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tralac’s Daily News Selection
The selection: Tuesday, 14 June 2016
Featured infographic, @eclac_un: ‘The Top 20 ports in Latin America and the Caribbean in 2015’
The ACP-EU Joint Parliamentary Assembly is meeting in Windhoek: updates, downloads
The keynote debate for the 31st session, taking place on Tuesday, 14 June, is entitled “the future of the ACP-EU partnership Post Cotonou” and will focus on the possibilities for a new and reinforced partnership after 2020. An in-depth discussion about how partners see this long-lasting relationship between the ACP and the EU to be embedded in the next decades is timely. The ACP Members will present their common position to be agreed at the ACP Head of States and Government summit in Port Moresby at the end of May, while the European Commission and the European External Action Service will provide an assessment study, including a scenario for the future, at the end of the year.
TICAD VI: Preparatory ministerial meeting (16-17 June, Banjul)
The Ministerial meeting will also consider the draft progress report 2013-2015 of the implementation of the TICAD V Yokohama Action Plan (2013-2017), and as well adopt the TICAD VI Summit schedule and agenda.
Ghana to hold inaugural ECOWAS Industrial Summit (GhanaWeb)
Ghana would hold the maiden the ECOWAS Industrial Summit, on 21 July, to bring together stakeholders to deliberate the Sub-region's industrial development to enhance the socio-economic wellbeing of citizens. The Summit, which originally was to be organised by the ECOWAS Commission Secretariat, would now be hosted by Ghana with the participation by other ECOWAS-member countries. A meeting of African Free Zones Association to deliberate the utlisation of free zones to improve Africa’s competitive and manufacturing proficiency, among other issues, would be held the day before the Summit. The Summit would immediately be followed by the Ghana-China Investment Forum, which would look at investment opportunities in Ghana for China, the next day.
India to provide Ghana with more lines of credit (Business Standard)
India is prepared to provide Ghana with more lines of credit to assist in the country's development, President Pranab Mukherjee, on a two-day visit here, said on Monday. Mukherjee said that economic cooperation between Ghana and India has grown steadily and added that bilateral trade should move from the present level of $3bn to $5bn by 2020. He said India is the second largest investor in Ghana with 700 registered companies.
Rwanda: Manufacturers call for new interventions to spur exports (New Times)
The government made a bold move above two years ago to support selected firms from priority sectors of the economy with a view of boosting their capacity so that they are able to improve output and hence increase exports. The move was part of concerted efforts geared at solving challenges affecting the industrial sector, and government signed 40 deals with selected exporters to this effect. However, there is a growing concern from stakeholders that despite the initiatives, the ambitious plan of increasing Rwanda’s exports to 28% per year, from about 20 per cent is not realistic, calling for change in strategy. The export growth targets is part of the country’s development blueprint the second Economic Development and Poverty Reduction Strategy (EDPRS II). This call is supported by Minister for Trade and Industry Francois Kanimba, who said it is critical for all stakeholders to change the way the country’s export promotion strategy has been managed.
Phyllis Wakiaga: 'Manufacturing’s big winners in Treasury’s Sh2.3trn budget' (Business Daily)
The Sh2.3 trillion budget had a number of key benefits for industry, especially the metal sub sector. Steel imports have led to the closure of plants and loss of jobs in the sector and the imposition of a specific duty rate of $200 per metric tonne in addition to the 25% ad valorem duty will ease the pressure on manufacturers. Further, the government sought to safeguard the sector by increasing duty on imported aluminium cans from 10% to 25% and to promote their manufacture locally; access to raw materials will be enhanced through a removal of duties on plates and sheets of aluminum alloys. The government also sought to ensure full implementation of the ‘Buy Kenya Build Kenya’ policy with, in part, the 40% local content participation in capital-intensive projects, including in infrastructure and energy development. [Ms Wakiaga is CEO of Kenya Association of Manufacturers]
Tanzania: Concern after export scheme change is halted (Daily News)
The Tanzania Exporters Association has expressed its disappointment on the government decision to indefinitely suspend making the Export Credit Guarantee Scheme an independent organ and detaching it from the Bank of Tanzania. The Tanexa Executive Director, Mr Peter Lanya exclusively told the ‘Daily News’ at a workshop that both the BoT and Tanexa had previously conducted studies in other SADC countries and seen the viability of making the department independent and had recommended this to the government.
Amelia Ann Kyambadde: 'Uganda’s access to the regional and global markets' (New Vision)
I have been accosted by some members of the business sector with questions like: 'How do we benefit from all those trade agreements you are negotiating for?' A question that has provoked me to write this article. Uganda is a signatory to a number of regional trade agreements that have secured market access for Uganda’s products and services. Such agreements include the East African Community (EAC) Common Market Protocol, Common Market for Eastern and Southern Africa (COMESA) Free Trade Agreement and the COMESA-EAC-SADC Tripartite Free Trade Area. It is one thing to negotiate market access and it is another to take advantage of it and be able to benefit. Any Ugandan with interest in exporting to the negotiated markets should take note of the following: [The author is Uganda's trade minister]
Trade, cooperation top Uhuru's talks with Angola president (The Star)
Uhuru and Jose considered easing the visa regime to ensure Kenyans have improved access to Angola’s markets. Angola's private sector will in return make the most of the opportunities that Kenya offers. At Uhuru's request, Jose said his country will look into allowing national carrier Kenyan Airways to increase scheduled direct passenger flights. Kenya also sought a review of the rules governing Angola's investor licenses and work permits. Uhuru requested that the wealthy Southwest African nation reconsider foreign exchange regulations which hamper business relations. The leaders agreed that the matter be dealt with in the context of a wider exchange of agreements and Memoranda of Understanding when the two leaders hold a summit.
Preferential trade arrangements and the pacification of Eastern Africa (IGC)
The authors show [inter alia] that:
The EAC customs union has been very successful in increasing bilateral trade among members, by 213% on average, much more than the Common Market for Eastern and Southern Africa, which led to an increase of 80%, or the Southern African Development Community, which led to an increase of 110%
An EAC common currency is estimated to have only small trade and welfare effects that may not justify the risks and costs associated with it
The estimated benefits from integration with COMESA and SADC are relatively small largely because the EAC already overlaps with both regional trade agreements, so the main value in the Tripartite Free Trade Area would lie in paving the way to a continental free trade area. [The analysts: Thierry Mayer, Mathias Thoenig]
Making global value chains work for development (World Bank)
Making Global Value Chains Work for Development tackles the big questions raised by the realities of 21st century globalization and offers policymakers a strategic framework, analytical tools, and policy options as guidance for functioning in an increasingly interconnected world. There are several ways policymakers can approach GVCs, depending on their specific goals, the book highlights:
The 105th International Labour Conference closed on 10 June: resolutions, downloads (ILO)
Global supply chains: The Committee on Decent work in Global Supply Chains held nine days of intense tripartite discussions to explore how global supply chains can effectively contribute to decent work and sustainable development. The Committee adopted by consensus a resolution and set of action-oriented conclusions. These give a strong mandate to the ILO to lead the global call for action to bridge governance gaps in sectoral, national, regional and international supply chains.
Agribusiness in Africa: CEOs weigh in (PwC)
The biggest opportunity for growth over the next year, according to Africa’s agribusiness CEOs, is the improved penetration of markets in which they already operate. The biggest barrier to growth? Access to technology. These are just some of the findings of PwC’s Africa Agribusiness Insights Survey 2016 (pdf). With respondents from 15 countries – including Nigeria, Tanzania, Kenya, Zambia, Ethiopia, South Africa, Botswana, Zimbabwe and Malawi – the publication provides insight on a range of issues, including risk management, cross-border expansion and technological innovation. While the majority of respondents (70.6%) had not invested in African countries other than their own, 58.8% of participating company bosses see investment in other African territories as an opportunity for expansion. Zambia, Botswana, Tanzania and South Africa are the top four countries in which they are planning to invest. [Africa’s food security depends on research, innovation – experts, Zimbabwe: Govt imports 100 000t maize]
Nigeria: Sultan wants ban on importation of rice through land borders lifted (ThisDay)
The Sultan of Sokoto, Alhaji Muhammad Sa’ad Abubakar III, on Monday called on the management of the Nigeria Customs Service to consider the possibility of lifting the ban on the importation of rice through the nation’s land borders. “There is no food in the country, so, there is the need for the borders to be reopened for rice importation through land borders”, he stressed. He commended the renewed efforts of the federal government to boost domestic production of rice and promised that the traditional institutions would continue to sensitise the people on the need to support the policies of the three tiers of government. [Buhari backs CBN flexible forex policy, says it’s down payment for success]
Ireland’s exports to Kenya increase to Sh10bn (Daily Nation)
The volume of trade between Kenya and Ireland has jumped by 40% to Sh10 billion, driven by imports of heavy port machines and alcoholic drinks. This is the biggest increase in percentage of imports to Kenya by any country recorded over the last two years. But trade was heavily tilted towards Ireland with the European Union member country benefiting from imports of machines to build the new container terminal at the Port of Mombasa.
South Africa: Current account gap widens to 5% in Q1 (Bloomberg)
The gap on the current account, the broadest measure of trade in goods and services, widened from a revised 4.6% in the fourth quarter of last year, the Reserve Bank said in its Quarterly Bulletin released on Tuesday in the capital, Pretoria. The median of 14 economist estimates compiled by Bloomberg was for a deficit of 4.1%. The persistent shortfall on the current account could undermine the rand, which has gained 1.4% against the dollar this year after losing 25% of its value in 2015.
African Union hopes to delimit inter-state borders by end of 2017 (MyJoy Online)
Statement by Director of Ghana's Immigration, Felix Yaw Sarpong, marking Africa Border Day, 7 June: 'The African Union has set for itself an ambitious target of having all inter-state borders delimited and demarcated by 2017. This year’s theme “African Year of Human Rights with a special focus on the rights of women” is quite instructive. With about eight armed conflicts on the continent, we are well aware that those who would suffer are mostly women and children. They are the ones most likely to cross borders to safety therefore border officials need to protect them from abuse and extend humanitarian support.'
Renewables, solar, and large size projects trending in new data on private participation in infrastructure (World Bank Blogs)
While commitments in Brazil, China and India slowed down, investments in other emerging economies surged to $99.9 billion, representing a 92 percent year-over-year increase. While again, much of this investment is in Turkey (with a record total investment of US$44.7 billion in 2015), eleven of these countries committed at least $1 billion in 2015. Furthermore, El Salvador, Georgia, Lithuania, Montenegro, Uganda, and Zambia were among those to re-emerge from a hiatus to close at least one PPP project in 2015.
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