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tralac’s Daily News Selection
The selection: Thursday, 23 June 2016
Two new UNU-WIDER reports on mining, industrialisation and regional integration in Southern Africa:
Mining-related national systems of innovation in southern Africa: national trajectories and regional integration
This research aims to explore the extent of technological upgrading and knowledge intensification around the mineral sectors, and in particular the role of South Africa in supporting these processes. These processes are analysed within the national system of innovation (NSI) literature, which emphasizes the systemic and dynamic components of domestic innovation ecosystems. South Africa and Botswana, in different ways, have built or are trying to build technological competencies around mining. In Zambia and Zimbabwe, such upgrading trajectories seem to be weak, and have particularly been eroded by a decline in public investment in the 1990s in Zambia, and the 2000s economic crisis in Zimbabwe. Yet, looking at these NSIs in isolation risks missing important dynamics related to skills development and competence building happening across borders. The latter present challenges for technological efforts taking place within countries, but also opportunities to tap into. These issues are explored in this paper (pdf) through desktop research, interview data, and the insights gained from fieldwork in Botswana, South Africa, Zambia, and Zimbabwe.
Can mining promote industrialization? A comparative analysis of policy frameworks in three Southern African countries
Botswana, Zambia, and Zimbabwe have well-established mineral sectors. In the past or present, these countries designed a variety of linkage development strategies and established training and research institutes related to mining. Apart from these shared features, the research (pdf) uncovered important cross-country variations in terms of (i) breadth and depth of technological complexity of existing industrial sectors, (ii) opportunities created by specific mineral commodities, (iii) ambition and scope of industrial and linkage development strategies, and (iv institutional capabilities to ensure enforcement and coherence with other policies. These factors have resulted in different outcomes in terms of local upgrading trajectories and institutional coherence. [The analysts: Judith Fessehaie, Zavareh Rustomjee, Lauralyn Kaziboni]
SACU Council of Ministers: statement
The Ministers reaffirmed their commitment to SACU’s Vision and the importance of the Customs Union to their economies. The Ministers also agreed to continue engagement on the SACU Agenda, taking into account prevailing regional and global economic developments, with a view to seize opportunities and strengthen integration. The 2002 SACU Agreement will continue to serve as a basis towards deepening integration in the Customs Union, and to provide the impetus for the economic development of its Member States. Ministers agreed to explore elements of the (work programme/agreement) that may have led to limited progress. The Ministers also agreed on a set of principles which would guide further engagement on the SACU Agenda, progress of which will be considered by the Summit of Heads of State and Government in the near future.
Zimbabwe: Cut red tape for border folk: VP Mphoko (The Herald)
People living near the country’s borders should enjoy special privileges, such as free movement and the creation of free trade areas for products and services, Vice President Phelekezela Mphoko has said. “We agreed in Cabinet that those people living near borders should enjoy benefits that arise from their proximity to border lying areas. This include here in Mukumbura, Beitbridge, Nyamapanda, Kanyemba and many others. They should be allowed even to move without passports when temporarily visiting nearby countries,” said VP Mphoko. He was responding to complaints that had been raised by Zanu-PF provincial chairperson for Mashonaland Central province, Cde Dickson Mafios, who said Government officials at border posts were too rigid when enforcing policies as they did not make a distinction between those people who lived near the country’s borders and ordinary travellers. [Military to secure porous Kenya-Ethiopia border and protect oil (The Standard)]
The effects of mega-regional free trade agreements on Africa (GED)
Our results show that for the TTIP agreement these two effects roughly seem to equal each other out with regards to Africa. In most countries the positive income effect slightly surpasses negative trade diversion effects leading to a small positive effect on overall income in the most likely scenario of a deep TTIP agreement. If direct and indirect spillovers are taken into account these positive effects can reach up to three to 5% positive income change for small trading economies like Benin or Togo. To foster such spillover effects the EU and the US will have to strive for a most inclusive version of their planned agreement. [Download the study (pdf)] [Roberto Azevêdo: 'Global trade policy – what’s next?' (WTO)
AfDB calls for new approaches to boost trade and create jobs (AfDB)
The African Development Bank has called for stronger ties between Africa and European countries in a bid to boost trade between the two regions. Stefan Nalletamby, the Bank’s Acting Vice-President for Infrastructure, Private Sector and Regional Integration, highlighted the importance of such a relationship, noting that it would result in more equitable benefits. Nalletamby was speaking during the European Development Days held on 15-16 June in Brussels. Participating in a panel on Development and Trade Links and the Agenda 2030, Nalletamby emphasised the need to employ a different strategy in order to realise maximum profits from the EU/Africa relationship. “We need to rethink the way we do business. We must have a comprehensive approach which combines hard and soft infrastructure,” he said, pointing out the importance of enhancing intra-African trade.
The Brexit: what implications for Africa? (Brookings)
The Brexit could lead to a retrenchment from outwardness with possible negative implications on the UK’s development initiatives. At a time when the process for IDA18 replenishment is underway, the Brexit may not be good news for aid recipients. Let’s have a closer look at the impact of the Brexit on bilateral development assistance. [The analysts: Mariama Sow, Amadou Sy]
UK referendum vote casts shadow on EA economies (New Times)
‘Read new policy on EU-China, including potential for co-operation in Africa on development and security’ (@MarcusCornaro)
Uganda: diversification and growth in the era of oil and volatility (World Bank)
The new Country Economic Memorandum, jointly prepared by the World Bank Group and Government of Uganda shows that proceeds from oil could accelerate growth and reduce poverty if it is ploughed in to agriculture, infrastructure, and human capital development to drive growth and create jobs. Titled, Economic diversification and growth in an era of oil and volatility, the CEM discusses the prospects of oil and mineral production in Uganda, and draws on global experiences of oil producing countries in Africa and elsewhere to guide the country in making the right policy and fiscal choices so as to benefit fully from the oil and mineral windfall. [Blog: Christina Malmberg Calvo]
Tanzania/Rwanda: Bilateral ties, DITF on Kagame Dar itinerary (Daily News)
Rwandan President Paul Kagame is expected in Dar es Salaam on 1 July to begin a state visit to Tanzania, during which he will open the 40th Dar es Salaam International Trade Fair and hold talks aimed at strengthening bilateral ties between the two countries. During the tour, Mr Kagame and his host are expected to sign a MoU on the areas of cooperation [which include aviation, Central Corridor] that were finalised by a joint committee of experts from both countries. [AfDB to finance Uganda-Rwanda transport projects: Busega-Mpigi, Kagitumba-Kayonza-Rusumo roads]
Tanzania: New World Bank funding to connect 2.5 mil rural households to power (IPPMedia)
The Tanzania Rural Electrification Expansion Program was approved yesterday by the World Bank’s board of executive directors and is aimed at building on recent achievements of expanding nationwide access to electricity to 36% in 2014. In addition, the program will scale up the supply of renewable energy in rural areas while strengthening sector institutional capacity. The financing is also expected to benefit 25,000 education facilities, 25,000 health facilities, and 150,000 local businesses. [SAGCOT supports local firms to expand farm product market, ActionAid USA celebrates collapse of Bagamoyo sugar project]
Tanzania: 1 trillion/- revenue collection target for ports authority (Daily News)
The newly-appointed Board of Directors of the Tanzania Ports Authority has been directed to increase ports revenue to one trillion/- from 623bn/- collected annually and stem all rot that have led to inefficiency at the ports. The directive was issued in Dar es Salaam by the Minister for Works, Transport and Communications, Professor Makame Mbarawa. “The government has been losing ports revenue due to poor infrastructure but, if our ports could have systems with international standards, such loss could have been contained,” he observed.
Mozambique Railways needs $400m to rehabilitate Machipanda line (Club of Mozambique)
The Minister of Transport and Communications, Carlos Mesquita, said that the feasibility study for the rehabilitation of the line, which is in a very delicate technical condition, has just been completed. “We finished the feasibility study and we are now trying determine how the implementation process will be carried out, namely the rehabilitation of the line itself and the acquisition of rolling stock,” Mesquita said, adding that the line needs urgent intervention to satisfy demand. Mesquita revealed that he had been in contact with various partners, particularly the Chinese, who may be interested in the rehabilitation project. [World Bank looks into case of ‘embezzlement’ at RVR (The Observer)]
Rwanda: Tax experts tip government on new transfer pricing law (New Times)
As government prepares to implement a new transfer pricing policy on July 1, experts have called on the Rwanda Revenue Authority to clarify how it will be administered. Tax experts say the methodology that will be used to conduct transfer pricing audits is not clear, adding that there is also lack of skilled manpower, among others. David Baliraine, the EY associate director for tax services, also said the law does not give firms sufficient guidelines on how they can prepare ‘proper’ transfer pricing documents to ensure proper administration. He added that the law does not specify the minimum requirements in terms of regulations and guidelines for proper implementation.
Maritime arbitration as an effective tool, in resolving cross-border shipping disputes in SSA (Hellenic Shipping News)
Maritime arbitration in Africa has the potential to become an effective tool in resolving cross border shipping disputes in sub-Saharan Africa. This is according to Andrew Pike, Head of the Ports, Terminals & Logistics Corridors Sector at Bowman Gilfillan Africa Group’s Durban office. He was speaking at the first International Chamber of Commerce Africa Regional Conference, held in Nigeria from 19-21 June. Pike said however, that parties engaged in international maritime disputes could agree a seat of arbitration in Africa, even where they are applying a foreign law to the resolution of the dispute itself. In such a case, it is envisaged that any arbitration hearing would take place at a venue in Africa and also be subject to the procedural rules and court supervision of the country in Africa so chosen by the parties.
From companies to markets: developments in corporate governance (IFC)
A highlight of the event was the launch of a new IFC publication, From Companies to Markets—Developments in Corporate Governance). Based on input from practice group members and discussions from the previous practice group meeting, the publication offers insight into ways in which companies of all sizes and industries - as well as governments and regulatory agencies - have elevated the corporate governance agenda.
ECOWAS: President Sirleaf outlines her plans (ECOWAS)
The Chair of the ECOWAS Authority of Heads of State and Government, Madam Ellen Johnson Sirleaf outlined her plans for ECOWAS to the President of the ECOWAS Commission, H.E. Marcel de Souza during a recent official visit to the Republic of Liberia. Both called on Member-States to endeavour to attend the forthcoming Lomé Meeting between ECOWAS and EU that would serve as a veritable platform to discuss issues of critical importance with EU and other International Partners and Donors. Both highlighted the importance of Lagos-Abidjan-Dakar Road Network and called for early submission of feasibility report connecting all the corridors including Liberia.
Peacebuilding Commission briefs UNSC on partnerships, Ebola recovery (UN)
Macharia Kamau (Kenya), current Chair of the Peacebuilding Commission, said those resolutions recognized that sustaining peace required more coherence and coordination among the United Nations system. He outlined the Commission’s key initiatives and plans for the remainder of the current session, noting it had convened two important meetings in recent months to discuss trends and challenges to peacebuilding at the regional and subregional level. He intended to expand that approach to other regions, starting with Central Africa and East Africa, and to pursue deeper conversations with the African Union with a possible visit to Addis Ababa and a retreat with the African Union Peace and Security Council.
Regional MPs rally women to participate in EAC affairs (New Times)
Lack of political will derails SADC integration (The Herald)
South Africa: State of the Cities Report (pdf)
Poland signs poultry deal with SA (JacarandaFM)
Industrial policies in North Africa: call for papers (UNECA)
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