News
tralac’s Daily News Selection
The selection: Tuesday, 24 May 2016
Featured tweet, by @rodrikdani: New paper by @tylercowen on the future of growth in developing economies is very good and I agree with much of it.
President Khama: update on SADC’s anti-poverty policies (GoB)
Turning now to the issue of poverty, I note with grave concern that according to SADC Regional Vulnerability Assessment and Analysis Synthesis Reports, 40% of all SADC citizens are currently living in abject poverty. It is for this reason that Poverty Eradication has become the overarching objective for the SADC Regional integration agenda. As you may recall, it was our recognition of the need to eradicate poverty that in 2008, in Mauritius, we decided to establish a Regional Poverty Observatory. This regional structure was created to oversee the implementation of the agreed poverty eradication strategies, while managing a region wide poverty information and data base.
Let us remain cognisant of our ongoing regional efforts to address the above challenges. In terms of poverty, these include the development of Regional Poverty Eradication Frame Work, the establishment of the Regional Poverty Observatory with its steering committees; the development and adoption of the Multi-dimensional Poverty Index as an alternative poverty measure for member states and stakeholders. In terms of food security, let us be mindful of the Food and Nutrition Strategy, as approved by the SADC Summit in 2013; and the Regional Agricultural Policy, which was endorsed by the SADC Council of Ministers in August 2014. I here note that the RAP Investment Plan is yet to be finalised. [Statement by President Khama at the SADC special seminar on food security and poverty eradication]
Botswana-Zambia: transport operators cry foul (Daily News)
Speaking at a Botswana-Zambia joint committee in Kasane, Botswana operators felt that as a result of such fees, operating in Zambia no longer looked viable and sustainable for their businesses. The meeting sought to discuss passenger and freight transportation affecting cross-border movement between the two countries. Representing Botswana's Truckers Association, Dr Comfort Mokgothu noted that doing business for them in Zambia was too expensive as they were required to pay too many taxes and levies, which he said are selective to which country one originates from. "For instance, a South African truck is required to pay US$110 in toll fees while a truck from Botswana pays $541 for a single trip," he said. In comparison, he said Zambian trucks only pay around P1630 when they operate in Botswana.
Botswana-Mozambique: regional infrastructure issues (GoB)
It is therefore, critical that we redouble our efforts in speeding up implementation of key projects such as the development of a deep-sea port and a railway line linking Botswana with Mozambique. Once completed, the development corridor will not only benefit the partner countries, but will also contribute to greater regional integration [Extract from speech by President Khama during state visit to Mozambique]
IGAD signs LAPSSET Corridor Development MoU (IGAD)
According to the signed MoU, IGAD and LCDA will work together in mobilising funds towards detailed engineering design studies of the LAPSSET Railway component of the Corridor (Lamu-Isiolo-Moyale-Addis Ababa/Isiolo-Nadapal-Juba, approx. 2,900 km). The design studies of the standard gauge railway will be spearheaded by IGAD Secretariat.
Why neighbours’ cold shoulder may wreck Kenya’s grand infrastructure dream (The Standard)
For years, whenever Kenya has coughed, its neighbours have caught a cold. But it now appears that these neighbours have hatched a plan to simply turn their backs to avoid the cold. From Dar es Salaam in Tanzania through Kigali in Rwanda, to Kampala in Uganda, and finally to Addis Ababa in Ethiopia, something new is brewing, and Kenya is losing. “We need to go back to the table and remove the fear of Ethiopia, Uganda and Tanzania in terms of our bid and the cost of our investment. There is a silent question mark on whether we have over priced our projects,” he said. [Kenya needs to rethink its regional business strategy]
Rwanda-Tanzania trade forum highlights: stronger bilateral ties critical for trade growth (New Times)
According to statistics, Tanzania was Rwanda’s third largest trading partner in the region last year, with total trade between the two countries amounting to $68m, down from $70.8m in 2014. This, however, reflects a decrease of about four per cent, which experts attribute partly to challenges businesses faced while trading with their Tanzanian counterparts. Dar es Salaam port recently overtook Mombasa as the main port for Rwanda, handling 70% of Rwanda shipments. Also, over 90% of Rwanda’s exports, apart from tea and coffee, go through the Port of Dar es Salaam. Therefore, the new development could prove a turning point for business to flourish between the two counties. Emmanuel Kakuyu, the Tanzania Trucks Owners Association chief executive officer, said the commitment by the two countries to strengthen trade ties will make Tanzania more attractive to new businesses. He added that the deal will make Dar es Salaam port more competitive, saying 95% of goods to Rwanda are ferried by Tanzanian trucks.
Industrialisation vital for Tanzania to realise independent economy (IPPMedia)
Speaking over the weekend in Dar es Salaam, during the handing over of the report from the Tanzanian participants in the seminar on counterpart connection of industry transfer for Tanzania, the Ambassador of the PRC in Tanzania, Dr Lu Youqing said that it has been proven that industrialisation is the only way to realise economic development of a nation. He urged Tanzanians officials in that meeting that with Chinese experience, Tanzania can realize its industrialisation. “We will transfer our industrialization experience and skills to Tanzania,” he promised.
DEGRP/SAIIA workshop essays: China-Africa - a maturing relationship?
IGAD: Regional women entrepreneurs associations platform to be established (Ethiopian Herald)
According to Engidaye after intensive negotiations between member states association for the last four years in Djibouti, Khartoum, Kampala and Nairobi they agreed to change their dreams into reality. She further said that the platform will have its own secretariat, head office and budget and for that the necessary preparation has been made. It also established its own working rules and regulation. She further said that the establishment of the platform helps them to create market connection and eliminate double taxation between the member countries. Currently in Ethiopia 35% of trade and business is carried out by women, many of them are engaged in export and import trading.
Three highlights from the AfDB's Annual Meetings:
The room was not short of informed ideas and opinions as debate raged. Although it was generally agreed that ICT investments across Africa are being hampered by unfriendly tax regimes, Ambassador Claver Gatete, Rwanda’s Minister of Finance and Economic Planning, who was following the debate from the audience, joined in to counter the charge. “Rwanda is an exception on this. We actually don’t collect a single penny on IT imports because it is part of our long-term strategy to promote the sector,” he said adding that it was incumbent upon governments to build enabling environments to harness the ICT revolution.
2nd Continental Business Network
About $92bn is required to finance public infrastructure projects in Africa annually, Barclays Bank Africa Head, Public Sector Affairs, Zienzi Musamirapamwe, said. Musamirapamwe said it was important for private sector involvement in the financing of both domestic and regional infrastructure for Africa to achieve its desired growth.
New analysis [The economics of reducing malnutrition in Sub-Saharan Africa] released Monday from the Global Panel on Agriculture and Food Systems for Nutrition shows increased investments to meet the World Health Assembly target of reducing stunting by 40% by 2025 could add $83bn in additional GDP growth in just 15 Sub-Saharan African countries. In Nigeria alone, this includes $29bn in national income, or a 17 to 1 benefit cost ratio for additional investments. A new Africa-specific investment framework by the World Bank and Results for Development showing the costs to achieve the WHA stunting, wasting, anemia and breastfeeding targets was also unveiled.
Moçambique: Tobacco industry analysis (SPEED)
The study identifies the provinces (with adequate climate and fertility) where tobacco is grown, the amount of land and quantities being farmed, the firms active (tobacco processing plants, cigarette manufactures), market structure, quantities produced and a profitability analysis based on production vs retial costs. Furthermore, the analysis outlines Government regulations including health standards, import tariffs, duties and value added taxes. At this point, this analysis fails to address the social cost(s) and prevalence of cigarette smoking.
Botswana: Country partnership framework (World Bank)
While export growth overall is positive, Botswana has come to rely even more on diamonds, which in 2013 accounted for almost 90% of goods exports and more than 80% of total exports, up from just 61% in the five years prior to the crisis. One factor contributing to this is the evolution of exchange rates. Between January 2013 and December 2014, the pula depreciated almost 17% against the US dollar (the trading currency for diamonds) while appreciating 10.5% against the South African Rand (the main market for non-minerals exports and the principal source of imports). Nonetheless, diamond exports comprise a significant share of domestic value added, accounting for almost 23% of total GDP.
Malawi urbanization review: leveraging urbanization for national growth and development (World Bank)
The GDP and employment patterns in the past 15 years (1998-2013) indicate that Malawi’s economy is undergoing a positive structural change. Sectoral patterns of employment demonstrates a clear indication of “positive structural change" - a gradual shift out of agriculture and the movement of labor from low to high productivity sectors. Employment in the service sectors grew rapidly at almost eight percent per year for 1998-2013, increasing by 17 percentage points. In comparison, employment in agriculture declined in absolute terms by 20 percentage points, despite rural population growth. However, structural transformation in Malawi is not driven by urbanization, as conventionally known, since most of the expansion of Malawi’s non-farm sector occurred in rural areas.
Ethiopia: Public expenditure review (World Bank)
As Ethiopia lays the foundation to become a middle income country, and the changing global environment implies declining external assistance, it is imperative that domestic taxation activity support this transition. The current tax-to-GDP ratio is low compared to peer countries, and the tax structure would benefit from increased contributions by direct tax sources. Therefore, there is an immediate need for advancing tax reforms and improved capacity and quality of tax administration. Broadening the tax bases, through review of exemptions, as well as review of tax rates might be venues to consider. Additional revenues will create the much-needed fiscal space to increase funding for operations and maintenance for service delivery, and support fiscal sustainability.
Rwanda hosts conference on digitalising African identity cards (New Times)
Delegates from 36 African and 29 non-African nations convene in Kigali, today, to exchange ideas and experiences related to digital identity as well as setting the working agenda and priorities for the year to come for development of identification systems in Africa. The event looks at what practicalities are required for authorities to successfully launch identity programmes, an agenda that was set in the inaugural meeting of the movement in Dar-es-Salaam, Tanzania, in June last year. [2016 Migration Governance Index (IOM)]
Angola starts exporting bananas again after 42 years (Macauhub)
IGAD-ICPALD workshop on regional grades and standards for live animals, meat, hides and skins
Kenya’s privatisation agency opposes bid to block sale of sugar millers (Business Daily)
The use of tax havens in the ownership of Kenyan petroleum rights (Oxfam)
China's May iron ore imports stay robust, majors squeeze rivals, including SA (Reuters)
Estimating the effects of the Trans-Pacific Partnership on Latin America and the Caribbean (IMF)
Will the US undermine the World Trade Organization? (Huffington Post)
Brazil's new top diplomat shifts focus from ideology to trade (Reuters)
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