,market access and services remain onthe negotiating agenda, there is a cleardivergence among members on howthese negotiations should take place.

A cursory perusal of the history oftrade negotiations reveals that misseddeadlines are not a new phenomenonin the multilateral trading system.However, even by General Agreementon Tariff and Trade (GATT) standards,the Doha Round of negotiations havedrawn on for longer than normal.

While developing countries maybe opposed to closing the Doha Roundin the light of the issues that still remainunaddressed, in the long term,choosing to remain dogged aboutkeeping the Doha Round alive coulddo more damage than good to themultilateral trading system, andultimately to the chances of fosteringa strong development componentwithin the global trading system.

(FE, 21.12.15)

www.businessdailyafrica.com

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News on TradeStronger Tieswith US thanChina

Most Kenyans see the US as the mostimportant country, outside eastern Africa,to have good relations with as compared toChina. A new study conducted by researchfirm Ipsos between November 07 and 19,2015 indicates that 41 percent of therespondents prefer America compared tothe Far East economic powerhouse, whichonly 16 percent of Kenyans prefer to workwith.

The opinion poll, however, shows that13 percent of Kenyans, who constitutedthe sample size of 2,058, consider the USto be the biggest threat to Kenya'seconomic and political development. Apaltry 12 percent instead see China as apotential threat. Greatest benefit of USwas during August, after PresidentObama's visit, where China's popularitywent down. (TEA, 24.12.15)

Zambian Mission in TurkeyThe Zambian mission in Turkey has

embarked upon an exercise to identify andengage fruit-dealers, so that they couldstart importing Zambian tropical fruits likemangoes, which are available inabundance seasonally.

Bwalya Nondo, Deputy Head ofMission stated in Ankara, Turkey, that theembassy is also wooing potential investorsto set up food-processing factories inZambia for value-addition and jobcreation.

Zambia's ambassador to TurkeyMulenga observed that while engagingappropriate Turkish business agencies to

explore the possibility of having an exportmarket for Zambian fruits, the mission willat the same time showcase opportunitiesfor investment in the food processingindustry. (DM, 14.12.15)

Zambia: Main COMESA ImporterZambia is the biggest importer in

COMESA after it has posted the biggestmarket share of 25 percent in 2013 and islikely to record a much higher figure in2015, said business council ChiefExecutive Officer Sandra Uwera. Uweraattributed the increase in the market shareto a large number of products that Zambiaimports.

She said Zambia was followed byDemocratic Republic of Congo, Libya,Kenya and Uganda with intra-COMESAimport market shares of 18.2 percent, 12.7percent, 6.5 percent and 6.4 percentrespectively. Zambia was among thecountries that contributed to the regionalgrowth together with Madagascar, CongoDR, Burundi and the Comoros.

Uwera explained that COMESA'strade with the rest of the world currentlystands at US$283bn in 2013 with totalexports at US$113bn in 2013 whileimports were US$170bn in the same year.

(DN, 17.11.15)

Exploring Prospects in GhanaA 20-member Indian business

delegation had been in Ghana to conferwith Vice-President, Kwesi Amissah-Arthur of Ghana to explore investmentopportunities.

Hemant Kumar Mahay, the Leader ofthe Indian Business delegation recognisedthe close ties between the two countries,adding that the relationship had blossomedto the extent that there were currently manyGhanaians of Indian origin who werecontributing to the country's development

Mahay expressed the optimism thatthe team would go to India on a positivenote and return to partner their Ghanaiancounterparts in businesses that would bemutually beneficial to the two countries.

(DG, 08.12.15)

COMESA Regional Maize TradeThe Common Market for Eastern and

Southern Africa (COMESA) has launcheda roadmap that will address differences instandards and regulations that hinderregional trade in maize.

The resolutions of COMESA MutualRecognition Framework (C-MRF), whichaims at providing equivalence of analyticalresults and recognition of certificates ofanalysis, were issued by the laboratories ofthe participating countries.

In a statement by COMESA Head ofCorporate Communications MwangiGakunga. Recently, the C-MRF wasdeveloped by the COMESA Secretariatin partnership with six countries withsignificant maize trade. The participatingcountries are Zambia, Kenya, Malawi,Rwanda, Uganda and Zimbabwe.

(http://www.agribusinessafrica.net/30.12.15)

Ghana-Korea Bilateral DealGhana and the Republic of Korea

have signed two bilateral documentsgeared at facilitating and enhancingcooperation between the two countries.The two documents are the FrameworkAgreement on Grant Aid and theFramework Arrangement of theConcessional Loans from EconomicDevelopment Cooperation Fund(EDCF).

Speaking at a signing ceremony inAccra, (Ghana) Seth Terkper, the Ministerof Finance and Economic Planning saidthe signing of the two agreements wassignificant as there had been a delay sincethe last agreement was signed in 2012.

Terkper said the framework agreementwas a comprehensive document coveringgrants, technical assistance and some loans,without which it would be difficult forKorea and its embassy in Ghana to offerany assistance to the country.

(GNA, 10.12.15)

Global Trade Agreement

Kenya is poised to score on one front in the fight to keep the World Trade Organisation(WTO) relevant as five countries pledged to ratify the Trade Facilitation Agreement

(TFA). Among them include Nigeria,Jamaica, United Arab Emirates; Egyptand Rwanda who pledged to hand in theirinstruments of acceptance to the WTOat the plenary session. The TFA will enterinto force once 108 members of the WTOhave formally accepted the agreement andare expected to help in cutting globaltrade costs as well as delivering technicalassistance to economies that need it.

According to the WTO's 2015World Trade Report released in October,implementing the TFA has the potentialto increase global merchandise exports by

up to Sh102tn (US$1tn) annually, benefiting mostly developing countries.(TEA, 17.12.15)

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Regional Round Up

Fast-trackingOSBPThe East African Legislative Assembly

(EALA) has called upon member states tofast-track all remaining works on the OneStop Border Posts (OSBP) to pave the wayfor the implementation of otherintegration projects. OSBPs are expectedto reduce delays and facilitate inter-regional and international transport.

The members of EALA undertook anOn-Spot Assessment on the one stopborder posts (OSBP) in EAC partner statesin the months of April and September2015 with the objectives of finding outthe status of implementation of the OSBPprojects and its effect on the movement ofpeople and the EAC businessenvironment.

Moreover, it also set to interact withstakeholders and identify opportunitiesand challenges affecting theimplementation of effective OSBPs andto come up with relevantrecommendations. (TEA, 28.11.15)

Water Infrastructure in ECOWASA national workshop on dissemination

and appropriation of the ECOWASguidelines for the development of waterinfrastructure has been held in Accra,Ghana. The event was organised underthe auspices of the Ministry of WaterResources, Works and Housing, incollaboration with the Water ResourcesCoordination Centre (CCRE) ofECOWAS, and the International Unionfor Conservation of Nature (IUCN) ofBurkina Faso.

The workshop aimed to promote thebest practices at national and cross-borderlevels in the construction and managementof large dams. In addition, the workshop

will help develop a strategy to integratethe guidelines and ECOWAS directiveinto national regulations, policies andpractices targeting the development ofwater infrastructure at the national scaleand cross-border level, according to BenYaw Ampomah, Executive Secretary,Water Resources Commission.

(GT, 01.10.15)

Move to Reopen WaterwayMozambique continues to resist work

to reopen a waterway that would giveZambia and Malawi, both landlockedcountries, access to its Chinde port on theIndian Ocean. The route has not been inuse since the 1970s when civil war eruptedin Mozambique. Reopening it could be amajor boom to Malawi and Zambia'seconomies.

The Malawian government spendsUS$300mn annually to import andexport goods. Much of that trade movesthrough the ports of Beira and Nacala inneighbouring Mozambique.

Reopening the waterway would costthe governments and donors an estimatedUS$6bn. Mozambique's Minister ofTransport Carlos Mesquitta questioned,"Within 10 to 15 years, the cost ofmaintenance dredging per year will bedoubled i. e. US$60mn. So how come itsays we will have some advantage and thenwe will be paralysed by all sorts of thesethings"?

(http://www.zambianews.net/index.php/sid/237247787#sthash.mLtCzzzx.dpuf/02.10.15)

EasingGoods&PeopleMovementThe directive of the East African

Presidents to their treasuries to speed upthe completion of the Northern Corridor

Common Passport for EAC

The common passport, which has been in development forfive years, is set to replace the respective second-generation passports in

a process expected to be completed in two years. According to EAC SecretaryGeneral Richard Sezibera, part of the mandate of the EAC integration processis easing movement of citizens from member states within and outside thecommunity.

EAC wanted the identity card to be used for travel across the regionwhile the East African passport, which will be the document used for traveloutside East Africa. Currently, all the EAC member states apart from Burundiuse second-generation passports that rely on digital imaging, watermarks andUV imaging as security features. Biometric passports contain additional securityfeatures through implanted micro-chips containing facial and biometricinformation of the traveller. (TS, 16.12.15)

railway, road, and pipeline projects is amove in the right direction. Speeding upthe completion of the railway networks,particularly the Mombasa-Kampala-Kigali-Juba line is expected to ease themovement of goods and people, not justacross the region but also within states.

It will also ease pressure on thecongested roads, increase their longevity,and preserve their quality. Countries thathave succeeded in developing an efficient,reliable, timely and well-integrated railwaynetwork have opened up even remoteregions for development, making itpossible to distribute goods and servicesto a wider market at competitive prices.

(DN, 19.10.15)

Biometric ID to be PilotedECOWAS citizens would be issued

with the regional bloc's Biometric IdentityCards, to ease movement and aid securityin the sub-region from 2016.

This follows a recommendation madeby the ECOWAS Council of Ministers atthe end of its 73rd Meeting in Abuja,Nigeria seeking the issuance of thebiometric cards on a pilot basis in 2016.

The issuance of the biometricidentification cards would enable seamlesstravel for citizens within the region andremove the requirement for residencepermits for ECOWAS nationals migratingto any of the member states.

The identity cards, to replace theECOWAS Travel Certificate, would becirculated alongside national identity cardsof member countries until fullimplantation. This would ensure thesecurity of migrants and data managementwithin the sub-region. (GNA, 14.12.15)

www.google.co.in

Tradequity6 Year 14, No.4/2015

Environment/Consumer Issues

Price Hike Demand DeniedThe Kenyan government has rejected

demands by oil marketers to increase fuelprices to help them recoup losses theyclaim to have incurred following theimplementation of a new levy to financethe construction of 10,000 km of roads.

But the firms said that they lost anaccumulated Ksh830mn (US$7.91mn)on cargo between July 17 and August15, 2015 when the Kenya RevenueAuthority started collecting the taxwithout a corresponding increase inpump prices.

The Energy Regulatory Commission(ERC), however, rejected the demands bythe firms, arguing the move was not inthe interest of the consumers. Accordingto ERC's Director General JosephNg'ang'a, the regulator's business is toensure the pricing element and that themarketers have the option of recourse inthe Energy Tribunal. (TEA, 10.10.15)

Buses for BRT ProjectA Sweden-Based automobile

company, Scania, has delivered 10 high-occupancy buses to be used for the BusRapid Transit (BRT) project. The busesare currently being used to traininstructors of the BRT project and the

project would be fully implemented inthe first half of the following year alongAmasaman-Accra Central District.

The first batch of 20 masterinstructors have been trained at TemaScania Regional Technical Centre. Furtherto this, Scania is to supply 50 luxurycoaches to the Intercity STC CoachesLimited to enhance their operations.

Deputy Minister for Transport, JoyceBawah Mogtari, said that the entry ofScania into West Africa via Ghana was atestimony of the confidence that thecompany had in the economy.

(DG, 27.11.15)

CCPCRaidsMAZThe Commission has opened an

investigation into suspected price fixingof mealie meal prices by the MillersAssociation and its Members. OnOctober 29, 2015, a team of Investigatorsfrom the Competition and ConsumerProtection Commission (CCPC)conducted a search (dawn raid) on fourmajor milling companies in Lusaka forsuspected engagement or facilitation inthe fixing of mealie meal and flour prices.

The Commission has observed thatin the period between 2010 to 2015,the Millers' Association of Zambia (MAZ)

acting with other parties are reasonablysuspected of participating in or facilitatingconduct likely to result in the prevention,restriction or distortion of competition inthe supply and pricing of mealie meal andflour.

The Commission suspects that theAssociation and its members have beenagreeing to simultaneously increase theprice of mealie meal and flour.

(LT, 29.10.15)

Curbing Climate ChangeThe United Nations (UN) has praised

Zambia for submitting its voluntary targetfor reducing carbon emissions ahead ofthe Summit for Climate Change to beheld in France aimed at preparing its newstrategy for tackling deforestation.

The UN resident coordinator JanetRogan said because of Zambia'scommitment to cur climate change, theUN would support the government in itsquest to address the challenge ofenvironmental degradation.

"I would like to congratulate Zambiafor submitting its voluntary target forreducing carbon emissions ahead of theSummit and preparing its new strategyfor tackling deforestation. The UN inZambia is strongly supporting theGovernment in this work", Rogan added.

(http://zambiadailynation.com/2015/10/22/zambia-acts-on-climate-change/)

Utility Tariff HikeThe Public Utilities and Regulatory

Commission (PURC) has announcedhikes in both water and electricity tariffsin Ghana, which has been criticised ascounter-productive to business growthand sustainability.

The increase, which will take effectfrom December 14, will see electric billsgo up to 59.2 percent while water billswill rise to 67.2 percent at a time whenthe input cost of businesses has risenshapely on the back of the erratic energysupply situation in the country, and achallenging macroeconomic environment.

Both the Association of GhanaIndustries (AGI) and the Trade UnionCongress (TUC) have criticised theincrease tagging it as 'unwarranted', sincethere is no indication of the availability ofadequate power to reduce the burden onconsumers from the three and half yearold load-shedding. (B&FT, 08.12.15)

Tariff Hike for Gas Debt

Power producer, the Volta River Authority (VRA), is waiting on the Public UtilitiesRegulatory Commission (PURC) to conclude consultations and subsequently

approve a major tariff increase that will enable them to generate enough revenue formeeting their financial obligation to the Nigerian Gas Association (NGas).

NGas, made up of Chevron, Shell and the Nigerian National Petroleum Corporation(NNPC), has a gas-supplier agreement with Ghana to supply 120mn standard cubicfeet of gas per day. The VRA is indebted to the tune of US$182mn, spanning fromAugust 2014 to June 2015.

However, the two entities had a business arrangement that temporarily froze thedebt in June 2015 until such time that the PURC approves the proposed tariffincrement, passing its debt onto consumers through tariff hike. (B&FT, 16.10.15)

www.thebftonline.com

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Special Feature

The ConferenceCUTS International organised the final conference of the

project, Competition Reforms in Key Markets for EnhancingSocial and Economic Welfare in Developing Countries (CREWProject), in Nairobi on December 12-13, 2015. The conferenceon 'Relevance of Competition and Regulatory Reforms inPursuing Sustainable Development Goals (SDGs)’ drew fromthe findings of the CREW project, which demonstrates the impactof competitive markets on the producer and consumer welfare.

This conference was also the fourth in the series of CUTSBiennial conferences (IV Biennial conference) that CUTS and itssister organisation CIRC has been organising every two years tohighlight key issues in the interface of Competition, Regulationand Development, especially from the perspective of developingand least developed countries.

This conference was supported by DFID (UK), BMZ(Germany), GIZ (Germany), Organisation of EconomicCooperation and Development (OECD), World Bank and UnitedNations G77 Secretariat.

Mukhisa Kituyi, Secretary General, United NationalConference on Trade and Development (UNCTAD) inauguratedthe conference along with Frederick Jenny, Chairperson of theOrganisation for Economic Cooperation and Development(OECD) Competition Policy Committee. Kituyi delivered a keynote address and set the stage for this two-day event.

The purpose of the conference was to share knowledgeamongst the global community and to undertake a discourse onhighlighting ways in which competition and regulatory reformscan be used in contributing to the SDGs, a road-map for theinternational competition community to consider for the future.

A 'Call for Papers' was jointly issued with OECD in early2015 and several Papers were received from internationalresearchers and practitioners. The selected Papers (reviewed bycompetition experts) were presented in four sessions and theRound Table that were chalked out for the two-day conference.CUTS would be publishing a conference volume of the Papersthat were received in response to the call.

Relevance of Competition and RegulatoryReforms in Pursuing Sustainable Development Goals

SDGs and CompetitionThe discussions focussed on the role of competition in

achieving the SDGs. The first Goal 'End poverty in all its formseverywhere' and the second Goal 'End hunger, achieve foodsecurity and improved nutrition, and promote sustainableagriculture' can be threatened by anti-competitive practices, whichinflate basic food prices and make them unaffordable to thepoor, thereby worsening poverty. Abuse of dominance and cartelsare very prevalent in both developing and developed countriesin the basic food sector, making competition law implementationvery relevant as a tool for reducing prices, which is a positive steptowards poverty alleviation.

Firstly, sustainable agriculture is also threatened as there are alot of competition distortions that could appear at different stagesin the agriculture supply and value chains (seed, fertiliser, output,agro-processing etc.) that can also threaten the attainment of thesecond goal. This makes competition policy very relevant.

Secondly, Goal 3 is about 'Ensuring healthy lives andpromoting well-being for all at all ages'. However, access toaffordable medicine, which is always a critical determinant of thestate of health in developing countries, is often compromiseddue to competition distortions in the pharmaceutical market,which an effectively implemented competition law can address.

Thirdly, competition policy can also be seen to be relevant inthe attainment of Goals 4 to 9 of the SDGs. Anti-competitivepractices characterise private education, markets where theinformal sector players are dominant (where women are mostlyconcentrated and thus have gender implications), energy, waterand sanitation sectors. Measures done for the attainment of allthese goals need to be complemented by competition policy.

The closing of the conference was done by the Minister ofTrade and Industry, Ghana, Ekwow Spio-Garbrah who delivereda keynote address on the role of SDGs on developing and leastdeveloped economies.

The conference was well attended by over a 100 high-levelcompetition practitioners, policy-makers, academia anddevelopment partners from across the globe.

(http://www.cuts-ccier.org/CREW-Final_Conference/)

The conference on 'Relevance of Competition and Regulatory Reforms in PursuingSustainable Development Goals� (SDGs) drew from the findings of the CREW project of

CUTS, which demonstrates the impact of competitive markets on producers andconsumers in developing countries.

SourcesBD: Business Daily, B & FT: Business & Financial Times, DG: Daily Graphics, DN: Daily Nation, DM: Daily Mail,FE: The Financial Express, GT: Ghanaian Times, GNA: Ghana News Agency, LT: Lusaka Times, TEA: The East African, TS: TheStandard

Tradequity newsletter: Composed by CUTS International Lusaka, Plot 3653, Mapepe Road, Olympia, P.O. Box 37113, Lusaka,Zambia, Ph: +260.211.294892, Fax: +260.211.294892, E-mail: lusaka@cuts.org, CUTS Nairobi, Yaya Court 2nd Floor, No.5, Ring RoadKilimani 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, 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

Synthesis Report

Road Ahead for the EAC Regional Competition Regime

This is a report highlighting national and regional-level findings on the current status of the East AfricanCommunity Competition Policy and Law implementation. The report details policy constraints for

implementation of the same and also highlights the sectors for market inquiry given the conduct exhibitedby a number of enterprises. The report further provides recommendations on how to promote competitionin the region. The report entitled ‘Road Ahead for the EAC Regional Competition Regime’ is intended toprovide a baseline on the status of competition in the region and catalyse regional discussions on the need foran effective competition regime amongst the Partner States nationally and regionally.

http://www.cuts-international.org/arc/nairobi/eaccomp/pdf/EACOMP_Synthesis_Report.pdf

Competition Regime in Ghana – a need of the nation

The publication highlights the advantages of implementing competition policy in Ghana. All consumershave an interest in the successful application of competition policy in this country. Unfortunately, over

the years, this is not an area of policy that has received the attention it deserves. Ghana has no comprehensivecompetition legislation, in spite of having had a few draft statutes formulated which appear not to havecaught the fancy of policymakers as a priority matter.

http://www.cuts-international.org/arc/accra/compad/pdf/Report-Competition_Regime_in_Ghana-a_need_of_the_nation.pdf

ReguLetter

The October-December 2015 issue of ReguLetter encapsulates ‘Promoting Fair Competition in PublicProcurement’ in its cover story, which states that to ensure that consumers from across the world realise

the potential benefits from an effectively implemented competition regime and play their role in makingcompetition regimes work worldwide, it is critical that focus on competition policy and law issues at aninternational level be strengthened. This can be achieved through the adoption of a World Competition Day.

The newsletter focuses on news, views and policies related to corporate restructuring, regulations ofutilities and finances, corporate governance etc. of different countries, with focus on developing nations.Special dedicated sections showcase issues and cases thwarting competition in countries across the globeproviding readers an insight into the competition scenario therein.

This newsletter can be accessed at: www.cuts-ccier.org/reguletter.htm

Our Twitter Handle (@cutsafrica)@ZeeNews 28 Oct. 2015: LIVE- India and Africa are two bright spots in global economy, says PM Narendra Modi

@cutsafrica 28 Oct. 2015: "India can play a role in making growth in Africa sustainable by participating in #healthcare sector",@mfaethiopia

@RijitSengupta 13 Dec 2015: Hon'ble Spio-Garbrah, Trade Minister of Ghana w @Psm_cuts at #CREW Conference asKeynote speaker #CUTS4thBiennial

@Psm_cuts 13 Dec. 2015 Nairobi, Kenya: Ghana's Trade&Industry Minister @espiog delivers a brilliant reality check in hisvaledictory @ #CUTS4thBiennial.

@cutsafrica 26 Nov. 2015: #CUTS tool to plan, implement & monitor pro-competitive #reforms in key #markets, http://goo.gl/kbvwzx @wef @WorldBank @TheDCED @DFID_UK

@cutsafrica 26 Nov. 2015: EAC Competition Law reforms will boost Eco Development, #CUTS http://goo.gl/BTgTfr @jumuiya@TradeMarkEastA @CUTSCCIER @Psm_cuts

@XHNews 26 Nov. 2015: #China to increase investment in #Africa, buy more non-resources products: official http://xhne.ws/mWFwJ