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tralac’s Daily News selection
The selection: Tuesday, 2 February 2016
China-Africa trade: 2015 flows reflect commodity punch (Standard Bank)
What is now unambiguously clear, however, given both the reduction in the value of African exports to China, and the necessary elimination of the “commodities not elsewhere specified” category, is that China is running a large trade surplus with Africa. Last year (2015), this surplus amounted to USD35bn. By comparison, in 2014 the United States ran a trade surplus of just USD4bn with Africa, while the EU27 and Japan both ran trade deficits with Africa, of USD2bn and USD6bn respectively. As such, while China remains Africa’s largest single trading partner, the diversity and balance of this trade relationship is now more obviously problematic.
This presents political challenges for Beijing, which has until now aimed to position itself as an equal, and developing world, counterpart in its commercial and political engagements with Africa. As a result, going forward, the tone of its engagements with the continent will certainly shift, as was already evidenced at last year’s Forum on China-Africa Cooperation in Johannesburg, at which China placed greater emphasis on “win-win” partnerships with Africa, and on the need for Chinese investment and financial assistance (largely in the form of concessional loans) to boost African manufacturing, skills and infrastructure development. [The author: Simon Freemantle] [Download]
USTR's public hearing on trade and investment in Africa: testimony by Jim Kolbe (USTR)
The hard truth is that there is a growing disillusionment in Congress and in the business community for preference programs, a sentiment not altogether unwarranted. AGOA may represent a major opening for trade an investment on the African continent, but there has to be a reciprocal showing from the other side. The quality of governance matters – tackling corruption, a competitive procurement process, transparency, an independent judiciary and adherence to the rule of law, the quality of the work force – these all matter to a business thinking of making a major investment in Africa. This brings me to the main point of my remarks. As important as preference programs may be, as helpful as foreign assistance can be in bringing about infrastructure developments, I am convinced that the most important objective of our assistance program in Africa must be the facilitation of internal reforms.
Note: senior USTR officials meet today with SA agricultural and foreign policy policy research sectors (AgBiz and SAIIA)
Congress passes 'Electrify Africa Act' (VOA)
The US House of Representatives on Monday passed the Electrify Africa Act, after nearly two years of trying to get the measure through both chambers of Congress. It now goes to President Barack Obama for his signature. The bill directs the president to establish a multi-year strategy to assist countries in sub-Saharan Africa in implementing national power strategies with a mix of energy solutions, including renewable energy sources. Obama and the ambassadors from 35 African countries support the partnership.
Launched today, in Pretoria: South Africa economic update – 'promoting faster growth and poverty alleviation through competition' (World Bank)
Promoting faster growth and poverty alleviation through competition is particularly important for South Africa, which is facing weak economic growth and limited fiscal resources and has to look to avenues outside the fiscal space to stimulate faster sustainable growth and progress towards its ultimate goal of eliminating poverty, outlined in the 2030 National Development Plan. The update presents a candid assessment of South Africa’s economic prospects. With growth declining in per capita terms the NDP goals are moving further out of reach. South Africa urgently needs fundamental reforms to kick start growth and promote job creation. Advancing with reforms to improve the lives of South Africans is particularly attractive, since they hold the potential to boost growth and speed up poverty alleviation. Competition policy demonstrates the power of bold reform to ease pressures in times of a tight public purse. The report is organized as follows: section one presents economic developments and prospects, and section two presents promoting faster growth and poverty alleviation through effective competition policy. [Download]
Related: Launching tomorrow, in Harare – the World Bank's latest Zimbabwe Economic Update
Botswana: Budget 2016 speech (Finance Ministry)
The preliminary overall balance of payments for 2015 is estimated at P3.3bn as at November 2015, a decrease from P11.4bn recorded in 2014. The current account surplus is estimated to fall, from P22.9bn in 2014 to P12.9bn in 2015. The positive contribution of net inflows of receipts from the Southern African Customs Union to the current account balance is expected to be offset by the trade deficit. Exports of goods and services are estimated to decrease by 18.6% in 2015, due to weak global demand for rough diamonds, while imports are also projected to decline by 8.1% in 2015.
Tanzania: Govt unveils 22.9trn/- revenue plan for 2016/17 (IPPMedia)
The Minister for Finance and Planning, Dr Philip Mpango, yesterday unveiled the proposed framework for the one-year 2016/2017 development plan under which the government expects to collect 22.9 trillion/- in total revenue. Tabling the draft plan before members of parliament in a planning committee session here, Dr Mpango said total revenue from internal sources including local governments was expected to reach 15.8trn/-, which would cover about 68.7 per cent of all expenditure requirements compared to 62.2 per cent for fiscal year 2015/16. He said out of this, tax revenue is expected to reach 14.106trn/-, being a 14.1 per cent increase on 2015/2016 figures. Non-tax revenue, meanwhile, is expected to reach 1.11trn/- while revenue from the municipal council sources is estimated at 584 .4bn/-, according to the minister.
TFTA: Swaziland might benefit from SACU exchange tariff offer (Swazi Observer)
The Southern African Customs Union exchange tariff offer with the East African Community might be a new hope to turn things around the SACU quandary facing the country. Revenue from SACU contributed 76% of the Swazi government income in 2009 but started to drop significantly in 2010 and continued declining with projections reflecting that they would amount to only about E4.5 billion in 2016. The finalisation of the tariff offer to Egypt, Ethiopia and other non-SADC Tripartite Free Trade Area member states by SACU might increase the region’s revenues.
New customs system ASYCUDA World rolls out on February 1 (Swazi Observer)
Southern Africa: Regional policy-makers face 'perfect storm' (IOL)
Technical Barriers to Trade: SADC report on standardisation, quality assurance, accreditation and metrology programme (WTO)
This document contains information provided by SADC at the Technical Barriers to Trade (TBT) Committee meeting of 4-6 November 2015 under Agenda Item 4 (Update by Observers).
Malawi: New laboratory to spur country’s economic transformation (UNIDO)
A groundbreaking ceremony, held today in Malawi’s second largest city, Blantyre, marked the construction of a new Standardized Quality Assurance and Metrology laboratory which aims to further advance the transformation of the country’s economy. Once completed, the laboratory will ensure goods produced and packaged in the country undergo internationally accepted checks and tests, thereby enabling the participation of Malawian products in the international market and protecting the rights of consumers.
East Africa ICE breakout session: The impact of trade regimes on industrialisation (UNECA)
The objective of the AEGM is to study how regional trade policies can support industrialization in the region. The discussion will be informed by a detailed study “Industrialization and regional integration in Eastern Africa”. The study will highlight the importance of coordinating trade policy and industrial policy in the region and show how trade policy can be used to boost industrialization. [The ICE meeting]
African Space Policy and Strategy: update (AU)
The African Union Heads of State and Government Summit has adopted the African Space Policy and Strategy as the first of the concrete steps to realize an African Outer Space Programme, as one of the flagship programmes of the AU Agenda 2063. They immediately urged the Member States, RECs, Partners and the Commission to raise awareness on the central role of space science and technology in Africa’s socio-economic development and mobilize domestic resources for the implementation of this policy and strategy. Adoption of the Space Policy and Strategy has set pace for collective revitalization of African space activities in contribution to the achievements of the overarching Agenda 2063. The Space Working Group was chaired by South Africa and comprised of members from Algeria, Egypt, Kenya, Tanzania, Nigeria, Ghana, Congo and Cameroon, and Namibia for job well done.
Dr Ibrahim Assane Mayaki: address to 34th NEPAD HSGOC
Growth in global imports of information and communications technology slows to five-year low (UNCTAD)
Global imports of information and communications technology goods grew by only 1% in 2014, the latest year for which figures are available, the lowest rate of growth compared to the preceding five years, newly released UNCTAD data show. Developing countries, and those countries changing from a centrally planned economy to a market economy, accounted for more than half (57%) of total global imports, which reached a value of $2.1 trillion. The largest increases in ICT goods exports were noted for the Russian Federation (up 80%), the Philippines (up 40%), Latvia (up 30%), South Africa (up 25%), Poland (up 21%), Finland (up 13%) and Australia (up 12%). In total, ICT goods accounted for 12% of world merchandise imports in 2014. This proportion ranged between 44% for Hong Kong, China, around 20 to 24% in China, Malaysia, the Philippines and Singapore and less than 1% in Afghanistan and Mauritania.
UN Global Initiative on Decent Jobs for Youth (FAO)
Under the lead of the International Labour Organization, the Initiative was developed by 19 international organizations that are committed to increasing the impact of youth employment policies and expanding country-level action on decent jobs for young women and men. Globally, young people account for approximately 24% of the working poor - this dynamic is particularly pronounced in Africa, where over 70% of youth subsist on $2 per day or less. FAO will be leading one of the eight thematic areas of the strategy, on Youth in the Rural Economy, while contributing to others. [Draft Strategy for Global Initiative on Decent Jobs for Youth]
Robots could eat all of Ethiopia's jobs; South Africa, Nigeria and Angola not safe either (MG Africa)
Nearly all jobs in Ethiopia, and more than half of those in Angola, Mauritius, South Africa and Nigeria could be taken over by automation, according to an incisive new study, throwing a big spanner in continent’s hopes of manufacturing its way into prosperity. This is because the majority of jobs in those countries are either low-skilled or in industries highly susceptible to computers and robots, including the continent’s mainstay agriculture. The study, which draws from World Bank research, is authored by US-based bank Citi and the Oxford Martin School, a research and policy arm of the University of Oxford. It finds that 85% of jobs in Ethiopia are at risk of being automated from a pure technological viewpoint, the highest proportion of any country globally.
Mali-Côte d’Ivoire corridor: funding update (AfDB)
This high-impact project will be financed with concessional resources from the African Development Fund and the Transition Support Facility. It involves the construction of 140 kilometres of improved asphalt roads, creation of a high-quality transport corridor between Bamako in Mali and the port of San Pedro in Côte d’Ivoire. The project is expected to open up Mali and to and facilitate the transportations of persons and goods. The road passes through one of the country's major farming regions.
Leaders urged to promote intra-Africa air travel (Daily Nation)
An air transport industry lobby group Monday called on African governments to remove air traffic barriers to promote intra-Africa travel. Africa Airlines Association Chief Executive Engineer Elijah Chongosho said air transport business for passengers and cargo continues to suffer as local carriers face hefty taxes, fees and other charges associated with intra-Africa trade. “The situation worsens when some governments collude with foreign governments to block Africa airlines from their airspace in favour of foreign airlines whose officials ‘grease’ the palms of senior government officials,” he said.
Forging a West African Consensus on UNGASS (Premium Times Blogs)
The three communiqués reviewed here are a reminder that the problem of drug policy reform will go way beyond UNGASS. The global prohibitionist approach to narcotic drugs has been firmly institutionalised in West Africa’s legal systems, and in its political and judicial cultures. To change this demands much more than making uplifting speeches at the United Nations. [The author, Lansana Gberie, was a consultant for OSIWA on UNGGASS 2016]
African Development Bank to contribute to funding Nigeria’s deficit
AfDB high-level mission to Nigeria
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