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E Tradequity TTrradequityadequityee A Newsletter of CUTS Africa Year 13, No. 1/2014 African Consumers: Rise up for your rights hile going through an online blog Eight Basic Won mobile phone services in Kenya Consumer Rights one will come across consumer experiences • Right to Satisfaction like this one, “I am writing to inform other of Basic Needs Kenyans of a disservice my service provider • Right to Safety has done on its consumers. I am sure this • Right to be Informed has affected other users of this network. I • Right to Choose loaded airtime of Kenyan Shillings 800 to • Right to be Heard purchase the 1.5GB internet bundle on • Right to Redress rd 3 March 2012, and then I got a message • Right to Consumer to wait for my bundle to be activated. After Education and three visits and many calls I was told that • Right to a Healthy there is no credit on my phone. Due this Environment harassment and forgery I am switching to another provider”. The comments, under effectively play their role. The judiciary, protection tax or fund, so that these this post had several similar and even more legal fraternity, trade unions, media, CSOs, resources could assist consumer pestering experiences from others. parliamentarians and consumers ought to organisations. CUTS Nairobi participated A Zambian newspaper reported this be activily engaged. actively with other organisations in a public harrowing story that “Some broiler To generate awareness on consumer event organised by the Competition chicken breeders in Kasama (Zambia) were protection issues the ‘World Consumer Authority of Kenya. reportedly mixing feed with Antiretro Viral Rights Day’ (WCRD) is observed every Many consumer protection civil society (ARV) and contraceptive drugs to feed year on March 15, across the globe. It is organisations (CSOs) are working towards their chickens. Sources said that most of celebrated to mark the historic address safeguarding basic consumer rights. What the chicken breeders were using the drugs, made by the US President John F is required is to strengthen the consumer so that the chickens could grow fat and Kennedy on March 15, 1962 in which movement for mobilising citizen action faster. Chicken breeders were using the he was the first world statesman to set out and solidarity. WCRD is an occasion for said drugs were endangering consumer a vision of consumer rights and recognise promoting basic rights of all consumers, safety, which is a serious offence, according the importance of consumers as a group. demanding that those rights are respected to the laws of Zambia. CUTS has been at the forefront of and protected; protesting about the market In Zambia, a new Competition and the consumer movement in India, over abuses and social injustices, which Consumer Protection Act, 2010 has been the years. CUTS centres in Accra, Nairobi undermine them. enacted. The new law aims towards and Lusaka have been implementing addressing some of the flaws of the projects and participating in relevant IN THIS ISSUE previous law regarding consumer discussions to raise the ante on consumer Loans for Farmers’ Benefit .................. 2 protection issues. In December 2012, the issues across Africa. Easing the Maize Shortage ................... 3 Parliament of Kenya passed the Consumer To mark WCRD 2014, CUTS, Accra Simplifying Trade Procedures ............. 4 Protection Act 2012 into law. The Act organised a ‘Policy Roundtable’ where well EAC Agrees on Grain Standards .......... 5 came into force on March 14, 2013. Prior versed scholars and practitioners in Paying More for Electricity .................. 6 to the enactment of the Act, Kenya did consumer rights and regulatory issues came not have a specific law governing together to discuss the theme “Consumer consumer protection. It is evident, Welfare through Effective Regulatory however, from the above two cases that Actions”. CUTS Lusaka participated in a enforcement remains weak. multi stakeholder event and advocated CUTS Africa Email: [email protected] (Lusaka) For the legislations to be effectively with the Government of Zambia to Email: [email protected] (Nairobi) enforced, all key stakeholders should consider coming up with a consumer Email: [email protected] (Accra) Website: www.cuts-international.org/ARC Economics and Development Investment Deal Signed Commission (AUC) project that the EAC between $427 billion and $488 billion, Kenya has signed a deal with Ghana bloc will post one of the highest economic leaving South Africa a distant second. On to enhance trade and investment as part growth of all the five regions in the the downside, it would widen inequality of an ongoing government drive to continent while registering a jump in new and by lifting Nigeria from an officially strengthen economic ties with other investments. low income to a middle income country, African countries. The agreement, signed But the growth will still not be would reduce the amount of foreign in Addis Ababa by the Foreign Affairs enough to pull the region’s growing development aid it received. Cabinet Secretary, Amina Mohamed and population out of poverty and create (PN, 18.03.14) her Ghanaian counterpart, Hanna Tetteh enough jobs, the economists warned. is to pave the way for greater co-operation Growth is expected to surpass 7 percent Bilateral Treaties in Trouble in the energy, agriculture, education and in the current year, with Rwanda and The tide is turning against investment tourism sectors. Tanzania topping the charts. treaties that allow foreign investors to take Mohamed also committed to the (TEA, 29.03.14) up cases against host governments and country on setting up a High Commission claim compensation of up to billions of in Ghana. She said, “The potential for Nigeria: Largest African Economy dollars. Several countries have begun trade between the two countries is On March 31, 2014 Nigeria is going reviewing these agreements, prompted by enormous and disclosed that Kenya will to shoot past South Africa to become the the number of cases brought by foreign open a High Commission in Ghana within largest economy in Africa. Nigeria is companies who claim that changes in the first half of the year” , reads part of a rebasing its calculation of Gross Domestic government policies affect their future statement from the Presidential Strategic Product (GDP), from the current base of profits. Communication Unit (PSCU). 1990 to 2010. Essentially, this will mean Indonesia and South Africa are among Mohamed spoke from Kenya’s that GDP will give greater weight to the many countries that have faced such cases. Embassy in Addis Ababa, ahead of the new sectors of the Nigerian economy that South Africa had been sued by a British 22nd Ordinary Summit of the African have become more important, since 1990, mining company, which claimed losses Union Heads of State and Government. such as telecoms and IT. after the Government introduced policies (DN, 30.01.14) Nigeria’s nominal GDP is presently to boost the economic capacity of the blacks about $305 billion and South Africa’s is to redress apartheid policies. Rise in EAC Investments about $350 billion. Rebasing will boost Indonesia has given notice it will Investments in East Africa are expected Nigeria’s GDP by 40 to 60 percent, terminate its bilateral investment treaty to rise sharply in the current year, riding according to Bismarck Rewane, MD of (BIT) with the Netherlands, according to on falling inflation and growing consumer Nigeria’s Financial Derivatives Company, a statement issued by the Dutch embassy demand. This positive outlook defies the at the Gordon Institute of Business in Jakarta. “The Indonesian Government spillover political risks from the ongoing Science. However, Annabel Bishop of has also mentioned it intends to terminate conflicts in South Sudan, Somalia, DR Investec Bank and Yvette Babb of all of its 67 bilateral investment treaties”, Congo and the Central African Republic. Standard Bank did not foresee any great according to the statement. Economists from the United Nations economic impact on South Africa. (TSO, 25.03.14) Economic Commission for Africa That means Nigeria’s GDP will (UNECA) and the Africa Union immediately expand to somewhere CSOs against EPA The civil society organisations (CSOs) Loans for Farmers’ Benefit and private sector groups have increased mall-scale farmers are set to get $50 million (Sh4.3 billion) loans, over the next three pressure on the Government not to sign Syears from four financial institutions in Kenya. The risks of which have been the Economic Community of West underwritten by the Treasury. Agricultural Finance Corporation, Barclays, Co-op and African State (ECOWAS) and European K-Rep banks signed agreements to provide the credit. Union Economic Partnership Agreement The Treasury has set aside www.indybay.org (EPA), warning that the agreement will Sh860 million to help the permanently lock the country’s economy institutions offset risks associated deeper into a primary commodity with lending to the sector that is dependence trap and derail regional prone to vagaries of weather. Treasury integration. secretary Henry Rotich said that the The organisations comprising the credit would benefit farmers Trades Union Congress, Ghana Chamber irrespective of their scale of operation, of Commerce and Industry, the Christian providers of services to farmers and Council, Socialist Forum and the the agro-processors. Economic Justice Network presented a “There are many Kenyans in petition to President, John Dramani rural areas running productive and profitable businesses
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