News
tralac’s Daily News Selection
The selection: Tuesday, 25 October 2016
Featured tweet, @ThulasSims: ’Dlamini Zuma; ‘We’ve lost 40% of our aviation market, because as Africans we don’t make agreements with ourselves’ #AfricanEditorsForum’
AfDB VP appointments: Khaled Sherif (Regional Development, Integration and Business Delivery), Amadou Hott (Power, Energy, Climate and Green Growth), Pierre Guislain (Private Sector, Infrastructure and Industrialization)
2017 World Bank Doing Business: Rwanda maintains second spot in Africa (New Times)
The 2017 World Bank Doing Business Report has ranked Rwanda 2nd in Africa after Mauritius. And globally, Rwanda has improved six places ranking 56th out of 190 countries. The latest World Bank report was released Tuesday. The rankings also indicate that Rwanda reduced the gap with Mauritius, from 30 places last year to only seven places. Botswana came in third place in Africa and 72nd globally, with South Africa at 73rd globally. Morocco was fifth on the continent and 75th globally. [Note: the Doing Business Report will be available for download later today]
EAC/JICA automotive industry expert meeting kicks off in Nairobi (EAC)
The main objective of the three-day meeting is to review and validate the progress report of the Comprehensive Study on Automotive Industry and provide inputs towards finalization of the same and also inform the EAC and potential private sector investors (both foreign and domestic) on policy options and modalities to promote and develop the motor vehicle industry in the region. The 16th Ordinary Summit of the EAC Heads of State, of 20 February 2015, “directed the EAC Council of Ministers to study the modalities for promotion of motor vehicle assembly in the region, and to reduce the importation of used motor vehicles from outside the community, and to report progress to the 17th Summit.” The Director for Productive and Social Sectors at the EAC Secretariat, Mr. Jean Baptiste Havugimana, said the EAC had made a strategic decision to invest in the motor vehicle industry as a way of diversifying the regional manufacturing base which at the moment relies heavily on raw agriculture commodities.
South Africa: Automotive groups seek to develop car-making industry north of SA (Business Day)
A group of car makers led by Ford and Nissan executives will seek to work with Kenyan authorities to develop an car-manufacturing industry there, building on talks with Nigerian MPs. The African Association of Automotive Manufacturers, which includes Toyota, General Motors, BMW and Volkswagen, was formed to take advantage of a surge of interest from African governments in building vehicles. Kenya "would love to have a big automotive industry, they would love to beat SA, Egypt", Schaefer said. "They want fully fledged production." Still, even when policies and incentives were in place, it took years for car makers and suppliers to plan, approve and invest, said Nemeth. [Deloitte Africa: Automotive Insights(pdf)]
Afreximbank unveils Model Law on Factoring
The African Export-Import Bank has introduced a model law on factoring to provide a benchmark for African national legislatures enacting arrangements aimed at fostering the growth of factoring activities across the continent. The Afreximbank Model Law on Factoring, which was unveiled in Cape Towny during the seventh Annual Meeting of the Africa Chapter of Factors Chain International, is based on recommendations received from consultative meetings with factors, government and regulatory bodies, enterprises, legal experts and banks across Africa and the world. Launching the model law, Kanayo Awani, Chairman of the Africa Chapter of FCI and Managing Director of Afreximbank’s Intra-African Trade Initiative, predicted that the document would have profound impact on the way small and medium-sized enterprises were financed in Africa.
Virtual competition: the promise and perils of the algorithm-driven economy (Unctad)
Within the span of a decade the internet has expanded marketplaces, enabling business and consumers to enter into new and apparently beneficial relationships. But in a new book, Virtual Competition: The Promise and Perils of the Algorithm-Driven Economy, Ariel Ezrachi and Maurice E. Stucke, warn that this new environment may be changing the nature of competition. Mr Ezrachi, who is a professor of competition law at the University of Oxford, launched the book during a meeting of the Intergovernmental Group of Experts on Competition Law and Policy, organized by UNCTAD, in Geneva on 19 October. Q&A with Ariel Ezrachi, Professor of Competition Law, Oxford:
Rwanda-Morocco business council will drive bilateral trade, says PSF (New Times)
Last week, Rwandan and Moroccan businesses formed a joint council and signed a partnership agreement in the presence of the leaders of the two countries, President Paul Kagame and King Mohammed VI. Benjamin Gasamagera, the Private Sector Federation (PSF) chairman, told Business Times that the body would represent mutual interests of the businesses from both countries. “The mandate of the council is to implement the agreement, but we will have to first agree on the criteria as the business council,” he said. [Coming in from the cold: Morocco returns to Africa]
Team Export South Africa workshop: update (dti)
The workshop (24-26 October) targets Export Councils from the provinces, government departments across the three spheres of government, and stakeholders in the export value-chain. DTI DG Lionel October says the event will be structured into 4 discussion panels that focus on the following topics: (i) institutional arrangements by government institutions to promote growth in exports (ii) institutional arrangements by private enterprises to promote growth in exports, (iii) Africa as an export market (iv) export support measures.
Zimbabwe’s trade deficit narrows (The Herald)
Zimbabwe’s trade deficit narrowed 13% to $2bn in the nine months to September compared to $2,3bn in the same period last year on lower imports. According to figures released by the Zimbabwe National Statistics Agency, the country’s imports for the period dropped 6,4%, to $3,7bn, from $4bn worth of goods imported during the same period last year. Statistics show that top source countries for imports include South Africa, Singapore, China, India, Mozambique, Japan, Botswana and the United Arab Emirates. Major imports for the period were diesel, unleaded petrol, electrical energy, crude soya bean, rice and non alcoholic beverages and medicaments used in management of chronic illnesses. [Exports surge 61% to $254m in six months]
Zimbabwe: Economy to grow nearly 5% in 2017 (The Chronicle)
According to the 2017 National Budget Strategy Paper developed by the Ministry of Finance and Economic Development, projected growth is anchored in fundamental economic assumptions that include improved performance of agriculture. Meteorological and climate change experts for SADC have forecast normal to above normal rainfall in the next rainy season, a positive phenomenon for Zimbabwe’s agriculture driven economy. Projections say growth will also depend on increased financing for agriculture, incentives for exporters, better mineral prices, improved investment climate, re-engagement with International Monetary fund and other global funders and positive gains from measures taken to cushion local industry. Exports are projected at $3,8bn, against imports of $5,4bn, resulting in a high unsustainable trade gap of over $1,5bn. Government says in line with the value addition and beneficiation thrust, import restrictions will remain necessary, while instituting appropriate measures that promote production for both the domestic and export markets will be critical. The budget strategy paper says that a number of measures will be required in 2017 to stimulate growth in productive sectors. [Download the 2017 Budget Strategy Paper]
Egypt industry races to fill void as trade gap to narrow $11-12bn in 2016 (Reuters)
Egypt expects to cut its trade deficit by $11-$12bn in 2016 as part of efforts to ease an acute dollar shortage and is encouraging domestic industries to fill the void as imports plummet, Trade and Industry Minister Tarek Kabil said. Speaking as part of the Reuters Middle East Investment Summit, Kabil said Egypt had produced about $4bn worth of import substitutes since the start of the year and aimed to grow domestic industry by 8% in three years. "If you look at last month’s report, industry grew by almost 20%, because it has to fill the gap of the imports. Some of (the imports) are unnecessary and some is real consumption that Egyptian industry has to fill the gap for," he said in an interview at his wood-paneled offices in Cairo.
Weak data buries the shine of Kenya’s huge mineral resource (Daily Nation)
A report released on the country’s potential mineral resources show that Kenya has billions below its surface worth of minerals yet to be mapped and quantified for mining. The Ministry of Mining, which is yet to identify a consultant expected to carry out a year-long aerial mapping of the country’s minerals said in the Kenya Mining Investment Handbook 2016 (pdf) that the country’s mining potential is huge and remains unknown. Mining Cabinet Secretary Dan Kazungu said 17 bidders had applied to be the consultant expected to conduct the Sh3 billion survey to map the country’s mineral locations and allow for informed marketing of the country as mining hub. [Scottish oil and gas trainers on East Africa trade mission]
EALA halts recruitment at secretariat over graft claims (New Times)
The East African Legislative Assembly has resolved to investigate allegations of corruption and other malpractices in the recruitment processes at the EAC secretariat. The decision, which also puts to halt ongoing recruitment, was reached at, last week, as the Assembly concluded its latest sitting in Zanzibar, Tanzania. It followed passing of a motion “of public importance” moved by MP AbuBakr Ogle (Kenya) seeking suspension of the ongoing recruitment process at the Secretariat in Arusha, Tanzania, pending an audit. “This is a result of widespread complaints by the citizens of East Africa regarding the transparency of the process. There are claims of impropriety and underhand dealings in short-listing and hiring. These claims must be verified before it can be allowed to continue,” Ogle said. According to the lawmaker, after the Assembly passed the motion, the next move is for the Speaker to communicate the subsequent resolution to the Council of Ministers with a view to reporting back to the Assembly at its next sitting in Nairobi, Kenya, next month. [In response: statement by the EAC Secretary General]
Tanzania: Ex-ports chief, 3 others in court over $4m bribery charges (IPPMedia)
The former director general of the state-run Tanzania Ports Authority, Ephraim Mgawe, and three other senior officials were yesterday charged with soliciting a $4 million (close to 9 billion/-) bribe from a foreign company that was awarded a tender worth $66.48 million (over 140 billion/-) for upgrading infrastructure at the port of Dar es Salaam. Singapore-registered Leighton Offshore Pte Limited won the 2010 tender to replace the port’s old oil discharging terminal with a new dual pipeline single point mooring system. This is the second time that the 62-year old Mgawe has been charged with graft related to his stint as boss of the historically corruption-ridden port of Dar es Salaam. In July 2014, he was alleged in a separate case to have fraudulently awarded a controversial contract worth more than $523 million to a Chinese company for the port’s expansion. The expansion project was abandoned after officials reported that the costs being cited by China Communication Construction Company Ltd were double those for similar port projects.
Meeting of SADC Ministers for ICTs, Transport & Meteorology: summary
David Satterthwaite: ‘Will Africa have the world’s largest cities in 2100?’
A new report suggests that most of the world’s largest cities in 2100 will be in Africa – including many with over 40 million inhabitants. This blog suggests growth in numbers will hinge more on the extent of economic development. The world’s urban population is growing rapidly – and current projections suggest it will increase by 2.9 billion between 2015 and 2050, and it could grow another 3 billion by 2100. But where will this vast growth in the world’s urban population live? A new paper by Daniel Hoornweg and Kevin Pope projects the world’s largest cities and their populations in 2100 under three different scenarios: [Greg Foster: ‘Africa’s future is in its secondary cities’ (Devex)], [Edward Paice: summary of the Habitat III Africa Regional Report (ARI)]
Botswana Vision 2036: achieving prosperity for all (pdf, GoB)
Concluding today, in Nairobi: ‘WTO’s Trade Facilitation Agreement: making cross-border trade easier for Kenyan business’
Lord Stephen Green, Ali A. Mufuruki: ‘Time to reboot UK relations with Africa’ (The Standard)
South Africa: Composite Business Cycle Indicators – October 2016 (SA Reserve Bank)
Angola’s 2017 budget reaches $44bn (Macauhub)
Bank of Mozambique increases interest rates by 6 percentage points (Macauhub)
African Innovation Foundation unveils Sh15m competition for businesses (Business Daily)
Carmen Reinhart: ‘The return of dollar shortages’ (Project Syndicate)
Uganda’s first Social Service Delivery Equity Atlas launched (Mareeg)
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