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tralac’s Daily News Selection
The selection: Thursday, 1 September 2016
Summit also took stock of the status of signature, ratification and accession to SADC Protocol noting that 26 have entered into force, while the following have not yet come into force, and urged Member States that are yet to accede to these Protocols, to do so. They are: (i) Protocol on Science, Technology and Innovation (ii) Protocol on the Facilitation of Movement of Persons (iii) Protocol on Trade in Services (iv) Protocol on Environmental Management for Sustainable Development (v) Protocol on Employment and Labour (vi) the new Protocol on the tribunal in the Southern African Development Community.
New SADC publications (all pdf): SADC Energy Monitor 2016: baseline study of the SADC energy sector, SADC Gender and Development Monitor 2016, Efforts and benefits of mainstreaming gender in the SADC renewable energy sector
Southern Africa Regional Climate Outlook Forum: consensus outlook for 2016/2017 rainfall season (pdf, SADC)
The bulk of SADC is likely to receive normal to above-normal rainfall for most of the period October to December 2016 and the January to March 2017. However, northernmost DRC, northern Angola, most Tanzania, northern Mozambique, the islands states of Seychelles and eastern-most Madagascar are more likely to receive normal to below-normal rainfall most of the season. [Hydroelectric power industry hopeful La Nina will replenish regional reservoirs]
South Africa, Nigeria, Egypt, Zimbabwe trade data updates:
South Africa’s July trade data: The Africa trade balance surplus was R15 440 million - a 18.4% decrease in comparison to the R18 914 million surplus recorded in June 2016.
Nigeria: GDP, trade report Q2 2016: In the second quarter of 2016, the nation’s GDP declined by -2.06% (year-on-year)in real terms. This was lower by 1.70% points from the growth rate of –0.36% recorded in the preceding quarter, and lower by 4.41% points from the growth rate of 2.35% recorded in the corresponding quarter of 2015. Quarter on quarter, real GDP increased by 0.82%. Year on year, trade grew by 15.23% in the second quarter of 2016 in nominal terms. This was 0.76% points higher than in the same quarter of the previous year, and higher by 1.72% points than the rate recorded in the preceding quarter. Quarter on Quarter growth was 3.60%. Trade’s contribution to nominal GDP in the Second Quarter was recorded at 21.16%, which is greater than the contribution in the same quarter of the previous year of 18.87%, but slightly lower than in the preceding quarter recorded at 21.55%.
Egypt: a 15.7% decline in June trade deficit: According to Ezz El-Din Hassanein, expert on banking and economics and chairperson of a bank operating in Egypt, the decline in Egyptian imports over the past few months is due to the increase in the US dollar exchange rate against the national currency.
Zimbabwe’s car imports through Beitbridge decline: Official figures from Zimra show that a total of 13 976 motor vehicles were imported through Beitbridge Border Post as at June this year as compared to 14 358 vehicles which were imported during the same period in 2015. It is understood that the imports through Beitbridge have declined as many importers and car dealers now prefer using less busy stations such as Plumtree, Kazungula and Chirundu border posts. Zimra recently stopped accepting values of second hand vehicles which are being sold in South Africa saying they were way below standard market values. This has resulted in importers opting to buy vehicles directly from Japan or Tanzania where prices are relatively low. Zimra’s director of legal and corporate affairs, Ms Florence Jambwa, said yesterday that they were processing an average of 72 vehicle imports per day at Manica Transit Shed.
Transforming African Development: partnerships and risk mitigation to mobilize private investment (IFC)
The role of the private sector is particularly significant in Africa - the focus of this report. Africa’s population is expected to increase to 1.7bn in 2030. By 2050, the continent will be home to 2.4bn people - quarter of the world’s future population. This report offers a template for how we can move forward - by showing how investors, governments, local enterprises, donors, and individuals are working together to address investors’ risk concerns and deliver more investment with positive impact. [Note: the report documents 15 case studies of financed private sector projects] [Related: At ICF review launch: Mkapa urges stronger ties with the private sector, Knowledge@Wharton: How partnerships drive health care innovation in Africa, Biggest bond binge in history passes Africa by as yields rise]
Mandla Lionel Isaacs: ‘Free movement in Africa is desirable, but how to realize it?’ (AfDB)
It has long been argued that economic integration will be of positive benefit to all African countries. Occasionally these arguments are bolstered with figures, such as how Rwanda has increased tourism since implementing visas on arrival for African visitors. Still, when we talk about free movement, there are costs and risks for countries to consider. Countries may reasonably worry about how free movement will affect their labour market, housing prices or social spending. In the absence of strong evidence, policymakers may be reluctant to open up while big question marks remain. There is, therefore, a need for rigorous research on the likely benefits and costs of free movement for African countries, which can be applied to the policy discourse. [Isaacs is Director of Research, SA Ministry of Home Affairs] [Benin will no longer require visas from other Africans, Migrant labour fuels tensions in Mauritius]
Migration Dialogue for West Africa: impact of free movement and migration challenges (IOM)
In its final report, the Security Ministers meeting held at the migration dialogue conference discussed and made amendments to the Final Report and Recommendations of the Experts meeting held on 23-24 August, and subsequently advanced a number of recommendations for approval by ECOWAS Council of Ministers. The security ministers’ meeting called for the establishment of a Steering Committee for Migration Dialogue for West Africa, appointment of national Secretariats in Member States, and the creation of seven Focus groups in relation to migration. The focus groups included border management, trafficking cross-border crime; diaspora, West African Communities and/or nationals; professional mobility and student exchange; climate change, land degradation, desertification. Others were environment and migration; gathering and analyzing migration statistics data; return readmission and reintegration; and cooperation and partnership among others. [Background, Outcome] [Dambazau cautions ECOWAS member states over migration, others]
Uganda’s progressive approach to refugee management: an assessment (World Bank)
The conclusions of the study are that as the government of Uganda and UNHCR strive to reduce poverty and mitigate risk for vulnerable refugees and their host communities, the close involvement of key stakeholders, such as district leadership, sector ministries, host communities, and refugees, is imperative. A shift in the philosophy of refugee assistance is also crucial: refugees should be viewed as economic actors in charge of their destiny (development approach) rather than as beneficiaries of aid (humanitarian approach). To ensure impact, the focus should be on transformative investments that will address the pressing needs of refugees and host communities alike and that will jump-start local economies.
Botswana: Govt plays hardball with SA retailers (Mmegi)
Property company, PrimeTime Holdings is expecting profitability at its soon-to-be opened Pilane Mall in Mochudi to be dented following government’s refusal to climb down on its decision to deny some of the targeted tenants trading licences. In a statement, PrimeTime said about 30% of the targeted tenants, who are South African retailers, have not been able to secure exemptions to trade in businesses reserved for locals. Although PrimeTime did not identify the affected South African retailers, an official at the Ministry of Investment, Trade and Industry told BusinessWeek that five household names that are in the clothing retail business have been affected.
Kenya/TICAD: Investment, tax deals to give Japanese firms easy access (Daily Nation)
Japanese companies are set to enjoy easier access to the Kenyan market under a raft of investment and tax deals signed in Nairobi over the weekend. The deals allow the Asian nation’s firms to repatriate profits, safeguard their investment against government interference and open up diplomatic channels to handle disputes before seeing intervention of international bodies. The agreement for the Promotion and Protection of Investment was signed by Treasury Secretary Henry Rotich and Japanese foreign affairs minister Fumio Kishida on the sidelines of the Sixth Tokyo International Conference on African Development. The two nations are also expected to sign a double tax agreement. [Transport, engineering firms top list of 11 Japanese companies eyeing Kenya]
Jaindi Kisero: ‘Kenya’s policy makers need to rethink view on special economic zones’ (Daily Nation)
What is my point? It is that signing a deal with the Japanese to help build a special economic zone in Dongo Kundu is not enough. Our policy makers must address their doubts about the viability of special economic zones. We must accept that these zones have delivered wonders to the South East Asian countries and that they are our best bet at industrialising. What I like most about the Japanese is the fact that the projects they support and fund are only selected after studies and detailed master plans.
Jackson Kiraka: ‘New law could clash with Kenya’s obligations to Monetary Union’ (Daily Nation)
One key institution will be the East Africa Central Bank, whose role, in conjunction with the national central banks, will be to coordinate the MU, including harmonisation of monetary and exchange rate policies. Those functions are expected to be independent of national interest influence. So, while Kenya’s capping of interest rates is of national interest and which, on the surface, could benefit ordinary citizens, it portends a challenge in the context of the ongoing regional process to harmonise policies and procedures. It may complicate the game for banks from the region eyeing the local market as an investment destination. As rates fall, new investment money could go elsewhere at Kenya’s expense.
Namibia, Zambia in joint HIV fight at border posts (Global Times)
Namibia's Walvis Bay Corridor Group's Wellness Service is collaborating with Zambian health officials to establish the first Cross Border HIV/AIDS Initiative. The project's objective is to have a series of Wellness Clinics serving truck drivers along the Walvis Bay corridors. Wellness Project Manager, Edward Shivute, recently met with officials from the Ministry of Health of Zambia to discuss the set-up of the new clinic in Shesheke, Zambia, which is to be opened by October 2016. The Wellness project, funded by SADC through the Global Fund, has three operational clinics located at the Port of Walvis Bay, at the border in Oshikango along the Trans-Cunene and at the border in Katima Mulilo along the Walvis Bay-Ndola-Lubumbashi Development Corridor.
Northern/Central Corridors: “EA freight” mobile app (FEAFFA)
FEAFFA, in partnership with TMEA, has introduced an android mobile app called the “EA freight”. This mobile app consists of the east African motor vehicle duty calculator that helps stakeholders determine the tax they need to pay for a given motor vehicle in each country. It consists of the EAC tariff book with different exercise duty on each product to help agents classify products with their equivalent duty. The app also consists of estimated freight rates for cargo along the north and central corridors within East Africa.
Pradeep S Mehta: ‘Bilateral investment pacts haven’t worked‘ (The Hindu)
With the blurring distinctions between strictly capital-importing and capital-exporting states, all countries must proactively seek a more balanced international investment agreement system. This requires greater cooperation and open-mindedness on part of the global community. India has indeed taken the first step in reforming its IIA regime and it should be the starting point of a larger debate. Time will tell how successful it is in setting the tone for the second phase of BITs across the world. This is notwithstanding any discussions on a plurilateral investment agreement at the WTO, as is anticipated by many. The future of international investment policy discourse will be quite interesting. [Mehta is Secretary General, CUTS International] [Amitabh Dubey: ‘A closer look at Modi’s Make in India’ (The Wire)]
Free Trade Agreement between Australia and China (goods and services): report by the WTO Secretariat
TICAD VI: Youth Communique from a UNV/AUC workshop
How the Ethiopian famine influenced Japanese businessman to campaign for modern farming in Africa (Daily Nation)
Young people and agriculture in Africa: a review of research evidence and EU documentation (IDS)
Tanzania: Magufuli sacks Treasury PS Servacius Likwelile (IPPMedia)
IGAD states validate the Regional Agricultural Investment Plan 2016-2020 (IGAD)
Mozambique faces race against time to end illegal logging (The Guardian)
Indonesia, Namibia reveal ambitious agriculture plan (New Era)
Can poll results sway elite opinion on Tanzania’s resource boom? (IGC)
Uganda: Oil companies may spend $8bn to start output (Bloomberg)
Ghana mining industry advocacy group pushes for new mining law (News Ghana)
Egypt, Ethiopia, Sudan, to sign GERD impact studies contracts next week (Ahram)
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