News
tralac’s Daily News Selection
The selection: Friday, 27 May 2016
Launched today: Tanzania Service Delivery Indicators report (World Bank)
tralac Newsletter: Financial services in the TPP and the interests of developing countries
EAC Budget Speech for 2016/2017 financial year (EAC)
The 2016/2017 Budget is a drop down from $110,660,098 presented to the House in the previous financial year. The Budget prioritizes the full implementation of the EAC Single Customs Territory, enhanced implementation of the EAC Common Market Protocol especially additional commitments and interconnectivity of border immigration systems and procedures across Partner States and enhancement of productivity and value addition in key productive sectors. The budget also takes cognisance of development of cross-border infrastructure and harmonisation of laws, policies and standards in respective sub-sectors, implementation of a liberalised EAC airspace, enhanced implementation a One Area Network in telecommunications and the implementation of EAC Peace and Security initiatives. The 2016/2017 Budget is to be financed by Partner State contributions ($47,565,377) compared to $47 566,973 in the current financial year; Development Partners support ($46,717,601) which is a significant drop from $58,555,635 of the previous year. The Member Universities will inject $431, 923, General Reserves $6,354, 248 and miscellaneous revenue $305,440. [Budget speech, pdf]
The crystal ball analysis for future African trade (tralac)
The main feature of global trade since at least 2000 has been the relentless rise of exports from the BRIC countries (Brazil, Russia, India and China) and, in particular, China. Much of this increase has been at the expense of the European Union (EU) and to a lesser extent the United States of America (US), while Africa has slowly increased its share of global exports and imports. This BRIC growth has been most clearly seen in manufacturing exports and natural resource imports. Are these trends going to continue? Over the period to 2025 the global growth in BRIC dominance is likely to continue but at a slightly modified rate, with China driving these BRIC results. We can also expect similar increases in the shares for the rest of the world as we have defined it in this paper, with a commensurate decline in the trade performance from the EU and to a lesser extent the US. Africa is projected to continue its modest rise in the global importance of both exports and imports. [The analysts: Hans Grinsted Jensen, Ron Sandrey]
Steven Radelet: 'Africa’s rise — interrupted?' (IMF)
Dealing with these challenges will test the skills of Africa’s new generation of leaders. But once again, the effects are likely to vary widely: countries with the most diverse export bases will probably be affected the least, while those with narrow export bases and weak governance will suffer most. Continued long-term progress through this challenging period calls for action in four areas. [The author is Director of the Global Human Development Program at Georgetown University]
Africa Pausing (editorial comment, FINANCE & DEVELOPMENT)
Carlos Lopes: 'Inching toward integration' [A new index allows African countries to see how their regional integration efforts stack up]
Wenjie Chen, Roger Nord: 'A fork in the road' [How China’s new growth strategy could hurt Africa’s commodity-dependent economies]
Njuguna Ndung’u, Armando Morales, Lydia Ndirangu: 'Cashing in on the Digital Revolution'
Anabel Gonzalez: trade and poverty actions by the World Bank Group
In the final session today we are going to have a chance to consider these five issues in more detail, but to give you a quick preview of some of the actions we are taking at the Bank Group: We are furthering our collaboration with the WTO and other partners on advocacy, data, and supporting countries in tackling trade-related costs facing the extreme poor; We are developing new tools that will help us bring a greater focus on trade-poverty linkages to key WBG strategies like our Systematic Country Diagnostics and Country Partnership Frameworks; We are working at the country level in a number of settings to deepen the poverty impact of our trade-related projects; We continue to strengthen our capacity to address challenges related not just to trade but to complementary issues that can help increase the impact of trade reforms on poverty.
AfDB plans to expand its trade finance portfolio
According to research by the AfDB, African banks face numerous constraints in meeting the demand for trade finance. The main constraints are limited US dollar availability (by far the dominant currency in international trade, and by extension, trade finance) and insufficient limits with confirming banks for confirming letters of credit. Other constraints include small balance sheets, which tends to make single obligor limits frequently binding. These constraints also suggest that the AfDB’s trade finance program, as well as those implemented by other international financial institutions, are needed and well suited to relaxing some of the most binding constraints.
AfDB says continent far from debt crisis (Bloomberg)
Debt levels across the continent’s 54 countries average 17% to 18% of GDP, which is low, Abebe Shimeles, acting director in the AfDB’s development research department, said Thursday in an interview at the lender’s annual meetings in Lusaka. “In terms of the continent we are not even close, forget about crisis, we are not even close to a debt burden, especially the external debt,” said Shimeles. “It’s not systemic now. It’s not that all African countries are exposed to a debt crisis. The bad news is sometimes heard faster than the good news.”
Kofi Annan: 'Africa’s energy: what’s the New Deal?'
Botswana: Govt warns traders against Rand pricing (Mmegi)
President Ian Khama has issued a stern warning against retail stores that price their goods alongside or using the South African Rand. Addressing the High Level Consultative Council, he said that the practice is unfair on Batswana locals and that everybody should play a role in making sure that it does not continue. Khama said that the exchange rate between the two currencies fluctuated between 1.32 and 1.40 Rand to a Pula during recently and therefore the practice is not playing fair with Batswana consumers.
South Africa: 'State’s industrial policy needs support' (Business Day)
Our approach at the Manufacturing Circle comes down to one simple concept, which is competitiveness. We must exploit the competitive and comparative advantages of SA. The economy is a worry, and we understand that funds are tight. Amid budgetary constraints, the department’s sectoral-focused approach is an understandable way to manage limited resources. However, the department cannot do it all alone. While we are happy we have a department that supports manufacturing, we need to support it on winning greater backing from the other government departments in assisting the growth of our industrial sector. [The author, Philippa Rodseth, is executive director of the Manufacturing Circle] [SA's vehicle production may climb almost 50% by 2020]
Tanzania's steel manufacturers demand friendly tax regime (IPPMedia)
Tanzania has 21 steel industries producing approximately 200,000 tonnes of iron annually. The industry uses scrap metal and is forced to import the metal from neighbouring countries to meet demand. Reports show that between 2007 and 2012, the demand of billets by the steel manufacturing industries was between 600,000 and 700,000 tonnes, equal to the smelting of 750,000 and 910,000 tonnes of scrap metal each year. Group Chairman and Managing Director of Kamal Steels Limited, Gagan Gupta said the budget needs to walk the talk and show real implementation towards the government’s intent of industrialization. Gupta hopes that the budget will relook at procurement norms by focusing on quality cost based and bring in a single independent authority to ease confusion. “There is dire need for a strong and well-structured innovation agenda or policy for the idea of a semi-industrialised economy to be a reality,” he argued.
Namibia: Trade policy framework validation workshop (UNCTAD)
The TPF aims to help the country to, among other things diversify its exports and move away from overly dependence on one commodity, diamonds that has dominated its exports. This will include diversifying into agro-processing exports and increasing export markets at both international and regional level. [Indians contemplate N$6,2 billion investment]
Burundi: National Trade Facilitation Committee on planning the effective implementation of the TFA within the EAC (UNCTAD)
In partnership with WCO, UNIDO and the EAC Secretariat, participants of the national workshop will: share knowledge on the current status of the TFA category C measures; develop an Action Plan for their national bodies taking into consideration key regional aspects; discuss main points to prepare project proposals on “Test Procedures” (TFA Art. 5.3), “Perishable Goods” (TFA Art. 7.9) and “Border Agency Cooperation” (TFA Art. 8) at national level; present TFA Art.1 on “Publication and availability of trade-related information” and upcoming Trade Portal project in Burundi; and launch the new UNCTAD Empowerment Programme for NTFCs.
Olusegun Obasanjo: 'My journey back to the future of African farming' (Daily Maverick)
Recently, I agreed to chair the selection committee for the new Africa Food Prize, an award that aims to recognize outstanding individuals or institutions taking control of Africa’s agriculture agenda. It started out in 2005 as the Yara Prize. But moving it to Africa in 2016 and rechristening it the Africa Food Prize has given the award a distinctive African home, African identity and African ownership. It is also a substantial award: $100,000 for the winner.
Strengthening central bank communication in Southern Africa (AFRITAC, IMF)
Historic EU trade deal to be signed in Botswana (Mmegi)
UNSC's Sahel briefings on security, governance, development issues (UN)
Regulations in services sectors and their impact on downstream industries: the OECD 2013 REGIMPACT indicator (pdf, OECD)
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