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tralac’s Daily News Selection
The selection: Tuesday, 12 July 2016
The SADC Heads of State and Government Summit will take place in Swaziland, 30-31 August. The theme: ‘Resource mobilization for investment in sustainable energy infrastructure for an inclusive SADC’
AU Kigali Summit: 32nd Ordinary Session of the PRC opens, documentation
Dr Celestin Monga has been appointed as the AfDB’s Chief Economist and Vice President, Economic Governance and Knowledge Management
Featured interactive chart: The world’s youngest populations are in Africa (World Bank)
Structural transformation in Africa: a historical view (World Bank)
Focusing on African economies, the paper presents a country-by-country historical analysis of structural change over the past four decades. Given the varied patterns and trends in structural change across African countries, it is difficult to characterize structural change from a single, continent-wide perspective. Some countries saw an early transition of labour out of agriculture, with manufacturing absorbing this labour in the decades prior to the 1990s, while another group of countries saw a later transition out of agriculture, where the services sector played a large role in labour reallocations in the 1990s and 2000s. Finally, the paper provides a country-by-country structural transformation scorecard to assess patterns of structural change in jobs and growth. [The authors: Maria Enache, Ejaz Ghani, Stephen O’Connell]
G20 Trade Ministers’ Statement, Annexures (Ministry of Commerce, China)
To help address the global trade slowdown, we agree to improve global trade governance and remain committed to an open global economy, and will further work towards trade liberalization and facilitation. We endorse the G20 Strategy for Global Trade Growth (Annex II). Under the strategy, we will lead by example to lower trade costs, harness trade and investment policy coherence, boost trade in services, enhance trade finance, promote e-commerce development, and address trade and development. We recognize that these activities, by promoting trade opening and integration and supporting measures for economic diversification and industrial upgrading will contribute to global prosperity and sustainable development. [G20 Guiding Principles for global investment policy making]
Civil Society 20 China 2016: communiqué
We, representatives from 54 countries and regions attending the Civil Society 20 (C20) China 2016, gathered in Qingdao, China on 5-6 July for candid and in-depth discussions on the theme of "Poverty eradication, green development, and innovation: role of civil society". We share the view that, the world economy currently remains sluggish and growth lackluster; major economies lack sufficient coordination in policies and develop on different tracks; in some countries, inequality and imbalance in all their forms are increasingly prominent as unemployment rates remain high.
Investment Climate Statements for 2016 (Bureau of Economic and Business Affairs, US State Department)
The Investment Climate Statements include examples of countries and economies expanding openness to foreign investment and investor protections, as well as challenges and barriers that may exist. Topics covered for each country and economy include: openness to investment, legal and regulatory systems, dispute resolution, intellectual property rights, transparency, performance requirements, the role of state-owned enterprises, responsible business conduct, and corruption, among others. The Investment Climate Statements and related surveys of our posts highlight a variety of policies and practices that can negatively impact the environment for cross-border investment, including: rules on market access or operation and capacity and governance issues. [Uganda: Misty politics hampers trade – US (Daily Monitor]
Daniel Mminele: 'The role of BRICS in the global economy' (SA Reserve Bank)
This (topic) may have been a much easier topic a few years ago when the successes of the BRICS economies far overshadowed their weaknesses. As the challenges facing the BRICS economies have mounted, there are now many question marks over the economic power of the BRICS grouping and the ability to realistically challenge and change the global economic order to one which is more representative and fair. Indeed, BRICS is not alone in the many challenges that it faces. Both advanced and emerging economies have slowed with each facing their own set of dynamics adversely impacting growth and which inter alia require bold actions in the implementation of much needed structural reforms.[The author is Deputy Governor at the SARB. Speech delivered to the Bundesbank Regional Office] [What's going on in Europe? A view from the Deutsche Bundesbank]
Starting tomorrow, in Dakar: ECOWAS workshop on WTO’s Dispute Settlement System
ECOWAS, in line with its vision of regional economic integration, will hold a workshop, 13-15 July, in collaboration with DFID’s Trade Advocacy Fund and GIZ on identifying and resolving trade concerns that affect Member States in the context of the WTO legal system. The workshop will also introduce the Advisory Centre on WTO Law, which provides legal support to Developing and Least Developed countries in defending their legal interests in the WTO legal system.
COMESA launches virtual trade facilitation system in DR Congo
COMESA has launched the COMESA Virtual Trade Facilitation System in the DRC. The launch was conducted on the Matadi-Kinshasa Corridor which has traffic volumes of more than 1000 trucks in a month. CVTFS is an electronic system developed by COMESA not only for monitoring consignments along different transport corridors but also for integrating other COMESA trade facilitation instruments on one online platform. It constitutes a Single Regional Window that connects all Customs Offices in a transit corridor from the office of Customs, at the commencement of a journey, to the Customs office of destination. As a Single Regional Window, all customs administrations in different countries are able in real time to monitor the movement of trucks and cargo. “I look forward to the eventual rolling out of the CVFTS in the Lubumbashi to Dar es Salaam Corridor, the Central Corridor and Northern Corridor” said Director General of Excise Duty and Customs, Mr Deo Magera.
SADC: Failure to implement hampers regional integration (Mmegi)
Botswana's Investment, Trade and Industry minister, Vincent Seretse, has expressed concern at the failure by some SADC member states to implement the 15-point action matrix, saying it hampers deeper regional integration. The 15-point action matrix focuses on the review of rules of origin, completion of tariff phase downs, removal of non-tariff barriers, and facilitation or development of a mechanism to assist those member states that are not yet in the Free Trade Area to participate therein. According to Seretse, the need to finalise the trade in services negotiations has become paramount in view of SADC’s efforts to industrialise as a region. “We all know that access to cheaper services inputs is a key factor in building competitiveness of our industrial sector,” he said.
Mozambique: Providing information about trade and transport fees (SPEED)
The assignment objective was to develop communication content to enhance knowledge and information on due trade and transport related fees in Mozambique, for incoming trucks and commercial vehicles at the border port. The goal was to support the enforcement of good practice in cross-border trade in the country, curb petty corruption and reduce instances for small extortions on the main trading routes. This is expected to contribute to improve cross border trade. [Various campaign downloads, report]
Swaziland leads in cross-border trade facilitation (COMESA)
Swaziland has been named top in Africa in the management and facilitation of the Cross Border Trade, dubbed the Big Bang. It is currently ranked number 30 in the world. This is according to the World Bank, Investor Road Map rating on trading across borders. This was revealed during the 2nd Steering Committee meeting for the Automated System for Customs Data (ASYCUDA) that took place at the Royal Swazi Sun Hotel, in Ezulwini, Swaziland on 4th July 2016. The meeting brought together members of the steering committee drawn from the Swaziland Revenue Authority, the Ministries in charge of Commerce and International Trade, Finance and Economic planning.
Zimbabwe digs in heels over imports (IOL)
The country’s industry minister, Mike Bimha, however, said yesterday that the import restrictions would be reviewed, although at the moment “there is no room for reversing” the new measures. “It will take long to evaluate the impact of the new measures; we still have to give time to roll out. The private sector has been calling for this for a long time and how can you have a rethink when you have come up with a policy that supports your industry,” Bimha said. But Zimbabwe has softened on the new regulations. [SA Investment and Trade Initiative to Zimbabwe, 7-11 November]
Uganda: Trade minister outlines her 2021 Agenda (EA Business Week)
The newly reappointed Minister of Trade, Industry and Cooperatives, Amelia Kyambadde has clearly set out the agenda and areas of focus for her ministry in the period 2016-2021. Kyambadde said going forward, the priority for MTIC will include among others, expeditious completion of bills, policies and strategies under development such as Uganda Export Strategy enforcement, evaluating performance of Agencies. [Middle-income status not attainable with current growth, says NPA boss (Daily Monitor)]
SADC’s Regional appeal for humanitarian and recovery support (SADC)
The SADC Chairperson, Lt. General Dr Seretse Khama Ian Khama, President of Botswana will this month declare a Regional Disaster and launch a Regional Appeal for Humanitarian and Recovery Support (pdf) amounting to US$2.7bn. The Appeal will be a formal request to the international community to provide assistance to affected Member States. Five Member States, Lesotho, Malawi, Namibia, Swaziland and Zimbabwe have already declared national drought emergencies. South Africa has declared a drought emergency in 8 of the country's 9 provinces, while Mozambique declared a 90-day institutional red alert for some southern and central areas. [Various downloads available]
Farm input subsidy programmes: a benefit for, or the betrayal of, SADC’s small-scale farmers? (pdf, African Centre for Biodiversity)
This paper reviews the farm input subsidy programmes within countries belonging to SADC, to ascertain whether input subsidies have benefited small-scale farmers, have increased food security at the household and national levels, and have improved the incomes of small-scale farmers.
South Africa: Labour market dynamics and inequality (IMF)
Next we examine the role of unemployment in explaining the high levels of inequality in South Africa, using data from the third wave of the National Income Dynamics Study (NIDS) conducted in 2012. Our analysis (pdf) suggests that reducing unemployment by 10 percentage points would lead to a fall in the Gini coefficient from 0.665 to 0.645. This may appear small, but to achieve a similar reduction in Gini solely through fiscal transfers would require an increase in transfers by about 40% (equivalent to 3.3% of GDP in 2012 or about 11.1% of government expenditure). Therefore, without progress on reducing unemployment, reduction in inequality may be difficult to achieve through fiscal transfers alone. [The athors: Rahul Anand, Siddharth Kothari, Naresh Kumar]
Botswana: Services sector anchors economic rebound (Mmegi)
The domestic economy grew by 2.8% in the first quarter of 2016, with growth in the services sector outweighing the continued decline in mining activity. Data released by Statistics Botswana shows that the growth in Real GDP was attributed to real value added of trade, hotels and restaurants, finance and business services and transport and communications, which increased by 5.8, 5.2 and 4.6% respectively. “All other industries recorded positive growth with the exception of agriculture and mining which decreased by 3.1 and 5.6 percent respectively during the quarter under review,” said SB.
Launched: LPI's 30 percent campaign for women’s land ownership (UNECA)
On the eve of the Kigali 27th African Union Summit, the Land Policy Initiative - an initiative of the AUC, ECA and the AfDB - launched a campaign aiming at documented allocation of 30% of land to African Women by 2025. According to Ms Joan Kagwanja, Chief of Land Policy Initiative (LPI), African women have a significant role in agriculture where they contribute more than 60 percent of their labour towards food production, yet a complex set of circumstances constrain their access to and control of land under both customary and statutory realms of land governance and management.
Nepad's Ibrahim Assane Mayaki: 'The condition of women in Africa reveals the sorry state of the human condition on the continent' (WorldPost)
ECOWAS Commission workshop on climate change
Strengthening fish trade information system in Africa: AU-IBAR communique
Enhancing trade and food security in CILSS member states (FAO)
The trampling of African elephants: a matter of East, Central and North Africa versus SADC (Southern Times)
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