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FOCAC: Call for investment-led trade
President Cyril Ramaphosa has called for investment-led trade between Africa and China.
This will help promote the industrialisation of African economies and position the continent as a global competitor. Such investments will also allow China to reap the benefits of a massive continental market.
“We should seek inward investment that enables industrial development and the export of more value-added products.
“We urge Chinese investors to take advantage of the great opportunities that will be created through the establishment of the African Continental Free Trade Area,” President Ramaphosa said on Monday.
The President was speaking at the opening ceremony of the 2018 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC). The President co-chaired the two-day summit under the theme: “China and Africa: Toward an even stronger community with a shared future through win-win cooperation”.
The summit brought together 52 African countries, the AU Commission and the Peoples Republic of China as partners in cooperation. It aims to explore seven areas of cooperation over the next three years.
With the increasingly uncertain global environment, President Ramaphosa said the economic value of FOCAC – to both Africa and China – is particularly important.
Global economic volatility and heightened concerns about peace and stability render developing countries particularly vulnerable.
There is a renewed threat to the rules-based multilateral global trading system, which although imperfect, does provide stability, predictability and a greater degree of fairness.
FOCAC reaffirms shared commitment
“We should be using platforms such as FOCAC to reaffirm our shared commitment to multilateralism, a fair and transparent system of international trade and a global economic architecture that promotes the interests of the developing world.
“Africa is the next frontier growth market in the world,” said President Ramaphosa.
The FOCAC Cooperation was established in 2000 as a multilateral platform for exchange and cooperation between China and African countries.
It serves as an effective platform for south-south cooperation focused on the tangible improvement of the quality of lives of all the people of Africa by covering various aspects of politics, trade, economy, society and culture.
The President said the progress that has been made over the last 18 years demonstrates the tangible and lasting benefit of FOCAC to the people of Africa and to the people of China.
“The relationship that we have forged through FOCAC is premised on the fundamental and inalienable right of the African people to determine their own future. It is premised on the African Union’s Agenda 2063, a vision that has been crafted in Africa, by Africans.”
In the coming decades, President Ramaphosa said the FOCAC should be used as an instrument for youth development, to invest in building their capabilities and exposing them to the great possibilities that the world has to offer.
“Our objectives extend beyond the peoples of Africa and China. Together, we are working to build a community of shared future for all humankind. This requires leadership, vision and partnership.”
Eight major initiatives for Africa
President Xi Jinping used his address to announce that China will implement eight major initiatives with African countries in the next three years and beyond, covering fields such as industrial promotion, infrastructure connectivity, trade facilitation, and green development.
On industrial promotion, Xi said a China-Africa economic and trade expo will be set up in China and Chinese companies are encouraged to increase investment in Africa.
China will carry out 50 agricultural assistance programs, provide emergency humanitarian food aid amounting to 1 billion yuan (US$147 million) to African countries affected by natural disasters, and send 500 senior agricultural experts to Africa.
On infrastructure connectivity, Xi said China will work with the African Union to formulate a China-Africa infrastructure cooperation plan and support Chinese companies in taking part in Africa's infrastructure development by way of investment-construction-operation or through other models.
With regards to trade facilitation, Xi said China will increase imports, especially non-resource products, from Africa and support African countries in participating in China International Import Expo.
The least developed African countries will be exempted from paying exhibition stand fees, he said.
On people-to-people exchanges, Xi said China will set up an institute of African studies and enhance exchanges with Africa on civilization. China welcomes Africa's participation in the Silk Road International League of Theatres, the Silk Road International Museum Alliance and the Network of Silk Road Art Festivals.
On peace and security, Xi said China will set up a China-Africa peace and security fund and continue providing free military aid to the African Union. A total of 50 security assistance programs will be carried out in the fields including UN peacekeeping missions, fighting piracy, and combating terrorism.
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International trading order must be upheld: Ramaphosa
While foreign direct investment to Africa has increased, economies on the continent are vulnerable to global market fluctuations and it is essential to uphold the international trading order, President Cyril Ramaphosa said on Monday.
The President was speaking at a China-Africa High Level Dialogue with Business Representatives at the Forum on China-Africa Cooperation (FOCAC) in Beijing, China.
President Ramahosa said foreign direct investment (FDI) has increased almost five-fold, overtaking foreign aid on the continent since 2000.
He said the African continent is encouraged by trade between Africa and China which stood at $170 billion in 2017, up from $10 billion in 2000.
Chinese direct investment in Africa between 2000 and 2017 exceeded $100 billion, up from only $1 billion in 2000.
“While such integration brings many benefits, it also makes Africa’s economies more vulnerable to global market fluctuations and crashes. It also increases the volatility of prices for food and other essential commodities,” said the President.
“It is therefore essential that we strive to uphold the international trading order and the global development priorities contained in the Sustainable Development Goals and the Paris Agreement on climate change,” he said.
Putting people first
President Ramaphosa said as the pace of investment in infrastructure and industrial capacity “we must place the people at the centre of our efforts”.
“As we promote science, technology, innovation, engineering and mathematics, we must maintain a people-centred approach. When we create jobs, it must be decent jobs to give our people dignity and a rising standard of living,” he said.
Engagement within FOCAC should be strategically building links between dignity, work, opportunity and economic security for all people.
“Our people should see and feel the benefits of this strategic cooperation,” said President Ramaphosa of the forum that was established 18 years ago and has become a significant mark of China-Africa cooperation.
President Ramaphosa said the African continent has awakened to the great potential for inclusive growth and meaningful development.
“With the assistance and the support of the Chinese people and government, we are certain that working together we will surely realise that potential.”
Partnership between Africa and China
The third FOCAC Summit reflects the unique and strategic nature of the partnership between Africa and China that facilitates the realisation of Africa’s developmental aspirations reflected in Agenda 2063 through pragmatic collaboration in the quest of win-win cooperation.
In addition the outcomes of the Johannesburg Summit in 2015, which included the
pdf
Action Plan 2016-2018
(1.99 MB)
and the ten new cooperation measures announced by his Chinese counterpart President Xi Jinping, were welcomed by all.
“The measures are directly aligned with Africa’s priorities, including the need for infrastructure development, funding and professional skilled personnel,” he said.
Infrastructure development
The President said he is convinced FOCAC has taken the comprehensive strategic partnership journey further as the countries involved continue to pursue economic liberation and socio-economic development of its peoples.
This as China has in the past three years provided $60 billion to carry out some of the Africa’s largest infrastructure development projects.
The Addis Ababa Djibouti Railway, the Nairobi Mombasa Railway, Benguela Railway, the Nigerian Abuja Kadula Railway and the Lagos Abadan Railway demonstrate China’s commitment to Africa.
Remarks by President Cyril Ramaphosa at the China-Africa High Level Dialogue with Business Representatives Forum on China-Africa Cooperation
China is an old friend of Africa.
It has a long history of engagement, friendship and support.
Allow me to express my appreciation to you, President Xi Jinping, and to the people and government of the People’s Republic of China, for the outstanding hospitality and excellent facilities provided to our delegation since our arrival in the beautiful city of Beijing.
President Xi,
We are humbled that the first visit you undertook after your re-election to the esteemed position of General Secretary of the Central Committee of the Communist Party of China was to Africa.
Furthermore, a tradition has been established for the past 26 years in Chinese diplomacy that your Foreign Minister prioritises us in Africa as the destination of his first foreign visit.
We thank State Councillor and Minister Wang Yi for upholding this practice.
President Xi, this is not only indicative of the close relations between Africa and China but also of your personal affinity for the Continent.
Allow me to also commend you for the great progress that the Forum on China-Africa Cooperation has made since its inception in 2000.
The 3rd FOCAC Summit reflects the unique and strategic nature of our partnership that facilitates the realisation of Africa’s developmental aspirations reflected in Agenda 2063 through pragmatic collaboration in the quest of win-win cooperation.
The outcomes of the Johannesburg Summit in 2015 – including the Action Plan 2016-2018 and the ten new cooperation measures announced by you, President Xi – are indeed welcomed by all.
The measures are directly aligned with Africa’s priorities, including the need for infrastructure development, funding and professional skilled personnel.
We are encouraged by the fact that that trade between Africa and China stood at $170 billion in 2017, up from $10 billion in 2000.
Chinese direct investment in Africa between 2000 and 2017 exceeded $100 billion – up from only $1 billion in 2000.
Among other achievements, over 6,500 km of railways, 6,000 km of highway, 70 power plants, 20 airports, 20 seaports and 200 schools have been built.
Soon after Africa cast off the shackles of colonialism and imperialism, the Chinese government developed the Tanzania, Zambia and Mombasa Railways that were for a long time a symbol of political emancipation and South-South Cooperation.
As we now pursue our economic liberation and socio-economic development of our peoples, I am convinced that FOCAC has taken the comprehensive strategic partnership journey further.
In the past three years, China has provided $60 billion to carry out some of the Africa’s largest infrastructure development projects.
On land, the Addis Ababa-Djibouti Railway, the Nairobi-Mombasa Railway, Benguela Railway, the Nigerian Abuja-Kadula Railway and the Lagos-Abadan Railway demonstrate China’s commitment to Africa.
These are all either completed or under construction.
Our coastal areas are not being neglected either as China extends its cooperation expansion projects in Port Lamu, Nigeria’s Laki Deep-Water Port and the Port of Dar es Salaam.
We are impressed with the number of economic and trade zones that FOCAC can claim credit for.
These include Zambia’s China Economic and Trade Cooperation Zone, Egypt’s Suez Economic and Trade Cooperation Zone and Ethiopia’s Eastern Industrial Park.
South Africa and China have cooperated within the BRICS family to drive development by the establishment of the BRICS New Development Bank based in China and the Africa Regional Centre based in South Africa.
Our human susceptibility makes us vulnerable to natural catastrophe.
However, our common humanity compels us to assist each other.
In the wake of the contagious Ebola epidemic that claimed thousands of lives in West Africa, when many other countries were shying away from this crisis, China characteristically responded by dispatching 1,000 medical professionals and medical aid worth $120 million.
The FOCAC Framework accommodates China’s cooperation in Africa’s Peace and Security Architecture, established in 2004 to address conflict and instability.
China has nearly 3,000 troops, police and observers engaged in 6 of the 7 UN peace-keeping operations on our Continent.
Chinese diplomats have worked tirelessly in brokering peace in Sudan.
China contributed to transforming the untenable condition of “no peace no war” between Eritrea and Ethiopia into one of friendship and good neighbourliness.
Among the P5 of the Security Council, China is applauded for pursuing the “P+4” practice, whereby it consults with the four African members of the Security Council on all issues related to the Continent.
As South Africa assumes its non-permanent seat on the UN Security Council, I have instructed our diplomats to honour this practice.
We look forward to continued Chinese support in pursuing the objectives and priorities outlined in the African Union’s Agenda 2063.
We look forward to new areas of cooperation and support, such as the blue economy and the Fourth Industrial Revolution.
We gather here today in a rapidly changing and challenging global environment that is witnessing major shifts in international political, economic and social dynamics.
Globalisation continues to shape the world at an accelerating pace.
While globalisation has brought many benefits, these have not been evenly distributed between countries and within countries.
The negative effects of globalisation are manifested in rising populism, growing insecurity, weakening support for multilateralism, the erosion of democratic values, and climate change.
This has resulted in a fractured world, where some powers are prone to unilateral and protectionist measures.
Africa covers more than 20% of the Earth’s land surface.
It is richly endowed with natural resources and is one of the most economically and culturally diverse regions in the world.
Africa will experience profound change over the next 30 years.
Its population is likely to almost double to around 2.3 billion by 2045, comprising approximately a quarter of the world’s population.
On current trends, its economy will have quadrupled.
Technology is likely to play a major role in improving the quality of life for most Africans – by increasing access to high-quality health care and education, cheaper energy and information.
Africa is becoming more integrated into the global economy.
Since the year 2000, foreign direct investment has increased almost five-fold, overtaking foreign aid.
While such integration brings many benefits, it also makes Africa’s economies more vulnerable to global market fluctuations and crashes.
It also increases the volatility of prices for food and other essential commodities.
It is therefore essential that we strive to uphold the international trading order and the global development priorities contained in the Sustainable Development Goals and the Paris Agreement on climate change.
As we accelerate the pace of investment in infrastructure and industrial capacity, we must place the people at the centre of our efforts.
As we promote science, technology, innovation, engineering and mathematics, we must maintain a people-centred approach.
When we create jobs, it must be decent jobs to give our people dignity and a rising standard of living.
Our engagement within FOCAC should be strategic.
It should build links between dignity, work, opportunity and economic security for all our people.
Our people should see and feel the benefits of this strategic cooperation.
Allow me to conclude by echoing the words of the revered leader Chairman Mao, who said:
“To achieve a lasting world peace, we must further develop our friendship and cooperation with the fraternal countries in the socialist camp and strengthen our solidarity with all peace-loving countries.
We must endeavour to establish normal diplomatic relations, based on mutual respect for territorial integrity and sovereignty and of equality and mutual benefit, with all countries willing to live together with us in peace.”
In charting the path ahead, we recall also the words of the first President of a free and independent Ghana, Kwame Nkrumah, who said:
“We have awakened. We will not sleep anymore. Today, from now on, there is a new African in the world!”
As Africa, we have awakened to the great potential that lies within our continent for inclusive growth and meaningful development.
With the assistance and the support of the Chinese people and government, we are certain that, working together, we will surely realise that potential.
I thank you.
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tralac’s Daily News Selection
African trade events to diarise:
(i) Africa Industrialization Week 2018 (19-23 November, Addis Ababa). The theme for the AIW2018 is Promoting regional value chains in Africa: a pathway for accelerating Africa’s structural transformation, industrialization and pharmaceutical production”. The 1st AU-NEPAD Africa Pharma Conference will be the flagship event of the Africa Industrialization Week. Some of the side events during the week include: the Continental Forum on Regional Value Chains; the Second Symposium on Special Economic Zones and green industrialization; an Africa Enterprise Network workshop; and workshops on Youth entrepreneurship, Quality infrastructure within the value chain to improve SME products; and Financing industrialization.
(ii) UNCTAD, partners expert meeting on Maritime transport in Africa: challenges and opportunities, and an agenda for future research (11 September, Mombasa)
FOCAC 2018: China’s Xi offers another $60bn to Africa, but says no to “vanity” projects (Reuters)
Chinese President Xi Jinping offered another $60bn in financing for Africa on Monday and said Chinese companies will be encouraged to invest no less than $10bn over the next three years, but he also warned against “vanity projects”. Speaking at the opening of a major summit with African leaders, Xi promised development that people on the continent could see and touch, but that would also be green and sustainable. Xi, addressing leaders at Beijing’s Great Hall of the People, said the new $60bn will include $15bn of aid, interest-free loans and concessional loans, a credit line of $20bn a $10bn special fund for China-Africa development, and a $5bn special fund for imports from Africa. Chinese companies will be encouraged to invest no less than $10bn in the continent in the next three years, he said.
China, Mauritius set to sign free trade agreement (Xinhua)
China and Mauritius are preparing for the final signing of a bilateral free trade agreement after concluding months-long negotiations Sunday, according to the Ministry of Commerce. Witnessed by Premier Li Keqiang and Mauritian Prime Minister Pravind Jugnauth, minister-level officials from both sides signed a memorandum of understanding on wrapping up the talks, leading to the first free trade agreement between China and an African country. China and Mauritius will conduct a legal review of the negotiation outcomes and the agreement text to make preparations for sealing the deal.
South Africa records a trade deficit in July 2018 (SARS)
The South African Revenue Service, Friday, released trade statistics (pdf) for July 2018 which recording a trade deficit of R4.66bn. These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia. The year-to-date (01 January to 31 July 2018) trade deficit of R6.51bn is a deterioration on the surplus for the comparable period in 2017 of R33.21bn. Exports year-to-date increased by 3.6% whilst imports for the same period showed an increase of 10.2%. The July trade deficit is attributable to exports of R107.06bn and imports of R111.72bn. Exports decreased from June 2018 to July 2018 by R2.96bn (2.7%) while imports increased from June 2018 to July 2018 by R13.58bn (13.8%)
Algeria’s energy earnings in first seven months of year halve trade deficit (Reuters)
Algeria’s energy earnings rose 15.23% in the first seven months of this year from the same period in 2017, reducing the trade deficit by 53.5%, official data seen by Reuters showed on Sunday. Oil and gas exports, which accounted for 93.09% of total sales abroad, reached $22.021bn, up from $19.111bn in January-July last year, according to customs figures. The overall value of exports reached $23.656bn against $20.205bn in the first seven months of 2017, while imports fell 1.06% to $26.908bn.
Nigeria: Government calls for inputs to new trade policy (Premium Times)
The Nigerian Office for Trade Negotiations made the call in a statement issued on Saturday. It said the call was part of the process of preparing “A 21st Century Trade Policy for Nigeria: a welfare and prosperity trade agenda that works for all”. NOTN called for contributions from key players in the public and private sectors: the deadline for submissions is 30 September. Inputs are invited on the following themes:
Trade policy, foreign policy and national security; Trade, competitiveness and rules-based safeguards; Trade and companion policies (enabling environment for business, industrial policy, technology and the spectrum of regulatory policies); Trade in services; Trade in goods; Trade in the “knowledge economy”: digital economy and data, intellectual property and innovation; Trade and investment facilitation and global value chains; Informal economy trade; Empowerment of women in trade; Standards and quality infrastructure; Trade capacity-building and training; Institutional rramework for the management of trade policy; Trade remedy and trade dispute settlement; and Monitoring, review and evaluation. [Nigerian Coalition of Services Industries elects co-chairpersons from NSE, NBA]
MTN Nigeria, Banks and CBN action: an update and initial commentary (Proshare)
Last week, MTN Nigeria was sanctioned by the Central Bank of Nigeria over allegations of impropriety in the repatriation of funds from Nigeria. This is a thread to help people understand the issues surrounding the recent fine imposed by the CBN on 4 banks and the request that they should refund $8.1 Billion in “illegally repatriated” dividends. [Uncertainty beclouds MTN’s planned IPO due to $8.1bn controversy]
Egypt: Public-sector revamp (Al Ahram)
Minister of Public Enterprise Hisham Tawfik recently announced that the ministry would begin plans to restructure the public sector in September with a view to improving companies’ performance and paying off their debts. Meetings would be held with each of the state-owned companies to discuss the ministry’s vision for reform according to the situation of each company, he said. He added that plans given to the companies would be set according to a comprehensive study of each sector. Egypt’s public sector includes 121 companies in different areas affiliated to eight holding companies with 210,000 employees. These companies have been criticised for being inefficient and making losses that in some cases have reached 90% of their capital. President Abdel-Fattah Al-Sisi has asked the government to draw up plans to reform the public-sector companies and increase their share of the economy. Besides tackling the debt burden of most public-sector companies, the government’s plans include a programme for initial public offerings of 23 of the most successful companies over a period of 24 to 30 months.
Zambia Revenue Authority joins the WCO Mercator Programme (WCO)
Recognizing the complexity of the trade facilitation environment and the unique Customs-to-Customs capacity-building model of the WCO, the scoping exercise (13-17 August) included extensive consultations with different ZRA directorates, along with the Zambian Ministry of Commerce and Industry and other cross-border regulatory agencies in Lusaka and at the Chirundu border post. Discussions covered a wide range of technical issues, including risk management, post-clearance audit, measurement of release times, authorized operators, coordinated border management, Customs brokers, Single Window and consultations with the private sector. The private sector’s perspectives were explored through further consultations with the Zambia Chamber of Commerce and Industry. [WCO’s WACAM project supports Nigeria Customs Service in preparation of the Time Release Study]
South Africa: Fruit sector predicts major disruption if new road legislation is implemented (FruitNet)
The South African fruit export sector has warned that a lack of sufficient truck capacity to transport the 3m tonnes of containerised fresh fruit in 151,000 Hi Cube containers which is expected to be produced by 2020, will have a major negative impact on the country’s agricultural sector and could severely hurt export volumes in the future. This comes after news emerged last week that new regulations regarding the height of these containers when transported on the fleet of trailers currently used by haulers on South African roads, will be enforced from 1 January 2019. This has already resulted in the port company Transnet Port Terminals warning that it will not off-load empty High Cube containers from vessels in South African ports from 1 November 2018 unless shippers and haulers can prove that they are able to forward them on. Haulers have indicated that they will only be able to give these assurances until December 2018, warning that from 1 January 2019, if nothing changes and empty containers arrive in South African ports, they will very quickly block the ports.
Dewele – Tog Wajaale corridor report: update (IGAD)
The IGAD Security Sector Program last week concluded a workshop where high level participants from the Djibouti and Ethiopia governments exhaustively reviewed and validated improved recommendations to enrich the findings in the report “Mapping and analysis of the cross-border security threats in the IGAD region: a case study of the Dewele – Tog Wajaale corridor”. The corridor is a tri-border area that stretches from Dewele to Tog Wajaale where Dewele has a common rail and road border crossing between Djibouti and Ethiopia while Tog Wajaale has a road crossing border point between Ethiopia and Somalia (Somaliland) connecting to Hargesya and Port of Berbera on the Gulf of Eden. In the report it was found out that the corridor is faced with multiple cross-border criminal activities including migrant smuggling, illegal cash flows, contraband and smuggling of prohibited goods and counterfeiting to mention few.
WHO report finds poor delivery of services threatens gains made in health in Africa (WHO)
The State of Health in Africa report (pdf) provides a comprehensive overview of the state of health in the region, the related services people need, the performance of their health systems and analyzes what impacts these have on health of people in the region. There has been a significant improvement in the state of health in the region with healthy life expectancy - time spent in full health - in the region increasing from 50.9 years to 53.8 between 2012 and 2015 - the most marked increase of any region in the world. What is making Africans sick is changing. Spending on health is low in the region and increased investments are important, but it is not only how much funds are spent, but what they are spent on. An examination of the link between health expenditures and well-being showed a weak association between funding and healthy life. Thirteen countries spent less than US$ 300 but had comparable healthy life expectancies to some countries spending more than US$ 500. Additionally, a number of countries are spending above US$ 500 but their level of health is similar to countries spending under this amount. Specific recommendations for each of the 47 countries of the region are made in the report and countries with good practices are identified so that others can learn lessons across the different dimensions of universal health coverage and other SDG health targets
Monday’s Quick Links: Peter Leon: The resurgence of resource nationalism in Africa Volkswagen signs assembly, policy MoUs in Nigeria, Ghana Ghana: Tema LNG Terminal Company Ltd and China Harbour Engineering Company sign agreement on LNG terminal EAC pre-budget conference for FY 2019/2020: update UNCTAD, Indonesia collaborate on first global creative economy conference (6-9 November, Bali) India’s e-commerce market to grow fourfold to $150 billion by 2022 |
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South Africa Merchandise Trade Statistics for July 2018
South Africa’s trade balance swings to deficit in July
South Africa’s trade balance shifted to a R4.66 billion deficit in July of 2018 from a downwardly revised R11.89 billion surplus in the previous month and well below market consensus of a R5.4 billion surplus. It was the largest trade deficit since January, as exports fell while imports picked up. Considering the first seven months of the year, the country recorded a trade deficit of R6.51 billion.
Imports jumped 13.8 percent month-over-month to R111.7 billion in July of 2018, boosted by higher purchases of mineral products (23 percent); chemicals (17 percent); machinery and electronics (7 percent); vegetable products (88 percent) and base metals (17 percent). The most important import partners were: China (17.1 percent of total imports), Germany (9.9 percent), Saudi Arabia (7.2 percent); Nigeria (5.7 percent) and the US (5.4 percent).
Exports dropped 2.7 percent month-over-month to R107.1 billion, mostly due to lower sales of precious metals and stones (-19 percent); base metals (-5 percent) and other unclassified (-59 percent). On the other hand, sales rose for vegetable products (24 percent); machinery and electronics (8 percent) and mineral products (3 percent). Main export partners were: China (9.2 percent of total exports), the US (7.4 percent), Germany (6.4 percent), Japan (5.7 percent) and India (4.6 percent).
Excluding trade with neighboring Botswana, Lesotho, Namibia and Swaziland, the country recorded a trade deficit of R11.53 billion in July.
The South African Revenue Service (SARS) has released trade statistics for July 2018 recording a trade deficit of R4.66 billion. These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia (BELN).
The year-to-date (01 January to 31 July 2018) trade deficit of R6.51 billion is a deterioration on the surplus for the comparable period in 2017 of R33.21 billion. Exports year-to-date increased by 3.6% whilst imports for the same period showed an increase of 10.2%.
Including trade data with Botswana, Eswatini, Lesotho and Namibia (BELN)
The R4.66 billion trade deficit for July 2018 is attributable to exports of R107.06 billion and imports of R111.72 billion. Exports decreased from June 2018 to July 2018 by R2.96 billion (2.7%) and imports increased from June 2018 to July 2018 by R13.58 billion (13.8%).
Exports for the year-to-date (01 January to 31 July) increased by 3.6% from R653.47 billion in 2017 to R677.06 billion in 2018. Imports for the year-to-date of R683.57 billion are 10.2% more than the imports recorded in January to July 2017 of R620.26 billion, leaving a cumulative trade deficit of R6.51 billion for 2018.
On a year-on-year basis, the R4.66 billion trade deficit for July 2018 is an deterioration from the surplus recorded in July 2017 of R 8.58 billion. Exports of R107.06 billion are 16.0% more than the exports recorded in July 2017 of R92.30 billion. Imports of R111.72 billion are 33.5% more than the imports recorded in July 2017 of R83.71 billion.
June 2018’s trade surplus was revised downwards by R0.11 billion from the previous month’s preliminary surplus of R12.00 billion to a revised surplus of R11.89 billion as a result of ongoing Vouchers of Correction (VOC’s).
Trade highlights by category
The main month-on-month export movements: R’ million
|
||
Section:
|
Including BELN:
|
|
Precious Metals & Stones
|
-R4 324
|
- 19%
|
Base Metals
|
-R 707
|
- 5%
|
Other Unclassified
|
-R 621
|
- 59%
|
Machinery & Electronics
|
+R 669
|
+ 8%
|
Mineral Products
|
+R 749
|
+ 3%
|
Vegetable Products
|
+R1 719
|
+ 24%
|
Total
|
-R2 515
|
85%
|
Total Movement |
-R2 965 |
100% |
The main month-on-month import movements: R’ million
|
||
Section:
|
Including BELN:
|
|
Mineral Products
|
+R4 214
|
+ 23%
|
Chemical Products
|
+R1 713
|
+ 17%
|
Machinery & Electronics
|
+R1 464
|
+ 7%
|
Vegetable Products
|
+R1 270
|
+ 88%
|
Base Metals
|
+R 766
|
+ 17%
|
Textiles
|
+R 738
|
+ 23%
|
Vehicles & Transport Equipment
|
+R 727
|
+ 8%
|
Total
|
+R10 892
|
80%
|
Total Movement |
+R13 578 |
100% |
Trade highlights by world zone
The world zone results from June 2018 (revised) to July 2018 are given below.
Africa:
Trade surplus: R13 510 million – this is a deterioration of R 889 million in comparison to the R14 400 million surplus recorded in June 2018.
America:
Trade deficit: R350 million – this is a deterioration of R1 078 million in comparison to the R 728 million surplus recorded in June 2018.
Asia:
Trade deficit: R14 767 million – this is a deterioration of R4 459 million in comparison to the R10 307 million deficit recorded in June 2018.
Europe:
Trade deficit: R 9 745 million – this is a deterioration of R9 684 million in comparison to the R 61 million deficit recorded in June 2018.
Oceania:
Trade deficit: R347 million – this is a deterioration of R 156 million in comparison to the R 191 million deficit recorded in June 2018.
Excluding trade data with Botswana, Eswatini, Lesotho and Namibia (BELN)
The trade data excluding BELN for July 2018 recorded a trade deficit of R11.53 billion. This was a result of exports of R96.32 billion and imports of R107.85 billion.
Exports decreased from June 2018 to July 2018 by R3.10 billion (3.1%) and imports increased from June 2018 to July 2018 by R13.02 billion (13.7%).
The cumulative deficit for 2018 is R56.89 billion compared to R19.41 billion deficit in 2017.
Trade highlights by category
The main month-on-month export movements: R’ million
|
||
Section:
|
Excluding BELN:
|
|
Precious Metals & Stones
|
-R4 056
|
-18%
|
Base Metals
|
-R 719
|
- 6%
|
Other Unclassified
|
-R 620
|
-60%
|
Mineral Products
|
+R 652
|
+ 3%
|
Vegetable Products
|
+R1 695
|
+26%
|
Total
|
-R3 048
|
98%
|
Total Movement |
-R3 104 |
100% |
The main month-on-month import movements: R’ million
|
||
Section:
|
Excluding BELN:
|
|
Mineral Products
|
+R4 190
|
+23%
|
Chemical Products
|
+R1 728
|
+ 18%
|
Machinery & Electronics
|
+R1 447
|
+ 7%
|
Vegetable Products
|
+R1 240
|
+ 87%
|
Base Metals
|
+R 774
|
+ 18%
|
Textiles
|
+R 649
|
+ 24%
|
Original Equipment Components
|
+R 433
|
+ 5%
|
Total
|
+R10 461
|
80%
|
Total Movement |
+R13 024 |
100% |
Trade highlights by world zone
The world zone results for Africa excluding BELN from June 2018 (Revised) to July 2018 are given below.
Africa:
Trade surplus: R6 635 million – this is a deterioration of R 475 million in comparison to the R7 110 million surplus recorded in June 2018.
Botswana, Eswatini, Lesotho and Namibia (Only)
Trade statistics with the BELN for July 2018 recorded a trade surplus of R6.88 billion. This was a result of exports of R10.74 billion and imports of R3.86 billion.
Exports increased from June 2018 to July 2018 by R0.14 billion (1.3%) and imports increased from June 2018 to July 2018 by R0.55 billion (16.7%).
The cumulative surplus for 2018 is R50.38 billion compared to R52.62 billion in 2017.
Trade Highlights by Category
The main month-on-month export movements: R’ million
|
||
Section:
|
BELN:
|
|
Mineral Products
|
+R 96
|
+ 5%
|
Machinery & Electronics
|
+R 94
|
+ 6%
|
Vehicles & Transport Equipment
|
+R 62
|
+ 6%
|
Textiles
|
+R 32
|
+ 6%
|
Wood Pulp & Paper
|
+R 30
|
+ 14%
|
Chemical Products
|
+R 28
|
+ 3%
|
Vegetable Products
|
+R 24
|
+ 5%
|
Footwear & Accessories
|
+R 23
|
+ 20%
|
Precious Metals & Stones
|
-R 268
|
- 85%
|
Total
|
+R 121
|
87%
|
Total Movement |
+R 139 |
100% |
The main month-on-month import movements: R’ million
|
||
Section:
|
BELN:
|
|
Vehicles & Transport Equipment
|
+R 321
|
+ 609%
|
Precious Metals & Stones
|
+R 94
|
+ 15%
|
Textiles
|
+R 89
|
+ 20%
|
Vegetable Products
|
+R 29
|
+ 29%
|
Mineral Products
|
+R 24
|
+ 45%
|
Chemical Products
|
-R 16
|
- 3%
|
Total
|
+R 541
|
98%
|
Total Movement |
+R 553 |
100% |
Related News
tralac’s Daily News Selection
Ethiopian trade, industrial policy updates:
(i) Ethiopia’s PM appoints new policy reforms advisor, chief trade negotiator (ECADF). Prime Minister Abiy Ahmed has assigned Mamo Mihretu, a senior project manager at the World Bank, as his senior adviser on policy reforms and Ethiopia’s chief trade negotiator. Mamo has more than 16 years of experience in economic policy, legal, and logistics sector reforms. Based out of Kenya, he led the World Bank Group’s work in Ethiopia in the areas of finance, competitiveness and trade for the last eight years. In his previous role as Principal Trade Attorney, he advised the Ethiopian government on WTO accession and other trade policy issues.
(ii) CNN’s new interactive feature: Employed by China. “China is a rising economy, and it’s going to be the global number one by 2030 latest,” says Arkebe Oqubay, a senior government official and architect of much of Ethiopia’s industrialization strategy. “There’s always rivalry when a great power diminishes. But we as the Africans are the ones to say if we are benefiting from China. We don’t need a witness.”
(iii) A response by @haugejostein (Institute for Manufacturing, University of Cambridge): I enjoyed this [CNN] piece on China’s investments in Ethiopia’s manufacturing sector. Been researching this for some years now, and would like to share some additional thoughts through a thread.
(iv) StanChart CEO Winters wants to “take a look” at Ethiopia banking (Bloomberg). Winters, head of London-based Standard Chartered since mid-2015, would “love to think that there are opportunities” in Ethiopia, he said in an interview in Nairobi. The problem is that it’s entirely closed to foreign banks. “The underlying fundamentals are pretty interesting. It’d be nice if we could get in and take a look and see if we could add some value.” Winters is part of a British business delegation accompanying Prime Minister Theresa May on a three-nation tour of Africa, designed to enhance trading opportunities with the continent. [Addis Fortune: Mobile money comes of age with banks]
(v) Ethiopia hails ties with China as model of successful South-South cooperation (Xinhua). More than 400 Chinese investments that are worth over $4bn are presently active in the East African country, creating more than 100,000 job opportunities for Ethiopians, according to the Ethiopian Ministry of Foreign Affairs. The ministry further reiterated that Chinese investments in Ethiopia are largely engaged in the Ethiopian government’s key priority sectors, mainly the manufacturing and infrastructure building sectors. It also indicated that out of the total more than 400 Chinese-investments in the East African country, some 105 are a joint-venture between Ethiopian and Chinese investors, indicating the positive relations among business communities of the two countries.
Profiled FOCAC preview: Despite debt woes, Africa still sees China as best bet for financing (Reuters)
A wave of African nations looking to restructure debt with China on the eve of a major Beijing summit provides a reality check for the continent, where most countries still view Chinese lending as the best bet to develop their economies. China has denied engaging in “debt trap” diplomacy, but President Xi Jinping is likely to use next week’s gathering of African leaders to offer a new round of financing, following a pledge of $60bn at the last summit three years ago. Ethiopia and Zambia, heavy borrowers from China, have expressed desire to restructure that debt, while bankers believe Angola and Congo Republic have already done so, though details of such deals are sparse.
But many countries, even those heavily indebted to China, still say Beijing offers far better terms than Western banks, and that European nations and the United States fail to match its generosity. “Especially when you go to multilaterals, it takes such a long time,” Aboubakar Omar Hadi, chairman of the Djibouti Ports and Free Zones Authority, told Reuters. [The authors: Joe Bavier, Christian Shepherd]
Luke Patey: To balance Chinese influence, India needs to ensure its Africa gaze is more constant (The Wire)
Nigerian trade policy updates:
Making Made-in-Nigeria products competitive (The Punch editorial board commentary)
But the country that should arrest Nigeria’s interest most is Ethiopia...It is not by accident that Ethiopia has made its recent strides; it is as a result of painstaking plans and deliberate actions to improve sectors that aid manufacturing. In a new research, the IMF said, “Ethiopia can be the new China because it has been improving its road and rail connections, and also has good air connections.” Taking a cue from Ethiopia, Nigeria knows what to do. The government has to improve on infrastructure development; this is very pivotal to making the country’s products competitive.
Nigeria and the AfCFTA: Why manufacturers are adamant (The Nation)
The Nigerian Office for Trade Negotiations says Nigeria is almost ready to sign the African Continental Free Trade Area Agreement. But this flies in the face of the stiff opposition of the Organised Private Sector (OPS), particularly manufacturers, against the deal. The OPS is worried by what it calls the absence of a study to determine the impact, benefit and downside of the agreement, among others. [AfCFTA ratification deadline suffers setback with only seven signatories]
Nigeria’s lawyers run the rule over free trade deal (African Law & Business)
Greg Falkof of Eversheds Sutherland and Kunle Ajagbe of AIDAN Partners provide observations from the Nigerian Bar Association’s business law conference (in June), where the African Continental Free Trade Area was the main topic of conversation.
Nigeria: $8.1bn: Senate clears us – MTN (Vanguard)
South Africa: FAWU urges clampdown on illicit trade but condemns attacks on foreigners (IOL)
The Food and Allied Workers Union on Thursday condemned this week’s killing of foreign traders accused of selling counterfeit and expired products but called on authorities to stage a clampdown to protect the local economy. “We call on local citizens to cease with and desist from further attacking foreign nationals because we believe that every evidence of fake and expired goods, counterfeit and smuggled products, and illegally manufactured foodstuff and other products must be reported to law enforcement agencies, consumer commission and other authorities,” said the union’s general secretary Katishi Masemola. [COSATU’s statement]
Tensions grow over the future of the ACP group (EURACTIV)
Conversely, other European powers consider that the ACP framework is no longer relevant, given the diversity of the countries it brings together. “There are frictions between the AU and the Pacific and Caribbean over the negotiating framework,” admitted a French diplomat. And for good reason. Without the African partner, the group of 79 countries would no longer be worth the trouble for the European Union. “The main challenge of the ACP partnership is, after all, the relationship between Africa and Europe,” acknowledges the French diplomat. While negotiations for the redefinition of the Cotonou Agreement are due to start on 1 September at the latest, the various blocs have agreed on their negotiating mandate.
Gender gaps in property ownership in Sub-Saharan Africa (World Bank)
This paper uses data for 28 countries in Sub-Saharan Africa to shine a spotlight on gaps between men and women in land and housing (property) ownership and analyze patterns across and within countries. The results indicate that men are about three times as likely as women to claim sole ownership over property. Gender gaps are smaller if joint ownership is taken into consideration, but still materially disadvantage women. Men are significantly more likely to own property than women even after controlling for a host of other factors. This paper is an important step toward a better understanding of gender gaps in property ownership in Africa and outlines an agenda for future data collection and analytic efforts. Extract (pdf):
Estimates in this paper – based on data representing more than three-quarters of Africa’s population – suggest that just under 13% of African women (aged 20-49 years) claim sole ownership of land, compared with 36% of African men. The gender gap is smaller if one considers joint ownership, but even then, it remains significant: 38% of African women report owning any land (alone or jointly), compared with 51% of African men. A similar picture emerges for housing ownership. Why is it important that in most African countries land and housing property and, by extension, overall wealth are disproportionately concentrated in the hands of men? [WB grant to prevent gender-based violence in the DRC]
Friday’s Quick Links: Kenya’s Council of Governors conference on Arid and Semi Arid Lands: 5-7 September, in Malindi Kilifi County. #ASALConference2018 Africa Ireland Economic Forum (11 October, Dublin): keynote speakers include Kenya’s Cabinet Secretary for Trade, Industry and Cooperatives, Peter Munya Raphael Hogarth, for The Times: If Britain supports free trade it needs to oil the wheels in Africa Ronak Gopaldas, for ORF: Understanding Africa’s policy conundrums in a changing global order WEF, VoxEU: What’s the future of Blockchain? World Bank: Rethinking public employment services for the digital era Previews of the World Economic Forum on ASEAN (11-13 September, Vietnam): Everything you need to know about the WEF on ASEAN 2018; ASEAN 4.0: Entrepreneurship and the Fourth Industrial Revolution (pdf); 7 key challenges for the future of ASEAN – and how to solve them |
Related News
Tensions grow over the future of the ACP group
The African Union wants to have a continent-to-continent dialogue with Europe, a change that could make the framework of the Cotonou Agreement implode and leave the Pacific and Caribbean states out in the cold.
The 79 countries of the Africa, Caribbean and Pacific Group are due to begin formal negotiations with the European Union on 1 September to redraw the outlines of the Cotonou Agreement.
This broad agreement governing relations between the two blocs expires in 2020. But on the eve of the official renegotiation of the partnership begun in 1975, the ACP bloc is questioning its future.
“When this cooperation started in 1975, the agreement between the EU and the ACP countries was truly innovative. It was an attempt by European countries to build a partnership with their former colonies, helping them to integrate into the world economy while keeping them close. It was a postcolonial pact,” explains Jean Bossuyt, a specialist on ACP-EU relations at the European Centre for Development Policy Management (ECDPM).
“But that was 50 years ago. Is this framework still relevant today?” the expert continues. “The ACP group brings together 79 countries that are extremely different, that include both Nigeria and Vanuatu, for example. This group has become too heterogeneous.”
On the European side, the wish for maintaining the current framework, which brings together countries from the four corners of the globe, is not obvious.
Some countries such as France, Belgium, Italy or Portugal wished to maintain cooperation with the ACP group. But others, such as Germany, Sweden or the Netherlands, called for the ACP framework to end.
“This cooperation makes it possible to maintain a pole of stability in 79 countries, particularly at a time when the United States is disengaging from multilateralism,” says a French source.
Conversely, other European powers consider that the ACP framework is no longer relevant, given the diversity of the countries it brings together.
“There are frictions between the African Union (AU) and the Pacific and Caribbean over the negotiating framework,” admitted a French diplomat. And for good reason.
Without the African partner, the group of 79 countries would no longer be worth the trouble for the European Union. “The main challenge of the ACP partnership is, after all, the relationship between Africa and Europe,” acknowledges the French diplomat.
An ACP position?
While negotiations for the redefinition of the Cotonou Agreement are due to start on 1 September at the latest, the various blocs have agreed on their negotiating mandate. The European countries agreed to maintain the current framework, giving the European Commission a mandate to open the talks.
On the ACP side, a negotiating mandate was also adopted in May. But the African Union has called for more time, wishing to adopt a separate position on the ACP mandate.
At a session in Kigali in March, representatives of the African Union resolutely took a stand against the alliance between the ACP countries.
“We commit to establishing a new framework for cooperation with the EU, separate from the ACP context,” the AU stated in its conclusions. “The new Agreement must be separated from the ACP context and based on a strong and lasting partnership between the two continents.”
For AU representatives, “the ACP Group can in no way represent a relevant policy framework to address global and regional governance, peace and security, and migration issues”.
Another point of tension is the fragmentation of African unity, induced by the current form of cooperation. Indeed, the ACP group includes the majority of African countries but excludes the most advanced economies, such as Morocco or Algeria.
“This geographical fragmentation of Africa in its cooperation with the EU weakens and slows down the ongoing integration process on the continent and undermines Africa’s political and socio-economic interests,” underlines the African common position on the post-Cotonou period.
No unity
Nevertheless, African countries are far from a unique position. “It is a total mess because the African countries do not agree among themselves on the need of the ACP group,” underscores Jean Bossuyt.
Beyond the political and trade cooperation provided for in the Cotonou Agreement, development cooperation constitutes the third channel of ACP-EU relations. And it’s the one that developing countries are most reluctant to give up.
“Some African states such as Mali, Togo or Burkina Faso are still in favour of the ACP framework because they fear they will have less European funds in the framework of a partnership agreement with Africa alone,” explains Bossuyt.
This article is part of EURACTIV’s special report EU-ACP relations after Cotonou Agreement: Re-set, re-launch or retreat?.
Related News
tralac’s Daily News Selection
South African trade updates:
(i) South African farmers play chicken with Trump tariffs (Reuters). AGOA grants qualifying countries duty-free access to US markets for thousands of goods and South Africa is among the main beneficiaries. South Africa’s poultry industry agreed to the deal despite the fact its exports remain blocked from entering the US market. It calculates the quota has cost about 6,500 jobs. “It was for the good of the other industries. So we kind of put on a Team South Africa hat in terms of making the rest of the AGOA benefits possible,” said Stander, who is CEO of Country Bird Holdings Ltd - one of South Africa’s top poultry producers. Now that SAPA has filed a lawsuit to force a suspension of the poultry quota, the SA government finds itself in an awkward position. If the anti-dumping tariff is reapplied, South Africa risks retaliation from Washington which could have a more far-reaching impact on the economy as a whole. [The analyst: Joe Bavier]
(ii) Qatar, South Africa trade rises by 70% post-siege (The Peninsula). The SA ambassador said that post-blockade time had seen a huge increase in bilateral trade volume largely on part of imports into Qatar from South Africa. “We have seen 70 increase from pre-blockade to post blockade.” South Africa exports fresh fruit and vegetables, agro-processed food products and other items to Qatar. At present, South Africa is seeking to introduce meat and livestock products in Qatari market as well as opening a meat processing facility here. To formalise the efforts both countries are likely to sign a bilateral animal health agreement, which will ease trade of live animals and chilled meat. Also, South Africa is seeking for Qatari investment in the oil and gas sector and expecting a prominent representation by Qatar at the upcoming International Investor Conference of the SA President Cyril Ramaphosa in Johannesburg in October, according to Moosa. “There is an intention for the President Cyril Ramaphosa to come to Qatar before the end of this year. We are confident that our president will be coming soon accompanied by government ministers, officials and South African captains of industry.”
(iii) Competition Amendment Bill: Concern over act’s security clause (IOL). The business community has raised concerns about the uncertainty created by the Competition Amendment Bill’s “national security interest” clause. The bill was debated in Parliament yesterday. One of the contentious points of the bill has been a new regime for the president to identify a list of national security interests and to establish a committee to assess whether an acquisition by a foreign firm will be adverse to national security. Busa’s economic and trade policy director, Olivier Serrao, said the bill’s national security provisions should not be seen as being exercised arbitrarily or resulting in undue delays in merger proceedings. “In Busa’s view, it is essential that these powers are used responsibly and that the government provides maximum guidance to the market on its approach to national security, how choices are made and communicating interventions,” Serrao said. [Simon Roberts: Faith in market-friendly policies and trust in big businesses hold SA back] [ pdf Competition Amendment Bill, 2018 (992 KB) ]
(iv) Top court to hear appeal on SADC ruling (Business Day). The Constitutional Court will, today, hear an appeal by the state in which it seeks to overturn a high court ruling that declared former president Jacob Zuma’s participation in the suspension of the operations of the SADC Tribunal “unlawful, irrational and unconstitutional”.
(v) @UNCTADKituyi: I agreed with Dr Siyabonga Cwele, South African telecom minister at the G20 Digital Economy Ministerial meeting in Salta Argentina: Africa needs its own “going digital” initiative. @UNCTAD will help do a diagnostic eTrade preparedness study for South Africa
Zimbabwe: July trade deficit reaches $1,5bn (Daily News)
Latest figures released by the Zimbabwe Statistics Agency show that between February and July 2018, the country incurred a $1,475bn trade deficit after importing goods and services worth $3,431bn against exports of $1,957bn. The statistical agency has not provided trade data for January 2018, which would undoubtedly push the trade deficit for the year beyond the $1,5bn. The figures suggest that the deficit for the full year is set to surpass last year’s levels of around $2,5bn. In July, Zimbabwe incurred a trade deficit of $219m after importing goods and services worth $560m, against exports of $340m. Between February and July, Zimbabwe imported goods worth $1,44bn from South Africa, the country’s largest trading partner, against $917m exports. [Germany to open lines of credit for Zimbabwe]
Zambia: Tobacco exports can grow five times – RITCO (Zambia Business Times)
Zambia’s tobacco production – and in effect exports – can grow five times the current production levels, says Roland Imperial Tobacco sales and marketing director Zabu Mwenda. In an exclusive interview with the Zambian Business Times, Mwenda said that currently about two million people are directly and indirectly employed in the tobacco industry. “Considering that our neighbouring countries such as Zimbabwe do about 200 million tons per year, Malawi does about 150 million tons per year and Zambia only does about 30 million tons a year, there is room and an urgent need to put in place measures that will enable farmers grow more tobacco. It’s a cash crop that benefits the Zambian economy by bringing in the much needed forex through exports and boosts the economy in terms of revenue generation by local farmers.”
Nigeria: Rice production saves Nigeria $800m in two years – BoA (Premium Times)
The Bank of Agriculture has disclosed that the federal government has saved about $800m by encouraging local production of rice in the country. Niyi Akenzua, the Executive Director, Finance and Risk Management, said at a media briefing in Lagos ahead of the “Meet the Farmers Conference” scheduled for 10 October 10 in Lagos. The News Agency of Nigeria reports that the conference, which is organised by Crenov8 Consulting, is aimed at exposing African farmers to the opportunities in agro-export, especially to Dubai and other Middle-East countries. Mrs Bola Oyedele, a representative of Crenov8 Consulting, said Dubai imported over $100bn worth of food in 2017 from Africa and it is expected to rise to about $400bn in the next eight years.
Dr Akinwumi Adesina: Unlocking Africa’s agricultural potential to create wealth
African trade and investment: various updates on bilateral processes
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Two African companies prepare to list on the London Stock Exchange and a new UK-Africa FinTech Partnership is launched; Ambitious new Innovation Partnerships with African countries; PM Theresa May meets Buhari in Abuja, signs key bilateral agreements; UK announces £70m programme to create 100,000 jobs in Nigeria; Theresa May’s visit set to unlock stagnated Kenya-UK trade
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Business and migration to shape Merkel’s trip to West Africa; High hopes ahead of Merkel’s Nigeria visit
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CSIS’s Judd Devermont: The world is coming to Sub-Saharan Africa. Where is the United States?
IORA Ministerial Conference: outcomes
Ministers and heads of delegations adopted the pdf Balaclava Declaration on Women’s Economic Empowerment and Gender Equality (142 KB) . In his address, the Prime Minister, Mr Pravind Kumar Jugnauth, highlighted that gender equality is a cross cutting issue and permeates the six priority areas which are: maritime safety and security and the blue economy; trade and investment facilitation; fisheries management; disaster risk management; academic science and technology corporation; and tourism and cultural exchange. As the Chair of the IORA and Minister of Small Business Development of South Africa, Mrs Lindiwe Zulu, pointed out IORA enables Member States to share best practices and experiences to enhance the emancipation of women who still face various challenges in the society.
G20 Digital Economy Ministerial: outcomes
The meeting built on the work of the G20 Digital Economy Task Force, which met in in Buenos Aires in February and again in August. The Digital Economy Task Force was established under the 2017 German presidency, based on the decision adopted in Hangzhou in 2016 under the Chinese Presidency. Argentina selected the theme, “Building consensus for fair and sustainable development” for the 2018 G20 Leaders’ Summit and identified the future of work, infrastructure for development, and a sustainable food future as three key issues for the agenda. Extract from the pdf Salta Declaration (593 KB) : Emerging digital technologies.
“We encourage countries to enable individuals and businesses to benefit from digitalization and emerging technologies, such as 5G, Internet of Things, artificial intelligence, distributed ledger technologies, by: (i) considering appropriate policy approaches and flexible legal frameworks that create an environment that empowers entrepreneurs and fosters research, innovation and competition; (ii) promoting the application of emerging digital technologies in manufacturing, agriculture and other vital areas; and (iii) taking into account the challenges that these new technologies may pose in terms of privacy and security, among others, and the opportunities to improve quality of life and foster economic growth.
We face the challenge of capturing the benefits of digitalization to improve productivity that may lead to new business models including sharing economy, economic development, and the realization of broader opportunities for individuals and business. We highlight the importance of supporting entrepreneurs and MSMEs, noting that they employ a significant part of the labor force in G20 countries and that some have low levels of digitalization and research and innovation for new products and services. G20 countries commit to share lessons from their extensive experience and enhance partnership and cooperation in the effective use of emerging digital technologies, in particular regarding adoption and its opportunities and challenges.”
Annexures to the Salta Declaration: Paper 1 - G20 Digital Government Principles; Paper 2 - Bridging the digital gender divide; Paper 3 - Measurement of the digital economy; Paper 4: Accelerating digital infrastructure for development
Related: UNCTAD statement. ”While we are seeing hyper-digitalization in some parts of the world, we still have other parts of the world where millions have not even climbed the first rung of the digital ladder,” UNCTAD Secretary-General Mukhisa Kituyi told the meeting. “Just look at the level of international cooperation: as we talk today, only 1% of all Aid for Trade funding globally goes to ICT-related areas. Similarly, the multilateral development banks; not more than 2% of their total funding goes to ICT-related activities, and of this, only about 4% goes to policy development areas.”
Dan Ciuriak: From digital trade wars to governance solutions – the G20 and the digitally enabled economy (ICTSD)
Layered on this policy architecture challenge are the myriad regulatory concerns raised by the digital transformation. These include preservation of personal privacy, integrity of democratic processes, maintaining the tax base to fund public goods, and economic regulation to address market failure. Even the very definition of national production is at issue, given the ability to locate intangible capital anywhere internationally at the discretion of companies (e.g. to take advantage of low corporate tax regimes). Importantly for the international community, the data-driven economy promises to serve up market failure in abundance. This reflects, inter alia:
Thursday’s Quick Links: Japan detects weakness in exports for first time in 3 years Michael Bloomberg’s New Economy Forum (6-8 November) moves to Singapore from Beijing Ngaire Woods: Britain’s losing trade strategy Yongding Yu: Why is the Renminbi depreciating? CFR’s Brad Setser: Can anyone other than the US fund a current account deficit these days? The Grand Ethiopian Renaissance Dam: Back to the negotiating table Africa50: Mauritius becomes 30th shareholder Nigeria to expand visa-on-arrival counters at Lagos airport Ethiopia and Singapore agree to tighten their relations |
tralac’s Daily News Selection
Africa’s trade and investment relations: selected updates from recent events
Prime Minister Theresa May in Cape Town
(i) Joint statement by UK, SACU and Mozambique on a future EPA: Ministers responsible for Trade in the UK (G Hollingbery) and in SACU and Mozambique (represented by B.J. Kenewendo of Botswana) met in Cape Town yesterday. “We take note of the progress achieved regarding the UK and EU’s agreement on a time-limited implementation period between the EU and UK following the UK’s departure from the EU, and in particular the intention for the UK to be treated, for the purposes of EU international agreements, as an EU Member State for the duration of the implementation period between the EU and UK. The SACU and Mozambique Trade Ministers indicated that they look forward to receiving formal confirmation of the same via the proposed notification, and to continuing to receive regular updates on progress from the UK on the EU-UK negotiations under Article 50 of the Treaty of the European Union on the UK’s withdrawal from the EU. SACU and Mozambique emphasise the importance of continued cumulation between all the parties in promoting continuity and to avoid disruption in trade, and urge both the UK and the EU to recognise the importance of cumulation in the discussions on a post-Brexit EU-UK arrangement. Nevertheless, we recognise that it is responsible to prepare for all potential outcomes. We confirm that we are therefore taking steps to ensure that our replicated agreement can be in place, if required, immediately upon the UK’s withdrawal from the EU in March 2019, in the event that no agreement is reached between the UK and EU.”
(ii) South Africa-UK Business Forum: speech by Prime Minister Theresa May. So a driving focus of our development programme will be to ensure that governments in Africa have the environment, knowledge, institutions and support to attract sustainable, long-term investments in the future of Africa and Africans. And to help bring those investments about, I can today announce an additional £4bn programme of UK investment in African economies that will pave the way for at least another £4bn of private sector financing. This includes, for the first time, an ambition from the UK government’s Development Finance Institution, CDC, to invest £3.5bn in African nations over the next four years. And next year London will host an Africa Investment Summit, helping investors and African governments forge closer ties with one another. And because markets and economies need people as well as capital, we will also be sharing our expertise – supporting partner countries in developing their business environments and institutions, integrating into global value chains, building ties with investors and tackling barriers to growth. To do so, we will radically expand the UK government’s presence in Africa, opening new missions and bringing in trade experts, investment specialists, and other policy experts.
President Uhuru Kenyatta in Washington
(i) Joint statement by Presidents Trump, Kenyatta: The Presidents are pleased to announce that their governments established direct flights between Nairobi and New York City, a move that will expand the economic and cultural ties between the two great countries. Recognizing the importance of high-quality infrastructure, President Trump and President Kenyatta welcomed the proposal by United States engineering and construction firm Bechtel Corporation to build a modern superhighway from Nairobi to Mombasa. Both sides agreed to undertake further consultations to conclude the terms of the financing agreement. This and nearly $900m in other commercial deals and engagements announced during the visit are expected to create thousands of American and Kenyan jobs, further enhancing the prosperity and economic competitiveness of both nations.
(ii) On the establishment of a US-Kenya Trade and Investment Working Group: USTR Robert Lighthizer, Kenyan Cabinet Secretary for Industry, Trade and Cooperatives, Peter Munya - “our two countries will work together to explore a mutually beneficial trade and investment framework to guide our relationship moving forward, including by maximizing the remaining years of AGOA and looking ahead to the next steps”
(iii) President Kenyatta at the Business Council for International Understanding: The US Overseas Private Investment Corporation and Kipeto Wind Energy Company signed documents to close a $232m deal in financing for the construction and operation of a 100-megawatt grid-connected wind power plant south of Nairobi. The second agreement signed was a $5m letter of commitment in financing to expand the distribution network of Twiga Foods and improve food security and agricultural wages in Kenya.
(iv) US Trade and Development Agency and Kenya: The upcoming visit will connect leading US manufacturing and technology providers to Kenyan officials that are responsible for enhancing Kenya’s communication capabilities in fire, health, or weather-related emergencies and improving access to emergency responders for all Kenyan citizens.
Africa-Singapore Business Forum
(i) Minister for Trade and Industry Chan Chun Sing calls on African businesses to make Singapore a base and a partner “in South-east Asia and beyond”. Even as some developed economies pull back from the world stage, Africa and South-east Asia can work together more closely and promote economic integration, Mr Chan told an audience of some 600 delegates, in a keynote address at the biennial Africa Singapore Business Forum. At Tuesday’s forum, an avoidance of double taxation agreement was inked between Singapore and Gabon - the 13th such deal with an African country. Five other pacts were also signed at the event, which was held at the Grand Copthorne Waterfront Hotel and organised by government agency Enterprise Singapore. The agency’s Singapore Cooperation Enterprise arm and the Mozambique Investment and Export Promotion Agency have agreed to work on exchanging consultancy, advisory and training services for urban master plans and special economic and industrial zones, while the Singapore Manufacturing Federation and Egyptian Businessmen Association will work to match companies in each country with their counterparts. Enterprise Singapore said it has successfully facilitated close to 50 projects for Singapore companies in Africa in the last two years, 80% of which were undertaken by small and medium enterprises (SMEs). Over 60 Singapore companies are present in Africa, operating across more than 40 African countries and multiple industries. [Decoding development: Insights from Singapore’s Economic Development Board]
(ii) Enterprise Singapore supports companies in Africa’s Digital Economy: In the last year, Enterprise Singapore has helped more than 10 Singapore companies to break into Africa’s digital technology space including e-Government services, e-commerce platforms and cross border payments. According to Singstat, foreign direct investment from Africa into Singapore amounted to S$27.4bn in 2016. In 2017, trade between Singapore and Africa amounted to S$9.78bn according to data from Enterprise Singapore, while Singapore investment into Africa reached S$18.5bn in 2016, making the republic its 7th largest trading partner.
(iii) Singapore and Africa – partners for Smart Cities: theme of the Third Singapore-Sub-Saharan Africa High-Level Ministerial Exchange. Remarks by MFA, Dr Vivian Balakrishnan on Singapore Cooperation Programme and Africa: We believe that no single country, let alone a tiny city-state, has a monopoly on the answers to the challenges we face. We also do not believe that there is a single universal model of development that is applicable to all. All of us have our own unique history, geography, societies, and our own unique set of challenges. We believe that by coming together, on occasions like this, we can exchange ideas and perspectives, synthesise them and come up with something that works in our own unique national circumstances. For this reason, we have sought to share our own development journey through the Singapore Cooperation Programme (SCP) over many decades. In fact, since 1992, over 120,000 officials from 170 countries, including 9,000 from Africa, have attended our SCP courses.
(iv) Related: Inaugural Session of the 3rd Indian Ocean Conference. Let me share a couple of principles which shape Singapore’s views of the Indian Ocean, which are drawn from our experience at the tip of the Straits of Malacca. The first thing which we in Singapore believe – and I think I can speak on behalf of ASEAN – is that we need an open and inclusive regional architecture. The key words here are “open” and “inclusive”. This brings me to my second point today. ASEAN has always sought a regional architecture that articulates a complete, coherent, and consistent economic strategy. In other words, trade is strategy. We must look for every opportunity to facilitate trade and mutual investment, enhance connectivity, and invest in infrastructure. The global consensus for free trade and economic integration is fraying.
In other news
Rwanda Development Board Annual Report 2017: selected highlights (pdf)
Total exports increased by 36% compared with 2016, almost reaching$2bn as merchandise exports grew by 58%; In 2017, the main export destination regions for Rwandan goods were the Middle East, Africa (without close neighbours) and Europe while major country destinations were UAE, Kenya & Switzerland; RDB supported promising exporters as well as SMEs - yielding a 43% export increase for 8 leading manufacturing and agro-processing companies; Service exports grew by 20% as tourism exports continued on a growth trajectory increasing by another 12% from 2016-2017; As the chief negotiator for the Government of Rwanda, RDB closed 8 strategic deals in 2017, resulting in the registration of $588m new investments. [Rwanda’s Greens pledge to push for import-export bank]
International tourism arrivals hit record high in 2017 (UNWTO)
The latest edition of its Tourism Highlights, published on Monday, shows international arrivals reached 1.323 million last year. The figure represents an 84 million increase over 2016, and a new record, with the sector also recording “uninterrupted growth” in arrivals for eight consecutive years. Europe and Africa led the regions with increases in arrivals, with growth of eight per cent and nine per cent, respectively. WTO added that tourism is the world’s third largest export category, earning $1.3 trillion in receipts in 2017: an increase of five per cent. Meanwhile, total exports from international tourism stood at $1.6 trillion, or an average of $4 billion a day: that is, seven per cent of the world’s exports. Extract: Africa regional results (pdf):
International tourist arrivals in Africa are estimated to have increase by 9% and receipts at the same level (+8%). Results were driven by the continued recovery in North Africa and the solid growth in most destinations that reported data. Tunisia continued to rebound strongly in 2017 with a 23% growth in arrivals, while Morocco also enjoyed better results after weaker demand in the previous year. Growing demand from European source markets and a more stable environment contributed to the subregion’s positive results. In Sub-Saharan Africa, strong performance continued in large destinations Kenya, Côte d’Ivoire, Mauritius and Zimbabwe. The subregion’s top destination South Africa reported slower growth in arrivals though a strong increase in receipts. Island destinations Seychelles, Cabo Verde and Reunion; all reported double-digit growth in arrivals, benefiting from increased air connectivity. [AfDB: Africa Tourism Monitor 2018]
South Asia’s transport corridors can become engines of growth (World Bank)
The report The web of transport corridors in South Asia (pdf) – jointly produced with the ADB, DFID and JICA – argues that the many transport corridors proposed across Asia would cost trillions of dollars to implement, far exceeding the financing resources available. Hence, countries need to prioritize the most promising corridors that will deliver transformative impacts on economies and people – or, in the terms of the title of the report, will offer wider economic benefits. And while engineering designs and geopolitical considerations are important factors in the decision, sound economic analysis is key to designing truly successful corridors, the report notes.
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Joint statement on UK, SACU and Mozambique EPA
Joint meeting of the United Kingdom (UK), Southern African Customs Union member states (SACU) and Mozambique trade ministers on a future UK, SACU and Mozambique Economic Partnership Agreement (EPA)
The Honourable Ministers responsible for Trade in the UK, G. [George] Hollingbery and in SACU and Mozambique, herein represented by B.J. [Bogolo Joy] Kenewendo of Botswana, met in Cape Town, Republic of South Africa, today, 28th August 2018.
We welcomed the significant progress made on a future UK, SACU, and Mozambique EPA that will ensure that the parties maintain the current market access and replicate the effects of the existing EU-SADC EPA, which will ensure continuity of trade relations between the UK, SACU and Mozambique once the EU-SADC EPA no longer applies to the UK. In this regard therefore:
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We set out today our shared understanding that inclusive trade is essential for poverty eradication and sustained growth. We agreed that the UK-SACU and Mozambique EPA must promote development and support the integration efforts of the African Continent.
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The two sides commit to continue to work together towards the conclusion of a future UK, SACU and Mozambique EPA that ensures continuity in the trade relationship once the EU-SADC EPA no longer applies to the UK.
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We recalled our roundtable discussions on trade relations post-Brexit on the 19th July 2017, wherein we agreed to explore ways to ensure that the existing trade arrangement between the UK, SACU and Mozambique currently governed by the EU-SADC EPA, will not be disrupted by the UK’s departure from the EU. The UK re-affirmed its commitment to ensuring continuity of the effects of the EU-SADC EPA following the UK’s withdrawal from the EU, in particular maintaining the current market access for SACU and Mozambique into the UK.
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We welcome the significant progress our officials have made since then in the discussions on a future UK, SACU, and Mozambique EPA, that will replicate the effects of the existing EU-SADC EPA which has strong aspects of reciprocity. During this process, we recognise the UK’s continuing obligations while it remains an EU Member State.
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We have today confirmed that we will be in a position to ensure that an Agreement can be in place between the UK, SACU, and Mozambique, as soon as the EU-SADC EPA no longer applies to the UK. This confirmation, and the future UK, SACU and Mozambique EPA, are without prejudice to the terms of the EU-SADC EPA.
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We take note of the progress achieved regarding the UK and EU’s agreement on a time-limited implementation period between the EU and UK following the UK’s departure from the EU, and in particular the intention for the UK to be treated, for the purposes of EU international agreements, as an EU Member State for the duration of the implementation period between the EU and UK. The SACU and Mozambique Trade Ministers indicated that they look forward to receiving formal confirmation of the same via the proposed notification, and to continuing to receive regular updates on progress from the UK on the EU-UK negotiations under Article 50 of the Treaty of the European Union on the UK’s withdrawal from the EU. SACU and Mozambique emphasise the importance of continued cumulation between all the parties in promoting continuity and to avoid disruption in trade, and urge both the UK and the EU to recognise the importance of cumulation in the discussions on a post-Brexit EU-UK arrangement.
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Nevertheless, we recognise that it is responsible to prepare for all potential outcomes. We confirm that we are therefore taking steps to ensure that our replicated agreement can be in place, if required, immediately upon the UK’s withdrawal from the EU in March 2019, in the event that no agreement is reached between the UK and EU.
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We re-affirm that we share a strong ambition to further strengthen our partnership in the future, in order to further benefit both parties. Our EPA will form the core basis of our future economic and development relationship. We recognised that some issues have been identified that will require consideration after the UK’s withdrawal from the EU in March 2019 and therefore direct our officials to prepare a built-in agenda on those outstanding issues for expeditious conclusion. We also acknowledge a range of potential issues which could help us further strengthen our partnership, and look forward to discussing those at the most appropriate time.
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We re-affirm our intention to cooperate closely in order to ensure that the mutual benefits of a UK, SACU and Mozambique EPA are fully realised.
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In addition, we reiterate support for a rules-based multilateral trading system, with the World Trade Organization (WTO) at its core, reaffirm the centrality of development in the WTO’s work and the need to continue to fight WTO non-compliant measures that lead to protectionism and unilateralism. We remain committed to a rules-based, transparent, non-discriminatory, open and inclusive multilateral trading system and are determined to work together to further strengthen the WTO and ensure that it facilitates effective participation of all countries in the multilateral trading system.
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Finally, we recognise that the affirmations set forth in this political understanding are not intended to be legally binding and remain ‘without prejudice’ to the technical discussions currently underway.
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Joint release by USTR Robert Lighthizer and Kenyan Cabinet Secretary for Industry, Trade and Cooperatives, Peter Munya
United States Trade Representative Robert Lighthizer and Kenyan Cabinet Secretary for Industry, Trade and Cooperatives, Peter Munya (represented by Trade Principal Secretary Dr. Chris Kiptoo in Washington, DC) on Tuesday announced the establishment of a U.S.-Kenya Trade and Investment Working Group to explore ways to deepen the trade and investment ties between the two countries.
Earlier in the day, President Trump met with President Uhuru Kenyatta to discuss the strong bilateral relationship between the United States and Kenya. Under the economic dialogue announced by the Presidents, the U.S.-Kenya Trade and Investment Working Group will support comprehensive trade policies and begin to lay the groundwork for a stronger future trade relationship.
U.S. Trade Representative Robert Lighthizer said:
“It has been a pleasure to welcome the Kenyan delegation to the United States as we meet to build a stronger bilateral trade and investment relationship between our two countries. Under the Trade and Investment Working Group, our two countries will work together to explore a mutually beneficial trade and investment framework to guide our relationship moving forward, including by maximizing the remaining years of AGOA and looking ahead to the next steps.”
Cabinet Secretary Peter Munya said:
“Although AGOA preferences scheme has led to increased Kenyan exports since 2000, its utilization has been suboptimal. Through implementation of the recently launched National AGOA strategy and action plan, Kenya seeks greater US support in order to optimize available opportunities in the remaining seven years of AGOA. Under the Trade and Investment Working Group, we look forward to exploring ways to deepen trade and investment ties between Kenya and the United States.”
Background
Trade between the two countries stands at about $1.0 billion a year. Over 70 percent ($407 million in 2017) of Kenya’s exports to the United States entered under AGOA.
Visit the AGOA.info Country Profile for Kenya for further details.
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Third Singapore-Sub-Saharan Africa High-Level Ministerial Exchange Visit
12 Ministers from Djibouti, Ethiopia, Gabon, Ghana, Kenya, Mozambique, Namibia, Nigeria, Rwanda, South Africa, Tanzania, and Uganda called on Prime Minister (PM) Lee Hsien Loong at the Istana on Tuesday.
The Ministers were in Singapore from 27-28 August 2018 to attend the Third Singapore-Sub-Saharan Africa High-Level Ministerial Exchange Visit hosted by Dr Vivian Balakrishnan, Minister for Foreign Affairs.
During the call, PM re-affirmed Singapore’s commitment to strengthening ties with Sub-Saharan Africa. PM and the Ministers also discussed ways to harness the power of technology and innovation to further economic growth, prepare our youths for jobs of the future, and create sustainable and liveable cities and communities.
PM also noted Africa’s positive growth trajectory and commitment to greater economic integration, and encouraged both sides to seize the growing economic opportunities in our respective countries and regions.
The Ministers expressed appreciation for Singapore’s continued efforts in sharing its developmental experience through the Singapore Cooperation Programme (SCP). Since its inception in 1992, over 9,000 officials from across Africa have participated in SCP training courses in areas such as urban management, economic development, and public administration.
Welcome Remarks by Minister for Foreign Affairs Dr Vivian Balakrishnan
A very warm and sunny good morning to all of you. We have arranged for the sunshine and the skylight here as a symbol of the warm relations between Singapore and Africa!
Welcome to the third iteration of the Singapore-Sub-Saharan Africa High-Level Ministerial Exchange Visit. We are very honoured that this time we have Ministers from twelve countries across Africa. I know many of you have made a long journey, some taking up to fifteen to twenty hours.
Singapore-Sub-Saharan Africa Relations
Singapore’s engagement of Africa has been longstanding. In 1964, even before Singapore’s independence, when Singapore was still part of Malaysia, our first Prime Minister, the late Mr Lee Kuan Yew, led a mission to Africa to explain the concept of Malaysia to our African friends. In that trip, he visited 17 African capitals over 35 days – a hectic schedule that so far has not yet been surpassed by anyone here.
In 1965, when we achieved independence, we were gratified that many of our African friends and leaders – many of whom had in fact just gained independence or were in the midst of their own independence struggles, stood in solidarity with Singapore, a tiny island city state.
Opportunities and Challenges in Africa
The world has changed radically since then. We have seen Africa develop at an impressive pace, and demonstrate incredible potential. Within the next two decades, Africa will possess the world’s youngest population. By 2030, Africa’s GDP is expected to reach US$3 trillion, buoyed by a rising middle class with strong consumption and of course, a very young, productive population.
However, the challenges confronting Africa are also more complex today. With over half of Africa’s population set to urbanise by 2050, urbanisation will be both an opportunity as well as a key challenge that many governments would have to face.
In fact, sustainable development is a universal imperative. A key political question confronting all governments would be: how do we ensure economic growth, how do we provide decent work, with good pay, and how do we develop sustainable smart cities, to meet the rising aspirations of our citizens?
Overview of 3rd Exchange Visit
This is why the theme for this year’s Exchange Visit, which is “Singapore and Africa: Partners for Smart Cities”, is so apt.
Building a smart city is not just about providing infrastructure or Internet connectivity. It is about harnessing the new tools that the digital revolution is providing in order to improve living standards for every single citizen, to expand economic opportunities in new industries, and while all this is happening, to also maintain a cohesive and sustainable sense of community amongst all our citizens.
This is why we have structured your visit around three of the United Nation’s 17 Sustainable Development Goals. These three goals are: first, decent work and economic growth; second, industry, innovation, and infrastructure; and third, sustainable cities and communities.
Singapore’s own development story underscores the salience of these three themes. When independence was thrust upon us in 1965, we faced many existential challenges. We are a tiny island, we had no natural resources, unlike almost all of you in Africa, and we had lost our hinterland. We had to build our armed forces, attract investments, create jobs, house our population, educate our young, and to do all these urgently and simultaneously. The future was uncertain, and many were sceptical that Singapore could survive on its own, let alone thrive. But our leaders and people understood the need to look beyond these immediate and urgent problems, but also to prepare for a more distant future and to have a vision. They did so with “sustainable development” in mind, long before sustainable development became popular, or enshrined in the United Nations agenda.
You need to understand that Singapore is an incredibly tiny “barren rock” – which has to create jobs, food, water and opportunities for five and a half million people. They say that necessity is the mother of invention. What you see in Singapore is the result of necessity, but it has been a response based on imagination. Indeed, what you see all around you here is in a sense an act of desperate imagination, in order to overcome our existential challenges.
At 700 square km, Singapore could easily fit into one of the lakes in Africa. That is why land is so precious to us and why therefore we are obsessive about master planning every square foot of our precious, small, tiny island. Our existential shortage of land and water also meant that we could not afford to pollute our surroundings. Mr Lee Kuan Yew insisted that we plant trees, maintain clean streets, and clean up the heavily-polluted Singapore River – which in the decades past was in fact an open sewer. Today, you will spend some time on the river, and you will be amazed at the transformation.
But again, the point was that all this was done because we had to overcome existential challenges. Hence you see well-regulated environments, you see detailed plans and you see how pollutive industries have been phased out, transferred or re-created so that they no longer pollute the environment, the air, and the water that we depend on. So today, Singapore is a liveable and sustainable city. It houses five and a half million residents, and our people enjoy a high quality of life despite a high population density.
Also in this day and age, people are worried about re-employment. It is well worth remembering that a dense, compact city in fact has to ensure an equally high standard of environment, hygiene, healthcare and opportunity for everyone. Another aspect beyond the environment and sustainable development is the fact that practically the most crucial ingredient to success is people, and the quality of their minds and skills. Hence the need to create opportunities for people to thrive in. That is why our pioneer leaders saw and recognised the need to have a skilled, technically proficient workforce. This is why we will bring you to visit the Institute of Technical Education tomorrow. You will see that it is not just a matter of what we provide for the top five percent of academic high performers, but the degree to which we have invested in ensuring that everyone will have opportunities and skills relevant for future jobs. This is even more salient when we now live in and confront the digital revolution, making it all the more important to ensure that no one gets left behind. So what you will see in Singapore is a continuous, dedicated and concerted effort on skills training, and upgrading so that everyone can move ahead.
I think that this is also relevant for Africa as well. Africa has also been working to leapfrog the limitations of the last Industrial Revolution, and take advantage of the new opportunities that the digital revolution provides. We learned about mobile payment systems such as M-Pesa which are already widely used in Africa, and I have also been reading about the increasing use of block chain technology to facilitate more secure business transmissions.
As we seek to build “Smart Cities” in both Singapore and Africa, we believe our people will be the foundation of a vibrant and innovative digital economy, and this will ultimately be critical to ensuring economic competitiveness of our countries, and also to reduce inequality.
Singapore Cooperation Programme and Africa
We believe that no single country, let alone a tiny city-state, has a monopoly on the answers to the challenges we face. We also do not believe that there is a single universal model of development that is applicable to all. All of us have our own unique history, geography, societies, and our own unique set of challenges. We believe that by coming together, on occasions like this, we can exchange ideas and perspectives, synthesise them and come up with something that works in our own unique national circumstances.
For this reason, we have sought to share our own development journey through the Singapore Cooperation Programme (SCP) over many decades. In fact, since 1992, over 120,000 officials from 170 countries, including 9,000 from Africa, have attended our SCP courses. We continue to welcome your officials to participate – our doors remain open.
Singapore is also working with UN-Habitat to organise the International Leaders in Urban Governance Programme (iLUGP). This programme brings together federal- to municipal-level leaders from various African countries, including experts from UN-Habitat, and experienced practitioners from the Singapore Government for a vibrant exchange of ideas on key urban issues including sustainable environment and dynamic urban governance. In fact, Singapore is hosting the second run of the programme this week and this is an opportunity for me to acknowledge and welcome all the iLUGP participants to Singapore.
Deepening Economic Relations
I am happy to note that since the last Exchange Visit in 2016, our economic ties have further deepened. Singapore’s trade with Africa has grown exponentially: it is now US$8 billion in 2017, a 13 percent increase from the year before. But frankly, these trade figures are nowhere near their true potential. To this end, we have put in place several economic frameworks with several of our close African partners, such as Bilateral Investment Treaties and Avoidance of Double Taxation Agreements, in order to open up more business opportunities and to encourage more investments both ways. Singapore is also hosting the 5th Africa-Singapore Business Forum tomorrow, which since 2010, has brought together more than 2,000 business and government leaders from over 30 countries to explore opportunities and partnerships between Singapore and Africa.
Singapore has also been strengthening our air and maritime linkages to Africa. For now, Singapore only has direct flights to three African countries – South Africa, Ethiopia, and Mauritius. I hope that by the time we host the 4th Exchange Visit, we will see more connections to Africa, making it easier for you and your colleagues to visit again. It should not take fifteen to twenty hours in the future!
Conclusion
In the coming days, my Prime Minister, Deputy Prime Minister, Cabinet colleagues and officials are looking forward to meeting all of you. You will also make several site visits, which have been specially selected to showcase Singapore’s use of new and innovative technologies in order to promote sustainable development, in areas such as education, housing, industry, and tourism. I hope that beyond your formal programmes you will also have sufficient free time to walk around and get a feel of the place and to understand Singaporeans and our attitude to life.
I just want to end with one of my favourite anecdotes. Years ago, I was on a boat with the late Mr Lee Kuan Yew. This was before the Marina Barrage was built, and we were sailing into Marina Bay and saw our beautiful landscape. I asked Mr Lee, “When you see our city, this beautiful, magnificent city, what goes through your mind?” I hoped that he would give me some poetic line to summarise what he felt. He just looked at me in his usual direct way and said, “A hardworking and disciplined people built all this”. As we wander through the streets of Singapore, we all have a deep sense of gratitude to the pioneers, but also remember that a hardworking and disciplined people built all this.
Thank you all very much, and welcome to Singapore.
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UNWTO Highlights confirm another record year in 2017
International tourist arrivals grew 7% in 2017, the highest increase since 2010, according to the World Tourism Organization (UNWTO)’s latest collection of Tourism Highlights.
Growth in arrivals was echoed by a strong increase in exports generated by tourism, which reached US$ 1.6 trillion in 2017, making tourism the world’s third-largest export sector.
‘UNWTO Tourism Highlights 2018 Edition’ shows that international tourist arrivals reached a total of 1,323 million in 2017, some 84 million more than the previous year and a new record. The sector has now seen uninterrupted growth in arrivals for eight straight years. 2017’s growth was the highest since 2010, led by the regions of Europe and Africa, which received increases in arrivals of 8% and 9%, respectively.
International tourism receipts increased by 5% in 2017. In addition to the US$ 1.3 trillion in receipts that destinations earned, international tourism generated another US$ 240 billion from international passenger transport taken by non-residents. This raised total tourism exports to US$ 1.6 trillion, or US$ 4 billion a day, which corresponds to 7% of the world’s exports.
These strong 2017 results were driven by sustained travel demand for destinations across all world regions, including a firm recovery by those that have suffered from security challenges in recent years. Strong outbound demand from virtually all source markets, including rebounds from major emerging economies Brazil and the Russian Federation, benefited both advanced and emerging destinations.
The new report also illustrates that China continues to lead global outbound travel, having spent US$ 258 billion on international tourism in 2017. This is almost one-fifth of the world’s total tourism spending in 2017, which stood at US$ 1.3 trillion, some US$ 94 billion more than in 2016.
Among the top markets and destinations in the world, in 2017 Spain rose to become the world’s second most-visited destination in terms of international arrivals, after France. Japan entered the top ten in tourism earnings in tenth place after six straight years of double-digit growth. The Russian Federation re-entered the top ten of world spenders at eighth place.
Available data for early 2018 has since confirmed international tourism’s continued strong growth, with a year-on-year increase of 6% in arrivals between January and April.
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President Cyril Ramaphosa and UK Prime Minister Theresa May’s press statements in Cape Town, South Africa
Prime Minister Theresa May’s press statement alongside the President of South Africa Cyril Ramaphosa
Scroll down for President Ramaphosa’s remarks
Thank you, Mr President, for your welcome and thank you for hosting me and my delegates here today. It’s a pleasure to see you again after your very good visit to London in April.
This is my first time in South Africa, indeed my first visit to Africa as Prime Minister. I’m delighted to be beginning my trip here with you in Cape Town, where of course Nelson Mandela gave his first speech after walking free from prison, standing with you on the balcony of City Hall 28 years ago.
I was honoured today to handover to you and to the people of South Africa the ship’s bell from the SS Mendi, and to commemorate the troops who lost their lives when the ship sank in the English Channel over a century ago, on their way to join the Allied Forces on the Western Front. And we will be forever grateful for their sacrifice in a common cause.
The historical links between us are hugely important. But our partnership today should be based on more.
The UK and South Africa enjoy a broad and forward-looking relationship, and we have committed today to reinvigorating it for the future.
Trade and Investment
We want to build on the strong foundation of our economic relationship to ensure the prosperity and security of our people.
The UK is one of South Africa’s largest trading partners – with our trade worth over £9 billion last year.
And we have agreed that – as the UK prepares to leave the EU – we must think about how to grow that trade in the future.
So today, as we’ve just witnessed, we have signed a Joint Statement with South Africa, Mozambique, Botswana, Namibia, Lesotho and Eswatini to ensure the provisions of the region’s current trade deal with the EU continue after this agreement no longer applies to the United Kingdom.
This important step will provide the strong foundations on which we can build a closer trade and investment partnership in the future that brings even greater benefits for both sides.
The UK has long been the biggest investor in South Africa, and is the second biggest investor across Africa.
And as I said in my speech today, my ambition is for the UK to be the number one G7 investor in Africa by 2022.
As we discussed in London, the UK fully supports your drive, Mr President, to attract more investment to South Africa so as to create jobs and economic growth.
And I want to see British companies play a central role in helping you achieve your ambitions, helping create and sustain high quality jobs for the people of both our countries.
I’m sure this is something we will discuss further at our investment roundtable this afternoon with some of the British firms who are travelling with me this week.
Science and Innovation
The UK’s plan for jobs and growth is set out in our modern industrial strategy. That strategy has science, research and innovation at its heart and these themes are also a central part of our bilateral partnership.
Our world-class academics and researchers are collaborating at the cutting edge of scientific discovery to help solve shared problems, save lives, and shape a better world for our people.
We are partnering with you to train the next generation of South African scientists, and we will make more scholarships available for the brightest and best African students at world-class British universities – to support the continent’s talented future leaders and decision-makers as they develop their skills and careers.
Shared security
I look forward to discussing international issues with the President over lunch – in particular how we can work together to uphold the rules based international order as South Africa prepares to join the UN Security Council next year
So thank you again, Mr President, for the warm welcome you have given me today and for the productive discussions we’ve had.
Media remarks by President Cyril Ramaphosa at the conclusion of the UK Working Visit
Let me begin by extending, once more, a very warm welcome to our esteemed guest and dear friend, Prime Minister May and her delegation on her first working visit to South Africa as Prime Minister.
We were extremely honoured to have been presented with the ship’s bell of the SS Mendi, on which over 600 members of the South African Native Labour Corps perished in 1917.
Please accept our gratitude and appreciation for this gesture, which honours the memory and the sacrifices of all those who perished so far away from their homes and loved ones.
Prime Minister May and I have just concluded discussions that were characterised by a renewed commitment to forge a closer partnership between our two countries.
During our talks, we reviewed a range of issues of a bilateral, continental and global nature.
We have noted with great satisfaction the strong relationship between South Africa and the United Kingdom in wide-ranging areas of cooperation, including energy, science and technology, education, health, arts and culture.
We recognised that these areas of cooperation are currently at different stages of progress.
We have directed our Ministers and officials to ensure full implementation of all existing legal instruments for the mutual benefit of our respective countries and peoples.
In our official talks, we noted the increased economic cooperation and trade relations between our countries.
Both our countries have identified key sectors for investment to boost economic growth and development.
These sectors include manufacturing, agro-processing, infrastructure development, mining, energy and tourism.
We also confirmed our wish that the negotiations on the United Kingdom’s exit from the European Union are concluded in a manner that restores stability to economic and financial markets.
We further welcomed the regular engagements between the trade Ministers of the members of the Southern African Customs Union and the United Kingdom on a future trade agreement.
We are encouraged on the signing today of the Joint Statement on the UK, SACU and Mozambique Economic Partnership Agreement, which significantly advances these engagements.
We also held discussions on various peace and security challenges on the African continent and internationally.
We have noted with concern the continued instability and conflict in some of our sister countries.
We have reaffirmed our commitment to working together in pursuit of peace, stability and development on the continent.
We have saluted the strides being made by the AU Member States to advance continental integration.
On the international front, we have affirmed our common view on the need to promote multilateralism and effective North-South cooperation.
In conclusion, we reaffirmed the importance of our historical relations, and further committed ourselves to working together to enhance close political, economic and social cooperation in keeping with our mutual desire to strengthen the strategic partnership between the two countries.
Prime Minister, let me again thank you and your delegation for visiting us and we hope that you have enjoyed your stay.
I thank you.
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South Africa-UK Business Forum: Speech by Prime Minister Theresa May
PM Theresa May speaks about creating a new partnership between the UK and Africa in our mutual interest
Good morning everyone, and thank you all for joining us today. It’s a pleasure to be here in Cape Town, a city whose recent past lends it a special resonance for many around the world, and which symbolises the transformation experienced by South Africa.
Out in the bay lies Robben Island, where for so long so many were unjustly imprisoned for dreaming of a country in which the colour of your skin made no difference to your rights and opportunities.
Foremost among them was, of course, Nelson Mandela. As the world marked the 100th anniversary of his birth earlier this year, a memorial to the great man was unveiled in Westminster Abbey. There it sits alongside tributes to the kings and queens, poets and scientists who have shaped my nation’s history – a fitting recognition of the lasting impact Mandela made on the world.
Mandela’s walk to freedom – and that of South Africa – was long and arduous. But 28 years ago, barely a mile from here at Cape Town City Hall, he spoke for the first time following his release from decades behind bars.
Four years later, on Grand Parade, the newly inaugurated president of South Africa spoke of his election not as a victory of party, but of people. Of the power of democracy, and the necessity of unity, of equality, of universal rights.
He spoke of the need to transform not just the culture and politics of South Africa, but its economy too. Of his desire to “change South Africa from a country in which the majority lived with little hope, to one in which they can live and work with dignity, with a sense of self-esteem and confidence in the future… building a better life of opportunity, freedom and prosperity.”
It was a bold vision, one shared not just by millions of South Africans but hundreds of millions of people across the world.
People including Kofi Annan. His unlikely journey from Ghanaian suburbs to global leadership took a very different route to that of Mandela. Yet, like your former president, Annan’s impact, influence and values spread well beyond the borders of his beloved homeland. And, like Mandela, the world is a poorer place for his passing – but all the richer for his legacy.
The life stories of these two great men encapsulate the ebbs and flows of history. They demonstrate just how much can be achieved over the course of a lifetime. But also that progress can never be taken for granted – the fight to secure our gains is constant.
Mandela was born in 1918 with the world on the brink of peace from a war that was meant to end all war. But when Annan was born just twenty years later, those dreams of a lasting peace were about to be shattered once again, claiming millions of lives, including many from this continent.
It was in the aftermath of this devastation that the United Nations – the organisation that half a century later Annan would go on to lead – was founded. And despite false starts and mistakes along the way, global institutions and co-operation established in this period have delivered great gains for development.
It was at the same time, that independence movements of a generation of new nations, took on a renewed urgency. People across the world won the right to self-determination, constitutions were written and countries were born.
And the embrace of free markets and free trade, which accelerated further with the end of the Cold War, has acted as the greatest agent of collective human progress the world has ever seen. In those countries that have successfully embraced properly regulated market economies, life expectancy has increased and infant mortality fallen. Absolute poverty has shrunk and disposable income grown. Access to education has widened, and rates of illiteracy plummeted. And innovators have developed technology that transformed lives.
The progress that we have made over the past century is remarkable. The opportunities for the next generation even more so. But to deliver on that promise we need to recognise new challenges.
As war and state-based conflicts have declined, it has been replaced by new threats. In the past five years, terrorists have killed around 20,000 people in Africa – from the 2013 siege in Nairobi’s Westgate shopping centre to last year’s horrific truck bombing in Mogadishu and March’s al-Qaeda attacks in Burkina Faso. Whether in Europe or Africa, non-state actors are threatening our lives and radicalising our people.
And today, malign state activity is on the rise – from cyber attacks on national infrastructure and institutions, to the use of chemical weapons on the streets of the UK and Syria.
While free trade and globalisation have brought huge benefits, they have not been felt by everyone and too many of our citizens fear that they will be left behind. From the great Financial Crisis of 2008, to the advent of artificial intelligence replacing human labour, people are questioning the model of economic development we seek to defend.
And as we face such troubling questions, the capacity for governments old and new to provide the answers is being challenged.
For some, the solution lies in seeking to halt or reverse change. Undermining the institutions of global co-operation, rebuilding the barriers to trade, viewing global competition as a zero sum game.
I disagree.
Because these are not challenges faced by a single nation alone.
The ideology that inspires vicious terrorist attacks does not respect borders. A chemical weapons attack does not only harm its victims but weakens the rules that protect us all from such behaviour. In a more connected world we must all deal with the consequences, for good and ill, of increased mobility – not just of people through migration flows, but also of money, of data, of ideology. And we should recognise that competition and cooperation are not opposites. They can be mutually reinforcing.
So now is the time for the nations of the world to come together. To co-operate. To view international competition as a process through which both sides can benefit. To work as partners, sharing our skills, our experience and our resources to tackle the challenges we face, to contain and direct the forces shaping the world and to deliver prosperity, security and success for all our people.
This week I am visiting three countries – South Africa, Nigeria and Kenya – that I regard as key partners in achieving this goal. With thriving democracies, strong international ties, including through the Commonwealth, and fast-changing economies, they are typical of 21st century Africa. An Africa very different to the stereotypes that dominated previous centuries, and that some people still believe even today.
In 2018, five of the world’s fastest-growing economies are African. The continent’s total GDP could well double between 2015 and 2030. By 2050, a quarter of the world’s population and a quarter of the world’s consumers will live here.
From the Western Cape to the Mediterranean come stories of increasing stability, growth, innovation and hope.
South Africa, for so long blighted by the evils of Apartheid, is free, democratic, and home to one of the continent’s largest economies.
In Cote D’Ivoire, United Nations peacekeepers have gone home and GDP is growing three times faster than in Europe.
And Ethiopia – for a generation of British people often associated only with famine – is fast becoming an industrialised nation, creating a huge number of jobs and establishing itself as a global destination for investment.
Yet, in a situation familiar to nations around the world, progress has not been uniform.
As well as emergent democracies and growing economies, Africa is home to the majority of the world’s fragile states and a quarter of the world’s displaced people.
Extremist groups such as Boko Haram and al-Shabab are killing thousands. Africa’s ocean economy – three times the size of its landmass – is under threat from plastic waste and other pollution.
Most of the world’s poorest people are Africans. And increasing wealth has brought rising inequality, both between and within nations. For example, much of Nigeria is thriving, with many individuals enjoying the fruits of a resurgent economy. Yet 87 million Nigerians live on less than $1.90 a day – making it home to more very poor people than any other nation in the world.
Achieving not just growth but inclusive growth is a challenge faced by governments in the UK, Europe, North America and beyond. And as African economies become more successful it is an issue that is being confronted here too.
Because, in the years ahead, demographic change will present further economic challenges and opportunities for this continent. Before arriving here this morning I visited the ID Mkize Secondary School in Gugulethu. The teenagers I met there were an inspiration, full of ideas and enthusiasm about their own futures and full of pride about the future of their country and their continent.
It’s an outlook they share with so many Africans, 60 per cent of whom are aged under 25. Such a young population represents a phenomenal level of human capital and potential. With their innovation, dynamism and creativity, Africa’s young people could enrich not only this continent but the world economy and society at large.
But to make the most of this promise it needs to be properly harnessed. Between now and 2035, African nations will have to create 18 million new jobs every year just to keep pace with the rapidly growing population. That’s almost 50,000 new jobs every single day, simply to maintain employment at its current level.
That would be huge challenge for any continent, let alone one where economic growth is still fragile and markets are still developing.
And it is indicative of the need to redouble our efforts to ensure the forces shaping our world deliver for all our people. Because the challenges facing Africa are not Africa’s alone. It is in the world’s interest to see that those jobs are created, to tackle the causes and symptoms of extremism and instability, to deal with migration flows and to encourage clean growth.
If we fail to do so, the economic and environmental impacts will swiftly reach every corner of our networked, connected world. And the human impacts – from a loss of faith in free markets and democracy as the best way to secure global growth and human rights, to greater conflict and an increased susceptibility to extremism – will be similarly global.
That is why I want to create a new partnership between the UK and our friends in Africa, one built around our shared prosperity and shared security.
As Prime Minister of a trading nation whose success depends on global markets, I want to see strong African economies that British companies can do business with in a free and fair fashion. Whether through creating new customers for British exporters or opportunities for British investors, our integrated global economy means healthy African economies are good news for British people as well as African people.
That’s why I’m delighted that we will today confirm plans to carry over the European Union’s Economic Partnership Agreement with the Southern African Customs Union and Mozambique once the EU’s deal no longer applies to the UK.
As a Prime Minister who believes both in free markets and in nations and businesses acting in line with well-established rules and principles of conduct, I want to demonstrate to young Africans that their brightest future lies in a free and thriving private sector. One driven and underpinned by transparency, high standards, the rule of law and fairness. Only in such circumstances can innovation truly be rewarded, the potential of individuals unleashed, and societies provided with the opportunities they want, need and deserve.
And as Prime Minister of a global nation, I’m all too aware that our domestic security is reliant on stability worldwide, not just in our immediate neighbourhood. From reducing drivers of illegal migration to denying refuge to terrorists who would strike our shores, in 2018 African and British security are inextricably linked and mutually dependent. That’s one of the reasons why I continue to support calls for a permanent African presence on the UN Security Council.
So of course there is an element of national self-interest in what I’m proposing. I want to do what’s right for my country, just as President Ramaphosa wants what’s best for South Africa.
And I see no distinction between national self-interest and global co-operation. For when the multilateral system works, it does so on behalf of nation states and our people, allowing us to harness the best we each have to offer, preventing the large dominating the small, and reinforcing fairness, transparency and the rule of law.
It is not about extending geopolitical influence or creating lopsided dependent relationships. It is about the UK seeking to work more closely with the more than 50 nations of Africa to deliver our shared security and prosperity, and through this strengthening a global system that is capable of delivering lasting benefits for all.
At the very heart of that partnership should be job creation. Every African leader I speak to identifies jobs as the number one demand of their people and their greatest political priority. Indeed, it is also at the centre of my agenda in the UK.
It is the private sector that is the key to driving the growth that will deliver those jobs – transforming labour markets, opening up opportunity and unleashing entrepreneurial spirit. And the UK has the companies that can invest in and trade with Africa to do just this.
However, for a variety of reasons the private sector has not yet managed to deliver the jobs and investment that many African nations need.
So I want to put our development budget and expertise at the centre of our partnership as part of an ambitious new approach – and use this to support the private sector to take root and grow.
And I can today announce a new ambition: by 2022, I want the UK to be the G7’s number one investor in Africa, with Britain’s private sector companies taking the lead in investing the billions that will see African economies growing by trillions.
We have the tools to do so. The City of London makes the UK the unrivalled global hub for international investment, with more than £8 trillion of assets under management. We are home to cutting-edge science and technology and world-class defence, diplomacy and development. We are a trusted and trustworthy partner: our legal system is second to none, including some of the toughest anti-corruption laws in the world. Where our companies fall short, they are held to account, in the courts if necessary. And our commitment to free and open trade under the rules-based order means our international partners know they will be treated fairly.
So a driving focus of our development programme will be to ensure that governments in Africa have the environment, knowledge, institutions and support to attract sustainable, long-term investments in the future of Africa and Africans.
And to help bring those investments about, I can today announce an additional £4 billion programme of UK investment in African economies that will pave the way for at least another £4 billion of private sector financing.
This includes, for the first time, an ambition from the UK government’s Development Finance Institution, CDC, to invest £3.5 billion in African nations over the next four years. And next year London will host an Africa Investment Summit, helping investors and African governments forge closer ties with one another.
And because markets and economies need people as well as capital, we will also be sharing our expertise – supporting partner countries in developing their business environments and institutions, integrating into global value chains, building ties with investors and tackling barriers to growth.
To do so, we will radically expand the UK government’s presence in Africa, opening new missions and bringing in trade experts, investment specialists, and other policy experts.
We will continue to invest in the human capital that underpins future prosperity, ensuring that young African men and women have access to the quality education, healthcare and skills they need to fulfil their potential.
And we will use our influence and global standing to encourage other developed nations, and the global institutions of which we are a leading member, to take the same approach.
The ability to do this – to bring so much more to the table than just government funding – is what marks out the UK’s development programme as so effective.
Aid is a crucial part of the equation, but it is accompanied by our ability to leverage huge sums of private sector investment from our capital markets. By our world-class professional services. By our unrivalled expertise in financial services and education. By our investment in science and research and the experience of some of the world’s most innovative companies.
And it is all underpinned by our respected legal system, regulatory standards and values: British investors respect ethical practices, comply with local laws, contribute to local economies and build long-term local capability.
So while we cannot compete with the economic might of some foreign governments investing in Africa, what we can offer is long-term investment of the very highest quality and breadth. Something that will deliver more for Africans for longer, and which can only be achieved when the government and private sector work together.
At the same time, investment cannot be attracted nor growth achieved in the absence of security and the stability it brings. So, we also need to target our development assistance to build that stability and tackle the drivers of fragility.
By 2030, 80 per cent of the world’s extreme poor will live in fragile states. Even in countries considered relatively stable and prosperous, pockets of fragility persist.
The UK is already providing support for African governments that are meeting this challenge head-on. Nigerian troops on the frontline against Boko Haram have received specialist training from Britain. Counter-terror operations in Mali are being supported by British Chinook helicopters. British troops in Kenya have trained African Union peacekeepers heading for Somalia, while also working with international partners to reform the Somalian security forces for the long-term.
UK law enforcement works hand in hand with their counterparts across Africa to tackle the destabilising menace of organised crime, from people traffickers to drug smugglers.
But the answer to security challenges is not purely military or operational – it is also political. The new partnership I am proposing means working with African leaders who are driving progress, taking on the political challenges and vested interests to ensure that benefits flow to all their people. And it means building strong institutions, and helping to build trust between those institutions and the people who are governed by them.
Because it is from those institutions – the building blocks of nation states – that all the benefits I have described today ultimately flow. Without the stability and certainty provided by reliable legal systems, enforceable contracts, recognised standards and so on, it is impossible for responsible private sector companies to make long-term investments. It is impossible for economies to create sufficient numbers of skilled, jobs. And growth cannot be fair and inclusive if markets, whether domestic or international, are not governed by transparent and effective rules that are actively enforced.
This is particularly important in the fight against corruption and dirty money, both of which have the potential to push development off course by undermining the rule of law and diverting money out of the economy. That’s why, later this week, the UK will be signing a new agreement to repatriate huge sums of money that have been illegally removed from Kenya – allowing this money to be returned to its rightful owners and invested in the future of their country.
And we must also support governments as they work to ensure development is not stalled by other threats. This includes boosting resilience against climate change and tackling demographic challenges by empowering women and girls with access to safe, voluntary modern family planning, enabling access to education and skills.
In setting out this new partnership with Africa, I am making a broader proposition for how we will use our development assistance across the world, led by my excellent International Development Secretary Penny Mordaunt.
And as we reorient our development programme, I want to be clear: foreign aid works. Since 2015, UK aid in countries around the world has paid for more than 37 million children to be immunised, saving more than 600,000 lives. We’ve helped almost 11.5 million young people get an education, and given more than 40 million people access to clean water or proper sanitation. As I stand here today, people in the Democratic Republic of Congo are being treated with an Ebola vaccine developed with support from the UK.
The UK’s role in international development is something of which I am immensely proud, as I believe the nation as a whole should be. We will remain a global champion for aid spending, humanitarian relief and international development. We will continue our commitment to spend 0.7 per cent of gross national income on official development assistance. And we will not falter in our work to deliver the Sustainable Development Goals.
But I am also unashamed about the need to ensure that our aid programme works for the UK. So today I am committing that our development spending will not only combat extreme poverty, but at the same time tackle global challenges and support our own national interest. This will ensure that our investment in aid benefits us all, and is fully aligned with our wider national security priorities.
In practice, this will mean helping fast-growing frontier markets like Côte d’Ivoire and Senegal to sustain their development progress and create opportunities for investors, including British companies.
It will also mean supporting countries and societies on the front line of instability in all of its forms. So we will invest more in countries like Mali, Chad and Niger that are waging a battle against terrorism in the Sahel – including by opening new embassies in Niger and Chad and having a much larger presence in Mali.
We will do more with countries like Jordan, who are facing the threat of Daesh’s dispersal and the burden of the tragic conflict on their border with Syria, and to reinforce democracies facing state-based threats, as we recently did through our Western Balkans summit.
We will use our aid programme to support a major new crack down on illicit finance and organised crime, deploying expertise in financial centres around the world and increasing our work with law enforcement to return more of the billions of dollars that have been stolen from countries in Africa and elsewhere.
And we will invest more resources into countering illegal migration, modern slavery and trafficking in people.
These new priorities will represent a fundamental strategic shift in the way we use our aid programme, putting development at the heart of our international agenda – not only protecting and supporting the most vulnerable people but bolstering states under threat, shaping a global economy that works for everyone, and building co-operation across the world in support of the rules-based system.
We will use our future spending plans to set out these proposals in more detail.
True partnerships are not about one party doing unto another, but states, governments, businesses and individuals working together in a responsible way to achieve common goals.
Delivering such long-term success will not be quick or easy. But I am committed to Africa, and committed to using every lever of the British government to support the partnerships and ideas that will bring benefits for generations to come.
When President Mandela addressed the Cape Town crowds in 1994, he spoke not only of the immense challenge facing South Africa, but also of his certainty that the people of this country would rise to meet it.
As the world once again faces great uncertainties, I am confident that all our peoples can rise to the moment. That, together, we will tip the balance of change from challenge to opportunity. And that – as friends, partners and equals – we will secure a more prosperous future for all our people.
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Joint Statement from President Donald J. Trump and President Uhuru Kenyatta
The US-Kenya Strategic Partnership: 55 Years of Diplomatic Relations
On 27 August 2018, United States President Donald J. Trump welcomed Kenya President Uhuru Kenyatta to the White House. President Kenyatta’s visit to Washington marked 55 years of diplomatic relations between the US and Kenya, and the start of a new US-Kenya Strategic Partnership. This strategic partnership will address counter-terrorism collaboration, defense and security cooperation, support for greater accountability, transparency, and institution building, and economic cooperation, amongst other topics.
Following the White House visit, President Trump and President Kenyatta issued the following joint statement:
President Donald J. Trump welcomed President Uhuru Kenyatta of Kenya to the White House today. In marking 55 years of diplomatic relations between the United States and Kenya, and in recognition of the growing scope and depth of the engagements between the two countries, the leaders resolved to elevate the relationship to a Strategic Partnership, affirming it as a cornerstone of peace, stability and good governance in Africa and the Indian Ocean region. This United States-Kenya Strategic Partnership will include an annual dialogue to advance mutual prosperity.
President Trump commended the Kenya Defence Forces for their service and sacrifice in combatting al-Shabaab and ISIS in Somalia. President Trump also lauded Kenya for taking a leading role in the East African fight against terrorism and for its sustained dedication to this effort.
The leaders reaffirmed and strengthened their commitment to continued counterterrorism cooperation against violent extremists who seek to take innocent lives and deny fundamental human rights. To further enhance this counterterrorism collaboration, President Trump welcomed Kenya’s decision to join the Global Coalition to Defeat ISIS. President Trump also thanked President Kenyatta for his diplomatic efforts to bring peace to South Sudan and to the region more widely.
The leaders pledged to deepen defense and security cooperation, building on the recent acquisition of military equipment made in the United States and committed to further enhance Kenya Defence Forces capabilities. Further, the United States pledged to strengthen Kenya’s national disaster and crisis response capacity.
President Kenyatta thanked President Trump for the United States’ continued support of the Kenyatta administration’s efforts towards greater accountability, transparency, and institution building. As democracies committed to a rules-based international order, the United States and Kenya share a common vision for free and open societies. This includes global freedom of navigation, particularly in the Indo-Pacific region.
The leaders committed to expand their economic cooperation aimed at making their nations stronger and their citizens more prosperous. In this regard, President Trump thanked President Kenyatta for hosting the United States delegation of the Advisory Council on Doing Business in Africa.
To further enhance the economic partnership, the two leaders agreed to establish a United States-Kenya Trade and Investment Working Group to explore ways to deepen ties between the two countries.
Further, the Presidents are pleased to announce that their governments established direct flights between Nairobi and New York City, a move that will expand the economic and cultural ties between the two great countries.
Recognizing the importance of high-quality infrastructure, President Trump and President Kenyatta welcomed the proposal by United States engineering and construction firm Bechtel Corporation to build a modern superhighway from Nairobi to Mombasa. Both sides agreed to undertake further consultations to conclude the terms of the financing agreement.
This and nearly $900 million in other commercial deals and engagements announced during the visit are expected to create thousands of American and Kenyan jobs, further enhancing the prosperity and economic competitiveness of both nations.
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Ramaphosa, May identify key investment areas
President Cyril Ramaphosa says South Africa and the United Kingdom have identified key sectors for investment aimed at boosting economic growth and development.
The President on Tuesday hosted UK Prime Minister Theresa May at Tuynhuys in Cape Town. May is in the country on a working visit.
Accompanied by Ministers and a delegation of 29 business executives, the Prime Minister’s visit to SA and other African countries is seen as a push to cement ties with countries outside the European Union as Britain prepares to leave Europe’s trade bloc by March next year.
President Ramaphosa said during the talks between the two countries, the parties reviewed a range of issues of a bilateral, continental and global nature.
“In our official talks, we noted the increased economic cooperation and trade relations between our countries. Both our countries have identified key sectors for investment to boost economic growth and development.
“These sectors include manufacturing, agro-processing, infrastructure development, mining, energy and tourism.
“We also confirmed our wish that the negotiations on the United Kingdom’s exit from the European Union are concluded in a manner that restores stability to economic and financial markets,” he said.
The UK was South Africa’s sixth largest global trading partner in 2017, with total trade at R79.5 billion.
The UK also remains the key source of long-haul tourism to South Africa, with nearly 448 000 visitors in 2017.
The President said delegates from both sides of the table noted with great satisfaction the strong relationship between South Africa and the United Kingdom in wide-ranging areas of cooperation, including energy, science and technology, education, health, arts and culture.
“We recognised that these areas of cooperation are currently at different stages of progress.
“We have directed our Ministers and officials to ensure full implementation of all existing legal instruments for the mutual benefit of our respective countries and peoples.”
In her remarks, Prime Minister May said the UK’s aim was to be the number one G7 investor in Africa by the year 2022.
She said the UK was in full support of South Africa’s drive to attract investment of US$100 billion to create jobs and bolster growth.
The Prime Minister said the UK’s drive for job creation and economic growth were centred on a strategy that takes science, research and innovation to heart, and this formed part of her bilateral with President Ramaphosa.
“The UK and South Africa enjoy a broad and forward-looking relationship and we have committed today to reinvigorating it for the future. We want to build on a strong foundation of our economic relationship to enjoy the prosperity and security of our people,” she said in her press statement.
Remarks by His Excellency President Cyril Ramaphosa at the SA-UK Investor Roundtable
After several years of poor growth, limited investment and constrained public finances, the South African economy is starting to show signs of revival.
This is taking place alongside a process of political and economic renewal, which aims to restore the credibility of our public institutions, tackle corruption and wastage and strengthen the capacity of the state.
Earlier this year, we announced an ambitious investment drive that aims to generate at least $100 billion in new investment over the next five years.
This drive will culminate in an Investment Conference on 25-27 October, which will bring together investors both from within South Africa and from other parts of the world.
We are looking forward to welcoming British investors to this Conference, both those who have long been invested in South Africa looking to expand their operations and those who would be investing here for the first time.
We are encouraged by the fact that the UK is one of the largest foreign investors in the South African economy with more than 650 British firms present in the market.
This means that there are many British business leaders who have a good understanding of the South African market and recognise its potential, and who are also able to identify constraints to growth and development.
They would know that the South African government is working alongside its social partners in business, labour and civil society to build a new and inclusive growth path for South Africa.
We are improving the investment environment by, among other things, ensuring policy certainty and consistency, improving the performance of state owned enterprises and consolidating fiscal debt.
Our approach is informed by the understanding that we cannot achieve sustained economic growth or enduring social stability without ensuring more South Africans are able to participate in the productive economy.
That is why broad-based black economic empowerment is a key government policy aimed at addressing the racial and gender imbalances of the past while unlocking the human potential of our people.
We have recognised that these policies may prove difficult for foreign multinational companies to navigate.
Minister Davies and his team at the Department of Trade and Industry stand ready to assist investors where clarity is required and to develop implementation strategies for multinationals through the equity equivalent programme.
We have embarked on a programme of accelerated land reform to ensure that this fundamental resource is equitably shared among all South Africans, that the agricultural sector is transformed, that urban spatial distortions are corrected and that the economic potential of the country’s land is unlocked.
There is a vibrant and healthy debate underway within society on the circumstances under which land reform should take place.
This presents us with an opportunity to strengthen the property rights of all our people, to provide certainty to investors and to our people, and to achieve consensus on a land reform programme that will contribute to economic growth, job creation and the reduction of poverty.
We are determined that whatever measures we take to effect land reform do not undermine the economy.
Government has taken steps to tackle the problem of corruption within both public and private institutions.
These include measures to correct governance failures at certain key state owned enterprises, ensure those involved in graft are held to account and strengthen law enforcement agencies.
Our government is working earnestly to restore South Africa’s sovereign ratings to investment grade status by, among other things, bringing policy certainty in areas such as mining, telecommunications and energy.
In recent months, for example, we have finalised long-outstanding renewable energy independent power producer projects, released the long-awaited Integrated Resource Plan on energy for public comment and held stakeholder engagements towards the finalisation of the Mining Charter.
Through my four investment envoys and the efforts of a dedicated division of the Department of Trade and Industry, Invest SA, we are scaling up our investment promotion, facilitation and aftercare services.
We see foreign direct investment as a critical driver of economic growth.
It contributes to the expansion of a country’s productive capacity through the transfer of technology, knowledge, job opportunities, human capital and production processes.
That is why the government is aiming to generate at least half of all new investment over the next five years from outside our borders.
We are committed to enhancing investor confidence and positioning South Africa as one of the leading emerging market investment destinations.
We are committed to improving the investment climate and the ease of doing business in South Africa.
I am confident that through engagements of this nature – by working together in pursuit of common goals – we will succeed in building business partnerships that contribute to inclusive growth and shared prosperity for all.
I thank you.
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President Kenyatta witnesses signing of investment deals worth $238 million in Washington DC
President Uhuru Kenyatta yesterday witnessed the signing of two agreements that will see two US companies invest $238 million worth of projects in Kenya as he urged the US government to facilitate the operations of US businesses Africa.
Taking cue from President Kenyatta’s call, the US Overseas Private Investment Corporation (OPIC) and Kipeto Wind Energy Company signed documents to close a $232 million deal in financing for the construction and operation of a 100-megawatt grid-connected wind power plant south of Nairobi.
The plant will provide a more reliable source of energy to the national grid and support the US Power Africa Initiative to double the number of people in Sub-Saharan Africa with access to electric power.
The second agreement signed in the presence of President Kenyatta when he met business executives of leading US companies meeting under the umbrella of the Business Council for International Understanding (BCIU), was a $5 million letter of commitment in financing to expand the distribution network of Twiga Foods and improve food security and agricultural wages in Kenya.
The agreement was signed between Twiga Foods and OPIC, a US government agency. Dr. Kenneth Namunje and Mr. Grant Brooke signed for Kipeto Energy and Twiga Foods respectively while Hon. Ray Washburne, the President and Chief Executive of OPIC signed on behalf of his organization.
Addressing the US business executives, President Kenyatta assured them of his administration’s commitment to remove any hurdle that could impede their operations in Kenya.
“Kenya is open for business and all we want to do is package our partnership in a way that it is mutually beneficial to you as a private sector and the people of Kenya,” President Kenyatta said.
President Kenyatta invited more US investors to set shop in Kenya to benefit from the opportunities created by the Big Four development blueprint projects. He said the Big Four agenda projects – pegged on boosting manufacturing to create jobs, food security, provision of affordable housing and universal healthcare coverage – present major opportunities for local and foreign investors.
The BCIU is a US-based organization comprising of 200 member companies. It helps its members to engage internationally by facilitating mutually beneficial relationships between business and government leaders worldwide.
In manufacturing, President Kenyatta said Kenya looks to increase the sector’s contribution from 8.4 to 15 per cent by 2022.
“This presents major opportunities for local and foreign investors in areas such as agro-processing, textiles and leather, the maritime sector, construction, iron and steel, and oil and gas,” the Head of State informed the meeting that was attended by US Commerce Secretary Wilbur Ross and over 20 top executives of leading American companies.
On food security, the President welcomed the proposed investment of $5 million by Twiga foods in the agricultural sector, saying more such investments were needed.
On provision of Universal Healthcare Coverage (UHC), President Kenyatta said his government looks to roll out innovative health insurance options, set up local pharmaceutical companies, upgrade and manage healthcare facilities and set up specialized treatment centres.
“Given our long and well-established relationship, we can do more together and I invite the US companies to walk with us on the ‘Big Four’ journey,” President Kenyatta informed the US business community.
He added: “With so many opportunities open to us and given our long and well-established relationship, the time is ripe to make a change in our business engagement.”
The Monday meeting was the third the President was having with members of the BCIU, the last one having been held in 2015. President Kenyatta said his administration has continued to improve the business environment with a view of providing a facilitative environment for private sector growth.
“Between 2014 and 2018, Kenya improved its ranking on World Bank Ease of Doing Business Index (DBI) by 56 positions from 136 to 80 and remains on target to get to the top 50 by 2020,” the President said.
The Head of State pointed out that the economy remained buoyant and resilient, registering a 5.5 per cent average growth rate over the last 5 years in spite of a historic presidential election and weathering a major drought in 2017.
US Commerce Secretary Ross and BCIU CEO Peter Tichansky, commended President Kenyatta for creating a conducive environment for the private sector to thrive in Kenya. The US business executives expressed their appetite to increase investments in Kenya following the assurances by President Kenyatta.
Cabinet Secretaries Monica Juma (Foreign Affairs) and Henry Rotich (National Treasury) were among the Kenyan delegation at the business meeting.
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USTDA expands partnership with Kenya, creating opportunities for U.S. businesses
The United States Trade and Development Agency (USTDA)’s Director of Congressional and Public Affairs, Thomas R. Hardy, joined President Uhuru Kenyatta of the Republic of Kenya at a roundtable discussion with U.S. businesses hosted by the Business Council for International Understanding on 27 August 2018 in Washington, D.C.
At the event, Mr. Hardy discussed USTDA’s commitment to support an Emergency Communications Systems Reverse Trade Mission for Kenyan officials responsible for the dispatch of emergency services throughout Kenya.
The upcoming visit is the direct result of a request by the Government of Kenya for support increasing the effectiveness and timeliness of emergency support services.
The visit will connect leading U.S. manufacturing and technology providers to Kenyan officials that are responsible for enhancing Kenya’s communication capabilities in fire, health, or weather-related emergencies and improving access to emergency responders for all Kenyan citizens.
President Kenyatta’s visit to the United States follows the Presidential Advisory Council on Doing Business in Africa’s (PAC-DBIA) fact-finding mission to Kenya in June of this year, during which USTDA announced awards for one grant, two study tours to the United States, and the opening of a USTDA office in Nairobi. pdf USTDA support announced (94 KB) during the PAC-DBIA fact-finding mission included:
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A grant for the Kenya Tea Development Agency Power Company Limited (KTDA Power) to assess its power requirements and the viability of solar power and storage systems at its tea processing facilities across Kenya. This project will provide KTDA Power with approximately 30 megawatts of reliable energy, while also reducing operating costs at the tea factories. The project builds on previous USTDA support for KTDA Power, which led to the construction of three hydropower plants and another seven that are under development for KTDA Power’s tea factories.
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A procurement orientation visit for Kenyan delegates under USTDA’s Global Procurement Initiative (GPI), developed in response to the PAC-DBIA’s April 2018 recommendations report. The visit will feature an introduction to challenges experienced throughout the three stages of procurement, including: the professionalization of the procurement workforce, anti-corruption issues, and the establishment of e-procurement systems.
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A cybersecurity reverse trade mission for delegates from Kenya and Rwanda. The East Africa Cybersecurity Solutions for Financial Institutions Reverse Trade Mission will bring public and private sector representatives from Kenya and Rwanda to the United States to meet with U.S. companies and see cutting-edge U.S. technologies, services, and best practices in cybersecurity solutions for financial institutions. Delegates will also learn about policies, regulations, and financing mechanisms that can support the implementation of additional cybersecurity controls in East Africa.
“These projects demonstrate USTDA’s commitment to investing in infrastructure that will drive the growth of the Kenyan economy,” said Mr. Hardy. “We look forward to supporting this growth while creating opportunities for U.S. businesses to export cutting-edge technologies and services throughout the Kenyan economy.”
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Theresa May to lead ambitious three-nation trip to Africa
Theresa May to visit South Africa, Nigeria and Kenya for the first time with senior ministers and a wide-ranging trade delegation.
Theresa May will lead an ambitious trip to Africa this week on her first visit to the continent as Prime Minister.
She’ll be the first British Prime Minister to visit Sub-Saharan Africa since 2013, and the first to go to Kenya for over 30 years.
This visit comes at a time of enormous change across Africa with a unique opportunity, as the UK moves towards Brexit, for a truly Global Britain to invest in and work alongside African nations, with mutual benefits.
The Prime Minister’s central message will be focused on a renewed partnership between the UK and Africa, which will seek to maximise shared opportunities and tackle common challenges in a continent that is growing at a rapid pace – from the Sahara to South Africa.
She will use a speech on the opening day of the visit in Cape Town to set out how we can build this partnership side by side with Africa, particularly by bringing the transformative power of private sector trade and investment from the UK to a continent that is home to 16% of the world’s people but just 3% of FDI and 3% of global goods trade.
As Africa seeks to meet the needs of its growing population the visit will also emphasise that it is in the world’s interest to help secure African stability, jobs and growth because conflict, poor work prospects and economic instability will continue to encourage migration and dangerous journeys to Europe.
Because nations cannot prosper without security, the Prime Minister will also use the visit to announce further support to tackle instability across the region.
Prime Minister Theresa May said:
Africa stands right on the cusp of playing a transformative role in the global economy, and as longstanding partners this trip is a unique opportunity at a unique time for the UK to set out our ambition to work even closer together.
A more prosperous, growing and trading Africa is in all of our interests and its incredible potential will only be realised through a concerted partnership between governments, global institutions and business.
As we prepare to leave the European Union, now is the time for the UK to deepen and strengthen its global partnerships. This week I am looking forward to discussing how we can do that alongside Africa to help deliver important investment and jobs as well as continue to work together to maintain stability and security.
I am proud to be leading this ambitious trip to Africa and to become the first UK Prime Minister in over 30 years to visit Kenya.
The Prime Minister will be joined by a business delegation made up of 29 representatives from UK business – half of which are SMEs – from across all regions of the UK and its devolved administrations. The delegation shows the breadth and depth of British expertise in technology, infrastructure, and financial and professional services.
Delegates include:
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the London Stock Exchange
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Cardiff-based cooling technology firm Sure Chill
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solar tech provider Northumbria Energy from North Tyneside
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London-based start-up Farm.ink who have created a knowledge-sharing mobile platform for farmers
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Northern Irish agri-tech leader Devenish Nutrition
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the world-renowned Scotch Whisky Association and Midlands manufacturing giant JCB
Also travelling are Trade Minister George Hollingbery and Minister for Africa Harriett Baldwin. Secretary of State for Wales Alun Cairns will join the visit in South Africa to support the Welsh companies in the business delegation, while the Lord Mayor of London Charles Bowman is also accompanying the Prime Minister.
The Prime Minister will begin her trip in Cape Town in South Africa where she’ll see President Cyril Ramaphosa and meet young people and business leaders.
While in South Africa the Prime Minister will present the Mendi bell to President Ramaphosa in a ceremony at Cape Town’s presidential office the Tuynhuys – over a century after it was lost in a shipwreck.
Over 600 troops, the majority black South Africans, died when the Mendi tragically sank in the English Channel in 1917, on their way to join the Allied forces on the Western Front. It was the worst maritime disaster in South Africa’s history, and the Mendi has become a symbol of the country’s First World War remembrance.
In Nigeria the Prime Minister will meet President Muhammadu Buhari in Abuja and spend time in Lagos meeting victims of modern slavery – a cause Theresa May has worked passionately to tackle.
In Nairobi she will meet President Uhuru Kenyatta and see British soldiers training troops from Kenya and other African countries in the techniques needed to identify and destroy improvised explosive devices before they go to fight Al-Shabaab in Somalia.
She will also commit to helping support the next generation of energetic, ambitious young Kenyans as they seek to build a more prosperous country in the years ahead.