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tralac’s Daily News Selection
The selection: Friday, 14 October 2016
Federal Chancellor Angela Merkel: speech at African Union Commission
In 2017 Germany will assume the Presidency of the Group of 20. We will make the issues that concern you in Africa one of the priorities of the G20 agenda and also launch a large scale initiative with Africa to this end. A conference due to take place half way through the year in Berlin will play a particularly important role, featuring high ranking representatives from G20 states and African countries as well as from international organisations and the private sector. Before that ourGerman African Business Summit is planned – this time in Nairobi. Many German enterprises already operate in Africa, but considerably more could do so. That is something that I and our entire Government are working to encourage.
Moono Mupotola: Bracing up for the post-AGOA period (AfDB)
A key challenge for Africa will be to ensure that its industries that have thrived under AGOA do not collapse, that the thousands of jobs created in the automobile and automobile parts, apparel, fruit and nut, cocoa, footwear, and flower industries are sustained and continue to grow beyond 2025. African governments are aware of the challenges. At the September 2016 Ministerial AGOA Forum, African trade ministers recognised the urgent need to plan ahead. They committed to the creation of a task force to outline strategies for US-Africa trade and investment relations beyond 2025. This is a good start. Now, the clock is ticking and the bell signaling the end of AGOA privileges will soon resonate across Africa. We must be ready when it rings. [The author is the director of the NEPAD Regional Integration and Trade Department at the AfDB]
AUC begins process of validating SME Strategy and Master Plan 2017-2021
The objective of the initiative is to develop an AU strategic framework to support the implementation of the Accelerated Industrial Development of Africa (AIDA) and Africa’s sustainable economic transformation under Agenda 2063. The SME Strategy and Master Plan 2017-2021 aims at improving the continental business environment, increasing business formation, supporting formalization of growth-oriented informal enterprises and start-ups, increasing SME/Is, MSMEs and entrepreneurs’ participation in regional and global value chains and promoting innovative financing.
Trade, Gender and Development: advocating inclusive and gender-sensitive economic development on a global level (pdf, UNCTAD)
The Trade, Gender and Development Programme is deepening the scope of its analysis of the trade–gender nexus with three ongoing projects. The first, “Informal cross-border trade for the empowerment of women, economic development and regional integration in Eastern and Southern Africa (2016–2020)”, aims to strengthen the capacities of Malawi, Tanzania and Zambia to leverage informal cross-border trade for the empowerment of women, economic development and regional integration. The purpose of the second project, “Trade and gender in East Africa”, is to conduct an in-depth analysis of women’s participation in trade in that region and of the factors facilitating or impeding it. The purpose of the third project is to develop a trade and gender toolbox and a related trade and gender index.
Infrastructure development and financing in Sub-Saharan Africa: towards a framework for capacity development (pdf, ACBF)
Infrastructure development plays a major role in promoting growth and reducing poverty. In Africa, however, underdeveloped infrastructure continues to be a binding constraint on sustainable development. Notably, African countries, through the continent’s Agenda 2063, recognize that developing infrastructure—transport, energy, water, and e-connectivity—will be critical for the continent to assume a lasting place in the global economic system. The ACBF has produced this occasional paper under its supported Strategic Studies Group to provoke discussion and further investigation of critical capacity challenges to be addressed in developing infrastructure in Africa. [Download: French version (pdf)]
A preview of tomorrow's AU maritime summit in Lome:
On African coastlines, prosperity and security go together (Chatham House): Encouragingly, the next AU summit in Togoon 15 October signals a new ambition to move Africa’s maritime agenda beyond security. It complements the UN’s new Sustainable Development Goal 14, which challenges the world to act urgently to restore healthy, productive and resilient oceans and seas, and reflects the emphasis placed on the ‘blue economy’ by some of Africa’s coastal and island states. The AU has already highlighted these issues in both its Agenda 2063 and its 2050 Integrated Maritime Strategy, but the summit provides an inflection point: Africa’s governments now need to generate the political will to implement maritime development ideas effectively. [AUC Chairperson urges Member States to train, create jobs and wealth]
Kenya, Egypt leads in intra-COMESA trade: Egypt and Kenya registered the biggest share of intra-COMESA export marketin 2015 with 22% and 17% share respectively. Zambia, DR Congo and Uganda followed with 13%, 12% and 11% respectively. Egypt exported products worth $1.7bn and Kenya $1.3bn. The value of Zambia exports was $977m and DR Congo $896m. With regard intra-COMESA import market share, Zambia registered the biggest share at 24% with goods worth $2.0bn in 2015. DR Congo, Sudan, Uganda, Libya, Kenya and Egypt followed with 11%, 10%, 9%, 8% 7.4% and 6.7% respectively.
Chinese, Indian currencies join the COMESA system: The Chinese Yuan and the Indian Rupee will be included in the Regional Payment and Settlement System operated by the COMESA Clearing House as a mode of payments. Currently, the US dollar and the Euro are the only two international currencies used on the system with provision for the British Pound, Japanese Yen and the Swiss Franc. The Director of the COMESA Clearing House Mr Mahmood Mansoor said the inclusion of the two currencies follows the decision by Central Bank governors from the region during their meeting in August this year. [7th COMESA Committee on Statistical Matters: download the presentations, COMESA Harmonised Consumer Price Index: August 2016 presentations, meeting report]
Improved and facilitated trade in West Africa project: Tema Port (ECOWAS)
ECOWAS and the World Bank Group co-hosted two workshops in Ghana from 10-13 October, under the EU-funded Improved and Facilitated Trade in West Africa Project. The first workshop, held on October 10-11, brought together the private sector and selected public sector bodies from the Tema Port to review Port Assessment Process Maps to ensure accuracy and completeness. A discussion was held on how to use the maps as transparency tools to help level the playing field for traders and port service providers. A number of reform proposals were developed and aimed at improving and modernizing the port experience. The project focuses on reducing the time and cost to trade, and increasing border agency cooperation and coordination, to encourage a better flow of goods within the region, and with international trading partners.
EALA urges partner states: Fast-track alternative sustainable funding mechanisms
Given the recent financial crunch the Community has undergone, the Assembly is now urging the Summit of EAC Heads of State to direct the Council of Ministers to implement its directive on alternative sustainable funding mechanisms within a timeframe that it (the Summit) shall determine. This follows a Resolution passed by the Assembly urging the Summit to fast-track implementation of the directive on Alternative sustainable funding mechanisms and/or invoke Articles 143 of the EAC against defaulting Partner States in as far as the financial obligation to the Community is concerned.
Northern Corridor performance dashboard: July 2016 report (pdf, NCTTCA)
The Monthly Mombasa Port Community Charter Report provides an overview of key trends within the port, as well as the Northern Corridor transport system in Kenya. This report summarizes the July 2016 status of 9 key indicators which are tracked by the Northern Corridor performance dashboard as stipulated in the Mombasa Port Community Charter. The indicators reviewed in this report are categorized into Maritime, Port and Corridor indicators. The performance shows improvements in performance on most of the indicators when compared with the month of June, 2016. The summary performance is as follows:
Tanzania pulls out of East Africa common visa plan (The Standard)
In a media briefing Wednesday, Tourism Cabinet Secretary Najib Balala said Tanzania was wary of competition from Kenya. “Tourists who will be moving between the three countries that form the coalition will now be using a common visa that will be charged at $100 (Sh10,122) instead of $150 (Sh15,183) that each country charged before,” Mr Balala said. “The coalition of the willing has also agreed to have a common East Africa stand at the world Travel Market to be held in London on November 7. The stand has been dubbed ‘borderless East Africa’, but Tanzania will not be part of it,” he added. Balala said the problem with the East African region is that countries live with “a fear of the unknown”. He called on the country’s neighbours to look at each other not as competitors, but as friends complementing each other. “Our competitors are the Caribbean countries and the Far East. We shouldn’t compete among ourselves,” Balala said. “I want to encourage Tanzania to join us. Our doors are open,” he added.
Rwanda: Tanzania, Burundi urged to scrap work permit fees for East Africans (New Times)
More needs to be done by the EAC for the region to achieve universal free movement of goods and people, according to Stephen Ruzibiza, the Private Sector Federation chief executive officer. “We are promoting free movement of labour and services, but if some countries are still reluctant to implement what other partner states have agreed on over the past few years, then it’s far-fetched. Tanzania and Burundi have not yet scrapped work permit fees for regional citizens, which affects free movement of labour across the region,” he said. He was speaking in a telephone interview from Nairobi Kenya, where he was attending the inaugural East African Business and Entrepreneurship Conference and Exhibition on Wednesday.
RBZ rules out adoption of Rand (The Herald)
The Reserve Bank of Zimbabwe deputy governor Dr Khupukile Mlambo says Zimbabwe will not adopt the SA rand as its currency although the US dollar has not been the ideal option. Dr Mlambo admitted the greenback has given authorities “headaches” owing to liquidity challenges caused by leakages. However, joining the common monetary area using the rand would not be an option because Zimbabwe does not have its own currency. “We need to understand the South African rand has its own challenges, it is volatile,” said Dr Mlambo at a National Economic Consultative Forum workshop yesterday. [World Bank: Govt to blame for cash shortages, Mystery of $200m bond notes facility]
BRICS Trade Ministers: communiqué
The Ministers appreciated the progress in the realization of the Strategy for BRICS Economic Partnership. They directed the CGETI to put forth initiatives and proposals towards the implementation of the Trade and Investment section of the Strategy at the earliest. The Ministers agreed that close cooperation among the CGETI, the BRICS Business Council and New Development Bank is useful for implementing and bringing the BRICS Economic Cooperation to a new high quality level.
BRICS Trade Fair: speech by India's Commerce and Industry Minister
Trade amongst the BRICS nations is less than 5% of their total global trade. This amounts to, in actual terms, about $300bn out of $6.50 trillion. The subdued global trade could be a major reason, as it has impacted BRICS economies differently, some through falling commodity prices and others on account shrinking demand for manufactured goods. We need to find innovative ways of increasing intra-BRICS trade. In this gloomy scenario, it has been observed that nations are resorting to protectionist measures in the forms of NTMs, creating invisible walls against free trade. It is in this context that cooperation amongst BRICS countries on NTMs remains significant. India has taken a lead on this issue and we should work towards standstill and rollback of protectionist measures.
Related: Export credit agencies discuss ways to boost intra-BRICS trade, BRICS seminar on investment flows: video of speech by India's finance minister, Arun Jaitley, India’s cabinet approves pact between EXIM Bank, New Development Bank, Hamid Ansari: BRICS should trade in their own currencies, China assures greater market access to products of Indian companies, 2015 BRICS Ufa Summit: compliance report
Kenya-South Africa: joint communiqué
Nigeria’s tax chief elected head of African tax forum
Rwanda: Agriculture Land Information System to help attract private investment
Algeria: AfDB’s Interim Country Strategy Paper (pdf)
'SADC countries agreeable to Zim imports ban'
Zimbabwe National Competiveness Report 2016
Zimbabwe’s cut flowers exports decline by 95%,
Zimbabwe: Gold exports accrue $614m
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