News
tralac’s Daily News Selection
The selection: Monday, 21 March 2016
Starting today, in Abidjan, the Fourth Africa CEO Forum. For twitter updates follow @africaceoforum, #ACF2016
Starting tomorrow, in Abidjan, an AfDB workshop on the promotion of agropoles and agro-processing zones
Spatial growth strategies have been gaining increasing attention among policy makers and businesses across Africa to correct market and governance failures within and across industries. When implemented correctly, such an approach can lead to increased private sector investment directed to areas of excellence and higher productivity in select industries that, with proper linkages, will result in positive spill-overs to the broader economy and significant sustainable job growth. Spatial growth strategies include the establishment of growth poles, growth corridors, and special economic zones. While these approaches share certain characteristics, their relevance and impact depend on the specific country and regional context. The event will consist of two parts: i) Policy level: A ministerial panel discussion and ii) Operational level: Learning and sharing sessions among practitioners. The seminar is expected to achieve the following results: [Concept note] [Tanzania: Agro-sector change via roads, market access – ole Nasha]
New 2016 Conference of Ministers documentation: Report, recommendations of AU Sub-Committee of Directors General of Customs on 'Coordinated border management enhancing security and trade facilitation', Accra Declaration, from the Fourth Congress of African Economists
Southern Africa: illustrating the extent and severity of the 2015-16 drought (FewsNet)
This report presents a series of maps which illustrate the extent and the severity of the drought as well as its impacts on water availability, crop and rangeland conditions, food prices, and food security.
ECOWAS countries to strengthen migration data management (ILO)
The Lome workshop ( 15-18 March) was an opportunity for ILO to share the Recommendation 19 on migration statistics, databases on labour migration statistics in ASEAN, Arab States and African countries as well as data collection tools. A representative from the African Union Commission presented the data component of the joint labour migration programme, an AU/ILO/IOM/ECA initiative, adopted by the African Heads of State and Government in January 2015 on establishing coherent, accurate, and up-to-date data and statistics on migration in Africa.
Regional integration stalled in Central Africa (VOA)
The six nations that make up the Central African Economic and Monetary Community wrapped up their eighth annual 'CEMAC Days' event with a dismal assessment: Central Africa is failing its efforts to achieve regional integration. CEMAC consists of Cameroon, Chad, Equatorial Guinea, Republic of Congo, Gabon and the Central African Republic.The regional bloc was formed in 1994. Since then, CEMAC President Pierre Moussa said, little has been achieved to improve daily lives in the region. Besides CEMAC, the region is also part of a larger economic bloc, the Economic Community of Central African States. ECCAS shares many of the same objectives as CEMAC and also includes Angola, Burundi and Sao Tome and Principe. Gabonese analyst and integration expert Emmanuel Bimbo said there has been a misallocation and duplication of resources. [As elections near, Congo seeks to diversify its economy beyond oil (EurActiv)]
Kenya: Counties eye spot in regional trade bloc (Daily Nation)
A consortium of counties under the North Rift Economic Bloc caucus is fast-tracking plans to ensure that they claim a spot in the East African. The counties are said to strategising on how to kick-start export of cash crop products besides marketing their tourism sectors to the region.
Two perspectives on African integration policy issues: The trials, restrictions and costs of traveling in Africa if you’re an African (Quartz Africa), Why borderless economies are best for Africa — Tonye Cole, Sahara Group CEO (Premium Times)
Rwanda: Services sector grows 7% (East African Business Week)
Rwanda’s economy registered 6.9% growth in 2015 (RwF 5,837 billion up from RwF 5,395 billion in 2014) according to GDP numbers released by the National Institute of Statistics of Rwanda last week. The 2015 growth is slightly lower than the 7% registered in 2014. Announcing the growth figures, Yusuf Murangwa, the Director General of NISR said services and industry grew by 7% respectively while Agriculture registered 5% growth. He said services continue to lead in terms of shares to GDP with 47% compared to 33% and 14% for agriculture and industry respectively. [Download: GDP - National Accounts, 2015]
Zambia: IMF staff conclude visit (IMF)
The mission and the authorities reached a shared understanding of the challenges and risks associated with the current economic situation. The authorities stressed that, notwithstanding the upcoming general elections, they are committed to addressing the budgetary pressures, including moving to cost-reflective energy pricing, and scaling back on discretionary spending while safeguarding social protection programs. They indicated that strong near-term measures are being evaluated and that, at the IMF/World Bank Spring Meetings in mid-April, they would provide further guidance on the policy direction and reforms, and their plans for an IMF-supported program. [Zambia says budget deficit unsustainable, started IMF talks (Reuters)]
DRC orders mining and oil companies to pay taxes in US dollars (Reuters)
Mining and oil firms in Democratic Republic of Congo must pay taxes and import duties in US dollars from Saturday rather than in the national currency, the Central Bank of the Congo said. The decision is part of an attempt by authorities to increase reserves of foreign currency, weakened by a slump in global mining and oil prices that has hit government revenue. It reverses a policy established in 2014 to require companies to pay taxes in francs as part of a drive to wean the central African country off dollars.
Nigerian exports slumped 40% last year as oil prices plunged (Reuters)
The total value of Nigeria’s merchandise trade during the Fourth Quarter of 2015 stood at N3,653.1bn, 9.2% lower than the value of N4,021.4bn recorded in the preceding quarter. For the 2015 calendar year, the country’s total trade was recorded at N16,426.8bn, amounting to N7,251.6bn or 30.6% less than the total trade value recorded for 2014. This development arose largely due to sharp decline the value of exports; from N16,304.0bn in 2014 to N9,728.8bn in 2015, a decline of 40.3%. A decrease of N676.4bn or 9.2% in the total imports in 2015 helped to mitigate the declining trade balance, which stood at N3,030.8bn, N5,898.9bn less than the value in 2014. The crude oil component of total trade decreased by N4,945.9bn or 41.6% as against the level recorded in 2014 (Table 1). [Download Nigeria Foreign Trade Statistics: Fourth Quarter, 2015]
Nigeria: The ‘zero oil’ plan and an export revolution (The Nation)
We are not starry-eyed optimists, as moving to a Nigeria with Zero Oil will not be easy. But we should remember that we once had a country that was Zero Oil. The questions to ask are: What happened to our proud history in palm oil, cocoa, groundnuts, cotton? We were the toast of the world, where are these products now? We know in good days Nigeria typically makes over $70bn annually from crude oil exports, but the world is bigger than oil. Only three of the top 20 exporters in the world depend heavily on oil exports, and today even those three are fast diversifying. Indonesia makes over $18bn from only palm oil exports (we understand the Indonesians took their first palm seed from Nigeria over 50 years ago); Brazil makes $17bn from soybeans; Saudi Arabia makes over $30bn from petrochemicals, and Bangladesh makes $5bn from T-shirts. [The author, Olusegun Awolowo, is CEO, Nigeria Export Promotion Council]
Ghana: 'Evidence-based, stakeholder-informed approach to competition reforms' workshop
The second national orientation workshop on Competition Reforms in Key Markets for Enhancing Social and Economic Welfare in Developing countries (CREW Project) has taken place in Accra. The CREW Project aims to address the challenge of weak competition enforcement and to attract attention to competition reforms in the developing world, including Ghana. It is being implemented by the Consumer Unity and Trust SocietyInternational in four countries — Ghana, India, Philippines and Zambia — with support from the British Department for International Development and BMZ of Germany, and facilitated by the German Development Co-operation.
Tanzania: CTI calls for cut in number of regulatory bodies, levies (IPPMedia)
The Confederation of Tanzania Industries has requested the government to reduce the number of regulatory authorities and tax charges for local products in order to protect and boost the industrial sector. It claimed that often times agro products delay to reach the market place due to lack of approval from the Tanzania Bureau of Statistics, Tanzania Food and Drugs Authority, Tanzania Revenue Authority and ministries. CTI Chairman Leodegar Tenga espressed the concerns on Friday to the parliamentary committee on industry, trade and environment in Dar es Salaam. [TCRA's Traffic Monitoring System earns Treasury billions (IPPMedia)]
Ethiopia: an agrarian economy in transition (UNU-WIDER)
This study explores the impact of the high economic growth and slow but unmistakable structural change on a number of economic outcomes working through the labour market. The growth opportunities and challenges of the Ethiopian economy are also discussed.
Alex De Waal: 'Africa’s $700bn problem waiting to happen' (Foreign Policy/South Sudan News Agency)
Back in 2002, Meles Zenawi, then prime minister of Ethiopia, drafted a foreign policy and national security white paper for his country. Before finalizing it, he confided to me a “nightmare scenario” — not included in the published version — that could upend the balance of power in the Horn of Africa region. The scenario went like this: [Ethiopia's Renaissance Dam: what options are left for Egypt? (Ahram Online)]
Kenya: State steps up bid to add value to leather products (Daily Nation)
In an announcement in the Daily Nation on Friday, the Kenya Leather Development Council said it urgently requires a comprehensive analysis on the entire state of the leather subsector within the next five months ahead of the planned launch of a Sh17bn leather industrial park at Kinanie area in Machakos County. The park is currently under development. [A resurgent textile industry would benefit Kenya’s value-chain (Standard)]
China Development Forum: speech by Sri Mulyani Indrawati (World Bank)
This brings us to the policy question: What needs to be done to revamp trade as an engine of growth? We should avoid new protectionist trade measures and unwind trade-restrictive measures enacted since 2008. For example, the number of product lines subject to import restrictions by G-20 members has increased by half since 2007. Regional trade agreements should remain open and inclusive, and focused on trade creation rather than trade diversion. Reforms should include reducing barriers to merchandise trade including agriculture, services liberalization, and addressing “at-the borders” constraints, such as congestion at customs. Logistical obstacles to trade have risen and, in all developing country regions, are significantly greater than in high-income countries.
WTO: India-US fight over short-term service providers escalates (Livemint)
Nigeria: Stakeholders canvass for economic policy, expanded management team (ThisDay)
Egypt’s foreign exchange market and the need for a different economic policy (Ahram Online)
Namibia, DRC gets contrasting Fitch ratings (Southern Times)
Mozambican transport minister reviews cooperation projects in Japan (Club of Mozambique)
Tanzania: Chinese nationals face 35 yrs in prison for elephant tusk trade (IPPMedia)
India mulls private financing agencies for industrial corridors (The Hindu)
Cisco's John Chambers backs India move to take up H1-B issue at WTO (Livemint)
Angola establishes regime to report non-compliant taxpayers (EY Africa)
Taxation and revenue mobilization in developing countries: conference programme (UNU-WIDER)
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