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tralac’s Daily News Selection
The selection: Wednesday, 9 March 2016
Starting today, in Lusaka: the AU-RECs-UNECA-AfDB-NEPAD-ACBF joint coordination meeting
The meeting, 9-11 March, is expected to achieve the following outcomes: Updates on work in progress on the implementation of the first Ten-year implementation plan of Agenda 2063 and a strategic discussion on how to accelerate implementation of flagship projects by the AUC, RECs and other institutions. The meeting will also look at how the SDGs fits in and are subsumed in Agenda 2063. Make recommendations on the delineation of roles and responsibilities amongst AUC, RECs, NPCA and other relevant institutions to ensure the execution of different programmes in the implementation of Agenda 2063 and improve teamwork, responsibility sharing and strengthen role of RECs as the building blocks of the AU. [Downloads]
WTO Committee on Sanitary and Phytosanitary Measures: submissions by AUC, SADC (WTO)
Angola, Mozambique: trade between China and Portuguese-speaking countries falls 18% in January (Macauhub)
Trade with Angola, China’s second largest Portuguese-speaking trading partner, totalled US$1.100bn (-23.23%), with Chinese exports falling 46.41% to US$156m and imports of Angolan products reaching US$944 million (-17.29%). The value of trade between China and Mozambique was US$129m (-33.11%), with Chinese exports of US$86m (-44.17%) and imports of US$43m (+10.25%).
Tanzania: tourism industry now worth over $2bn a year (IPPMedia)
While a marked increase in foreign tourist arrivals boosted Tanzania’s tourism earnings in 2015 to $2.23bn, industry players have warned that an unconducive business environment and security concerns in the region could soon stifle further development of the sector, and maybe even cause a decline. Despite a tough tax regime, infrastructural constraints and local tourism firms recording a slowdown in business, the Bank of Tanzania confirmed in a new report issued yesterday that tourism continues to be the country’s biggest source of foreign exchange at present, easily outperforming the mining and manufacturing sectors. Tourism revenues soared 11% in 2015 on the back of higher tourist numbers, the central bank said in its latest monthly economic review. [Download: January Monthly Economic Review]
Kenyan firms record highest export rate in 10 months (Business Daily)
Exports by Kenyan firms grew at the highest rate in 10 months in February, driven by increased demand for their goods in neighbouring countries, according to a survey of purchasing managers in 400 companies. The CfC Stanbic Purchasing Managers Index survey for February shows that the growth in export orders allowed the firms to keep output levels high and hire additional staff in an effort to cut backlogs.
Rwanda's export challenge (New Times)
My view is that Rwanda is fast approaching that tipping point where extra effort towards efficiency is rewarded with less economic gains. For the Rwandan economy to continue to thrive and breakout of the poverty trap, some radical changes at a structural level have to be made. Allow me to share three long term strategies that could go some way in expanding the economy: [The author: Eddie Mugarura]
Zimbabwe: January 2016 trade data (NewsDay)
Data released by the Zimbabwe National Statistics Agency last week showed that exports in January amounted to $249 million against $399 million worth of imports, which remain heavily skewed towards consumptive products following a significant drop in raw materials importation. Most of the imports were consumptive products such as bottled water, sugar, soap, cooking oil, cellphone handsets, electronics, vehicles spares, clothing and second hand vehicles. Cumulatively, imports from January 2015 to January this year amounted to $6,4 billion while exports were at $2,9 billion.
South Africa: Deficit and rand dilemma for Reserve Bank (Business Day), Moody's places South Africa's Baa2 ratings on review for downgrade: statement (Moody's), Peter Attard Montalto, emerging market analyst with Nomura: 'SA Inc: more questions than answers' (IOL), Quintin Starkey, chairman of the Metal Recyclers Association: 'Proposed scrap metal export clampdown will hit workers' (Business Day), Rong Yansong, economic and commercial counsellor of the Chinese Embassy, Pretoria: 'Economic transformation: China, SA should co-operate' (IOL)
Kenya: Training to improve market access for local products (COMESA Business Council)
The training comes after the successful completion of similar workshops in Zambia and Rwanda; 80 agro-food suppliers in Zambia and 97 in Rwanda received training on quality and food safety standards. This training is timely for Kenya after the recent unveiling of the decade long plan, aptly christened Kenya’s Industrial Transformation Programme, which looks beyond import-substitution and prioritizes leveraging on local industries to grow the manufacturing sector to levels above 15% of GDP from a static 11% over the past decade.
Shippers lobby’s new cargo clearance system set for pilot (Business Daily)
The Shippers Council of East Africa will roll out the Advance Cargo Shipment Information System for two months starting March 18 as the lobby seeks to make trade and cargo importation and exportation less tedious for shippers. The system, also referred to as Electronic Cargo Tracking Notes (ECTN), is envisaged to reduce congestion at the port and cut operation costs resulting from demurrage and storage charges for imports. The system is also meant to improve efficiency and curb revenue leakages. Cargo heading to Kenya will be covered by Electronic Cargo Tracking Notes or Cargo Shipment Information — a maritime document issued by the shipper at the loading port providing information including its flows to destination country.
Related: EAC’s joint cargo clearance deal bears fruit for traders (Business Daily), Kenya to talk up her security, address costs in Uganda pipeline meet (Daily Nation), George Wachira: 'What Uganda-Tanzania crude oil pipeline pact means for Kenya' (Business Daily)
WTO members urged to start preparing for entry into force of Trade Facilitation Agreement (WTO)
The chairman of the Preparatory Committee on Trade Facilitation, Esteban Conejos, told the committee on 3 March that the WTO has now received 81 “Category A” notifications from members indicating which provisions of the TFA they will implement upon entry into force of the Agreement (or one year after entry into force for least developed countries – LDCs). “What is even more encouraging is that we also started receiving a growing number of B and C notifications,” the chairman said. “This is especially important since we are getting closer to seeing the Trade Facilitation Agreement enter into force – which equally shortens the remaining time for submitting B and C-related inputs.” [Various downloads available]
Chinese firms explore investments in four African countries at ITC-organised seminar (ITC)
Representatives from 90 Chinese companies last week expressed strong interest in investing in Africa, following a seminar on promoting investment in Ethiopia, Kenya, Mozambique, and Zambia. More than 190 businesspeople joined government officials from China and the four African countries at the 25-26 February event in Tangshan, Hebei Province, China. Organized by ITC, the China-Africa Development Fund (CADFund) and the China Council for the Promotion of International Trade (CCPIT), the seminar was held under the Partnership for Investment and Growth in Africa (PIGA), which aims to promote growth and job creation in Africa by deepening trade and investment ties with China.
Reallocation of unused FY 2016 WTO tariff-rate quota volume for raw cane sugar (USTR)
Based on consultations with quota holding countries, USTR is reallocating 86,533 metric tons raw value of the original TRQ for raw cane sugar from countries that are unable to fill previously allocated FY 2016 WTO raw sugar TRQ quantities. USTR is allocating this quantity to the following countries in the quantities specified below: [including] Malawi, Mauritius, Mozambique, South Africa, Swaziland, Zimbabwe.
US commerce official to lead department’s education trade mission to Africa (University Business)
US Assistant Secretary of Commerce for Industry & Analysis Marcus Jadotte is leading 25 US colleges and universities on a three-country education trade mission to Cote d’Ivoire, Ghana and South Africa, March 7-13. Educational services are one of the United States’ top 10 services exports. During the 2014-2015 academic year, the United States hosted nearly one million globally mobile students. Slightly less than 34,000 students, or three percent, came from Sub-Saharan Africa.
Harmonising national laws in the East African Community (AWEPA)
The EALA Committee on Legal, Rules and Privileges undertook an oversight activity to assess and evaluate the process of harmonisation of national laws in the East African Community. Between 23-25 February, the LRP Committee assessed and reviewed the activities of the Sub-Committee on the Approximation of National Laws. Subsequently, the Committee will make recommendations on how the process of the harmonisation of laws can be improved. [UN launches platform to enhance disaster response in E Africa (CIHAN)]
Strengthening SADC parliamentary engagement in the budget cycle (AWEPA)
AWEPA is pleased to announce its new programme, Strengthening SADC Parliamentary Engagement in the Budget Cycle, funded by the UK Department for International Development. Extensive comparative research, currently absent in the SADC region, will be conducted to ascertain the baseline of existing legal frameworks, parliamentary activism, and staff capacity available to support parliamentary engagement in the ex-ante phase of the budgeting process. The resulting data will inform peer-to peer reflection and analysis among SADC MPs for further discussion in their respective home parliaments.
The African Development Bank and the World Bank jointly hosted a High-Level Panel session on March 3, 2016. The session was part of the World Bank's Fragility, Conflict and Violence Forum, which took place from March 1-3, 2016 in Washington, DC. The natural resource sector is an important part of Africa's economic activities, contributing more than 20% of GDP in 22 resource-rich countries on the continent. However, fragility presents a major constraint on the extent to which natural resources contribute to equitable and sustainable development on the continent.
David Lipton: 'Policy imperatives for boosting global growth and prosperity' (IMF)
What may be most disconcerting is that the rise in global risk aversion is leading to a sharp retrenchment in global capital and trade flows. Last year, for example, emerging markets saw about $200bn in net capital outflows, compared with $125bn in net capital inflows in 2014. Trade flows meanwhile are being dragged down by weak export and import growth in large emerging markets such as China, as well as Russia and Brazil, which have been under considerable stress. Furthermore, inflation has fallen to historical lows. Headline inflation in advanced economies in 2015, at 0.3 percent, was the lowest since the financial crisis, and in emerging markets core inflation remains well below central bank targets. Why should we be concerned about these developments?
Chinese January exports slump, outlook worrying (Shanghai Daily)
Exports in dollar-denominated terms were more than 25% lower than in February 2015, worsening from the 11.2-percent decline in January and the sharpest drop since May 2009, according to figures from the General Administration of Customs. In yuan-denominated terms, exports slumped 20.6% year on year to 821.8 billion yuan ($126.3bn) in February, a steeper fall than 6.6% in January. The data is "ringing alarm bells on the state of the factory sector," said Tom Orlik, chief Asia economist at Bloomberg.
African Union pushes for more commitment from the UN General Assembly (AU)
Botswana: State minerals company takes off (Mmegi)
Uganda: Parliament seeks inquiry into sale of 130 public companies (Daily Monitor)
Kenyan banks lose Sh12.7bn in South Sudan’s currency crisis (Business Daily)
Holding company to be established to promote Egyptian products in Africa (Daily News)
Saving Egypt's public sector (Ahram)
Zimbabwe: Poultry industry contracts (NewsDay)
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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 350 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.
