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tralac’s Daily News Selection
The selection: Thursday, 19 May 2016
Launching next week: the African Economic Outlook 2016 (AfDB)
For the first time, the statistical annex includes data on gender, comparing indicators from the three partner organisations. The report will be launched on the first day of the 51st AfDB Annual Meetings, which will take place from 23-27 May, in Lusaka. With its special theme on 'Sustainable cities and structural transformation', the 2016 edition of the African Economic Outlook analyses the diversity and specific features of the continent’s urbanisation process, how it is profoundly transforming African societies, and what opportunities it offers for structural transformation and sustainable growth. [2016 Transform Africa to focus on smart cities]
Launched yesterday: the Commonwealth Trade Initiative
From yesterday’s first Italy-Africa Ministerial Conference: joint statement. On Italy-Africa trade facilitation: country presentations by Rwanda, DRC, Guinea Conakry
Approaching the CFTA services negotiations: which way towards delivery by 2017?
Insufficient private sector engagement may lead to non acceptance of the agreement by businesses, as has happened in the case of the Tripartite free trade area. So far, the AUC envisages the establishment of an African Business Council, which would serve as a platform for aggregating and articulating the views of the private sector. The ABC would collect, process, and present the views of the private and business operators from the continent. This issue of how the business sector is organised is of crucial importance, since it will influence the extent to which, and how effectively, the services negotiations will be able to address business challenges. [Viola Sawere is Regional Trade Policy Adviser at SADC Secretariat; David Ndolo is a PhD student in law at Coventry University] [Harnessing the potential of the services sector in Africa (Bridges Africa)]
Michael Chege: 'From gloom to boom: governance and economic development in Africa, in sequences' (World Bank Blogs)
For simplicity, in the upcoming World Development Report 2017, we have categorized a selected number of African countries in a four-cell matrix above with a vertical governance axis and a horizontal economic growth axis. This is a work in progress. But it is a useful indicator of the thought process required in making the intellectual transition from the cross generalizations on Africa, to one characterized not only by diversity but with real possibilities of countries moving to the ideal higher levels of law-based governance with shared prosperity in sequence and through multiple paths. Our goal should be to expand the numbers in the top right quadrant in iterative sequences, coming from several directions.
Namibia: Visa requirements for SA citizens negatively impact cross-border trade (New Era)
The Namibia Chamber of Commerce and Industry says local businesses are gravely concerned about the government’s decision to compel South African citizens to acquire business visas at the Namibian High Commission in Pretoria prior to travelling to Namibia for business activities. According to Tarah Shaanika, Chief Executive Officer of the NCCI, the new requirement, which is in force since March this year, has already proven to have significant negative impact on cross-border business activities between the two countries. “We strongly propose that South African citizens be allowed to get such visas at entry points, as is the case with Namibian citizens travelling to South Africa for business,” Shaanika concluded.
South Africa: Border Management Agency, migration policy updates (GCIS)
With regard to the Border Management Agency, following Cabinet's approval of the introduction of the draft Border Management Agency Bill into Parliament, the Department embarked on a consultation process with the National Economic Development and Labour Council in November 2015 to ensure maximum consensus, among all relevant constituencies, on the policy framework of the draft BMA Bill. This process was concluded earlier this month and we now expect that the draft Bill will be formally introduced into Parliament in June 2016. This marks a significant move in continued efforts to finalise processes to establish the BMA. In the current financial year, the BMA Project Management Office will be focusing on the development and implementation of an overall change management strategy in preparation of the establishment of the BMA in April 2017.
A final Draft of the Green Paper on Migration has been finalized, with a view to charting a new trajectory to replace the current international migration policy, which, we believe, does not enable South Africa to adequately embrace global opportunities while safeguarding our sovereignty and ensuring public safety and national security. Key policy recommendations in this regard include: [Extracted from speech by Home Affairs minister Malusi Gigaba]
IGAD, stakeholders meet over migration governance in the region (IGAD)
The 7th Meeting of Regional Consultative Process on Migration was launched [Wednesday] in Khartoum to consider recommendations from the Regional Migration Coordination Committee that ended on 17 May, after two days of successful deliberations restricted to IGAD member states. The two main recommendations that emanated from IGAD Member States during the 4th RMCC meeting are the strengthening of National Coordination Mechanisms and the inclusion of IGAD as an institution in the Khartoum Process. The Khartoum Process, launched in October 2014, is aimed at strengthening all efforts in order to combat smuggling and human trafficking by addressing the root causes of migration and irregular migration.
Namibia: Quarter One trade data (Namibia Statistics Agency)
During the first quarter of 2016, Namibia’s trade deficit stood at N$4.152bn, this represents a significant decline of 62% compared to a revised figure of the previous quarter in which the deficit was estimated to be N$10.9283bn, similarly, when compared to the same quarter a year ago the deficit fell by 30% from N$5.893bn. The deficit narrowed as export revenue grew stronger than the growth on import expenditure. The causes of these deficits are the importation by Namibia of high value manufactured commodities and machinery from partner countries while exporting primary goods of low value. The largest deficits were recorded with South Africa (N$9.343bn), India (N$1.024bn), Turkey (N$0.442bn), Zambia (N$0.387bn) and Chile (0.340bn), while the biggest trade surpluses were recorded with Switzerland (N$3.464bn), Norway (N$2.182bn), Botswana (N$1.081bn), Spain (N$0.461bn) and Canada (N$0.360bn). A substantial deficit was also recorded with the Export Processing Zone. [Namibia, De Beers sign new 10-year sales agreement]
Rwanda: Lawmakers task RDB to expand export base (New Times)
The question of sluggish exports growth for both traditional and non-traditional commodities took centre stage Tuesday as officials from Rwanda Development Board appeared before the parliamentary Standing Committee on Budget and State Patrimony to discuss the current Budget Execution and projections for the next financial year. A report presented by the RDB chief executive Francis Gatare to the legislators indicated a decline in export performance trends of minerals, which plunged from $226.3m in 2013 to $211m in 2014 and then $149m. Non-traditional exports also plummeted from $111.2m to $97.3m going by the matrix table of the last two years, which equally saw profits from informal exports dropping from $110.5m to $108.5m from 2014 to 2015.
Tanzania's MPs: Abolish VAT on transit cargo; improve ports, railways (IPPMedia)
According to Mpanda Rural legislator Moshi Kakoso (CCM), charging VAT on transit goods has created fear among importers from the land-locked countries that use the Dar es Salaam port. Finance minister Philip Mpango told the House that the volume of cargo headed for the Democratic Republic of Congo (DRC) from the port of Dar es Salaam decreased from 5,529 to 4,092 containers over the past two years, equivalent to a 26 per cent drop. The amount of cargo destined for Malawi dropped from 337 to 265 containers, and cargo on transit to Zambia also dropped from 6,859 to 4,448 containers during the same period, Dr Mpango said.
Rwanda won't opt out of Northern Corridor Standard Gauge Railway project - govt (New Times)
Claver Gatete, the Minister for Finance and Economic Planning: “We do not favour one route over the other because we see both the Northern and Central corridors as critical in cutting transport costs and facilitating trade to and from the ports of Mombasa and Dar-es-Salaam. We intend to have access to both routes by railway. Nothing has changed and that decision still holds.”
Related: Kenya to end railway at Kisumu after Rwanda exit (Daily Nation), Joshua Masinde: 'East Africa’s economic ‘coalition of the willing’ is falling apart' (Quartz), Jaindi Kisero: 'Let us rethink national interest strategy in regional integration' (Daily Nation)
TRA says on course to beat revenue collection target by a mile (IPPMedia)
The Tanzania Revenue Authority said yesterday it was confident of beating its revenue collection target of 12.3 trillion/- by the end of the current 2015/16 fiscal year. A total of 10.9trn/- has been collected so far, leaving a mere 1.4trn/- deficit to be plugged to reach the target by the end of June when the fiscal year ends, TRA commissioner general Alphayo Kidata revealed.
Power trading will drive Africa’s electricity landscape over the next five years (New Era)
Power trading agreements between countries that possess excess power generating capacity and those battling supply shortages will be a dominant theme in the electricity markets of south-central African nations in the next three to five years, says Cody Aduloju, Executive in Standard Bank’s Power and Infrastructure Division. Mozambique, which currently has the potential to produce more electricity than its economy requires at present, is likely to dominate the supply-side of this trading market, with Namibia, Zambia and Botswana expected to be the main purchasers in the region, after South Africa. The biggest challenge to these arrangements will be reliable and stable transmission networks to facilitate the seamless transfer of electricity between sellers and purchasers.
Fueling growth and financing risk: the benefits and risks of China’s development finance in the global energy sector (Boston University)
We estimate that China’s development banks have provided upwards of $128bn in energy finance to developing country governments between 2005 and 2014. Comparable data for the MDBs only exists for the period 2007 to 2014, and during that period China’s development banks provided $117 billion during the period or $16bn per year — roughly the same amount as the World Bank and the regional MDBs combined. China’s national development banks have truly ‘gone global.’ [The analysts: Kevin P. Gallagher, Rohini Kamal, Yongzhong Waang]
Mozambique and China sign agreements: 'Productive capacity and cooperation in hydrocarbons' (Club of Mozambique)
African CSO statement to the 2nd Africa Regional Forum on Sustainable Development (UNECA)
At the regional and UN levels, ECA and UNDESA should facilitate major groups and other stakeholders’ access to technical, capacity building and financing opportunities to enhance their work on the ground. They should also strengthen coordinated platforms and opportunities to consolidate efforts, and exchange good practices among major groups across themes including community of practice. At all levels, governments, AUC, AfDB, AFRSD, ECA and UNDESA should establish an ongoing engagement mechanism open to all civil society active participation, involvement and contribution to the implementation of Agenda 2063, SDG 2030 and their outcomes at various levels. [Integrating Agenda 2030 and 2063 for development will require re-engineering of development strategies]
World Employment and Social Outlook 2016: transforming jobs to end poverty (ILO)
The global deficit in quality jobs and deteriorating economic conditions in a number of regions threatens to undo decades of progress in poverty reduction, warns a new report by the International Labour Organization. Along with these challenges, the ILO’s World Employment and Social Outlook 2016: Transforming jobs to end poverty notes that relative poverty in developing countries is on the rise. Indeed, it finds that more than 36% of the emerging and developing world lives in poverty – on a daily income of less than $3.10 purchasing power parity (PPP). Noting that some $600bn a year – or nearly $10 trillion in total over 15 years – is needed to eradicate extreme – and moderate – poverty globally by 2030, the report concludes that the problem of persistent poverty cannot be solved by income transfers alone; more and better jobs are crucial to achieving this goal.
Statement from US Trade Representative Michael Froman on USITC report on TPP
Canada’s international assistance review consultations, discussion paper
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