The selection: Monday, 12 December 2016

Kenya’s Amina Mohamed: It is time to unleash Africa’s full potential

Starting tomorrow: In Brazzaville: UNECA-convened meeting on the implementation of the African Mining Vision in Central Africa; In Ouagadougou: WAEMU Commission and Ferdi conference Regional integration in West Africa – progress and challenges

New uploads from the recent UNU-WIDER, SA National Treasury conference: presentations, poster sessions

African Continental Free Trade Area: policy and negotiation options for trade in goods (UNCTAD)

In the case of the CFTA, the current timetables and time targets may need to be reviewed. This basically stems from the fact that African economies are at such level of variation in terms of development, macro-economic policy regimes, infrastructural development, and others which may not allow the conclusion of the negotiations in 2-4 years. This will certainly require a serious introspection by the Heads of State and Government at their earliest convenience. Given all of the above, it may be more realistic to expect the CFTA negotiation in goods to take about 2-4 years to complete. This time period would be more in tune with experience and best practices from the field. [The analyst: Magdi A. Farahat]

‘Regional banks are vital to connect Africa to the global economy’ (City Press)

An ever-increasing regulatory burden has severely constricted the global banking sector, with dire consequences for trade flows and development in emerging markets. Deputy chief executive of Barclays Africa Group, David Hodnett, said that “There is no doubt in my mind that if regulatory reform continues to follow the trajectory we have seen so far, there will be no banks left that are truly global.” With the pull back of global banks in the region, Hodnett said regional banks would need to become a bigger feature on the financial services landscape in Africa, as these are vital to ensure the continued connectedness of Africa to the global economy.

SADC Brokers discuss ways to boost cross border trading (Namibian Economist)

The Committee of the SADC Stock Exchanges (CoSSE) hosted its inaugural SADC brokers’ networking session, at the Johannesburg Stock Exchange [last] week. Vice Chairman of CoSSE and the CEO of the Namibian Stock Exchange Tiaan Bazuin, who oversaw the session said: “Now, the idea is to have all SADC brokers signing associate agreements with brokers in each SADC country with the aim of trading each other’s stocks; they would have to share information and allow foreign investors to have a broader range and view of the happenings in other African markets. This is the first step towards more harmonisation, regionalisation and integration. It is about how to interconnect markets and how to grow other African markets outside the massive South African markets. Most importantly it will help us to keep African capital in Africa instead of shipping it off overseas,” he added.

Donor coordination and transport in West Africa: towards people, partnership and prosperity? (ECDPM)

West Africa is not to be left behind, with a recent workshop in Abidjan, Côte d’Ivoire about moving “Towards a more coordinated approach to corridor development in West Africa” and a further donor meeting on how to improve their coordination around trade facilitation in Accra last week. In the swirl of thoughts and debates following those discussions, four key points keep coming back that might help shape further progress in ECDPM work and beyond: [The analyst: Bruce Byiers]

How Nigeria’s economic challenges affect West Africa – ECOWAS (Premium Times)

The depreciation of the naira and other economic challenges affecting member states have slowed down ECOWAS economic integration and the adoption of a single currency, the News Agency of Nigeria reports. This was one of the main issues discussed at the technical meeting of the ECOWAS Macroeconomic Policy Committee on Multilateral Surveillance in Abuja on Thursday. The out-going Chairperson of the committee, Ommy Sar Ndaiye, said that it was pertinent for member states to develop strategies to address the prevailing economic challenges. The ECOWAS Commissioner, Macroeconomic Policy and Economic Research, Mamadou Traore: “The deadline for the adoption of single currency is fast approaching. This committee should set an agenda to look into the progress made so far and identify challenges that may hinder its smooth operation.” [Dip in Nigeria’s currency a blow to ECOWAS agenda]

Automobile import ban through land borders: threat or trophy? (Nigeria Today)

On Monday, December 5, the federal government announced the prohibition of importation of vehicles, new and used, through land borders. The statement said there was a presidential directive restricting all vehicle imports to Nigerian Sea Ports only and the order would take effect from 1 January 2017. According to Adeniyi: “The restriction on importation of vehicles follows that of rice, whose imports have been banned through the land borders since April 2016. Importers of vehicles through the land borders are requested to utilise the grace period up till December 31, 2016 to clear their vehicle imports landed in neighbouring ports.” The government may have, with this restriction, acceded to one of the requests made by Nigerian Automotive Manufacturers Association to ease their operations.

Nigeria’s ban on ‘tokunbo’ cars, rice cripples Benin economy (New Telegraph)

The Federal Government’s ban on rice imports to Nigeria through the land borders has taken a heavy toll on the economy of neighbouring Benin Republic as its seaport, Cotonou Port, patronised over the years by Nigerian and Asian importers in their bid to either totally evade Customs Duty or avoid the high port charges by Nigerian seaports, has seen a drastic reduction in its use. The multi-billion dollar imports which the port normally handles, have always either been smuggled into Nigeria or entered into the country through approved border stations, but the port charges, freight forwarding charges and the labour charges go to Benin Republic, making the country parasitic on Nigeria as 95% of the cargoes the Cotonou Port handles in a year is consumed by Nigerians.

Experts to Buhari: Don’t succumb to blackmail on EPA treaty (Daily Trust)

A coalition of livestock rearer, farmers and other agricultural experts have urged President Muhammadu Buhari not to succumb to pressures and blackmails on the contentious Economic Partnership Agreements between the EU and ECOWAS countries. They made the call in Abuja at a stakeholders meeting jointly organised by the Association for the Promotion of Livestock in the Sahel and Savannah (APESS), the Confederation of Traditional Livestock Organisation (CORET), the Network of Breeders’ Organisation and Pastoralist in Africa ‘Reseau Billital Marrobe’ (RBM) and the Network of Farmers’ and Producers Organisations in West Africa (ROPPA).

5th Ministerial Retreat of the Executive Council: statement by Dr Nkosazana Dlamini Zuma

As citizens become more aware of their rights, including the programmes of Agenda 2063, we are likely to see more such mobilization around these aspirations. On governance, as we implement our national, regional and continental frameworks, we are also rebuilding the planning and implementation capacity destroyed primarily during the dead decades of structural adjustments. This process is uneven, but we must build the capacity of our institutions as we implement our programmes. The 5th Retreat will also consider the draft Commodities strategy, looking at oil and gas, minerals and agricultural products, so that these natural resources contribute towards job creation, industrialization, our collective food security and transformation.

Tanzania: Coal debate lingers despite Dangote’s assurance to JPM (The Citizen)

The owner of the Mtwara-based Dangote cement factory, Mr Aliko Dangote, says he is against his company’s decision to import coal and gypsum for use at the factory. “We will utilise whatever we have locally, and already we have been assured of getting the amount of coal that we want. I also gave the President my firm commitment for further investments, and we are looking into other areas like agriculture and coal,” the Nigerian billionaire said after holding talks with President John Magufuli at State House on Saturday. President Magufuli reiterated at the meeting what his ministers had been saying in the wake of the controversy surrounding cement manufacturers’ energy needs. “It is unthinkable for the country to allow the importation of coal while quality stocks that can last for over 200 years are available,” he said. However, Mr Dangote’s assurance did little to dismiss concerns on the quality and quantity of local coal, which were recently revealed by a government-commissioned report. [Dangote, Tanzania government reach natural gas supply deal]

Mozambique Economic Update: Facing hard choices (World Bank)

According to the report, the policy response has picked up pace in the second half of 2016. A revised budget for 2016 was a first step in adjusting the fiscal framework to the new realities. The Central Bank of Mozambique, stepped-up its monetary tightening regime. There are now signs that pressures on the external position are easing as imports have declined and the metical has remained relatively stable since October 2016. In addition, the initiation of an independent audit of the Empresa Moçambicana de Atum (EMATUM), Mozambique Asset Management (MAM), and Proindicus loans is a key step in rebuilding confidence. However, a sharper focus on fiscal adjustment in the medium term is still needed to restore fiscal sustainability. The Economic Update notes that Mozambique’s gas production prospects shape expectations for a recovery in growth to 6.6% by 2018. In the meantime, existing megaprojects are showing resilience and may benefit from a boost in the near term from an improving outlook for key commodity prices.

Spar Zambia to be sold off (Lusaka Times)

Innscor Africa Chief Executive Officer Julian Schonken said on Wednesday during the presentation of the company’s results that he expects the selloff Spar Zambia to be concluded by end of this year. Mr Schonken said: “Once the disposal of Zambian operations is concluded, we are essentially a Zimbabwe centric. We do need to look abroad but before we do that, we have a lot of work to do in Zimbabwe. We have had too many instances of good Zimbabwean businesses ourselves included outside out in the region and really battling because educational levels are completely different, the infrastructure is not what we are used to, there is bureaucracy. So we are going to be careful about how we do business before we go to other geographies,” Mr Schonken said.

Falling exports take their toll on SA’s current account deficit (Business Day)

SA’s current account deficit widened more than expected in the third quarter, as the value and volume of exports fell amid weaker output data from the productive sectors of the economy. The surplus on the trade account in the second quarter — when GDP growth also lifted to a surprise 3.5% — swung to a small deficit in the third quarter, which led the current account deficit to expand to 4.1% of GDP, the Reserve Bank said on Friday. That is up one percentage point from a deficit of 3.1% in the second quarter, and compares with economists’ forecasts of between 3.3% and 4% of GDP.

Rwanda’s dairy exports generated over Rwf9bn in 2016 (New Times)

Rwanda’s earnings from export of dairy products increased from $85,000 in 2012 to $11.5 million in 2016, Rwanda Dairy Competitiveness Programme II Impact Report shows. By 2016, according to the report, 78,000 additional litres of milk were being processed per day in Rwanda, helping meet a growing need for milk used in value added products. This move brought the quantity of milk processed daily to 110,000 litres. The report was released last week during the closure of dairy programme which ran from 2012 to 2016. [Kenya: Costly levies on farm produce open window to cheap imports]

Study shows food safety regulations will promote agriculture exports (AfDB)

Despite concerns over acceptance of African agricultural produce in the EU, a study on Tuesday revealed that the adoption of food safety regulations will promote inter-regional trade of agriculture commodities to the EU. ‎The study, “Food safety regulations and export responses of developing nations: lessons from South Africa and Namibia’s fresh and frozen fish exports to the EU” was presented by Shingirirai Mashura, a Certified Economist from the University of Zimbabwe. Mashura delivered the paper during a session on agricultural trade, at the ongoing 11th African Economic Conference in Abuja

Today’s Quick Links:

IFAD’s Kanayo Nwanze: Africa is squandering its potential

David Bennett: African agriculture needs trade not aid

Uganda: Experts warn government on Tripartite pact

AU to publish “The African Factbook”

Madagascar: World Bank Group commits $1.3bn support

Overview of developments in the international trading environment: annual report by the WTO Director-General

India’s trade grows 10% in Q3, currency ban to hit agri exports: Maersk Line (The Hindu)

From Bhutan’s red rice to goat meat from Mozambique: unique products can boost exports from the poorest countries

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