News
tralac’s Daily News selection: 14 October 2015
The selection: Wednesday, 14 October
Starting today, in Maputo: 2nd Nordic-Mozambican Conference on Inclusive Growth
Now available:
'Shaping economic transformation in Tanzania' (DEGRP/ REPOA), Global Goals, African Realities: building a sustainable future for all (Africa Progress Panel)
Concluded, in Abuja: the Accelerating Trade in West Africa contact group consultation (SAANA)
Accelerating Trade in West Africa is a new initiative aiming to establish a durable, multi-donor vehicle dedicated to advancing regional integration, expanding trade and lowering trade costs along key trade routes in West Africa. Working alongside regional Commissions, national government and the private sector, ATWA will address both “soft” policy and trade facilitation issues and “hard” infrastructure constraints to ensure meaningful impact. At present, donor support to regional trade and integration in West Africa is already substantial, but it is fragmented. This increases the complexity and transaction costs of regional efforts, for donors and recipients alike, and reduces the resources available for achieving meaningful results. ATWA rests on the idea that a more integrated approach could achieve better results. [Twitter: #ATWA]
Call for fast-tracking integration of sub regional Free Trade Areas (COMESA)
COMESA, EAC and ECOWAS sub regions should work out ways of integrating their respective Free Trade Areas to fast track the realization of the Continental Free Trade Area in the First 10 Years of the Implementation of Africa Agenda 2063. COMESA Secretary General Sindiso Ngwenya said the pragmatic approach, which has been accepted in principle by the African Union, is to build on what the different sub-regional economic communities have achieved. He was addressing the annual briefing of the African Regional Economic Communities to Member States of the United Nations and its entities that took place in New York Monday 12 October 2015.
Lapsset blow as Uganda signs pipeline deal with Tanzania (Daily Nation)
Kenya’s prospects of a crude oil pipeline through Hoima-Lokichar-Lamu could be crushed after Uganda signed an agreement with Tanzania to explore the Tanga route. If Uganda goes ahead to construct the pipeline through Tanzania, it will deal a major blow to Kenya’s Lamu Port-South Sudan-Ethiopia Transport corridor (Lapsset) project. Uganda, Tanzania, the Tanzania Petroleum Development Corporation and Total E&P Uganda signed a memorandum of understanding dictating new pipeline arrangements.
The European Union's regionalism diplomacy in Africa: an English School Approach (CRIS)
Instead, EU regionalism diplomacy should acknowledge and incorporate the anticolonial pan-African roots of African regionalism. Overall, the EU should seek a more diplomacy-focused, negotiated Africa-Europe interregional relationship. The paper concludes with an outline of a pan-African approach to regionalism diplomacy and avenues for future research. [The author: Ueli Staeger]
DRC: 2015 Article IV Consultation (IMF)
Policy recommendations: The authorities are urged to move swiftly to meet these challenges in order to preserve the hard-won gains and address rising inequality. In particular, they need to: (i) step up domestic revenue mobilization, (ii) reinforce the de-dollarization process and accumulate more international reserves; (iii) remove bottlenecks to private sector activity, (iv) strengthen governance and enhance transparency in the management of natural resources, and (v) implement the measures identified in the 2014 Financial Sector Assessment Program (FSAP) aimed at promoting both the soundness and inclusiveness of the financial system.
Economic expansion and the delay of democracy in Kinshasa (Daily Maverick), South Africa, DRC set to enhance cooperation (Shanghai Daily)
Nigeria, South Africa to boost diplomatic, trade relations (Footprint to Africa)
President Muhammadu Buhari will soon be hosting his South African counterpart on a state visit in Abuja as both leaders are now working to boost diplomatic relations of the two nations. This was revealed by the Vice President, Prof. Yemi Osinbajo. Osinbajo, who just returned from a visit to South Africa, also held brief meetings over the weekend with both President Jacob Zuma and Deputy President Cyril Ramaphosa, where issues of common interests to both Nigeria and South Africa were discussed.
Botswana shows interest in Angolan oil (Angola Press), Zimbabwe seeks to import more Botswana beef (Mmegi)
Namibia: The Retail Charter and the role of consumers (New Era)
This paper identifies important opportunities linked to growing local and regional demand, and what constraints exist for their exploitation. It identifies several areas of untapped, substantial opportunities for Zambia’s manufacturing sector. These opportunities include strengthening linkages to urban demand for processed food, increasingly structured around supermarket retail chains, and to copper mining demand for goods and services.
The potential for border development zones on South Africa's Northern border (TIPS)
There are challenges to using BDZs in South Africa, including the small size and underdeveloped nature of our neighbouring countries' economies. But border towns in South Africa are already the focus of zone development, with SEZs planned for both Mahikeng (on the Botswana border) and Musina (on the Zimbabwean border). Bringing elements of BDZs into these pre-existing SEZ projects could add extra punch to their development impact. How to make BDZs work in Mahikeng and Musina is the focus of ongoing research, but some preliminary suggestions are included in the study. These include: [The authors: Christopher Wood, Clarence Siziba]
South Africa: The role of business in local government and local economic development (SA Reserve Bank)
Let me firstly emphasise that the current environment is testing for small businesses. With agricultural output and mineral commodity prices down, the spending power arising from agriculture and mining-based communities and enterprises is under considerable downward pressure. This also triggers various multipliers and accelerators in the economy, working in reverse gear and extending the pain to other sectors, capital expenditure and the like. Secondly, every opportunity should be grasped and, as indicated above, the depreciated external value of the rand may be one such opportunity, bringing about more attractive relative prices of exports and import-substituting goods and services. Agile businesses that can respond appropriately stand to benefit. [The author: Francois Groepe, Deputy Governor]
Rwanda: New platforms to boost public-private sector dialogue (New Times)
Government is seeking to establish more than 20 new platforms to strengthen public-private sector dialogue. The initiative seeks to enhance efficiency and boost competitiveness of the small and medium entrepreneurs. The platforms will mainly focus on the agriculture sector, leather industry, Information Communication Technology and the SMEs among others. They will also focus on the major business constraints including limited access to finance, high tax rates and inadequate infrastructure.
East Africa left to rue as Africa bags $87bn in foreign direct investments (New Times)
In its 2015 Africa Investment Report, the Financial Times indicates that coal, oil and gas, as well as manufacturing, were the most attractive sectors, accounting for 38 and 33%, respectively, of the total announced FDI last year. In total, 464 foreign companies invested in Africa last year but this number only accounted for 13% of the global FDI capital in 2014 and just 5% of the total projects registered. Western Europe was the largest source of FDI to Africa last year with 252 projects followed by intra-Africa investments that accounted for at least 131 projects. East African economies almost failed to make it to the top ten destinations for FDI in 2014 after Kenya was placed at the bottom of a list topped by Egypt and Angola which claimed 21 and 19%, respectively, of the total capital invested last year. [African Department press briefing transcript (IMF)]
Committee on Trade and Development: summary report of the Fifth global review of Aid for Trade - 'Reducing trade costs for inclusive, sustainable growth' (WTO)
A clear theme throughout the discussions at the Review was that trade costs matter. High trade costs act as a barrier on the integration of developing countries into regional and global value chains, and thereby into the global economy. The sessions at the Review showed that this is especially true for LDCs, landlocked developing countries and geographically remote, small economies. All these countries are particularly weighed down by heavy trade costs. Action to reduce trade costs will help deliver the Sustainable Development Goals, and the implementation of the WTO's Trade Facilitation Agreement (TFA) will be an important step in this direction.
African Cargo for African Ship Owners: update from the First African Maritime Conference (AU)
The outcomes of the meeting spotlight the necessity for having: A Single African Maritime Transport Market to be adopted among the first-track projects under the First Ten-Year Implementation Plan of Agenda 2063 along the lines of the “Single African Air Transport Market”; an African fleet; an African Cabotage; a Legal framework for African Fleet; facilitating the financing of ships; building ships in Africa; job creation as well as education.
Strategic importance of maritime security in the Gulf of Guinea (US Africa Command)
At the regional level, the conference will be an important step in the implementation of the 2013 Yaoundé Code of Conduct. Angola is a leader in addressing conflicts on the continent and, with an extensive coastline, has an important role and interest in addressing the continent’s blue economy and maritime concerns as well. President Jose Eduardo dos Santos decided in our first meeting together that Angola would host the maritime and energy conference, since then our two countries have collaborated closely on organizing the event. The United States is pleased to partner with Angola through AFRICOM, on this important initiative to support the protection of the blue economy in the Gulf of Guinea. [The author: Amb Helen La Lime, Luanda] [Remarks by Gen David Rodriguez]
Bagamoyo port to handle fourth generation ships (IPPMedia)
The envisaged port of Bagamoyo will have no competitor along the eastern Africa Indian Ocean because it will handle fourth generation ships, the government has said. Yesterday Industry and Trade Permanent Secretary Uledi Musa dismissed fears of the new port facing stiff competition from other ports in the region as unfounded. He said in Dar es Salaam that the US$10 billion harbour will not be competing with the ports of Djibouti, Mombasa, Dar es Salaam, Beira and Durban because it will handle only mega ships.
Sh31bn terminal at port of Mombasa to be ready in June (Daily Nation), Kisumu port banks on EAC integration to revive operations (Business Daily), Mtwara Port handling capacity set to increase (Tanzania Daily News), France maritime investors target Ghana’s ports (Footprint to Africa)
Expanding social protection offers a faster track to ending hunger – UN report (UN)
The State of Food and Agriculture 2015 shows that in poor countries, social protection schemes – such as cash transfers, school feeding and public works – offer an economical way to provide vulnerable people with opportunities to move out of extreme poverty and hunger and to improve their children's health, education and life chances. According to FAO, such programmes currently benefit 2.1 billion people in developing countries in various ways, including keeping 150 million people out of extreme poverty. Expanding such programs in rural areas and linking them to inclusive agricultural growth policies would rapidly reduce the number of poor people, the report says. [Downloads]
The BRICS Partnership and Multi-level Governance: an unexplored dimension (GCIS)
The international conference seeks to explore how multi-level government – a dominant feature in all five BRICS countries – is impacted on and, in turn, may impact on the BRICS’s economic and social development initiative. Of particular importance is the role of domestic intergovernmental fiscal relations and metropolitan cities. The conference will be an engagement between academics, thinks tanks and officials of the BRICS countries. Scholars and officials from BRICS countries will present 15 papers.
Counties now key selling points for Kenya’s opportunities (Daily Nation)
Ongoing expos to market the 47 counties as investment hubs have created a platform that places Kenya on the world map as a land of opportunities. Kenya Investment Authority General Manager in charge of Investment Promotion Mr Pius Rotich said the agency is partnering with counties to create a database for all investment opportunities.
Briefing by African RECs: 'Silencing the guns in Africa: the nexus between peace, security, governance and development' (UN)
Following the successful launch of Africa Week 2015, Member States gathered in the afternoon to hear from African Regional Economic Communities about their efforts to silence the guns in Africa by 2020. [Various downloads available] [UNSC unanimously adopts landmark text on women, peace, security agenda (UN News Centre)]
China foreign trade decline narrows in September (Xinhua)
China's foreign trade dropped 8.8% year on year in September to 2.22 trillion yuan (about $352bn), less severe than the 9.7% contraction in August, official data showed on Tuesday. Exports dropped 1.1% to 1.3 trillion yuan and imports decreased 17.7% to 924 billion yuan. Exports to emerging markets have been rising. Foreign trade grew 5.8% with ASEAN, 8.7% with India, 1.3% with Latin America and 6.1% with Africa.
New EU Trade and Investment Strategy proposals (EU)
India opposes proposed European Trademark rules (LiveMint)
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This post has been sourced on behalf of tralac and disseminated to enhance trade policy knowledge and debate. It is distributed to over 300 recipients across Africa and internationally, serving in the AU, RECS, national government trade departments and research and development agencies. Your feedback is most welcome. Any suggestions that our recipients might have of items for inclusion are most welcome. Richard Humphries (Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Twitter: @richardhumphri1)
