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tralac’s Daily News Selection
The selection: Monday, 16 May 2016
Starting today: Mozambique president, Filipe Nyusi's state visit to China (Xinhua)
Industrial cooperation, notably in natural gas exploration and manufacturing, tops the agenda as Mozambican president Filipe Nyusi begins his first state visit to China, the Chinese ambassador to Mozambique says. Nyusi is slated to begin his six-day visit on Monday on a full-pack schedule that includes bilateral talks with Chinese leaders and separate visits to the export-oriented economic vibrant provinces of Jiangsu and Shandong. According to embassy estimates, there are about 80 mid-range and large Chinese enterprises registered in Mozambique, in sectors of transport infrastructure, energy, telecommunications, agriculture, retail, hospitality, and manufacturing. By the end of 2015, the stock of Chinese direct investment to Mozambique rose to $1.2bn, Chinese official figures show.
Today, in New York: UNGA informal interactive dialogue on commodity markets
Through this week: EAC workshop on the practice of cash and conditional cash transfers, the 2016 Africa Regional Forum on Sustainable Development
Featured blogs, by Dani Rodrik: 'Fairness and free trade' (Project Syndicate), Christopher Colford: 'Making the case for trade' (World Bank Blogs)
SADC: Development of a SADC resource mobilisation framework (alternative sources of funding SADC regional programmes)
The individual consultants will be required to undertake one of the following assignments leading into the development of a SADC Resource Mobilization Framework: expert on curbing illicit financial flows, expert on lottery, expert on philanthropy, expert on import and export tax levies, expert on insurance policies tax, expert on regional transport levy, expert on tourism levy. [Explore alternative funding sources, SADC MPs urged]
East Africa member states fail to reach consensus on common tax rates (The East African)
A three-day meeting - convened by the EAC’s Sectoral Council on Finance and Economic Affairs in Arusha, 5-7 May - to deliberate on the issue failed to agree on a policy framework to guide the process and instead sent the document to a consortium of experts. The draft EAC Domestic Taxes Policy Framework, which is under consideration, is critical for the harmonisation of VAT, income tax and excise duty. The Committee on Fiscal Affairs said the process of producing the domestic taxes harmonisation policy was taking too long and directed the EAC Secretariat to convene a meeting for the tax policy and tax administration subcommittee to look into the draft document and develop an EAC policy on tax harmonisation by August.
Communiqué of the 25th Anniversary of the African Capacity Building Foundation
Would Brexit be a bad break for SA’s exporters to the UK? (Business Day)
So, nothing for SA to worry about? Not quite. Such an autonomous interim regime could maintain the existing market access provided to exports from SA to the UK, but it would do nothing for the UK’s exports to SACU states. Just as the EPA and TDCA regimes would disappear from the customs computers in Britain, so the UK would no longer be eligible for preferential treatment in SACU automatically. A continuation of the status quo ante would require SACU to enact a similar regime. Would the five SACU states choose to do this autonomously and without negotiation? Probably not. This is a recipe for instability: [The analysts: Matthew Stern, Chris Stevens, Jane Kennan] [‘Brexit’ can open up opportunities for India: SBI report]
SACU study to assess the export market and investment opportunities in the EFTA (SACU)
The consultant should, inter alia, undertake an in-depth analysis of trade between SACU and the European Free Trade Association as well as trade by EFTA and the rest of the world. The aim of this analysis would be to identify SACU’s products/sectors with high export potential in the EFTA market and assess the import regulations that these products would face. This analysis should take into consideration the list of products and sectors that the Trade and Investment Promoting Agencies have identified as areas of high export priority for SACU under EFTA. The study should identify a market entry strategy for SACU products in the EFTA markets such as the most cost-efficient routes for transporting goods to EFTA and advice on the logistical and facilitation issues to be considered;
New FTA between MERCOSUR and SACU impacts Brazil export process (Thompson Reuters)
The FTA between MERCOSUR and the Southern Africa Customs Union is forecast to increase the competitiveness of Brazilian products in South African countries. Since the agreement focuses upon a mutual preferential duty rate, it is expected there will be an increase in the demand for imports and exports between those markets. Last year, Brazilian exports to South African countries amounted to $1.36bn, with a positive trade balance for Brazil around $720 M USD. With the agreement, according to the Ministry of Development, Industry and Foreign Trade, the annual average only for Brazilian exports to SACU, in five years could exceed $1.5bn. Specifically, the agreement will guarantee improved competitiveness to Brazil in various sectors such as automotive, textile, steelmaking, chemical and capital goods, as compared to today’s environment where the Brazilian exports is already performing, mostly for industrial goods.[Mercosur’s missed boat (The Economist)]
Germany approves EU and SADC partnership (Namibia Economist)
Plans underway to revamp TAZARA railway (The East African)
Government officials from Tanzania, China and Zambia met in Dar es Salaam last week to talk about the ailing infrastructure link that runs from Dar es Salaam to Kapiri-Mposhi in Zambia. The meeting recommended major renovations to the rusty narrow gauge railway line and approve of plans to link Tazara to Tanzania’s multibillion-dollar Bagamoyo port, as well as to Malawi, DR Congo, Rwanda and Burundi. “Rwanda, Burundi and Eastern DR Congo will be linked through the Seleka-Mpulungu section of Tazara in Zambia, where the construction study has already been completed and is only awaiting financing,” said Bruno Ching’andu, Tazara CEO. Malawi will be connected through the planned Chipata-Selenje railway link. However, the study for that link has not been completed.
Kazungula Bridge Project: IFB for the improvement,to climate resilient standards, of strategic roads in the Kafue River Basin (AfDB)
Zimbabwe: Govt to tighten screws on ‘goods-in-transit’ (The Herald)
Speaking during a Zanu-PF extraordinary provincial coordination committee meeting at Mutare Polytechnic College yesterday, Finance and Economic Development Minister Patrick Chinamasa said: “We are continuously losing out money to bring cheap imports into the country. We are using a precious currency, which is the United States dollar. Its firming against regional currencies has brought a lot of challenges to us. Zimbabwe is now the most expensive country in terms of production. We are unable to export and every country now wants to export to us. This is resulting in the available money being mopped out of the country. All importations of cheap goods should stop. We have realised that some trucks are making false declarations at our entry points. They lie that they have goods in transit to neighbouring countries, yet the goods will be destined for the local market. We will soon introduce tracking devices to monitor the truck movements. Imports of agricultural produce were banned, but you still find them flooding our local markets.”
Tanzania: Govt to accelerate pace of formalising cross-border trade (Daily News)
The government has promised to work on findings and recommendations given by private sector leaders to help speed up the necessary transformation to formalise informal cross border trade. This was said by the Permanent Secretary in the Ministry of Trade, Investment and Industry, Prof Adolph Mkenda, during a dialogue on ‘Challenges in Expanding Intra-Regional Trade and Investment Flows in the EAC Common Market held in Dar es Salaam over the weekend. The seminar was organised by the Tanzania Private Sector Foundation and funded by Trade Mark East Africa. The objective was to raise awareness on the level of informal cross border trade as a major component of regional trade flows and promote its rapid formalisation and growth as a tool for strengthening the common market. The TMEA Country Director, Dr Josephat Kweka, said his organisation is committed to support growth of trade in the region. [May 20: Inaugural Rwanda-Tanzania trade forum]
Tanzania: How govt's Eurobond plan could trigger new debt crisis (IPPmedia)
Kenya: Sugar mills post highest output ever (Daily Nation)
Kenya’s sugar industry registered a record production last year, with factory output rising by 6% compared to 2014. Data from the Kenya Bureau of Statistics shows that production hit 632,000 tonnes from 592,000 tonnes the previous year, making it the highest production in Kenya’s sugar history. At the same time, sugar imports grew by 29% in the same period as high demand for industrial sweeteners pushed up the volumes of the product.
Fuelling Djibouti’s future: an interview with its Minister of Energy (African Business Review)
The LNG project is the largest joint energy infrastructure project between the Republic of Djibouti and Ethiopia. This project will increase energy security for Djibouti, Ethiopia and our Chinese partners, who are providing funding; alleviate poverty in our country, as well as aid economic development in the region. Djibouti is committed to regional integration among the countries of the sub-region and is creating conditions to further strengthen economic ties with Ethiopia. In accordance with the COMESA’s vision, we are looking to achieve economic prosperity through regional integration. Djibouti has a special bond with Ethiopia and this new project will further cement these ties. The two countries are making progressive steps to make the Ethiopia-Djibouti belt the main logistics hub for East Africa; working to enhance cooperation in the energy sector; as well as setting an example for other countries in the region in terms of advancing the regional integration policy.
Africa Solidarity Trust Fund to meet in Swakopmund (Namibia Economist)
The FAO has announced that it will be holding the 3rd regional technical committee meeting of the Africa Solidarity Trust Fund from 30-31 May in Swakopmund. The project aims to reduce the incidences and occurrence of food contamination, animal and plant pests and diseases and their impact on the productivity of food crops, livestock, fisheries and forest resources. A secondary goal is to enhance safe intra-regional trade to contribute to improved food and nutritional security in the SADC region. Currently the project covers eight countries: Angola, Botswana, Madagascar, Mozambique, Namibia, Zambia, Zimbabwe, South Africa.
Southern African countries join hands in addressing smuggling of migrants (Xinhua)
A two-day meeting to this effect was held in Johannesburg on 11-12 May, with the participation of officials representing the immigration authorities, police, prosecutors and ministries of justice in the 11 SADC countries, said Maemo Machethe of the SADC Secretariat. The workshop, the first of this kind, was organized by SADC Secretariat and the UN Office on Drugs and Crime to discuss the smuggling of migrant's trends and patterns in the Region, and share ideas of possible regional response to this challenge.
Jaitley: Mauritius tax treaty revision not to hit FDI (The Hindu)
Investors must pay taxes on money they earn in India and a “tax-incentivised route” is no longer needed to attract foreign investments to a “strong enough” Indian economy, Finance Minister Arun Jaitley said today. He said there was no “serious apprehension” of investors shifting base to other tax havens and he sees no depletion in FDI flows due to re-drawing of decades-old tax treaty with Mauritius — the biggest source of foreign investments into India.
Brazil, China roles in African farming explained (SciDev)
A special issue of World Development, out this month, examines the real roles that China and Brazil are playing in African agriculture, moving beyond what the authors consider as “simplistic narratives of South-South collaboration or neo-imperial expansion”. Eight papers culled from an input of 20 research collaborators detail how Brazil and China are impacting the African economy. The work, organised via the Future Agricultures Consortium, was supported with roughly US$ 934,000 in UK Economic and Social Research Council funding. The project set out to explore what is actually going on in Ethiopia, Ghana, Mozambique and Zimbabwe, where Brazil and China have made investments, says Ian Scoones, fellow at the Institute of Development Studies, University of Sussex, the UK, and editor of the issue.
A new DAC in a changing world: terms of reference for a High Level Panel (OECD)
Mozambique to host Regional Maritime Surveillance Centre headquarters (Club of Mozambique)
Ground-breaking illegal fishing accord soon to enter into force (FAO)
Tanzania: Why mining firm Acacia is disappointed with tax evasion allegations (Daily News)
Malawi: Diversification, climate risk and vulnerability to poverty in rural Malawi (AfDB)
Namibia 2016 Country Profile launched (UNECA)
Amitendu Palit: 'Can India negotiate a new trade strategy?' (East Asia Forum)
'India needs to deepen pool of international trade lawyers to fight protectionism' (The Hindu)
India unveils intellectual property rights policy (Business Standard)
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