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tralac’s Daily News Selection
The selection: Tuesday, 1 November 2016
Abdalla Hamdok has been appointed the Acting Executive Secretary of the UNECA
African industrial policy: three profiled workshops
UNCTAD: 1st international meeting on promoting pharmaceutical sector investments in the EAC region (2-4 November, Nairobi)
TIPS seminar: The automotive value chain in Africa and the motorcycle industry (2 November, Pretoria)
tralac Roundtable: A Continental Free Trade Area to support Africa’s industrial development objectives? tralac will host a roundtable, 17-18 November in Cape Town, to consider the continent’s most ambitious integration initiative, the CFTA, from the perspective of Africa’s quest for industrial development and diversification. We will discuss the scope of the CFTA agenda, priorities for industrialization and development, sequencing of the negotiations and accommodating the challenges of integrating unequal partners in the CFTA, and how these will impact industrial development options and choices.
Namibia: Trade Minister tables Namibia Industrial Development Agency Bill (Xinhua)
Namibia’s Minister of Industrialization, Trade and Small Medium Enterprise Development, Immanuel Ngatjizeko said the bill seeks to develop key industrial and business infrastructure, promote investment, facilitate trade as well as the introduction of new technologies. "The bill also aims to support schemes contributing to industrialization efforts, while acting as an agent in making equity investments on behalf of the Namibian government and its institutions," Ngatjizeko said. The bill seeks to repeal the Namibia Development Corporation Act. It also incorporates the mandate of the Namibia Development Corporation while also amending the Development Bank of Namibia Act.
Zimbabwe: President signs Special Economic Zones Bill (The Herald)
President Mugabe yesterday finally signed into law the Special Economic Zones Bill in a move that is expected to see the country attracting foreign direct investment. The special economic zones are also expected to establish an appropriate regulatory and policy infrastructure to enable local and regional trade to flourish. This comes as President Mugabe yesterday met some members of a visiting 20-member Chinese delegation at State House. The delegation is in Zimbabwe to speed up the operationalisation of the mega-deals agreed between the Governments of China and Zimbabwe. The delegation is headed by Mr Fan Hengshan, deputy secretary-general of the National Development and Reform Commission.
Does the elimination of export requirements in special economic zones affect export performance? Evidence from the Dominican Republic (World Bank)
Special economic zones, one of the most important instruments of industrial policy in developing countries, often feature export share requirements. That is, firms located in these zones are obliged to export more than a certain stated share of their output to enjoy the wide array of incentives available there, a practice prohibited by the World Trade Organization. This paper exploits the staggered removal of export requirements across products and over time in the special economic zones of the Dominican Republic to evaluate whether the importance of exports originating from the zones was affected by the elimination of export requirements.
AfDB, partners urge companies to actively tackle corruption (AfDB)
The AfDB has reiterated during the two-day workshop in Abidjan the critical importance of cutting the channels of IFFs, a key to unlocking the continent’s development potential. The workshop brought together some 70 financial intelligence experts and representatives from government, civil society organizations, regional anti-corruption agencies and the private sector, to discuss the extent of illicit financial flows in Africa and innovative ways to combat them. The AfDB reviewed the Bank’s Group Strategic Framework and Action Plan on the Prevention of Illicit Financial Flows in Africa (2016-2020) (pdf), to ensure it adequately addresses the priorities of the continent in the fight against IFFs. The Bank also engaged participants on some of its findings on illicit finances contained in a forthcoming report of the Bank’s African Natural Resource Center, on Illicit Trade in the natural resources sector. [Various downloads available]
TFTA updates:
EAC SG Liberat Mfumukeko takes over COMESA-EAC-SADC Tripartite Task Force Chairmanship: The Secretary General noted that there were many hurdles to be overcome in meeting the clear priorities the Tripartite Council had set and he prioritized resource mobilization: finalization of studies for phase II negotiations whereby EAC will work closely with COMESA Secretariat on the necessary actions to be taken; Tariff Offer Negotiations to always be on the agenda of the relevant Policy Organs; and lastly Ratification of Tripartite Free Trade Area. He disclosed that EAC has pledged to ratify and deposit instruments of ratification by the end of February 2017 and urged all Member/Partner States to ratify the Agreement before the end of June 2017.
Uganda looks to break into COMESA, SADC markets (The Independent): Uganda’s Minister of Trade Amelia Kyambadde has said the country is ready to ratify the EAC-COMESA-SADC Tripartite Trade Agreement before June 2017 and start implementation so as to benefit from a proposed free trade arrangement. This has prevented Uganda’s tea, coffee, vegetable oils, fresh juices and many other products from entering the South African market because they cannot compete. The tripartite will unlock this market allowing Ugandans to export under duty free quota free arrangement. Kyambadde gave the example of South Africa, a member of SADC currently charging 10% tax on vegetable oils and fats like sun flower oils, soya bean oils, 20% on raw coffee, 400 cents per kilo of tea, 25% on fresh juices.
EAC-EU-IMF Conference on Regional Integration: updates
Benchmark with the best in the world, EAC partner states urged: Hon. Amanya Mushega, a former EAC Secretary General, said the EAC needs to revisit and do away with the standard way of judging itself by Sub-Saharan African standards. “India, Singapore and South Africa, just to mention but a few refused to treat themselves that way. They aimed high, looked at the way the USA, Japan, Germany, UK and the USSR developed their human resources, copied them with the view to competing with them and not fellow third world countries and the results are out,” said Hon. Mushega. “Our problem of remaining poor and beggars is not lack of money or natural resources, it is our mindset. We have put the bar too low. We are not going to be competing with Gambia or Haiti but with Korea, Japan and China, first for our own EAC market and secondly, for the world market,” he added. [No easy feat to attain monetary union, EU envoy tells EAC, The conference programme (pdf]
Tanzania-Kenya – selected postings:
Magufuli, Uhuru dispel claims of Tanzania-Kenya ‘tensions’ (IPPMedia), Africa has potential to be donor continent, Magufuli says (Daily Nation), Visit revives agreement to build two link roads (Bagamoyo-Malindi highway (Daily Nation), States must boost cooperation in EA (editorial comment, Daily Nation)
South Africa-Zimbabwe – selected postings:
Zimbabwe, SA Bi-National Commission kicks off (The Chronicle): The inaugural session of the Bi-National Commission between Zimbabwe and South Africa started in Harare yesterday amid calls for officials to ensure all outstanding agreements are finalised and implemented. The BNC kicked off with a meeting of senior officials, which will be followed by a ministerial session tomorrow ahead of official opening on Thursday. President Mugabe and his South African counterpart Mr Jacob Zuma, will open the commission. President Zuma is bringing with him a delegation of eight Cabinet ministers. The BNC, agreed during President Mugabe’s visit to South Africa last year — elevates the two countries’ political and economic relations to presidential level from the ministerial rank where they reposed for years.
Zim, SA must consolidate economic relations (editorial comment, The Herald)
Liesl Louw-Vaudran: ‘Looking beyond Zuma and Mugabe’ (ISS)
South Africa: Merchandise trade statistics for September 2016 (SARS)
Data by the South African Revenue Service yesterday showed a trade surplus of R6.7bn in September from a revised R8.9bn deficit in August. Exports rose to 10.1% month-on-month while the import bill fell by 6.6% month-on-month to R92.2bn in September, mainly due to decreases in imports of mineral products (-30%), precious metals & stones (-66%), and vegetable products (-20%). The Africa trade balance surplus of R9 690 million is an 89.9% increase in comparison to the R5 102 million surplus recorded in August. [Infographic, @NKCAfrica: post-August 2014 monthly surplus/deficit]
Mauritian-South African banking collaboration key to growing intra-African trade finance volumes (Africa Business)
Zambia-South Africa: on Thursday, in Johannesburg: the ‘Invest in Zambia Business Forum’
@NamTradeForum: SACU collects less than 10% of the 45% tariff on clothing and textile due to under declaration by importers - Michael Lawrence
Chinese businesses in Zim flouting tax laws (NewsDay)
Chinese businesses in Zimbabwe have come under the spotlight following claims they are flouting the country’s tax laws by failing to issue out tax invoices when conducting business. This was revealed by captains of industry who attended the Association for Business in Zimbabwe and Zimbabwe Revenue Authority (Zimra) workshop in Bulawayo on Friday.
Zambia: Traders welcome ‘dollarisation’ of trade on the Zambia/DRC border (Lusaka Times)
In a bid to curtail the illegal exchange of foreign currency, which results in the country losing out, Government is considering introducing a statutory instrument (SI) that will allow traders and companies at Kasumbalesa border to transact in United States dollars. Minister of Finance Felix Mutati says government is soon expected to introduce an SI that will allow transactions to be conducted in dollars at Kasumbalesa border which will lead to channelling of about $40,000 from the black market into the formal system. “[For instance] Zambeef has an outlet at Kasumbalesa border but the challenge is that under the current law, the company is not allowed to transact in dollars. So the buyers from DRC have to change money from the black market worth $30,000 to $40,000 being sold on the black market daily,” Mr Mutati says. Most Congolese nationals move with US dollars when conducting businesses, and Mr Mutati believes that allowing transactions in dollars at the border will help Zambian businesses. [Cashew Infrastructure Development Project: GPN]
Tanzania: selected updates
IMF staff holds review mission (IMF): “The mission held discussions on how to address these macroeconomic challenges. In particular, it noted the importance of mobilizing external financing to step up the pace of planned capital spending. Tanzania is at low risk of external debt distress and has room to borrow externally on concessional and nonconcessional terms to meet its financing needs."
Govt forms ‘ease of doing business’ desk (IPPMedia): The government has formed a special desk in the Ministry of Industry, Trade and Investments that will handle complaints of the business community in a bid to improve the investment climate. The Minister, Charles Mwijage, said businesspersons should not fear to report to him agencies making it difficult for them to operate smoothly since that would be against the spirit of the fifth phase government whose development through industrialisation agenda cannot be attained without them.
Where to next on e-trade at the WTO? (World Bank)
Last month, the World Trade Organization held its annual Public Forum, with over 2,000 participants joining discussions on how to make trade more inclusive. At the Public Forum, with the McKinsey Global Institute, we organized a session that highlighted developments in e-trade and the implications for international trade policy. More than 20 other sessions were held on different aspects of e-trade. From our perspective, some of the key ideas that emerged from the discussions included the following:
Togo 2016-2020 Country Strategy Paper (AfDB)
Mozambique: Frozy manufacturer reacts to Malawian ban (Club of Mozambique)
An update on India’s Eastern Dedicated Freight Corridor Project (World Bank)
Various updates from the WTO’s Dispute Settlement Body
The EU has proposed to restart WTO negotiations on the issue of fisheries subsidies
Tanzania hosts ICGLR conference on insecurity in Great Lakes region
IGAD’s inaugural ministerial meeting on migration (7-10 November)
RwandAir expansion not aimed at taking on regional carriers (The Standard)
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