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tralac’s Daily News Selection
The selection: Monday, 9 May 2016
Launching, this week at WEF Africa: the MoveAfrica Initiative (Nepad)
The MoveAfrica initiative aims to address the transformation of the trans-boundary transport and logistics sector in Africa; it will seek to drive down transport costs and increase logistics efficiency for Fast Moving Consumer Goods operators and manufacturers operating in Africa, and thus complement the work stream of the Continental Business Network. MoveAfrica fits squarely within both the Presidential Infrastructure Champions Initiative transport project objectives (specifically the Trans-African Highways Corridors) and the private sector-led CBN initiative. MoveAfrica is therefore uniquely positioned to become the transport and logistics pillar of the CBN. MoveAfrica will also be aligned to the Action Plan for BIAT, as endorsed by the AU Summit, the implementation of whose programmes and activities is aimed at addressing the key constraints and challenges of intra-African trade and at significantly enhancing the size and benefits of the trade for the attainment of sustainable economic growth and development. [Download: concept note]
African growth story is still on the move (Business Day)
Undoubtedly, policy makers will need to grapple with significant challenges ahead. As the price of oil and other commodities has fallen, Africa’s finances have deteriorated: the continent ran a weighted average budget deficit of more than 6.9% of GDP last year, from only 3.3% of GDP five years earlier. In 2010, Africa was running a small current account surplus of 0.4% of GDP; by last year, that had turned into a deficit of 6.7%. Several countries are in talks for financial assistance, including Angola with the IMF and Nigeria with the Chinese government. This mixed picture means that companies and investors assessing Africa’s potential need to be specific about the growth and stability of individual countries. We measured three aspects of stability: macroeconomic stability, economic diversification, and political and social stability. Three distinct groups of countries emerges from this. [The authors, Dominic Barton and Acha Leke, are McKinsey analysts]
Strong dollar forces firms to exit Africa operations (Daily Nation)
The impact of depreciating currencies against the dollar and the rising cost of lending in the United States was felt in Africa last year as equity firms cashed out of most companies. According to a report by Ernst & Young and the African Private Equity and Venture Capital Association, PE firms sold investments in 44 companies in 2015, compared to 39 in the two previous years. Kenya is among the four countries accounting for over two-thirds of PE exits over the last two years. The report shows that in the period, 39% of the ship-outs have been from South Africa, 11% from Egypt, 10% for both Nigeria and Kenya and 30% from other countries on the continent.
The Zambezi Protocol: African mining’s downward spiral can be reversed (Daily Maverick)
Solving the current crisis in the African mining sector requires moving from the current series of short-term tactical actions to a more cohesive, inclusive and strategic approach. The intent must be to exit the current backward looking, destructive, downward spiral in which the industry is currently locked and shift to a positive, constructive cycle which offers a win-win deal for all. The Zambezi Protocol outlines a strategy to achieve this. For this to occur, all parties need to recognise the inevitable outcomes of the current cycle – the gradual deflation and downsizing of the industry – and the losers: current and future workers, governments, populations, and the mining companies themselves. Such a strategy will need to build on a number of existing initiatives, but do so with much greater cohesion, commitment and urgency. [The authors: Greg Mills, Dickie Davis] [The Zambezi Protocol (Brenthurst Foundation, Olusegun Obasanjo: The sun has not set on oil and mining industries in Africa (Business Day)]
Bank of England collaborating with CMI to build capacity of regional banks (COMESA)
The COMESA Monetary Institute is collaborating with the Centre for Central Banking Studies of the Bank of England to train staff from Central Banks in COMESA Member States. The latest training programme was on Advanced Training on Macroeconomic Modeling and Forecasting that was conducted 25-29 April, 2016 in Nairobi. Participants were drawn from 12 Central Banks of COMESA Member States: Burundi, DRC, Djibouti, Egypt, Ethiopia, Kenya, Madagascar, Sudan, Swaziland, Uganda, Zambia, Zimbabwe.
Assorted AU/AUC/REC pointers: 4th Retreat of the AU Executive Council: update (AU), African ministers chart ways to tap into available natural resources (New Times), An interview with SADC's candidate for AU Commission chair (Mmegi), Abdul Mohammed: 'The choice for the next African Union chairperson is too important to get wrong' (African Arguments), A profile of Liberat Mfumukeko, new EAC Secretary General (The Citizen), Africa Information Super Highway project: update (Xinhua)
SADC uni-visa under threat: Mzembi (The Independent)
Zimbabwe has been supporting a SADC uni-visa. It launched a Kavango-Zambezi Transfrontier Conservation Area uni-visa with Zambia in 2014 as the first phase of a four-staged process expected to eventually result in the introduction of the regional visa. Securocrats in the region were beginning to warm up to the idea, but recent threats changed their attitude, Mzembi told businessdigest last week. “As a result, we risk losing the open skies open boarders regime currently being pushed for by the secretary-general of the United Nations World Tourism Organisation,” Mzembi said.
Related African migration/movement policy postings: AU rolls out continental passport (The Herald), Re-conceptualizing borders: a space for exchange instead of barriers (IOM), Bulletin from the 2nd intra-regional Forum of Migration (IOM)
SA should become region’s oil and gas services sector hub, Davies says (Business Day)
The Department of Trade and Industry is to launch a dedicated gas industrialisation unit next week to drive the programme in collaboration with other government departments and industry stakeholders. An action plan for the unit has already been developed by a working group consisting of departmental officials, industry experts and representatives of Sasol, working closely with the Department of Energy. The minister noted that the political complexities of the region would require very careful policy development, planning and coordination to unlock the full potential of a regional gas economy. The lack of developed transportation corridors and gas utilisation infrastructure in the region would also be a constraint.
Mozambique: assessment of the status of implementation of the WTO SPS agreement (SPEED)
This desk study indicates that while much progress has been made in meeting its obligations as regards the WTO SPS Agreement, more work needs to be done to deepen compliance with the requirements of the SPS Agreement, particularly with regard to the Control, Inspection and Approval procedures associated with clearing imports of agricultural products. There is a need for greater transparency so that Mozambique's private sector and, in particular, small holder farmers can access information about export and import requirements and the fees charged for services such as laboratory testing, inspection and the waiting times for the results of such inspections is readily available in all provinces so that the sector operates in an environment that is both clear and predictable. [Download] [Related: East Africa: Standards harmonisation and conformity testing programme case studies, documentation (TMEA), Nigeria: Influx of fake goods worries TUC (Daily Trust)]
Botswana: Restrictions may hamper FDI growth – Jefferis (Mmegi)
The recent restriction of foreign participation in the Botswana Telecommunications Corporation Limited initial public offering is likely to hamper the growth of foreign direct investment in the country, a prominent economist has said. Managing Director of Econsult Botswana, Keith Jefferis noted in an economic review for the first quarter of 2016 that the way in which the privatisation of BTCL was conducted was in conflict with the official privatisation policy.
Zimra chief Pasi, 5 bigwigs suspended (The Herald)
The Zimbabwe Revenue Authority board has suspended its Commissioner-General Mr Gershem Pasi and five other senior executive managers after questions were raised over the importation of vehicles. This comes amid reports that Zimra was losing millions of dollars to dealers who processed counterfeit undervalued import documents to smuggle vehicles and other products into the country. Comm-Gen Pasi and the five executive managers were sent on paid leave with immediate effect.
Zimbabwe seeks energy framework with SA (The Herald)
Government is seeking an official framework with South Africa to structure energy deals, secretary for Energy and Power Development Partson Mbiriri has said. An agreement in principle was reached between Energy and Power Development Minister Samuel Undenge and his South Africa counterpart Tina Joemat-Pettersson last month although no timelines have been indicated yet on when the pact should be in place.
Energy sector updates: Grand Inga hydropower project (Bloomberg), Chinese firm to improve electricity distribution in DR Congo (ecns), Fashola unveils FG’s Road Map for solving Nigeria’s power crises (Nigeria Electricity)
Uganda now imports cotton (Daily Monitor)
Southern Range Textiles Limited, the company which bought Nyanza Textile Industries Limited, has said it has resorted to importing cotton from Tanzania because Uganda no longer produces the quantities it requires. Addressing journalists during the installation of new machines at the factory last week, Mr William Okello, the logistics manager, said the national cotton production which originally stood at 100,000 bales per annum, has now dropped to 80,000 bales and yet the demand for cotton has short up to 150,000 bales per year.
Gabon: Joint 2016-2020 country strategy paper and country portfolio performance review (AfDB)
Regional integration: Gabon is a member of key economic cooperation organizations such as ECCAS, CEMAC, OHADA, NEPAD and WTO, and a signatory to many bilateral trade agreements concluded with major global and regional economies. However, the political will to foster regional integration is yet to be concretized. The establishment of a free trade area for goods, services, persons and capital is still facing major challenges. The FTA within ECCAS, which was established in 2004, is not yet operational. Similarly, although the free movement of persons within the six CEMAC member countries came into force in May 2015, it is ineffective. Trade between Gabon and other CEMAC member countries is limited to the import of foodstuffs from Cameroon. The deficit in transport infrastructure with border countries, as well as the persistence of non-tariff barriers, limits trade.
Midterm review of the Istanbul Programme of Action: lessons from the UNCTAD 2011–2015 implementation activities, and the way forward (UNCTAD)
Despite the work and actions that have contributed to the fulfilment of the Programme’s objectives, it is clear that these objectives are at risk of not being met. Only nine LDCs have had gross domestic product growth rates greater than 7 per cent per year, and only 14 currently meet the graduation criteria. LDCs, as a group, also lagged behind other developing countries in achieving most of the Millennium Development Goals. This report aims to assist the high-level midterm review of progress in implementing the Istanbul Programme of Action, to be conducted in Antalya, Turkey, 27-29 May.
A proposed G20 initiative for the International Trade and Investment Regimes on Sustainable Development and Climate Change (E15 Initiative)
This paper offers an array of ideas on how to weave the concept of sustainability into the fabric of international cooperation on trade, investment, and development – including the institutions of global economic governance. In advancing this agenda, the G20 has an opportunity to address some of the tensions that are inherent in the concept of sustainable development and to provide a framework for operationalising the world community’s commitment to a sustainable future. [The author: Daniel Esty]
Impacts of the 2015/16 El Niño phenomenon (ECOSOC Special Meeting)
“We must remember that El Niño is not a one-off event but recurring global phenomena that we must address for future generations and to achieve the Sustainable Development Goals (SDGs),” said ECOSOC President Oh Joon at the opening of a special meeting on Impacts of the 2015/16 El Niño phenomenon: Reducing risks and capturing opportunities at UN Headquarters in New York. To reduce the impacts of El Niño, it is necessary to translate seasonal forecasts and risk data into risk-informed decision-making and actionable guidance so that different development sectors can take proactive measures, Mr Robert Glasser, Special Representative of the Secretary-General for Disaster Risk Reduction, said. [The documentation] [At climate summit in Washington, UN officials call to take action ‘to the next level’]
Confronting drought in Africa’s drylands: opportunities for enhancing resilience (World Bank)
This book focuses on the medium-term prospects for increasing the resilience to drought and other shocks of people living in dryland areas of East and West Africa. Over the longer run, structural transformation of the economy may generate opportunities for new livelihood activities that are less vulnerable to the impacts of droughts and other shocks. In the short to medium term, however, the key policy question concerns the extent to which current livelihoods can be made more resilient. In that context, this book examines two main areas of intervention, which are considered complementary: improving current livelihood activities; and strengthening social protection programs including safety nets. [Pastoralism development in the Sahel: a road to stability? (World Bank)]
Charting an action plan for a Digital Mauritius (GoM)
Nigeria to host second ECOWAS fertiliser forum, 18-20 May (GhanaWeb)
Uganda: State planners want conducive environment for informal sector (Daily Monitor)
Dubai’s non-oil trade with Africa hit $30bn in 2015 (Financial Watch)
Kenya eyes 20% increase in tourists from South Africa this year (Shanghai Daily)
Rwanda to improve milk value chain (The Exchange)
Tanzania: Privatised industries in the list of government’s little black book (The Citizen)
China's April exports, imports decline more than expected (Livemint)
Policy options and low international oil prices: an assessment for Commonwealth countries (Commonwealth Secretariat Discussion Paper)
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