TIPS - 2015

The role of power pools in regional energy integration

2015-08-23T02:00:00+02:00

Session 6: A regional approach to energy resources

An integrated approach to modelling energy policy in Africa

2015-08-23T02:00:00+02:00

Session 6: A regional approach to energy resources

An integrated approach to modelling energy policy in Africa:

PAPER: Evaluating carbon taxes and electricity import restrictions - Channing Arndt, Rob Davies, Sherwin Gabriel, Konstantin Makrelov, Bruno Merven, Faaiqa Salie and James Thurlow (UNU-Wider)

This paper links a bottom-up energy sector model to a recursive dynamic computable general equilibrium model of South Africa in order to examine two of the country's main energy policy considerations: (i) the introduction of a carbon tax and (ii) liberalisation of import supply restrictions in order to exploit regional hydropower potential.

FORUM PRESENTATION: The Case for Imported Hydro Bruno Merven (Energy Research Centre/UNU-Wider)

China's engagement in Africa: What are the potential impacts on Africa's regional integration?

2015-08-23T02:00:00+02:00

Session 5: International lessons

There are huge opportunities for African countries to trade among themselves and invest in each other's economies, but the African market remains fragmented, hampering cross border trade and investments. Even though African governments are pushing for regional trade integration, challenges and difficulties exist. Limited financial resources, tariff and non-tariff barriers, the slow implementation of a protocol on the mobility of goods and services across countries, and political and economic instability and conflict in some countries have been barriers to regional integration in Africa. Regional integration has been high on African policymakers' agendas and African governments have embraced regional integration as an important component of their development strategies; including in their engagement with their foreign partners, not least so China, the focus of this particular study.

Regional integration: Lessons from Asia and Europe

2015-08-23T02:00:00+02:00

Session 5: International lessons

As Africa pursues regional integration due to increasing globalisation, the European Union is an example that Africa could learn from. The EU has been a forerunner in the movement of regional integration since the creation of the European Coal and steel Community in 1952 and the establishment of the European Economic Community in 1957 and this has since invigorated the attempts by other parts of the world to follow suit. Asia also provides valuable lessons on trade that Africa can apply in pursuing regional integration. Asian regional trade has not developed significantly until the financial crisis which forced member countries to trade among themselves in compensation of lessening trade with European and American markets. The existence of a number of regional groupings in Asia unlike in the EU could provide lessons for integration in Africa since Africa has a similar set up. Hence, integrating national policies with regional policies should be valuable to driving greater integration Africa based on regional political and economic institutions.

Regional integration through seamless trade facilitation

2015-08-23T02:00:00+02:00

Session 4: Market integration and trade

Paper to follow

What is the impact of regional trade agreements on economic growth in Sub-Saharan Africa? Case study on the Economic Community of West African States (ECOWAS)

2015-08-23T02:00:00+02:00

Session 4: Market integration and trade

Regional Trade Agreements (RTAs) and their outcomes for developmental purposes have puzzled economists and governments, motivating a considerable literature on their supposed benefits and drawbacks. At the same time, the number of RTAs in sub-Saharan Africa has exploded – a proliferation referred to by the IMF and UNECA as “Africa's spaghetti bowl”. On closer inspection, these agreements take on various forms based on a number of variables including the depth of integration, the types of member countries, and the reciprocal or unilateral application of trade liberalisation policies. The growing number, diversity and complexity of RTAs frame the pertinence of broad contextual analysis when it comes to assessing an RTA's growth impacts. As such, this paper takes on a critical engagement of the theory and empirical evidence within this debate for both intra-African and North-South RTAs to apply to a case study of the Economic Community of West African States (ECOWAS).

Review of SADC's market integration agenda: Opportunities and challenges for regional industrial development

2015-08-23T02:00:00+02:00

Session 4: Market integration and trade

Industrial development concerns have now become a priority focus in Africa. This is, in some measure, prompted by developments in commodities sectors, where the need for beneficiation of minerals and value addition of the continent's natural resources is enjoying priority focus. There is also recognition that a traditional trade and integration agenda that focuses predominantly on border issues to enhance market access, is not addressing Africa's fundamental challenges of lack of industrial capacity and diversity. In short, the capacity to produce tradeables competitively and the policy mix that will enhance this capacity, are very much occupying the minds of policymakers. The adoption of the Action Plan for Accelerated Industrial Development of Africa (AIDA) by the 10th African Union Assembly of Heads of State and Government in January 2008, is a continental policy response to these challenges. This paper focuses

on the regional aspects of industrial development and specifically, the role of the Southern African Development Community's (SADC) market integation agenda in supporting regional industrial development.

Evaluating local and regional supplier inputs to mega-infrastructure projects: Lessons from the Moatize railway, Mozambique

2015-08-23T02:00:00+02:00

Session 3: Regional manufacturing and industrial policy 2

The paper draws on a longer study which describes the transport infrastructure developments including the lead firms, the state actors, and the policy framework. Interviews were conducted with consulting engineering firms, civil construction firms, raw material providers and institutions in South Africa and Mozambique. The direct linkages to the local and regional economies are critically assessed including understanding how the investments have been organised. We assess the institutional dynamics in terms of the lead firms, the role of the Mozambique state, and influence of other organisations such as the World Bank. The study further assesses the relationship of the infrastructure investments with the development of capabilities at the local, national and regional level. The paper evaluates to what extent are local (Mozambique) and regional (especially South African) linkages being developed given competitive and procurement dynamics. Recommendations are made on local and regional capabilities development drawing from the findings, including key elements of a regional strategy for maximising the backward linkages of major infrastructure projects.

Exploring innovation in industrial development for inclusive and transformative development in Africa

2015-08-23T02:00:00+02:00

Session 3: Regional manufacturing and industrial policy 2

The Sub-Saharan Africa (SSA) region has enormous potential to exploit its large reservoir of natural and agricultural resources through diversifying its resources from a predominantly agrarian to an industrial base. There is now consensus among African leaders and stakeholders that this is a path to the promotion of sustainable development and employment creating growth. Growth of the industrial sector brings with it more high-income jobs, upstream linkages to domestic firms and triple effects throughout the economy for both formal and informal workers. However, the challenges to attain industrialisation may be more daunting than in the past. Although there has always been a strong theoretical case for industrial policy, based on market failures, the practical difficulties including the identification of firms and sectors to target, survival of inefficient firms, rent-seeking and misallocation of resources are considerable. The emergence of global value chains has affected the nature of international competition. The prominence of multi-national companies in the global economy influences access to knowledge and technology. The availability of tariffs is becoming narrower, limiting room for maneuvering in industrial policy. In recent times many SSA countries have adopted new industrial polices or industrial development framework, including Botswana, South Africa, Uganda, Kenya and Ethiopia. There is a danger, however, that the lessons from past policy failures are forgotten. In this paper we attempt to give careful consideration to these past experiences.

The potential for border development zones (BDZs) on South Africa's Northern border

2015-08-23T02:00:00+02:00

Session 3: Regional manufacturing and industrial policy 2

This paper explores the literature on the economics of border areas, and introduces the concept of a Border Development Zone. It compiles a compendium of BDZ case studies, presenting 43 examples of border development projects, and attempts to draw lessons from these experiences. It presents various policy options in designing a BDZ initiative, drawn from international experiences. It than examines the Southern African context, looking at patterns of regional integration, existing SEZ structures, and cities on the border with high potential for the development of BDZs. The central conclusion of this paper is that the two Special Economic Zone projects underway in the border towns of Mahikeng and Musina should include targeted policies that attempt to leverage their location at the border. A number of preliminary suggestions on what these policies should be are included in the final section. This paper forms the first of two studies, the second of which will greatly expand on the strategies available to develop border zones in Mahikeng and Musina.