News
tralac’s Daily News Selection
The selection: Thursday, 9 June 2016
Zambia: Harnessing the potential for trade and sustainable growth (UNCTAD)
This paper sets out Zambia’s existing trade policy framework and identifies areas of possible reform and options for maximizing the contribution of trade to inclusive growth and sustainable development. It contains a review of the macroeconomic and trade performance of the economy between 1995 and 2013. It discusses the current trade policies and institutions so as to identify the major opportunities and challenges inherent in the Zambian economy and outlines the options for enhancing Zambia’s trade and sustainable real growth in the economy. Following a review of Zambia’s trade performance and the current tariff structure, the framework recommends a strategic trade policy calibrated to support industrial sector interests. Tariff-setting is an essential component of improving Zambia’s trade performance but is not the sole determinant. Several recommendations emerge from the paper:
Launch of the SADC-PIDA Acceleration for the Beira and North-South Corridors (SADC)
The Minister noted that that the majority of member states in attendance were landlocked and required economic corridors to ensure imports and exports flowed at efficiently and least cost. The Ministers made the following key decisions: (i) Launched a programme to coordinate the accelerated preparation of infrastructure projects in the transport, energy, water and ICT sectors, trade and transport facilitation and establishment of corridor management institutions on the Beira Development Corridor and the North-South Corridor; (ii) Approved an interim institutional framework at the level of technical experts, senior officials and ministers to oversee and coordinate the programme; (iii) Approved preliminary priority list of projects on the Beira Development Corridor and the North-South Corridor, these projects include among others:
Zimbabwe: No plans for new border post with South Africa (Financial Gazette)
Government has no intention to construct a second border post between Zimbabwe and South Africa to help ease congestion at the Beitbridge Border Post. This was revealed by the deputy Home Affairs Minister, Obedingwa Mguni, in response to calls for a new border in the wake of the congestion at the country's busiest point of entry. "Where can that border post be situated, considering that our boundary with South Africa is not even more than 200km long; it is not just feasible to have it," he said. South Africa's ambassador to Zimbabwe, Mphakama Mbete recently told the Financial Gazette that it would be better to turn Beitbridge Border Post into a one-stop border post. Mbete admitted that the work to reconfigure Beitbridge had progressed at a snail's pace and it was important for significant progress to now be made in turning it into a one-stop border post. [Chinese contractor for Beitbridge-Chirundu highway banned by World Bank for corruption]
Reflecting on the Mozambican economy at SPEED’s dusk (SPEED)
I think it is therefore important to reflect on the impact SPEED has had, putting this in perspective with the situation that the country is facing. We are asking ourselves – Does Mozambique today need more of SPEED’s help or less? What kind of help exactly, and what should that help focus on, going forward? The first question we need to ask ourselves is: how effective has SPEED been in improving the government’s understanding of the importance of supporting private sector growth? The answer to this question is mixed. [The author: Carrie Davies]
Mozambique to cut public expenditure by 10% – Finmin (Club of Mozambique)
Addressing a two day extraordinary sitting of the Assembly on the public debt crisis, Finance Minister Adriano Maleiane said these austerity measures “seek to compensate for the fall in revenue resulting from the slowdown in the economy which is forcing the government to revise downwards its forecast for economic growth this year from the initial seven per cent target to between five and six per cent”. He insisted that the expenditure cuts “will not affect the social areas such as education and health or actions that seek to revive the economy through investments in agriculture and infrastructures”. Instead, the government was “working on a package of incentives to stimulate national production, particularly in agriculture, poultry, fish farming and industry”. [UK calls for international audit of Mozambique’s debt, Commentaries by Michel Cahen, Joseph Hanlon]
Malawi: MITC calls for bankable proposals ahead of Malawi-China business forum (Maravi Post)
Ahead of the first Malawi-China Business Forum slated for 21 June in Lilongwe, the Malawi Investment and Trade Centre (MITC) is calling for local firms and companies to quickly submit their bankable investment proposals for consideration by Chinese financiers in a joint business venture in the areas of agriculture, agro-processing and education sectors. The forum will host a delegation of over 100 Chinese investors from China’s Anhui Province mostly in agriculture and agro-processing, industry or manufacturing and education sectors.
Kenya's Budget Statement 2016/17: 'Consolidating gains for a prosperous Kenya'
The Export Processing Zones Scheme has continued to play a significant role in the growth of our economy. However, its role has been curtailed by trade restrictions and duty free imports from COMESA countries. In order to enhance the role of the Scheme in growing our economy and creating employment, I have stayed the application of import duty and propose to exempt from VAT made up garments and leather footwear procured from the Export Processing Zones to enable Kenyans to acquire new clothes and shoes at affordable prices. [Pitfalls likely to hinder smooth 2016/2017 budget implementation (The Standard)
Tanzania: Budget speech by Minister of Finance and Planning, Dr Philip Mpango
Following the directive by H.E. The President when inaugurating the Parliament, the Government intends to ensure that all privatized industries are operational. In the year 2016/17, the Government will finalise the evaluation of privatised industries and put in place strategies to revamp them. To begin with, the Government will start with the following industries: textiles, livestock products, agro-processing including rubber products, cashew nuts, tobacco, sugar cane, tea and paddy. In implementing these, the Government has budgeted funds in various votes in order to develop commercial farms; and to improve production of agricultural and livestock produce. Much as the Government intends to promote private sector investment, appropriate action will be taken against those who do not comply with the privatisation agreements.
The Government through our Embassies, High Commissions and Diaspora, will strengthen economic diplomacy in order to attract more investors from both developed and emerging economies including China, India, South Korea, South Africa and Brazil. [Positive reaction greets first Magufuli budget (Daily News), Govt records huge loss in privatised industries (IPPMedia), Local sources to finance bulk of ‘Magufuli’ budget (IPPMedia)]
Uganda: 2016/17 Budget speech
The strategy for Domestic Revenue Mobilization in the Financial Year 2016/17 is to expand the tax base by gradually formalizing the large informal sector, improving efficiency in tax collection and compliance. Government will aggressively mobilize additional sources of revenue by raising the revenue effort from the current ratio of 13% of GDP to 16% by Financial Year 2019/20. This will be done through implementing tax policy reforms that align the tax regime with best practice, both in the regional and global context, in order to generate necessary resources to finance the budget and also promote private sector investment. In the forthcoming year, Government will continue to simplify the tax regime, enhance compliance and eliminate tax avoidance and evasion. [Private sector decries fuel tax increase (Daily Monitor)]
IGAD Partners Forum pledges continued support and engagement (IGAD)
The Forum was updated on the IGAD Regional Strategy, the new IGAD Treaty and, as a highlight of the day, partners signed a Joint Programme and Financing Arrangement with IGAD in support of the IGAD Peace and Security Strategy and the third phase of IGAD Institutional Strengthening Action Programme (ISAP III). The signing of the JPA/JFA marks a major milestone as it provides a mechanism under the Joint Programme Arragement to engage with partners who cannot pool their funds in the framework of a JFA for various policy reasons. Four partners (Denmark, Finland, Germany and the Netherlands) signed the JPA/JFA during the IPF meeting and it is expected that more partners will sign the document in the coming few months.
Why technical discussions are needed for the Grand Ethiopian Renaissance Dam (The Conversation)
Perceptions of fairness and trust matter in such negotiations, and they need to be carefully cultivated before crises arrive. Policymakers in Egypt, Sudan and Ethiopia have not yet adequately explained to civil society in their countries the inter-related factors that will affect water availability throughout the basin. They must explain the effects of large infrastructure development, irrigation developments and climate change so that people will know the risks and rewards of cooperating with their neighbours. The international community can help in three ways. [The author, Dale Whittington, is attached to the University of North Carolina]
Why Zambia’s 6 cents is more significant than Dubai’s 3 cents (World Bank Blogs)
Last week Zambia set a new price record for utility-scale solar-generated energy in Africa with the support of the World Bank Group’s (WBG) Scaling Solar initiative. The auction for 100 MW (2x50 MW) resulted in a price as low as 6 cents/kWh. Zambia’s solar auction result followed a series of headline-making auctions in India, Mexico, Peru, and Dubai. There are a few reasons why Zambia’s outcome is more significant than Dubai’s. [The author: Gevord Sargsyan]
AfricaRice calls for vigilance over poor quality imported rice into African countries (Africa Rice Centre)
Recently newspapers from West African countries have reported that "sub-standard" quality rice is being imported, particularly from Asian countries since African markets are considered as "not too demanding" regarding quality aspects. Poor quality imported rice has been tracked in parts of West Africa. In Senegal, the National Police recently seized 22,690 tons corresponding to a value of six billion FCFA ($10.3m) of Indian broken rice, unsuitable for human consumption. AfricaRice wishes, therefore, to draw the attention of decision-makers in Africa, including the Council of Ministers of AfricaRice and all its development partners, to implications of such massive rice export within a short period to Africa for the three key drivers of Africa's rice sector indicated below.
Rwanda: Microfinance body, cross-border women traders' co-ops partner (New Times)
The numerous financing woes faced by cross-border women traders could soon be history following a partnership between the traders and the local microfinance institutions body. The partnership, which is being promoted by Pro-femme/Twese Hamwe and the Association of Microfinance Institutions in Rwanda, seeks to increase access to finance by small-scale women engaged in cross-border trade. [Women cross-border traders deserve respect (Zambia Daily Mail)]
Inequality, gender gaps and economic growth: comparative evidence for Sub-Saharan Africa (IMF)
Examining the relationship for countries at different stages of development, we find that this effect prevails mainly in lower income countries. In particular, per capita income growth in sub-Saharan Africa could be higher by as much as 0.9 percentage points on average if inequality was reduced to the levels observed in the fast growing emerging Asian countries.
Local content policies in mineral-rich countries: an overview (pdf, ECDPM)
Increasingly, resource-rich countries are searching for durable solutions to ‘disenclave’ their mineral sector, notably by developing and deepening economic linkages between the extractives sector and the rest of the economy. In this regard, an increasing number of countries introduced or reinforced local content policies (LCPs) with a view to stimulate the use of local factors of production, such as labour, capital, supplies of goods and services, to create value in the domestic economy and hence expand the industrial sector. But pathways to economic diversification have not been monolithic. [The author: Isabelle Ramdoo]
The Panama Canal expansion: changes beyond the waterway (Knowledge@Wharton)
With the opening of the long-awaited Panama Canal expansion project this June, all eyes are on the impact the $5.25 billion engineering marvel will have on maritime traffic across the vital international lanes that link the Pacific, the Atlantic and the Gulf of Mexico.
Angola, Mozambique agree fast-track three-month visas (Club of Mozambique)
Zimbabwe: Govt acts to address cash crisis (The Chronicle)
Gauteng City Region Economic Indaba: speeches by Premier David Makhura, Deputy President Cyril Ramaphosa
Zambia’s Gwen Mwaba appointed director of trade finance at African Exim Bank (Bernama)
Nigeria: Ease of doing business - for whom and by whom? (Premium Times)
tralac’s Daily News archive
Catch up on tralac’s daily news selections by following this link ».
SUBSCRIBE
To receive the link to tralac’s Daily News Selection via email, click here to subscribe.
This post has been sourced on behalf of tralac and disseminated to enhance trade policy knowledge and debate. It is distributed to over 350 recipients across Africa and internationally, serving in the AU, RECS, national government trade departments and research and development agencies. Your feedback is most welcome. Any suggestions that our recipients might have of items for inclusion are most welcome.
