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tralac’s Daily News selection: 30 October 2015

News

tralac’s Daily News selection: 30 October 2015

tralac’s Daily News selection: 30 October 2015

The selection: Friday, 30 October

Just released: South Africa’s September 2015 trade statistics

The India-Africa Forum Summit: outcome documents, commentaries

Delhi Declaration: 'Partners in Progress: towards a dynamic and transformative development agenda'

On trade and Industry: Work closely together within the framework of the Tripartite Free Trade Agreement which brought together SADC, EAC and COMESA for the expansion of trade and investment linkages and extend the framework to other Regional Economic Communities

Support the establishment of the Continental Free Trade Area aimed at integrating Africa’s markets in line with the objectives and principles enunciated in the Abuja Treaty, establishing the African Economic Community and its resolve to support the work of the Continental Free Trade Area-Negotiating Forum towards concluding the negotiations by 2017;

Promote Public Private Partnership by encouraging Indian businesses to set up skills development units in African industrial zones with the aim to train African engineers, technicians, managers and workers as well as other experts in areas such as food security and solar energy;

India-Africa Framework for Strategic Cooperation

While underlying the importance of private investment in achieving sustainable and inclusive economic growth, the two sides decide to share experience and knowledge in this regard, and to:

Embark on sensitization efforts to create greater awareness of India's DFTP scheme among businesses in Africa and appeal for the extension of this duty free preference scheme to all African states; Accelerate trade between Africa and India through a coordination mechanism composed of representatives of the Government of India and the African diplomatic Missions represented in India to promote investment from Africa into India and facilitate the setting up of African-owned businesses in India;

Summit speeches and national statements can be accessed here

President Kenyatta calls for value addition (Daily Nation), Make in South Africa, says foreign minister Nkoana Mashabane (Economic Times), Frannie Leautier: 'Africa is facing new challenges' (IOL), More power to Indo-Africa partnership (editorial comment, Economic Times)

Continental Sanitary and Phytosanitary Committee for Africa (African Union)

The main aim of the Continental SPS Committee is to support the implementation of Comprehensive African Agriculture Development Programme through ensuring the coordination of SPS matters. The specific task of the Continental SPS Committee would be to mainstream SPS issues (food safety, plant and animal health) into CAADP implementation and other agriculture, trade-related, and environmental initiatives within its results framework. The meeting of the Continental SPS Committee, scheduled for October 28-30 2015 in Kampala, is to attain the following objectives:

Roberto Azevêdo: ‘More flexibility needed to achieve outcomes in Nairobi’ (WTO)

“While members have identified some important potential deliverables for Nairobi, they should not be taken for granted. I have always said that we need to work hard and show both flexibility and a willingness to contribute if we are going to make progress. But those elements have not materialised, and so the reality is that we are not moving forward. “We need two things for success at the Ministerial Conference. First we need serious engagement on substance in the Negotiating Groups. Second, members need to rethink the red lines that they have been drawing. We must see more flexibility and pragmatism in the handful of days and weeks remaining if we want to have positive outcomes in Nairobi.”

WTO MC10: Developing countries propose reforms on agriculture, cotton, safeguards (Bridges)

WTO publishes its annual suite of trade and tariff data (WTO)

The WTO has released new editions of its four key statistical publications: International trade statistics, Trade profiles, World tariff profiles and Services profiles. The four publications provide detailed breakdowns of the latest data on world trade.

OECD Global Forum on Competition: keynote address by ILO's Guy Ryder

The share of national income going to labour has declined in almost all G20 countries, with productivity rising much faster than real wages. Within the labour share, the highest earners have captured an increasingly large portion, while those at the bottom have seen their shares decline significantly. Many emerging G20 economies, despite having lifted millions of people out of absolute poverty over the past two decades, have seen sharp increases in income inequality. Overall, the reality for emerging markets and developing countries is more mixed than for the developed world. Inequality has been increasing in some – such as Indonesia and China – while falling in others – such as Brazil and Argentina.

Turning vision into reality: Namibia's long-term development outlook (ISS)

Using the International Futures forecasting system, this paper first presents a plausible long-term population forecast for Namibia. This forecast is then used to assess key targets from the National Development Plan (NDP4) and Vision 2030, Namibia’s long-term development strategy. The paper then plots three scenarios to chart Namibia’s potential progress. [The author: Steve Hedden]

Namibia: Urban migration will require massive capital investment (New Era)

With Namibia’s urban population projected to increase from the recorded 33% in 2001 to approximately 75% in 2030, the rural urban migration phenomenon will require major capital investments to provide access to water and sanitation services. This will especially apply to the very poor who cannot and will not be able to afford to pay for these absolutely essential services, says Minister of Agriculture, Water and Forestry John Mutorwa. Mutorwa sent out this warning on Tuesday when he addressed the SADC Future Challenges Forum on Food, Water and Energy Security at the Polytechnic of Namibia.

Strong El Niño presence does not bode well for Namibian farmers (New Era)

The Namibian agricultural sector is still reeling from the effects of the 2013 drought (the worst in 35 years) and the prolonged dry spell of 2014/15. Some 550 000 Namibians are in direct need of food aid now and government has rolled out a comprehensive drought food aid programme worth more than N$55 million.

Namibia: Solidarity tax compulsory (The Namibian)

The solidarity tax announced by President Hage Geingob this week will be compulsory for both individuals and corporate entities, State House confirmed yesterday. Aochamub said the tax will be a significant component of a complex set of measures to eradicate poverty by 2025.

Rovuma Basin Resources: update (Club of Mozambique)

The Mozambican state could gain as much as $212bn in taxes, dividends, bonuses and other payments over the lifetime of the liquefied natural gas project in Palma, in the northern province of Cabo Delgado, according to the chairperson of the National Hydrocarbon Company, Omar Mitha. Mitha’s calculations are that, if only two LNG trains are built, payments to the state will amount to $67bn dollars in the project’s lifetime (up to 2035). But if six trains are built, then payments will rise to $212bn dollars. With six trains, Mitha put the increase in Mozambican GDP by 2035 at $39bn dollars. Per capita GDP, he added, would rise from the 2014 figure of $650 to $4,500 in 2035, in real terms.

Mozambique: discussions on the 5th Review under the PSI (IMF)

“While medium-term prospects remain positive, short-term challenges have become more complex. As other countries in the region, Mozambique is currently experiencing an external shock associated with the drop in commodity prices, lower growth in trading partners, and delays in investment associated with large natural resource projects. Excessively expansionary policies in 2014 (especially on the fiscal side) also contributed to the current difficulties the country is facing. Imports have continued to grow at a fast pace at 17% year-on-year, while exports have stagnated. Capital inflows have also declined substantially compared to a year ago. This has created pressures in the foreign exchange market and has caused a sharp decline in international reserves and a depreciation of the metical."

90% of income in Africa used to fund imports (ThisDay)

Maritime experts have said ports in African countries are designed mostly for imports rather than export, noting that not less than 90% of the income accruing into the African continent is used to fund import. According to them, design and location of ports in African countries do not make room for export trade whereas in Western states ports are designed purposely for exports. The maritime experts stated this in a communiqué issued at the end of the just concluded inaugural edition of the international sea trade and investment convention 2015 with the theme “Exploring New Trade Frontiers.”

South Africa's Transnet: Ports still the best ‘Gateway into Africa’ (Shipping News), Transnet able to take on more debt to build infrastructure (Business Day), Higher volumes at ports lift Transnet (Business Day)

Mozambique: Quantifying spillover effects from large farm establishments (World Bank)

Almost a decade after large land-based investment for agriculture increased sharply, opinions on its impact continue to diverge, partly because (positive or negative) spillovers on neighbouring smallholders have never been rigorously assessed. Applying methods from the urban literature on Mozambican data suggests that changes in the number and area of large farms within 25 or 50 kilometers of these investments raised use of improved practices, animal traction, and inputs by small farmers without increasing cultivated area or participation in output, credit, and nonfarm labor markets; or, once these factors are controlled for, yields. The limited scope and modest size of the estimated benefits point toward considerable unrealized potential. The paper discusses ways to systematically explore the size of such potential and the extent to which it is realized.

Botswana, Zimbabwe explore trade opportunities (Mmegi)

Last week, business people from the Confederation of Zimbabwe Industry and Business Botswana met in a forum to strengthen trade ties between the two countries’ business communities and consider joint venture opportunities.

Health finance successes in SADC: service provider needed (FinMark Trust)

Standard Bank moves into Ethiopia (IOL)

Standard Bank Group has expanded its East African footprint with the official opening of a representative office in Ethiopia. The bank's chief executive, Ben Kruger, who opened the representative office in Addis Ababa, said on Friday the growth potential for the East African region continued to attract significant investment. “We are able to leverage our strong position on the continent, our strategic partnership with the Industrial and Commercial Bank of China (ICBC), and our sector expertise in natural resources to facilitate capital investment in support of growth, and to connect African markets to each other,” Kruger said.

A snapshot of China's service sector (OECD)

In the envisaged transition from “made in China” to “created in China”, the service sector is expected to play a prominent role. To that end, the service sector is gradually being provided a more even playing field as privileges for manufacturing industries are being withdrawn and a more equal treatment of producers across sectors is being adopted. This paper provides a snapshot of the service sector, its size, the ownership of its firms, and productivity across types of firms depending on ownership, sector, age, size and region.


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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)

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