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tralac’s Daily News Selection
The selection: Monday, 29 February 2016
Later today, in Pretoria: South Africa's January 2016 trade data will be published
Later today, in London: launch of the 'Smart Industrial Policy for Africa in the 21st Century' report
Featured infographic, @ECA_Lopes: The services sector are taking the lion's share of Africa's GDP growth instead of industry or manufacturing
Featured tweet, @ECA_Lopes: Looking forward to the High Level Seminar [8-9 March] on the future of monetary integration @ATI_IMF
ECOWAS workshop: why has the convergence criterion, Wage Bill to Tax Revenue Ratio, been difficult to achieve?
Call for proposals: One of the key arguments put forth to removing the above criteria, especially the Wage Bill to Tax Revenue ratio, is the inability of a significant number of member states to meet them. Although research work has been done to better understand and explain the reasons behind the inability to meet them, some of the above criteria (Ratio of tax Revenue to GDP; Ratio of Public Debt to GDP, Ratio of Budget Deficit to GDP) no empirical work has been undertaken (to our knowledge) to explain why the Wage Bill to Tax Revenue Ratio criterion is yet to be met by many ECOWAS member States. In line with the growing concern on the non-achievement of this criterion, a regional workshop will be organized by the ECOWAS Commission in Abidjan, Cote d’Ivoire 2016, with a view to soliciting plausible explanation from ECOWAS Member States.
West Africa: Socio-economic profile in 2015 and prospects for 2016 (UNECA)
This report has been prepared against this backdrop on the economic profile of West Africa in 2015 and prospects for 2016. The current edition is divided into two parts. The first provides a review of the international economic environment, a sub-regional situation analysis and risks and prospects for 2016. The second part of the report provides the theme for the ECA country profiles. Lastly, the report makes recommendations on policies likely to accelerate the dynamics of the economic and social development of the sub-region. [Download]
Erdoğan's West Africa tour begins in Cote d'Ivoire (Daily Sabah)
Regional economic integration in the Horn of Africa: wishful thinking or a basis for peace? (ecdpm)
While IGAD has a strong focus and considerable renown on peace and security issues, economic integration is often seen as lower priority in the region. But rising economic interdependence in the region may be slowly altering the interests and incentives for conflict. By adapting to these changing interests and incentives, IGAD may be able to play a supportive role in promoting regional peace and prosperity with benefits at the national level. [The authors: Bruce Byiers, Sophie Desmidt]
Is the Grand Ethiopian Renaissance Dam transforming Ethiopia’s regional role? (SAIIA)
Concentrating on the GERD, this paper identifies several challenges to energy co-operation between Ethiopia and regional stakeholders. It argues that Ethiopia’s ownership of the GERD, the recent trade agreement between SADC, the Common Market for Eastern and Southern Africa and the East African Community, and growing interest in regional power pooling have created a timely opportunity for greater energy co-operation. Such cooperation will be sustained by an increase in power supply in these regions, but also by shifting national perspectives on regional prospects. [The author: Agathe Maupin]
Regional integration for a brighter future (Ethiopian Herald)
In his two days official visit in Djibouti recently, US Assistant Secretary of State Antony Blinken has noted the importance of this new program. These initiatives included: Plans to construct pipeline which will transport oil between Ethiopia's Awash region and Djibouti. Black Rhino, an American company that invests on African infrastructure development, will fund the project, which will also include the creation of new oil storage facilities in Djibouti. And the project is scheduled to begin in June 2016. Furthermore, another agreement was signed between Ethiopia and Djibouti to construct a pipeline to transport natural gas from the Ethiopian region of Ogaden to Djibouti. The Chinese company GCL-POLY GROUP won the bid that costs over U$3bn.
Tanzania: Non-tariff barriers a burden, minister admits (IPPMedia)
Speaking at the launch of the One Stop Border Post at Holili and Taveta on the Tanzania-Kenya border, Dr Mahiga said the multiplicity of checkpoints and other obstacles were serious issues that ought to have been resolved long ago. “I must admit that Tanzania had become an obstacle in getting certain goods and services to other neighbouring countries. For instance, the port of Dar es Salaam was one of the biggest NTBs,” Mahiga said. Flanked by East African Community secretary general Richard Sezibera, the minister described the Dar es Salaam port - which serves as an entry and exit point for imports and exports from countries like Rwanda, Burundi, DRC and Zimbabwe - as being overstretched. [Kenya-Tanzania border post to boost trade between states (The Standard])
CTI explains why local manufacturers are uncompetitive against imports (IPPMedia)
Delays in cargo release and Tanzania Revenue Authority's verification process at the Dar es Salaam Port are some of the obstacles the country’s manufacturers cite as factors that make them unable to compete. This was according to the recent Confederation of Tanzania Industries members’ survey results for 2015. In fact, when manufacturers were asked on time taken to clear cargo from the Dar es Salaam Port, the survey results revealed that 32% of 57 respondents to this question spent between 7 and 14 days to have their cargo completely cleared.
AfDB country strategy papers: Tanzania 2016-2018
Extract: These complementary interventions and investments along the Central and North-South corridors will support the country’s objective of using the regions in which the Bank’s projects will be located as catalysts for local economic development. This holistic development approach is expected to foster inclusive growth. Improvements in agriculture productivity will notably benefit women who currently account for the largest share of the agricultural labour force. Urban transport will also be supported to decongest Dar es Salaam to ease movement in and out the city as well as improve access to the seaport, further supporting economic inclusion. Investment in ports will aim to facilitate expansion in economic activity through trade and regional integration thereby supporting job creation and economic transformation. [Seychelles country strategy paper 2016-2018]
Angola produces more oil in 2015 but revenues fall 34% (MacauHub)
In 2015 Angola produced over 649 million barrels of oil, a 6% increase year on year and a daily average of 1.779 million barrels, Angolan state oil company Sonangol said Thursday in a statement. Natural gas production in turn fell 8% to 507,000 tons, in a year in which the natural gas processing plant in Soyo, in the north, remained at a standstill. Sonangol posted income of 2.29 trillion kwanzas (US$14.38 billion), “lower by about 34 percent against total revenue in 2014,” a drop that was partially offset by higher income from refining operations, distribution and sale of fuels.
Botswana: Anglo shuts down Botswana coal operations (Mmegi)
Anglo Coal Botswana managing director, Mothibedi Mothibedi told BusinessWeek that it would cease works at its 700 million tonnes Mmamabula coal fields and close offices in Botswana. “In line with this announcement, Anglo American will be making changes to the way it is structured, which includes the closure of certain offices, including Botswana. This will also see the company winding down all exploration and related activities in Botswana,” he said.
El Niño: SADC Consultative meeting outcomes
Short term: Member States and partners to establish El Niño specific coordination centre at the SADC Secretariat for this crisis. Member States and partners to establish logistics/transport task team to evaluate the available logistics capacity, procurement options, bottlenecks to free flow of food, coordinate and facilitate food commodity importation. Medium/Long term: Member States and partners to develop a regional resilience and M&E frameworks. Member States and partners to implement regional agricultural policies that promote production, productivity, competitiveness and improve access to markets and promote private sector participation.
COMESA signs collaborative pact with Great Lakes body (COMESA)
The MoU was signed on 25th February 2016 at the margins of the United Nations Private Sector Investment Conference in the Great Lakes Region, in Kinshasa, Democratic Republic of Congo. COMESA Secretary General, Mr Sindiso Ngwenya and the Executive Secretary of CEPGL Mr Herman Tuyaga signed on behalf of their respective organizations. Specifically both organizations have committed to work together in the areas of mutual interest including projects on trans-border trade, energy, agriculture, and infrastructure and also in the areas of peace and security. The two organizations also agreed to mobilize resources jointly to enable them to implement the projects.
COMESA seed mutual accountability workshop (COMESA)
Mr Marc Van Uytvanck, team leader, FoodTrade Eastern and Southern Africa, said the investment of US$1.8m will assist the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) to facilitate the domestication of harmonised seed trade regulations in the Eastern and Southern Africa. He added that FoodTrade through ACTESA will organize dialogues and activities with member states to promote and accelerate seed reforms at the national level in Zambia, Burundi, Malawi, Kenya, Uganda, Zimbabwe and Rwanda.
Kenya exports hit four-year high to Sh580bn (Business Daily)
Kenya’s exports last year grew by the largest margin in four years on increased orders from Uganda, Britain and US, offering crucial support to the shilling against the bullish US dollar. Official data shows that the country exported Sh580 billion worth of goods in 2015, up from Sh537 billion a year earlier, marking a growth of Sh43 billion, which is the highest since 2011 when exports rose by Sh102 billion. Uganda, the largest buyer of Kenyan goods like steel, paper and salt, stepped up its purchases from Nairobi to Sh60 billion in the review period from Sh48.6 billion. Orders from the US, mainly textiles and coffee, grew by Sh2 billion to Sh40.3 billion while Britain’s purchases rose by Sh4 billion to Sh40 billion.
Related: Flower sector earns Sh63b despite dip in export volumes (Daily Nation), Middle class appetite for imports ‘hurts growth’ (Business Daily)
India: FTAs have led to more imports than exports - Economic Survey (LiveMint)
The 42 free trade agreements signed by India so far have led to more imports than exports as the country has had to go for larger tariff reductions than its FTA partners because of relatively high tariffs, the Economic Survey 2015-16 said. “Analytical and other preparatory work must begin in earnest to prepare India for a mega-regional world,” it said. [Note: the Economic Survey and India's 2016-17 Budget can be accessed from here]
Related: Arun Jaitley could apply budget balm to record export slide (LiveMint), Indian Bilateral Investment Treaty: model text (Ministry of Finance)
G20: Finance Ministers and Central Bank Governors communiqué (Reuters)
Widespread, consistent and effective implementation of G20/OECD Base Erosion and Profit Shifting project is critical for a fair and modern international tax system. We reiterate our commitment to timely implementation of the BEPS project, and continue to monitor and address BEPS-related issues in order to ensure tax fairness and a level playing field. To ensure a consistent global approach, we endorse the inclusive framework proposed by the OECD for the global implementation of BEPS project and encourage all relevant and interested non-G20 countries and jurisdictions, which commit to implement the BEPS project, including developing countries, to join in the framework on an equal footing. We support that the specific challenges faced by developing countries in BEPS implementation should be appropriately addressed under the framework.
OECD's 'Going for Growth' report is published
Remittances and integrity: how to exist in harmony (World Bank Blogs)
How do countries ensure that remittance service providers – who are often serving the world’s poorest people – mitigate their risk for abuse by money launderers and terrorist organizations? This important question is addressed by new Guidance from the Financial Action Task Force (FATF), the international standard-setting body for anti-money laundering and combating the financing of terrorism (AML/CFT).
Oby Ezekwesili: 'Ideologies don’t deliver results for the poor' (Premium Times)
Grieve Chelwa: 'It’s the economy stupid, N°3' (Africa is a Country)
Dianna Games: 'Struggling Egypt looks across the Sahara to Africa’s rich potential' (Business Day)
Namibia: Economic analysts welcome Schlettwein’s contractionary budget (New Era)
Egypt to sign soft loans of $575m with Japan, South Korea (Ahram)
East Africa Trade and Investment Hub: Senior Economic Policy Advisor position
UN appoints independent advisors to position UN development system for 2030 Agenda
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