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tralac’s Daily News Selection
The selection: Monday, 25 July 2016
Starting today, in Kigali: the first Kenya-Rwanda women trade and business forum (25-28 July)
Tomorrow, in Accra: Ghanaian businesses to discuss BREXIT impact
UNCTAD 14 ends with adoption of two crucial documents
The two documents – Nairobi Maafikio and Nairobi Azimio – are aimed at ensuring fair trade between developing countries and developed nations as well as ensure action is taken on previous agreements. The Nairobi Maafikiano, which has focussed on four main areas and how UNCTAD is supposed to help its members in moving towards an inclusive and equitable global economic environment for trade and development. The Maafikiano document has also stated several roles UNCTAD is supposed to play in promoting inclusive and sustainable economic growth through trade, investment, finance and technology to achieve prosperity for all. [Mukhisa Kituyi: Even as the West turns its back on the world, Africa must embrace free trade]
G20 Finance Ministers and Central Bank Governors meeting: communiqué
Furthermore, to strengthen our efforts, we are updating our growth strategies to include new and adjusted macroeconomic and structural policy measures that can provide mutually-supportive benefits to growth. Our updated growth strategies and an accountability report on progress against our growth ambition will be finalized before the Hangzhou Summit. We underscore the role of open trade policies and a strong and secure global trading system in promoting inclusive global economic growth, and we will make further efforts to revitalize global trade and lift investment. We will also strive to reduce excessive imbalances and promote greater inclusiveness in our pursuit of economic growth. [IMF’s G20 inputs: Global prospects and policy challenges, Priorities for structural reforms in G20 countries, Reinvigorating trade to support growth: a path forward]
TICAD2016: over 20 African leaders expected to attend (CapitalFM)
Over 20 African leaders are expected to attend this year’s Tokyo International Conference on Africa’s Development in Nairobi. The event set for 27-28 August will have three main themes: promoting structural economic transformation through economic diversification and industrialization, promotion of resilient health systems for quality of life and promotion of social stability. President Uhuru Kenyatta will open the event, alongside Japan Prime Minister Shinzō Abe. UN Secretary General Ban Ki Moon will also attend the conference. About 5,000 delegates are expected to attend the forum. [Ghana to host 2017 Russian-African Forum in February]
The Afreximbank Annual General Meeting took place last week in the Seychelles. Selected updates: Visa system obstructing intra-African trade, Afreximbank announces 2015 performance, shows 25% income growth, Speech by Dr Benedict Oramah (President and Chairman of the Board of Directors, Afreximbank)
Prof Joseph Stiglitz, in a presentation to the Afreximbank AGM titled, ‘Can intra-African trade unlock Africa’s industrial potential’ (pdf), said that intra-regional trade could help African countries achieve necessary economies of scale. He said that Africa’s priority should be trade and the implementation of appropriate industrial and trade promotion policies to take advantage of the window of opportunities presented by the major changes occurring in the global economic landscape. The changes included the emergence of China as a very large and rapidly growing market for African exports, and not just for its natural resources, and the rising wages in that country which was creating “space” in for labour-intensive, simple manufactures that Africa could easily occupy, and eventually, for less labour-intensive and more complex manufacturers, he said.
It would also cover logistics that facilitate intra-regional trade, such as shipping equipment, railways and rolling stock, and trade facilitating infrastructure, such as power. Under the terms of a separate cooperation agreement, signed between Afreximbank and the Made in Africa initiative during the same ceremony, Afreximbank and the Initiative will also pursue the facilitation of investment flows into Africa by working with African governments to create, develop, and improve “soft” and “hard” infrastructure required for industrialization. Afreximbank will, in addition, work with the Initiative on the establishment of a pan-African equipment leasing platform to supply heavy duty and manufacturing equipment to support local content in the various sectors of the African economy.
States adopt new funding model for AU (The East African)
A technical committee composed of Finance ministers and central bank governors was also selected and is expected to come up with a roadmap in the next three months to ensure that by fiscal year 2017, the new funding model is executed. It will be included in the finance law of the respective member states. “We are not going to change the regulations (Customs) and rules of each country. We are simply going to adopt them to ensure that they provide 0.2% of that money to AU account located at the national central bank,” Dr Kaberuka said, adding that the model has been tested and proven to be successful as it is currently implemented by Economic Community of West African States for the past 12 years.
Africa50 AGM: update (AfDB)
The Chairman of Africa50, Akinwumi A. Adesina, presented to shareholders the many milestones reached by Africa50 in its first five months of operations together with the outlook for 2016, including a target to reach the $1bn mark within the next 6 to 9 months, and committing its first investments within a short timeframe. Africa50 now has a total of 25 shareholders consisting of 22 African countries, the African Development Bank, and two African Central Banks (Bank Al Maghrib of Morocco, and the Central Bank of West Africa States - BCEAO).
Ecowas Industrial Summit: update (GoG)
In an address delivered on his behalf at the opening of the meeting, President Mahama expressed optimism that the four thematic areas of the West African Common Industrial Policy (WACIP), namely agro-industry, pharmaceuticals, automotive and textiles, and garments, would impact positively on the social and environmental dimensions of industrialization as well as on the creation of quality jobs for the youth. The President of the Association of Ghana Industries (AGI), James Asare-Adjei, in a statement, noted that intra-regional trade among ECOWAS states had not been encouraging enough, citing 46%, 8% and 6% of Ghana's exports to the European Union, Chinese and ECOWAS markets respectively. [Ghana-China Investment Forum: update, Ghana becomes China's biggest trading partner in W/A: trade volumes hit $1.8bn in Q1]
Nigeria: Agriculture Promotion Policy 2016-2020 (Federal Ministry of Agriculture)
Second, FMARD will prioritize for export markets the production of the following crops and activities: cowpeas, cocoa, cashew, cassava (starch, chips and ethanol), ginger, sesame, oil palm, yams, horticulture (fruits and vegetables), beef and cotton. FMARD will also work with a network of investors, farmers, processors and other stakeholders to deepen the supporting infrastructure to ensure that quality standards are defined and maintained across the value chain. That will involve adding more testing laboratories, improving traceability of crops, disseminating intelligence on export markets and consumer preferences, etc. Our goal is to build a high quality brand for Nigerian foods based on rigorous data and processes that protect food safety for both domestic and export market consumers. [Olawale Ogunkola: How can trade policy promote sustainable agricultural development in Nigeria? (ICTSD)]
Northern Corridor: EOI for the implementation of a regional electronic cargo tracking system (pdf, AfDB)
The AfDB has secured funding from the Africa Trade Fund for undertaking a study on implementation of a Regional Electronic Cargo Tracking System and its use for Corridor Performance Monitoring on the Northern Corridor. The Bank invites suitably qualified Consultancy firms to express their interests in the following assignment: A study on the implementation of Regional Cargo Tracking System and its use for Performance Monitoring on the Northern Corridor. The Northern Corridor consists of six countries, namely; Burundi, Democratic Republic of Congo, Kenya, Rwanda, South Sudan and Uganda. The corridor also services Northern region of Tanzania and Southern region of Ethiopia.
North-South Corridor: Chinese engineers on ground for multi-billion Harare-Beitbridge road project (BH24)
Engineers from two Chinese firms awarded the $2bn tender to dualize the Harare-Beitbridge-Chirundu highway are in the country to initiate the project design, a cabinet Minister said on Friday. The highway is Zimbabwe’s busiest and is the gateway to neighbouring countries such as South Africa, Zambia as well as Malawi and the DRC. Geiger International in association with China Harbour Engineering Company Limited was awarded the tender for the dualization project. Transport and Infrastructure Development Minister Joram Gumbo said the project design would be completed by next month. [Govt to plug Beitbridge border leakages (The Herald)]
Zim, SA in bilateral talks over imports ban (The Standard)
Industry and Commerce minister Mike Bimha told Standard Business last week that Zimbabwean and South African officials met for a “routine meeting” on Wednesday to discuss bilateral issues and Zimbabwe explained the reason behind the promulgation of Statutory Instrument (SI) 64 of 2016. He said his ministry impressed upon their South African counterparts that the restrictions were necessary to grow the local manufacturing sector. “It’s not a big issue; they have to understand that we are simply taking back our jobs,” Bimha said. [SA mall investor to assess bond notes impact]
South Africa: Eastern Cape shows off trade pedigree in Africa (DEDEA)
The Eastern Cape, one of only three provinces to experience economic growth higher than the national average, continues to play a significant role in South Africa's trade, particularly with the rest of Africa. Its trade deficit, however, increased from R1.3bn in 2011 to R11bn in 2015 as the value of imports grew 14.8% a year against exports' 10%, according to the Eastern Cape Economic Review for the second half of 2015. Trade between the Eastern Cape and Africa has been positive, with the trade surplus from Africa increasing from R1bn in 2011 to R2.6bn in 2015. However, this might not last in the long term if imports continue to grow faster than exports, as they have over the past five years. The SADC region remained the major export destination, with exports growing 9% to R4.8bn over the past two years. [Provincial Review 2016: Eastern Cape (pdf, TIPS)]
Dar port stakeholders petition govt over VAT on transit cargo (IPPMedia)
In their latest attempt to convince the government of President John Pombe Magufuli who has ruled out any possibility of abolishing value added tax imposed on transit cargo ancillary services, three major players of the country’s prime port are now talking numbers. The statement by Tanzania Truck Owners Association, Tanzania Shipping Agents Association and Tanzania Freight Forwarders Association further noted that the TRA analysis also overlooked the Dar-es-Salaam Port to Uganda route whose cost per tonne is US$ 4,435 compared with Mombasa Port route which charges US$ 2,712 or less US$ 1,723. “This is why Mombasa Port is enjoying five million metric tonnes of goods as compared to Dar-es-Salaam Port which has 200,000Mt only to the same destination,” the statement argued.
Uganda: Stop political arrests or lose US trade – Obama (Daily Monitor)
The United States government has warned that Uganda risks being kicked out of the Africa Growth Opportunity Act partnership if the government does not stop abusing human rights of its citizens, and harassment and persecution of the Opposition. “As you know, the African Growth and Opportunity Act requires an annual review of compliance with eligibility criteria for each country. As we approach the Agoa country eligibility review for Uganda for 2017, I wanted to make you aware that the US government has identified some serious concerns related to the government of Uganda’s adherence to certain Agoa criteria,” President Obama’s adviser on trade, Ambassador Michael B.G. Froman, wrote to Uganda’s minister of Trade and Industry, Ms Amelia Kyambadde, on 17 June. Uganda's Minister for Information and ICT, Mr Frank Tumwebaze, said the Uganda government will not be bothered by the US statements, which he dismissed as subjective judgments.
Mauritius-European Free Trade Association: update (GoV)
Development Cooperation Forum: downloads (ECOSOC)
Negotiating natural resources contracts: AfDB capacity building workshop
Ethiopia suspends medicine import from 11 Egyptian manufacturers (The Independent)
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