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 within the agricultural value Mahama in Accra ahead of a meeting of chain sector that have remained excluded from financial services from the mainstream the ECOWAS Council of Ministers in financial sector” , said Rotich. The farmers and other players in the sector will be lent the Yamoussoukro, Cote d’Ivoire, from 25-26, money at an interest of between 10 percent and 15 percent (DN, 26.03.14) March 2014. (BT & FT, 27.03.14)

2 Year 13, No.1/2014 Tradequity News on Trade Spur Online Trade Kenya’s unique cashless system Easing the Maize Shortage involving use of mobile phones to settle enya will consider importing maize in May when the domestic stock is expected to payments for utilities and buy goods has Krun out following a deficit of 10 million bags in last season’s output. Agriculture created a fertile ground for the launch of Secretary, Felix Koskei said that the Government expects up to three million bags an online based financial system. The US through cross-border trade based firm, Research and Markets said that with Uganda and Tanzania to mass adoption of cashless services by alleviate a shortage of 10 Kenyans could be taken to new heights million bags before the next with the use of wi-fi enabled phones that harvest. “We expect to ease the support online based transactions. shortage by getting maize Wireless Internet ‘hotspot’ service stocks from the East Africa offered free of charge by businesses to Community bloc. provide wi-fi to their customers, said the Uganda and Tanzania www.kplu.org report, would enable buyers to use their traditionally supplement phones to settle payments without use of maize production in Kenya the traditional banking channels. through cross border business “Increased global penetration of but this may be constrained by competing export destinations. Uganda, which on smartphones use compounded with the average produces surpluses, has from 2011 been exporting up to 60 percent of its maize widespread use of NFC (near field to South Sudan, owing to high demand and good prices there while Tanzania has found communication) technology in the form a ready market in nearby Malawi, which is facing an acute shortage. (BD, 13.01.14) of embedded tags is driving the mobile wallet market”, according to the report. of losing investors in the sector. Reports agency business. “People no longer have (BD, 13.01.14) indicate that some dealers from Burundi any excuses not to pick their cargo from and Uganda are stuck with their Mombasa and most importantly, they do Rules to Facilitate Regional Trade merchandise abroad, after processors not have to rely on agents or other people The EAC Secretariat has issued new began rejecting minerals from countries thousands of miles away for information regulations to enhance the that do not have acceptable standards. regarding their cargo,” URA operationalisation of the EAC Others have opted for lesser returns as they commissioner customs, Richard Standardisation, Quality Assurance, trade through third parties. Kamajugo said. (TEA, 25.03.14) Metrology and Testing Act (SQMT) of “The practice has been that if you mine 2006. The regulations geared towards in Uganda and sell it to a buyer in Kenya AfDB Moots Trade Strategy facilitating regional trade were approved or Tanzania, who exports it overseas. Why At the African Congress on by the Council of Ministers and are issued should we sell our gold through Tanzania Conservation Agriculture (ACCA) held in line with Article 6 of the Protocol on and not directly on the international in Lusaka, African Development bank Establishment of the EAC Common market”? asked Prince Opoku, Operations (AfDB) Country Director to Zambia, Market, with reference to free movement Director at Blaze Metals Resources Ashanti Kwesiga said he has observed that Africa of goods. Ltd. “We have gold which was exported is losing more than $30 billion in trade Article 6 of the Protocol stipulates officially from Uganda but has not been due to lack of efficient infrastructure in among other laws that EAC SQMT Act, sold in Dubai. All refineries are rejecting most countries. 2006, shall govern the free movement of the source of origin”. (TEA, 22.03.14) Kwesiga retaliated that AfDB had put goods and regulations made there under. up a transformation strategy, which would The regulations include: The EAC SQMT Speed up Cargo Clearance run from 2013 to 2022 to change the (Product Certification in Partner States) Cargo containers destined for Uganda landscape of trade in Africa. He told the Regulations, 2013; The EAC SQMT through the port of Mombasa will be delegates that the strategy among other (Designation of Testing Laboratories) publicly listed to help ease congestion at things would scale-up agricultural Regulations, 2013; and The EAC SQMT the region’s main gateway facility through financing and technology as well as (Enforcement of Technical Regulations in efficient and timely flow of information. support regional integration. Partner States) Regulations, 2013. A special online portal will provide an Kwesiga said that over 20 percent of The EAC SQMT (Product account of all container shipments bound population live in fragile states with weak Certification in Partner States) Regulations, for Kenya’s largest export market including economic institutions and that, more jobs 2013 provides for certification bodies in the date and time of arrival at the port of are needed and that this could only be the Partner States on the basis of Product Mombasa, the consignees and the attained by supporting value chains. He Standards. (TS, 20.01.14) duration at the facility. then revealed that more than $35 million This follows a pact signed between has been committed towards reducing Embargo Hurting Trade the Kenya Ports Authority (KPA) and fragility while $100million would be The slow pace in establishing a Uganda Revenue Authority (URA) to spent on research, building bridges, roads mineral certification system for the Great hasten cargo clearance in what is expected and markets, which were aimed at Lakes Region is putting countries at risk to shake up the clearing and forwarding increasing trade. (ToZ, 25.03.14)

Tradequity Year 13, No. 1/2014 3 News on Trade Simplifying Trade Procedures he World Bank (WB) has urged Zambia to forge trade blocs with T neighbouring countries to help tackle the rising cost of agricultural inputs. Country Director for Zambia, Malawi and Zimbabwe, Kundhavi Kadiresan said that Zambia had the capacity to increase non traditional exports (NTEs) looking at the potential, but needs more trade engagements with the neighbouring countries. Kadiresan said that Zambia and other countries needed to unbundle http://allafrica.com trade barriers by simplifying trade procedures, especially in the area of using multiple paper work. The former Bank of Zambia Governor, Caleb Fundanga said that countries in Africa should endeavour to remove tariff barriers to international and regional trade. Fundanga also pointed that despite commitments by member countries in the regional bloc, most countries were still protecting their domestic product, which calls for more efforts by the regional groupings. (ToZ, 13.03.14)

No Benefits from AGOA This is because demand is becoming Concerned with SA Trade Barriers Businesses in Ghana have not made increasingly concentrated in cities, which The Zambian Government has the most of the enormous opportunities need to be fed from food production areas expressed a concern over the trade barriers that the US Government’s African throughout the continent. (AD, 21.03. 14) South Africa has imposed on some Growth and Opportunity Act (AGOA) Zambian products leading to trade presents, Haruna Iddrisu, Trade and Wide Logistics Gap imbalances between the two countries, with Industry Minister has stated. AGOA is The gap between the countries that earnings at K5.65 billion per annum. the US Government’s trade initiative with perform best and worst in trade logistics is Commerce, Trade and Industry 39 Sub-Saharan African countries. still quite large despite a slow convergence, Minister, Emmanuel Chenda said that the There are over 7,000 products that since 2007. According to a new WB Government was negotiating with South are available, under the AGOA and Group report, the gap persists because of Africa to relax its rules on the export of Generalised System of Preferences (GSP) the complexity of logistics-related reforms Zambian products to that country’s list to enter the United States duty-free. and investment in developing countries. market. Chenda said this during The programme has spurred the export Despite the almost universal recognition deliberations in Parliament following a of processed agricultural products, that poor supply chain efficiency is the question on why South Africa was not manufactured goods, apparel and main barrier to trade integration in the allowing the export of grapes from Zambia footwear from qualifying nations. modern world. on suspicion that they were infested Iddrisu made his comments at a The report, “Connecting to Compete with a pest known as Maconellicoccus stakeholder forum in the National Crusade 2014: Trade Logistics in the Global Hirsutus. against Trade in Pirated Ghanaian Textile Economy”, ranks 160 countries on a Earlier, the Commerce Deputy Designs and Trademarks held in Accra. number of dimensions of trade including Minister, Richwell Siamunene said that a (BT & FT, 07.02.14) customs performance, infrastructure pest risk assessment was conducted and quality and timeliness of shipments, that submitted through the Zambia Agriculture Mounting Food Import Bills have increasingly been recognised as Research Institute (ToZ, 24.02.14) Africa is not achieving its potential in important to development. (WB, 21.03. 14) food trade. The growing demand for food Growing Trade Ties AMCHAM to Foster Trade is increasingly being met by imports from Gordon Chakoadza, Austrade’s Trade The American Chamber of the global market. This, coupled with Commissioner in Ghana said, “As one of Commerce (AmCham) has resolved to rising global food prices is leading to ever the fastest-growing economies on the double its efforts in promoting trade, mounting food import bills. continent, Ghana stands on the brink of a investment and development between Business as usual with regards to food new phase of development, and Australia’s Africa and the United States of America. staples in Africa is not sustainable. stands ready to assist Ghana in going even It has also stressed, as a group, to lobby Fortunately, there is a solution to this further”. the US Government to renew the Africa problem within Africa. The potential to Through investment and the transfer growth and Opportunity (AGOA) in increase agricultural production is of skills and technology, Australia has 2015 while working towards building the enormous. engaged with Ghana’s potential, American brand on the continent. Yields for many crops are a fraction of particularly in the mining sector. Several In a resolution at the 4th Annual what farmers elsewhere in the world are Australian institutions and companies in AmCham Summit (in Africa), it further achieving, and output could easily increase other sectors – including education, resolved to “support the various Africa twofold or threefold if farmers were to agriculture and water management are regional trade blocs” efforts at regional use updated seeds and technologies. Large excited about the commercial opportunities integration and the growth of the swathes of fertile land in Africa remain that Ghana will offer in the future. continent through intra-continent trade”. idle and an open regional trade is essential. (BT & FT, 27.01.14) (DG, 03.03.14)

4 Year 13, No.1/2014 Tradequity Regional Round Up Shaping Single Customs hampering progressive connectivity in Services, Agriculture Policy, Revenue A high level technical team has been among South African Development Mobilisation and Industrial Policy and formed to strategise implementation of the Community (SADC) countries. sharing ideas at the EAC Headquarters in recently launched EAC Single Customs Mukanga said that Zambia had been Arusha,Tanzania. Territory. Heads of the revenue authorities recognised as a hub of rail and road The East African Business Council in Kenya, Uganda and Rwanda have transport as well as broadband and optic had a chance to make a presentation on agreed that the initiative will be fibre connectivity to South Central Africa. their strategic plan, particularly on issues, harmonised within the wider EAC Single He, however, noted that the Kasumbalesa such as institutional strengthening, policy Customs Territory (SCT). border issues were slowing the country’s and advocacy, value adding services and Kenya Revenue Authority (KRA) progress in connecting the region to membership development, increased Commissioner General, John Njiraini who Central Africa, through the Democratic visibility and partnerships creation and chaired the meeting, reiterated the Republic of Congo (DRC). maintenance. commitment of the regional revenue “We are aware that some existing The EAC Deputy Secretary General, authorities to the integration process and, border conflicts like at the Kasumbalesa Jean Nsengiyumva, recommended that for particularly, the implementation of the border control are slowing the pace of the Regional Economic Communities SCT. progress in this committee’s goal to (RECs) to be strong they ought to share He also said that the initiatives, under connect Zambia to the Nacala corridor and best practices, which will lead to the trilateral arrangement by Kenya, southern African countries to the north development of not only the RECs but Africa, at large. (EAC, 31.03.14) Uganda and Rwanda launched recently via Congo DR”, Mukanga said. The would be harmonised. EAC Customs Kasumbalesa issue has been on the table Director, Kenneth Bagamuhunda noted under the Common Market for Eastern that the Single Customs Territory was one and Southern Africa (COMESA) and EAC Agrees on of the key regional integration priority SADC meetings. (Post Newspaper, 01.02.14) Grain Standards policy interventions adopted by both the The East African Community members Zambia Gets Investment Offers Council of Ministers and the Summit to have agreed on new standards for grain, Zambia has received offers to invest in consolidate the EAC Customs Union. which are expected to ease trade within (TS, 22.01.14) five COMESA and SADC countries, the bloc and the overlapping COMESA. which have opened their economies to Towards Deeper Integration Foreign Direct Investments (FDIs). Seven priority areas have been The offers came shortly after the end identified for implementation in the of the 17th COMESA Summit which was current year as Southern Africa intensifies held in the Democratic Republic of Congo efforts to deepen integration for socio- (DRC). Foreign Affairs Minister, Wylbur economic development. The priority areas Simuusa, said that countries that were were adopted by the SADC Council of ready to embrace Zambia as a strategic www.haberdar.com Ministers. investment partner include Congo DR, The Ministers agreed to intensify Zimbabwe, Mauritius, Kenya and efforts towards finalising the review process Uganda. of the Regional Indicative Strategic Simuusa further stated in an interview Development Plan (RISDP) and that likewise, countries from the consolidation of the SADC Free Trade COMESA and SADC regions have also Kenya, Rwanda, Burundi, Tanzania Area (FTA) launched in 2008. pledged to extend their investments to and Uganda have harmonised the Other key priorities are conclusion of Zambia and added that Zambia was ready standards to eliminate trade barriers after negotiations to establish a single market to take up the challenge. “The aim is to they were adopted by the Council of covering 26 countries in Eastern and establish investments both ways and as Ministers. “The grain sector has been faced Southern Africa; fast-tracking Zambia, we are ready to take our with the challenge of poor quality across implementation of the Regional investment there just as much as we are the region resulting from low standards, Infrastructure Development Master Plan; ready to attract their Foreign Direct which has subjected traders to losses as a strengthening measures to improve food Investments (FDIs)”, he said. result of their grains being rejected at security and implementation of the HIV (ToZ, 09.03.14) border posts”, said East African Grain and AIDS cross-border initiatives. Council (EAGC) Chairman, Judah Bett. (SANF, 26.03.14) SACU Benchmarks with EAC Kenya does not produce enough Senior officials from South African maize to meet its demand, which stands Slowing SADC Connectivity Customs Union (SACU) together with at three million bags per month and relies Transport and Communications their counterpart EAC concluded a on Uganda and Tanzania for Minister, Yamfwa Mukanga said that meeting aimed at benchmarking similar replenishment. In addition, Kenya also border conflicts between Zambia and the activities, learning the best practices on faces a shortage of 10 million bags in the Democratic Republic of Congo are areas, such as Competition Policy, Trade current year. (BD, 27.01.14)

Tradequity Year 13, No. 1/2014 5 Environment/Consumer Issues Ghana’s Climate Change Policy in a new set of regulations, allow the CCK They are also expected to bring down A national policy implementation or its agents the leeway to obtain the cost of courier services: Analysys Mason strategy document has been developed by information or data held by telecoms recommended that the monopoly that the Ghana to guide the implementation of operators. PCK has enjoyed for decades to deliver all the national climate change policy “A licensee shall grant the Authority’s items weighing up to 350 grammes to be (NCCP). The strategy was mapped out officers access to its systems, premises, phased out, to allow other couriers to of the NCCP to operationalise its facilities, files, records and other data to participate. implementation. enable the Authority inspect such systems, Currently, other operators delivering The Deputy Director in charge of premises, facilities, files, records and other such items charge at least five times the Climate Change at the Ministry of data for compliance with the ACT and standard tariff, making it prohibitive for Environment Science, Technology and these regulations”, state the proposed customers. “The cost should be reduced Innovation (MESTI) said that the policy regulations. to enable us compete fairly with PCK. One will provide a practical strategy towards Consumer rights activists said that the cannot pay $2.35 to us while PCK charges achieving the tenets in the NCCP regulations are particularly, in breach of $0.35,” said Charity Mwanzia, General document. people’s right to privacy as provided for in Manager, Operations at M&S Logistics In addition, the draft document had the Constitution. Article 31 of the Ltd., a cargo agents’ and freight forwarders identified problems associated with climate Constitution guarantees citizens’ right to company. (TEA, 22.03.14) change, their causes and had outlined privacy, including the right not to have strategies in solving the problems. The the privacy of their communications Tough Talks on Service Quality document was put together by a 10 infringed upon. (BD, 20.01.14) The Public Utilities Regulatory member consortium made up of Commission (PURC) has hinted at adopting consultants and experts in the various Fall in Courier Services Cost new measures to deal more decisively with climate change issues addressed by the Kenya is seeking far-reaching changes complaints by consumers of poor quality policy. (DG, 26.03.14) in its courier business, which will deny service from the power utilities. the state-backed Postal Corporation of The PURC’s Executive Director, Telecom Users’ Privacy Trashed Kenya exclusivity, ease licensing Samuel Sarpong said his outfit is in the Telecommunications Industry procedures and cut import taxes on parcels. process of acquiring Power Quality Regulator, Communications Commission The recommendations by Analysys analysers to monitor the quality of service of Kenya (CCK), is set to acquire a new Mason, a global research firm to audit the provided by the Electricity Company of set of powers that will give it unfettered courier business, are expected to help Ghana (ECG). The Commission, he access to private or confidential double the sector’s worth to at least Ksh14 added, is also setting up a Metering and information on consumers without a court billion ($165 million) in the coming two Power Quality Testing Laboratory to order. The powers, which are contained years. investigate complaints related to all types of meters. (BT & FT, 20.01.14) Paying More for Electricity Key to Consumer Protection onsumers will pay more for electricity as a new charge on hydro power The Competition and Consumer generation takes effect. The new levy of five cents per kWh introduced by the C Protection Commission (CCPC) has Water Resource Management Authority is charged to the Kenya Electricity identified traditional leadership as central Generating Company for use of water to produce power. and key stakeholders in the overall consumer protection strategy in Zambia. Public Relations Officer, Hanford Chaaba said that total consumer protection could neither be achieved single-handedly by the CCPC nor the Government, but requires concerted efforts from various stakeholders, such as

www.ecgonline.info traditional leadership, institutions of learning and members of the public. The extra cost is passed on to consumers in their monthly bills from Kenya Chief Inyambo, Great African Chief Power. Efforts by the Consumer Federation of Kenya to block the new levy have of the Lozi people, Zambia thanked the failed, meaning consumers will have to shoulder the additional fee. “We have contested CCPC for what he termed as a ‘sacred this but they decided to gazette it. It is an apt example of how regulators abuse their Mandate to protect consumers’ and powers to impose and collect levies to cover their inefficiencies,” Cofek Secretary challenged other consumer protection General, Stephen Mutoro said. bodies and regulatory agencies to emulate Going by the estimated 630 million units consumed each month, power users the CCPC by not only restricting their countrywide will pay an extra Sh3.3 billion. Kenya Power statistics showed that services to urban areas, but also consider hydro contributes about 43.3 percent of the electricity mix closely followed by extending them to rural areas, such as diesel generators at 31.8 percent. (DN, 11.02.14) Mwandi district. (ToZ, 07.01.14)

6 Year 13, No.1/2014 Tradequity Special Feature Regional Trade: A Catalyst for Growth and Sustainability of Small Businesses in the Southern African Region*

o mark its 30th Anniversary, CUTS International regardless of its source”. He was of the view that SMEs had a Thas been organising a series of lectures, with eminent scholars tendency of exporting for the sake of prestige and not on the and practitioners around the world going along CUTS’ work basis of viability. agenda. The lecture series aimed to shape CUTS’ future interventions to help in promoting inclusive growth from the Speaking on the theme – trade as an engine to drive economic perspective of their impact on consumer welfare in the light of diversification, inclusive growth and job creation, Kundhavi contemporary policy discourse on trade, regulation and Kadiresan, World Bank, Country Director, Zambia said that governance. Zambia had a stable macroeconomic framework and good business environment. These provide a solid foundation for The 16th Lecture was organised on March 10, 2014 in Lusaka, building competitiveness and expanding trade. Trade can play a Zambia and was delivered by Caleb Fundanga, former Governor, powerful role in raising incomes and creating jobs in Zambia. Bank of Zambia and currently President, Institute of Finance Imports can provide access to efficient inputs and create and Economics (Zambia). Other panellists included Felix competition that pushes firms to becoming more efficient. Mutati, MP and former Minister of Commerce, Trade and Industry, Zambia; Kundhavi Kadiresan, World Bank Country She also stated that the Diagnostic Trade Integrated Study (DTIS) Director for Malawi, Zambia and Zimbabwe; Yvonne Chileshe, prepared by the World Bank finds that Zambia’s exports of copper Director of Foreign Trade, Ministry of Commerce, Trade and and other products have grown fast in the past decade. Moreover, Industry; Edwin Zulu, Coordinator, Zambia-COMESA SME non-traditional exports (NTEs) have also grown and reached Toolkit Project and Dorothy Tembo, former EIF Executive US$3.2bn in 2012, up from US$0.5bn in 2003. Director and Vice Chair of CUTS Lusaka Board. Yvonne Chileshe said that regional trade for Zambia would only Rijit Sengupta, , Regional Director, CUTS Africa explained that be meaningful to their country if Zambia had value-added the idea of having CUTS 30th Anniversary celebrated across products to sell. She further stated that the Government is trying regions where CUTS works and are important for its activities, to address the supply-side constraints using different plans and was envisioned by CUTS’ Secretary General, Pradeep S Mehta. policies, such as the Sixth National Development Plan (SNDP) and the Commercial, Trade and Industrial Policy (CTI) etc. Chair, Dorothy Tembo congratulating CUTS International Lusaka for its work said that CUTS remains a very faithful partner Edwin Zulu observed that there was some confusion in handling at global, national and regional level on trade related issues. Tembo SMEs policies at Zambia Development Agency (ZDA). Regional added that the potential that trade holds to contribute to the growth being the key but there was need for SME-specific development agenda for all countries is a fact well acknowledged. programmes and to quickly implement policies that the Key in all this drive is the need to change the livelihoods, especially government and World Bank has been outlining and also to those that are most vulnerable in our societies and that was engage the Zambian SMEs in the process, closely. where CUTS comes in as a key partner to work with. FORTHCOMING REPORT Caleb Fundanga used the economic theory of comparative advantage (by David Ricardo) and the next best alternative CUTS Lusaka to release a report in May 2014 theory to stress the need for external trade in development and entitled, “Assessing the extent of Trade Policy use of regional markets as alternatives to lack of access to global Mainstreaming in the Development Agenda – market, respectively. A Case of Zambia”. In his lecture, Member of Parliament, Felix Mutati noted that To get a copy email us at: [email protected], the small scale enterprises (SMEs) should exploit the local markets [email protected] before looking beyond borders because “a dollar was the same

* Excerpts from CUTS’ 30th Anniversary Lecture held on March 10, 2014, Lusaka (Zambia)

Tradequity Year 13, No. 1/2014 7 Publications

Unshackling the Growth of Kenyan SMEs he report gives an understanding of the current and past regulatory and Tinstitutional framework inclined to SMEs and evaluates their effectiveness in supporting local development of SMEs at the country level. It also provides evidence for the development of policy choices to support the development of an SME strategy for country governments and gives some understanding on mechanisms through which the developed government systems will contribute to innovation and value addition activities at the country level. The study considered the sub-sectors with the most signified economic activity in one country per region in Kenya and analysed economic activities that are comparable across any two countries. http://www.cuts-international.org/ARC/Nairobi/pdf/ Unshackling_the_Growth_of_Kenyan_SMEs.pdf

What Will East Africans Eat in 2040? Who Will Produce the Food and How? he study report explores the existing dilemma in realising sustainable food Tsecurity in the East African Community (EAC). It analyses whether the EAC has positioned itself to attain sustainable agricultural production and food security for its population, given the enormous challenges and uncertainties lying ahead. The report further underscores the current competition for scarce agricultural resources as a future threat to food production, especially where bio-ethanol production, increased urbanisation and industrial development will mean competition for critical resources such as land, water and energy. http://www.cuts-international.org/ARC/Nairobi/pdf/ What_Will_East_Africans_Eat_in_2040_Who_will_produce_the_Food_and_How.pdf

e put a lot of time and effort in taking out this Wnewsletter and it would mean a lot to us if we could know how far this effort is paying off in terms of utility to Please e-mail your the readers. Please take a few seconds and suggest ways comments for improvement on: and suggestions to • Content [email protected] • Number of pages devoted to news stories

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Sources AD: Addis Fortune; BD: Business Daily; B&FT: Business & Financial Times; DG: Daily Graphic; DM: Daily Mail; DN: Daily Nation; EAC: East African Community; SANF: South Africa News Features; TEA: The East African; ToZ: Times of Zambia; TSO: The Star Online; TS: The Standard; WB: World Bank

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: [email protected], 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: [email protected], and CUTS Accra, 30, Ground Floor, Oroko Avenue, Near Central View Hotel & ATTC, Kokomlemle, Accra, Ghana, Ph: +233.30.224.5652. 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: [email protected], 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 a reference for further information and do not indicate the literal transcript of a particular news/story.